Corporations and securities brief ~ Fannie Mae whistleblower to testify to House subcommittee

In Tuesday's corporations and securities law news, Roger Barnes, the Fannie Mae whistleblower who raised the company's accounting problems, will testify before a House Financial Services subcommittee on October 6. Meanwhile, the mortgage financier announced it has discussed with regulators the possibility of an earnings restatement. Reuters has more.

In other news...

  • As previously reported on JURIST's Paper Chase, Amazon.com and Microsoft announced that they have jointly filed a federal lawsuit against Ontario-based Gold Disk Canada, accusing the company of misusing Microsoft's Hotmail services and forging Amazon's domain name when sending millions of spam e-mails. Read press releases from Amazon and Microsoft. Amazon also has catalogued complaints filed by the company in 2003, where Amazon seeks to stop e-mail address spoofing. AFP has more.

  • As previously reported on JURIST's Paper Chase, The European Union's Court of First Instance has annulled the European Commission decision prohibiting a merger between WorldCom and Sprint, ruling that the Commission no longer had the power to adopt the decision after it had been notified that the merger had been abandoned. Read the court's judgment and a press release [PDF] summarizing the decision. Read the MCI press release reacting to the decision here. JURIST's Paper Chase has background on the case. Reuters has more.

  • A federal court jury in Tennessee has ordered the world's largest maker of spinal implants, Medtronic Inc., to pay at least $109 million to an inventor for violating contracts and infringing his patents. Bloomberg has more.

  • Euro Disney has agreed with its lenders to extend a debt plan designed to keep the park operator from declaring bankruptcy. Read the Euro Disney press release here [PDF]. AP has more.

  • German-American automaker DaimlerChrysler and Canadian transportation company Bombardier have settled a two-year dispute over Bombardier's purchase of DaimlerChrysler's Adtranz train-equipment business unit in 2001 by adjusting the price of the unit down by $209 million, or 28 percent. Read the Bombardier press release. AP has more.

  • The SEC announced it brought civil fraud and insider trading charges against former top executives of bankrupt credit card issuer NextCard Inc. saying the company used accounting changes to mask business troubles that began in November 2000. Read the SEC litigation release announcing the charges here. Reuters has more.

  • Wachovia Corp. announced the SEC may recommend an action against its brokerage unit for alleged improper mutual fund trading. AP has more.
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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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