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Investment Fraud Lawsuits

The common thread across all types of investment fraud

There is one common thread across all investors, regardless of your background or your investment style or where your money came from.  Each of you must rely on the truth and integrity of at least one other person when making an investment decision.

Think about it:   We must trust the CEO to tell us the truth during conference calls.  We must trust the CFO to have proper accounting controls in place and that the financial statements are accurate.  We must trust the board of directors to execute their duties to us in an honest and objective manner.  We must trust the hedge fund manager to invest as he promises to invest.  We must trust our financial consultant to match his investment recommendations only to our investment needs.  

What happens when a third party breaks that trust?  How does the law protect you?  What are your rights?  What actions do you need to take and when?  These questions and others are what I try and address in this section of our web site.  If someone broke his trust to you, 99.9% of the time there are dozens, if not hundreds if not thousands of others similarly situated.  Class actions are often the best or only recourse.

Investment Fraud Lawsuits:  How we break them down

So here is how I break it down.  (Nothing hard and fast here and different lawyers may break it down differently.)
Investment Fraud - Think Madoff.  This is when the investment is based on flat-out fraud.  Ponzi schemes.
Securities Fraud - When CEOs and senior executives of a public company breach the trust of shareholders and other securities holders.
Shareholder Derivative Lawsuits - When members of the board of directors of a public company breach well established duties to shareholders.
Pension Plan Fraud - When trustee's of a pension plan violate the duties owed to plan participants.
Stock Broker Fraud or Misconduct - When your financial consultant breaches his fiduaracy duties to you his client.
Belo Shareholder Class Action Settlement

The case alleged that Belo’s Directors breached their fiduciary duties by approving the Merger by means of an unfair process and by failing to disclose all material information concerning the Merger to Belo stockholders, and that Belo and Gannett aided and abetted such alleged breaches. 

New Frontier Media Investment Class Action Settlement

The class action lawsuit pending against New Frontier and the company’s former directors, Alan Isaacman, Melissa Hubbard, Walter Timoshenko and Hiram J.

Rockford Funding Group Investment Class Action Settlement

TheSecurities and Exchange Commission alleged that Rockford fraudulently used cold-calling and a Web site to raise at least $11 million from more than 200 investors in 41 different states and Canada since March 2009.

Velcera Inc. Investment Fraud Class Action Settlement

The lawsuit is a shareholder class action challenging the merger between Velcera and Perrigo Company (“Perrigo”) (the “Merger”) as well as a capital raise completed by Velcera in 2010.

Impax Laboratories Securities Class Action Settlement

This is a securities class action alleging violations of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the United States Securities and Exchange Commission. 

E*Trade Limit Order Invetigation

E*Trade gets and keeps a kickback for almost every “non-directed, standing limit order” it places for its clients.  Many brokerage houses rebate the kick-backed amount to the client.  Apparently, not E*Trade.  This class action investigation focuses on E*Trades practice and asks the basic question of whether it violates E*Trades “duty of best execution.”

Morgan Keegan ERISA Class Action Settlement

The federal court has preliminarily approved a Settlement in a class action lawsuit alleging breaches of fiduciary duties by Regions Financial Corporation (RFC) or any of its subsidiaries or affiliates, under the Employee Retirement Income Security Act of 1974, as amended (ERISA), in connection with various employee benefit plans.


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