ABA Journal

Securities Law

1375 ABA Journal Securities Law articles.

SEC Sues Lawyers for Aiding Alleged Scheme

A civil lawsuit filed yesterday against two lawyers yesterday by the Securities and Exchange Commission may be a legal first.

The suit is apparently the first time the agency has…

Lawyer Settles Insider Trading Case

The former managing partner of Katten Muchin Rosenman’s office in Washington, D.C., has settled a case alleging he bought stock based on confidential client information.

David Schwinger agreed to return…

AIG Sues Ex-Execs

American International Group has taken over a shareholder lawsuit against two former top executives.

The insurer claims former chief executive Maurice Greenberg and former chief financial officer Howard Smith manipulated…

Glaxo Faces Suits Over Diabetes Drug

Investors in GlaxoSmithKline have filed a lawsuit in New York federal court that claims the drug company misled them about the safety of a diabetes drug.

The suit says company…

SG Gets Bush Views in Securities Case

U.S. Solicitor General Paul Clement solicited President Bush’s views before declining to file an amicus brief in a Supreme Court case brought by investors seeking to hold third parties liable…

Where’s the Brief? DOJ Doesn’t File

The U.S. Solicitor General missed a midnight deadline to file an amicus brief supporting investors who want to hold third parties directly liable for helping commit accounting fraud.

The missed deadline indicates disagreement within the government over the issue of third-party liability, the Wall Street Journal reports (sub. req.). The Securities and Exchange Commission had asked the Justice Department to file the brief.

The Supreme Court case seeks to hold third parties liable as “primary violators” for joining in transactions that allegedly helped a cable TV company inflate its financial picture.

Backdating Troubles Wilson Sonsini

Wilson Sonsini Goodrich & Rosati fired one of its partners last fall, reportedly because he failed to warn the outside company he was advising about backdating stock options.

Christopher Mitchell was fired after high-tech company Sanmina-SCI Corp. announced it had improperly backdated most stock options since 1997, according to the Recorder. Sources told the legal newspaper he was targeted for failing to pick up on the problems.

The revelation is the latest embarrassment for Wilson Sonsini. Around half of the Silicon Valley companies under scrutiny for backdating stock options were clients of the law firm, according to the legal newspaper.

Citigroup Settles Risky Advice Charges

Citigroup Global Markets Inc. will pay $15.2 million to settle accusations it misled BellSouth employees about potential investment returns.

The firm will pay $12.2 million in restitution to more than…

Ex-Enron Executive Sentenced

A federal judge refused a former Enron executive’s request for a sentence of probation yesterday, imposing a sentence of two years in prison and a $125,000 fine.

Lawyers for Kevin…

An Outside Shot at Securities Fraud

It’s too late for Enron defendants, as plaintiffs pursue ‘scheme liability’

SEC Backs Third-Party Liability

The Securities and Exchange Commission will side with investors seeking to hold third-party bankers liable for helping boost the stock price of a failing company.

The SEC has asked the…

Ex-GC Tries ‘Career Suicide’ Defense

The former general counsel of Hollinger International, accused of helping direct noncompete payments to other companies owned by company executives, is claiming at trial that he was unfamiliar with securities…

Milberg Weiss Discusses Plea Deal

Four top partners from Milberg Weiss & Bershad met with federal prosecutors in Los Angeles on Wednesday to talk about settling charges that the firm paid kickbacks to lead class-action…

Ex-GC Accused of Backdating

The Securities and Exchange Commission has filed civil fraud charges claiming the former general counsel of a California-based software maker participated in stock-options backdating.

The SEC claims former general counsel…

Lerach to Leave His Calif. Firm

Securities class-action lawyer William S. Lerach has been telling clients that he will be leaving his San Diego law firm.

Lerach has sued high-profile companies such as AOL, Enron and…

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