|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5161 | Stocks | 08/22/2008
According to a local business journal, an investor who can't access funds frozen in auction rate securities filed a class-action lawsuit against the company and its subsidiary.
The suit alleges that Stifel Financial Corp. and its subsidiary Stifel, Nicolaus & Company, Inc. 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 the securities are traded. Auction-rate securities are municipal or corporate debt securities or preferred stocks that pay interest at rates set through periodic auctions. The instruments typically have long-term maturity dates or no maturity date. The suit, filed on August 8, claims that, pursuant to uniform sales materials and top-down management directives, Stifel Financial Corp. offered and sold auction-rate securities to the public as highly liquid cash-management instruments and as suitable alternatives to money market mutual funds. On Feb. 13, 2008, all of the major broker-dealers, including Stifel Financial Corp., withdrew their support for the auctions. The suit claims that, as a result, investors have been unable to liquidate their auction-rate securities. The lawsuit alleges that Stifel Financial Corp. 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; 2) The auction-rate securities were only liquid at the time of the sale because Stifel Financial Corp and other broker-dealers were artificially supporting and manipulating the market to maintain the appearance of liquidity and stability; 3) Stifel Financial Corp and other broker-dealers routinely intervened in the auctions for their own benefit to set rates and to prevent all-hold auctions and failed auctions, and; 4) Stifel Financial Corp. continued to market auction-rate securities as liquid investments even after Stifel Financial Corp. and other broker-dealers determined that they would likely be withdrawing support for the periodic auctions and that a freeze of the auction rate securities market 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 NEW ORLEANS, LA--(MARKET WIRE)—October 24, 2006 -- Kahn Gauthier Swick, LLC ("KGS") has filed the first class action lawsuit in the United States District Court for the Southern District of New York, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of Xethanol Corp. ("Xethanol” or the "Company'') (AMEX: XNL) between January 31, 2006 and August 8, 2006 (the “Class Period”).
On August 12, 2003, the parties announced a tentative $15 million settlement of a class action filed against safety services provider Rural/Metro Corporation (Nasdaq: RUREC, formerly RURL and RURLC) and certain of its officers and directors by stockholders who purchased the company's common stock between April 24, 1997, and June 11, 1998. To recover under the settlement, class members must mail a claim form to the settlement administrator postmarked no later than December 15, 2003.
Several class actions have been filed against networking company Nortel Networks Corporation (NYSE:NT) and certain of its officers and directors by stockholders who purchased the company's common stock between December 23, 2003, and March 12, 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. Semiconductor technology changes very rapidly—cutting edge companies are developing faster and better materials and designs constantly. Several class actions have been filed against semiconductor wafer manufacturer IBIS Technology Corporation (Nasdaq: IBIS) and certain of its officers and directors by stockholders who purchased the company's common stock between October 2, 2003, and December 12, 2003. 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 class action has been filed against Electronic Arts Inc. (EA), (NasdaqNM:ERTS), certain of its officers and directors by stockholders who purchased the company's common stock between January 25, 2005 and March 21, 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 New York Community Bancorp, Incorporated, a New York bank serving the New York metro region, including the boroughs of New York City, Long Island and Westchester County, and Essex, Hudson, and Union counties in New Jersey (NYB) and certain of its officers and directors by stockholders who purchased the company's common stock between June 27, 2003 and May 9, 2004. 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. |
|
© 2000 - 2009 Copyright. All rights reserved nola3, llc.
