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Bank of America settlement faces challenge
Legal Business |
2011/07/05 22:24
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Bank of America's $8.5 billion settlement with investors over poor-quality mortgage bonds is facing a new challenge.
On Tuesday, a group of bond investors calling themselves Walnut Place said they objected to the terms of the settlement. In a filing with the New York Supreme Court, the investors said they wanted to be excluded from the settlement that was struck after negotiations between the bank and 22 institutional investors such as BlackRock Inc., the Federal Reserve Bank, and Pimco. The settlement was meant to cover a broader group of investors being represented by a trustee.
The Walnut Place group said the 22 investors were self-appointed and didn't represent or solicit the views of the broader group of bondholders. The group also said the talks were held in secret.
A Bank of America spokesman Lawrence Grayson said in a statement that the conversations between the bank and investors were publicly disclosed and were far from secretive. The settlement agreement was designed to give certificate holders, like those behind the Walnut Place entities, an opportunity to have any objections heard, the statement read. |
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14.5 Million Dollar Jury Verdict Awarded Against State Farm Insurance
Headline Topics |
2011/07/04 00:14
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A six-week trial in Hamilton County Court ended yesterday afternoon with the award of a $14.5 million jury verdict for Joseph Radcliff and his restoration company, CPM Construction of Indiana, against State Farm Insurance.
State Farm had filed suit for insurance fraud and RICO (Racketeer Influenced and Corrupt Organizations) claims against Radcliff and CPM.nbsp; The case arose out of work done by Radcliff and CPM following the April 2006 hailstorm.nbsp; Radcliff and CPM’s allegations were that after State Farm received negative publicity in the Indianapolis media for denying hail damage claims, State Farm made unfounded claims of fraud against Radcliff and instigated the filing of felony charges against him.nbsp; Those charges were dismissed by the Marion County Prosecutor, but the negative publicity resulted in Radcliff’s personal reputation and business being destroyed.
Not only did the jury find that State Farm’s claims against Radcliff were baseless, but they also found that the Radcliff’s allegations of being defamed by State Farm were true. The jury ordered State Farm to pay Radcliff $14.5 million.
Radcliff was represented by Will Riley, lead trial counsel of the law firm Price Waicukauski amp; Riley, LLC along with attorneys Joe Williams, James Piatt and Jamie Kendall of the same firm and Mark McKinzie, Partner in the law firm Riley Bennett amp; Egloff LLP.
Riley stated, “It was a tribute to the American jury system that one man can take on the largest insurance company in the nation and win.”nbsp; McKinzie agreed, stating “This sends a strong signal to Bloomington, Illinois that Hoosiers will not put up with this sort of conduct.” Radcliff commented “I am grateful to those who believed in me and helped me get the true facts before the jury and to the jury for giving me, and my failed company, justice.”
Price Waicukauski amp; Riley, LLC is a law firm known for its representation of clients in complex litigation. Riley Bennett amp; Egloff, LLP is a law firm known for advising and representing businesses and their owners in various litigation matters. |
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Former Wyoming governor joins law firm
Headline Topics |
2011/07/03 00:14
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Former Wyoming Gov. Dave Freudenthal has joined the international law firm of Crowell amp; Moring as senior counsel.
Freudenthal says in a telephone interview with The Associated Press that the firm will open an office in Cheyenne, where he will be based. He will work for the firm's Environment and Natural Resources Group.
He says he will advise clients on issues that he handled during his two terms as governor, including minerals, natural resources development and environmental permitting.
Freudenthal says he will continue to teach at the University of Wyoming College of Law and serve on the Arch Coal Inc. board of directors.
Crowell amp; Moring has nearly 500 lawyers with offices in Washington, New York, Los Angeles, London, Brussels and elsewhere. |
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Mich. man sues, wants Chevron stock at '04 price
Headline Topics |
2011/07/03 00:14
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A former lawyer intrigued by the global demand for energy says he chose to invest $100,000 in oil giant Chevron Corp. back in 2004, a smart stock bet that now would have doubled seven years later.
But Perry Christy has a big problem: He says Chevron's stock agent never deducted money from his bank account. As a result, he has no records to show he actually owns a certain number of shares.
So Christy, 69, is suing Chevron and Mellon Investor Services and seeking an extraordinary remedy. He wants a federal judge to declare that he should be credited with buying the stock at a June 2004 price, plus any additional shares that would have piled up by reinvesting dividends. Then he'll pay $100,000.
Based on the terrific rise in San Ramon, Calif.-based Chevron's stock, it would be like winning the lottery—and then buying a ticket.
There was some kind of mix-up on the day I placed the order, Christy insisted in an interview at his home in the Detroit suburb of Northville. Whether mechanical or electronic, I don't think we'll ever know. But it's their screw-up. When you deal with any large bureaucracy, people are focused on their own narrow niche.
After more than a year in court, Chevron and Mellon smell a scam and want the case dismissed, even suggesting that Christy's story of a genuine yet botched investment simply is a lie. |
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