• legal

    Jury Rules Jeffrey Gundlach Used Trade Secrets Snuck Out Of TCW In Secretary’s Bra, Though Not In A ‘Malicious’ Way

    “Gundlach was found today to have breached his fiduciary duty to TCW and misappropriated its trade secrets.The Los Angeles jury awarded the company no damages on the breach claim…The jury found that Gundlach and DoubleLine didn’t act willfully and maliciously in misappropriating trade secrets.” [BW, earlier]

    / Sep 16, 2011 at 2:47 PM
  • Auction Rate Securities, Credit Suisse, legal

    Credit Suisse Sued, Brokers Called Corrupt

    A microchip maker is suing Credit Suisse, alleging the Swiss bank put $450 million into auction rate securities without authorization and made threats of retaliation when the company demanded its money and threatened to sue. “Rather than siding with customers who had been victimized, Credit Suisse Group aligned itself with its wholly owned subsidiary Credit […]

    / Aug 7, 2008 at 3:28 PM
  • legal

    Sketchy Philadelphia Scammer Girl Gets House Arrest

    We might not have the boys of the Plotkin plot to kick around anymore, but we still have Edward Anderton, the University of Pennsylvania economics graduate who got into trouble when he and his buxom girlfriend Jocelyn Kirsch went on an identity-theft crime spree. The other day, Anderton pleaded guilty to six counts of conspiracy, […]

    / Jun 6, 2008 at 12:27 PM
  • legal

    Securities Class-Action Lawyer Headed To The Big House

    Securities class-action laywer Melvyn Weiss was sentenced today to 30 months in prison by a federal district judge in Los Angeles for his role in concealing illegal kickbacks to plaintiffs. Weiss was a partner at Milberg Weiss, which is now called Milberg in an attempt to remove the stain of its former partner’s legal scandals. […]

    / Jun 2, 2008 at 3:31 PM
  • Citigroup, legal

    Why Did This Citigroup Trader Go To Jail?

    The power of federal prosecutors is on gruesome display in the latest issue of Fortune, which chronicles the story of former Citigroup commodities trader Craig Gile who found himself jailed for allegedly cooking the books at his trading desk. The strongest evidence against him is that he seems to have corrected some reports that overstated […]

    / Jun 2, 2008 at 10:48 AM
  • Auction Failure, Auction Rate Securities, legal

    Do Auction Rate Securities Lawsuits Really Face Tough Hurdles?

    Lawyers in the two dozen or so proposed class action suits filed in connection with the failure of the auction rate securities markets may be “unable to prove their clients lost money or collect fees for themselves,” writes Bloomberg’s Thom Weidlich. We’re not so sure the defendant broker-dealers and issuers in these cases should be […]

    / May 28, 2008 at 2:23 PM
  • legal, Microsoft, Yahoo

    Yahoo’s Google Hug Defense: Is That Legal?

    The key to Yahoo! chief Jerry Yang’s apparently successful attempt to avoid being Microserfed was the threat to enter into a partnership with Google. Under the proposal, Yahoo! would outsource to Google important paid search terms, a move that struck many as all but admitting that Yahoo was incompetent at monetizing search terms and that […]

    / May 5, 2008 at 10:23 AM
  • Auction Failure, Auction Rate Securities, legal

    Morgan Stanley Sued Over Auction Rate Securities

    More auction rate securities lawsuits are hitting the courts. A lawsuit was filed today in federal court in Manhattan alleging that Morgan Stanley “deceptively marketed” auction-rate securities as cash alternatives, Market Watch is reporting. “Instead of disclosing the true nature of ARS and the substantial liquidity risks associated with them, Morgan Stanley continued to push […]

    / Mar 25, 2008 at 2:21 PM
  • Bear Stearns, legal

    Bear Stearns Lawsuits Already Getting Filed

    One thing that was clear to everyone involved in the deal for JP Morgan Chase to take over Bear Stearns was that there would be lots of litigation. The unusual features of the deal—including JP Morgan’s option to buy the Bear Stearns headquarters even if the deal doesn’t close, the non-solicitation clause, and the option […]

    / Mar 18, 2008 at 11:29 AM
  • Bear Stearns, legal

    Bailing Out Bear’s Creditors?

    Angry Bear Stearns shareholders and class-action lawyers eager to represent them in the inevitable lawsuits of Bear’s sale to JP Morgan Chase are already sounding off against the deal. As soon as the deal was announced, a Bear Stearns investor asked JP Morgan executives “Why is this better for shareholders of Bear Stearns than a […]

    / Mar 17, 2008 at 2:46 PM
  • Banks, Greg Fleming, legal, Merrill Lynch

    Merrill Lynch’s Greg Fleming: Sources Say No Legal Trouble Ahead

    View image There are gray storm clouds hanging over Wall Street this February but Merrill Lynch’s Greg Fleming appears to be weathering the storm. The Securities and Exchange Commission has initiated a formal investigation into whether the brokerage knew more than it revealed to shareholders about the value of its subprime investments prior to announcing […]

    / Feb 19, 2008 at 12:20 PM
  • Banks, Greg Fleming, Lawyers, legal, Merrill Lynch

    Will Fleming’s Grasp On High Office At Merrill Lynch Be Undone By Justice’s Criminal Investigation?
    Legal Experts Doubtful, But The Rumors Persist

    Wall Street abounds with speculation that Greg Fleming, who has managed to hold on to his position as sole president of Merrill Lynch through a whirlwind of management changes, might finally be facing a challenge that could shake him out of his elevated position. Fleming’s presidency has endured the worst losses in the history of […]

    / Feb 13, 2008 at 3:45 PM
  • legal

    How Do You Spell Trouble For Wall Street? M-A-R-T-I-N.

    The rule that all business failures become criminal matters is bearing out in the subprime mess. Yesterday we learned of an FBI probe. (Gary Weiss expertly dissects it over on Portfolio.) This morning we learned that New York Attorney General Andrew Cuomo’s office is considering employing the ancient and dreaded Martin Act against Wall Street. […]

    / Jan 31, 2008 at 4:17 PM
  • Banks, Bear Stearns, Citigroup, Goldman Sachs, legal, Merrill Lynch, Morgan Stanley

    The Mysterious Fourteen

    So who is on this list of 14 companies under investigation by the FBI for their involvement in the subprime mortgage crisis? The FBI apparently intends to keep us in suspense because they won’t give details. All we know is that they are looking into “allegations of fraud at various stages of the mortgage process, […]

    / Jan 31, 2008 at 10:05 AM
  • legal, Stoneridge

    Stoneridge: A Victory For Investors

    The Supreme Court’s decision in the case known as Stoneridge is probably one of important securities law rulings in years. The ruling today declared that fraud claims brought under federal securities laws are not allowed against third parties—investment bankers, vendors, accountants, lawyers—that did not mislead investors but did business with companies that did. Already self-styled […]

    / Jan 15, 2008 at 3:17 PM
  • legal, Stoneridge

    Stoneridge: Court Slaps Down Scheme Liability

    Breaking: The Supreme Court ruled against scheme liability in the closely watched Stoneridge case. The result is a blow to self-styled shareholder advocates and their friends in the plaintiff’s bar but ultimately a win for actual shareholders who faced losses from a potential litigations explosion under the scheme liability theory. Here and hear (heh) are […]

    / Jan 15, 2008 at 10:47 AM
  • legal

    The Latest Wall Street Shakedown

    How long did you think it would take? Business headlines always wind up in the office of a prosecutor. And so, this morning we learn that New York Attorney General Andrew Cuomo is st\arting a probe of Wall Street firms and their roles in the sub-prime mess. Wall Street Firms Are Subpoenaed [Wall Street Journal]

    / Dec 5, 2007 at 10:25 AM
  • Amaranth, JPMorganChase, legal

    Amaranth’s Suit Against JP Morgan: This Is Only The Start

    We noted in yesterday’s Opening Bell that Amaranth had filed a lawsuit against JP Morgan, claiming the bank undermined its efforts to stave off collapse. We’re late to the details of the lawsuit because we were overtaken by events yesterday but we’ve now had a chance to review the lawsuit. Amaranth’s main claim is that […]

    / Nov 15, 2007 at 8:42 AM
  • Jeffrey Epstein, legal, sex

    Jeffrey Epstein’s Lawyers Continue To Smear The Girls of Palm Beach
    Also Talking About A Class Action Style Settlement Fund

    The lawyers for admitted sex-offender Jeffrey Epstein are girding their loins for the flood of lawsuits they expect from young women who may claim to have been victimized by Epstein in his pursuit of erotically charged massages. First things first: make sure you tag the girls as little junkie sluts who are just out for […]

    / Oct 15, 2007 at 11:47 AM
  • legal, Stoneridge

    More On Stoneridge, Scheme Liability And Shareholder Suits

    We’ve allowed our concern over the possible fate of shareholder proxy access rules to take a back seat over the last couple of days to our following the Stoneridge case. You know, the one about whether shareholders of one company can bring a securities law fraud case against another company on the theory of”scheme liability.” […]

    / Oct 10, 2007 at 3:54 PM
  • Banks, Bear Stearns, legal

    The Criminalizing of Business Failure: Bear Stearns Edition

    You knew this was coming. Apparently US prosecutors are investigating the two failed Bear Stearns hedge funds. The U.S. attorney in Brooklyn requested that Bear Stearns turn over information on the two failed funds hedge funds, whose failure cost investors $1.6 billion, said these people. This is just the beginning of course, no one has […]

    / Oct 5, 2007 at 2:33 PM
  • Hedge Funds, legal, Regulators

    Fishy Hedge Fund Gets Hooked By CFTC

    Piranhas are nasty little fish known for their sharp teeth and an aggressive appetite for meat and flesh. And today the Commodity Futures Trading Commission announced that it had hooked one of the little buggers. In a case first brought by the the CFTC in May, a federal court in California has fined Robert Joseph […]

    / Sep 26, 2007 at 1:36 PM
  • Amaranth, Brian Hunter, Hedge Funds, legal, Regulators, Solengo Capital

    Brian Hunter Sued—By The CFTC!

    It looks like Brian Hunter is getting his way. Yesterday his lawyers asked a federal court to block an energy regulator, the Federal Energy Regulatory Commission, from filing a lawsuit against him on the grounds that it was infringing on the jurisdiction of another regulator, the Commodity Futures Trading Commission. This morning the CFTC responded […]

    / Jul 25, 2007 at 1:32 PM
  • Islam, legal

    A Mighty Lawsuit

    Mariane Pearl (pictured), famous for reenacting events in Angelina Jolie’s films, is suing Pakistan’s largest bank for funding an “Islamic charity” allegedly connected to her husband’s death. Habib Bank maintained accounts for Al Rashid Trust, which is considered the United Way for terrorists, ensuring every cave (“command center”) has a set of unoxidized monkey bars […]

    / Jul 19, 2007 at 9:37 AM
  • Companies, Dow Jones, insider-trading, legal, News Corp, SEC

    Dow Jones Director Gets Wells Notice From SEC
    Lawsuit For Insider In Dow Jones-News Corp Deal On Its Way

    We got so caught up in the excitement over the board of directors, Bancroft family, Rupert Murdoch, News Corp drama that we’d totally forgotten about the insider trading angle to this story. But fortunately we have the Securities and Exchange Commission to remind us that prior to the public learning of the deal, a Hong […]

    / Jul 18, 2007 at 4:38 PM
  • KPMG, legal

    Case Dismissed! Judge Kaplan Dismisses Charges Against 13 KPMG Defendants

    The federal judge in the tax shelter case against former KPMG executives dismissed the charges against 13 of the defendants. In a 64-page opinion, Judge Lewis Kaplan wrote that he had “reached this conclusion only after pursuing every alternative short of dismissal and only with the greatest reluctance.” A little over a year ago, Kaplan […]

    / Jul 16, 2007 at 1:11 PM
  • Hedge Funds, legal

    A Picture Is Worth $400 Million Words

    Michael Berger, the former Manhattan Investment Fund manager who hightailed it out of New York in 2002 after pleading guilty to $400 million in securities fraud but before he could be sentenced will “most probably” face indictment in Austria, prosecutors said today. Berger, arrested in Austria last week, previously admitted to lying about hundreds of […]

    / Jul 11, 2007 at 3:10 PM
  • KPMG, legal

    The KPMG Case: Does Dismissal Go Far Enough?

    The Wall Street Journal’s editorial page comes out swinging against the prosecution in the now infamous KPMG tax shelter case. After a long list of the abuses, usurpations and creative legal theorizing by the prosecutors, the editorial page calls for the judge in the case to dismiss the charges against the defendants, who are former […]

    / Jul 10, 2007 at 11:40 AM

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