|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5110 | Stocks | 07/21/2008
According to a law firm press release, on May 22, 2008 a class action lawsuit was filed on behalf of persons who purchased Auction Rate Securities from Bank of America Corp. (NYSE: BAC), Banc of America Investment Services, Inc., and Banc of America Securities, LLC.
The Complaint alleges that Bank of America 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, Bank of America 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 Bank of America 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 including Bank of America to “withdraw their support” for the periodic auctions at which the interest rates paid on auction rates securities are set. The Complaint alleges that Bank of America 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 Bank of America and other broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; (3) Bank of America and other broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions; and (4) Bank of America continued to market auction rate securities as liquid investments after it had determined that it and other 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 A class action has been filed against Workstream, Inc. (WSTM), certain of its officers and directors by stockholders who purchased the company's common stock between January 14, 2005 and April 14, 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 The Goodyear Tire & Rubber Company (NYSE: GT) and certain of its officers and directors by stockholders who purchased the company's common stock between March 26, 1999, and October 22, 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. According to a law firm press release, a class action was filed against defendants Synchronoss, its President, CEO and Chairman and its CFO and Treasurer. According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.
A class action has been filed against Northwest Airlines Corporation (NWACQ.PK), certain of its officers and directors by stockholders who purchased the company's common stock between April 21, 2005 and September 14, 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 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. Several class actions have been filed against tool manufacturer Spear & Jackson, Inc. (OTC:SJCK.OB) and certain of its officers and directors by stockholders who purchased the company's common stock between July 14, 2003, and April 15, 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. |
|
© 2000 - 2008 Copyright. All rights reserved nola3, llc.
