In Thursday's corporations and securities law news, General Electric has settled with the SEC over its failure to disclose former CEO Jack Welch's large retirement package. The SEC gave GE a cease-and-desist order but imposed no other sanctions. Read the SEC press release announcing the settlement here. Read the GE press release here. Read the SEC cease-and-desist order here. Reuters has more.
In other news...
- Lehman Brothers Holdings Inc., the fifth-biggest US securities firm, has reportedly settled a suit filed by investors over the company's role as an underwriter for Enron. Lehman Brothers agreed to pay $222.5 million but will admit to no wrongdoing. Bloomberg has more.
- As reported earlier on JURIST's Paper Chase, former Computer Associates chairman and CEO Sanjay Kumar and former executive vice president of sales Stephen Richards pleaded not guilty today to allegations of a massive securities fraud involving the company. Read the complaint against Kumar and Richards here [PDF]. UPI has more.
- Halliburton Co. announced a major restructuring of KBR, its engineering and construction subsidiary. The company is said to be considering selling or spinning off the division should the stock performance fail to improve once costly asbestos litigation is resolved. Read the Halliburton press release announcing the move here. AP has more.
- A federal bankruptcy judge approved a $50 million loan to Interstate Bakeries Corp. today so the nation's largest wholesale baker can continue operating for another month. The company also announced the resignation of chief executive James Elsesser. AP has more.
- Trump Hotels & Casino Resorts Inc. and investment banker DLJ Merchant Banking Partners announced a bailout plan for the bankrupt casino has been terminated "by mutual agreement." AP has more.
- In other SEC related news, the SEC announced a $2.5 million settlement with former Hawaiian Airlines Inc. Chief Executive John Adams over claims he profited by withholding news of the airline's deteriorating finances. The airline will not have to pay any part of the penalty. Read the Hawaiian Airlines press release here. Read the SEC press release announcing the settlement here. Read the SEC cease-and-desist order here. Dow Jones has more.
- Siebel Systems, a company charged by the SEC under Regulation Fair Disclosure (RFD) for disclosing material nonpublic information during two private events which contrasted earlier negative comments, will challenge the 4-year-old rule by asserting it violates the company's First Amendment right to free speech. The San Francisco Chronicle has more.
- The SEC has approved a new NASD rule which among other things mandates periodic meetings among brokerage companies' senior managers, requires regulated broker-dealers to designate a chief compliance officer, and mandates compliance officers discuss and address any emerging or significant compliance problems. Read the NASD press release announcing the approval here. UPI has more.