- The Fifth Circuit affirmed the authority of the SEC to seek disgorgement so long as it is for the benefit of investors (SEC v. Blackburn);
- The Fifth Circuit held that district courts have jurisdiction to hear constitutional challenges to administrative law judges prior to entry of a final order in SEC enforcement proceedings (Cochran v. SEC);
- After motions to dismiss were denied and discovery began, Magistrate Judge Edison required plaintiffs to disclose the names of confidential witnesses (CWs) cited in the complaint and to produce documents provided by the CWs (Edwards v. McDermott Int’l, Inc.); and
- Judge Lindsay found that the PSLRA did not pre-empt RICO claims asserted in a real estate financing fraud case (Megatel Homes, LLC v. Moayedi).
Newsletters
We publish quarterly newsletters that summarize recent federal and state court decisions of interest to practitioners litigating securities and fiduciary duty claims in Texas.
We cover decisions from the United States Supreme Court, the United States Court of Appeals for the Fifth Circuit, all federal district courts in Texas, the Texas Supreme Court, and all Texas civil appellate courts. We share current issues of the newsletter with our clients and referring lawyers; older issues appear below. You are welcome to download them, but please note the limitations on their content and use in the disclosure at the end of each newsletter.
2021 – 3Q Newsletter
- In separate, per curiam decisions, the Fifth Circuit affirmed the dismissal of three federal securities actions on grounds that plaintiffs failed to allege falsity, scienter, and/or loss causation (Yang, Callinan, and Khoury);
- Federal district courts in Texas dismissed one securities class action complaint (Schulze), which plaintiffs opted not to replead, and denied a motion to dismiss in another (Venator);
- District courts entered default judgments in two enforcement actions, one brought by the SEC against an investment advisor and another brought by the CFTC against a digital asset or cryptocurrency promoter; and
- Federal and state courts also issued opinions addressing fiduciary duty claims, settlement bars, motions to compel arbitration, and the crime-fraud exception.