Investors Sue Bank Of America Over Auction Rate Securities
The true risks of Bank Of America auction rate securities. Bank of America has been named in a class action lawsuit involving auction rate securities. Plaintiffs in the suit allege brokers at Bank of America hid the true risks of auction rate securities when it sold the instruments to investors. Auction rate securities are … [Read more...]
Report Says Regions Morgan Keegan Misled Investors About Risks of its Bond Funds
Regions Morgan Keegan Misled Investors. Regions Morgan Keegan, an investment firm based in Memphis, Tennessee, has been named in several class action lawsuits filed on behalf of investors in the firm's bond funds. These lawsuits allege that Regions Morgan Keegan and other named defendants did not disclose the leveraged credit risks … [Read more...]
Madoff Sent Investors Fake Statements for More than A Decade
Bernard Madoff Did Not Purchased Any Securities for His Customers. There is no evidence that Bernard Madoff purchased any securities for his customers in the past 13 years, according to a court appointed trustee who is overseeing the liquidation of the accused Ponzi schemer's assets. According to an Associated Press report, for more … [Read more...]
Bernard Madoff Will Have to Face Investors on Thursday
He Pleads Guilty to Fraud Charges. Some of Bernard Madoff's investors want to be heard when he pleads guilty to fraud charges on Thursday. According to USA Today, federal prosecutors have heard from at least 25 investors who want a chance to tell Madoff how his alleged Ponzi scheme has forever altered their lives. Madoff - once a … [Read more...]
Madoff Prosecutors Taking A Look at Some of His Investors
Madoff Prosecutors Set Their Sites on Investors. U.S. prosecutors on the Bernard Madoff Ponzi scheme case have reportedly set their sites on some of his investors. According to The Wall Street Journal, eight such investors are among Madoff's friends, family and associates now being scrutinized by a criminal investigation. ‘Madoff’ … [Read more...]
Medtronic Investors to Settle Infuse Lawsuit
Medtronic Agreed To Settle A Class Action Lawsuit. Without admitting any wrongdoing, Medtronic Inc. has agreed to settle a shareholder lawsuit alleging the company made false and misleading statements about its Infuse Bone Graft product. According to a report from Bloomberg News, Medtronic will pay $85 million to settle the Infuse … [Read more...]
UBS Sued Over Auction Rate Securities
UBS Pushing Investors Into Auction Rate Securities. As expected, the New York State Attorney General has filed a lawsuit against Swiss banking giant UBS for allegedly pushing everyday investors into buying troubled auction rate securities. Just days later, UBS announced that it was suspending David Shulman, its U.S. fixed income unit … [Read more...]
Auction Rate Preferred Shares Leave Investors Short
Auction Rate Shares Scrutinized By Regulators. Auction rate preferred shares are the latest securities to be scrutinized by state regulators. These investment vehicles were sold by closed-end mutual funds, and lately, many investors have complained they are unable to sell their holdings, which were billed as a short-term investments … [Read more...]
Citigroup to Pay WorldCom Investors $2.65 Billion
Citigroup Agreed To Pay Investors. In one of the largest settlements arising from the corporate scandals of the past five years, Citigroup Inc. agreed Monday to pay $2.65 billion to investors who claimed the bank helped hide huge losses piling up at WorldCom Inc. In addition to the $2.65 billion for WorldCom investors, Citigroup … [Read more...]
SEC To Propose New Mutual-Fund Disclosure Rules
SEC New Mutual-Fund Disclosure Rules. The Securities and Exchange Commission (SEC) is investigating eight brokerage firms and 12 mutual-fund companies for failing to disclose sales incentives that may have influenced advice to investors, an SEC official said. SEC enforcement chief Stephen Cutler revealed the probes after an SEC … [Read more...]
Mutual Fund Scandal Has Investors Bailing Out
Mutual Fund Scandal Are Prompting Disgusted Investors. Snowballing scandals in the $7 trillion mutual fund industry are prompting disgusted investors to dump funds. While defections haven’t made much of a dent in overall fund holdings, investors are transferring millions of dollars in assets to fund firms that haven’t been tainted … [Read more...]
WorldCom To Pay $750M Fine To Investors
WorldCom Emerge From Bankruptcy. Court approval Monday of a $750 million fine against WorldCom removes the last obstacle in the company's plan to emerge from bankruptcy. U.S. District Judge Jed S. Rakoff approved the settlement that will give shareholders and bondholders who invested in the formerly Clinton based company $500 … [Read more...]
Case Shows How Firm Walked Over Investors
Bank of America Undisclosed Payment. Bank of America Corp. made an undisclosed payment to U.S. Bancorp Piper Jaffray in 1999 to publish research on Just for Feet Inc., a client that went bankrupt later that year, said people familiar with the matter. The payment came two months after the securities unit of Bank of America arranged … [Read more...]
Investors Question CEOs’ Close Ties
CEOs' Close Ties Between Two Companies. Investors who bought AT&T stock in late 1999 on the advice of Citigroup's Salomon Smith Barney brokerage can't help but wonder if they were hurt by a close relationship between two companies' boards of directors especially the CEOs. Regulators are now looking into what role, if any, … [Read more...]
Investors Accuse Grubman Of Fraud
Grubman Were Sued For Misleading Investors. Salomon Smith Barney and analyst Jack Grubman were sued Friday for allegedly misleading investors by urging them to buy stock in a now-bankrupt telecommunications company. The lawsuit, filed in federal court in Manhattan, seeks class certification for investors in Winstar Communications … [Read more...]
