Class Actions

Xethanol Corp. Settles Securities Class Action for $2.8 Million

New York-based Xethanol Corp. has reportedly agreed to pay $2.8 million to settle a securities class action lawsuit.  The Gazette reports that the settlement has received preliminary approval from the U.S. District Court for the Southern District of New York, according to lead counsel Kahn Gauthier Sevick LLC.   The class is reportedly all shareholders who bought the company’s stock on the American Stock…

Read More

Stoneridge No Help to Defendants in Bristol-Myers Case

Diving deeper into the recent federal court decision previously discussed here denying Bristol-Myers’ (BMY) motion to dismiss a securities class action, the New York Law Journal takes a look at the impact of the Supreme Court’s recent Stoneridge case on the decision.  According to the article, one of the defendants sought to be dismissed from the suit under Stoneridge, which limited liability…

Read More

Kirby McInerney Law Firm Named Lead Counsel in Citigroup Securities Class Action

The law firm Kirby McInerney LLP announced Wednesday that it has has been appointed lead counsel in a securities class action against Citigroup Inc (C). The action is brought on behalf of all persons who purchased or otherwise acquired the common stock of Citigroup between January 2, 2004 and November 21, 2007, and alleges that the defendants issued materially false and…

Read More

Court Denies Bristol-Myers’ Motion to Dismiss Securities Class Action

U.S. District Judge Paul A. Crotty of the Southern District of New York ruled Wednesday that a securities class action lawsuit can proceed against Bristol-Myers Squibb Co. (BMY), denying the company’s motion to dismiss.  The case concerns disclosures Bristol-Myers made regarding its attempts to settle patent litigation with Canadian drug maker Apotex Inc. over popular blood thinner Plavix. As reported by Dow…

Read More

Study: Securities Class Action Lawsuits Do Not Affect CEO Compensation

A report released today by the Corporate Library indicates that the compensation of public company CEOs does not typically drop following a securities class action lawsuit.  As reported by Financial Week, the study looked at CEO compensation from 2003 to 2006 among 54 public companies, and found that 40 CEOs saw their salaries, bonuses and benefits increase over the period…

Read More

Second Circuit Rejects Milberg’s Request for Increased Fees in Nortel Networks Litigation

The U.S. Court of Appeals for the Second Circuit has rejected a request by the Milberg law firm to increase its attorneys fees from 3% ($38 million) to 8.5 % (approximately $101 million) in the settlement of shareholder litigation against Nortel Networks Corp.  Law.com reports that Judge Richard Berman of the Southern District of New York found that a 3 percent…

Read More

Northern Ireland Local Government Officers’ Superannuation Committee Co-Lead in Lehman Case

The Northern Ireland Local Government Officers’ Superannuation Committee has stepped up to serve as co-lead plaintiff in the securities class action against U.S. investment bank Lehman Brothers Holdings Inc. (LEH).  According to the WSJ, the pension fund is responsible for the pensions of Northern Ireland’s public sector employees and allegedly bought 197,700 Lehman shares between Sept. 13, 2006 and March…

Read More

Hagens Berman Law Firm Appointed Lead Counsel in Charles Schwab Securities Class Action

On August 18, 2008, United States District Judge William Alsup appointed Hagens Berman Sobol Shapiro lead counsel in the securities class action litigation against Charles Schwab Corporation (SCHW) involving Schwab YieldPlus Funds Investor Shares (SWYSX) and Schwab YieldPlus Funds Select Shares (SWYPX). The lawsuit alleges that that Schwab deceived investors about the underlying risk in the funds, and claims that while…

Read More

Class Action Against Medis Technologies Dismissed

On August 18, 2008, United States District Judge Paul Crotty granted Medis Technologies motion to dismiss the securities class action filed against it and its CEO, Robert Lifton, in the Southern District of New York. Medis was represented by Deborah Hilarie Renner, Abigail Delette Lauer and Benito Delfin, Jr. of Sonnenschein Nath & Rosenthal in New York. Read the Medis Technologies press release Read Judge Crotty’s…

Read More

GM, Deloitte Agree to Settle Securities Class Action for Combined $303 Million

 General Motors and Deloitte & Touche agreed last week to pay a total of $303 million to settle a securities class action settlement alleging that GM made material misstatements in its financials dating back to 2000. Under the agreement, GM will pay $277 million in cash to a class of its shareholders, and Deloitte, GM’s outside auditor, will contribute an additional $26 million…

Read More