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Case ID: 5056 | Stocks | 07/17/2008
On June 27, 2008, the Court entered the Order signed by U.S. District Judge Gerard E. Lynch consolidating three actions under In re Société Générale Securities Litigation, case number 08cv2495.
A lawsuit was filed on behalf of all purchasers of American Depository Receipts (“ADRs”) of Société Générale (SocGen) (OTC:SCGLY - News), traded on the over the counter market, and all U.S. purchasers of SocGen’s shares on overseas exchanges during the Class Period. The complaint charges that SocGen violated the Securities Exchange Act of 1934 by misleading investors regarding its activities and exposure in the subprime mortgage markets, and its lack of sufficient internal controls and failure to act on information it had regarding the highly irregular and unauthorized trades by its Delta One derivative trading desk, handled by junior trader Jerome Kerviel. The case also involves alleged insider trading by SocGen’s top U.S. executive and board member, Robert A. Day. Specifically, the complaint charges that during the Class Period SocGen: (1) made false and misleading statements and concealed material adverse information regarding SocGen’s exposure to subprime loans, collateralized debt obligations (“CDOs”) and SocGen’s internal controls; (2) touted SocGen’s conservative management, risk control, and expertise in risk analysis and structured finance, including CDO vehicles; (3) misled investors by announcing that it had “very little exposure” to the subprime segment; and (4) ignored or failed to act upon numerous alerts which should have led to the uncovering of Jerome Kerviel’s massive irregular trading activity from 2005 through early 2008. The Complaint further alleges that the result of this fraudulent activity was that SocGen had to take write downs of close to $4 billion relating to the subprime market, and $7 billion in losses due to the highly risky and irregular trading by Kerviel, which caused a dramatic drop in share price and significant losses to investors.
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 According to a press release dated March 25, 2008, the Complaint alleges that Merrill Lynch violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.
A class action has been filed against Blockbuster, Inc. (BBI), certain of its officers and directors by stockholders who purchased the company's common stock between September 8, 2004 and August 9, 2005. 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. A class action has been filed against karaoke equipment maker The Singing Machine Company, Inc. (AMEX: SMD), certain of its officers and directors, and its auditor, Salberg & Company, P.A., by stockholders who purchased the company's common stock between August 9, 2001, and June 27, 2003. A class action has been filed against Martek Biosciences Corporation (NasdaqNM:MATK), certain of its officers and directors by stockholders who purchased the company's common stock between December 09, 2004 and April 27, 2005. 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. A class action has been filed against Putnam Investment Funds and certain affiliated companies who purchased shares in any Putnam mutual fund between November 1, 1998, and September 3, 2003. The action claims that the defendants violated federal securities laws by failing to disclose that they improperly allowed certain investors to engage in the "timing" of their transactions in the funds' securities. A class action has been filed against clothing manufacturer Warnaco Group, Inc. (Nasdaq: WRNC) and certain of its officers and directors by stockholders who purchased the company's common stock between December 11, 1997, and July 20, 2000.
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