Boomj.com v. Pursglove
Court declines to exclude expert’s value of shares in publicly traded company, finding the expert adequately considered Rule 144 “time and quantity” restrictions.
Financial Experts May Be Required at Initial Pleading Stages of Securities Litigation
Federal district court dismisses securities fraud complaint for failing to plead its allegations of fair value accounting valuations with sufficient clarity and accuracy.
In re Nuveen Funds/City of Alameda
Court dismisses securities fraud complaint regarding municipal bonds due to lack of expert loss causation evidence; i.e., comparing value of underlying collateral on purchase date to subsequent liquidation sale value.
Stratte-McClure v. Morgan Stanley
Court finds that Morgan Stanley failed to disclose its subprime exposure and losses, but dismisses complaint for lack of adequate allegations of loss causation, with leave to file amended claims.
Stock Redemption Rights Turn on More Than Finding Balance Sheet Surplus
Delaware Chancery finds that “funds legally available” for corporate stock redemption requires more than calculating a balance sheet surplus valuation.
Subprime Litigation: Did the Bank Use Level 3 Inputs Instead of Observable Indexes?
Court denies motion to dismiss subprime asset litigation, based on plaintiff’s allegations that Citigroup overvalued its collateral debt obligations and understated its risk.
Dueling Daubert Motions in Securities Fraud Litigation Focus on Loss Causation
Federal district court rejects expert’s “insolvency theory” of loss causation, finding that, even when securities fraud leads to a company to bankruptcy, plaintiffs must show causal link between the alleged loss and qualified corrective disclosures.
Fulton Co. Employees’ Retirement System v. MGIC Investment Corp.
Federal district court dismisses securities fraud complaint for failing to plead its allegations of fair value accounting valuations with sufficient clarity and accuracy.
Delaware Chancery Clears the Dollar Thrifty/Herz Merger But Discredits DCF With Synergies
Delaware Chancery declines to enjoin proposed merger between Dollar Thrify rental car company and Hertz, after rejecting plaintiffs’ DCF, which incorrectly included synergies of the merger.
In re Citigroup, Inc. Securities Litigation
Court denies motion to dismiss subprime asset litigation, based on plaintiff’s allegations that Citigroup overvalued its collateral debt obligations and understated its risk.
SV Investment Partners v. Thoughtworks, Inc.
Delaware Chancery finds that “funds legally available” for corporate stock redemption requires more than calculating a balance sheet surplus valuation.
In re DVI, Inc. Securities Litigation
Federal district court rejects expert’s “insolvency theory” of loss causation, finding that even when securities fraud leads to a company to bankruptcy, plaintiffs must show causal link between the alleged loss and qualified corrective disclosures.
In re Dollar Thrifty Shareholder Litigation
Delaware Chancery declines to enjoin proposed merger between Dollar Thrify rental car company and Hertz, after rejecting plaintiffs’ DCF which incorrectly included synergies of the merger.
Court Rejects Market Cap ‘Bright Line Rule’ Regarding Goodwill Impairment Testing
A company’s book value exceeding its market capitalization is not a “bright line” test for triggering goodwill impairment, and the court dismissed claims for securities fraud for failing to state a more precise triggering event.
Courts Now Want Experts to Provide Critical Link in Criminal Securities Fraud
Comprehensive expert evidence, including statistical event study, required for government to prove causation in criminal securities fraud case.