Disparity Between Valuations of Hedge Funds of Unlisted Securities Not Misleading by Itself; Self-Dealing Needed for Fraud
Beacon Hill Asset Management LLC (Beacon Hill), an investment manager of hedge funds that invested in mortgage-backed and related securities, allegedly overstated the net asset values (NAV) of three funds from March 2000 through September 2002 by as much as 61.22%.
The Rockies Fund, Inc., et al. v. Securities and Exchange Commission
Court finds that mutual fund directors—including independents—showed “extreme departure” from duty of care by failing to assign fair value to funds’ holdings.
In re Acterna Corp. Securities Litigation
One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting St ...
Fraternity Fund Ltd. v. Beacon Hill Asset Management LLC
One of the issues was whether Beacon Hill's valuations were fraudulent because they deviated from valuations done by independent appraisers/brokers.
Dura Pharmaceuticals, Inc. v. Broudo
U.S. Supreme Court establishes the loss causation requirement in securities fraud litigation; i.e., it requires the plaintiffs to provide direct, causal link between alleged fraud and/or misrerpresentation by the corporate defendants and the inflated mark ...
Robert A. Ogdon v. Byron Nelson Company, Inc., et al.
The Washington Court of Appeals affirmed the trial court’s grant of summary judgment to Byron Nelson Company, Inc. in this violation of the Securities Act of Washington case. It found that even if BNC misrepresented the value of its stock in connection wi ...
A Due Diligence Investigation Into the Value of Stock Is Required to Overcome Summary Judgment in Misrepresentation of Value Case
The Washington Court of Appeals affirmed the trial court’s grant of summary judgment to Byron Nelson Co. Inc. in this violation of the Securities Act of Washington case.
John Guarino and Ryan Smith v. Interactive Objects, Inc.
The Washington Court of Appeals determined that the defendant company and its corporate insiders ran afoul of the Washington State Securities Act (WSSA) when it did not disclose information regarding a potential merger of the company when it negotiated a ...
Specifics of Merger Negotiations Need to Be Disclosed When Negotiating the Purchase of Stock by the Company or Corporate Insiders
The Washington Court of Appeals determined that the defendant company and its corporate insiders ran afoul of the Washington State Securities Act (WSSA) when it did not disclose information regarding a potential merger of the company when it negotiated a repurchase of its stock from the plaintiffs.
Damages Award on Federal Securities Fraud Claim Not Speculative
Peter Camplin started Sea Dog Brewing Co. in 1992.
Wortley v. Camplin
Issue is whether jury's damages award in claim for breach of stock purchase agreement were too speculative.
Measure of Damages for Suspended Shelf Registration Determined
The Delaware Supreme Court concluded that the appropriate measure of damages for suspended shelf registration is the difference between the highest intermediate price of the shares during a reasonable time at the beginning of the restricted period.
James W. Duncan, et al. v. TheraTx Incorporated
The Delaware Supreme Court concluded that the appropriate measure of damages for suspended shelf registration is the difference between the highest intermediate price of the shares during a reasonable time at the beginning of the restricted period, which ...
In re General Instrument Litig.
At issue is the admittance of expert testimony.
Lay Opinion Stricken Under FRE 701
One of the issues raised in this partial summary judgment motion in a consolidated derivative action is the admissibility of lay opinion testimony under FRE 701.
Securities and Exchange Commission v. Chester Holdings, Ltd.
At issue is the valuation of stock in five aquisitions and the use of proper accounting.
Securities and Exchange Commission v. Chester Holdings, Ltd.
The District Court held that Chester Holdings' overstatements of its financial condition in press releases and SEC filings, made in connection with five acquisitions, constituted fraud and that its officers were liable for insider trading.
Harold S. Ansin, et al. v. River Oaks Furniture, Inc.
The First Circuit Court of Appeals affirmed the district court's decision to award damages under SEC Rule 10(b)-5 against the corporation who fraudulently induced a minority shareholder to sell his interest one-year prior to an IPO. The company failed to ...
Anticipated IPO Considered in Determining Fair Value
The 1st Circuit Court of Appeals affirmed the district court's decision to award damages under SEC Rule 10(b)-5 against the corporation that fraudulently induced a minority shareholder to sell his interest one year prior to an IPO.