Nate's Feed
Apr 21, 2014

U.S. insider trading cases face test at appeals court

NEW YORK (Reuters) – A U.S. appeals court is set hear a case whose outcome could make it harder for the government to prosecute insider trading and potentially jeopardize several high-profile guilty verdicts, including that of SAC Capital Advisors portfolio manager Michael Steinberg.

The question facing the 2nd U.S. Circuit Court of Appeals in New York on Tuesday is one that has divided lower court judges: whether to be convicted of insider trading, the recipient of non-public information must know that the source of the tip benefited from the disclosure.

Apr 18, 2014

AMR loses bid to terminate retiree benefits

NEW YORK, April 18 (Reuters) – A U.S. bankruptcy judge
largely declined on Friday to rule that former American Airlines
parent company AMR Corp had a unilateral right to terminate
benefits for nearly 47,000 retirees.

U.S. Bankruptcy Judge Sean Lane in New York rejected a
motion AMR made in 2012 for a ruling holding that the health and
welfare benefits it provided retirees had not vested and could
be unilaterally modified.

Apr 18, 2014

Rajaratnam’s brother loses bid to dismiss insider trading charges

NEW YORK (Reuters) – Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, on Friday lost a bid to dismiss some of the insider trading charges leveled against him last year.

U.S. District Judge Naomi Reice Buchwald in Manhattan ruled that the indictment adequately alleged the essential elements of the crimes charged.

Apr 18, 2014

AbbVie urges U.S. court to avoid gay rights issue in HIV drug case

April 18 (Reuters) – An Abbott Laboratories spinoff
urged a federal appeals court to revisit a ruling in a case
against GlaxoSmithKline Plc, but without disturbing
landmark constitutional protections for gays and lesbians.

In a brief filed with the 9th U.S. Circuit Court of Appeals
in San Francisco on Thursday, AbbVie Inc said the full
court should review an initial three-judge decision that found a
gay man was improperly excluded from jury service due to his
sexual orientation.

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

Hotel magnate Sant Singh Chatwal pleads guilty to U.S. campaign contribution scheme

NEW YORK (Reuters) – Sant Singh Chatwal, a prominent hotel executive in New York, pleaded guilty on Thursday to conspiring to make $188,000 of illegal campaign contributions to three U.S. candidates via straw donors.

Chatwal, chairman of Hampshire Hotels Management, pleaded guilty in federal court in Brooklyn, New York, to criminal charges of conspiring to violate the Federal Election Campaign Act and witness tampering.

Apr 17, 2014

Hotel magnate pleads guilty to U.S. campaign contribution scheme

NEW YORK (Reuters) – A prominent hotel executive in New York pleaded guilty on Thursday to conspiring to make $188,000 of illegal campaign contributions to three U.S. candidates via straw donors.

Sant Singh Chatwal, chairman of Hampshire Hotels Management, pleaded guilty in federal court in Brooklyn, New York, to criminal charges of conspiring to violate the Federal Election Campaign Act and witness tampering.

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

Mexican mobile phone operator sues IBM for $2.5 billion

NEW YORK (Reuters) – Mexican mobile phone operator Iusacell SA de CV sued IBM Corp on Wednesday, accusing the U.S. technology giant of making fraudulent representations that caused it to lose $2.5 billion in profits.

The lawsuit, filed in federal district court in New York, was heavily redacted, leaving many of the claims unclear. But the complaint centered on a contract that Iusacell said IBM induced it to enter into in Mexico.

Apr 15, 2014

Apple cannot escape U.S. states’ e-book antitrust cases: judge

NEW YORK (Reuters) – Apple Inc on Tuesday lost an attempt to dismiss lawsuits by state attorneys general accusing it of conspiring with five major publishers to fix e-book prices.

U.S. District Judge Denise Cote’s ruling paves the way for attorneys general in 33 states and territories to move forward, along with attorneys for consumers, in pursuing hundreds of millions of dollars in damages at a July 14 trial.