According to the SEC lawsuit that Dell just settled for $100 million, Dell cooked its books from 2002 to 2006 by using "exclusivity" payments from Intel totaling $4.3 billion to inflate its revenue numbers and otherwise fraudulently meet Wall Street analysts' expectations.
Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get "a pretty good grade" from Wall Street -- and from Main Street. But will they prevent another economic meltdown?
An antitrust class action against Apple and AT&T is going forward, charging that Apple's five-year exclusive agreement with AT&T makes a sham of the two-year contracts iPhone users sign with AT&T and is part of an effort to monopolize the iPhone market.
At the Financial Services Inquiry Commission hearing, former Wall Street derivatives executive Steven Kohlhagen claimed derivatives generally played "no role" in causing the financial crisis. This puzzling argument doesn't pass the straight-face test.
Ratings agencies defending against lawsuits claiming that they issued bogus AAA ratings on junk bonds have asserted a First Amendment defense: Their opinions are protected speech. So far, they're not winning the argument.
European proposals aimed at better oversight of the ratings agencies will create a EU-wide watchdog to license and oversee the big three, taking these duties from member nations. But critics say the proposals don't go far enough.
Among today's legal news, the BP criminal probe is underway, Judge Rakoff issues his opinion explaining his dismissal of claims against the ratings agencies, and a study finds that Southern juries are still overwhelmingly white.
The massive financial reform legislation now winding around Capitol Hill promises to seriously rearrange the rating agencies' formerly cozy and profitable business. Here's a look at what's coming.
Proliferating probes into Wall Street's activities don't seem to be hindering big banks' ability to make huge profits -- the big banks just ran up a 61 day streak of profitable days. Since profits are what they're all about, perhaps they don't mind that the financial reform lobbying battle is trending against them -- with Senator Byron Dorgan (D-N.D.) the latest to call for getting even tougher.
Faith-based Integrity Bank folded in 2008. Now, it seems its executives weren't very upright. They've been charged with fraud, conspiracy and bribery. And in this roundup of legal news: Moody's is in more trouble with the SEC over its ratings.
MBIA has sued Merrill Lynch because the CDOs on which Merrill bought insurance from MBIA were AAA-rated junk. MBIA says Merrill knew the CDOs didn't deserve the top rating at the time it insured them. If this case succeeds, big banks may find dud ratings very expensive.
The financial crisis that started with overly indebted Greece is spreading rapidly to engulf Spain, Portugal, and European Union banks. The world may need a TARP-like rescue effort to contain Europe's contagion.
A few years ago, medical device manufacturer Guidant failed to report problems with some of its heart defibrillators, a failure which led to at least six deaths. The Justice Department's proposed settlement involved a $296 million fine and a plea to a couple of misdemeanors, which a federal judge has deemed too light a punishment.
Education publisher McGraw-Hill looks to have recovered from a particularly bruising 2009, posting a profit of $103.3 million, or 33 cents a share, up 65% from $63 million, or 20 cents a share, a year earlier.
Given the stories of inflated ratings leading unsuspecting investors to ruin, you'd think lawsuits against the credit raters would be slam dunks. But no. So far, the ratings agencies are undefeated. Here's why -- and why that streak could be in jeopardy after the latest revelations before Congress last week.