Archive for the ‘Class Action’ Category:

What Guidance Will SCOTUS Give on the Statute of Limitations in Securities Cases?

Written on June 12th, 2009 by Jason M. Kueserno shouts

In a recent article published on Law.com, Sarah S. Gold and Richard L. Spinogatti conduct a thorough analysis of the issues in In re Merck & Co. Secs. Deriv. & ERISA Litig.., a Third Circuit Court of Appeals case. The Supreme Court granted certiorari in In re Merck to resolve when an investor is on inquiry notice of a potential fraud claim for purposes of determining when the statute of limitaions begins to run..

The authors note that in In re Merck, the Third Circuit held that “an investor is not on inquiry notice of a potential fraud claim until the investor has knowledge of a possible fraud, including scienter.” The authors also note that the Ninth Circuit recently came to a similar conclusion in Betz v. Trainer Wortham & Co., for which a certiorari petition is currently pending.

The article is a good read for anyone interested in securities fraud litigation.

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Stifel Nicolaus Agrees to Repurchase Auction Rate Securities — In 3 Years

Written on April 22nd, 2009 by Jason M. Kueserno shouts

On April 9, 2009, Stifel Nicolaus & Co. announced that they had planned to repurchase their clients’ auction rate securities (ARS).  Unfortunately, for their customers, the repurchase will not be completed for more than three years. Furthermore, the settlement does not require Stifel to repurchase any ARS for more than 14 months.  The terms of the settlement, if accepted, provides that Stifel will repurchase its customers’ ARS on the following schedule:

  • The greater of 10% or $25,000 to be completed by June 30, 2010;
  • The greater of 10% or $25,000 to be completed by June 30, 2011;
  • The balance of outstanding ARS to be repurchased by June 30, 2012.

Stifel Nicolaus is a defendant in a class action lawsuit related to its sale of ARS to customers.  In addition, the Missouri Secretary of State and Attorney General filed a civil action against Stifel for its sale of ARS to customers.  

If you were sold ARS by Stifel Nicolaus, you should contact an attorney to discuss how this settlement, and the pending lawsuits impact your rights.  The Kueser Law Firm represents investors who have been defrauded by financial advisors, stockbrokers, banks, and other investment professionals.  

Because of the significant impact this settlement may have on your financial situation, if you do not contact The Kueser Law Firm, you should contact an attorney to discuss your rights.

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