Securities Regulation & Law Report Index-Summary

RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS (RICO) ACT

– Madoff fraud, Special Report, 840
– Mutual funds, investment in gambling concerns too indirect to support proximate cause analysis (S.D.N.Y.), 668
– Predicate offenses, discovery stage is too early to decide if stock loan fraud is securities claim (S.D. Ohio), 868
– Qwest, trustees bring claims against former executives (D. Colo.), 237

RAILROADS

– Special meetings, Burlington N. Santa Fe may not omit proposal (SEC No-Action Letter), 142

RATINGS

– Credit ratings

See CREDIT RATING

REAL ESTATE

– Condominium units as securities, dismissal for untimeliness affirmed (Fla. Dist. Ct. App.), 1959
– Deconsolidation of subsidiaries, FASB to clarify accounting provisions, 835
– Development company, SEC affirms fine against broker who sold shares in fraudulent firm (SEC), 1064
– IPO, nondisclosures of debtor insolvency found not material, claims dismissed (D. Conn.), 1441
– Mortgage-backed securities

See MORTGAGE-BACKED SECURITIES

– Mortgages

See MORTGAGES

– Ponzi schemes

– – Attorney faces SEC charges over promissory note scheme (N.D. Ga.), 660
– – Fraudster targeting Armenians pleads guilty to multiple charges (C.D. Cal.), 617; sentencing, 1492

– Prison guard who fraudulently solicited funds, emergency relief granted (C.D. Cal.), 572
– Promissory notes

– – Broker charged in fraudulent sales (S.D.N.Y.), 11
– – Ponzi scheme, attorney faces SEC charges over promissory note scheme (N.D. Ga.), 660

– Real estate investment trusts (REITs)

– – Acquisition, sending proxies shortly before shareholder meeting did not render them misleading (7th Cir.), 560
– – Ameriprise settles claims of concealed revenue-sharing incentives (SEC), 1307
– – Limited partnership, REIT subsidiary units are securities (D.C. Cir.), 1611
– – Mall developer, factual showing of loss causation not needed to certify class of shareholders (E.D. Va.), 790
– – Merger of units, claims subject to CAFA removal (7th Cir.), 59
– – Stock price manipulation, CEO of REIT settles charges (D. Conn.), 1401

– Retirement homes, SEC claims against bankrupt operator for lying to investors (D. Or.), 409
– Stock options backdating, CEO of home builder indicted (C.D. Cal.), 431
– Timeshares, financier charged with luring investors with bogus claims (C.D. Cal.), 818
– Yacht club project, investment contract sufficiently alleged (M.D. Fla.), 973

RECORDKEEPING

See also BOOKS AND RECORDS INSPECTIONS
– Bunched orders and allocations, futures commission merchant settles claims (CFTC), 584
– FCPA, books and records becoming SEC focus, experts tell conferees, 760
– Forex counterparty settles FINRA claims, 1574
– Investment adviser, claims re allegedly misappropriated funds, incorrectly reported values, and commingled assets (N.D. Ill.), 570
– Supervisory failure, First New York settles FINRA charges re short covering with secondary offering shares, 456

RECREATION

See SPORTS AND RECREATION

REGISTRATION AND LICENSING

– Ed. Note: This heading covers registration of individuals, firms, and stocks. For enforcement targeting registration violations, see UNREGISTERED SECURITIES.
– EU, credit rating agencies, negotiations begun to finalize laws, 558; Parliament passes registration and supervision rules, 757
– Kickbacks, adviser charged with taking payments from unregistered pools (E.D. Wis.), 1012
– Late filings, company urges reversal of registration revocation (SEC), 57; revocation affirmed, 119
– Municipal securities, SEC may seek legislation to capture unregulated entities, official tells conferees, 746
– N.Y., pension funds, Atty. Gen. examining impact of unlicensed intermediaries, 880
– Tex., day trading trainers not entitled to registration exemption for teachers (5th Cir.), 1328
– Unregistered dealers

– – Boiler room scheme, 4 charged (N.D. Ill.), 203; relief defendants, jurisdiction found, 1358
– – False identity, SEC halts operation of unlicensed broker-dealer (C.D. Cal.), 664
– – Reverse merger, promoters charged in biotechnology pump-and-dump scheme (D. Colo.), 464
– – Russian affiliate, sales executive settles charges of assisting solicitation (S.D.N.Y.), 1537

– Utah may not revoke broker license after unsuccessful supervisory failure claim (Utah), 1547

REMOVAL JURISDICTION

– Accounting negligence and fraud claims cannot be removed to federal court on the basis of ancillary federal duty (S.D. Fla.), 883
– CAFA, removal bar of '33 Act does not apply to large class actions (7th Cir.), 59
– Conflict between securities and bankruptcy, appeal certified (D.N.J.), 1672
– Securities Litigation Uniform Standards Act

– – Auction rate securities, attempt to remove state action by brokerage improper, claims remanded (E.D. Mo.), 1456
– – Squeeze-out of minority shareholders, fiduciary breach claims properly remanded, claims not subject to removal must be remanded to state court (9th Cir.), 1898
– – Timeliness, brokerage waits too long to seek removal, case remanded to state court (E.D. Mo.), 1448
– – Trusts and estates, fiduciary breach claims against bank subject to removal (6th Cir.), 1943

REPORTING REQUIREMENTS

See also DISCLOSURE
– Bank holding companies, prospective applicants need to consider new rules, Fed official tells conferees, 747
– Bayou Fund, brother of principal sentenced to prison and fines over fraudulent financial statements (S.D.N.Y.), 761; advisers who recommended fund settle claims (SEC), 765
– Biographies of officers, nonmaterial omissions not misleading (S.D.N.Y.), 572
– Commodity pools

– – CPBG settles claim for failure to file annual reports, 1874
– – Failure to file and distribute, 4 operators settle allegations re annual reports (CFTC), 66

– Enron subsidiary, CFO pleads guilty to falsification of 10K (S.D. Tex.), 1085
– EU, credit rating agencies required to submit annual reports, 757
– Executive compensation, supplemental disclosures may be necessary, experts say, 357
– False financial statements, Delphi executive settles charges (E.D. Mich.), 639
– Futures

– – Electronic filing, CFTC to require, 475
– – Ownership and control reports, CFTC submits advanced notice of proposed rulemaking, 1278

– Indenture agreement, late filing of 10-K is not default or breach (5th Cir.), 750
– IPO registration statements

– – Cosmetics retailer, claims of misleading IPO documents may proceed (N.D. Ill.), 619
– – Offshore drilling company, claims re material misrepresentations may go forward (S.D. Tex.), 165
– – Risk management, prospectus contained sufficient warnings, investor suit dismissed (S.D.N.Y.), 1405
– – Surgical products company, misleading prospectus claims survive dismissal motion (S.D.N.Y.), 212

– Krispy Kreme and executives settle charges over misleading financial statements (SEC), 432
– Late filings, company urges reversal of registration revocation (SEC), 57; revocation affirmed, 119
– Loan losses, enhanced footnotes to be required by FASB, 789
– Management's Discussion and Analysis

See MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

– Misleading prospectuses, views sought from SEC and amici on extent of liability (1st Cir.), 344; en banc review granted, 1400
– Oil and gas reserves, SEC approves rules to modernize reporting, 5; guidance proposed to align with SEC rule, 1464
– PCAOB-registered firms, reporting rules to take effect, 1602
– Pensions accounting, General Motors settles SEC claims re 10-K and 10-Q disclosures (D.D.C.), 139
– Prospectuses, Wachovia settles FINRA claim over failure to deliver, 1207
– Proxies

See PROXIES

– Registration of additional securities, SEC staff holds that S-3 should include 10-K restatements, 1086
– Risk factors, privacy and data security are underreported in SEC filings, report shows, 774
– Schedule 13D

– – Exception for ordinary course of business, Analysis and Perspective, 1628
– – Hostile takeover group, beneficial ownership by members is prerequisite for filing (11th Cir.), 7
– – Modernized reporting rules forthcoming from SEC, official tells conferees, 1488
– – Short-swing profits, hedge funds used swaps to evade reporting (S.D.N.Y.), 81

– Synthetic fuels company and officers charged with reporting violations (S.D. Fla.), 1337
– TARP, companies seek Treasury guidance for requirements, 299
– Unregistered securities, scheme involving options and warrants, SEC finding of annual report disclosure violations upheld (D.C. Cir.), 1252
– XBRL system recommended by SEC to ease filing and improve recall, 138; problematic alignment of XBRL tags with GAAP to be remedied by codification rollout, 383; SEC to hold public seminar, 995

RETAIL INDUSTRY

– Boating supply retailer settles claims over masked earnings shortfall (N.D. Cal.), 1427
– Books and records inspections, menswear investor does not demonstrate reasonable basis for claim (Del. Ch.), 427
– Clothing, class certified in claim asserting concealment of excess inventories (S.D. Ohio), 1036
– Insider trading, redaction suggested as proper course for Abercrombie & Fitch corporate documents containing privileged and non-privileged material (S.D. Ohio), 618
– Jewelry CEO sentenced in fraud scheme (E.D.N.Y.), 837
– Kmart, jury returns verdict against CEO in accounting fraud action (E.D. Mich.), 1086
– Tween Brands, scienter inadequately pled in claims re new stores, discounts, and other promotions (S.D. Ohio), 1249

RETIREMENT

– Arbitration, dismissal of claims against broker for mishandling retirement funds not improper (E.D. Pa.), 1165
– Financial products safety commission

See LEGISLATION, FEDERAL, S 566

– Fla., public retirement funds required to offer “terror-free” option, 1074
– Pensions

See PENSIONS

– Redemption of retiree shares before acquisition was within contract, claims dismissed (Del. Ch.), 881
– SEC to focus on retirement issues, Schapiro tells conferees, 1925
– Target date funds, Kohl (D-Wis) urges SEC to investigate disclosures and holdings, 399

REVENUE RECOGNITION

– Acne drug, class certified in channel stuffing claim (N.D. Cal.), 978
– AIG executives settle charges (S.D.N.Y.), 1503
– Apogee Tech. and officers settle fraud charges (D. Mass.), 995
– Auto parts supplier and executives settle charges (SEC), 1760
– Boating supply retailer settles claims over masked earnings shortfall (N.D. Cal.), 1427
– Cadence Design Systems, class claims dismissed for failure to plead scienter (N.D. Cal.), 1761
– Cardinal Health, officers settle claims (S.D.N.Y.), 1039
– Clothing retailer, class certified in claim asserting concealment of excess inventories (S.D. Ohio), 1036
– Enron, attorneys settle charges re secret agreements (S.D. Tex.), 184
– FASB issues exposure draft on measurement of rights, 635
– GE settles misleading accounting charges (D. Conn.), 1503
– Harris Stratex, ownership interest guides presumption of lead class plaintiff, stipulation of co-leads denied (D. Del.), 1195
– Heating and cooling firm resolves improper revenue recognition claims (W.D. Tex.), 538
– Home builder, SEC files suit against CFO for earnings management scheme (N.D. Ga.), 1282
– IMAX securities class action, lead plaintiff and counsel appointed, 1377
– Insurance, Gen Re executive sentenced in sham reinsurance scheme (D. Conn.), 432; CFO sentenced, 638; assistant general counsel sentenced, 833; CEO of subsidiary sentenced, 1182; cooperating executive given probation, 1762
– Ipsilon Systems, CFO charged, company settles SEC claims (W.D. Wash.), 1760
– Jewelry CEO sentenced in fraud scheme (E.D.N.Y.), 837
– Kmart, jury returns verdict against CEO in accounting fraud action (E.D. Mich.), 1086
– Krispy Kreme and executives settle earnings manipulation charges (SEC), 432
– Lucent, no primary liability for revenue inflation scheme without authority (D.N.J.), 832
– Mortgage company, SEC charges executives of collapsed firm, CEO settles claims (S.D.N.Y.), 838
– Navistar, officials must face claims over misstated financials (N.D. Ill.), 1509
– N.Y., general counsel of software firm disbarred (N.Y. Ct. App.), 941
– Or., car dealership seller must face claims over inflated financials (D. Or.), 1547
– Pasta executives sentenced to prison terms for overstated earnings (W.D. Mo.), 1974
– Phony invoices, CEO faces SEC charges (S.D. Fla.), 1708
– Pleadings, narrative from SEC does not link facts to legal theories, hearing scheduled (D.N.H.), 1355; pleadings found lacking, some claims dismissed, 1912
– PurchasePro

– – CEO receives fine and officer/director bar (D.D.C.), 1803
– – Sanctions, permanent injunction from serving as an officer or director too draconian (D.D.C.), 235

– Reimbursement fraud, Tenet Healthcare COO settles revenue inflation charges (C.D. Cal.), 1762
– Restatements

See FINANCIAL RESTATEMENTS

– Royal Ahold fraud, no inference of scienter for auditors (4th Cir.), 97
– Software company, “parking” scheme claims against partner, dismissal affirmed (9th Cir.), 183
– Solar power products, executives settle revenue recognition scheme claims (D.D.C.), 538
– Stockman, DOJ drops criminal charges, SEC case continues (S.D.N.Y.), 49; SEC must comply with specific discovery requests, 235
– Tyco executives settle SEC fraud actions (S.D.N.Y.), 1364
– United Rentals CFO pleads guilty, settles with SEC (D. Conn.), 1897
– VeriFone, employee settles SEC charges over falsified records (N.D. Cal.), 1708
– Yahoo! inflation via click fraud, claims dismissed (N.D. Cal.), 1230

RICO

See RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS (RICO) ACT

RISK MANAGEMENT

– Banking

– – Holding companies, prospective applicants need to consider new rules, Fed official tells conferees, 747
– – Shareholder value, fundamental changes needed for viable business model, panelists tell conferees, 268
– – Washington Mutual, claims re home loan division must be repleaded due to structural deficiencies (W.D. Wash.), 972

– College savings plan, recommendations of risky investments draw state charges (Or. Cir. Ct.), 706
– Government policy, Pitt advocates for federal programs, 965
– International report evaluates weaknesses in major global financial firms, 1943
– IOSCO releases interim report with recommendations, 910
– IPO, brokerage prospectus contained sufficient warnings, investor suit dismissed (S.D.N.Y.), 1405
– Securitization, witnesses at House Financial Services Comm. hearing discuss retention of risk, 502
– Tax evasion, investor action charges UBS with false statements re internal controls (S.D.N.Y.), 213

RUSSIA

– Foreign securities, Duma approves listing and trade, 659