November 14, 2013
Topical 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: Citigroup shareholders who did not sell their stock failed to state a claim for fraud. AHW Inv. Partnership v. Citigroup Inc. 2013 WL 5827643 (S.D.N.Y.) Under New York law, shareholders’ fraud claim against Citigroup and corporate officers, alleging that the shareholders held onto their publicly-traded stock because they believed the defendants’ false representations minimizing Citigroup’s exposure to risk from holding residential mortgage-backed securities (RBMS), failed to allege non-speculative damages that the misrepresentations proximately caused, as would be required to state a claim for fraud. 2013 WL 5827643. (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required).
Foreign Securities: Forum non conveniens warranted dismissal of foreign investors’ securities claims against foreign investment funds. In re Herald 2013 WL 5048291 (C.A.2 (N.Y.))
Fraud: Limited partners did not have to prove precise amount of overvaluation to survive summary judgment. CILP Associates, L.P. v. PriceWaterhouse Coopers LLP 2013 WL 5951859 (C.A.2)