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Goldman agrees to settle mortgage debt class action
Court Issues |
2012/07/20 22:39
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Goldman Sachs Group Inc has agreed to settle a class-action lawsuit with investors who claimed losses on $698 million of securities backed by risky mortgage loans issued by defunct subprime lender New Century Financial Corp.
Lawyers for the investors said in a letter filed in U.S. District Court in Manhattan on Tuesday that a proposed settlement had been reached. Terms were not immediately disclosed, though they are expected to be included in court papers filed by July 31.
Goldman is one of many banks accused by U.S. legislators and regulators of fueling the nation's housing and financial crisis by misleading investors about the quality of mortgage debt they sold.
A federal judge in February ordered Goldman to face the class-action lawsuit that accuses it of defrauding investors in GSAMP Trust 2006-S2, a $698 million offering of certificates backed by second-lien home loans.
The loans were made by New Century, a subprime mortgage specialist that went bankrupt in 2007.
The investors, led by the Public Employees' Retirement System of Mississippi, contend the offering documents contained materially untrue statements about the underwriting and appraisal standards used by California-based New Century, the mortgage originator. Goldman securitized and issued the certificates. |
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Ohio court to hear appeal of teacher in Bible case
Court Issues |
2012/07/05 22:07
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The Ohio Supreme Court on Thursday agreed to hear the appeal of a fired public school science teacher who kept a Bible on his desk and was accused of preaching religious beliefs in class.
The Mount Vernon School Board dismissed John Freshwater last year after investigators reported that he preached Christian beliefs in class when discussing topics such as evolution and homosexuality, and was insubordinate in failing to remove the Bible from his classroom.
The Supreme Court's 4-3 decision Thursday to hear Freshwater's appeal of his firing sets the stage for written and oral arguments before the court later this year.
The court said Freshwater can argue that it is unconstitutional to fire someone without clear guidance on what teaching materials or methods are acceptable. Freshwater also can argue that it is unconstitutional to fire someone over the mere presence of a religious text like the Bible in the classroom. |
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Wis. Supreme Court upholds damages in drug lawsuit
Court Issues |
2012/06/22 17:39
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The Wisconsin Supreme Court on Friday upheld damages that were awarded in a lawsuit the state brought against a prescription drug company accused of inflating prices.
The lawsuit dates back to 2004 when then-Attorney General Peg Lautenschlager sued 36 drug companies alleging they inflated wholesale prices to get larger payments from Medicaid, private insurers and consumers.
The case against Pharmacia Inc. was the first to go to trial, and in 2009 a jury found that the drug maker violated the state's Medicaid fraud law 1.44 million times over a decade. After reviewing the evidence, the judge found the actual tally was 4,578 and ordered the company to pay $4.5 million in forfeitures and other costs. The jury also awarded $9 million in damages.
Pharmacia appealed, arguing that the jury incorrectly calculated the damages, that the number of violations should be reduced to zero, and that a jury trial was improper. |
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Ex-AT&T executive pleads guilty in NY insider case
Court Issues |
2012/06/19 16:30
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A former executive at AT&T has pleaded guilty in New York to charges in an insider trading scheme that authorities say involved the passing of secrets disguised as expert guidance.
Alnoor Ebrahim pleaded guilty Monday in federal court in Manhattan to charges of conspiracy to commit securities fraud and wire fraud. He was formerly an associate director of channel marketing at AT&T.
Prosecutors say the information that Ebrahim provided through his work for an expert networking firm involved information about product sales for the company's handset devices.
The government said Ebrahim was paid more than $180,000 to serve as a consultant for employees of Manhattan-based investment firms. |
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