Posts belonging to Category Securities/Commodities Litigation

Zuckerberg, Facebook Directors Sued Over Excessive Pay


Mark Zuckerberg and the rest of Facebook’s board are facing a derivative suit that alleges the company is paying its directors too much, according to a Reuters report written by Johnathan Stempel (June 9, 2014).  Facebook shareholder Ernesto Espinoza filed a lawsuit in Delaware Chancery Court that said that the $461,000 paid on average to […]

Judge Who Refused To Roll Over Overruled By Second Circuit


The US Court of Appeals for the Second Circuit overruled a decision by Judge Jed Rakoff of the District Court in Manhattan, according to a New York Times article written by Ben Protess and Matthew Goldstein (June 4, 2014).   Judge Rakoff’s decision from 2011 rejected a settlement negotiated between the Securities and Exchange Commission (SEC) […]

Front-End Bonus Payments May Need To Be Disclosed


If your broker or financial adviser told you he was moving to another brokerage firm and asked you to move your account there, would you want to know if he was being paid thousands or millions of dollars to make the move?  The Financial Industry Regulatory Authority (FINRA) thinks so, and is proposing a new […]

Brokerage Firm ‘Shoots First and Asks Questions Later’


When a securities brokerage firm sues to collect the balance due under a promissory note from one of its brokers, the securities industry often views the case as close as one can get to a “slam dunk” case for the firm.  When UBS Financial Services sued former brokers James Kirwin and Joanne Meninger for amounts […]

Alternative Investments – Big Problems


According to financial advisers, do not be fooled by the recent market in stocks into believing that we are in for a continuing period of sustained low volatility.  Those advisers want you to expect lots of volatility and market corrections and to invest accordingly. In light of the foregoing, investors should adopt alternative investment strategies […]

Promissory Note Award Hits Broker-Dealer Hard


A Financial Industry Regulatory Authority (FINRA) Arbitration Panel has ordered MML Investors Services LLC to pay $1,137,923 to a California investor in connection with the sale of an unregistered security (a promissory note) issued by Diversity Lending Group, Inc. (“DLG”).  The award includes compensatory damages plus reimbursement for expert witness fees, deposition costs, and the […]

More Risks Ahead for Muni Investors


Stockton, California, the most recent U.S. city to file for Chapter 9 bankruptcy protection, has presented serious issues about whether municipal bondholders will be forced to take a “haircut” while Stockton pensioners do not. With 300,000 residents, Stockton is the largest U.S. city in history to file bankruptcy.  Stockton has total outstanding debt of over […]

Most of the Yield from Muni Bonds is Illusory


Allan S. Roth prefers low-cost diversified bond funds for investors seeking the best interest yields on their investments. Mr. Roth, the noted financial planner and Wall Street Journal contributor, periodically reviews clients’ portfolios and makes recommendations.  Sometimes the only thing a client wants to keep is the municipal bond manager who seems to be producing […]

OppenheimerFunds Pays $35 Million to Settle Charges


OppenheimerFunds  Inc. has agreed to pay more than $35 million to settle SEC charges that it  made misleading statements about two of its mutual funds during the credit crisis in late 2008.  The payments include a penalty of $24 million, disgorgement of $9,879,706, and prejudgment interest of $1,487,190. According to the SEC, Oppenheimer used total […]

Alternative Investments – Are They All They Are Cracked Up To Be?


Rising interest rates may be death to traditional bonds and bond funds, but a number of alternative investment strategies allegedly designed to protect principal in a rising interest rate environment are springing up to take their place.  It remains to be seen whether they will provide ballast when bond prices fall. For decades, bond investors […]