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6/14/2006 6:21:00 AM | Judge grants Tyco investors class-action status 
=(0) A shareholder lawsuit against Tyco International was given class-action status by a judge in New Hampshire. The suit alleges that CEO Dennis Kozlowski and CFO Mark Swartz defrauded shareholders who purchased the stock between December 1999 and June 2002. Estimates of shareholder losses reach $60 billion. The two men were convicted last year of...
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6/14/2006 4:03:00 AM | US seeks RSA files in options inquiry =(0) Three more companies are being investigated on suspicion of backdating stock options, and one other company faces a shareholder lawsuit on the matter. Sepracor Inc. is being sued for breach of fiduciary duties, and RSA Security Inc., Asyst Technologies Inc., and Meade Instruments Corp. have all had document requests from federal authorities.&n...
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6/13/2006 3:03:00 AM | Investment group’s lawsuit adds to Block troubles =(0) H&R Block shareholders are now suing the company's Board of Directors in a "shareholder derivative" lawsuit. It alleges improper management practices including fraudulently recommending unsuitable investments to clients, for the purpose of making profit on fees. A similar lawsuit has also been launched by the pension fund of an ironworkers' un...
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6/12/2006 12:47:00 PM | SEC Launches Formal Investigation into McAfee Stock Options =(0) McAfee is being formally investigated by the SEC over the possible backdating of stock options. This type of manipulation, if not disclosed, is illegal. The purpose of the practice is to have the option-holder make a larger profit upon sale of the stock. Dozens of companies are currently being investigated, or are investigating themselves, for smil...
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6/9/2006 9:27:00 AM | US Court Dismisses Securities Action Lawsuit Against Cell ... =(0) A US District Court Judge has granted a motion to dismiss a class action lawsuit against cancer drug maker Cell Therapeutics Inc. The lawsuit alleged false statements by the company concerning trials of lung cancer drug Xyotax. Investors who bought Cell Therapeutics stock between November 2003 and March 2005 claim the company made money on sto...
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6/3/2006 1:52:00 PM | Class Action Targets Wachovia =(0) The Wachovia Bank is a defendant in a class action suit by beneficiaries of certain fiduciary accounts managed by the bank. Evergreen Companies are co-defendants. The suit alleges that assets were improperly managed, that excessive fees were charged and that the Evergreen Fund investments made had misrepresentations and omissions in their...
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6/2/2006 11:30:00 PM | BULLETIN: Vonage hit with class-action shareholder lawsuit =(0) Investors in the recent Vonage IPO have filed a class action lawsuit against the company after the shares dived 30% in their first week. A "false and misleading" Registration and Prospectus is alleged, which would be a violation of Federal Securities Law. It was further alleged that the tactic of offering some IPO shares to customers was ...
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6/2/2006 5:05:00 PM | Class Action Lawsuit Filed Against XM Satellite Radio Holdings Inc ... =(0) A class action lawsuit has been filed against XM Satellite Radio Holdings Inc, on behalf of investors who bought the company's stock between July 28, 2005 and February 15, 2006. The suit alleges false and misleading statements and misrepresentation with regard to the cost to the company of reaching its subscription goal of 6 million by the end...
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6/2/2006 1:34:00 PM | Investors seek to add Parmalat to US lawsuit =(0) Defendants in the investor lawsuit against the Italian food company Parmalat may soon include the reorganized company itself. Up until now, claims were against auditors and banks, who were accused of misleading investors about the company's status. Parmalat itself was in bankruptcy and thus protected. Plaintiffs have now filed papers in ...
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6/2/2006 1:03:00 PM | Vinson & Elkins settles with Enron for $30 million =(0) A Houston law firm has settled a dispute with Enron's bankruptcy estate and will pay $30 million to avoid a lawsuit over its alleged role in the Enron debacle. However the law firm is not completely off the hook, as it is still one of the defendants in a lawsuit by Enron shareholders. Some banks have settled with Enron in similar fashion,...
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6/1/2006 12:02:00 PM | Vonage tells customers to pay up for IPO =(0) An innovative IPO offering has gone terribly wrong for those who invested in Vonage shares. The stock is down 29% in its first week, and not only investors but also customers are angry. Thirteen per cent of the shares were allocated to Vonage customers as a show of "loyalty" but now these customers are among the unhappy, especially since the r...
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6/1/2006 10:52:00 AM | Susman Godfrey LLP Files Class Action Lawsuit Against Vitesse ... =(0) A class action lawsuit has been filed against Vitesse Semiconductor Corp. on behalf of investors who acquired the stock between January 28, 2003 and April 26, 2006. The allegation is that the company made false and misleading statements and omissions concerning financial statements, accounting for product returns, and dating of stock options....
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6/1/2006 1:42:00 AM | Class action filed against AIG for pushing funds that increased ... =(0) A class action lawsuit has been filed in New York against American International Group (AIG) claiming that their agents were instructed to aggressively sell certain mutual funds from certain companies for the purpose of collecting financial incentives from those companies and that this was not disclosed to clients. Clients were thus not advise...
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5/31/2006 12:17:00 PM | Taking Aim at Reverse Churning =(0) While "churning" is the practice of creating excessive transactions in order to reap commissions, "reverse churning" is the term for putting clients who trade infrequently into fee-based accounts as opposed to commission-based accounts. This is often not in the client's best interests and is currently one of the issues examined when a firm is ...
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5/30/2006 6:42:00 PM | Lovell Stewart Halebian LLP Files Class Action Suit against ... =(0) A class action suit has been filed against American Tower Corporation, a Boston communications company. Plaintiffs are investors who purchased shares between February 1, 2006 and May 24, 2006. The claim is that the company made false and misleading statements for the purpose of artificially inflating the stock price. Backdating of stock option...
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5/28/2006 5:10:00 PM | Livedoor prez "not guilty" of stock fraud =(0) The trial of former Livedoor executives has begun in Japan. The company's President, Takafumi Horie, is not among these defendants and will be tried later, but publicly insists he is innocent and did not know what the others were doing. Charges are that the company used unethical methods including lying about profits to artificially inflate it...
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5/26/2006 1:05:00 AM | Not Many Lay, Skilling Sympathizers Out Here =(0) Enron executives Lay and Skilling may have been convicted of fraud and conspiracy, but those charges were not directly related to their role in the California energy crisis. Still, those affected are pleased with the verdict. Enron did settle with California for $1.5 billion, but since they are bankrupt it's unclear how much compensation California...
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5/25/2006 8:07:00 PM | Jury Convicts Enron Executives =(0) The jury is in, for the trial of Kenneth Lay and Jeffrey Skilling. Lay was found guilty of fraud and conspiracy on all six counts charged, and faces as much as 45 years in prison. Skilling was convicted on 19 of 28 counts, innocent only on some counts of insider trading. Pending sentencing, they remain at large, on bond.......
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5/25/2006 7:37:00 PM | Time Warner, others to pay $23M in suit =(0) Time Warner has settled a lawsuit by several Pennsylvania-based pension and investment funds which alleged fraud, misleading statements and improper accounting practices with regard to AOL stock. The company will pay $23 million according to the terms of the settlement. Time Warner acquired AOL in 2001 as the tech bubble was in decline, and al...
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5/25/2006 4:01:00 AM | Judge approves CIBC's Enron settlement =(0) One more settlement in the Enron affair has been finalized. Three banks - J.P. Morgan Chase, Citigroup, and CIBC will pay a combined total of $6.6 billion for claims they cooperated with the Enron fraud. The total settlement fund now stands at over $7 billion, with interest.......
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