Corporations & securities brief ~ SEC may bring action against NYSE News
Corporations & securities brief ~ SEC may bring action against NYSE

[JURIST] Leading Wednesday's corporations and securities law news, the SEC [official website] will bring an enforcement action against the NYSE [official website] for failing to supervise its floor-trading specialists. The action, which is expected to be brought by mid-February, will most likely result in a negotiated settlement of the long-running probe. The SEC is also expected to reach similar agreements with smaller stock exchanges. Reuters has more.

In other corporations and securities law news…

  • OfficeMax Inc. [corporate website] announced a delay in the release of financial results after an internal probe revealed employees had been fabricating documentation for the company's $3.3 million in billings. OfficeMax also announced the resignation of CFO Brian Anderson. Anderson will be replaced by former CFO Ted Crumley on an interim basis until the company finds a permanent replacement. Read the OfficeMax press release announcing the moves. Reuters has more.
  • The NASD [official website] announced it has censured and fined Banc One Securities Corp. $400,000 over violations involving late trading of mutual funds. The fine is the largest imposed for such a violation by the NASD. Read the NASD press release. AP has more.
  • Boxing promoter Don King [Don King Productions corporate website] filed a defamation suit against ESPN [media website] claiming he was portrayed in a false light in a segment aired last May on the cable sports channel. King is seeking over $2.5 billion in damages. AP has more.
  • The drug maker Mylan Laboratories Inc. [corporate website] appears to be getting out of its contentious $4 billion takeover bid for rival King Pharmaceuticals Inc. [corporate website] after King announced a restatement of its earnings for 2002 and 2003. Read the Mylan press release commenting on the bid. AP has more
  • The NYSE has imposed a record $19 million fine on investment bank Morgan Stanley [corporate website]. The fine is part of an agreement reached with the company last year over regulatory and supervisory lapses. Read the NYSE press release. Reuters has more
  • Motorola Inc. [corporate website], the world's second-largest mobile-phone maker, announced President Mike Zafirovski has resigned. Zafirovski will not be replaced as the company's four division chiefs will report directly to the CEO. Read the Motorola press release. Bloomberg has more.
  • Microsoft Corp. [corporate website] announced finance chief John Connors [official biography] has resigned and will join a venture capital firm in Washington. Read the Microsoft press release. Bloomberg has more.

Click for previous corporations and securities law news.

THIS DAY @ LAW

South Africa becomes first country on continent to legalize same-sex marriage

Same-sex marriages became legal in South Africa on November 30, 2006 as the country's Civil Union Act, 2006 went into effect, making South Africa the only country on the African continent to legalize same-sex marriage. Read the Civil Union Act, 2006.