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Category Archives: Securities Litigation

Consulting Firms Dropped from Shareholder Lawsuit against HP

Two international consulting firms that had earlier been named in a shareholder lawsuit filed against Hewlett Packard Co. have been given some respite. They have both been dropped from the lawsuit which had been filed by shareholders over HP’s disastrous acquisition of a British software firm. The two consulting firms Deloitte Touche Tohmatsu and KPMG LLP have been dropped from the shareholder lawsuit filed after Hewlett-Packard completed its acquisition of software company, Autonomy. The shareholder lawsuit was filed last November. In November last year, Hewlett Packard chief executive Meg Whitman announced that after the acquisition of Economy, the company had.... Read More >

GE Settles Shareholder Lawsuit for Forty Million

General Electric has agreed to settle a shareholder lawsuit that was filed by investors, who alleged that the company lied about its financial health during the 2008 financial crisis. The company has agreed to pay $40 million to settle the allegations. In the lawsuit filed by shareholders, the investors accused both General Electric Co. and its Chief Executive Jeffrey Immelt of lying about the company’s financial health. The lawsuit accused the company of hiding billions of dollars of bad assets from investors, and inflating the values of assets during the financial crisis. The company also inflated the value of risky.... Read More >

Novelist Patricia Cornwell Wins $51 Million in Fiduciary Duty Lawsuit

Mystery novelist Patricia Cornwell has been awarded $51 million in damages by a Boston jury, which found that her financial management company had been negligent of their fiduciary duty. The award-winning novelist won $50.9 million in damages in a federal court in Boston. She had filed a lawsuit against her former financial management company, claiming in her lawsuit that the company, Anchin, Block and Anchin LLP, and its former principal Evan Snapper had been negligent in the handling of her finances. According to the lawsuit, Snapper and his colleagues at the company made millions of dollars in profits from their.... Read More >

Barnes & Noble Founder Settles Shareholder Lawsuit

Leonard Riggio, the founder of Barnes & Noble has agreed to settle a shareholder lawsuit that alleged that he wrongfully profited by pushing the bookstore chain to buy a college textbook firm that was also owned by him. Under the terms of the settlement, Riggio, who also serves as the chairman of Barnes & Noble, will pay $29 million to settle those allegations. The shareholder lawsuit had alleged that Riggio had unfairly profited from the buyout of the textbook firm, Barnes & Noble College Booksellers in 2009. The lawsuit claims that the College Booksellers buyout was designed to unfairly reward.... Read More >

SEC’s Actions against Companies That Caused Financial Crisis Are Inadequate

Since the financial crisis broke, the Securities and Exchange Commission has acted against more than 100 people and firms whose wrongdoing contributed to the crisis. The agency crossed a milestone last week when it filed civil fraud charges against 2 former bank executives who were charged with using a loan modification scheme to ‘whitewash’ real estate loans. However, criticism that the agency is not doing enough to crack down on companies responsible for the financial meltdown, continue. The Securities and Exchange Commission insists that the agency’s record in tackling a total of 101 cases to date, shows that the agency.... Read More >

Judge Dismisses Investor Lawsuit against Bank of America

In a victory for Bank of America, a judge has thrown out a lawsuit filed by investors who wanted the bank to buy back mortgage loans underlying securities of more than $1 billion. The case Walnut Place LLC versus Countrywide Home Loans Inc. had been filed in New York State Supreme Court. The case involves home loans by Countrywide Financial Corp. Bank Of America brought out Countrywide Financial Corp. in 2008. Investors suing under the name Walnut Place filed a lawsuit in 2011 on behalf of a trust which held 6,531 loans. According to the lawsuit, Countrywide Financial Corp. made.... Read More >

SEC Seeks Power to Impose Tougher Financial Penalties

The chairman of the Securities and Exchange Commission is asking Congress for authority to impose tougher financial penalties on companies and individuals who commit fraud. Chairman Mary Schapiro sent a letter to Senators last week, asking Congress to allow changes to the current financial penalty system at the Securities and Exchange Commission. In her letter, she expressed frustration at the current laws that limit fines based on 2 methods. In one method, the penalty is limited to the equivalent of the defendant’s profits through fraud. In the other method, the Securities and Exchange Commission can levy penalties of up to.... Read More >

Del Monte, Barclays Settle Shareholder Lawsuits

Del Monte Corporation and Barclays Capital Inc. have agreed to settle shareholder lawsuits over Del Monte’s sale to an investor group. As part of the settlement, Del Monte will pay shareholders up to $65.7 million, while Barclays will pay shareholders $23.7 million. The settlement must be approved by the Delaware Court of Chancery. The shareholders had filed a lawsuit against Del Monte’s buyout by the investor group KKR & Co. The shareholders alleged that the directors on Del Monte’s board of directors breached their fiduciary duty, and that the directors purposely misled investors about the deal. Barclays is involved because.... Read More >

Chinese Company Facing Securities Fraud Probe

The Securities and Exchange Commission is investigating Hong Kong-based Longtop Financial Technologies Ltd. after the company was sued by an investor who claimed that the company had overstated profit margins. In his lawsuit, the investor, Joe Milkus, alleges that people who purchased Longtop shares between June 2009 and April suffered severe losses because the shares fell 30% at the end of April. Around this time, questions had been raised about the company’s finances. Milkus’ lawsuit has been filed in a federal court in Los Angeles. The troubles for Longtop, a software company, began on May 23, when its auditor resigned,.... Read More >

Judge throws Complaint against Boeing out after Expert Witness Backs Out

Under federal law, a judge will allow a securities fraud class action to proceed if plaintiff lawyers can provide strong facts to show that the defendant intended to deceive. Several plaintiffs’ lawyers in a securities fraud class action against Boeing, found that their overeager efforts to supply a confidential witness to prove that Boeing intended to deceive shareholders, backfired. The complaint was thrown out by the judge. The class-action lawsuit held that the company deceived investors about developments related to the production of a new jumbo jet. Judge Suzanne Conlon threw the complaint out for failing to meet pleading requirements..... Read More >

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