A case brought by the SEC last month accusing a Deutsche Bank Securities bond salesman and a former Millennium Partners hedge fund manager of insider trading in credit default swaps — the derivatives blamed for much of the economic meltdown — has kept a low profile but could prove to be significant. The case marks the first time the SEC has gone after trading in credit default swaps, and it comes as debate rages over how to regulate them and other increasingly creative and complex financial products.
Posts on ‘July 6th, 2009’
Litigation Over Johnson & Johnson Antibiotic Levaquin Designated N.J. Mass Tort
The New Jersey Supreme Court has designated mounting litigation over the Johnson & Johnson antibiotic Levaquin as a mass tort and has assigned it to an Atlantic County, N.J., judge. The suits charge that the drug, which is prescribed for bacterial infections of the lungs, urinary tract and skin, has caused Achilles’ tendon ruptures and other damage. Johnson & Johnson had supported mass-tort designation but asked for venue in Middlesex County, N.J., where its headquarters is located.
Judge Denies Class Certification to Magazine Subscribers Alleging Deceptive Renewals
A New Jersey federal judge, finding insufficient common issues, has denied class certification to magazine subscribers who claim a Time Warner subsidiary charged for renewals without their authorization. Connecticut-based Synapse offers trial subscriptions to more than 1,000 publications, which are typically billed to subscribers’ credit cards and subject to automatic renewal. The suit sought certification on behalf of Synapse subscribers in New Jersey, New York and Washington, D.C., who were charged after trying to cancel.
Texas and Ohio Pension Funds Picked to Lead Class Action Against Bank of America
A lengthy battle to lead the securities class actions facing Bank of America over its merger with Merrill Lynch now has a winner: three firms representing Texas and Ohio teacher pension funds. In a ruling last week, a federal district court judge in Manhattan decreed the pension funds would be lead plaintiffs and that Bernstein Litowitz Berger & Grossmann; Kaplan Fox & Kilsheimer; and Barroway Topaz Kessler Meltzer & Check would be co-lead counsel in the now-consolidated securities actions.