The Securities and Exchange Commission has asked a district court to allow the agency to distribute the $250 million settlement reached with Qwest Communications to shareholders through a private distribution agent rather than through the SEC’s own Fair Fund system.
HealthSouth Corp., the beleaguered healthcare provider, has agreed to pay out at least $445 million in a preliminary deal to resolve a host of federal lawsuits stemming from its recent financial scandals.
New Jersey gourmet cheese retailer Suprema Specialties will once again face a shareholder lawsuit stemming from its accounting fraud scandal, after an appeals court reinstated a claim against the company that had previously been thrown out.
Astronomical fees collected by plaintiffs attorneys in class actions have prompted calls for sweeping reforms of securities litigation. But one tantalizingly simple solution—the auctioning off of lead counsel status by judges—has been all but abandoned, despite statistics that show it drastically reduces lead counsel fees.
Two lawsuits filed last week in U.S. District Court in Brooklyn charge that the world’s major airlines colluded in fixing surcharge rates on air cargo as early as January 2000, and used the Sept. 11 terrorist attacks as an excuse to increase prices.
A class action lawsuit alleging price fixing has been filed against several countries and their state-controlled oil companies, targeting the governments of Angola, Norway, Oman and Mexico.
More securities class actions are going to trial, surprising attorneys who are used to seeing such cases settled discreetly outside the courtroom.
Passed over a decade ago, the Private Securities Litigation Reform Act was intended to curb what was seen as rampant abuse of the securities class action system. Although many aspects of the act have been successful, some experts say that the PSLRA has fallen short of correcting all the behaviors it was designed to prevent and have proposed radical changes to the class action system.
Enron Corp.’s workers and retirees will receive approximately $134 million under the defunct energy company’s settlement of government and employee claims, the U.S. Department of Labor announced.
Complicating the increasingly thorny wrangling between Roman Catholic officials and individual churches, an organization of 82 parishes in Eastern Washington is opposing a recent $45.7 million settlement offer by Bishop William Skylstad to sex abuse victims as part of the archdiocese's bankruptcy proceedings.
Shareholders are joining the ranks of consumers and politicians who have blasted hidden pornographic scenes in the video game “Grand Theft Auto: San Andreas,” filing two class actions against the game maker for artificially inflating its stock prices and illegal insider trading.
The city of Philadelphia has joined in the battle against besieged newspaper publisher Tribune Co., taking on the role as lead plaintiff in the securities class action brought against the company after it inflated circulation figures for two New York papers.
Tyco International’s plan to split the company into three entities has come under fire from shareholders, who say the plan is just an attempt to protect the company from lawsuits stemming from the 2002 accounting scandal.
More than 100 institutional investors recently opted out of a $2.6 billion class action settlement with AOL Time Warner, choosing instead to pursue individual suits against the company. Opting out is becoming more common, as institutional investors with big losses seek to bypass lengthy class action proceedings and win larger settlements.
A judge has given his preliminary approval to a $11.75 million settlement between the once-bankrupt Kmart Corporation and its former employees, who alleged the retailer forced them to invest their pension plans in the company’s now-worthless stock.
A judge has set the stage for Bristol-Myers Squibb Co. to hand out $185 million in a proposed settlement that would end a securities class action lawsuit brought by shareholders over an experimental heart drug the company touted as a future blockbuster, which later proved to be potentially fatal.
In a legal strategy seen as aggressive even by the standards of the class action plaintiffs bar, the institutional shareholders who opted out of last year’s $2.6 billion settlement offer are seeking a whopping $3.3 billion in their renewed assault on media giant AOL Time Warner.
Plaintiffs firm Bernstein Litowitz Berger & Grossman has pulled off a major coup with its shareholder lawsuit against crumbled futures broker Refco after being named lead counsel by a New York federal judge.
Omnicare Inc., a leading provider of pharmaceutical care for the elderly, has been hit with a securities fraud class action suit filed by Lerach Coughlin Stoia Geller Rudman & Robbins LLP, claiming that the company artificially inflated its earnings by engaging in improper generic drug substitution.
The unsecured creditors committee of auto parts maker Delphi Corp. has asked a federal court to retain Jefferies & Company Inc. as its investment banker and financial adviser in a deal that could lead to a huge bonus payout for the global investment bank.