Securities Law

Milberg Weiss Loses Dismissal Motion

Are kickbacks to lead plaintiffs in securities class actions perfectly legal? Not according to a Los Angeles federal judge. Judge John Walter refused to dismiss charges of illegal kickbacks yesterday against law firm Milberg Weiss and one of its former partners, the Los Angeles Times reports. “It seems to me…

Aug 7, 2007 1:32 PM CDT

Bank-Buying Strategy Backfires

A former Wall Street analyst who happened upon a strategy to make money from banks’ initial public offerings has been sentenced to two years in prison for using other people as fronts to help him profit. Bert Fingerhut, former director of research of Oppenheimer & Co., pleaded guilty in May…

Aug 6, 2007 6:11 PM CDT

It Pays to be Wary, as Bribe Cases Rise

Depending on where you are in the world, it might be thought of as payola. Or baksheesh. Or a backhander, among other terms. But for American companies, a bribe by any name is a bigger problem these days than it used to be. The increased focus on corporate compliance in…

Aug 6, 2007 4:13 PM CDT

Milberg Sued Over Kickback Claims

Milberg Weiss Bershad & Schulman is facing a lawsuit over allegations it paid kickbacks to plaintiffs to help it secure lead counsel status in securities class actions. The suit was filed by six class members in a number of securities suits in which Milberg Weiss served as lead counsel, the…

Aug 3, 2007 6:15 PM CDT

Taser Talks Tough, Settles Quietly

Taser International Inc. talks a tough game concerning its litigation strategy in cases brought over its controversial stun guns. “The word has gotten out: Taser doesn’t settle,” said the company’s general counsel, Doug Klint, in an April interview with Bloomberg. “Anyone who sues us is in for a fight.” But…

Aug 2, 2007 8:02 PM CDT

Backdating Class Action Tossed

A federal judge has dismissed a securities class action against Mercury Interactive, but legal troubles are not over for the company and some of its former executives. Judge Jeremy Fogel of San Jose gave the plaintiffs leave to amend the suit against the company, now owned by Hewlett-Packard, the Recorder…

Aug 2, 2007 11:33 AM CDT

Anonymous Poster Is CEO’s Wife

Whole Foods CEO John Mackey isn’t the only corporate insider using a screen name to post anonymously on a message board. In the case of Silicon Valley company Rambus Inc., the person who posted messages defending the CEO was his wife, the Recorder reports. Nancy Hughes, married to CEO Harold…

Aug 2, 2007 10:34 AM CDT

Congressmen Support Shareholders

Two Democratic congressmen have asked the U.S. Supreme Court for permission to weigh in on the side of plaintiffs seeking to hold third parties liable for corporate wrongdoing. House Financial Services Committee Chairman Barney Frank and House Judiciary Committee Chairman John Conyers Jr. asked for court permission yesterday, the Washington…

Jul 31, 2007 3:16 PM CDT

Refco Owner Sues Mayer Brown

A suit filed yesterday by a private equity firm contends Chicago-based Mayer Brown Rowe & Maw helped commodities broker Refco cover up sham loan transactions. The suit seeks $245 million in damages, Crain’s Chicago Business reports. The plaintiff, Thomas H. Lee Partners LP, was the largest shareholder in Refco before…

Jul 27, 2007 9:11 PM CDT

More Backdating Charges

The government has announced charges against three more executives as its pursuit of options backdating offenses intensifies. ABAJournal.com noted one of the cases against the ex-CEO of KLA-Tencor in a post earlier today. The Securities and Exchange Commission filed a civil suit yesterday against the former executive, Kenneth Schroeder, accusing…

Jul 26, 2007 6:11 PM CDT

Competing Shareholder Plans Advance

The Securities and Exchange Commission has voted to seek public comment on two competing proposals dealing with shareholder influence on corporate boards. At issue is whether shareholders may change corporate bylaws to allow them to advance their own director nominees. One proposal bars shareholder proposals for election bylaw changes, and…

Jul 26, 2007 3:11 PM CDT

Internal Probe Protects KLA-Tencor

An outside lawyer’s aggressive internal investigation of stock-options backdating has helped a semiconductor equipment company avoid serious penalties. KLA-Tencor agreed to a permanent injunction yesterday against violations of record-keeping laws in a civil settlement with the Securities and Exchange Commission, the Recorder reports. The SEC cited the company’s “extraordinary cooperaton”…

Jul 26, 2007 12:44 PM CDT

SEC to Vote on Shareholder Influence

The Securities and Exchange Commission is expected to vote today on whether to give shareholders more influence in the election of corporate board members. The SEC has permitted companies to bar shareholders from changing corporate bylaws to permit them to advance their own director nominees, the Wall Street Journal (sub.…

Jul 25, 2007 5:13 PM CDT

Will U.S. Class Actions Invade Europe?

American lawyers and European politicians have discovered they have a common interest in opening the door to class action litigation. Such mass tort suits require changes in the law, to permit plaintiffs with similar claims to band together. But some politicians are interested in enacting legislation to allow European class…

Jul 24, 2007 6:30 PM CDT

N.Y. Lawyer Sentenced

A New York corporate lawyer has been sentenced to 33 months in prison for his role in an insider trading scheme. Amir Rosenthal was sentenced in New York federal court on Friday, according to Dow Jones Newswires. He was a former associate at Thacher Proffitt & Wood, the New York…

Jul 24, 2007 1:50 PM CDT