Daily Archives: August 20, 2008, 9:23 pm

Deal or No Deal? Conflicting Reports on Possible SEC-Siemens Settlement

Is Germany’s Siemens (SI) about to enter into a settlement with the SEC regarding an investigation into what may be the world’s biggest bribery scandal?  According to a Reuters article on Tuesday, a German daily called Frankfurter Allgemeine Zeitung reported that Siemens is “trying to bring an end to things” and that a deal was close, quoting an unidentified New York lawyer. …

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Kirby McInerney Law Firm Named Lead Counsel in Citigroup Securities Class Action

The law firm Kirby McInerney LLP announced Wednesday that it has has been appointed lead counsel in a securities class action against Citigroup Inc (C). The action is brought on behalf of all persons who purchased or otherwise acquired the common stock of Citigroup between January 2, 2004 and November 21, 2007, and alleges that the defendants issued materially false and…

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Court Denies Bristol-Myers’ Motion to Dismiss Securities Class Action

U.S. District Judge Paul A. Crotty of the Southern District of New York ruled Wednesday that a securities class action lawsuit can proceed against Bristol-Myers Squibb Co. (BMY), denying the company’s motion to dismiss.  The case concerns disclosures Bristol-Myers made regarding its attempts to settle patent litigation with Canadian drug maker Apotex Inc. over popular blood thinner Plavix. As reported by Dow…

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Study: Securities Class Action Lawsuits Do Not Affect CEO Compensation

A report released today by the Corporate Library indicates that the compensation of public company CEOs does not typically drop following a securities class action lawsuit.  As reported by Financial Week, the study looked at CEO compensation from 2003 to 2006 among 54 public companies, and found that 40 CEOs saw their salaries, bonuses and benefits increase over the period…

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Second Circuit Rejects Milberg’s Request for Increased Fees in Nortel Networks Litigation

The U.S. Court of Appeals for the Second Circuit has rejected a request by the Milberg law firm to increase its attorneys fees from 3% ($38 million) to 8.5 % (approximately $101 million) in the settlement of shareholder litigation against Nortel Networks Corp.  Law.com reports that Judge Richard Berman of the Southern District of New York found that a 3 percent…

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Waksal Gets Weekend Furlough, Goes Shopping

Infamous insider trader Sam Waksal, aka the “Martha Stewart Guy,” is now out of federal prison and residing at the Bronx Community Re-entry Center half-way house.   Waksal is the founder of the company ImClone, and allegedly tipped off Martha Stewart when his company’s stock was about to tank in 2001. The NY Post reports that Waksal “just enjoyed a luxurious weekend furlough from his…

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Northern Ireland Local Government Officers’ Superannuation Committee Co-Lead in Lehman Case

The Northern Ireland Local Government Officers’ Superannuation Committee has stepped up to serve as co-lead plaintiff in the securities class action against U.S. investment bank Lehman Brothers Holdings Inc. (LEH).  According to the WSJ, the pension fund is responsible for the pensions of Northern Ireland’s public sector employees and allegedly bought 197,700 Lehman shares between Sept. 13, 2006 and March…

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Harvey Pitt to Assist Alabama in Naked Short Selling Investigation

Harvey Pitt, former chairman of the SEC, was appointed Tuesday as a deputy attorney general for Alabama.  According to the Press Register, Pitt has agreed to an unpaid position in which he will help Alabama investigate possible naked short selling abuses, and will focus on a case involving Montgomery-based Colonial BancGroup, which has seen its shares plummet under pressure from short sellers.  The…

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“Nobody Gets a Pass”

So says Chairman Cox with respect to the SEC’s numerous investigations into auction-rate securities abuses.  In remarks yesterday, Chairman Cox told reporters that the investigations range far beyond the five banks that have already agreed to buy back billions of dollars of ARS from customers, and that there are “over a dozen pending investigations under way.” Cox said in his remarks to…

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