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Case ID: 5085 | Stocks | 07/18/2008
The judge appointed lead plaintiff and approved her selection of Girard Gibbs LLP to serve as lead counsel on July 2, 2008.
According to a press release dated April 8, 2008, the Complaint alleges that Raymond James 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. The Complaint alleges that, pursuant to uniform sales materials and top-down management directives, Raymond James offered and sold auction rate securities to the public as highly liquid cash-management vehicles and as suitable alternatives to money market mutual funds. According to the Complaint, holders of auction rate securities sold by Raymond James and other broker-dealers have been unable to liquidate their positions in these securities following the decision on February 13, 2008 of all major broker-dealers to “withdraw their support” for the periodic auctions at which the interest rates paid on auction rates securities are set. The Complaint alleges that Raymond James failed to disclose the following material facts about the auction rate securities it sold to the class: (1) the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer; (2) the auction rate securities were only liquid at the time of sale because broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; (3) broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions; and (4) Raymond James continued to market auction rate securities as liquid investments after it had determined that broker dealers were likely to withdraw their support for the periodic auctions and that a “freeze” of the market for auction rate securities would result.
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 This securities class action was filed in the Southern District of New York on October, 2008.
The Complaint alleges that during the Class Period, the Company and the individual defendants falsely portrayed the Company as relatively immune from the effects of the global credit crisis and stated that the Company’s capital position remained strong and loan portfolio was solid. In actuality, the Company was practically insolvent at all relevant times and needed to sell assets at fire-sale prices and raise capital at extraordinarily high rates to remain viable. Moreover, the Company’s balance sheet was impaired by billions of dollars of poorly performing assets the Company acquired when it purchased ABN AMRO in October 2007.
Several class actions have been filed against communications testing company Acterna Corporation (formerly OTCBB: ACTRQ) and certain of its officers and directors by stockholders who purchased the company's common stock between August 1, 2001, and October 30, 2002. 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. A $4 billion class action lawsuit was filed on behalf of shareholders of Biovail Corporation against a variety of defendants including SAC Capital Management LLC and its founder, Gradient Analytics (formerly known as Camelback Research Alliance), and Banc of America Securities LLC, New York, as well as one of its securities analysts. Specifically, the lawsuit states that the action arises from a massive, illegal and continuing stock market manipulation scheme, which targeted the common stock of Biovail and severely harmed its investors, and which has resulted in immense ill-gotten profits for S.A.C. Capital and other extremely powerful hedge funds Several class actions have been filed against Krispy Kreme Doughnuts, Inc. (NYSE:KKD) and certain of its officers and directors by stockholders who purchased the company's common stock between August 21, 2003, and May 7, 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. The parties have reached a final $7.5 million settlement in an action filed against Internet World Media, Inc. and Penton Media, Inc. on behalf of stockholders who tendered their shares of Mecklermedia Corporation to Internet World Media in the tender offer commenced by Penton Media in October 1998, or exchanged their shares of Mecklermedia stock in the subsequent merger of Mecklermedia and Internet World Media. Claims forms must be postmarked on or before August 30, 2004, to be considered valid. This lawsuit, originally filed on May 15, 2008 in the New York Supreme was removed to the federal district court on June 2, 2008. |
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