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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCanadian Court Refuses to Dismiss Class Action Against Alberta Securities Commission
On August 15, the Court of Queen’s Bench of Alberta denied a motion by the Alberta Securities Commission to toss out a proposed lawsuit against the regulator claiming negligence. As reported by Investment Executive, on June 22, 2007, Elmer Amendt filed a pro se statement of claim against the commission, claiming to be a class […]
Former Hayes Lemmerz CEO, CFO Found Liable in SEC Case
On Wednesday, a federal court jury in Detroit found the former CEO and CFO of auto supplier Hayes Lemmerz International Inc. liable in a securities fraud case brought by the SEC. According to the Detroit News, the two men were charged with concealing the company’s poor financial health and covering up a multi-year accounting fraud. The SEC […]
Merrill Lynch, Massachusetts Reach ARS Settlement
Merrill Lynch (MER) today reached a settlement with the Massachusetts Secretary of the Commonwealth to provide clients with access to billions of dollars in funds in connection with the sale of auction rate securities. The WSJ reports that the announcement comes nearly a week after Merrill had indicated it would begin buying back about $10 billion in auction-rate […]
FINRA Auction-Rate Securities Probe of 40 Brokerages to Begin On Monday
Investigators from the Financial Industry Regulatory Authority (FINRA) will reportedly begin conducting on-site examinations at nearly 40 brokerages beginning Monday to determine whether they were aware of the problems in the auction-rate market and adequately warned customers about the risks. According to the LA Times, citing a person familiar with the issue, FINRA’s examinations will focus […]
Federal Court Dismisses SEC Insider Trading Case
On Wednesday, U.S. District Court Judge Graham Mullen dismissed on summary judgment the SEC’s case against John Mangan, Jr. alleging insider trading. The case focused on a single trade made more than six years ago in 2001 when Mangan worked for the Charlotte office of Friedman, Billings, Ramsey. Mangan was represented in the case by George Covington of King […]