Tag Archives: Securities

Facebook IPO Lawsuits To Be Heard By Judge Sweet

Today, the MDL Panel ordered that 41 cases filed in connection with Facebook’s May 18, 2012 IPO be centralized, transferred to the SDNY and assigned to Judge Sweet. The 41 cases had been filed in the SDNY, the Northern District of California and the Middle District of Florida.… Continue Reading

Class Action Plaintiffs Contend Bank of America-Merrill Proxy Claims Reflect Direct Shareholder Injury

In the class action alleging that Bank of America’s proxy statement for the Merrill merger failed to disclose massive expected losses at Merrill, the plaintiffs filed on Friday a 102-page omnibus opposition to the series of summary judgment motions we covered previously. In response to the principal defense argument — that any failure to disclose … Continue Reading

Negligent Misrepresentation Claims to Proceed Against Rating Agencies, Morgan Stanley

This Thursday, Judge Scheindlin denied reconsideration of Moody’s, S&P’s and Morgan Stanley’s motions  to dismiss claims brought by investors to recover losses stemming from the October, 2007 collapses of Rhinebridge and Cheyne, structured investment vehicles. (Our previous post on her denial of the motions to dismiss is here.) Defendants‘ motions for reconsideration were based on new authority regarding negligent misrepresentation … Continue Reading

Defendants Move to Dismiss “Magnetar” Suit Relating to CDO Allegedly Designed to Fail

As we blogged about before, an Italian bank that provided $180 million in credit protection on a CDO called “Pyxis” sued U.S. hedge fund Magnetar and others for allegedly conspiring to secretly place risky assets into Pyxis so that Magnetar could bet against the CDO and profit from its collapse. This evening, two [UPDATE: three] … Continue Reading

Status Update: Multiple Class Action Lawsuits Following IPO

At least three class action lawsuits have now been filed stemming from Facebook’s May 17 IPO, and there are surely more to follow. The first to be filed (Goldberg v. Nasdaq) names Nasdaq – not Facebook – as a defendant and alleges that the exchange “badly mishandled” the IPO, damaging class-members “in a variety of … Continue Reading