Blogs

Posts Categorized: Securities

Posted: June 17, 2020

Defendants Who Are Not Statutory Sellers Not Liable for Section 12 Claims Even Though They Were Primary Beneficiaries of Stock Sale

On April 22, 2020, Justice Schecter of the New York County Commercial Division issued a decision in International Union of Operating Engr. Benefit Funds of E. Pa. and Del. v. Camping World Holdings, Inc., 2020 NY Slip Op. 31560(U), holding that defendants who are not statutory sellers are not liable for Section 12 claims event... Read more »

Posted: June 4, 2020

Puffery Not Actionable Under Securities Laws

On May 15, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in Matter of Sundial Growers Inc. Sec. Litig., 2020 NY Slip Op. 50579(U), holding that puffery is not actionable under the federal securities laws, explaining: Expressions of puffery and corporate optimism are not actionable under the securities laws. This... Read more »

Posted: April 14, 2020

Current Financial Crisis Likely Will Lead to Events of Default in RMBS Trusts

Unlike our usual posts, which analyze recent Commercial Division decisions, this post is written to alert RMBS certificateholders of imminent events of default in RMBS trusts due to the liquidity crisis most servicers are expected to face beginning this month. RMBS certificateholders should understand their rights and the protections to which they are entitled in... Read more »

Posted: March 30, 2020

Statute of Repose Bars Securities Act Claims

On March 16, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Matlick v. Amtrust Fin. Servs., Inc., 2020 NY Slip Op. 50357(U), holding that Securities Act claims were barred by the statute of repose, explaining: Section 13 of the 1933 Act contains both a statute of limitations and a... Read more »

Posted: March 15, 2020

Securities Act Sections 11 and 12 Claims in State Court Not Required to be Plead with Particularity

On February 26, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of PPDAI Group Sec. Litig. v. XXX, 2020 NY Slip Op. 50285(U), holding that Securities Act Sections 11 and 12 claims brought in New York state court did not have to be plead with particularity under CPLR... Read more »

Posted: December 11, 2019

Court Refuses to Stay Securities Class Action in Favor of Later-Filed Federal Class Action

On November 25, 2019, Justice Schecter of the New York County Commercial Division issued a decision in Matter of Greensky, Inc. Sec. Litig., 2019 NY Slip Op. 33515(U), refusing to stay a securities class action in favor of a later-filed federal securities class action, explaining: New York State was plaintiffs’ first choice of forum and... Read more »

Posted: July 11, 2019

Court Refuses to Impose PSLRA Stay on Securities Act Action Pending in Commercial Division

On July 1, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of PPDAI Group Sec. Litig., 2019 NY Slip Op. 51075(U), refusing to impose a PSLRA stay on a Securities Act action pending in the Commercial Division, explaining: According to Moving Defendants, Plaintiffs should not be permitted to... Read more »