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Securities Industry Suits

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CALIFORNIA | LOCAL
June 8, 1999 | E. SCOTT RECKARD, TIMES STAFF WRITER
Bringing lawsuits over Orange County's financial collapse nearly to a close, a dozen Wall Street firms agreed to pay Orange County $20.8 million Monday for their roles in the nation's largest municipal bankruptcy. The settlements increase the county's total recovery to $860.6 million--about half of what it lost in 1994 on investments that backfired. The firms that settled Monday were accused of contributing to the debacle by providing credit or risky securities to then-Treasurer Robert L.
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BUSINESS
August 28, 1999 | DAVAN MAHARAJ, TIMES STAFF WRITER
A federal appeals court ruled Friday that shareholders who did not purchase stock in a company's public offering could still file a securities fraud lawsuit against the firm for omitting critical information in its registration documents. The ruling revived shareholders' claims against Dignity Partners Inc., a San Francisco firm that was established to buy life insurance policies mainly from terminally ill people with AIDS.
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BUSINESS
April 17, 1997 | THOMAS S. MULLIGAN, TIMES STAFF WRITER
In one of the largest securities arbitration judgments ever, a Pasadena physician won a $10-million punitive damage award against four principals of the defunct penny-stock brokerage Stratton-Oakmont Inc. Philip M. Aidikoff, attorney for Dr. F. Clark Gardner, said he believes it is the largest punitive award that an individual investor has ever won in an arbitration case before the National Assn. of Securities Dealers.
BUSINESS
July 24, 1999 | (Edmund Sanders)
A private spat between two of Orange County's best-known investment advisors turned public when Byron Roth, chairman of Newport Beach-based Cruttenden Roth, accused his partner and former boss, Walter Cruttenden III, of stealing clients and employees for a new Internet venture.
BUSINESS
September 26, 1992 | TED JOHNSON, SPECIAL TO THE TIMES
Federal authorities have sued two Newport Beach companies linked to schemes that allegedly bilked thousands of investors out of at least $20 million through the sale of precious metals and foreign currencies. The Federal Trade Commission filed a lawsuit this week against Unimet Credit Corp. and UnimetTrading Corp., which it charged with funding and providing training expertise for three allegedly fraudulent dealers: Osborne Precious Metals Inc. in Los Angeles, Western Trading Corp.
BUSINESS
October 29, 1998 | From Associated Press
Here are the people and companies charged by the Securities and Exchange Commission in its crackdown on illegal Internet stock promotion. The first group settled the cases, neither admitting nor denying wrongdoing. The second group of cases are pending. Settled Cases * John D. Attalienti and Barrow Street Research. * Donald A. Baillargeon (Emerging Company Report), Los Angeles. * Everett Gust and High Growth Publishing Group (Portfolio Prospects and High Growth newsletters), Costa Mesa.
BUSINESS
March 12, 1997 | JAMES S. GRANELLI, TIMES STAFF WRITER
A Securities and Exchange Commission inquiry into Orange County's investments in 1994 is coming back to haunt the agency as it tries to hold Wall Street firms accountable for the county's $1.64-billion investment debacle. The agency is resisting attempts by the investment banker CS First Boston to release information on the SEC's own review of the county's portfolio--a review that showed no wrongdoing by the county.
BUSINESS
September 3, 1993 | SUSAN CHRISTIAN, TIMES STAFF WRITER
Colton Financial Inc., which promoted the now scandal-ridden Hill Williams Development Corp., has abandoned its authority to sell securities to the public. The former brokerage withdrew its registration with the National Assn. of Securities Dealers and surrendered its state broker-dealer license to the California Department of Corporations. But its actions do not absolve it of liability in pending lawsuits or disciplinary action by the dealers association.
BUSINESS
April 17, 1997 | Bloomberg News
Investor attorneys are increasingly using state courts to bring fraud lawsuits against companies in an apparent attempt to circumvent a new federal law, a Securities and Exchange Commission study found. The law, passed by Congress in December 1995 over President Clinton's veto, seeks to curb frivolous class-action complaints by investors in federal court.
BUSINESS
April 11, 1997 | Karen Kaplan
Top executives from 97 California high-tech companies and 84 other firms around the country urged congressional leaders to support nascent legislation to stem frivolous securities lawsuits. A letter from Apple Computer's Gilbert Amelio, Intel's Andrew Grove, Oracle's Larry Ellison, Sun Microsysten's Scott McNealy and others seeks a new law that would require all securities cases against nationally traded companies to be filed in federal court.
BUSINESS
June 16, 1999 | E. SCOTT RECKARD and JEAN O. PASCO, TIMES STAFF WRITERS
Five years after its financial meltdown caused the nation's largest municipal bankruptcy, Orange County on Tuesday dropped its final lawsuit from the debacle, clearing the way for 200 cities, schools, other agencies and the county itself to split up $860.7 million. The money, generated from other lawsuits pursued by the county, will nearly make whole most of the investments in the county treasury and is far more than most observers had predicted would be recovered.
CALIFORNIA | LOCAL
June 8, 1999 | E. SCOTT RECKARD, TIMES STAFF WRITER
Bringing lawsuits over Orange County's financial collapse nearly to a close, a dozen Wall Street firms agreed to pay Orange County $20.8 million Monday for their roles in the nation's largest municipal bankruptcy. The settlements increase the county's total recovery to $860.6 million--about half of what it lost in 1994 on investments that backfired. The firms that settled Monday were accused of contributing to the debacle by providing credit or risky securities to then-Treasurer Robert L.
BUSINESS
June 2, 1999 | E. SCOTT RECKARD, TIMES STAFF WRITER
An appeals court has refused to lift a major legal hurdle to Orange County as it pursues a $3-billion lawsuit blaming the bond rating agency Standard & Poor's for failing to warn of the dangerous investments that plunged the county into bankruptcy in 1994. In a decision Thursday, the 9th U.S. Circuit Court of Appeals refused to review federal Judge Gary L. Taylor's ruling that S&P's work while rating the county's ability to repay its bondholders is covered by the 1st Amendment.
CALIFORNIA | LOCAL
May 14, 1999 | KAREN ROBINSON-JACOBS, TIMES STAFF WRITER
The Securities and Exchange Commission filed suit Thursday against the head of the Woodland Hills-based Papashon restaurant chain, alleging that he and his company defrauded 1,300 investors out of $21.6 million in a scheme to raise money for restaurants that were never built. According to officials with the SEC, Jonathan C. Papa, chairman and chief executive of Papa Holdings Inc.
BUSINESS
December 22, 1998 | From Bloomberg News
Merrill Lynch & Co. is being sued by Appaloosa Investment Ltd. of Chatham, N.J., for allegedly disclosing confidential details about the latter's purchase of $64 million in Orange County notes in 1995. The suit, filed in New York State Supreme Court in Manhattan, seeks $11.3 million in damages. It claims Merrill disclosed confidential information about the note sale to help settle allegations that Merrill was to blame for Orange County's bankruptcy in 1994.
BUSINESS
November 19, 1998 | DEBORA VRANA, TIMES STAFF WRITER
The National Assn. of Securities Dealers recently got a little more power. A federal appeals panel has ruled that the NASD, the self-regulatory association that operates the Nasdaq market and polices broker-dealers, cannot be sued in state court for its enforcement actions. The ruling by the U.S. 9th Circuit Court of Appeals expands the NASD's immunity, already recognized in federal court, to the state courts and gives it more power when regulating companies that issue public securities.
BUSINESS
June 28, 1996 | KATHY M. KRISTOF, TIMES STAFF WRITER
California could become a mecca for securities litigation if a November ballot initiative sponsored by plaintiffs' lawyers is approved by voters, according to a securities law expert. "It is difficult to overstate the importance of this November initiative," said Joseph A. Grundfest, a former commissioner for the Securities and Exchange Commission and a professor at Stanford University Law School. "If this passes, California will dominate securities litigation nationwide."
BUSINESS
December 6, 1996 | From Times Staff and Wire Reports
With the right to sue over certain claims expiring today, Orange County filed six lawsuits Thursday against more than 20 brokerage houses and others for their alleged roles in the county's historic bankruptcy. The lawsuits were filed in U.S. Bankruptcy Court in Santa Ana mainly because the county wanted to make sure that it protects its right to take legal action against potential defendants before the statute of limitations expires today, the second anniversary of the county's bankruptcy.
BUSINESS
October 29, 1998 | From Associated Press
Here are the people and companies charged by the Securities and Exchange Commission in its crackdown on illegal Internet stock promotion. The first group settled the cases, neither admitting nor denying wrongdoing. The second group of cases are pending. Settled Cases * John D. Attalienti and Barrow Street Research. * Donald A. Baillargeon (Emerging Company Report), Los Angeles. * Everett Gust and High Growth Publishing Group (Portfolio Prospects and High Growth newsletters), Costa Mesa.
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