Securities Law Alert, October 2012
This month’s Alert addresses the Supreme Court’s grant of certiorari in Gabelli v. SEC to determine when a government penalty claim accrues for purposes of the limitations period set forth in Section 2462.
We also discuss two decisions from the Southern District of New York: one dismissing a securities fraud action against UBS AG and holding that the group pleading doctrine does not survive the Supreme Court’s decision in Janus Capital Group, Inc. v. First Derivative Traders; and another denying a motion to stay a derivative suit against the directors of News Corporation notwithstanding a similar action pending in the Delaware Chancery Court.
In addition, we address a District of Connecticut decision holding that the definition of “whistleblower” is broader under the Dodd-Frank Act’s anti-retaliation provision than it is under the rest of the statute; as well as a decision from the Eastern District of North Carolina dismissing a say-on-pay derivative suit against the directors and officers of Dex One Corporation on the merits.
Finally, we discuss a Delaware Chancery Court decision holding that plaintiffs who file Caremark claims without first conducting a reasonable investigation are presumed disloyal to the corporation.