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Category Archives: Shareholder Disputes

Court to Decide If Halliburton Can Block Shareholder Lawsuit

Halliburton is asking the courts to decide on its appeal against allowing shareholders to file lawsuits against companies for inflating share prices fraudulently. The Supreme Court has now agreed to hear Halliburton’s case. The company is attempting to block off legal action from shareholders, who purchased stock in Halliburton between June 1999 and December 2001. According to the shareholder lawsuit, Halliburton deliberately engaged in fraudulent practices in order to inflate as share prices. The company’s liability in asbestos litigation, for instance, was deliberately understated, and the company also over projected how much revenue its construction and engineering divisions would bring.... Read More >

Hotshot CEOs Are Very Likely to Make Risky Business Decisions

Overconfident CEOs are much more likely to make the kind of risky business decisions that result in a shareholder lawsuit. According to the results of a study that was published recently in Journal of Financial and Quantitative Analysis, overconfident CEOs tend to make risky decisions like trying to focus on areas other than their core business competencies. Generally, such business decisions are very risky and fail to work. Such CEOs are also much more likely to make risky decisions in using cash to purchase or merge with other businesses. Often these decisions are made, because the CEOs believe that their.... Read More >

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 >

Luxury Homebuilder Settles Shareholder Lawsuits for $16 Million

Luxury homebuilder, Toll Brothers has agreed to settle a shareholder lawsuit for $16.2 million. The lawsuit had been filed by shareholder Milton Pfeifer in 2008, and alleged that the directors of Toll Brothers falsely told investors that Toll Brothers would be able to weather the housing market downturn. According to the lawsuit, the directors of Toll Brothers including co-founders Robert and Bruce Toll made these claims to shareholders, and went on to sell millions of shares of the company between 2004 and 2005. They profited very heavily, allegedly earning as much as $650 million from the sales of those shares..... Read More >

Bank Of America Agrees to Settle Merrill Lynch Acquisition Shareholder Lawsuit

Bank of America has agreed to pay $2.43 billion to settle a lawsuit filed by shareholders, and related to the bank’s acquisition of Merrill Lynch during the 2008 financial crisis. The lawsuit had been filed by shareholders of Bank of America, who alleged that the company and some of its executives made false and misleading statements about the financial health of both Bank of America and Merrill Lynch at the time of the acquisition. The shareholders who participated in the class-action lawsuit were those who had purchased Bank of America stock or held Bank of America stock in the fall.... 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 >

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