Articles Posted in Securities Law

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TriQuint Semiconductor, Inc., and its directors were defendants in two consolidated shareholder derivative suits filed in Washington State. TriQuint moved to dismiss those suits on the ground that its corporate bylaws establish Delaware as the exclusive forum for shareholder derivative suits. The trial court denied TriQuint’s motion to dismiss, and the Supreme Court allowed TriQuint’s petition for an alternative writ of mandamus. After review, the Supreme Court concluded that, as a matter of Delaware law, TriQuint’s bylaw was a valid forum-selection clause and bound its shareholders. The Court also concluded that, as a matter of Oregon law, the bylaw was enforceable. The Court issued a peremptory writ of mandamus directing the trial court to grant TriQuint’s motion to dismiss. View "Roberts v. TriQuint Semiconductor, Inc." on Justia Law

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The State of Oregon, through the Oregon State Treasurer and the Oregon Public Employee Retirement Board (PERB), on behalf of the Oregon Public Employee Retirement Fund (PERF) (collectively, "state"), asserted claims against Marsh & McLennan Companies, Inc. (MMC) and Marsh, Inc. (MI). The state alleged that Marsh engaged in a scheme perpetrated by false and misleading statements that caused the state to lose approximately $10 million on investments in Marsh stock. The state contended that Marsh's actions violated ORS 10 59.135 and ORS 59.137. Marsh argued on appeal that ORS 59.135 and ORS 59.137 require a showing of reliance by the state, the state failed to establish any direct reliance by state actors on any actions by Marsh, and the state could not establish the required reliance by means of a presumption of reliance based on the "fraud-on-the-market" doctrine. Upon review of the trial court record and the applicable statutes, the Supreme Court determined that ORS 59.137 requires a stock purchaser to establish reliance, but that a stock purchaser who purchases stock on an efficient, open market may establish reliance by means of the "fraud-on-the-market" presumption. View "Oregon v. Marsh & McLennan Companies, Inc." on Justia Law