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Business Failures

March 3, 2005 | From Reuters
Citigroup Inc. said Wednesday that it would pay $75 million to settle a lawsuit brought by investors over its role in the collapse of telecommunications network provider Global Crossing Ltd. Citigroup, which was one of Global Crossing's bankers, was accused in the class action of issuing hyped research reports and failing to disclose conflicts of interest. It said the settlement resolved claims of investors in Global Crossing and its Asia Global Crossing Ltd. affiliate from Feb. 1, 1999, to Dec.
February 16, 2005 | Marc Lifsher Times Staff Writer, Times Staff Writer
Credit Lyonnais and the French government agreed Tuesday to pay $600 million to settle their part of a long-running legal battle over the 1991 collapse of Executive Life Insurance Co. The settlement of two consolidated lawsuits brought by California Insurance Commissioner John Garamendi and a Bay Area company, Sierra National Insurance Holdings Inc., is expected to be endorsed today by a U.S. District Court judge in Los Angeles.
January 6, 2005 | From Times Wire Services
Ten former outside directors of WorldCom Inc. have reached a $54-million agreement to settle part of a shareholder lawsuit over accounting fraud that led to the largest bankruptcy case in U.S. history. Max Bobbitt, a former chairman of WorldCom's audit committee, said Wednesday that a group of directors had reached a settlement with investors. Sean Coffey, a lawyer for shareholders, said part of the settlement would be paid by the directors themselves.
December 29, 2004 | From Associated Press
The billionaire Pritzker family, which co-owned a suburban Chicago bank that failed three years ago, appears set to receive tens of millions of dollars in a settlement involving the bank's collapse. Investigators for the U.S. Treasury, the Federal Deposit Insurance Corp. and Congress blamed risky business strategies by Superior Bank's management for the collapse, but they also cited failures on the part of Superior's outside auditing firm, Ernst & Young.
September 24, 2004 | From Associated Press
Commerce One Inc., an Internet software maker valued at $20 billion at the peak of dot-com mania, is poised to go out of business as a pauper. The company delivered the sobering news in a Securities and Exchange Commission filing that warned shareholders should not expect to receive anything after Commerce One closes its doors. The end appears imminent, although Thursday's disclosure did not set a specific timetable.
July 4, 2004 | Eric Slater, Times Staff Writer
The small company, launched to disprove the maxim that to turn a profit in the garment industry you had to have nonunion workers toiling for low wages in a bare-bones factory, had the glamorous beginnings of a bubble-era dot-com. Ben Cohen of Ben & Jerry's ice cream fame poured in $1.5 million and beamed for the cameras at the opening of TeamX in 2002. Los Angeles Mayor James K. Hahn was on hand for the celebration. So was singer Michelle Shocked.
February 25, 2004 | From Associated Press
An executive who presided over the collapse of MCA Financial Corp. that cost investors more than $250 million pleaded guilty Tuesday in Detroit to charges that he conspired to commit fraud and lied in corporate statements. Patrick Quinlan Sr., 56, of Grosse Pointe Farms, Mich., faces up to 10 years in prison and $500,000 in fines under a plea agreement with federal prosecutors. The former chairman and chief executive of the failed Michigan mortgage firm also was ordered to pay $256.
February 15, 2004 | John J. Goldman, Times Staff Writer
Lutece, a landmark of French cuisine in the United States, served its last supper Saturday -- a special Valentine's dinner seasoned with regrets -- then shut its front door and went out of business. For its final night, the restaurant, which for decades was the epitome of exquisite dining and decor but which fell on hard times in recent years and fought to meet expenses, was packed with patrons.
February 11, 2004 | From Bloomberg News
Milan prosecutors probing the collapse of Parmalat, once Italy's biggest food and dairy company, are investigating current and former employees at seven banks, people familiar with the probe said. Citigroup Inc., Bank of America Corp., Deutsche Bank, Morgan Stanley, UBS, Banca Intesa's fund unit Nextra and Banca Popolare di Lodi were added to the probe's official roster, said the sources, who asked not to be named.
January 15, 2004 | Dana Calvo and Nancy Rivera Brooks, Special to the Times
Andrew and Lea Fastow, the onetime Enron Corp. power couple who held this city in thrall as they wrangled the most important deal of their lives, pleaded guilty to fraud-related charges Wednesday, opening the door for an insider's tour of the failed energy merchant's misdeeds. Andrew Fastow, the former finance chief who built Enron's complicated web of off-the-books partnerships to hide debt and boost profit, accepted a possible 10-year sentence.
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