D&O Liability

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On September 18, the Michigan Attorney General announced that it had reached a settlement with Comerica Bank to buy back $1.46 billion in Auction Rate Securities (ARS) from any customer who purchased ARS through Comerica.  (Click here to see the Attorney General’s press release).  This is believed to be the first settlement in which an institution agreed to buy back both retail and institutional investors’ ARS. 

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Read More Michigan Attorney General Settles Auction Rate Securities Probe With Comerica

As previously reported here, the former CEO of Brocade Communications Inc., Greg Reyes, was sentenced to 21 months in prison and ordered to pay a $15 million fine in the first criminal trial to arise out of the stock options backdating scandal. Reyes has appealed the verdict. 

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Read More Former Brocade CEO Sues Brocade Over Options Backdating Legal Fees

A petition for damages recently filed in the Circuit Court of Missouri, St. Louis County, alleges that Doe Run Resources Corporation, one of the world’s largest lead producers, its related entities, and six Doe Run officers and directors released lead and other toxic substances from the company’s metallurgical complex in Peru, injuring numerous children. 

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Read More Petition Filed Against U.S. Natural Resources Company Accusing the Company and Certain Officers and Directors of Causing Injury to Peruvian Children

In an effort to aggressively counter the recent market crisis, the United States Securities & Exchange Commission and United Kingdom’s Financial Services Authority announced today that they have temporarily banned all short-selling in financial companies. …
Read More BREAKING NEWS: SEC AND FSA Ban Short-Selling in Financial Companies

The New York Attorney General recently announced that it had reached a settlement with Fidelity Investments regarding Fidelity’s involvement with auction rate securities (“ARS”).  The settlement, which calls for Fidelity to return $300 million to its customers by the end of the year, is the first settlement reached with a downstream retail broker. 

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Read More Fidelity Reaches Auction Rate Securities Settlement With New York Attorney General

Bank of America recently announced that it has reached a settlement with the Massachusetts Securities Division concerning its involvement in the Auction Rate Securities (“ARS”) market.  (Click here for Bank of America’s press release.) …
Read More Bank of America Reaches Auction Rate Securities Settlement with Massachusetts Securities Division

New York Sate Attorney General Andrew Cuomo recently subpoenaed eight Bank of America Corp. executives as part of the state’s investigation into the sale and marketing of auction rate securities. 

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Read More New York Attorney General Subpoenas Several Bank of America Executives in Auction-Rate Securities Probe

As previously reported here, shareholder derivative litigation is currently pending against certain Brocade directors and officers in California state court and in the United States District Court for the Northern District of California.  Brocade has now agreed to hire plaintiffs’ counsel as co-counsel to represent Brocade’s special litigation committee in the derivative litigation. …
Read More Brocade Hires Plaintiffs’ Firm as Co-Counsel to Represent Special Litigation Committee

The U.S. Court of Appeals for the Second Circuit recently upheld the S.D.N.Y.’s decision to dismiss federal indictments against thirteen former KPMG executives for alleged tax-fraud after finding that federal prosecutors violated the KPMG executives’ constitutional rights. …
Read More Second Circuit Affirms Dismissal Of Indictments Against KPMG Executives

Reports indicate that state and federal regulators are now turning their attention to Fidelity’s and Schwab’s participation in the Auction Rate Securities (ARS) market. 

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Read More Regulators Probing Fidelity’s and Schwab’s Involvement in Auction Rate Securities Issues