Lawsuits

  • 27 Jul 2011 at 1:26 PM

Dick Fuld Not Done With Lehman Lawsuits Just Yet

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Remember when Lehman went bankrupt? Good times. The thing about that was that pretty much right up until the minute Lehman filed, people like Dick Fuld and Erin Callan were going around saying things like “we stand extremely well capitalized to take advantage of these new opportunities” and “[w]e have maintained our strong liquidity and capital profiles even in this difficult environment.”

Knowing what happened next, some people thought that was kind of fucked up of them. And so a team of spoilsports including among other luminaries the Northern Ireland Local Government Officers’ Superannuation Committee sued Fuld, Callan, Joe Gregory, and a bunch of enablers like Ernst & Young (Lehman’s auditors) and UBS (who underwrote a lot of Lehman structured note offerings).

Today a federal court ruled on a motion to dismiss. It’s mostly bad news for Fuld, Callan & co., as the court let the lawsuit proceed on most of the important claims, including claims that Lehman misrepresented its net leverage using “Repo 105” transactions, lied about its “strong risk management culture with regard to the setting of risk limits” by repeatedly exceeding those limits, and misrepresented its credit-risk concentration in real estate.

But some bits of the ruling should make the ex-Lehman crowd happy: Read more »

  • 22 Jul 2011 at 10:52 AM

TCW v. Gundlach Trial Will Not Include ‘Gang Bang My Face’

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In December 2009, bond guru and self-described “genius” Jeffrey Gundlach quit TCW to start his own firm, DoubleLine LLC. When he left, his former employer alleges, he took with him TCW staff, client information, and technology, which form the basis of their suit against JG (who prefers to be called “The Pope”) that is set to go to trial July 25. What Gundlach did not take with him and instead left in his office for TCW to find was a cornucopia of drugs, paraphernalia, toys and porn that gave the impression he was operating a online wholesale sex shop distributor and keeping the inventory at work. The stash included: Read more »

  • 18 Jul 2011 at 5:01 PM

Walter Noel’s Daughter Apparently Failed To Get Bernie Madoff’s Advice On How To Run A Scam For Years Without Anyone Catching On

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Remember Marisa Noel Brown? She’s the youngest daughter of Fairfield Greenwich Group founder Walter Noel, whose role in the Madoff scam resulted in the family being kicked out of their country club and being forced to sell their share of a private jet. As her husband was a FGG employee at the time the shit hit the fan back in December 2008, and would likely find it difficult to find a position at a new firm what with the taint of his father-in-law-/Madoff, it appeared lucky that Marisa had started a jewelry company with her friends several months prior, which meant she could not only provide for her children, but provide hope that the Noels could again one day be known as successful, hardworking businessmen and ladies. Which is why this lawsuit claiming MNB and her partners’s model was to buy jewelry from well-known designers and then sell it as their own is not helping things. Read more »

  • 05 Jul 2011 at 1:07 PM

Dominique Strauss-Kahn Accuser Takes Issue With Prostitute Characterization

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Over the weekend, the Post ran an article claiming that the maid accusing Dominique Strauss-Kahn of sexual assault claiming that the woman was not only paid for sexual services from Sofitel guests but continued to “work as a prostitute in a Brooklyn hotel where she was stashed by prosecutors” after the initial DSK allegations. According to the maid’s lawyer such is not the case and his client will be suing the paper for suggesting otherwise. Read more »

  • 04 May 2011 at 5:03 PM

SEC Charges UBS With “Rigging At Least 100 Municipal Bond Reinvestment Transactions In 36 States”

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For any banks looking to do the same, officials describe their complaint against the Swiss bank as a “how to guide for bid-rigging and securities fraud.” Read more »

  • 03 May 2011 at 9:51 AM

The Department Of Justice Has A Surprise For Deutsche Bank (Update)

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The Germans are getting sued, today, for “years of reckless lending practices.” Read more »

  • 19 Apr 2011 at 4:10 PM

Warren Buffett, David Sokol And Berkshire Hathaway Sued By Shareholder

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Mason Kirby is not happy about the Lubrizol incident and can’t believe Buffett would allow such a thing to go down on his watch. Read more »

  • 11 Apr 2011 at 11:55 AM

Are You Not Supposed To Use Client Funds On Private Jets, Move Money Between Onshore And Offshore Accounts?

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If so, no one ever told Perry Gruss. Read more »

  • 06 Apr 2011 at 4:10 PM

Lynn Tilton Accused Of Physically, Verbally Assaulting Employees, ‘Barely Restraining’ Her Breasts

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In a lawsuit filed by a former employee Andre Wrobel, Patriarch Partners founder Lynn Tilton was accused of having a slightly unorthodox management style around the office. Before we get to the allegations (which Tilton’s attorney described as “scandalous” and “irrelevant”), we’re going to take a little quiz, aimed at business owners and those in leadership positions. Please answer the following:

1) What are some appropriate nicknames to refer to employees by:
a) sport, champ, hoss
b) buddy boy, bro, broheim
c) idiot, dumbass, hey stupid
d) dicks, fucks, assholes

2) To command the room during a meeting do you:
a) Speak loudly and clearly
b) have a rule that anyone who interrupts or plays with his/her Blackberry is thrown out
c) Sit in such a way that your crotch area is exposed to those persons who must face and address you.

3) Which of the following are okay to do to employees (circle all that apply):
* hit them
* insult them
* throw things at them
* beat them

4) What is an appropriate level of fabric when it comes to the breast area:
a) The amount found in a turtle neck
b) however much it takes to cover them completely
c) just enough so that they’re “barely restrained to the point of wiggling and moving like they are about to fall out at any minute”

5) An underling tells you something you think might be a lie. Do you:
a) Ask them some probing follow up questions
b) tell them “I don’t think you’re being honest with me”
c) wait for them to trip themselves up in the lie
d) sarcastically respond “Sure, you expect me to believe that, like I’m going to believe you’re not going to cum in my mouth!” Read more »

  • 04 Apr 2011 at 10:46 AM

Former Banker, Man Who Introduced ‘Lesbian Vampire Killers’ The World Sued For $9.2 Billion

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Up until 2009, Glen Stewart was the CEO of The International Banking Corp. The bank failed that year and while other chief executives might’ve spent a lot of timing moping around the house, wondering if they’d ever get a job in this industry again, Stewart probably remained in high-spirits, knowing that he had a fallback career in the movie-making biz, having produced ‘Lesbian Vampire Killers’ just a few months prior. Unfortunately, if there are plans to release the entire trilogy, they’ll have to be put on hold, as Stewart now must deal with the lawsuit filed against him last week by Ahmed Hamad Algosaibi & Bros, who claim the banker/auteur a) fraudulently obtained loans and b) was running a fake bank. Read more »

  • 07 Mar 2011 at 4:01 PM

Dan Loeb Subpoenas Reporters In Fight Against Fairfax Financial

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Remember the Fairfax Financial vs hedge funds bit? Five years ago, the Canadian insurer got it in its head that SAC Capital, Kynikos and Third Point conspired together to drive down the company’s stock and that part of its plan was to “spread disinformation to business journalists” who, as pawns in their game, would help disseminate the negative news re the neighbors to the north. Anyway, this thing is still going on and last month, Third Point subpoenaed a bunch of reporters though apparently had a change of heart on using their depositions. Read more »