November 20, 2014
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.
Self-Regulatory Organizations: Records collected by SEC while examining FINRA program were exempt from disclosure under FOIA. Public Investors Arbitration Bar Association v. S.E.C. 2014 WL 5904725 (C.A.D.C.) Records collected by the Securities and Exchange Commission (SEC) while examining the Financial Industry Regulatory Authority’s (FINRA) program for arbitrating disputes between securities brokers and their customers fell within the scope of the Freedom of Information Act (FOIA) exemption for information contained in or related to examination reports prepared by, on behalf of, or for use of the agency responsible for the regulation or supervision of financial institutions. 2014 WL 5904725.
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Fraud: Investors stated plausible securities fraud claim based on CEO’s omission of fact of receipt of FDA nonapproval letter. West Virginia Pipe Trades Health & Welfare Fund v. Medtronic, Inc. 2014 WL 4829274 (D.Minn.)
Removal: Shareholders’ claim that broker-dealers violated state law did not necessarily raise issue of federal securities law. Manning v. Merrill Lynch Pierce Fenner & Smith, Inc. 2014 WL 5802291 (C.A.3 (N.J.))
Fraud: Disgorgement was warranted in amount of unpaid taxes on profits from securities fraud scheme involving offshore trusts. S.E.C. v. Wyly 2014 WL 4792229 (S.D.N.Y.)
Brokers and Dealers: Wealth management company’s relationship with client as investment manager and lender did not create fiduciary duty. Zorbas v. U.S. Trust Co., N.A. 2014 WL 4804263 (E.D.N.Y.)
Fraud: Total profits disgorgement would not reasonably approximate gains causally linked to directors’ securities fraud. S.E.C. v. Wyly 2014 WL 3739415 (S.D.N.Y.)