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Sep 18, 2014

Bank of Montreal is sued over Tom Petters’ Ponzi scheme

By Jonathan Stempel

(Reuters) – Bank of Montreal was sued on Thursday by a trustee liquidating two Florida funds that claimed to have lost money in a Ponzi scheme operated by Minnesota businessman Thomas Petters.

The lawsuit seeks to recoup $23.6 billion, more than six times the estimated $3.65 billion size of Petters’ fraud, based on sums transferred by Petters over five years to an account at Marshall & Ilsley Bank, which Bank of Montreal now owns.

Sep 18, 2014

U.S. exporter Saba admits deceiving Ex-Im Bank for loan guarantee

NEW YORK, Sept 18 (Reuters) – Saba Inc, a Memphis,
Tennessee-based exporter, has agreed to pay $3.5 million to
settle U.S. charges that it committed fraud in obtaining a loan
guaranteed by the Export-Import Bank of the United States to
finance construction of a retirement complex in western Turkey.

The U.S. Department of Justice said on Thursday that Saba
admitted, and accepted responsibility for, misleading Deutsche
Bank and the Ex-Im Bank about how much of the $38.1 million loan
would be spent on “local costs” and whether the retirement
complex developer would make a down payment, without verifying
the information.

Sep 18, 2014

Iraq loses U.S. appeal in U.N. oil-for-food lawsuit

NEW YORK, Sept 18 (Reuters) – A U.S. federal appeals court
on Thursday rejected Iraq’s effort to sue dozens of companies
for allegedly conspiring with the Saddam Hussein regime to
subvert the United Nations’ oil-for-food program and deprive
Iraqi citizens of humanitarian aid.

By a 2-1 vote, the 2nd U.S. Circuit Court of Appeals said
Iraq’s government could not recoup damages under a U.S.
anti-racketeering law over Hussein’s effort to defraud the U.N.
program, despite repudiating that effort and his regime’s
legitimacy.

Sep 18, 2014

Iraq loses U.S. appeal over U.N. oil-for-food program suit

NEW YORK (Reuters) – A divided U.S. federal appeals court on Thursday rejected Iraq’s effort to sue dozens of companies for allegedly conspiring with the Saddam Hussein regime to frustrate the United Nations’ oil-for-food program.

By a 2-1 vote, the 2nd U.S. Circuit Court of Appeals in New York said Iraq’s government could not recoup damages under a U.S. anti-racketeering law because it remained accountable for the Hussein regime’s effort to defraud the U.N. program, despite having repudiated that effort and the regime’s legitimacy.

Sep 17, 2014

SEC imposes record $16 million penalty on Latour high frequency firm

NEW YORK (Reuters) – High frequency trading firm Latour Trading LLC agreed to pay a record $16 million penalty to settle U.S. Securities and Exchange Commission charges that it consistently held too little capital to support its trading activity.

The SEC on Wednesday said the civil penalty against New York-based Latour is 40 times larger than the previous high of $400,000, imposed in 2004, for violating a rule requiring broker-dealers to maintain minimum levels of net capital.

Sep 16, 2014

U.S. court throws out VirnetX $368 million patent award versus Apple

By Jonathan Stempel

(Reuters) – A federal appeals court on Tuesday threw out a jury order requiring Apple Inc to pay VirnetX Holding Corp $368.2 million (226 million pounds) in damages for infringing four patents concerning technology for providing security over the Internet.

Shares of VirnetX plunged as much as 59.8 percent after the U.S. Federal Circuit Court of Appeals in Washington ordered a new trial, and said the damages award was based on defective jury instructions.

Sep 16, 2014

U.S. court throws out VirnetX $368 mln patent award vs Apple

Sept 16 (Reuters) – A federal appeals court on Tuesday threw
out a jury order requiring Apple Inc to pay VirnetX
Holding Corp $368.2 million in damages for infringing
four patents concerning technology for providing security over
the Internet.

Shares of VirnetX plunged as much as 59.8 percent after the
decision by the U.S. Federal Circuit Court of Appeals in
Washington. The company and its lawyer did not immediately
respond to requests for comment.

Sep 16, 2014

Tech specialist at U.S. law firm charged with insider trading

NEW YORK, Sept 16 (Reuters) – An information technology
employee at a major U.S. law firm was arrested on Tuesday on
charges that he engaged in an insider trading scheme that
enabled him to earn nearly $297,000.

Dmitry Braverman, a former senior information systems
engineer at Wilson Sonsini Goodrich & Rosati, was charged with
one count of securities fraud in a criminal complaint filed in
New York. He was arrested in San Mateo, California, early
Tuesday morning, an FBI spokesman said.

Sep 15, 2014

Tesla prevails in top Massachusetts court over direct sales

Sept 15 (Reuters) – Massachusetts’ highest court on Monday
threw out a lawsuit seeking to block Tesla Motors Inc
from selling its luxury electric cars directly to consumers in
the state, enabling it to bypass traditional dealerships.

The state’s Supreme Judicial Court unanimously concluded
that the Massachusetts State Automobile Dealers Association and
two dealers lacked standing to block direct Tesla sales under a
state law designed to protect franchise owners from abuses by
car manufacturers.

Sep 12, 2014

Pfizer, Ranbaxy win dismissal of lawsuit over generic Lipitor

Sept 12 (Reuters) – Pfizer Inc and India’s Ranbaxy
Laboratories Ltd on Friday won dismissal of an
antitrust lawsuit accusing them of conspiring to delay sales of
generic versions of the cholesterol drug Lipitor, the
best-selling drug in history.

U.S. District Judge Peter Sheridan in Trenton, New Jersey
ruled that the plaintiffs, retailers and distribution companies
that bought Lipitor directly from Pfizer, failed to plead their
case with enough detail.

    • About Jonathan

      "I cover legal and regulatory matters, and am based in New York. I have covered banking, finance, Warren Buffett and corporate bonds."
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