Nasdaq Class Action Settlement

The NYSE and the Nasdaq Composite Index are presently undergoing significant changes, which could result in an Xpo lawsuit. Currently, there is a two-month waiting period before the new Nasdaq guidelines go into effect, as well as a one-month period before the NYSE’s Class Period begins. During both the periods, trading on Nasdaq is limited to the insiders of the listed companies. As a result of these changes, all registered representatives must now forward their Nodumps to the NYSE’s corporate secretary. They are also required to submit all new Nodumps to the NYSE’s market data desks. The deadline for sending in a new Nodump is typically two months before the opening of the Nasdaq Composite index.

Xpo Lawsuit

The proposed changes affect all Nasdaq-listed companies. Under current law, a company filing a lawsuit has to be able to establish both a likelihood of prevailing on the merits of the case, and a likelihood of damages. In addition, a company filing a lawsuit must be able to demonstrate that the defendants knew about the material misstatements or omissions prior to advising plaintiffs of the potential risk, and failed to warn them of the risks.

Plaintiffs cannot rely solely on the knowledge of the defendant’s executives to overcome this burden. Plaintiffs must produce evidence that the defendants actually violated NASDAQ rules or otherwise abused the Nasdaq requirements.

On December 12th, the NODP commenced their public comment period for the Proposed Rule Changes.

During this period, anyone who may have questions regarding the proposed rule changes can send in an application either online via mail, or by fax. The deadline for filing comments is expected to be released approximately one week after the conclusion of the public comment period.

If you are a holder of one or more Nasdaq Class A or B securities on the date of the published December 12th deadline, you are eligible to comment on the Proposed Rule Changes.

After the public comment period has closed, companies that do not make any filings in the Nasdaq within three months of the published DSR will have to file a brief in opposition to the complaint in court.

The briefs contain information regarding why the proposed rule changes would affect the classification or class period of the securities in question, as well as the proposed ruling on the matter. Generally, these briefs include a letter from the attorneys general of the state or districts that were joined in the lawsuit to the United States Securities and Exchange Commission, or the SEC. The secondary public statements to date back to the last three years.

On December 12th, there was another opportunity to comment on the proposed rule changes to Nasdaq, which took effect on or before the end of the year.

On this day, the AMEX Board held a meeting to discuss and circulate among the members of the organization various class period updates and DSR notification letters that the AMEX had received as of December 12th. Included in this list were new rules for penny stocks, increased reporting requirements for listed companies, and quarterly dividends.

The secondary list of issues included in the rules that would impose an increased reporting requirement on all penny stock broking services, and required publicly traded companies to file a notice of proposed action with the SEC not later than two weeks before their first regular stock market day of trading.

The secondary list also included the Notice of Default, which is sent by the lead plaintiff, in their case against the defendant, to the effect that they have a public debt that cannot be paid in less than three months. The proposed rule change also includes a requirement that a company must give notice to the SEC within a month of a public debt. Finally, on February 12th, there will be another opportunity to discuss and vote on the updated AMEX rules for the class period.

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