Judge Allows Most Of Government's Affirmative Defenses In AIG Takeover Suit

WASHINGTON, D.C. - A District of Columbia federal judge on Nov. 8 granted in part and denied in part a plaintiff's motion to strike affirmative defenses in a lawsuit challenging the U.S. government's takeover of American International Group Inc. (AIG), ruling that the government may make all...

JPMorgan Offers $4.5 Billion Settlement To Mortgage-Backed Securities Trustees

NEW YORK - JPMorgan Chase & Co. will issue a binding offer to the trustees of 330 residential mortgage-backed securities (RMBS) trusts that were issued by J.P. Morgan Chase and Bear Stearns, after reaching a $4.5 billion agreement with 21 institutional investors, according to a JPMorgan press release...

High Court To Hear Appeal In Securities Suit Challenging Basic Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 15 agreed to hear an appeal of a securities class action lawsuit seeking determination of whether the Supreme Court's ruling in Basic Inc. v. Levinson should be modified with regard to its presumption of reliance coming from the fraud-on-the-market...

2nd Circuit Denies Rehearing In Rajaratnam Insider Trading Case

NEW YORK - Without providing further detail, the Second Circuit U.S. Court of Appeals on Nov. 18 denied a petition for rehearing and/or rehearing en banc, which was filed by former Galleon Group head and convicted inside trader Raj Rajaratnam (United States of America v. Raj Rajaratnam, No. 11-4416,...

Judge Trims Claims In Mortgage-Backed Securities Put-Back Action

NEW YORK - A New York state court judge on Nov. 25 granted in part and denied in part a defendant's motion to dismiss a breach of contract lawsuit accusing the defendant of misrepresenting the investment quality of certain mortgage-backed securities (MBS) it securitized and sold, ruling that an investment...

Federal Judge Approves Settlement Of Receiver's Claims Against Law Firm

TAMPA, Fla. - A federal judge in Florida on Nov. 26 approved an agreement that calls for law firm Band Weintraub to pay almost $1 million to settle allegations that it helped others evade a settlement with the receiver appointed in a suit arising from Arthur Nadel's $168 million Ponzi scheme (Securities...

Bank Of America To Pay Freddie Mac $404M Over Sale Of Subprime Mortgage Loans

CHARLOTTE, N.C. - Bank of America Corp. announced on Dec. 2 that it has reached an agreement with Freddie Mac to pay $404 million "to resolve all remaining representations and warranties claims for residential mortgage loans sold to Freddie Mac through the end of 2009."

Judge Won't Dismiss Securities Claims Against Mining Company, Officers

SEATTLE - A lead plaintiff in a securities class action lawsuit against a mining company and certain of its current and former executive officers has properly pleaded falsity and scienter in making his federal securities law claims, a federal judge in Washington ruled Dec. 2 in denying the defendants'...

Judge Denies Partial Summary Judgment In SEC Enforcement Action

SAN FRANCISCO - A federal judge in California on Dec. 3 denied the Securities and Exchange Commission's motion for partial summary judgment in a securities enforcement action against the sponsors of pooled investment funds, ruling that a triable issue of material fact exists as to the each of the...

Lead Plaintiff, Lead Counsel Appointed In Securities Class Action

WASHINGTON, D.C. - A federal judge in the District of Columbia on Dec. 4 appointed a shareholder as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain of its senior officers, ruling that the shareholder has met all requirements to serve in the role (Jeff...

Final Approval Of $500M Countrywide Securities Settlement Granted

LOS ANGELES - A federal judge in California on Dec. 6 granted final approval of a record-setting $500 million securities class action settlement in three related actions against Countrywide Financial Corp. for misrepresenting the investment quality of mortgage-backed securities (MBS) it offered to investors...

Judge Signs Off On $153M Securities Settlement With Fannie Mae, KPMG

WASHINGTON, D.C. - A federal judge in the District of Columbia on Friday granted final approval of a $153 million securities class action settlement between investors and Fannie Mae and KPMG LLP, ruling that the terms of the settlement and the plan of allocation meet all statutory requirements (In re...

U.S. Bancorp To Pay $53M To Settle Repurchase Obligations With Freddie Mac

MINNEAPOLIS - U.S. Bancorp will pay $53 million in cash to Freddie Mac as part of an agreement between the parties to resolve "substantially all repurchase obligations related to representations and warranties made on loans sold to Freddie Mac between 2000 and 2008," the bank announced Dec...

Judge Dismisses Fraud Claims Against Bank Of America, Former CEO

NEW YORK - A federal judge in New York on Dec. 11 ruled that dismissal of a securities class action lawsuit against Bank of America Corp. (BofA) and its former CEO is proper because shareholders' state-law claims regarding BofA's acquisition of Merrill Lynch & Co. Inc. are precluded by the...

SEC Announces $131.8 Million Settlement With Merrill Lynch

WASHINGTON, D.C. - The Securities and Exchange Commission on Dec. 12 announced that Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $131.8 million to settle claims that it made "faulty disclosures about collateral selection for two collateralized debt obligations (CDOs) that it...

Attorneys Awarded 16 Percent Of Settlement Fund In Securities Class Action

NEW YORK - A federal judge in New York on Dec. 19 ruled that although a law firm's request for attorney fees in a securities class action lawsuit against Citigroup Inc. and others was too high, the firm is still entitled to 16 percent of the overall settlement amount (In re Citigroup Inc. Bond Litigation...

Judge Says CVS Shareholders Properly Pleaded Material Misrepresentation, Scienter

PROVIDENCE, R.I. - Dismissal of a shareholder class action lawsuit challenging the merger that brought CVS Caremark Corp. together is not warranted because the shareholders have properly pleaded a material misrepresentation and scienter in making their federal securities law claims, a federal judge in...

JPMorgan To Pay Record $1.7B To Settle Claims It Failed To Report Madoff Fraud

NEW YORK - JPMorgan Chase Bank NA has agreed to a civil forfeiture of a record $1.7 billion to settle claims that it violated provisions of the Bank Secrecy Act during its time as the primary bank for Bernard L. Madoff's massive Ponzi scheme, according to information released on Jan. 7 by federal...

Medical Device Manufacturer To Pay $30M For Role In Securities Fraud Scheme

WASHINGTON, D.C. - Medical device manufacturer ArthroCare Corp. will pay a $30 million monetary penalty to settle claims that certain of its senior executives engaged in a securities fraud scheme that bilked the company's shareholders out of more than $400 million, according to a press release issued...

Judge Denies New Trial For Former Goldman VP Convicted Of Securities Fraud

NEW YORK - A federal judge in New York on Jan. 7 denied a motion for judgment as a matter of law or, in the alternative, for a new trial filed by former Goldman Sachs & Co. Vice President Fabrice Tourre, ruling that none of Tourre's arguments in favor of his motion has any merit (Securities and...

11th Circuit Rejects Cross-Appeal In Bank Insurance Coverage Case

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 7 dismissed St. Paul Mercury Insurance Co.'s cross-appeal in a dispute regarding whether it has to cover suits brought by the Federal Deposit Insurance Corp. against a failed bank's directors and officers, determining that St. Paul does...

Judge Certifies Class In Securities Suit Against Gas And Oil Company

SANTA ANA, Calif. - A federal judge in California on Jan. 6 certified a class of investors in a securities class action lawsuit against a natural gas and oil company alleged to have issued misrepresentations in proxy statements used as part of a series of mergers in violation of federal securities laws...

High Court Invites Solicitor General To File Brief In Madoff Ponzi Scheme Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 invited U.S. Solicitor General Donald B. Verrilli Jr. to file a brief expressing the views of the United States in a securities lawsuit against a number of parties that failed to properly investigate Bernard L. Madoff's massive Ponzi scheme (Irving...

Target Directors And Officers Sued By Shareholder Over Data Security Breach

MINNEAPOLIS - A Target shareholder sued certain of the company's directors and officers in a federal court in Minnesota on Jan. 21, claiming that the directors and officers breached their fiduciary duties regarding the data security breach that took place over the recent holiday shopping season ...

Mealey's Banking & Finance - 2nd Circuit Affirms Dismissal Of Investor Suit Against Merrill Lynch

NEW YORK - A federal court properly dismissed a shareholder suit against Merrill Lynch alleging securities law violations in connection with the sale of auction-rate securities (ARS), the Second Circuit U.S. Court of Appeals ruled June 25, agreeing that the shareholder's federal, state and common...