Mitchell Attorneys

Bank of America Reaches $8.5 Billion Settlement

robertmitchell — Sat, 02 Jul 2011 19:58:20 +0000

It was reported this week that Bank of America is close to reaching a $8.5 billion settlement on mortgage backed securities claims from investors that lost money on such claims. See http://www.huffingtonpost.com/2011/06/28/bank-of-america-nears-85b-mortgage-settlement_n_886412.html?ref=email_share. See also http://online.wsj.com/article/SB10001424052702304447804576414222265248768.html?mod=WSJ_hp_LEADNewsCollection. The payment would be the largest such settlement by a financial-services firm to date, exceeding the total profits of the Charlotte, N.C., bank since the onset of the financial crisis in 2008.

If you believe you have been the victim of a securities fraud, and would like to consult with an experienced securities fraud attorney, please call us at 602-468-1411 to discuss your potential matter. Ask for Robert Mitchell.

Supreme Court Decision in Janus Capital v. First Derivative

robertmitchell — Wed, 15 Jun 2011 22:38:44 +0000

On June 13, 2011, the U.S. Supreme Court in a 5-4 decision ruled that liability for misleading statements in connection with securities disclosures ends with the entity that “makes” a statement, not anybody who had a hand in creating it. The decision in Janus Capital Group, Inc., et al. v. First Derivative Traders, No. 09-525, US Supreme Court, 2011, further limited the situations under federal securities laws in which “aiders and abettors” like banks and corporate customers were protected from lawsuits. Federal securities laws are often more restrictive than states securities laws, particularly in the area of aiding and abetting liability. For commentary on the Janus Capital case, please see “Supreme Court Rejects Broad Liability in Janus Case”, Forbes, June 13, 2005, at http://blogs.forbes.com/danielfisher/2011/06/13/supreme-court-rejects-broader-liability-in-janus-case/ and “So No One’s Responsible?”, New York Times, June 14, 2011, http://www.nytimes.com/2011/06/15/opinion/15wed2.html .

Schwab YieldPlus Settlement

robertmitchell — Wed, 12 Jan 2011 16:46:45 +0000

It was publicly reported in the financial press on January 11, 2011 that Charles Schwab Corp. settled claims brought by the US Securities and Exchange Commission over its YieldPlus Fund. Under the settlement, Schwab was ordered to pay $119 million in fines related to misleading statements in marketing its bond mutual funds. The SEC has also filed suit against two Schwab executives charging them with violations of securities fraud laws in the way they marketed, sold and managed the Schwab YieldPlus fund. While this news is welcomed and long overdue, it is unfortunate timing for those that attempted to navigate the FINRA arbitration process on their own over the last two years, a number of whom simply did not have the technical know how to prove their individual cases and may not have been successful in seeking recovery on their own in securities arbitrations. Representing oneself in a securities arbitration proceeding, while technically permissible, is a difficult process when pitted against experienced brokerage firm counsel and securities professionals in their chosen forum.