In the U.S. District Court for the Southern District of New York, U.S. District Judge Lewis A. Kaplan has allowed some of the investor claims in the class action auction-rate securities lawsuit against broker-dealer Raymond James Financial Inc. (RJF) and its broker-dealer subsidiary to proceed. This is the first ARS…
According to Bloomberg, the sale of structured notes (also known as principal protected notes, or PPN) that come with derivatives to thousands of individual investors has driven up their sale by 58% to $31.9 billion through August. Unfortunately, investors are often lured into making such purchases without fully comprehending the…
In a split decision, the U.S. Court of Appeals for the Tenth Circuit decided that while Gemstar-TV Guide International Inc. can collect fees spent in its defense of the Oklahom securities fraud complaint filed against the company and two ex-officers by a former executive, it cannot collect legal fees it…
Assistant Professor J.W. Verret of George Mason University’s School of Law has issued a research paper that suggests a number of unique strategies that boards can use to defend against proxy access challenges. The paper is called “Defending Against Shareholder Proxy Access: Delaware’s Future Reviewing Company Defenses in the Era…
The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority and Chicago Stock Exchange Inc. proposed agreement to re-allocate certain regulatory duties that deal with firms that belong to the two self-regulatory organizations. Under the plan, FINRA is to assume specific enforcement and examination functions for common members…
The Financial Industry Regulatory Authority says that it is fining and censuring Trillium Brokerages LLC and 11 individuals $2.27 million for their involvement in an illegal high frequency trading strategy and supervisory failures. It is the first enforcement action to target this type of improper trading behavior. FINRA claims that…
According to the U.S. Court of Appeals for the Eighth Circuit, under federal securities law a broker-dealer can be liable as a control person if one of its registered representatives is involved in a Ponzi scam even if the scheme was channeled through a separate entity. The court issued its…
A Financial Industry Regulatory Authority says the SRO is investigating whether broker-dealers failed to put adequate risk-management controls in place for high-frequency traders with access to an exchange or alternative trading system. The probe comes following the flash crash last May that involved the stock markets dropping almost 1,000 points…
Calamos Asset Management, Inc., the Calamos Convertible Opportunities and Income Fund (NYSE: CHI), Calamos Advisors LLC, current trustees, and one former Fund trustee are now the defendants of a putative class action securities complaint purportedly submitted on behalf of a class of common fund shareholders. The securities fraud lawsuit is…
After two months of deliberation, a jury has found Ex-DHB Industries CEO David Brooks and Ex-DHB Industries COO Sandra Hatfield guilty of committing securities fraud, insider trading, and obstruction of justice. The two defendants allegedly made close to $200 million as a result of their scam. The jury also found…