Securities Law

Recusal Watch in Investor Case

Court watchers are waiting to see which U.S. Supreme Court justices participate in a pending case that could determine whether lawyers and other third parties can be sued for helping companies commit securities fraud. Chief Justice John G. Roberts Jr. and Justice Stephen G. Breyer have indicated they will recuse…

Aug 20, 2007 12:06 PM CDT

SG Files Brief in Investor Case

The U.S. solicitor general has filed an amicus brief opposing expanded liability in a case that could determine the extent of exposure for lawyers and other professionals who help companies commit securities fraud. The government brief in Stoneridge Investment Partners v. Scientific-Atlanta rejected the views of the Securities and Exchange…

Aug 16, 2007 10:29 AM CDT

Akin Gump faces $4 Billion Suit

Akin Gump Strauss Hauer & Feld is facing a $4.4 billion lawsuit filed by two former hedge fund managers who claim the law firm provided bad legal advice that cost them their livelihoods. James McBride and Kevin Larson managed a series of Veras funds with more than $1 billion in…

Aug 15, 2007 10:36 AM CDT

SEC Prepares Civil Charges Against Ex-GC

The Securities and Exchange Commission is expected to file civil charges against a Silicon Valley lawyer for alleged schemes to backdate stock options at two companies. Lisa Berry is expected to face civil charges for her work as general counsel at both KLA-Tencor Corp. and Juniper Networks Inc., sources briefed…

Aug 14, 2007 10:25 AM CDT

Lawyer Seeks Arbitration Overhaul

A retired lawyer who took his dispute with his broker to arbitration has learned that potential arbitrator conflicts are not always revealed. Harley C. McDonald, a former general counsel for a construction services company, lost 80 percent of some $60 million in stock, according to the New York Times. He…

Aug 13, 2007 6:52 PM CDT

Millionaire Gets Extradition Delay

A U.S. millionaire wanted in connection with an alleged stock option backdating scheme has secured another delay in his extradition hearing in Namibia. Jacob “Kobi” Alexander, founder of Comverse Technology Inc., is seeking recusal of the judge appointed to hear his extradition case. His lawyer, Louis du Pisani, said the…

Aug 13, 2007 4:25 PM CDT

Refco Suits Depend on Pending Case

A lawsuit accusing Mayer, Brown, Rowe & Maw of aiding the collapse of commodities brokerage firm Refco could turn on a pending U.S. Supreme Court case. The suit against Mayer Brown claims the law firm helped prepare documents for false transactions that covered up fraud, according to a column in…

Aug 10, 2007 3:16 PM CDT

New Suit Targets Refco Purchaser

The legal fight over responsibility for the failure of commodities broker Refco has taken another turn, as a plaintiff now becomes a defendant. A lawsuit by a Refco trustee contends that Thomas H. Lee Partners LP became aware of problems at Refco but covered them up so it could sell…

Aug 9, 2007 6:26 PM CDT

A Bitter Japanese Poison Pill

Japan’s Supreme Court has affirmed a company’s right to mount a poison-pill defense to a corporate takeover. The court ruled for Bull-Dog Sauce Co. in a suit by a hedge fund trying take over the company, the Wall Street Journal (sub. req.) reports. In poison-pill plans, the targeted company makes…

Aug 8, 2007 3:53 PM CDT

CEO Convicted in 1st Backdating Case

Updated: In a result seen as a major victory for federal prosecutors, a jury in San Francisco today convicted the former CEO of Brocade Communications Systems Inc. of securities fraud in the first criminal stock options backdating case to go to trial. Today’s conviction of Gregory Reyes, 44, on 10…

Aug 7, 2007 10:06 PM CDT

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