In Wednesday's corporations and securities law news, the Justice Department announced today that a federal grand jury has indicted eight former Peregrine Systems, Inc. executives. The eight executives allegedly took part in a conspiracy to inflate company earnings which ultimately resulted in losses amounting to billions of dollars. Six of these executives will face related civil fraud charges filed by the SEC. Read the DOJ press release here. Read the SEC press release here. Read the SEC complaint here [PDF]. AP has more.
In other news...
- As reported earlier today on JURIST's Paper Chase, the United States will file a complaint with the World Trade Organization over allegedly unfair subsidies provided to Airbus by European governments. Read the European Union press release responding to the action here. The Office of the US Trade Representative has a press release. AFP has more.
- RS Investment Management, a San Francisco-based investment adviser to ten mutual funds, agreed to pay a $25 million fine and undertake compliance reforms after the SEC charged the firm, its current CEO, and its former CFO for engaging in market timing. Read the SEC press release here. Read the SEC administrative proceeding release here [PDF]. CBS MarketWatch has more. The firm also settled with New York Attorney General Eliot Spitzer and will pay a $30 million fine to settle allegations of "excessive" market timing in its mutual funds. Read the RS Investment press release with details about the settlement here. Read the Spitzer press release here. AP has more.
- US House and Senate negotiators agreed today to replace the $50 billion tax break for US exporters which the WTO had ruled to be illegal with a $76.5 billion tax cut for manufacturers along with new incentives for US companies to expand abroad. Read the House Committee on Ways and Means press release announcing the deal here. Read more information about the competing bills here. Bloomberg has more.
- Fannie Mae CEO Franklin Raines provided testimony before a Congressional hearing defending the mortgage company's accounting practices. Read the prepared testimony here. The Financial Times has more.
- Alitalia announced they have agreed on payoffs for 3,700 employees set to lose their jobs which should open the way to save the airline from bankruptcy. BBC has more.