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Feb 6, 2014

Citi to pay $110 million in a lawsuit over force-placed insurance

By Sakthi Prasad

(Reuters) – Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) has agreed to pay $110 million to thousands of homeowners who were forcibly charged expensive property insurance premiums, a court filing showed, as several U.S. banks and insurers were criticized by regulators over such practices.

The class-action lawsuit filed in a New York federal court involves “force-placed insurance,” which is placed by a bank or other mortgage lenders to protect their interests in a property if the homeowner’s insurance lapses.

Jan 28, 2014

First Quantum ups Cobre Panama output estimate but start delayed

BANGALORE/LONDON Jan 28 (Reuters) – First Quantum Minerals’
Cobre Panama project in Central America should
produce 20 percent more copper than previously planned, but
production will start later than expected and development costs
will be higher, the company said.

Vancouver-based First Quantum, which bought the huge copper
project in Panama through its C$5.1 billion ($4.8 billion)
takeover of rival Inmet Mining last year, said that
after reviewing the project it expected output at 320,000 tonnes
a year, 20 percent more than Inmet had planned.

Jan 23, 2014

U.S. brings fraud charges against firm that vetted Snowden

By Sakthi Prasad

(Reuters) – The Justice Department has accused United States Investigations Services (USIS), the private firm that also vetted Edward Snowden before he leaked documents about U.S. spying efforts, of bilking millions of dollars through improper background checks, a court filing showed.

USIS has a contract with the U.S. government since 1996 to vet individuals seeking employment with federal agencies. Such background checks include investigative fieldwork on each application.

Jan 10, 2014

US court rules against Bazaarvoice’s acquisition of PowerReviews

Jan 10 (Reuters) – A federal court ruled against Bazaarvoice
Inc’s $168.2 million acquisition of its main rival
PowerReviews Inc, saying the deal could lead to one firm
dominating the online product rating and review market, a court
filing showed.

The U.S. Justice Department sued Bazaarvoice last year,
calling the deal anticompetitive, and tried to force it to sell
some assets.

Jan 7, 2014

Some lenders oppose LightSquared’s new financing arrangement

Jan 6 (Reuters) – A section of LightSquared Inc lenders are
opposing the company’s decision to seek a new financing
arrangement as part of its plan to exit bankruptcy, the latest
attack in a highly litigious case involving competing business
interests.

In December, LightSquared proposed a new bankruptcy exit
plan with financing from Fortress Investment Group and
other backers, as the U.S. wireless communications company seeks
to avoid a sale to highest bidder Dish Network Corp.

Dec 24, 2013

W.R. Grace settles last remaining appeal to help exit bankruptcy

By Sakthi Prasad

(Reuters) – W.R. Grace & Co (GRA.N: Quote, Profile, Research, Stock Buzz) said it has settled the only remaining appeal for its Chapter 11 plan with a group of bank lenders, paving the way for the U.S. chemicals maker to emerge out of bankruptcy protection after 12 years.

The company reached a settlement with holders of pre-petition bank debt, who have been demanding a higher interest rate on their loans, according to a court filing on Monday.

Dec 18, 2013

Sentinel trustee wants Bank of NY Mellon to return $337 million

By Sakthi Prasad

(Reuters) – Bank of New York Mellon should be ordered to return about $337 million to Sentinel Management Group Inc, a U.S. futures broker that went bankrupt in 2007, according to a court filing made by the bankruptcy trustee.

Sentinel’s bankruptcy trustee, Frederick Grede, alleged that the futures broker pledged hundreds of millions of dollars in customer assets to secure an overnight loan from Bank of New York Mellon, leaving the bank in a secured position but Sentinel’s customers with losses worth millions.

Dec 6, 2013

LA sues Citi, Wells Fargo over discriminatory mortgage lending

Dec 5 (Reuters) – The city of Los Angeles has filed a
lawsuit against Citigroup and Wells Fargo, seeking
damages for a loss in tax revenue due to discriminatory mortgage
lending to the city’s minority communities, a court filing
showed.

In complaints filed in the U.S. Federal Court, LA City
attorney Mike Feuer said that Citigroup and Wells Fargo “engaged
in a continuous pattern and practice of mortgage discrimination
in Los Angeles since at least 2004 by imposing different terms
or conditions on a discriminatory and legally prohibited basis.”

Sep 17, 2013

Penthouse publisher FriendFinder files for bankruptcy

Sept 17 (Reuters) – Maybe sex doesn’t sell that well after
all.

FriendFinder Networks Inc, publisher of Penthouse
magazine and numerous adult-entertainment websites, filed for
Chapter 11 bankruptcy on Tuesday.

The company, which sought to combine social networking and
sex, said it had struck a deal with noteholders that will reduce
its debt by $300 million if approved by the U.S. Bankruptcy
Court in Delaware.

Sep 17, 2013

Penthouse publisher FriendFinder files for bankruptcy

Sept 17 (Reuters) – Maybe sex doesn’t sell that well after
all.

FriendFinder Networks Inc, publisher of Penthouse
magazine and numerous adult-entertainment websites, filed for
Chapter 11 bankruptcy on Tuesday.

The company, which sought to combine social networking and
sex, said it had struck a deal with noteholders that will reduce
its debt by $300 million if approved by the U.S. Bankruptcy
Court in Delaware.

    • About Sakthi

      "I am a Bangalore-based reporter covering the U.S. Overnight shift. Previously, I have written about small- and mid-cap U.S. companies."
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