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Regulators probe bank's role in Facebook IPO
Legal Business |
2012/05/23 16:03
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Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst's negative report about the company before the stock started trading.
Rick Ketchum, the head of the Financial Industry Regulatory Authority, the self-policing body for the securities industry, said Tuesday that the question is "a matter of regulatory concern" for his organization and the Securities and Exchange Commission.
The top securities regulator for Massachusetts, William Galvin, said he had subpoenaed Morgan Stanley. Galvin said his office is investigating whether Morgan Stanley divulged to only some clients that one of its analysts had cut his revenue estimates for Facebook before the stock hit the market on Friday.
The bank said late Tuesday that it "followed the same procedures for the Facebook offering that it follows for all IPOs," referring to initial public offerings of stock. It said that its procedures complied with regulations.
The questions about the role played by Morgan Stanley, the lead underwriter for the deal, add to the confusion surrounding Facebook's IPO. In the most hotly anticipated stock debut in years, the offering raised $16 billion for the social networking company, valuing it at $104 billion. |
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Top Pa. judge charged with campaign corruption
Lawyer News |
2012/05/19 22:28
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State Supreme Court Justice Joan Orie Melvin was charged Friday with illegally using her taxpayer-funded staff in her campaigns for a seat on the state's highest court in a scheme that ensnared her sister, a senator awaiting sentencing on similar charges.
Orie Melvin said outside court that she will vigorously defend herself against the nine criminal charges, which a grand jury report called a "tale of corruption" that she "actively condoned and even promoted."
"I am a woman of faith," Orie Melvin said. "My faith will see me through this. And I will not resign because of these politically motivated charges."
The high court relieved her of judicial and administrative duties Friday, but she remains a Supreme Court justice, on the payroll with a $195,000 salary and full benefits. The court also ordered Orie Melvin's Pittsburgh office sealed to secure records, files and equipment that are property of the court.
The charges come two months after her sister Republican state Sen. Jane Orie was convicted of 14 counts of theft of services, conflict of interest and forgery charges. Orie is scheduled to be sentenced in June, and her attorney has said in court filings that she will resign before then.
The grand jury report said Orie Melvin and her staff used personal email accounts to shield the actual email addresses that generated the messages, hiding the fact that political activities were being handled by the staffers while they were on the state payroll. Orie Melvin also used her state-paid telephone line to solicit support from hundreds of Republican committee members around the state, the report said.
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Texas high court orders state to pay ex-inmate $2M
Headline Topics |
2012/05/19 22:28
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The Texas Supreme Court ordered the state Friday to pay about $2 million to an ex-inmate who spent 26 years in prison for murder before his conviction was overturned, a decision legal experts said could set a new standard for when ex-prisoners should be compensated.
Texas has paid nearly $50 million to former inmates who have been cleared. But state Comptroller Susan Combs had resisted paying Billy Frederick Allen, arguing that his conviction was overturned because he had ineffective lawyers, not because he had proven his innocence.
The state Supreme Court, in a unanimous opinion written by Justice Dale Wainwright, disagreed, saying the state's criminal courts had shown Allen had a legitimate innocence claim and he should be paid.
Jeff Blackburn, chief counsel of the Innocence Project of Texas, which works to free wrongfully convicted inmates, said Friday's ruling could open the door for more compensation claims from ex-prisoners.
"The floodgates are not opening, but what this will do is give a fair shake to people who are innocent," Blackburn said. "This is a major step forward in terms of opening up and broadening the law of exoneration in general."
Texas' compensation law is the most generous in the U.S., according to the national Innocence Project. Freed inmates who are declared innocent by a judge, prosecutors or a governor's pardon can collect $80,000 for every year of imprisonment, along with an annuity.
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Md. highest court recognizes same-sex divorce
Legal Business |
2012/05/18 22:28
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Maryland's highest court ruled Friday that same-sex couples can divorce in the state even though Maryland does not yet permit same-sex marriages.
The Court of Appeals ruled 7-0 that couples who have a valid marriage from another state can divorce in Maryland. The case involved two women who were married in California and denied a divorce in 2010 by a Maryland judge.
The ruling may have limited effect because same-sex weddings, and by extension divorces, are set to start in the state in January. However, opponents of the law passed this year are seeking to overturn it in a potential voter referendum in November.
"A valid out-of-state same-sex marriage should be treated by Maryland courts as worthy of divorce, according to the applicable statues, reported cases, and court rules of this state," the court concluded in a 21-page ruling.
It said Maryland courts should withhold recognition of a valid foreign marriage only if that marriage is "repugnant" to state public policy. The court says the threshold is a high bar that has not been met in the case that it ruled on.
Lawyers for the women told the Court of Appeals that is would be unprecedented for the state not to recognize gay marriages performed elsewhere. |
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