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Securities Archives

What Does It Mean to ‘Opt Out’ of Class Action Litigation?

A class action lawsuit is readily identifiable as litigation where the common interests of a large number of plaintiffs are implicated and where it would both inconvenient and prohibitively costly for a single individual or entity to commence a claim for damages. Product liability cases are frequently pointed to as typical class action examples, as are securities cases alleging wrongdoing that has harmed many investors.

Embraer Acknowledges and Settles Bribery Claims

A Brazilian aerospace company, Embraer SA ("Embraer" or the "Company"), has agreed to pay $205 million to settle bribery claims involving the governments of the Dominican Republic, Saudi Arabia and Mozambique that were brought forth by U.S. authorities. The lawsuit also alleged that the Company made illegal payments to the Indian military. The U.S. Department of Justice will receive $107 million, $98 million to the U.S. Securities and Exchange Commission ("SEC"), and $20 million will go to the Brazilian authorities, all as disgorgement of Embraer's illegal profits. The Company also agreed to improve its compliance function, as well as allowing itself to be monitored for a three-year period as part of a deferred prosecution agreement. Although Embraer received credit for its cooperation with the government, the Company could have paid even less if had it adequately punished an executive who allegedly knew and took part in the Company's illegal actions.

Class Certification Denied to Investors of UBS in Puerto Rico

A group of investors were denied class certification after claiming that UBS AGs Puerto Rican affiliate ("UBS Puerto Rico" or the "Company") downplayed the risks involved in investing and operated in a manner that twisted the market to allow the Company more control over its closed-end mutual funds. U.S. District Judge Carmen Consuelo Cerezo concurred with U.S. Magistrate Judge Bruce J. McGiverin, who recommended the denial of class certification saying that each individual investor needed to show that they relied on the alleged misstatements.

Wells Fargo Faces First Securities Suit Connected to Recent Scandal

Wells Fargo & Co. ("Wells Fargo" or the "Company") came under fire for a scandal involving its employees creating accounts for customers without their knowledge to meet standards that were being set by the Company. As a response to the scandal, Wells Fargo has paid a settlement of $185 million in restitution to the customers affected by the fake accounts and unfair charges. It also fired 5,300 employees over the last few years in an attempt to end any unethical behavior.

Report cites material uptick in securities class action litigation

Germane data relevant to class action litigation activity is always notable and of material interest in Connecticut and across the United States, given that it sheds light on alleged corporate malfeasance and the level of plaintiff filings in state and federal courts.

Blackberry Z10 Dismissal Affirmed in Securities Lawsuit

Blackberry Ltd. ("Blackberry" or the "Company") successfully argued for the dismissal of a lawsuit brought by investors, that claimed the Company and its executives had hidden information about the Z10 smartphone. The Z10's release was not successful, and investors claimed that the Company knew that the phone's launch would fail. After the dismissal, the Plaintiffs appealed the decision to the Second Circuit Court of Appeals, but their dismissal was affirmed.

Amgen Settles Class Action Lawsuit for $95 Million

In mid-July 2016, Amgen Inc. ("Amgen" or the "Company"), a global biotechnology firm, concluded nearly a decade of class action litigation by agreeing to a $95 million settlement with investors. Originating in 2007, the suit alleged that Amgen made misleading statements about the safety and marketing of anti-anemia drugs, Aranesp and Epogen, which included statements that were at odds with clinical studies, and falsely projected a positive direction for the Company that investors bought into. Consequently, the price of Amgen stock was overinflated because of the misleading statements, a violation of the Securities Exchange Act.

St. Jude Settles Securities Suit for $39M

As an investor, the companies you invest in have a duty to disclose any information that may affect their stock values. In 2012, a class of investors sued St. Jude Medical Inc. ("St. Jude" or "the Company") for allegedly lying about the quality of the new leads on its cardiac rhythm management ("CRM") devices.