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No Curb Yet for Plaintiff Firms “Monitoring” Institutional Portfolios
May 4, 2012 • by Ethan Brown
In 1995, Congress passed the Private Securities Litigation Reform Act (“PSLRA”) designed in part to curtail lawyer-driven securities class actions. One way the PSLRA sought to do so was by presumptively appointing as lead plaintiff the shareholder with the large financial stake – typically large institutional investors – rather than the plaintiff who won the race to the courthouse.
District Court Dismisses Majority of Claims Against Client Gerova Financial
Mar 14, 2012 • by Ethan Brown
On March 6, 2012, Judge Shira A. Scheindlin of the Southern District of New York issued an order dismissing all counts except breach of contract asserted by class plaintiffs against Weingarten Brown’s client, Gerova Financial Group, Ltd. (“Gerova”). See http://www.marketwatch.com/story/weingarten-brown-llp-bulk-of-investor-claims-against-gerova-financial-dismissed-2012-03-08.
Significant New District Court Decision Preserves Defendants’ Right to Joint Representation Before the Securities & Exchange Commission
Jan 26, 2012 • by Ethan Brown
The SEC has in recent months expressed increasing concern about law firms jointly representing multiple clients in securities investigations and in subsequent enforcement proceedings. Joint representation of multiple defendants has potential benefits for defendants – for example, the maintenance of a united front, information sharing, and perhaps most obviously, reduced costs.
Seventh Circuit Endorses Broad SLUSA Preemption
Jan 4, 2012 • by Ethan Brown
Late last year, the Seventh U.S. Circuit Court of Appeals powerfully endorsed a broad reading of SLUSA preemption, affirming dismissal with prejudice of a complaint premised on breach of the duty of loyalty. See Brown v. Calamos, 11-1785 (Nov. 11, 2011), urlm.in/koau.
Court Rejection of SEC Settlement with Citigroup Could Lead to More Litigation
Dec 14, 2011 • by Ethan Brown
On November 28, 2011, Judge Jed Rakoff of the Southern District of New York rejected the Securities & Exchange’s Commission’s proposed settlement with Citigroup. See, “Citigroup MBS Settlement Rejected by Judge Who Says Public Deserves Truth,” http://urlm.in/khkq.