Westlaw Topical Highlights: Securities, July 11, 2013

July 11, 2013

Reuters ImageTopical Highlights for Securities provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Securities law. A Westlaw subscription is required to access the documents linked from this page

Fraud: Investors could not circumvent Security Act’s statute of repose by class action tolling rule or relation back doctrine. Police and Fire Retirement System of City of Detroit v. IndyMac MBS, Inc. 2013 WL 3214588 (C.A.2 (N.Y.)) Whether grounded in equitable authority or on the rule governing class actions, the American Pipe tolling rule, providing that commencement of a class action suspends the statute of limitations as to all asserted members of the class who would have been parties had the suit been permitted to continue as a class action, does not extend to the Security Act’s statute of repose. Moreover, neither the intervention rule nor the relation back doctrine permits members of a putative class, who are not named parties, to intervene in the class action as named parties in order to revive claims that were dismissed from the class complaint for want of jurisdiction. 2013 WL 3214588  (The full-texts of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Registration and Disclosure: Complaint failed to state plausible claim for false and misleading registration statement and prospectus.  Schuh v. HCA Holdings, Inc. 2013 WL 2317746 (M.D.Tenn.)

Fraud: Securities purchasers offered no new omissions from sellers that would warrant grant of motion to alter or amend judgment.  Wu v. Stomber 2013 WL 2407195 (D.D.C.)

Fraud: Wiretap evidence was lawfully obtained even though securities fraud was not predicate offense under wiretapping statute.  U.S. v. Goffer 2013 WL 3285115 (C.A.2 (N.Y.))

Commodity Futures: Operator of swap trading platform did not show Article III standing to challenge CFTC regulation.  Bloomberg L.P. v. Commodity Futures Trading Com’n 2013 WL 2458283 (D.D.C.)

Fraud: Cayman Islands investor adequately alleged domestic securities transaction, as required to state § 10(b) claim against German bank. Arco Capital Corp. Ltd. v. Deutsche Bank AG 2013 WL 2467986 (S.D.N.Y.)

Limitations: Alleged acts of concealment were not grounds for tolling limitations period under fraudulent concealment doctrine.  S.E.C. v. Wyly 2013 WL 2450545 (S.D.N.Y.)

Brokers and Dealers: Counterparties to stock repurchase agreements did not have “customer” claims under SIPA.  In re Lehman Brothers Inc. 2013 WL 3203300 (Bkrtcy.S.D.N.Y.)