Judge Frees 1 Of 2 StarMedia Execs From SEC Fraud Case

Law360, New York (October 29, 2012, 1:54 PM EDT) -- A New York federal judge on Friday freed one former executive of StarMedia Network Inc. but refused to release another from federal regulators' allegations that the Internet advertising company overstated revenues by $18 million over two years.

The Securities and Exchange Commission's lawsuit, filed in March 2006, alleged that StarMedia executives improperly inflated revenues in order to meet profit expectations and receive approval for additional financing.

On Friday, U.S. District Judge Paul A. Engelmayer denied a motion for summary judgment brought by Peter Morales, StarMedia's former...
To view the full article, register now.