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Sep 4, 2015

Walter to pay $29.63 mln in U.S. reverse mortgage settlement

By Jonathan Stempel

(Reuters) – Walter Investment Management Corp agreed
to pay $29.63 million to resolve allegations that it submitted
false claims related to a U.S. Department of Housing and Urban
Development program that insures reverse mortgages.

The settlement announced on Friday by the U.S. Department of
Justice resolved claims that Walter violated the federal False
Claims Act through its servicing of mortgages insured under
HUD’s Home Equity Conversion Mortgages program.

Sep 4, 2015

Pennsylvania teacher fired after blog posts cannot sue: U.S. court

By Jonathan Stempel

(Reuters) – A high school English teacher who claimed she was fired for making derogatory comments about her students on her blog cannot sue her Pennsylvania school district for violating her free speech rights, a divided federal appeals court ruled on Friday.

By a 2-1 vote, the 3rd U.S. Circuit Court of Appeals in Philadelphia said the Central Bucks School District’s interest in educating its students outweighed the First Amendment rights of Natalie Munroe, the fired teacher.

Sep 3, 2015

Sanofi’s Genzyme pays $32.59 million in criminal Seprafilm case

By Jonathan Stempel

(Reuters) – Genzyme Corp agreed to pay $32.59 million, admit wrongdoing and enter a deferred prosecution agreement to resolve U.S. criminal charges over its marketing of the surgical implant Seprafilm, the Department of Justice said on Thursday.

The biotechnology unit of French drug company Sanofi SA (SASY.PA: Quote, Profile, Research, Stock Buzz) was accused of two misdemeanor counts of violating the federal Food, Drug and Cosmetic Act from 2005 to 2010 by allowing Seprafilm to be adulterated and misbranded while being sold. Sanofi bought Genzyme in 2011.

Sep 3, 2015

Wilmington Trust fraud lawsuit is now a class action

By Jonathan Stempel

(Reuters) – Former Wilmington Trust Co shareholders may
pursue their securities fraud lawsuit over mounting loan losses
that led to the company’s discounted sale to M&T Bank Corp
as a class action, a Delaware federal judge ruled on
Thursday.

U.S. District Judge Sue Robinson in Wilmington agreed with
the plaintiffs that there is a common means to calculate damages
from Wilmington’s alleged concealing of several hundred million
dollars worth of troubled construction loans and commercial
mortgages in 2009 and 2010.

Sep 2, 2015

Taberna Capital pays $21.5 mln to settle SEC charges

By Nate Raymond and Jonathan Stempel

(Reuters) – A Philadelphia investment advisory firm has
agreed to pay $21.5 million to settle U.S. Securities and
Exchange Commission civil charges that it fraudulently retained
fees belonging to collateralized debt obligation clients.

The SEC on Wednesday said Taberna Capital Management kept
over $15 million in fees in connection with restructuring
transactions even though the money rightfully belonged to the
CDO clients.

Sep 2, 2015

Taberna Capital pays $21.5 million to settle U.S. SEC charges

By Nate Raymond and Jonathan Stempel

(Reuters) – A Philadelphia investment advisory firm has agreed to pay $21.5 million to settle U.S. Securities and Exchange Commission civil charges that it fraudulently retained fees belonging to collateralized debt obligation clients.

The SEC on Wednesday said Taberna Capital Management kept over $15 million in fees in connection with restructuring transactions even though the money rightfully belonged to the CDO clients.

Sep 2, 2015

Fox News anchor sues Hasbro over toy hamster sharing her name

Sept 2 (Reuters) – An anchor for Fox News Channel has sued
Hasbro Inc for more than $5 million over the company’s
sale of a plastic toy hamster that shares her name, and which
she says resembles her.

In a complaint filed on Monday, Harris Faulkner, who joined
Fox News in 2005, called it “demeaning and insulting” for Hasbro
to portray her as a rodent with its Harris Faulkner hamster, and
said the toy damages her credibility as a journalist.

Sep 2, 2015

Indicted Philadelphia congressman cannot suppress warrant for emails

By Jonathan Stempel

(Reuters) – Chaka Fattah, a Philadelphia congressman facing corruption charges, failed to persuade a federal appeals court to void a search warrant that would give investigators access to seven years of his private emails.

The 3rd U.S. Circuit Court of Appeals on Wednesday dismissed Fattah’s argument that executing the warrant to force Google Inc to turn over contents of his Gmail account dating back to 2008 would violate the U.S. Constitution’s Speech or Debate Clause, which provides protections for members of Congress.

Sep 1, 2015

Kmart pays $1.4 mln to settle U.S. charges over Medicare inducements

WASHINGTON/NEW YORK (Reuters) – Kmart Corp has paid $1.4
million to settle U.S. allegations that it violated the federal
False Claims Act by inducing Medicare beneficiaries to fill
prescriptions at its pharmacies, the Department of Justice said
on Tuesday.

The government said the accord resolves allegations that
Kmart, a unit of Sears Holdings Corp, let beneficiaries
use drug manufacturers’ coupons to reduce or eliminate
prescription co-payments.

Sep 1, 2015

Miami mortgage lawsuits vs BofA, Citigroup, Wells Fargo are revived

By Jonathan Stempel

(Reuters) – A federal appeals court on Tuesday revived three lawsuits in which the City of Miami accused Wells Fargo & Co, Bank of America Corp and Citigroup Inc of predatory mortgage lending to black and Hispanic borrowers.

The 11th U.S. Circuit Court of Appeals said a lower court erred in dismissing the city’s claims under the federal Fair Housing Act.

    • 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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