Penson, BDO Seidman Settle Margin Loan Suit For $6.5M

Law360, New York (August 27, 2013, 4:33 PM EDT) -- A Texas federal judge said Friday that defunct securities clearing broker Penson Worldwide Inc. and accounting firm BDO Seidman LLP can pay $6.5 million to settle investor class action allegations that they hid the degree of risk behind Penson's margin-lending business.

U.S. District Judge Reed O'Connor approved the settlement, which will distribute about $4.4 million to shareholders who held Penson Worldwide stock from 2007 to 2011 — the timeframe in which it allegedly obscured how exposed its margin loan business was to risky investments — and...
To view the full article, register now.




Case Information

Case Title

Friedman v. Penson Worldwide, Inc. et al

Case Number



Texas Northern

Nature of Suit



Reed C O'Connor

Date Filed

August 23, 2011

Law Firms


Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.