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Securities Class Action Filings Increase Slightly in 2011
Topics in Legal News |
2012/01/19 10:12
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Federal securities fraud class action filing activity increased slightly in 2011, according to Securities Class Action Filings—2011 Year in Review, a semiannual report prepared by the Stanford Law School Securities Class Action Clearinghouse in cooperation with Cornerstone Research. A total of 188 federal securities class actions were filed in 2011 compared with 176 filings in 2010, with an equal number of actions (94) being filed in the first and second halves of the year. The number of class actions filed was 3.1 percent below the annual average of 194 filings observed between 1997 and 2010.
Consistent with a trend first observed in 2010, filings related to merger and acquisition (M&A) transactions continued to constitute a large percentage of total filings, accounting for 22.9 percent of 2011 activity. There were 20 such filings in the first half of 2011 and 23 filings in the last six months of the year. In 2010, M&A filings constituted 22.7 percent of all filings.
Litigation against Chinese issuers listed on U.S. exchanges through reverse mergers represented a major component of filings activity during 2011, although evidence indicates that this type of litigation is subsiding. In 2011, 33 such actions were filed, constituting 17.6 percent of all federal securities class actions. This activity occurred predominantly in the first half of the year, when 24 of these actions were filed; only nine were brought in the last six months, including five filed in the last three months of the year. In contrast, there were only nine such cases filed during 2010, suggesting both a rapid peak and decline in this type of litigation activity. Compared to other class action securities fraud complaints, Chinese reverse merger filings are more likely to allege violations of generally accepted accounting principles and financial restatements and are less likely to allege insider trading.
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Amazon Hit With Class Action Over Zappos Data Breach
Topics in Legal News |
2012/01/18 10:08
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Shoe retailer Zappos is facing a national class action suit one day after it warned customers that its servers had been hacked.
On Monday, the Amazon-owned shoe company sent a mass email stating that 24 million customer accounts had been breached. The incident resulted in hackers obtaining names, phone numbers, emails, encrypted passwords and the last four numbers of customer credit cards.
The lawsuit claims Amazon violated a part of the Fair Credit Reporting Act by failing to properly encrypt and secure customer information, and seeks unspecified damages for 24 million customers.
The lead plaintiff in the case is a Texas woman but the suit was filed in federal court in Louisville, Kentucky on the grounds that Amazon has servers located in that state.
As these type of hacking incidents have become more common, so too have related lawsuits. So far, though, few of these lawsuits been successful because customers have been unable to show that they have been harmed by the data breaches.
The Kentucky lawsuit appears based in part on a novel legal theory that customers will now be more susceptible to phishing and other online scams because hackers have their email. It also alleges the plaintiffs suffered emotional distress. Other high-profile data breach cases such as one involving Sony’s Play Station have been based in part on state consumer laws.
Although courts have been reluctant to find that customers have been harmed by data breaches, there is evidence this may be changing. A security publication recently reported
that an appeals court allowed customers to claim they suffered harm in the form of having to buy insurance for identity theft.
Some media publications this week praised Zappos’ for having a pre-arranged plan to respond to the data theft. The company claims that its customer credit cards remained secure because they were stored in a separate server.
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Perry appeals judge's ruling on Va. primary ballot
Topics in Legal News |
2012/01/16 05:37
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Texas Gov. Rick Perry on Sunday appealed a federal judge's refusal to add him and three other candidates to Virginia's Republican presidential primary ballot.
In a filing with the 4th U.S. Circuit Court of Appeals, Perry's attorneys requested that the court order his name be placed on the ballot, or order that ballots not be printed or mailed before his appeal is considered.
Perry sued last month after failing to submit enough signatures to get on the Mach 6 ballot. Former House Speaker Newt Gingrich, former Pennsylvania Sen. Rick Santorum and former Utah Gov. Jon Huntsman joined Perry's lawsuit after also failing to qualify.
Only former Massachusetts Gov. Mitt Romney and Texas Rep. Ron Paul qualified for the primary ballot.
Virginia requires candidates to obtain the signatures of 10,000 registered voters, including 400 from each of the state's 11 congressional districts, to get on the ballot. State law also allows only Virginia residents to circulate petitions.
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Ohio taking death penalty case to US Supreme Court
Topics in Legal News |
2012/01/15 09:38
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Ohio's governor and attorney general said Sunday the state is asking the U.S. Supreme Court for a ruling that Ohio's protocol for carrying out the death penalty is constitutional.
Gov. John Kasich and Attorney General Mike DeWine said in a statement that the state wants the high court to reverse a federal appeals court decision to delay the Wednesday execution of Charles Lorraine.
Lorraine was condemned to death in the 1986 slaying of an elderly Trumbull County couple. But the federal appeals court said Friday his execution should be delayed to review changes Ohio has made in carrying out the death penalty.
Lorraine argued that Ohio broke its promise to adhere strictly to its execution procedures. But the state said that deviations from the procedures during the last execution were minor and that an inmate's rights would not be violated by changes, such as which official announces the start and finish times of an injection. |
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Md. man's leave lawsuit lands in Supreme Court
Topics in Legal News |
2012/01/12 09:33
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A man who sued the state of Maryland after allegedly being fired for trying to take a 10-day medical leave from his state job will have his case heard Wednesday by the U.S. Supreme Court, and the outcome could affect whether state workers nationwide can sue in similar situations.
Daniel Coleman was fired from his job overseeing contracts for the Maryland court system in 2007. He says he was fired after asking for time off for doctor-ordered bed rest to deal with hypertension and diabetes. Under a law passed by Congress and enacted in 1993, the Family and Medical Leave Act, employees can take up to three months of unpaid leave for certain reasons, including a serious health issue. After being fired, Coleman sued, claiming a violation of the leave law and discrimination, a claim that was later thrown out by a lower court. He asked Maryland to pay him a reported $1.1 million in compensatory and punitive damages.
But lawyers for Maryland argue Congress was wrong to give employees like Coleman the ability to sue state employers for money damages. Unlike private employers, states are generally exempt from such lawsuits. Two lower courts have agreed with Maryland that Congress overstepped its authority, and 26 other states are also supporting the state's arguments. |
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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The content contained on the web site has been prepared by Securities Law News as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case. | Affordable Law Firm Website Design by Law Promo |
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