Daily Archives: August 26, 2008, 2:34 pm

Ohio Federal Court Dismisses Diebold Securities Class Action

On August 22, 2008, Judge Peter Economus of the U.S. District Court for the Northern District of Ohio dismissed the securities class action against Diebold, Inc. and numerous Diebold executives.  Plaintiffs claimed that the defendants made a series of allegedly false statements regarding the financial health of Diebold and that those statements materially misled the investing public.  The court ruled, however, that…

Read More

Xethanol Corp. Settles Securities Class Action for $2.8 Million

New York-based Xethanol Corp. has reportedly agreed to pay $2.8 million to settle a securities class action lawsuit.  The Gazette reports that the settlement has received preliminary approval from the U.S. District Court for the Southern District of New York, according to lead counsel Kahn Gauthier Sevick LLC.   The class is reportedly all shareholders who bought the company’s stock on the American Stock…

Read More

The Other Side of the Cucuz Verdict

As previously discussed here, on Wednesday of last week a federal court jury in Detroit found the former CEO and CFO of auto supplier Hayes Lemmerz International Inc. liable on certain allegations in a case brought by the SEC.  The SEC said the jury verdicts against former CEO Ranko “Ron” Cucuz and former CFO William Shovers demonstrated that “senior executives who learn that…

Read More

Wachovia Receives Wells Notice From SEC on Bidding Practices

Wachovia Corp. disclosed in its recently filed 10-Q that the SEC’s Division of Enforcement has notified Wachovia Bank that it may recommend that the Commission file charges against it related to alleged anti-competitive bidding practices in municipal derivatives and investment products. Wachovia stated that it “has been informed that in connection with the bidding of various financial instruments associated with…

Read More

Goldman Sachs Settles with NY, Illinois

The Goldman Sachs Group, Inc. (GS) announced yesterday that Goldman, Sachs & Co. has entered into a settlement in principle with the Office of the Attorney General of the State of New York and the Illinois Securities Department regarding auction rate securities (ARS). Under the settlement, Goldman Sachs will offer to immediately repurchase at par the outstanding auction rate securities that are…

Read More

Australia: Claims Against Centro Properties Back in Court

Duelling claims against troubled Australian company Centro Properties returned to court yesterday in the form of preliminary hearings that will help determine what direction two class actions against the company will take.  According to The Age, a “directions hearing” before the Melbourne Federal Court occurred concerning two separate class actions.  One claim filed by the law firm Maurice Blackburn action is an “opt-in”…

Read More