Citigroup Rolls Dice on Trial in Enron Creditor Litigation

It wasn’t just Enron Corp. that was responsible for the massive fraud that wiped out the once-mighty energy trader, creditors contend. Nearly a dozen banks also participated, they argue. And, of the 11 financial institutions accused of wrongdoing, 10 have settled for a total of $1.73 billion, upping the ante…

Jan 23, 2008 4:54 PM CST

Class Action Against Enron Banks Dies With Cert Denial

The U.S. Supreme Court has denied cert in a failed $40 billion class action by Enron shareholders who claim investment banks that advised the company helped inflate the value of the stock. The decision lets stand a ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals barring the…

Jan 22, 2008 6:28 PM CST

BigLaw Masses Troops in Subprime Feeding Frenzy

A growing tsunami of investigations, class actions and bankruptcies resulting from the U.S. mortgage meltdown has created a business boom in some BigLaw practice areas. “Skadden, Arps, Slate, Meagher & Flom alone says it has roughly 100 lawyers across the firm working on subprime-mortgage fallout for clients such as Wells…

Jan 18, 2008 9:48 PM CST

Big U.K. Firm Breaks With Tradition, Takes Case Against Bank

In a tradition-breaking move that could soon be copied by other renowned “magic circle” law firms in London, Linklaters is helping a longtime client file suit against another financial institution. It is advising Barclays Capital in a major dispute with the U.S.-based Bear Stearns investment bank, with Lawrence Byrne, co-managing…

Jan 17, 2008 11:07 PM CST

Ex-Brocade CEO Gets 21-Month Sentence for Options Backdating

A federal judge has sentenced the ex-CEO of Brocade Communications to 21 months in prison for backdating stock options. Gregory Reyes cried before receiving the sentence, the Associated Press reports. U.S. District Judge Charles Breyer also ordered Reyes to pay a $15 million fine, the Wall Street Journal reports (sub.…

Jan 16, 2008 7:02 PM CST

Enron Shareholders Could Get Chance to Distinguish Stoneridge

The U.S. Supreme Court could decide as early as Monday whether to deny cert to Enron shareholders or return the case to an appeals court, giving an indication whether the suit against Enron bankers is doomed by the Supreme Court’s ruling yesterday in Stoneridge Investment Partners v. Scientific-Atlanta Inc. In…

Jan 16, 2008 3:38 PM CST

Supreme Court Limits Investor Suits Against Third Parties

Updated: In a major ruling, the U.S. Supreme Court has decided that third parties are not liable for participating in corporate wrongdoing if they did not directly mislead investors, SCOTUSblog reports. The court ruled 5-3 in the case, Stoneridge Investment Partners v. Scientific-Atlanta. Justice Stephen G. Breyer did not participate.…

Jan 15, 2008 3:16 PM CST

No Cash Awarded, But $9.5M Fee Allowed

A federal judge in New Jersey has approved $9.5 million in attorney fees in an investor suit against Schering-Plough Corp. even though no money damages were awarded. U.S. District Judge Katharine Sweeney Hayden said fees were justified because the company agreed to changes in its corporate governance, and the litigation…

Jan 15, 2008 11:44 AM CST

Hynes Criticized in NY City Bar Prez Race Over Milberg Connection

A renowned trial lawyer running unopposed to serve as the president of the New York City Bar Association is being targeted for criticism because of her reluctance to discuss her longtime prior job at a law firm that is now under indictment. Patricia Hynes, a former federal prosecutor who is…

Jan 11, 2008 8:43 PM CST

$4B BOA-Countrywide Deal Price Tag Doesn’t Include Legal Woes

Bank of America Corp.’s newly announced deal to buy Countrywide Financial Corp. likely could cost considerably more than the $4 billion purchase price. That’s because BOA is taking on a lengthy list of legal issues faced by Countrywide, the nation’s largest mortgage lender, as part of the deal, according to…

Jan 11, 2008 6:53 PM CST

Lawyer Says Subprime Suits Could Be ‘Bigger Than Enron’

A lawyer at a well-known British firm says a wave of lawsuits being filed over subprime mortgage issues could eventually exceed the scope of the litigation over the infamous Enron debacle. “In terms of the potential numbers of lawsuits, the subprime crisis could be bigger than Enron,” Tim House, an…

Jan 11, 2008 4:49 PM CST

Ex-GC to Be Sentenced this Month for Insider Trading

The former general counsel of semiconductor maker Amkor Technology Inc. faces up to five years in prison when he is sentenced Jan. 28 for insider trading. At one time, Kevin Heron was in charge of insider trading compliance for the company. But he was convicted July 19 based on evidence…

Jan 8, 2008 1:19 PM CST

Seventeen Percent

Jan 1, 2008 4:53 PM CST

Subprime Problems Boost Securities Class-Action Suits

The subprime mortgage debacle is fueling an increase in shareholder class-action lawsuits. Two reports have reached that conclusion, despite some differences in the numbers reported. The New York Times reports that 198 class actions were filed through Dec. 15, an increase of 58 percent over last year, citing a study…

Dec 21, 2007 12:38 PM CST

Refco Lawyer’s Indictment ‘a Wake-Up Call’

The indictment of a Mayer Brown partner in connection with the collapse of Refco has some transactional lawyers worried. Some saw the indictment of Joseph Collins as an indication that other transactional lawyers could face legal problems for their representation of clients in initial public offerings, the New York Law…

Dec 20, 2007 1:38 PM CST