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Securities Archives

SEC Sues Elon Musk Over his Tweets to Take Tesla Private

On September 27, 2018, the U.S. Securities and Exchange Commission ("SEC") sued Tesla CEO, Elon Musk ("Musk"), alleging his August tweets about being prepared to take his Tesla private at a much higher price than its stock at the time were baseless assertions and violated federal securities laws.

A look at Finra-overseen securities arbitration

As an investor, how do you resolve a material dispute with your financial adviser and/or securities brokerage? Where do you turn for help if you reasonably suspect that one or more professsionals you justifiably rely upon have defrauded you through illegal behavior?

SEC Alleges Two Brokers Made $4.6 Million Through High-Frequency Trading Fraud

On September 7, 2018, the U.S. Securities and Exchange Commission ("SEC") filed two federal lawsuits on accusing New York-based brokers, Emil Botvinnik ("Botvinnik") and Jovannie Aquino ("Aquino"), of violating the anti-fraud provisions of the federal securities law and earning a combined $4.6 million through excessive high-frequency trading.

Citigroup 401(k) Plan Committee to Settle Mismanagement Suit for $6.9 Million

Members of the class of participants in the Citigroup Inc. ("Citigroup") 401(k) retirement plan are finalizing a $6.9 million settlement to conclude an Employee Retirement Income Security Act ("ERISA") suit alleging the committees charged with managing the plan selected funds associated with Citigroup over less expensive options.

Former Equifax Employee Pleads Guilty to Insider Trading Accusations

On July 23, 2018, Sudhakar Reddy Bonthu ("Bonthu"), a 44-year-old former software development manager at Equifax Inc. ("Equifax"), pled guilty to a single count of insider trading in the Northern District of Georgia. Bonthu is accused of leveraging his inside information about the credit reporting company's massive data breach to earn over $70,000.

Class of Investors Certified in Stock Suit Against Twitter

On July 16, 2018, Northern District of California Judge Jon S. Tigar granted class certification to a group of investors who purchased shares of Twitter Inc. ("Twitter" or the "Company") between February 6, 2015, and July 28, 2015 (the "Class Period"), in a case alleging that Twitter exaggerated its user engagement, resulting in an almost 15 percent drop in its stock shares in a single day.

Merrill Lynch to Pay $42 Million Penalty for Obscuring Trade Locations

The brokerage firm, Merrill Lynch Pierce Fenner & Smith Inc. ("Merrill Lynch"), agreed on June 19, 2018 to pay a $42 million fine to the U.S. Securities and Exchange Commission ("SEC") for misleading its customers as to where their trades actually occurred. This agreement follows a previous $42 million fine in March settling identical allegations from the office of the New York Attorney General.

Judge Isn't Convinced by Defense's Argument at NYU ERISA Trial

U.S. District Judge for the Southern District of New York, Katherine B. Forrest, was not convinced by the May 16 closing arguments in an Employee Income Retirement Security Act ("ERISA") class action lawsuit against New York University ("NYU"). The suit alleges that NYU's retirement committee mismanaged employees' retirement savings, and Judge Forrest interrupted defense counsel multiple times to question if the committee members were knowledgeable enough to oversee NYU's two plans.