Type of action: FINRA securities action/unsuitable investment/churning Injuries alleged: Economic losses of approximately $400,000 Name of case: Haley v. WestPark Capital Court: Financial Industry Regulatory Authority (FINRA) Case no.: 20-00320 Tried before: FINRA arbitration panel Name of judge or mediator: ...

Tagged with: Arbitration Securities Verdict

Where shareholders alleged they purchased shares of a technology company at inflated prices because corporate officers made materially misleading statements about the company’s financial health, their suit was dismissed because there was insufficient evidence of scienter. Background Plaintiffs appeal the ...

Tagged with: 4th U.S. Circuit Court of Appeals Judge James A. Wynn Jr. Securities

Where investors alleged JUUL and Altria engaged in a scheme to allow the continued marketing of e-cigarettes to minors while publicly denying JUUL’s intention of targeting youths in an effort to avoid further litigation or regulation that could curb its ...

Tagged with: Judge David J. Novak Securities U.S. District Court - Eastern District

Where a company that provided mezzanine financing made poor investment choices in 2014 and 2015, plaintiffs failed to show its contemporaneous statements were made with the required scienter and their securities fraud class action was dismissed. Background LifeWise Family Financial ...

Tagged with: 4th U.S. Circuit Court of Appeals Judge G. Steven Agee Securities

Allegations that a doorskin manufacturer made representations about its pricing strategy, without disclosing its anticompetitive conduct that led to those continuing revenues, were sufficient to state a claim for violations of the securities laws. Background In this putative class action, ...

Tagged with: Judge John A. Gibney Jr. Securities U.S. District Court - Eastern District

Although a prior order in a securities class action resolved issues of first impression, they were not “controlling” and thus not certified for immediate interlocutory appeal. Background By order dated Feb. 25, 2020, the court denied the motion to certify ...

Tagged with: Judge Anthony J. Trenga Securities U.S. District Court - Eastern District

Where the complaint plausibly alleged plaintiffs only learned about possibly improper conduct involving a merger within a year of filing suit, the class action was potentially timely; and where plaintiffs plausibly alleged the omission of material facts from proxy documents, ...

Tagged with: 4th U.S. Circuit Court of Appeals Judge Albert Diaz Securities

A trustee’s unjustified reliance on a stock valuation and its failure to conduct sufficient due diligence resulted in an Employee Stock Ownership Plan paying well over fair market value to purchase shares in the company that were owned by the ...

Tagged with: Judge Norman K. Moon Securities U.S. District Court - Western District

Where plaintiffs intended to enter into an annuity contract that would provide benefits to both spouses but instead, relying on the investment advice of a registered securities representative for the defendant, entered into a single annuity contract that did not ...

Tagged with: Judge Elizabeth K. Dillon Securities U.S. District Court - Western District

Where a proxy statement given to shareholders to secure approval for a merger specifically warned that the financial information provided in the statement might be outdated and would not be updated, the shareholders could not claim that the failure to ...

Tagged with: 4th U.S. Circuit Court of Appeals Judge A. Marvin Quattlebaum Jr. Securities