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Goldman agrees to settle mortgage debt class action
Headline Legal News |
2012/07/18 16:40
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Goldman Sachs Group Inc has agreed to settle a class-action lawsuit with investors who claimed losses on $698 million of securities backed by risky mortgage loans issued by defunct subprime lender New Century Financial Corp.
Lawyers for the investors said in a letter filed in U.S. District Court in Manhattan on Tuesday that a proposed settlement had been reached. Terms were not immediately disclosed, though they are expected to be included in court papers filed by July 31.
Goldman is one of many banks accused by U.S. legislators and regulators of fueling the nation's housing and financial crisis by misleading investors about the quality of mortgage debt they sold.
A federal judge in February ordered Goldman to face the class-action lawsuit that accuses it of defrauding investors in GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans.
The loans were made by New Century, a subprime mortgage specialist that went bankrupt in 2007.
The investors, led by the Public Employees' Retirement System of Mississippi, contend the offering documents contained materially untrue statements about the underwriting and appraisal standards used by California-based New Century, the mortgage originator. Goldman securitized and issued the certificates. |
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Guilty plea in NY 'mini-al Qaida' cell case
Headline Legal News |
2012/06/19 10:12
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A New Yorker accused of trying to start what prosecutors called "a mini al-Qaida cell" pleaded guilty Monday to federal charges of conspiracy and providing material support to a terrorist organization.
An indictment had alleged that Wesam El-Hanafi pledged loyalty to al-Qaida and sought to teach the terror group how to evade detection on the Internet after he went to Yemen in 2008.
The Brooklyn-born El-Hanafi admitted in federal court in Manhattan to having conversations in 2009 with a co-defendant about "seeking out additional contacts within al-Qaida." The co-defendant, Sabirhan Hasanoff, pleaded guilty to similar charges earlier this month.
Prosecutors had portrayed the two U.S. citizens as a new, more sophisticated breed of homegrown terrorist: Both had earned college degrees and landed well-paying jobs before trying to share their expertise with al-Qaida. |
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Appeals court knocks out Job Corps drug tests
Headline Legal News |
2012/06/10 00:02
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A federal appeals court on Friday declared a random drug testing program for government workers at 28 U.S. Forest Service Job Corps centers unconstitutional.
The centers are home for at-risk youths from ages 16 to 24 from troubled environments. Residents are housed in remote rural locations and trained in various vocations.
In a 2-1 decision, the U.S. Circuit Court of Appeals for the District of Columbia said the small number of drug use incidents among a workforce of several thousand over many years does not establish a serious problem, much less an immediate crisis necessitating expansion of a random drug testing policy.
The government "has thus offered a solution in search of a problem," Judge Judith Rogers ruled.
Absent from the record, Rogers said, is any demonstration that government staffers using drugs influenced youths at the center to use them, in violation of the centers' Zero Tolerance Policy. She was joined by Judge Douglas Ginsburg.
Previously, the only center workers undergoing random drug testing were nurses and employees required to hold a commercial driver's license.
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Court denies Loughner's request for rehearing
Headline Legal News |
2012/06/05 00:00
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An appeals court rejected a request by lawyers for the man accused of shooting former Rep. Gabrielle Giffords to rehear their arguments over their mentally ill client's forced medication with psychotropic drugs.
Attorneys for Jared Lee Loughner had asked the 9th U.S. Circuit Court of Appeals for a rehearing after the court in March denied their request to halt their client's forced medication.
The court on Tuesday denied the request to hear the appeal again.
Loughner has pleaded not guilty to 49 charges stemming from the January 2011 shooting in Tucson that killed six people and wounded former U.S. Rep. Gabrielle Giffords and 12 others.
The trial court judge on the case has set a June 27 hearing in Tucson to consider whether Loughner is mentally fit to stand trial.
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Court: Families cannot sue over loan discount fee
Headline Legal News |
2012/05/25 15:14
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The Supreme Court ruled unanimously Thursday that three families cannot sue a mortgage company for allegedly charging them a loan discount fee without giving them a lower interest rate.
The high court's decision tosses out lawsuits filed in 2008 against Quicken Loans, Inc., in Louisiana by three families who claimed they paid the fees without receiving anything in return. The Freeman family paid $980 and the Bennett family $1,100 in loan discount fees but allegedly did not get lower interest rates in return. The Smith family allegations focus partly on a loan origination fee of $5,100, which they claim was a mislabeled loan discount fee.
A federal judge threw the lawsuit out, saying the Real Estate Settlement Procedures Act made the lawsuit improper. That decision, which was upheld by the 5th U.S. Circuit Court of Appeals in New Orleans, was appealed to the Supreme Court.
The law says no "person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed."
The argument is over whether that law "prohibits the collection of an unearned charge by a single settlement provider, or whether it covers only transactions in which a provider shares part of a settlement-service charge with one or more other persons who did nothing to earn it," said Justice Antonia Scalia, who wrote the opinion.
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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The content contained on the web site has been prepared by Securities Law News as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case. | Affordable Law Firm Website Design by Law Promo |
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