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Securities Archives

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.

FCPA Violations By Third Parties: What To Watch For

The Foreign Corrupt Practices Act of 1977 ("FCPA") was created to make payments to foreign government officials, in order to obtain or retain business, unlawful. More often than not, the third parties, including agents, consultants and distributors, that assist with these transactions are pursued by the DOJ and SEC for their involvement in FCPA violations.

Study Shows That Investors Profit off of Macroeconomic Announcements Before Their Release

            A working paper recently published on the European Central Bank's website suggests that investors have made millions of dollars by trading according to macroeconomic announcements prior to their release. The paper provides evidence indicating that stock prices shift in the expected direction in response to large-scale United States economic news, but that they do so prior to the release of such news, providing cause to strengthen release procedures to ensure that some investors are not unfairly advantaged by the premature release of non-public economic information.