Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Press Reports Did Not Put Investors on Notice of Potential Fraud at WorldCom
The District Court for the Southern District of New York has refused to dismiss the claims of an Ohio pension fund in the WorldCom case based on the argument of defendant, Salomon Smith Barney, that investors were placed on notice of the alleged fraud by virtue of press reports about the allegedly “illicit relationship” between WorldCom, Salomon Smith Barney and telecommunications analyst Jack Grubman. The court reasoned that as a matter of law, the press reports are simply too vague to support the conclusion that plaintiffs were on notice as to possible claims that Salomon's financial reporting on WorldCom was tainted. Public Employees Retirement System of Ohio v. Ebbers (In re WorldCom, Inc. Securities Litigation), No. 02cv03288 (Nov. 25).
In this consolidated class action, WorldCom and its former chief executive, Bernie Ebbers, allegedly committed massive accounting fraud and violated securities laws by making false statements and filings. Among the other defendants are investment banks, such as Salomon, who were responsible for handling WorldCom's bond offerings. Salomon, specifically, has been singled out as having an improper relationship with the company. Grubman allegedly worked in tandem with Ebbers to disguise WorldCom's troubles, and in return, Salomon, as well as Grubman, were rewarded handsomely with tens of millions of dollars in fees. In its attempt to have some of the claims dismissed, lawyers for Salomon and Grubman argued that a series of news articles about conflicted analysts amounted to “storm warnings” that should have alerted a reasonable investor as to the conflicts.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?