Posts in Shareholder Actions
Shareholder Complaint in Plumbers & Steamfitters Local 773 Pension Fund v. Danske Bank A/S

In Plumbers & Steamfitters Local 773 Pension Fund v. Danske Bank A/S, No. 19-cv-235 (S.D.N.Y. Jan. 19, 2019), Plumbers & Steamfitters Local Pension Fund (“Plaintiffs”) filed a class action suit against Danske Bank A/S (“Defendant”). The complaint was filed on behalf of all purchasers of Defendant’s American Depositary Receipts (“ADRs”) between January 9, 2014 and October 23, 2018. Plaintiffs claimed Defendant engaged in a series of untrue and misleading statements in response to allegations of illicit banking activities stemming from Defendant’s Estonia branch during the class period, thereby violating Rule 10b-5 of the Securities Exchange Act of 1934 (“the Act”).

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Davis v. Skullcandy, Inc.: Defendant’s Motion to Dismiss Securities Fraud Claim Granted

In Davis v. Skullcandy, Inc., No. 2:16-cv-00121-RJS-PMW, 2018 BL 96655 (D. Utah Mar. 21, 2018), the United States District Court for the District of Utah Central Division granted Skullcandy, Inc. (“Skullcandy”), CEO Seth Darling ("Darling"), CFO Jason Hodell ("Hodell"), and board member Richard Allen’s ("Allen") (collectively the “Defendants”) motion to dismiss shareholder Melanie Davis’s (“Plaintiff”) securities fraud claim alleging Defendants mislead shareholders about Skullcandy's performance. The court held Plaintiff did not allege with particularity a violation of Section 10(b) or Section 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

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Stoddard v. S&N Logging, Inc.: Plaintiff’s Lawsuit Dismissed on Summary Judgment for Failure to State a Claim Within the Statute of Limitations

In Stoddard v. S&N Logging, Inc., No. 35038-0-III (Wash. Ct. App. Jan. 25, 2018), S&N Logging, Inc. (“S&N”) and Newman Logging, Inc. (collectively “Defendants”) moved for summary judgment against Roy B. Stoddard (“Plaintiff”) for failure to claim a remedy from the dissolution of a corporation within the time allowed by the statute of limitations. The Washington State Court of Appeals affirmed the trial court’s grant of summary judgment.

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Cohen v. Kitov Pharmaceutical: Court Denies Defendant’s Motion to Dismiss

In Cohen v. Kitov Pharmaceutical Holdings, Ltd., No. 17 Civ. 0917 (LGS), 2018 BL 94656 (S.D.N.Y. Mar. 20, 2018), the United States District Court for the Southern District of New York denied in part and granted in part a motion to dismiss a putative class-action suit against Kitov Pharmaceutical Holdings, Ltd. (“Kitov”), CEO Isaac Israel, and CFO Simcha Rock (collectively “Defendants”) brought by lead plaintiffs Rotem Cohen and Jason Bruening (collectively “Plaintiffs”). The complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Act”). The court denied the motion to dismiss with regard to defendants Kitov and Israel but granted the motion to dismiss concerning defendant Rock.

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Laborers’ Local #231 Pension Fund v. Cowan: Case Dismissed for Failure to Allege a Misleading or False Statement or Omission

In Laborers’ Local #231 Pension Fund v. Cowan, No. 17-478, 2018 BL 85103 (D. Del. Mar. 13, 2018), the court granted Rory Cowan and his co-executives’ (“Defendants”) motion to dismiss Laborers’ Local #231 Pension Fund’s (“Plaintiffs”) amended complaint. The court held Plaintiffs failed to state a claim in violation of the Securities Exchange Act of 1934 (the “Exchange Act”) because they failed to allege “a misleading or false statement or omission” in the proxy statement.

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Webb v. SolarCity Corporation: Founders' Conduct Regarding Accounting Error Before IPO Not Sufficient to Prove Scienter

In Webb v. SolarCity Corp., No. 5:14–CV–01435–BLF, 2018 BL 79348 (9th Cir. Mar. 08, 2018), the Ninth Circuit Court of Appeals affirmed the district court’s dismissal of a securities fraud action brought in a third amended complaint (“TAC”) by James Webb (“Plaintiff”), a member of a class of plaintiffs who purchased shares in SolarCity, against SolarCity Corporation and two of its cofounders, Lyndon Rive and Robert Kelly (collectively “Defendants”). The court held Plaintiff failed to adequately plead the scienter element necessary to state a claim under § 10(b) of the Securities Exchange Act of 1943 (“Act”).

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