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Case ID: 2798 | Stocks | 07/22/2004
A class action has been filed against LaBranche & Company, Inc. (NYSE: LAB) and certain of its officers and directors by stockholders who purchased the company's common stock between January 25, 2000, and October 15, 2003. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
LaBranche is a specialty firm on the New York Stock Exchange (NYSE). As a specialist on the NYSE, LaBranche is required to uphold the NYSE's rules and requirements. Allegedly, rather than uphold its duties, LaBranche, during the class period, repeatedly violated its duties by engaging in an illegal scheme to drive up the company's financial results. More specifically, the action alleges that LaBranche's statements concerning its financial results during the class period were materially false and misleading because they failed to disclose, or misrepresented, the following adverse facts, among others: 1. That LaBranche engaged in the illegal practice of "front-running" trades at the NYSE, which allowed LaBranche to act on nonpublic information to trade ahead of customers lacking that knowledge and pocket a profit on each trade. 2. That LaBranche illegally "traded ahead" of customer orders by causing or allowing its traders to put LaBranche's own interest ahead of investors by ignoring one investor order while in the process of interacting with another investor, thereby creating more illegal profits for the company. 3. That LaBranche, throughout the class period, improperly recognized revenue from its illegal scheme in violation of Generally Accepted Accounting Principles. 4. That, as a result of this illegal scheme, LaBranche materially overstated and artificially inflated its earnings, net income, and earnings per share. On October 16, 2003, the NYSE announced that the its enforcement division had decided to bring disciplinary action against LaBranche and the other specialist firms. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Several class actions have been filed against flash memory manufacturer Lexar Media, Inc. (Nasdaq:LEXR) and certain of its officers and directors by stockholders who purchased the company's common stock between July 17, 2003, and April 16, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. According to a press release dated September 18, 2008, a class action lawsuit against Lord, Abbett & Co. LLC and Lord Abbett Distributor LLC ("Lord Abbett") on behalf of investors who received class A shares of certain multi-class Lord Abbett stock mutual funds after investing less than $50,000, and thus paid a sales charge of 5.75%. The complaint alleges Lord Abbett violated Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. Sec. 78j(b), and Rule 10b-5, 17 C.F.R. Sec. 240.10b-5.
This lawsuit, originally filed on May 15, 2008 in the New York Supreme was removed to the federal district court on June 2, 2008. On March 31, 2008, a motion to consolidate cases, to appoint lead plaintiff and counsel was filed by Operating Engineers Construction Industry and Miscellaneous Pension Fund. Several class actions have been filed against entertainment broadcaster the Walt Disney Company (NYSE: DIS) and certain of its officers and directors by stockholders who sold the company's common stock on February 9, 2004, or February 10, 2004. The actions claim that the defendants violated federal securities laws by failing to disclose that Comcast Corporation’s CEO had approached Disney with an offer to merge Disney and Comcast. Several class actions have been filed against bulk transporter Quality Distribution, Inc. (Nasdaq:QLTY) and certain of its officers and directors by stockholders who purchased the company's common stock between November 7, 2003, and February 2, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. |
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