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Mealey's Securities

  • February 06, 2026

    Judge Denies Motion To Reconsider Ruling In Cryptocurrency Sale Dispute

    ORLANDO, Fla. — A federal judge in Florida denied a motion filed by the co-founder of a cryptocurrency and the company that managed the cryptocurrency asking the judge to reconsider its grant of partial summary judgment to the investors who sued them for selling the cryptocurrency without filing a registration statement, finding that the defendants didn’t “present any ‘intervening change in law’ or ‘new evidence’ to suggest that the Court should reconsider its previous Order.”

  • February 06, 2026

    9th Circuit: Shareholders Sufficiently Alleged Falsity About Technology, Inventory

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel affirmed in part and reversed in part a lower court’s order dismissing shareholders’ putative class action alleging that Funko Inc. and certain of its executives violated federal securities laws by issuing misleading statements about the company’s inventory, storage and technology, finding that the plaintiffs pleaded with sufficient particularity factual allegations regarding the falsity of statements concerning existing technology and inventory management.

  • February 06, 2026

    Split 2nd Circuit Finds Company Breached Contract By Not Honoring Warrants

    NEW YORK — A Second Circuit U.S. Court of Appeals panel affirmed a lower court’s grant of summary judgment in favor of two warrant holders against a global visual content marketplace, finding that the company breached their contracts by not allowing the warrant holders to exercise the warrants to purchase stock after the warrant agreement conditions had been met.

  • February 05, 2026

    Delaware High Court Reverses Fee Award In Tesla Excess Compensation Action

    WILMINGTON, Del. — The Delaware Supreme Court reversed the attorney fee award in a derivative litigation settlement resolving excess compensation claims against Tesla Inc.’s directors, finding that the Delaware Court of Chancery erred by including the intrinsic value of stock options returned to Tesla in its financial benefit analysis.

  • February 05, 2026

    3rd Circuit: Rule Silent On Enforcement Of Tendered Share Transfer Restrictions

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of shareholders’ suit alleging a company violated the Securities and Exchange Commission’s Best Price Rule by not purchasing their tendered shares, finding the rule is silent about whether a tender offeror may enforce restrictions on the transfer of tendered shares.

  • February 03, 2026

    5th Circuit: District Court Wrong To Dismiss Stock Drop Suit With Prejudice

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel held that a lower court was wrong to dismiss investors’ putative class action against a telecommunications corporation and certain of its executives for misleading investors about its failure to remedy old lead-sheathed telephone cables, finding that the lower court did not provide an analysis to support dismissing the complaint with prejudice.

  • February 03, 2026

    Trading Adviser Seeks Reconsideration Of Dismissal Of CEA Violation Cases

    CHICAGO — A commodity trading adviser filed a petition for rehearing en banc and panel rehearing with the Seventh Circuit U.S. Court of Appeals, asking the court to reconsider a panel’s decision to affirm the dismissal of complaints brought by the adviser and a trust against financial institutions alleging they violated the Commodity Exchange Act by manipulating the volatility index, arguing that the panel’s decision conflicts with circuit precedent.

  • February 02, 2026

    9th Circuit: Judge Properly Found Securities Claims Against Crypto Firm Barred

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel affirmed a lower court’s order granting a motion from an issuer of crypto tokens and its CEO to dismiss class action securities claims against them, finding that the 2017 offering of the tokens was a separate offering from the 2013 offering, making the federal securities claims time-barred.

  • January 30, 2026

    7th Circuit Affirms Dismissal Of CEA Violation Cases Against Financial Firms

    CHICAGO — A Seventh Circuit U.S. Court of Appeals panel affirmed an Illinois federal judge’s dismissal of complaints filed by a trust and a commodity trading adviser against financial institutions they alleged violated the Commodity Exchange Act by manipulating the volatility index, finding that the trust’s complaint was untimely and the adviser did not allege that it suffered an injury in fact.

  • January 29, 2026

    SEC Divisions Issue Statement Providing Views On Classifications Of Tokenized Securities

    WASHINGTON, D.C. — On Jan. 28, the Securities and Exchange Commission’s Division of Corporation Finance, Division of Investment Management and Division of Trading and Markets issued a statement on tokenized securities in “an effort to provide greater clarity on the application of the federal securities laws to crypto assets.”

  • January 29, 2026

    Investor Files Stock Drop Class Action Over Alleged AI Data Center Misstatements

    NEWARK, N.J. — An investor filed a putative class action against an artificial intelligence cloud computing company and certain of its executives, alleging that they violated federal securities laws by misleading investors about their ability to develop needed data centers, causing the company’s stock to drop and investors to lose money.

  • January 28, 2026

    Majority: Bump-Up Exclusion Does Not Bar Coverage For Securities Class Action

    WILMINGTON, Del. — A majority of the Delaware Supreme Court on Jan. 27 held that an insurance policy’s bump-up exclusion does not bar directors and officers coverage for an underlying securities class action brought against the insured, holding that the insurers failed to satisfy both requirements of the exclusion.

  • January 28, 2026

    Judge Dispels Man’s Claim That AI Generated Musk-Tesla Opinion

    SAN FRANCISCO — Simple scrivener’s errors and the court’s misreading of precedent, not the use of artificial intelligence, account for mistakes in a pair of rulings, a California judge said in denying reconsideration in a securities and defamation case involving Elon Musk’s Tesla Inc.

  • January 21, 2026

    6th Circuit Finds Dispute Remains As To Some Claims In Suit Over Stock Sale

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel affirmed in part and reversed in part a lower court’s grant of summary judgment in favor of a biomedical research company and its controlling members in a suit brought by its founder alleging they violated securities laws and breached their fiduciary duties by not informing him that they were considering private-equity financing when he sold his stake in the company, finding a genuine dispute of material fact exists as to the founder’s fiduciary duties claim but not as to his securities law claims.

  • January 15, 2026

    3rd Circuit: Broker’s Case Properly Dismissed Due To Failure To Serve FINRA

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel affirmed a lower court’s dismissal of a securities broker’s suit against the Financial Industry Regulatory Authority (FINRA) for injunctive relief after FINRA filed a disciplinary action against him; the panel found that the lower court lacked personal jurisdiction over the case.

  • January 13, 2026

    7th Circuit Won’t Reassess Choice To Prioritize Individuals In Ponzi Liquidation

    CHICAGO — A Seventh Circuit U.S. Court of Appeals denied a petition for panel rehearing or rehearing en banc filed by a loan servicer after the panel affirmed an Illinois federal judge’s decision to award priority to individual investors to receive proceeds from the liquidation of assets related to a Ponzi scheme.

  • January 12, 2026

    High Court Won’t Hear Petition On Bar Order Related To Ponzi Scheme

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 12 declined to grant an investment fund’s petition for a writ of certiorari asking the court to determine whether a federal court overseeing an equity receivership can bar ongoing and future litigation against nonreceivership third parties.

  • January 12, 2026

    High Court Won’t Determine If RICO Claim Can Be Brought Without Securities Claim

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 12 denied a financial institution’s petition for a writ of certiorari asking the court “to interpret a statutory provision that bars a Racketeer Influenced and Corrupt Organizations Act plaintiff from ‘rely[ing] upon any conduct that would have been actionable as fraud in the purchase or sale of securities to establish’ a RICO violation.”

  • January 12, 2026

    High Court Will Address Recurring Question On SEC’s Disgorgement Authority

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 9 granted an individual’s petition for a writ of certiorari to determine whether the Securities and Exchange Commission is required to show that investors suffered pecuniary harm when asking for a disgorgement award.

  • January 12, 2026

    Musk Defendants: Worries About AI-Generated Opinion A ‘Hallucination Conspiracy’

    SAN FRANCISCO — Elon Musk and other defendants pushed back on a journalist’s claims that a judge used artificial intelligence to craft an opinion granting an anti-SLAPP motion in a securities case, calling the idea a “hallucination conspiracy” and arguing that the mistakes were nothing more than scrivener’s errors.  The plaintiff filed a reply saying the Musk defendants cannot avoid the reality of the errors and that their response compounded the problem.

  • January 09, 2026

    Judge Dismisses Claims Over Most Of Alleged Misstatements In Stock-Drop Suit

    CHICAGO — A federal judge in Illinois dismissed investors’ claims against Walgreens Boots Alliance and several of its current and former executives as to numerous alleged misstatements the company made regarding its primary care clinic venture, leaving the claims as to only three alleged misstatements; the judge found the majority of the alleged misstatements not to be false or misleading.

  • January 09, 2026

    9th Circuit Finds Investors Provided Plausible Claims Against Digital Platform

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel reversed in part a lower court’s dismissal of an investor’s class action against a digital experience platform, certain executives and directors, and underwriters for allegedly providing misleading statements in its public offering documents, finding that the complaint contained plausible allegations.

  • January 09, 2026

    Investors, Online Home-Selling Company Reach $39M Settlement In Stock-Drop Suit

    PHOENIX — A federal judge in Arizona granted final approval to a $39 million settlement in a suit brought by retirement funds alleging that an online home-selling company made false statements about its artificial intelligence-powered pricing algorithm that the retirement funds alleged resulted in the funds’ losses.

  • January 09, 2026

    5th Circuit Won’t Rehear Decision To Allow Division Of Investor Subclasses

    NEW ORLEANS — A  Fifth Circuit U.S. Court of Appeals panel denied investors’ petition for panel rehearing and petition for rehearing en banc, deciding not to reconsider its decision to affirm a district court’s order that partially granted and partially denied class certification in its securities fraud class action against an offshore development company.

  • January 09, 2026

    9th Circuit Won’t Rehear Case Alleging Tesla Misled About Self-Driving Technology

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel denied investors’ petition for panel rehearing of the panel’s memorandum affirming a lower court’s decision to dismiss their complaint against Tesla Inc. and Elon Musk for violating federal securities law by allegedly misrepresenting the safety, capability and development of the company’s autonomous driving technology; the panel had found that the investors failed to allege falsity or scienter.