Securities
Greenberg Strikes Out in First Trial over Stiefel Buyout
A former Stiefel Labs employee won a $1.5 million verdict from a Miami jury on Wednesday, vindicating claims that he was duped into selling his stock at a discount before a $2.8 billion buyout by GlaxoSmithKline. The Glaxo unit is also battling SEC claims over the buyout and could face more exposure from at least three other individuals who have brought related cases.
N.Y. Judge: Delaware Plaintiffs Must Wait to Fight $20 Million BofA Deal
Bank of America shareholders who want to scuttle a proposed $20 million settlement of derivative claims arising from the bank's acquisition of Merrill Lynch have been thwarted again.
RMBS Investors Angle for ResCap Recovery
When Ally Financial's Residential Capital unit finally announced that it was filing for Chapter 11 relief on Monday, two small law firms issued announcements of their own on behalf of big bond investors with billions of dollars of potential mortgage-backed securities claims against the bankrupt lender.
Gibson Dunn Puts the Brakes on Schwab Suit Against FINRA
A judge in San Francisco ruled that Charles Schwab & Co. had jumped the gun with its federal court challenge to the FINRA's ban on mandatory arbitration agreements with brokerage customers.
Judge Sends Ohio MERS Class Action Back to State Court
U.S. District Judge James Gwin in Cleveland finally issued a decision over the weekend in an Ohio county prosecutor's case against MERS and a gaggle of big banks. But it wasn't the ruling the defendants had been waiting for.
Dimon's Corporate Mea Culpa: Will JPMorgan CEO's Candid Words About $2B Trading Loss Hurt the Company in Litigation?
One of the bank's biggest issues from a securities litigation standpoint will be disclosure. In its most recent SEC quarterly filing, made just last Friday, JPMorgan soothingly assures investors that it takes a "holistic approach" to risk management. Is this consistent with a system where--in Dimon's words--an "egregious" trade happened because it was "poorly monitored" and "poorly reviewed"?
