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Apr 18, 2014

Lululemon yoga pants lawsuits in U.S. win final dismissals

NEW YORK, April 10 (Reuters) – A U.S. judge has issued final
dismissals of lawsuits accusing Lululemon Athletica Inc
and various company officials of defrauding shareholders by
concealing defects in yoga pants.

U.S. District Judge Katherine Forrest in Manhattan had on
April 4 issued “draft” decisions dismissing a shareholder
lawsuit against Lululemon, and two lawsuits accusing 11
executives and directors of missing red flags about poor quality
control.

Apr 17, 2014

Ex-Goldman director Rajat Gupta starts prison term on June 17

NEW YORK (Reuters) – Former Goldman Sachs Group Inc director Rajat Gupta is expected to begin his two-year prison term on June 17 for insider trading.

U.S. District Judge Jed Rakoff in Manhattan directed Gupta to surrender by 2:00 p.m. EDT (1800 GMT) on that date to start serving his sentence, according to an order issued on Thursday.

Apr 17, 2014

Ford, IBM to face renewed U.S. lawsuit over apartheid-era abuses

NEW YORK, April 17 (Reuters) – Ford Motor Co and IBM
Corp will again have to face a U.S. lawsuit claiming
they encouraged race-based human rights abuses in apartheid-era
South Africa, despite a series of recent court decisions
limiting the right to pursue such cases.

Reviving a 12-year-old lawsuit, U.S. District Judge Shira
Scheindlin in Manhattan accepted an argument from a group of
plaintiffs that corporations may be held liable under a 1789
law, the Alien Tort Statute (ATS), that lets non-U.S. citizens
pursue some cases in U.S. courts over alleged violations of
international law.

Apr 17, 2014

Ex-Goldman director Gupta starts prison term on June 17

NEW YORK (Reuters) – Former Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) director Rajat Gupta is expected to begin his two-year prison term on June 17 for insider trading.

U.S. District Judge Jed Rakoff in Manhattan directed Gupta to surrender by 2:00 p.m. EDT on that date to start serving his sentence, according to an order issued on Thursday.

Apr 17, 2014

Monster Beverage in $16.25 million ‘channel-stuffing’ settlement

By Nate Raymond and Jonathan Stempel

(Reuters) – Monster Beverage Corp (MNST.O: Quote, Profile, Research, Stock Buzz) reached a $16.25 million settlement with shareholders who said the energy drink maker defrauded them by overstating the financial benefits of a distribution arrangement with Anheuser-Busch.

The accord was disclosed in a Wednesday filing with the U.S. District Court in Los Angeles, and requires court approval.

Apr 16, 2014

U.S. court: Companies can’t litigate secretly to protect image

By Jonathan Stempel

(Reuters) – In a victory for consumers, a federal appeals court on Wednesday directed that litigation about a product linked to the death of an infant be made public, saying the manufacturer could not keep the details secret to protect its image.

Overturning a lower court’s findings, the 4th U.S. Circuit Court of Appeals said allowing the manufacturer known in court papers as Company Doe to maintain confidentiality “effectively shut out” the public and the press from their constitutional right to obtain access to civil proceedings.

Apr 16, 2014

U.S. court rejects Genworth investors’ class action attempt

NEW YORK (Reuters) – A federal judge in New York has refused to let more than 2,000 Genworth Financial Inc clients pursue a class action lawsuit claiming they were defrauded into believing a well-known radio talk show host and financial adviser would oversee their portfolios.

The plaintiffs claimed to lose millions of dollars from December 2003 to December 2009 because Genworth Financial Wealth Management Inc reneged on promises that Bob Brinker, host of the syndicated “Moneytalk,” would recommend asset allocation and investment choices, and that “experienced professionals” would implement his strategy.

Apr 15, 2014

U.S. wins more guilty pleas in first counterfeit apps case

By Jonathan Stempel

(Reuters) – The final defendants in what the U.S. government called its first prosecution of a counterfeit apps case have pleaded guilty over their roles in alleged schemes to traffic in pirated Android mobile device applications.

Thomas Pace, 38, of Oregon City, Oregon, pleaded guilty on Tuesday to one count of conspiring to commit criminal copyright infringement over his activity at Appbucket Group, the U.S. Department of Justice said.

Apr 15, 2014

S&P fails to convince U.S. judge to split up $5 bln fraud case

April 15 (Reuters) – A federal judge on Tuesday rejected a
request by Standard & Poor’s to split up the U.S. government’s
$5 billion lawsuit accusing it of lying about its credit
ratings, paving the way for a single trial in the civil fraud
case.

U.S. District Judge David Carter in Santa Ana, California,
nonetheless gave S&P, a unit of McGraw Hill Financial Inc
, permission to seek evidence that U.S. government filed
its February 2013 lawsuit in retaliation for the agency’s
decision 18 months earlier to take away the United States’
“triple-A” credit rating.

Apr 14, 2014

Lawsuit claims CME gave high-frequency traders special access

By Jonathan Stempel

(Reuters) – A group of traders has sued CME Group Inc (CME.O: Quote, Profile, Research, Stock Buzz), accusing the operator of the world’s largest derivatives exchange of selling market data to high frequency traders, cheating other investors who lacked such access.

In a complaint filed on Friday in the U.S. District Court in Chicago, William Braman, Mark Mendelson and John Simms said CME and its Chicago Board of Trade unit have since 2007 given high-frequency traders early access to buy and sell orders.

    • 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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