1933 Act Section 12 Prospectus Liability This is the basis of liability for negligently made false or misleading statements or omissions in a prospectus or other communications made in the offer or sale of a security. 3/8/2005
1933 Act Section 13 -- Limitation of Actions This is the statute of limitations for 1933 Act claims. 3/15/2005
1933 Act Section 14, Proxy Liability This is the basis for liability in the use or failure to properly use proxies in the solicitation of shaeholder votes. It is implemented and defined by the SEC through regulations. 3/8/2005
1933 Act Section 27 Private Securities Litigation Passed in 1995 over the veto of Predisdent Clinton, these provisions set forth the procedure for being lead plainriff in a securities fraud suit brought under the 1933 Act, and stays discovery during the pendency of motions to dismiss. 3/8/2005
Securities Exchange Act of 1934, Section 10 This is the most common basis of liability for other statements and acts in connection with the sale or purchase of securities. It is implemented and defined by the SEC in Rule 10b-5. 3/4/2005
1934 Act Section 21D Private Securities Litigation Passed in 1995 over the veto of Predisdent Clinton, these provisions set forth the procedure for being lead plainriff in a securities fraud suit brought under the 1934 Securities Exchange Act, heightens the pleading requirements in bring the case and stays discovery during the pendency of motions to dismiss. This statute has the unusual effect of allowing defendants to commit securities fraud and hide it. 3/8/2005
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1933 Act Section 11, False Registration Statements This is the primary basis for liability for false statements made in SEC filings in initial public offerings (IPOs) and follow on or secondary offerings. Liability is strict, meaning no state of mind is necessary if statements are false or omit material information. 3/4/2005
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Class action filed against AT&T for allegedly acting as NSA's agent in domestic spying. See the Amended Complaint. Sony Agrees To Stop Putting Unwanted DRM Software on music CD's. We are pleased to report that in working with the Electronic Frontier Foundation ("EFF"), Sony/BMG has agreed to settle a class action over the placement of digital rights management software on it's music CD's by stopping the practice, repalcing the CD's and compensating those who purchased the CD's. The EFF has a help page and resources concerning the settlement. Claim Forms are due by December 31, 2006. If you would like to submit a Claim Form online, please click here. If you have played a CD on your computer that contains either XCP or MediaMax 5.0 content protection software, you shouldupdate or uninstall the software to reduce your risk of security vulnerabilities. Los Angeles court rules AT&T arbitration clause is not a part of the contract with consumers. The trial on whether the coverage maps of AT&T Wireless (now Cingular) are deceptive has been delayed as defendants now are seeking to compel arbitration after 7 years of litigation. Bait and Switch Complaint filed against Dell To view the complaint filed in federal court seeking nationwide class action status for bait and switch tactics click here. Illegal Advertising of Internet Gambling Suit filed against Search Engines To view the complaint filed in state court seeking to stop sponsored ads of internet gambling to be displayed by Google, Yahoo and other search engines click here. Proposals to Revise ND Cal Local Rules. Changes being discussed for handling securities fraud class actions. Click here to view. Today's Securities Surprises |