In Goldman Case, DOJ Reaffirms The Important Role That Securities Class Actions Play And Recommends That Case Be Remanded For Further Consideration
Posted by Robert W. Killorin on 03/04/2021
The closely watched Goldman securities case is set for oral argument before the U.S. Supreme Court on March 29, 2021. It has been a long time coming. The case began approximately eleven years ago when it was alleged that Goldman lied to its investors by claiming to put customers' interests before those of banks in a completely conflicted situation, ...
Eastern District Of Pennsylvania Denies In Part COVID-19 Securities Class Action Motion To Dismiss
Posted by Faruqi & Faruqi on 03/03/2021
On February 16, 2021, Eastern District of Pennsylvania Judge Gerald J. Pappert issued a ruling in McDermind v. Inovio Pharmaceuticals, Inc., No. 20-01402 (Feb. 16, 2021) denying in part and granting in part the dismissal of a shareholder class action lawsuit against Inovio Pharmaceuticals, Inc. ("Inovio") for violations of Section 10(b) of ...
LGBTQ Rights Bill Passes House, Moves to Senate
Posted by Camilo Burr on 03/02/2021
On February 25, 2021, the House approved the Equality Act, sending it to the Senate for approval, in a 224-206 vote. Previously, a substantially similar bill passed the House in 2019, but at the time, the Republican-led Senate blocked the legislation. Like its predecessor, the bill would amend existing civil rights law – including the Civil ...
Pilgrim’s Pride Pleads Guilty to Price-Fixing and Is Sentenced to $108 Million Fine
Posted by Raymond N. Barto on 03/01/2021
Pilgrim's Pride, one of the nation's largest producers of broiler chicken products, has pled guilty to one count of violating the Sherman Act. In its plea agreement with the Department of Justice, it admits that between 2012 and 2017, it participated in a conspiracy with at least one other competitor to rig bids and fix prices on broiler chicken ...
500,000 NYC Subway Riders Join Lawsuit Against MTA Over Accessibility
Posted by Camilo Burr on 02/27/2021
Earlier this week, a State Supreme Court Judge in New York ruled in favor of allowing 500,000 New York City subway riders to join a lawsuit filed against the Metropolitan Transit Authority ("MTA") on behalf of a coalition of accessibility rights advocates. The lawsuit, which was filed in 2017, alleges that the MTA violated the Americans with ...
Topgolf Defeats Antitrust Lawsuit Over Ball-Tracking Technology
Posted by Kristyn Fields on 02/26/2021
Earlier this month, a Texas federal judge dismissed an antitrust lawsuit against Topgolf International Inc. brought by a rival startup, SureShot Golf Ventures Inc. The lawsuit alleged that Topgolf monopolized the market for golf simulation centers by acquiring tech company Protracer, which supplied the golf ball tracking technology that SureShot ...
Federal Reserve Chairman Announces That Creating A Digital Dollar Is A High Priority
Posted by Faruqi & Faruqi on 02/25/2021
On February 23, 2021, the Federal Reserve Chairman, Jerome Powell, told the Senate Banking Committee that the Federal Reserve is "looking carefully" into whether the central bank should issue a U.S. digital dollar. "This is something we're investing time and labor in right across the Federal Reserve System," Powell said, calling it a "very ...
Ninth Circuit Partially Reverses Dismissal Of Impax Laboratories Shareholder Suit Based On Loss Causation
Posted by Faruqi & Faruqi on 02/09/2021
On January 11, 2021, the Third Circuit issued a ruling in N.Y. Hotels Trades Council & Hotel Association of NYC Inc. Pension Fund et al. v. Impax Laboratories, Inc., et al., No. 19-16744 (9th Cir. Jan. 11, 2021) affirming in part and reversing in part the dismissal of a shareholder class action lawsuit against Impax Laboratories, Inc. ("Impax") ...
NASDAQ PROPOSES RULE CHANGES REQUIRING NASDAQ-LISTED COMPANIES TO DIVERSIFY THEIR BOARDS
Posted by Faruqi & Faruqi on 02/08/2021
On December 1, 2020, The Nasdaq Stock Market LLC ("Nasdaq") filed proposed Rule 5605(f) (Diverse Board Representation) and proposed Rule 5606 (Board Diversity Disclosure) with the U.S. Securities and Exchange Commission ("SEC") to advance board diversity while at the same time enhance the transparency of board diversity statistics. The proposal ...
After Settlement With SEC In 2010 for $550 Million, Goldman Still Running From Investors
Posted by Robert W. Killorin on 02/05/2021
In 2010 the SEC alleged that Goldman Sachs misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed that hinged on the performance of subprime residential mortgage-backed securities. Goldman quickly settled with the SEC for a record $550 million. Also in 2010, a civil securities class action was ...
Biden Administration Rolls Back Trump-Era DOL Policies
Posted by Faruqi & Faruqi on 02/04/2021
Almost immediately after taking the oath of office, President Joe Biden has begun rolling back a series of policies, rules, and opinion letters promulgated by the Department of Labor ("DOL") under former President Donald Trump. First, President Biden rescinded a Trump-era rule that limited the DOL's ability to issue and rely upon sub-regulatory ...
Google Pays $3.8 Million to Resolve Pay Bias Claims
Posted by Faruqi & Faruqi on 02/03/2021
On February 1, 2021, the United States Department of Labor ("DOL") announced it reached a settlement with Google, resolving allegations of systemic pay and hiring discrimination against the technology giant. Under the terms of the settlement, Google agreed to pay $3.8 million to more than 5,500 employees and job applicants. Between 2014 and ...
GameStop Shares Surged After Reddit-Driven Short Squeeze
Posted by Katherine M. Lenahan on 02/02/2021
GameStop's stock price soared over 400% this week after retail traders, spurred on by a Reddit message board and other online trading communities, snapped up the struggling video game retailer's shares. The GameStop frenzy has fascinated many, with the Associated Press describing it as "a head-scratching David and Goliath story" that "is playing ...
Renewed Push in Congress to Increase Federal Minimum Wage to $15 Per Hour
Posted by Camilo Burr on 02/01/2021
On Tuesday, January 26, 2021, Congressional Democrats renewed their efforts to increase the federal minimum wage to $15 per hour by 2025 by introducing the Raise the Wage Act. The Act would phase out the lower wage for tipped workers while gradually increasing the minimum wage under the Fair Labor Standards Act from the current hourly wage ...
Court Denies Mylan and PBMs’ Motions to Dismiss on RICO and Antitrust Claims for EpiPen Overcharges
Posted by Raymond N. Barto on 01/29/2021
Judge Eric Tostrud of the District of Minnesota allowed a putative direct purchaser class to go forward with its case against Mylan and a group of Pharmacy Benefit Managers ("PBMs") for engaging in an alleged kickback and bribery scheme that resulted in inflated prices for EpiPens. The EpiPen is an auto-injector device that allows patients ...
Supreme Court Declines To Hear Appeal in M&T Bank Merger Case
Posted by Faruqi & Faruqi on 01/28/2021
On January 25, 2020, the United States Supreme Court denied a petition for a writ of certiorari in a closely watched attempt by M&T Bank Corporation ("M&T") to overturn the Third Circuit's ruling in Jaroslawicz v. M&T Bank Corporation, 962 F.3d 701 (3d Cir. 2020). In Jaroslawicz, the Third Circuit reversed a district court's dismissal of a ...
The First Circuit Affirms Verdict That Ex-AVEO CFO Committed Securities Fraud
Posted by Faruqi & Faruqi on 01/27/2021
On January 22, 2021, the First Circuit Court of Appeals affirmed a jury's verdict finding that the former chief financial officer of AVEO Pharmaceuticals, Inc., David Johnston, committed securities fraud in relation to his statements regarding AVEO's kidney cancer drug, tivozanib. See Sec. & Exch. Comm'n v. Johnston, No. 19-2264, 2021 WL 222037, ...
Google Faces Antitrust Lawsuit By DOJ and State Attorneys General Over Alleged Anticompetitive Practices in Search and Search Advertising
Posted by David Calvello on 01/26/2021
The next few years are shaping up to be a watershed period for the antitrust laws, especially as they relate to giant internet and hardware companies such as Google, Facebook, Amazon, and Apple. Shortly after Congress released a damning report on the state of big tech late last year, the Department of Justice ("DOJ") and several state Attorneys ...
FDA reaches deal to end litigation with company that sold schools apple juice with high levels of Arsenic
Posted by Timothy J. Peter on 01/25/2021
On January 14, 2021, the FDA entered into a Consent Decree with Valley Processing, Inc. to put an end to litigation stemming from allegations that the Sunnyside, Washington based firm had sold millions of servings of apple juice with high levels of arsenic to children pursuant to the USDA school lunch program. According to the complaint, FDA ...
Senate Finance Committee Publishes Results of Two-Year Investigation into Rising Insulin Prices
Posted by Kristyn Fields on 01/22/2021
On January 14, 2021, Sens. Charles E. Grassley (R-Iowa) and Ron Wyden (D-Ore.), leaders of the U.S. Senate Finance Committee, released the results of their bipartisan investigation into the rising price of insulin, which they launched nearly two years ago. In the course of its investigation, the committee reviewed more than 100,000 pages of ...