Corporations and securities brief ~ CIBC pays Enron $250 million to settle suit
James Murdock at 4:06 PM ET
[JURIST] Leading Friday's corporations and securities law brief, the Canadian Imperial Bank of Commerce (CIBC) [corporate website] has agreed to pay Enron Corp. [JURIST news archive] $250 million. The payment follows a a $2.4 billion settlement with Enron shareholders [JURIST report] earlier this week. In a press release, CIBC said that this settlement, made in satisfaction of claims that the bank facilitated accounting fraud, resolves all of Enron's claims against the bank. Bloomberg has more.
In other corporations and securities law news...
- The SEC has sued a Croatian man on suspicion of insider trading related to adidas' takeover of Reebok [AP report]. In a press release, the SEC says that in the days immediately preceding the August 3rd announcement of adidas-Solomon's purchase of Reebok, Sonja Anticevic bought nearly 2000 call option contracts [Wikipedia definition] on Reebok stock which he immediately sold following the announcement of the merger. Reebok's stock price rose around 34% following the announcement and the SEC says that Anticevic made over $2 million on the sale. Anticevic allegedly began wiring the proceeds to offshore bank accounts before the SEC received an injunction against him. Reuters has more.
- The FCC [official website] moved today to deregulate DSL internet service providers [FCC press release, PDF]. DSL, which is carried over standard phone lines, had previously been governed by the same rules as telephone service. The FCC also issued a policy statement encouraging the newly deregulated companies to not engage in anticompetitive practices with their new-found freedom. Reuters has more. Also Friday, the FCC responded to a petition from the US Department of Justice, the FBI and the Drug Enforcement Agency, by determining that providers of certain broadband and voice over Internet Protocol (VoIP) services must be prepared to accommodate law enforcement wiretaps [FCC press release, PDF], just like phone companies.
- As reported earlier on JURIST's Paper Chase, former WorldCom [JURIST news archive] accounting executive Betty Vinson was sentenced Friday to five months in federal prison for her role in the company's collapse. Vinson, who testified against former WorldCom CEO Bernard Ebbers [Wikipedia profile] in his recent criminal trial [JURIST report], was convicted of falsifying accounts and will also spend five months on house arrest. AP has more.
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