Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Corporate CounselorKickerFeaturesSectionsNewsLJN Newsletters

Hotline

By ALM Staff | Law Journal Newsletters |
December 01, 2003

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).

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.