|
|
|
Goldman to face mortgage debt class-action lawsuit
Headline Legal News |
2012/02/02 10:03
|
Goldman Sachs Group Inc was ordered by a federal judge to face a securities class-action lawsuit accusing it of defrauding investors about a 2006 offering of securities backed by risky mortgage loans from a now-defunct lender.
U.S. District Judge Harold Baer in Manhattan certified a class-action lawsuit by investors led by the Public Employees' Retirement System of Mississippi.
These investors claimed they lost money in the GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans made by New Century Financial Corp, a California subprime mortgage specialist that went bankrupt in 2007.
Thursday's decision is a setback for Goldman, which had sought to force investors to bring their cases individually.
Class certification lets investors pool resources, which can cut costs, and can lead to larger recoveries than if investors are forced to sue individually.
Goldman spokesman Michael Duvally declined to comment.
The bank is one of many accused by Congress, regulators and others of having fueled the nation's housing crisis and 2008 financial crisis in part by having misled investors about the quality of mortgage debt they sold.
|
|
|
|
|
|
|
U.S. man suing Facebook fined $5,000 by court
Headline Legal News |
2012/01/11 10:43
|
A man who's suing for part ownership of Facebook has been fined $5,000 by a federal judge for failing to fully comply with an order to turn over his e-mail account information.
A man suing for part ownership of Facebook was fined $5,000 for failing to comply with a court order.
Paul Ceglia was also ordered to pay some of Facebook founder Mark Zuckerberg's legal expenses.
The sanctions are a setback for Ceglia's claim in U.S. District Court that a 2003 contract he and Zuckerberg signed entitles him to half ownership of the social networking site estimated to be worth more than $50 billion.
The judge issued the sanctions late Tuesday, faulting Ceglia for ordering his lawyers not to fully obey his orders.
Palo Alto, California-based Facebook claims Ceglia's contract is fake. Ceglia's lawyer says his client will pay the penalties. |
|
|
|
|
|
|
Supreme Court rules in favor of arbitration
Headline Legal News |
2012/01/10 09:49
|
The Supreme Court ruled Tuesday that disputes between consumers and companies that issue low-rate credit cards to people with bad credit ratings can be handled in business-friendly arbitration, rather than federal court.
The justices voted 8-1 to reverse a federal appeals court ruling allowing consumers to sue in federal court, the latest in a string of recent high court decisions in favor of arbitration. The consumers said they were promised an initial $300 in available credit, but were charged $257 in fees in the first year they had the credit card.
But the court, with only Justice Ruth Bader Ginsburg dissenting, agreed with the companies' argument that the dispute must be settled through arbitration, under an agreement that the customers signed to receive the card.
The federal Credit Repair Organizations Act, signed by President Bill Clinton in 1996, says consumers have a right to sue, which the federal appeals court in San Francisco interpreted as a right to go to court, rather than be forced to submit to arbitration.
|
|
|
|
|
|
|
Calif officials seek redevelopment compromise
Headline Legal News |
2011/12/30 13:17
|
The California Supreme Court on Thursday gave Gov. Jerry Brown and state lawmakers the right to eliminate community redevelopment agencies in a crucial victory on the state budget.
But the fate of the more than 400 redevelopment agencies remains unclear as cities — and even many lawmakers — vowed to seek a legislative compromise next year that would ensure the agencies' survival. Brown has little incentive to go along.
The court affirmed the state's authority to dissolve the agencies, calling it "a proper exercise of the legislative power vested in the Legislature by the state constitution." Doing so means more of the property taxes generated within redevelopment zones will go toward schools, law enforcement and other local services, freeing up as much as $1.7 billion in the state general fund during the current fiscal year. The money now is returned to the agencies to spend on future redevelopment projects.
Lawmakers and the mayors of several large cities said Thursday they were inclined to work out a compromise after the justices issued their split decision. While they affirmed the Legislature's authority to dissolve redevelopment agencies, the justices in a unanimous decision invalidated companion legislation passed last summer that was intended to keep the agencies operating by forcing them to direct a certain amount of property tax revenue to schools and other services. |
|
|
|
|
|
|
Del. court says ex-HP CEO can't keep letter secret
Headline Legal News |
2011/12/29 13:17
|
Former Hewlett-Packard Co. CEO Mark Hurd will have to make public a letter detailing sexual-harassment allegations that led to his ouster.
The Delaware Supreme Court, the state's highest, ruled on Wednesday that Hurd's lawyers didn't show that disclosing the letter would invade California privacy rights. The ruling said information that is only "mildly embarrassing" is not protected from public disclosure. The letter, it added, does not contain trade secrets or non-public financial information that would qualify.
Although the letter goes into "embarrassing detail about Hurd's behavior, it does not describe any intimate conversation or conduct," the ruling said. Some sentences, concerning Hurd's family, were ordered redacted, but no one appealed that part of a lower court's decision, according to the ruling.
Celebrity attorney Gloria Allred sent the letter last year on behalf of Jodie Fisher, who was hired to help with HP networking events and later accused Hurd of sexual harassment. Although an investigation did not find any sexual harassment, it uncovered inaccurate expense reports that ultimately pressured Hurd to resign. Hurd now works as co-president at rival Oracle Corp. |
|
|
|
|
|
|
 |
Investment Fraud Litigation |
|
|
|
|
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.
|
|
|
| |
| |
| |
|
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 |
|
Legal News RSS Feed
