D&O Liability

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UBS recently agreed to buy back $18.6B in auction rate securities (ARS) and pay $150M in penalties ($75M to the State of New York, and $75M to the North American Securities Administrators Association) to settle allegations made by the New York Attorney General and the Securities and Exchange Commission that UBS fraudulently marketed the safety of ARS to customers. …
Read More UBS Auction Rate Securities Settlement

Massachusetts Attorney General Martha Coakley recently announced a settlement with Morgan Stanley & Company (“Morgan Stanley”) to resolve allegations that Morgan Stanley sold high risk auction rate securities (ARS) to Massachusetts municipalities and presented the securities as safe investments. 

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Read More Morgan Stanley to Reimburse Massachusetts Municipalities for Auction Rate Securities

A group of Merrill Lynch entities (Merrill Lynch) recently filed a motion to dismiss a securities class action pending in United States District Court for the Southern District of New York.  The plaintiffs generally assert that Merrill Lynch failed to disclose the extent of its subprime exposure arising out of its holdings in collateralized debt obligations. 

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Read More Merrill Lynch Seeks Dismissal of Subprime Based Securities Class Action

A New York state court recently dismissed claims brought by the liquidator of a hedge fund against the fund’s accountants on the ground that the claims were barred by the doctrine of in pari delicto.  Bullmore v. Ernst & Young Cayman Islands, No. 104314/05 (June 19, 2008). 

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Read More Hedge Fund Liquidators Barred from Bringing Negligence Claims Against Auditors

As previously reported here, on January 16, 2008, a jury in the Apollo Group securities class action found that Apollo Group misled investors and held the company liable for $277 million in compensatory damages.  However, the district court recently overturned the jury’s verdict. …
Read More Apollo Group Securities Class Action Jury Verdict Overturned

Apparently prompted by investigations of other brokers and overtures from the New York Attorney General and other regulators, three more broker-dealers have announced intentions to buy back auction rate securities (ARS) or otherwise settle ARS claims. 

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Read More Auction Rate Securities: Voluntary Buy-Backs, Settlements and Settlement Reserves

Brocade Communications Systems, Inc. announced recently that it plans on pursuing claims for racketeering against 10 former Brocade officers and directors.  As previously reported on this blog, Brocade and its directors and officers have been the subjects of civil and criminal litigation for allegedly improper stock option backdating practices (click here). 

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Read More Brocade to Pursue Racketeering Claims Against Ten Former Officers and Directors