Securities Law

Legal Dispute Escalates With Craigslist Countersuit Against EBay

Web classified company Craigslist has filed a countersuit against eBay that claims the auction company interfered with its business operations and infringed its trademark after acquiring a minority stake in Craigslist. The suit was filed just two weeks after eBay sued Craigslist executives claiming they improperly sought to dilute eBay’s…

May 14, 2008 1:30 PM CDT

Lawyers Win Dismissal of Stock Charges Because of Prosecutor Misconduct

A federal appeals court has affirmed dismissal of stock fraud charges against two lawyers because a prosecutor withheld evidence favorable to the defense. The San Francisco-based 9th U.S. Circuit Court of Appeals said the lawyers, Daniel Chapman and Sean Flanagan, should not be retried because of the misconduct, the National…

May 12, 2008 4:52 PM CDT

Dorsey & Whitney Fires Partner as Insider Trading Probe Continues

A Canadian partner of Dorsey & Whitney has reportedly been fired by the Minneapolis-based law firm, as an insider trading probe to which the lawyer has been linked continues. Gil Cornblum, the fired partner, was a law school colleague of business consultant Stan Grmovsek, one of three individuals who reportedly…

May 9, 2008 5:20 PM CDT

Suspect in Insider Trading Probe Had ‘Connection’ to Lawyer

Canadian and U.S. securities regulators are investigating possible insider trading in a probe focused on 11 Canadian takeovers during the past two years and a Minneapolis-based law firm that advised companies involved in each deal, a Canadian newspaper says. According to Ontario Superior Court documents, the Ontario Securities Commission is…

May 8, 2008 4:08 PM CDT

Subprime Suits Face Hurdles in the Form of Two Supreme Court Decisions

Recent U.S. Supreme Court decisions may make it more difficult for shareholders suing over subprime losses to prove their claims. A lawsuit against Morgan Stanley’s chief legal officer offers the traditional kind of allegations, the New York Times reports. The action contends the company held back information about its exposure…

May 8, 2008 12:16 PM CDT

Feds Rev Up National Mortgage Fraud & Securities Probe

Federal prosecutors in at least five major cities throughout the country are reving up for a more expansive investigation of possible widespread fraudulent practices by mortgage lenders and investment banks. Prosecutors in Atlanta, Dallas, Los Angeles, New York and Philadelphia, with the help of the FBI and the criminal division…

May 5, 2008 4:11 PM CDT

House Leader Seeks Probe of Plaintiffs Firms’ Class Action Kickbacks

Updated: The Republican leader of the U.S. House of Representatives is asking the House Judiciary Committee to launch an investigation into whether it is common practice, as a convicted attorney has claimed, for plaintiffs firms to pay kickbacks to lead plaintiffs in class actions. Rep. John Boehner expects to send…

May 2, 2008 6:15 PM CDT

Backdating Derivative Suit Names Wilson Sonsini

A derivative suit that targets Brocade Communications for backdating includes the company’s law firm as a defendant. The suit claims Wilson Sonsini Goodrich & Rosati committed legal malpractice by giving its approval to backdated stock options, the Recorder reports. The suit also claims the law firm gave bad advice on…

May 2, 2008 12:35 PM CDT

Stoneridge Ruling Protects Clifford Chance in Shareholder Action

A federal judge in Philadelphia has ruled that Clifford Chance cannot be sued in a shareholders suit for advice the law firm gave to a health care finance company. The suit had claimed Clifford Chance helped executives at DVI Inc. hide financial problems. But U.S. District Judge Legrome Davis said…

May 1, 2008 3:16 PM CDT

Former COO of Monster is Charged With Backdating Violations

The former president and chief operating officer of Monster Worldwide has been charged with securities fraud and conspiracy for alleged backdating violations. The indictment claims the executive, James Treacy, conspired to backdate stock options and personally benefited from backdating, the Wall Street Journal reports (sub. req.). His lawyer, Evan Barr,…

May 1, 2008 12:22 PM CDT

SEC Sues Birmingham Mayor in Groundbreaking Case

The Securities and Exchange Commission has sued Birmingham, Ala., Mayor Larry Langford, claiming he violated securities rules for accepting more than $156,000 in undisclosed payments from a friend whose firm benefited from government fees on municipal-bond offerings and swap agreements. The groundbreaking suit (PDF) seeks to reach swap agreements, which…

May 1, 2008 12:01 PM CDT

Yahoo Director’s Honeymoon to Delay Deposition in Pension Fund Suit

Delaware Chancellor William Chandler III says he is “a bit mystified” why a Yahoo director can’t find time for a deposition before he begins a delayed honeymoon on May 4, but the judge has refused to order the official to appear for the proceeding. Director Arthur Kern says he’ll be…

Apr 30, 2008 12:45 PM CDT

FBI Expects Massive Rise in Mortgage Fraud Cases

The FBI is dealing with a deluge of new mortgage fraud cases in a real estate meltdown of unprecedented scope. At a Senate hearing earlier this week, Robert Mueller, the agency’s director, noted that the FBI now has more than 1,300 mortgage fraud investigations underway, reports the Associated Press. A…

Apr 18, 2008 7:04 PM CDT

N.Y. Attorney General Probes Marketing of Auction-Rate Securities

New York Attorney General Andrew Cuomo has subpoenaed information from 18 financial institutions about their sale and marketing of auction-rate securities. Cuomo wants to know what the Wall Street firms told consumers who bought the securities about the safety and liquidity of the investments, the Wall Street Journal reports. He…

Apr 18, 2008 11:28 AM CDT

Smaller Law Firms Benefit from Subprime Litigation

Conflicts of interest are keeping large law firms out of litigation on behalf of burned subprime investors, giving more opportunities to smaller firms that specialize in banking and finance. Peter Calamari, managing partner at Quinn Emanuel Urquhart Oliver & Hedges, told the National Law Journal that the subprime crisis has…

Apr 18, 2008 10:59 AM CDT