BNA INSIGHTS: Is Civil Loss Causation Applicable to Federal Criminal Sentencings?

The Supreme Court’s 2005 decision in Dura Pharmaceuticals, Inc. v. Broudo is the seminal authority on the appropriate measure of loss caused by a defendant’s fraudulent conduct in a civil securities fraud action…

Citing Morrison Ruling, Court Narrows Class Suit over Alleged Fraud by France’s Vivendi SA

In a long-awaited ruling, the U.S. District Court for the Southern District of New York Feb. 22 significantly narrowed class securities fraud charges against Vivendi Universal S.A. and two former executives who allegedly made material misstatements about the French media conglomerate’s finances, causing its stock to trade at artificially high levels between 2000 and 2002…

Sarbanes-Oxley Whistleblower Protections Extend to Reporting of Client’s Violations, Court Rules

The Sarbanes-Oxley Act’s whistleblower protections are applicable to the reporting by a former J.P. Morgan Chase & Co. (JPM) vice president of possible securities law violations by a long time client, the…

Hedge Funds with Swaps May Not Sue in U.S. over Porsche’s Handling of VW Shares, Court Rules

The hedge funds that held swap agreements tied to German corporation Volkswagen’s shares cannot pursue U.S. securities fraud claims that Porsche Automobil Holding SE, also a German corporation, and two of its executives manipulated the price of VW’s shares, the U.S. District Court for the…

BNA INSIGHTS: Extraterritorial Reach of U.S. Regulators Unclear after Morrison Case Ruling, Dodd-Frank Law

A large international bank based in Australia and listed on the Australian Stock Exchange acquires a majority interest in an American…

Supreme Court Affirms Dismissal of ‘Foreign-Cubed’ Case, Limiting Reach of U.S. Securities Laws

Ruling in a so-called “foreign-cubed” case involving the application of the U.S. securities laws to foreign securities transactions, the U.S. Supreme Court June 24 affirmed…

BNA INSIGHTS: Omission Based Securities Fraud Claims: Determining a Duty to Disclose Before Reaching the Question of Materiality

Plaintiffs in securities cases commonly allege not only affirmative misrepresentations, but also omissions. Such omission-based claims can be particularly troublesome because of…

U.S. Buyers of European Stock Blocked from Suing in U.S. Courts

As the U.S. Supreme Court considers the extraterritorial reach of the U.S. securities laws, the U.S. District Court for the Southern District of New York ruled March 26 that a…

Supreme Court Hears Debate in ‘Foreign-Cubed’ Securities Case

The U.S. Supreme Court heard oral argument March 29 in a case that raises critical questions about the reach of the U.S. securities laws with respect to foreign securities transactions.

SEC Violated Scope of Protective Orders by Providing Private Financial Data to IRS

The Securities and Exchange Commission violated the scope of two protective orders—intended to safeguard personal financial information provided by an alleged tax evader who also was the victim of a securities scheme—by providing the data to federal prosecutors who in turn passed the information to the Internal Revenue Service, the U.S. Court of Appeals for the Tenth Circuit concluded March 23.

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