Securities Law

Broker Wins $1.6 M in Merrill Arbitration

An NASD securities arbitration panel has awarded $1.6 million to a broker of Iranian descent, saying that Merrill Lynch & Co. first set him up to be fired and then lied about him in an industry regulatory form, making him unemployable. The panel issued an unusually detailed eight-page decision explaining…

Jul 24, 2007 12:30 AM CDT

Google’s Top Lawyer Settles With SEC

Google’s chief in-house legal officer has agreed to pay $700,000 to settle a Securities and Exchange Commission complaint that he failed to prevent misleading accounting statements when he worked at a different company. David Drummond agreed to the settlement on Thursday, PC World reports. The charges relate to his work…

Jul 23, 2007 1:06 PM CDT

Japan Changing Corporate Rules

A two-year sentence for a Japanese fund manager who traded on inside information shows Japan’s growing resolve to police its markets. Yoshiaki Murakami received a two-year prison sentence for buying shares in Nippon Broadcasting System Inc. based on knowledge a suitor planned to acquire the company, the Wall Street Journal…

Jul 19, 2007 4:40 PM CDT

Dow Jones Director Faces SEC Action

The Wall Street Journal is reporting that a member of the newspaper’s corporate board has been notified he will likely be sued by the Securities and Exchange Commission. David Li, a Dow Jones & Co. board member, has received a “Wells notice” informing him that the SEC plans to file…

Jul 19, 2007 4:29 PM CDT

CIGNA Judge: High Fees Justified

A federal judge has approved $21.3 million in fees for plaintiffs’ attorneys who obtained a $93 million settlement in a suit against CIGNA Corp. for securities fraud. U.S. District Judge Michael Baylson of Philadelphia said the attorneys were entitled to high fees because “the amount of the settlement in this…

Jul 18, 2007 2:17 PM CDT

Ex-SEC Chairs Back Investor Suit

Two former chairmen of the Securities and Exchange Commission want to file a late brief in a U.S. Supreme Court case seeking to hold third parties accountable for corporate accounting fraud. Former SEC chairs William Donaldson and Arthur Levitt are among a group that asked for the extension yesterday, the…

Jul 17, 2007 3:48 PM CDT

SEC Probes Whole Foods CEO’s Posts

Anonymous online posts by the chief executive of Whole Foods Markets have spurred an informal inquiry by the Securities and Exchange Commission, the Wall Street Journal (sub. req.) reports. John Mackey used the pseudonym Rahodeb to cheer good financial results at Whole Foods and pillory management decisions by rival Wild…

Jul 16, 2007 6:31 PM CDT

Legal Trouble for Black’s Wife

Since Conrad Black’s trial began on March 20, his wife has been a constant presence in the courtroom. Now ,as she copes with his conviction for mail fraud and obstruction of justice, she may need to gear up for her own legal troubles. Barbara Amiel Black, a Canadian journalist and…

Jul 16, 2007 3:42 PM CDT

Firm’s Refco Work Questioned

A bankruptcy examiner says Mayer, Brown, Rowe & Maw could face legal claims for drafting documents that helped a commodities trading firm move bad debts off the books. Refco Inc. collapsed in 2005 after disclosures it used so-called “round-trip loans” to hide debts temporarily before audits or reports. Examiner Joshua…

Jul 12, 2007 8:15 PM CDT

Judge Delays Private Buyouts

Two deals to sell public companies to private investors have hit a wall in the form of Delaware Judge Leo E. Strine Jr. In two recent opinions, the chancery court judge required companies to disclose more information to shareholders about provisions of buyout deals that favored company managers, the Wall…

Jul 12, 2007 5:51 PM CDT

Suit: CEO bashed rival on message board

A document made public yesterday in a government lawsuit reveals that the person posting frequent Internet messages about Whole Foods Market and a major retailing rival was none other than the grocer’s chief executive, John Mackey. Mackey used the pseudonym Rahodeb to cheer good financial results at Whole Foods and…

Jul 12, 2007 5:13 PM CDT

SEC Asserts Hedge-Fund Authority

The Securities and Exchange Commission has adopted a new anti-fraud rule that clarifies its ability to sue hedge-fund managers who mislead investors. The new rule, which takes effect 30 days after it is published in the Federal Register, covers account managers who make false or misleading reports to investors, the…

Jul 11, 2007 6:58 PM CDT

Judge Considers Backdating Motion

The trial of the ex-CEO of Brocade Communications is continuing as the judge overseeing the proceedings considers a defense motion to dismiss the charges. Lawyers for Gregory Reyes contend the charges should be dismissed because he lacked criminal intent when he backdated stock options. They say Reyes wanted to retain…

Jul 10, 2007 4:20 PM CDT

CEO Intent Critical in Options Case

Federal prosecutors will file briefs this morning backing up their assertion that the former CEO of Brocade Communications acted with criminal intent when he authorized backdated stock options. U.S. District Judge Charles Breyer ordered the briefs on Friday after the government wrapped up its case against Gregory Reyes, the Recorder…

Jul 9, 2007 12:49 PM CDT

Stock-Options Defense Scores Points

A defense lawyer for the ex-CEO of Brocade Communications got support for his contention that backdating stock options causes no harm to companies in testimony at the San Francisco trial on Friday. Steven Catricks, an analyst for Delaware Investments, testified that investors consider it important for companies to disclose noncash…

Jul 2, 2007 1:40 PM CDT