securities fraud News

Investors’ Suit Alleges Firm Inflated Stock with Misleading Claims About Its Covid Test

An investor lawsuit against a Utah company alleges its principals falsely claimed its coronavirus diagnostic test was “100% accurate” and before doubts about the claim became widely reported, directors and officers of the company were selling off their own stock …

Ryanair Must Face U.S. Shareholder Lawsuit Over Unionization Comments

NEW YORK — Ryanair Holdings Plc and Chief Executive Michael O’Leary failed to persuade a U.S. judge to dismiss a securities fraud lawsuit accusing Europe’s largest budget airline of defrauding them by downplaying its willingness to recognize labor unions. While …

NY, Feds Sue ‘Pharma Bro’ for ‘Scheme’ to Keep Drug Price Up

NEW YORK — State and federal authorities sued imprisoned entrepreneur Martin Shkreli on Monday over tactics that shielded a profitable drug from competition after a price hike made the so-called “Pharma Bro” infamous. Shkreli was scorned as the bad-boy face …

Ex-CFO of Bankrupt Enron Offers D&O Lessons From Accounting’s ‘Gray’ Areas

Andrew Fastow, former chief financial officer (CFO) of Enron Corp., a now-defunct energy trading company swept up in a massive fraud scandal in the early 2000s, warned a room full of directors and officers (D&O) underwriters that some companies today …

Hackers Charged in Huge Cyberfraud Scheme Targeting U.S. Financial, Media Companies

U.S. prosecutors on Tuesday unveiled criminal charges against three men accused of running a sprawling computer hacking and fraud scheme that included a huge attack against JPMorgan Chase & Co and generated hundreds of millions of dollars of illegal profit. …

Pennsylvania Lawyer Charged With Insider Trading Linked to Nationwide Merger

A former partner at a Philadelphia law firm has been charged with insider trading linked to a client’s merger with another insurance firm. Federal prosecutors have charged Herbert Sudfeld with making $75,000 by purchasing stock in Harleysville Insurance the day …

Investors Face More Restrictions on Securities Class Action Cases

The Supreme Court on Monday made it tougher for investors to join together to sue corporations for securities fraud, a decision that could curb the number of multimillion-dollar legal settlements companies pay out each year. But the unanimous ruling was …

Ex-Home Solutions Exec Pleads Not Guilty to Fraud

A former executive of a business that specialized in disaster recovery has pleaded not guilty to securities fraud in Texas. Federal prosecutors in Dallas say Brian Marshall of Tampa, Fla., appeared Tuesday before a magistrate and was freed on bond. …

Securities Fraud Settlements Dropped in 2011: Study

Angry investors are seeing far fewer financial benefits from lawsuits accusing corporate America of securities fraud, but may be on the cusp of a turnaround. The number and size of securities fraud settlements that won final U.S. court approval fell …