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Securities Fraud and Stock Fraud
Stock fraud typically occurs when the issuer of the security makes false statements about the company's status or fails to disclose important facts that may affect stock value. Due to this inaccurate information, investors are induced to purchase securities at artificially inflated prices. Securities lawyers can help consumers with cases involving investment securities and stock fraud.
SECURITIES ARTICLES AND INTERVIEWS
Securities Fraud: When Your Securities Are Not Secure
 Chicago, IL: Although it has been approximately 6 months since Bernard Madoff’s arrest sent shockwaves through the investment industry, the fallout from that arrest still continues. More lawsuits have been filed in the case, alleging securities fraud. People who invested in stocks and securities with Madoff are worried they may not get their money back. Meanwhile, other investors are filing lawsuits against their financial managers alleging stock fraud. [ Read More ]
Class Action Alleging Securities Fraud Will Proceed Against MoneyGram
 Minneapolis, MN: A securities fraud class action will proceed against MoneyGram International alleging stock fraud, even though the plaintiffs failed to assert a primary violation. A US District Court Judge ruled that even though the complaint did not adequately claim violations against MoneyGram, there was sufficient cause to pursue allegations of irregularities in stocks and securities. [ Read More ]
Morgan Keegan Loses, Elderly Woman Wins
 St. Louis, MO: In what can only be described as a victory for the millions of elderly Americans who have been caught up in the maelstrom of bad investor advice by Wall Street firms, Morgan Keegan has been ordered to pay back the investment losses suffered by a St. Louis woman and also pay $50,000 in punitive damages. [ Read More ]
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MORE SECURITIES
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SECURITIES IN THE NEWS
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JUN-05-09: Marcus Schrenker, a 38-year old money manager form Indiana, has pled guilty to deliberately crashing a plane in a residential neighborhood in Florida. It was a botched attempt to fake his own death and escape a crumbling marriage and financial problems. [AP: MONEY MANAGER GUILTY IN PLANE CRASH]
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MAY-22-09: A class action against MoneyGram International will proceed after U.S. District Judge David Doty denied its motion to dismiss allegations of securities fraud because the plaintiffs failed to assert a primary violation.
[COURTHOUSE NEWS SERVICE: MONEYGRAM CALSS ACTION PROCEEDS]
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MAY-11-09: A securities class action launched against Canadian drug maker Biovail was dismissed by a New York court last week. The suit alleged investors had been mislead about the regulatory approval of BVF-033, a formulation of an antidepressant. The suit was filed in 2008. [REUTERS UK: BIOVAIL SUIT DISMISSED]
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APR-22-09: The mining company TVI pacific has agreed to pay $2.1 million to settle 2 current securities class action suits. Both suits alleged the company had misrepresented itself financially in its financial statements of 2007. [MINING WEEKLY: TVI SETTLES SECURITIES CLASS ACTION]
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FEB-17-09: The Pension Fund for Hospital Health Care Employees-Philadelphia and Vicinity has filed a class action lawsuit against Austin Capital Management, alleging the firm lost millions of dollars in pension fund investments due to a lack of due diligence into Bernard Madoff's investment firm and related securities and investments. [STATESMAN: PENSION FUND FILES CLASS ACTION]
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NOV-28-08: The Reserve and TD Ameritrade are facing a potential class action suit brought on behalf of investors who lost money on the Yield Plus Fund. The suit alleges that The Reserve went after riskier investments than it advertised, and that TD Ameritrade advertised the Yield Plus as being "just like a money market." [UPI: TD AMERITRADE, THE RESERVE CLASS ACTION]
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Stock Loss
I have a 401-k through Chrysler Corp. I'm retired but I can still sell or buy stocks in my 401. On 4-07-08 I went online with Merrill Lynch to sell a stock ( aete ) they didn't sell It. Two days later I called Merrill Lynch and they sent the order through, but It Didn't sell. I called again several times. Well they did sell It for a big loss.
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SECURITIES SETTLEMENTS
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Marvell Settles Shareholder Class Action for $72 Million |
Evergreen Wachovia, Settle Securities Allegations over Ultra Short Opportunities Fund |
TD Banknorth Settles Investor Class Action for $50 Million |
Examples of Investment Fraud by Public Companies
- Misrepresentations - the company announces false statements or omits details of the company's financial status or sales performance with intent to attract and retain investors.
- Violations of the Generally Accepted Accounting Principles (GAAP).
- Illegal Insider Trading - employees or officers of the company trade stocks based on non-public information.
- Violations of Employee Retirement Income Security Act (ERISA) - the company's trustees breach their fiduciary duty by allowing employees to trade stock at artificially inflated prices due to undisclosed problems.
- Industries that have experienced stock fraud and securities fraud lawsuits in 2004-2005 include insurance, technology, communications, medical, and utilities.
Examples of Stock Broker Fraud
- Misrepresentation/Omission - a broker intentionally misleads or does not disclose details and risk factors of a certain stock to the client.
- Unsuitability - a broker recommends investments/stocks that are unsuited for the client's risk level and finances.
- Churning - a broker conducting an unnecessary quantity of transactions which generate profit per transaction fees for the broker.
- Overconcentration - a broker fails to diversify a client's investment portfolio.
- Tipping - brokers and brokerage houses tipping clients to buy or sell securities based on non-public information. Also referred to as Illegal Insider Trading which includes brokers selling IPO, pre-public stocks to favored clients/friends.
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Securities Fraud
Investors especially small investors have lost millions upon millions of dollars due to stock fraud.
Companies that trade their stocks have legal responsibilities to those who buy their stock. Stock brokers also have legal obligations to the people they sell their stocks to. If either a company or a broker has committed fraud against you, you may be able to get some of your investment back.
Securities fraud class action lawsuits can be brought against the persons or entities that violated the Securities and Exchange Act of 1934 (the "Exchange Act") and/or the Securities Act of 1933 (the "Securities Act").
Claims can be brought against the issuer of the security, i.e. the public company, the company's officers, directors, or others involved in the violation, including stock brokers, underwriters, or auditors.
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Securities Fraud Legal Help
If you or a loved one has suffered losses from securities fraud, please click the link below to send your complaint to a lawyer to evaluate your claim at no cost or obligation.
Posted on Oct-20-05
Updated on Jun-11-09
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