‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInThe 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 […]
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 […]
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 […]
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 […]
DC Circuit Finds PCAOB Constitutional
In a highly anticipated opinion, the U.S. Appeals Court for the District of Columbia Circuit held today that the Public Company Accounting Oversight Board created by the Sarbanes-Oxley Act to oversee auditors is, in fact, constitutional. As reported by Bloomberg, a Las Vegas accounting firm challenged the board’s legality in a 2006 lawsuit, arguing its […]
Canada: Expert Panel on Securities Regulation Working to Create Effective National Securities Regulator
In Canada, a group called the Expert Panel on Securities Regulation, established by Finance Minister Jim Flaherty in February, is working to create a new model for a national securities regulator, and a road map to replacing the country’s fragmented system of 13 provincial and territorial securities commissions. Canwest News Service reports that firms presenting […]
Stoneridge No Help to Defendants in Bristol-Myers Case
Diving deeper into the recent federal court decision previously discussed here denying Bristol-Myers’ (BMY) motion to dismiss a securities class action, the New York Law Journal takes a look at the impact of the Supreme Court’s recent Stoneridge case on the decision. According to the article, one of the defendants sought to be dismissed from the suit […]
Canadian 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 […]