|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5131 | Stocks | 07/21/2008
According to the complaint, filed on June 30, 2008, this case concerns an international fraudulent securities scheme based on the illicit purchases of hundreds of millions of dollars of securities in illiquid U.S. penny stocks in the names of multiple Absolute Capital hedge funds. When the truth about these purchases was revealed in September 2007, the value of the hedge funds promptly plunged by up to 40%, or by hundreds of millions of dollars in the aggregate.
In September 2007, the Chief Investment Officer of Return Europe Fund, East West Fund, European Catalyst Fund, Octane Fund, Activist Fund and other funds within the Absolute Capital family of funds suddenly disappeared. Similarly, the Chairman and CEO suddenly resigned. As reported in the press, "many Absolute investors found themselves looking at big losses after it emerged in the days after the CIO’s disappearance that a substantial amount of his holdings had been in bulletin board, or 'pink' sheet stocks." Stocks known as "bulletin board" stocks or "pink sheet" stocks are stocks in companies that cannot meet the requirements to be listed on a national securities exchange. Such stocks are universally recognized in the securities industry to be illiquid, thinly-traded, and speculative. They are often stocks in start-up companies. Such stocks are far more susceptible to market manipulation than stocks traded on a national exchange. The "big losses" initially reported in the press were an understatement. In a September 19, 2007 press release by ACM, ACM revealed that the Absolute Capital Funds' investments in illiquid "US-based Over the Counter Bulletin Board/Pink Sheet" stocks were "approximately $440 million to $530 million of the equity funds' assets." The sudden revelation that the missing CIO had invested roughly half a billion dollars in illiquid penny stocks, contrary to the provisions contained in the Funds' offering memoranda, caused the value of investments in the Absolute Capital Funds to plunge and to put ACM in a financial crisis.
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 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. A class action has been filed against Pixar (PIXR), certain of its officers and directors by stockholders who purchased the company's common stock between January 18, 2005 and June 30, 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. The parties have reached a tentative $1,810,000 settlement of a class action filed against professional employer services provider Staff Leasing, Inc. (Nasdaq: STFF) and certain of its officers and directors by stockholders who owned the company's common stock between March 17 and April 20, 1999, and lost money because of the defendants' rejection of the March 17, 1999, tender offer by Paribas Principal Partners. The parties have reached a tentative $410 million settlement in several class actions filed against defense contractor Raytheon Company (NYSE:RTN) and certain of its officers and directors by stockholders who purchased the company's common stock between January 28, 1999, and October 12, 1999. The actions claimed 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. Persons eligible to take part in the action should contact attorneys for the class. According to a press release dated May 6, 2008, the lawsuit charges Cbeyond and its founder, Chairman, President and CEO, with violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and certain rules thereunder. 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. |
|
© 2000 - 2009 Copyright. All rights reserved nola3, llc.
