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Prosecutors Estimate Loss from AIG Scheme May Exceed $1 Billion
Federal prosecutors in Connecticut said Friday that a scheme to manipulate the financial statements of American International Group Inc. (AIG), resulted in a loss of more than $1 billion to investors. Prosecutors offered the estimate in connection with the sentencing of four former executives of General Re Corp. and a former executive of American International […]
SEC Issues Wells Notice to GE Regarding Revenue Recognition
General Electric Co. (GE) disclosed today that the SEC’s Division of Enforcement has issued a Wells Notice to the company after a three-year-old probe that examined how GE recognizes revenue and presents cash flow. GE made the disclosure in a Form 8-K filed after the close of U.S. markets today, and stated in the filing that it “disagree[d] […]
Brower Piven and Levi & Kersinski Named Lead Counsel in E*Trade Securities Class Action
The U.S. District Court for the Southern District of New York has appointed the law firms of Brower Piven and Levi & Kersinski, as the lead and co-lead plaintiffs’ counsel in the securities class action against E*Trade Financial Corp. (ETFC). According to the Stanford Securities Class Action Clearinghouse (citing Sunstream News), the lawsuit alleges that the company […]
Mannatech, Executives Receive Wells Notice from SEC
Mannatech, Inc. (MTEX), its Chief Financial Officer and the Chairman of its Audit Committee have received a Wells Notice from the staff of the SEC’s Division of Enforcement. The company announced that the Wells Notice is related to the timing and completeness of Mannatech’s October 2007 disclosure regarding its dismissal of Grant Thornton LLP as […]
SDNY Certifies, Narrows Class in Alstom Securities Class Action
In an order dated Aug. 27, U.S. District Judge Victor Marrero of the SDNY granted class certification in the securities class action lawsuit against Alstom SA (ALO) and its U.S. subsidiaries over alleged accounting improprieties. The class is defined as shareholders who purchased the company’s ADRs between Aug. 3, 1999, and Aug. 6, 2003. According […]
Australia: Victorian Agencies Face Subprime Exposure
Although the Australian state of Victoria has continued to state that it has “no direct subprime exposure,” The Age reports that these denials are not accurate. In an article today, The Age reports that it has identified a number of Victorian agencies — including Northern Health, Western Health, Gippsland Ports, East Gippsland TAFE, Benalla & […]
Will “LEED” Certification Lead to Securities Class Actions?
Leadership in Energy and Environmental Design or “LEED” is a voluntary program started eight years ago by the U.S. Green Building Council. Project owners and builders can achieve silver, gold or platinum LEED certification by meeting requirements in different “green” building categories. LEED certification issues may soon lead to significant litigation, however, according to lawyers […]
Five Banks Sued Over Failure to Warn of Proposed Accounting Rule Changes to Fannie Mae
Citigroup, Merrill Lynch, Morgan Stanley, UBS AG and Wachovia Corp. have been named as defendants in a “failure to warn” class action filed yesterday in New York State Supreme Court in Manhattan. The lawsuit alleges that the banks failed to warn investors about proposed accounting-rule changes that lowered the value of preferred Fannie Mae (FNM) […]