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Mealey's Securities

  • March 06, 2026

    2nd Circuit Mostly Affirms Ruling Against Individual For Investment Fraud

    NEW YORK — A Second Circuit U.S. Court of Appeals panel affirmed in part a lower court’s grant of summary judgment in favor of the Securities and Exchange Commission in an enforcement action against an individual it alleged misled fellow members of his religion to solicit investments in violation of federal securities laws but ruled that the lower court had improperly relied on SEC’s interpretation when it found that the individual violated the Investment Advisers Act of 1940.

  • March 06, 2026

    Delaware High Court: Changes To Stockholder Transactions Law Are Constitutional

    NEW CASTLE, Del. — In answering certified questions in a stockholder derivative suit, the Delaware Supreme Court found that amendments to the state’s law about the standard of review for transactions involving a controlling stockholder don’t violate the Delaware Constitution.

  • March 06, 2026

    4th Circuit Finds Stock-Drop Suit Against Advance Auto Parts Lacks Scienter

    RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of investors’ putative class action alleging that Advance Auto Parts and certain of its former executives manipulated the company’s accounting, agreeing with the lower court that the complaint lacked scienter.

  • March 04, 2026

    10th Circuit: Investors Didn’t Prove DISH’s 5G Network Statements Were False

    DENVER — A 10th Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of investors’ putative class action against Dish Network Corp. (DISH) and certain of its executives for allegedly false and misleading statements made regarding the company’s 5G network development and deployment, finding that the investors’ allegations failed to support a conclusion that the subject statements were false when made or that the defendants acted with scienter.

  • March 04, 2026

    2nd Circuit Affirms Dismissal Of Suit Over Norfolk Southern’s Alleged Misstatements

    NEW YORK — A Second Circuit U.S. Court of Appeals panel affirmed the dismissal of investors’ securities fraud class action against Norfolk Southern Corp., certain executives and underwriters relating to the train derailment in East Palestine, Ohio, holding that certain statements were inactionable puffery and the others were not false.

  • March 04, 2026

    Judge: Investors Repackaged Previously Denied Arguments Over Offering Documents

    SAN FRANCISCO — A federal judge in California granted a biopharmaceutical company’s motion to dismiss investors’ amended class action against it for allegedly failing to disclose the findings from clinical trials of its lead product candidate that, once revealed, caused the company’s stock to drop, finding that the investors had repackaged arguments that had previously been rejected.

  • March 03, 2026

    Judge Gives Final Approval To $7.75M Settlement In Stock-Drop Class Action

    NEW YORK — A federal judge in New York granted final approval to a $7.75 million settlement in a class action brought by investors against a biopharmaceutical company and certain of its current and former executives that alleged that the defendants made false and misleading statements that caused the company’s stock price to drop and investors to lose money.

  • March 03, 2026

    9th Circuit: Investors Did Not Plausibly Allege Loss Causation Against Financial Institution

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals affirmed a lower court’s holding that investors did not plausibly allege loss causation against a financial institution and certain of its executives, finding that the investors did not plausibly establish a connection between disclosures that it alleged revealed risks and subsequent drops in stock price.

  • March 02, 2026

    7th Circuit Denies Trading Adviser’s Request To Rehear CEA Violation Cases

    CHICAGO — A Seventh Circuit U.S. Court of Appeals panel denied a commodity trading adviser’s petition for rehearing en banc and panel rehearing that asked the panel to reconsider its decision to affirm the dismissal of complaints brought by the adviser and a trust against financial institutions alleging that they violated the Commodity Exchange Act by manipulating the volatility index.

  • February 27, 2026

    SEC: High Court Should Not Hear Case Over Authority To Order Receivership

    WASHINGTON, D.C. — The Securities and Exchange Commission urged the U.S. Supreme Court not to grant a petition for certiorari filed by an individual subject to a civil action by the SEC asking the court to determine whether federal securities laws allow the SEC and a district court to use the commission’s general equitable authority to order a receivership, arguing that the district court didn’t abuse its discretion in establishing the receivership in the case and that the scope of the receivership doesn’t violate the Sixth Amendment.

  • February 27, 2026

    9th Circuit Finds Investors Failed To Plead Loss Causation Against Meta

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of investors’ putative class action against Meta Platforms Inc. and certain of its executives over alleged misstatements regarding the financial impact of changes to Apple Inc.’s privacy policy on Meta’s advertisement targeting and measurement capabilities, finding the investors failed to plead loss causation or misrepresentation.

  • February 27, 2026

    Panel: Investors Failed To Show Sterilization Facility Owner Committed Fraud

    CINCINNATI — In an unpublished opinion, a Sixth Circuit U.S. Court of Appeals panel ruled that a group of investors failed to show that Sotera Health Co., which owns a medical equipment sterilization facility, committed securities fraud related to statements it made about an initial public offering (IPO) and litigation it faced involving a subsidiary of the company that was sued over personal injury claims connected to exposure to ethylene oxide (EtO).  The panel said that “few of Sotera’s statements are specific or verifiable enough to be even potentially materially false.”

  • February 26, 2026

    Final Judgment Enjoins, Bars Former Brazilian Exec In SEC Fraud Action

    NEW YORK — More than a year after the parties said they had reached an agreement in principle, a New York federal judge entered final judgment in the U.S. Securities and Exchange Commission’s enforcement action against a former senior executive of a Brazilian reinsurance company, imposing a permanent injunction, a public company officer-and-director bar and a $500,000 penalty.

  • February 26, 2026

    Robinhood Markets Asks High Court To Address Dispute Over IPO Disclosures

    WASHINGTON, D.C. — Financial services company Robinhood Markets Inc., certain of its senior executives and directors and underwriters of the company’s initial public offering (IPO) filed a petition of writ of certiorari with the U.S. Supreme Court, asking the court to hear a securities action brought by investors against them, arguing that a Ninth Circuit U.S. Court of Appeals panel’s interpretation of the “misleading” prong of Section 11 of the Securities Act of 1933 was contrary to binding precedent and the statutory text.

  • February 24, 2026

    1st Circuit Affirms Disgorgement Award In SEC Enforcement Action

    BOSTON — The First Circuit U.S. Court of Appeals found that a lower court did not abuse its discretion in ordering disgorgement and civil penalties against two employees of a securities firm and three of its investors in an enforcement action brought by the Securities and Exchange Commission for their involvement in a long-running pump-and-dump scheme, specifically finding that the SEC had provided adequate evidence to calculate the proceeds each co-conspirator received from the sales of problematic stocks.

  • February 24, 2026

    Individual: High Court Should Find SEC Can’t Seek Disgorgement As Deterrent

    WASHINGTON, D.C. — In a brief filed Feb. 23, an individual urges the U.S. Supreme Court to find that the Securities and Exchange Commission may not seek disgorgement under Sections 21(d)(5) and (d)(7) of the Securities Exchange Act of 1934 without showing that investors suffered pecuniary harm and that the SEC cannot instead use disgorgement as a penalty or deterrent.

  • February 20, 2026

    Investor: Oracle’s Misstatements About Data Center Development Caused Stock Drop

    WILMINGTON, Del. — An investor filed a putative class action against Oracle Corp. and several of its executives, alleging that they violated federal securities laws by misleading investors about the company’s contracts to develop data center capabilities and alleged resulting revenue growth.

  • February 17, 2026

    11th Circuit Denies Petition To Rehear Investors’ Case Over Fraud Cover-Up Losses

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel denied a petition for rehearing en banc filed by a utility holding company, its main subsidiary and executives asking the panel to reconsider its reversal of a lower court’s dismissal of investors’ class action against them for alleged misstatements made about the company’s involvement in an election interference scheme.

  • February 06, 2026

    Judge Denies Motion To Reconsider Ruling In Cryptocurrency Sale Dispute

    ORLANDO, Fla. — A federal judge in Florida denied a motion filed by the co-founder of a cryptocurrency and the company that managed the cryptocurrency asking the judge to reconsider its grant of partial summary judgment to the investors who sued them for selling the cryptocurrency without filing a registration statement, finding that the defendants didn’t “present any ‘intervening change in law’ or ‘new evidence’ to suggest that the Court should reconsider its previous Order.”

  • February 06, 2026

    9th Circuit: Shareholders Sufficiently Alleged Falsity About Technology, Inventory

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel affirmed in part and reversed in part a lower court’s order dismissing shareholders’ putative class action alleging that Funko Inc. and certain of its executives violated federal securities laws by issuing misleading statements about the company’s inventory, storage and technology, finding that the plaintiffs pleaded with sufficient particularity factual allegations regarding the falsity of statements concerning existing technology and inventory management.

  • February 06, 2026

    Split 2nd Circuit Finds Company Breached Contract By Not Honoring Warrants

    NEW YORK — A Second Circuit U.S. Court of Appeals panel affirmed a lower court’s grant of summary judgment in favor of two warrant holders against a global visual content marketplace, finding that the company breached their contracts by not allowing the warrant holders to exercise the warrants to purchase stock after the warrant agreement conditions had been met.

  • February 05, 2026

    Delaware High Court Reverses Fee Award In Tesla Excess Compensation Action

    WILMINGTON, Del. — The Delaware Supreme Court reversed the attorney fee award in a derivative litigation settlement resolving excess compensation claims against Tesla Inc.’s directors, finding that the Delaware Court of Chancery erred by including the intrinsic value of stock options returned to Tesla in its financial benefit analysis.

  • February 05, 2026

    3rd Circuit: Rule Silent On Enforcement Of Tendered Share Transfer Restrictions

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of shareholders’ suit alleging a company violated the Securities and Exchange Commission’s Best Price Rule by not purchasing their tendered shares, finding the rule is silent about whether a tender offeror may enforce restrictions on the transfer of tendered shares.

  • February 03, 2026

    5th Circuit: District Court Wrong To Dismiss Stock Drop Suit With Prejudice

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel held that a lower court was wrong to dismiss investors’ putative class action against a telecommunications corporation and certain of its executives for misleading investors about its failure to remedy old lead-sheathed telephone cables, finding that the lower court did not provide an analysis to support dismissing the complaint with prejudice.

  • February 03, 2026

    Trading Adviser Seeks Reconsideration Of Dismissal Of CEA Violation Cases

    CHICAGO — A commodity trading adviser filed a petition for rehearing en banc and panel rehearing with the Seventh Circuit U.S. Court of Appeals, asking the court to reconsider a panel’s decision to affirm the dismissal of complaints brought by the adviser and a trust against financial institutions alleging they violated the Commodity Exchange Act by manipulating the volatility index, arguing that the panel’s decision conflicts with circuit precedent.