Securities

  • August 2, 2006

    Nigerian Barge Case Grounds DOJ On Appeal

    A federal appeals court has largely overturned the convictions of four Merrill Lynch & Co. executives who were accused by the government of participating in a conspiracy to defraud Enron Corp. shareholders in the so-called Nigerian barge deal.

  • August 2, 2006

    Senate Panel OKs Credit-Rating Agency Bill

    The Senate Banking Committee approved a bill Wednesday that aims to boost competition and oversight of credit-rating firms.

  • August 2, 2006

    El Paso Corp. Settles Class Action Suit For $273M

    Natural gas provider El Paso Corporation has agreed to pay $273 million to settle a shareholder class action alleging securities fraud and the manipulation of markets.

  • August 1, 2006

    Research Analyst Hit With $2.3M Judgment

    A former research analyst has been ordered to shell out more than $2.3 million, a penalty stemming from allegations that he reaped millions of dollars from stock sales while issuing misleading reports.

  • August 1, 2006

    Former Janus Execs Accused Of Market-Timing

    The U.S. Securities and Exchange Commission has accused three former executives of Janus Capital Management LLC of violating securities laws by engaging in alleged improper market-timing and frequent trading of certain mutual funds.

  • August 1, 2006

    Van der Moolen Trader Acquitted Of Front-Running

    A federal jury on Tuesday found Robert A. Scavone, Jr., a former trader at Van der Moolen Specialists USA LLC, not guilty of trading ahead of investor orders for his own profit, a process known as front-running.

  • August 1, 2006

    Caught Cashing In Expired Options, CEO Resigns

    Embattled Brooks Automation Inc., a supplier for the semiconductor industry, has restated its earnings over a nine-year period by a whopping $64.5 million after an internal investigation found widespread “errors” in stock option grants.

  • August 1, 2006

    SEC Charges Former Daisytek Execs With Fraud

    The U.S. Securities and Exchange Commission filed a lawsuit Monday against five former executives of bankrupt office and computer product distributor Daisytek International Corp. for allegedly overstating earnings between 2000 and 2002.

  • August 1, 2006

    St. Paul Travelers Settles Bid-Rigging Charges

    In the latest chapter in the industrywide investigation into bid-rigging in the insurance industry, St. Paul Travelers Companies Inc. has agreed to cough up $77 million to settle with policyholders as well as authorities in New York, Connecticut and Illinois.

  • August 1, 2006

    SEC Puts Impath Fraud To Rest With $2M Settlement

    The former chief executive of Impath Inc., an insolvent cancer-testing company, agreed Tuesday to pay $2 million to settle civil charges brought by securities regulators, adding to the three-month prison term she was given in a parallel criminal case.

  • July 31, 2006

    CEOs Shed Stock After Bad News: Report

    Corporate boards are at fault for not reporting why chief executives sell off so much of their company’s stock—especially stock options—when times get tough, according to a report on CEO stock sales from a corporate governance group.

  • July 31, 2006

    Auditors Told To Look Out For Backdating

    An accounting oversight board established by the Sarbanes-Oxley Act has issued guidelines for auditors on dealing with the manipulation of stock option grants, in the wake of SEC investigations, shareholder lawsuits, corporate restatements and even criminal charges stemming from options backdating.

  • July 31, 2006

    Wall Street Sues Utah Over Naked Short-Selling Law

    A month after Utah legislators paved the way for hefty fines against so-called naked short-sellers with a new law, Wall Street’s prime trade association is suing the state government, saying the law illegally usurps the jurisdiction of federal regulators.

  • July 31, 2006

    Ex-Telecom Exec Settles IPO Spinning Case

    The last of five executives accused of IPO spinning has settled with New York State Attorney General Eliot Spitzer for $4.4 million.

  • July 31, 2006

    Court Bounces Slew Of Claims Against Smith Barney

    In a boost for Citigroup Inc., a federal court has tossed the majority of class action claims against the investment giant’s Salomon Smith Barney unit as the aftershocks of the 2003 mutual fund scandal continue to reverberate.

  • July 31, 2006

    Latham & Watkins Nets Federal Prosecutor

    Latham & Watkins LLP has lured to its New York litigation department a federal prosecutor whose securities and commodities fraud experience ranges from the prosecutions of Martha Stewart to the cases against former Adelphia Communications Corp. executives.

  • July 28, 2006

    Shareholders Take Aim At HCA Buyout Deal

    In a bid to block the proposed $21.3 billion purchase of HCA Inc. by three private equity firms, the hospital chain’s shareholders are taking legal action, this week filing a series of lawsuits against the nation's largest for-profit hospital operator.

  • July 28, 2006

    WorldCom's Ebbers Loses Bid To Scrap Conviction

    Former WorldCom Inc. chief executive officer Bernard J. Ebbers lost his bid Friday to have his conviction overturned, one year after being sentenced to 25 years in jail for his role in the securities fraud that brought down the company.

  • July 28, 2006

    Ex-Suncoast Chief Liable For Kickback Scheme

    A former principal and a former trader at Suncoast Capital Group Ltd. have been found liable for violating securities laws in an alleged kickback scheme between the defendants and an employee of New York Life Insurance Company Inc.

  • July 28, 2006

    SEC Settles Case Over Insider Trading On FDA Decision

    In a case that harks back to the scandal involving ImClone Systems Inc. and domestic diva Martha Stewart, the U.S. Securities and Exchange Commission has settled with a former director of drug development company Pozen Inc. and a former pharmaceutical executive who sold off shares after learning that the company's bid for a new migraine treatment would be denied by federal regulators.