LexisNexis® Legal Newsroom
Former Goldman Sachs Director Ordered To Pay $13.9 Million Penalty To Settle SEC Suit

By Timothy Raub NEW YORK — (Mealey’s) A federal judge in New York on July 17 ordered a former Goldman Sachs Group Inc. director to pay a $13.9 million penalty to settle claims with the Securities and Exchange Commission that he provided inside information to a former hedge fund manager...

The Week In Securities Litigation: SEC Begins Trial In Action Against Former Goldman Sachs Employee

The Commission began trial in its action against former Goldman Sachs employee Fabrice Tourre. The case centers on the market crisis action the SEC previously resolved with his former employer. The stakes are high in this case with significant media coverage and the Commission’s reputation hanging...

Cornerstone Research Report: Securities Suits ‘Depressed’ In Year's First Half

Securities class action lawsuit filings “remained at depressed levels” during the first half of 2013 according to the latest report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. The report, entitled “Securities Class Action Filings: 2013...

The Week In Securities Litigation: SAC Capital, Steven Cohen Focus Of Enforcement Litigation

SAC Capital and Steven Cohen were the focus of securities enforcement litigation this week. Criminal wire and securities fraud charges were brought against the four primary entities that make up SAC Capital. Civil failure to supervise charges were brought against the firm’s founder, Steven Cohen...

The Week In Securities Litigationa: SEC Enforcement Program Gets A Big Win

The SEC Enforcement program got a big win on Thursday in the Tourre case when a jury returned a verdict in favor of the agency. The case is an offshoot of the settled market crisis action against Goldman Sachs. Winning the case was a must for the agency after it stumbled in the trial of earlier market...

SEC Files Market Crisis Cases Against Bank of America, UBS

The Commission filed two new market crisis cases, one in conjunction with the Department of Justice. Once action is against Bank of America, N.A. centered on the sale of interests in an entity known as BOAMS 2008-A. SEC v. Bank of America, N.A., Civil Action No. 3:130-cv-0447 (W.D.N.C. Filed August 6...

The Week In Securities Litigation: SEC Files 2 Additional Market Crisis Cases

The Commission filed two additional market crisis cases this week. One named Bank of America as a defendant. The other charged UBS Securities. The SEC also filed an insider trading action against two close friends and cases charging manipulation, breach of duty and investment fund fraud. In addition...

UBS To Pay $120 Million To Settle Claims Over Lehman Brothers Securities Losses

NEW YORK — (Mealey’s) In a New York federal court, UBS Financial Services Inc. agreed on Aug 8 to pay $120 million to settle federal securities law claims that it misrepresented the investment quality of certain Lehman Brothers securities it sold before Lehman Brothers filed for bankruptcy...

Judge Approves $730 Million Securities Settlement With Citigroup, Shareholders

NEW YORK — (Mealey’s) A federal judge in New York on August 20 granted final approval of a securities class action settlement between investors and Citigroup Inc. and others, ruling that the terms of the settlement meet the statutory guidelines ( In re Citigroup Inc. Bond Litigation , No...

SEC Prevails In Lawsuit Challenging Conflict Mineral Rules

The Commission prevailed in a dispute challenging its conflict minerals rules brought by business groups, a seemingly rare event in view of recent rulings against the agency by the D.C. Circuit on such issues. The rules were those enacted under Section 1502 of the Dodd-Frank Act which became Exchange...

SEC Files Another Investment Fund Fraud Lawsuit

Investment fund frauds continue to be a staple of SEC enforcement. This week the Commission filed another of these actions. The defendants are a former representative of a registered investment adviser and a licensed realtor. SEC v. Dearman, Civil Action No. CV-553 (N.D. Okla. Filed August 27, 2013)...

Securities Litigation Update For Aug. 9 – 30, 2013: Recent Outage At NASDAQ Focus Of Regulators

The recent outage at NASDAQ, the latest difficulty at an exchange, is a current focus of regulators. The SEC is investigating, reportedly examining the reasons a system for distributing stock quotes and prices was not adequate, according to a Reuters report (Reuters.com, Aug. 27, 2013). SEC Chair Mary...

The Week in Securities Litigation: Market Crisis Lawsuit, Olympus Case Enforcement Focus

DOJ’s market crisis suit against S&P and new charges against Olympus and a subsidiary in the UK are key focal points of securities enforcement litigation in this holiday shortened week. Responding to DOJ’s complaint, the rating agency claims it lacks merit and is driven by the fact that...

The Week In Securities Litigation: JP Morgan Settles London Whale Trading Charges

The Commission obtained its second settlement under its new policy which requires admissions in select, settling enforcement actions. This time JPMorgan settled books, records and internal control charges stemming from the so-called London Whale trading debacle. The settlement was based on admissions...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...

High Court Hears Oral Argument In Securities Fraud Class Action

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on March 5 heard oral arguments in a securities class action lawsuit seeking a determination as to whether the Supreme Court should overturn or limit its holding in Basic Inc. v. Levinson (485 U.S. 224 [1988] [ enhanced opinion available...

Norton Rose Fulbright Releases 10th Annual Litigation Trends Survey

U.S. companies increasingly concerned about regulatory investigations The number of US companies facing regulatory proceedings increased for the third consecutive year, according to Norton Rose Fulbright's 10th Annual Litigation Trends Survey . The upward trend is the result of a stricter...

DLA Piper: Expect Greater SEC Scrutiny Of Activist Hedge Funds That Share Information Or Collaborate In Advance Of Their Trades

By Perrie Michael Weiner and Patrick Hunnius A recent Wall Street Journal article – “Activist Investors Often Leak Their Plans to a Favored Few” – focused attention on “activist” investors and stock analysts who (as part of their bullish or bearish campaigns for...

This is Real Law: Risky Business: More IPOs Could Lead to More Litigation

Few public entertainers have topped the showmanship of Jean François Gravelet-Blondin. The 19th-century French tightrope walker and acrobat was famous for many astounding feats, including crossing Niagara Falls numerous times—while blindfolded, pushing a wheelbarrow, on stilts and even carrying...