Continue reading AIG Shareholder Lawsuit Tossed Out of Court

AIG Shareholder Lawsuit Tossed Out of Court originally appeared on BloggingStocks on Wed, 31 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

As with just about every impact of the financial crisis on the insurance industry, the increase in securities class action lawsuit settlements wasn't as bad as the industry expected.

According to a study by Stanford Law School and Cornerstone Research, settlements grew only 39% year over year in 2009. Insurers and reinsurers writing directors and officers insurance in the U.S. are probably relieved to see that the reality didn't reach what they feared. The number could tick higher, though, as these cases work their way through the court system.

Continue reading Insurance Industry Relieved over 2009 Securities Class Action Tally

Insurance Industry Relieved over 2009 Securities Class Action Tally originally appeared on BloggingStocks on Wed, 24 Mar 2010 14:40:00 EST. Please see our terms for use of feeds.

Tech firm Broadcom (BRCM) announced that it has agreed in principle to settle a pending class action litigation against the company and some of its current and former officers. The litigation surrounded the company's historical stock-option accounting practices, and was settled for $160.5 million in cash.

The legal action was on behalf of persons and entities that bought or acquired shares of BRCM between July 21, 2005 and July 13, 2006. The $160.5 million cash payment will result in the release and dismissal (with prejudice) of the claims against both the company and its officers and directors. In December 2006, BRCM was singled out as a company participating in backdating of stock options, an illegal practice.

Continue reading Broadcom Settles Stock-Option Dispute

Broadcom Settles Stock-Option Dispute originally appeared on BloggingStocks on Wed, 30 Dec 2009 12:40:00 EST. Please see our terms for use of feeds.

Normal tech support phone call: "Press 1 for help with e-mail. Press 2 to have your password reset."

Madoff tech support phone call: "Hello, how can I help you dummy up some trading records today?"

The investigation of Bernie Madoff's fraudulent financial empire is leading to more arrests. Jerome O'Hara and George Perez, both computer programmers employed by the Ponzi schemer, were arrested by the FBI on Friday morning. The charges include conspiracy for falsifying books and records. They are accused of doing the deed for the boss and accepting hush money -- in the form of 25% raises and net bonuses of $60,000 -- to keep the scam afloat.

Continue reading Two more arrests in Madoff saga

Two more arrests in Madoff saga originally appeared on BloggingStocks on Fri, 13 Nov 2009 18:20:00 EST. Please see our terms for use of feeds.

Finally, the federal government has accepted an offer from Girls Gone Wild founder Joe Francis. Earlier this year, the feds turned down his request for bailout money, but the filmmaker entrepreneur executive soft-core porn guru had better luck with the judiciary branch. His deal to get out of jail came through.

U.S. District Judge S. James Otero accepted a plea agreement that Francis reached with prosecutors. It will put him on probation for the next year for filing false income tax returns. He was also sentenced to time served -- 301 days, but that's all in the past. He also has to pay restitution of $250,000.

Continue reading Francis gone free: Time served, probation and restitution for soft porn mogul

Francis gone free: Time served, probation and restitution for soft porn mogul originally appeared on BloggingStocks on Sun, 08 Nov 2009 11:40:00 EST. Please see our terms for use of feeds.

All it takes is a little patience. F. Scott Yeager, a former Enron executive, got some good news from the 5th Circuit Court of Appeals in New Orleans, which ruled that it wouldn't revisit his case. So, he no longer has criminal charges related to financial fraud hanging over him. Yeager has been acquitted on all counts. This follows a June ruling by the Supreme Court, which tossed a previous 5th Circuit Court ruling that could have resulted in a new trial.

The ruling said, "Today, ... it is clear under our initial ... analysis the jury made a finding in acquitting Yeager that precludes prosecution on insider trading and money laundering." Samuel Buffone, who was one of Yeager's attorneys, stated that his client shouldn't have been indicted to begin with and didn't do anything wrong. It has taken them seven years to get to this point.

Yeager landed in hot water because he sold stock in Enron for more than $54 million before it began the plunge that would ultimately end with its bankruptcy in 2001. He faced 125 counts, was acquitted of five (four for wire fraud and one for conspiracy to commit wire and securities fraud) and wound up with a hung jury for the remaining 120, which included insider trading and money laundering. He was later indicted again on 13 counts of insider trading and money laundering.

Continue reading Former Enron exec set free

Former Enron exec set free originally appeared on BloggingStocks on Wed, 21 Oct 2009 16:40:00 EST. Please see our terms for use of feeds.

Even with the ringleader in jail, the pursuit of Bernie Madoff doesn't seem to be finished. Sunday night, the trustee who's winding down the Madoff company said on 60 Minutes that Madoff's two sons (Mark and Andrew), brother (Peter) and niece (Shana) will be slapped with a $198 million suit. They are alleged to have known about the Ponzi scheme, according to the trustee, Irving Picard and his chief counsel, David Sheehan.

Sheehan and Picard are also working under the assumption that there is still some money hidden, quite a lot of it, in fact. Picard told the show, "We'd assume it's millions and millions of dollars." Yet, this probably wouldn't help with the task in front of them.

Continue reading Madoff family to be sued for $198 million

Madoff family to be sued for $198 million originally appeared on BloggingStocks on Mon, 28 Sep 2009 10:00:00 EST. Please see our terms for use of feeds.

Abercrombie & Fitch (NYSE: ANF) is being sued by a Muslim teenager who wanted to work at an Abercrombie Kids store in Oklahoma's Woodland Hills Mall. When she applied in June 2008, Samantha Elauf was told that the hijab she wears is inconsistent with Abercrombie's "Look Policy." So, the 17-year-old took her concerns to U.S. District Court on Wednesday, where a lawsuit was filed by the Equal Employment Opportunity Commission.

A spokeswoman for the retailer wouldn't comment on the lawsuit but did indicate that the store has a strong policy around equal employment opportunity and that it accommodates religious practices "when possible."

Continue reading Muslim teen sues Abercrombie over its 'Look Policy'

Muslim teen sues Abercrombie over its 'Look Policy' originally appeared on BloggingStocks on Sun, 20 Sep 2009 15:10:00 EST. Please see our terms for use of feeds.

Across the country, college classes are starting. In each of these classrooms, students are struggling with calculus, trudging through Candide, and wondering just what the hell they're going to do with their degrees upon graduation. The last of these is characteristic of every college student, especially those of us, with the foresight fortitude recklessness zeal to major in liberal arts fields (in my case, Philosophy).

The anxiety is a bit higher this year, given a high rate of unemployment, the likelihood of a "jobless recovery" and the fact that it could take years for destroyed value to be recovered.

Continue reading 2.9 million college kids unsure of career plans

2.9 million college kids unsure of career plans originally appeared on BloggingStocks on Mon, 31 Aug 2009 14:20:00 EST. Please see our terms for use of feeds.

The war between Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) is becoming as fierce as the fight between the two monsters in the classic Japanese flick War of the Gargantuas (don't tell me you don't remember that one!).

This time, the conflict is over the duo's respective sports drinks. According to Bloomberg, PepsiCo believes that Coke has been promoting its Powerade beverage by issuing false claims against PepsiCo's Gatorade.

Continue reading PepsiCo and Coca-Cola in litigation over sports drinks -- Gatorade vs. Powerade

PepsiCo and Coca-Cola in litigation over sports drinks -- Gatorade vs. Powerade originally appeared on BloggingStocks on Tue, 14 Apr 2009 10:10:00 EST. Please see our terms for use of feeds.

Continue reading Citigroup suing a pawnshop ... seriously

Citigroup suing a pawnshop ... seriously originally appeared on BloggingStocks on Wed, 04 Feb 2009 14:30:00 EST. Please see our terms for use of feeds.

It's been the key question for Huntsman Corporation (NYSE: HUN): Deal or no deal?

Now we know. This week, the company reached an agreement with its private equity sponsor, Apollo Management, to end its $6.5 billion buyout transaction.

For the past six months, the parties have been embroiled in heated litigation with Huntsman getting the edge as the Delaware court ruled that Apollo had to use best efforts to close the deal . As a result, Apollo's settlement is not cheap. The fees come to about $1 billion.

Although, it's a good deal for both parties. Apollo could have lost even more money if the merger agreement had been enforced. As seen with the collapse of the BCE (NYSE: BCE) deal, there is no appetite for multi-billion-dollar deals. And since Huntsman is in a highly cyclical business - specialty chemicals -- it would have likely made it difficult to justify a buyout.

The dispute is far from over, though. Huntsman is still pursuing a lawsuit with its bankers -- Credit Suisse and Deutsche Bank -- on the deal. In other words, Huntsman may even snag even more money from the broken deal.

Still, Wall Street isn't too thrilled. In today's session, Huntsman's shares are down 44% to $3.27 by midday trading.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Apollo out of the Huntsman noose originally appeared on BloggingStocks on Mon, 15 Dec 2008 11:50:00 EST. Please see our terms for use of feeds.

Bank of America blows billions on Countrywide litigation originally appeared on BloggingStocks on Mon, 06 Oct 2008 08:58:00 EST. Please see our terms for use of feeds.

Continue reading Victoria's Secret trips over 'sexy'

Victoria's Secret trips over 'sexy' originally appeared on BloggingStocks on Wed, 28 May 2008 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Clear Channel (CCU) first-quarter profit soars but misses estimates

Clear Channel (CCU) first-quarter profit soars but misses estimates originally appeared on BloggingStocks on Fri, 09 May 2008 09:52:00 EST. Please see our terms for use of feeds.

I just finished reading a lively little blog piece furnished by The New York Times, City Room. It would seem that the cute Green NYC logo has come under scrutiny of the corporate lawyers at Apple Inc. (NASDAQ: AAPL). Let me just start this by saying it's my opinion that on it's face, this complaint by Apple is stupid. If this sort of thing is what it takes to keep Apple's corporate lawyers busy, the company has far too many law-schooled chair-warmers on payroll.

I won't even dissect the logo issue here for you; I'd pale in comparison to the New York Times piece. What I'd like to do is offer my services to the Apple Inc. legal department as "Solicitor for Stupid Litigation Options." I have prepared a portfolio of possible litigation opportunities. I offer it in lieu of a resume.

First, Apple should file suit against the writers of the Bible. How dare those scribes make the apple to appear such a nefarious fruit. Wasn't Eve told that someday the apple would be a symbol of universal knowledge? Umm wait, I think God did tell her that. So that means we could argue that she acted with malice of intent when she asked Adam to take a bite from the future corporate logo. However, she might then file a counterclaim against Apple, citing her first precedent use of the bitten fruit symbol. We'll have to find mitigating circumstances.

Continue reading Comparing apples to applesauce: The case of the Apple logos

Comparing apples to applesauce: The case of the Apple logos originally appeared on BloggingStocks on Sat, 05 Apr 2008 17:40:00 EST. Please see our terms for use of feeds.

eBay and MercExchange settle long-term feud originally appeared on BloggingStocks on Fri, 29 Feb 2008 14:09:00 EST. Please see our terms for use of feeds.

Back on May 17, 2007, there was another typical multi-billion dollar private equity deal. That is, The Blackstone Group L.P. (NYSE: BX) agreed to pay $81.75 per share -- a total of $7.8 billion -- for Alliance Data Systems Corporation (NYSE: ADS).

In the press release, Chip Schorr, a Senior Managing Director at Blackstone, proclaimed: "We are excited about the opportunity to work together with management and with Alliance Data's dedicated employees to help continue to grow the business and further strengthen the company's competitive position."

Well, now the deal is in shambles, with ADS's stock price trading at a lowly $41.40. This week, Blackstone indicated that it is having troubles getting regulatory approval from the Office of the Comptroller of Currency (OCC), which wants Blackstone to provide a $400 million backstop of support (in the event there is a problem with the banking segment).

Continue reading Blackstone gets served

Blackstone gets served originally appeared on BloggingStocks on Wed, 30 Jan 2008 15:46:00 EST. Please see our terms for use of feeds.

'Borat' filmmakers sued by driver's ed instructor originally appeared on BloggingStocks on Wed, 05 Dec 2007 18:09:00 EST. Please see our terms for use of feeds.

Pfizer (NYSE: PFE) is facing a number of lawsuits that say its painkiller Celebrex can cause heart attacks. Yesterday, a court threw some of those cases out. The Wall Street Journal wrote "U.S. District Judge Charles R. Breyer of San Francisco ruled that plaintiffs in the litigation haven't presented scientifically reliable evidence that Celebrex caused heart attacks or strokes when taken at a daily dosage of 200 milligrams." Pfizer says that the 200 milligram dose is the one most commonly given.

The cases involving Celebrex include over 3,000 plantiffs, and some are suing about effects of the drug at a higher dose, but the ruling is still a considerable relief for the big pharma company.

Like most drug liability cases, this one hinges on whether Pfizer knew that there were risks that the drug could cause significant problems beyond those disclosed on the labels. In that case, the amount of the dose would seem to be academic, especially for anyone who became sick.

But the court may have more wisdom than Wall Street and some plaintiffs will go unrewarded. As the tobacco companies proved two decades ago, suing big business rarely yields much reward.

Douglas A. McIntyre is an editor at 247wallst.com.

Pfizer spared from some Celebrex lawsuits originally appeared on BloggingStocks on Tue, 20 Nov 2007 08:20:00 EST. Please see our terms for use of feeds.