Daily Archives: October 18, 2008, 1:05 pm

US Attorney’s Office and SEC in San Francisco Winding Down Efforts on Options Backdating Cases

Joe Russoniello, U.S. Attorney for the Northern District of California and Marc Fagel, Regional Director of the Commission’s San Francisco Regional Office, state that their offices are winding down efforts on the options backdating issue, the Mercury News reports. Fagel stated that the SEC did “find multiple instances of what we believe to be fraudulent manipulation,” and that some lingering…

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Eighth Circuit Holds that Rule 10b5-1 Trading Plan Helps Rebut Allegations of Scienter

On Thursday, the Eighth Circuit affirmed the dismissal of the securities class action against Centene and certain executives.  Plaintiffs alleged, among other things, that a strong inference of scienter was demonstrated by two executives’ stock sales in April 2006.  The lower court rejected this theory and the Eighth Circuit affirmed, holding that the sale of this stock under Rule 10b5-1…

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