Securities

  • November 15, 2005

    NYSE Fines Charles Schwab For Poor Control Procedures

    Charles Schwab & Co. Inc. failed to prevent investment advisors from forging checks and letters of authorization to move its customers’ assets, according to a New York Stock Exchange panel, which slapped the broker-dealer with a $1 million fine Tuesday as part of a settlement.

  • November 15, 2005

    Law Firms, Banks Nervously Eye Refco Fall-Out

    Yesterday's lawsuit against Refco's former excecutives by the commodities and foreign exchange broker's largest shareholder has law firms, banks, underwriters and accountants nervously wondering who's next.

  • November 15, 2005

    Coal Company Amends Bylaws, Pays $2.5M To Settle

    The country’s fourth largest coal company and its insurer have settled a shareholder lawsuit, agreeing to change several company governance rules and pay a $2.5 million settlement to cover plaintiffs’ legal fees.

  • November 15, 2005

    Fresh Trouble At AIG As SEC Sends Wells Notices

    Unnamed employees at insurance giant American International Group Inc. (AIG) have received notices of an impending investigation from the Securities and Exchange Commission, according to the company’s chief executive officer Martin Sullivan.

  • November 14, 2005

    U.S. Attorneys Probe Rayovac Maker

    In an unusual move, a U.S. Attorneys’ Office beat the Securities and Exchange Commission to an investigation of Spectrum Brands Inc., the consumer products maker that manufactures Rayovac brand batteries.

  • November 14, 2005

    Refco's Largest Shareholder Sues To Recover $245M

    Refco’s largest shareholder has filed a lawsuit against three former executives at the commodities and foreign exchange broker, seeking to recover $245 million that the firm claims vanished in a plot to hide losses.

  • November 14, 2005

    Bank of America Asks Judge To Toss Parmalat Suits

    Two lawsuits brought against Bank of America by the chief executive and shareholders of Italy’s Parmalat should be dismissed, a lawyer for the bank argued Monday at a hearing before a judge with the U.S. District Court for the Southern District of New York.

  • November 14, 2005

    Easy Targets: Underwriters Fork Out $8.2B+ In '05 Fraud Settlements

    A survey by Securities Law Bulletin shows plaintiffs firms are now targeting underwriters and advisors more aggressively than ever before, with nearly half of all reported securities fraud settlement dollars in 2005 squeezed from so-called third party defendants - primarily investment banks.

  • November 14, 2005

    Citigroup Trader Barred After "Squawk Box" Scandal

    An investigation by the Securities and Exchange Commission has uncovered a scheme to help day traders eavesdrop on “squawk box” conversations at Citigroup, Merrill Lynch and Lehman Brothers to profit from insider information about large institutional transactions.

  • November 11, 2005

    Gemstar Angered By Ex-CEO’s Plea Bargain

    TV Guide parent company Gemstar is scoffing at the sentence of former CEO Henry C. Yuen, who pled guilty to orchestrating a multimillion dollar accounting fraud scheme, calling it “a slap on the wrist.”

  • November 11, 2005

    Cox Mulls Efforts To Streamline Regulation

    Combining authorities charged with regulating the securities industry may be beneficial in some cases, Securities and Exchange Commission Chairman Christopher Cox said at the Securities Industry Association’s annual meeting. But he stopped short of completely endorsing the idea.

  • November 11, 2005

    Shareholders Blast Blockbuster In Class Action Suit

    Movie retailer Blockbuster’s attempt to expand its in-store and internet business has shareholders fuming, prompting a class action suit that alleges the company was not sufficiently prepared to take on as many new initiatives as it did.

  • November 11, 2005

    Three Years Later, Sarbanes-Oxley Still Hotly Debated

    Is the sharp rise in SEC actions a sign that Sarbanes-Oxley is empowering the agency - or does it merely show that fraud is just as rampant as it was before the Enron and Worldcom scandals? Experts disagree.

  • November 11, 2005

    Sovereign Battle Heats Up With Suit, NYSE Complaints

    The battle between Sovereign Bancorp and some of its largest shareholders over two acquisition deals is turning nastier by the day.

  • November 11, 2005

    SEC Targets Option Backdating In Broad Probe

    Federal regulators have quietly launched a far-flung investigation into the widespread practice of backdating stock-option grants to boost profits for corporate insiders, a practice that led to the resignation last week of top executives at the software company Mercury Interactive.

  • November 10, 2005

    Acquitted Enron Execs Indicted On New Charges

    Five former Enron Inc. executives who were acquitted after a mistrial in July have been indicted once again by a federal judge, this time on narrower charges stemming from the company’s 2001 securities fraud scandal.

  • November 10, 2005

    Bank Of America Subpoenaed In Refco Investigation

    Bank of America and several other major banks that underwrote Refco’s initial public offering have been subpoenaed in connection with the investigation into the futures broker’s collapse.

  • November 10, 2005

    Hospital Chain Slapped With Class Action Suit

    Former executives of embattled hospital chain HCA Inc. are now not only the subject of a Securities and Exchange Commission investigation, but also of a class action lawsuit alleging they made false statements to inflate the company's stock price.

  • November 10, 2005

    Fannie Mae Review Pinpoints Errors In $11B Scandal

    Mired in an $11 billion accounting scandal, mortgage-buying giant Fannie Mae has released an updated laundry list of irregularities uncovered while researching its own books.

  • November 10, 2005

    Settlement May Be Near In Mutual Fund Class Action

    A federal court has dismissed some of the claims in the class action suit against several major mutual funds, in a move that many believe may hasten the settlement of the case.