Corporations & securities brief ~ AIG nears settlement with SEC, DOJ Amit Patel at 11:25 AM ET
[JURIST] In Tuesday's corporations and securities law news, American International Group Inc. (AIG) announced it has submitted a settlement offer to the SEC and reached an agreement with the Department of Justice over an investigation into the financial services company's dealings with PNC Financial Services Group and Brightpoint Inc. The SEC is specifically investigating whether AIG helped PNC commit accounting fraud. AIG already paid a $10 million fine to the SEC last year to settle allegations that it helped Brightpoint commit accounting fraud. Read the AIG press release here [PDF]. AP has more.
In other news, the SEC is reportedly close to settling with Time Warner over accounting questions at the media company's America Online unit. Time Warner would pay $750 million but will not have to admit or deny the allegations that AOL improperly pumped up its revenue and profit before and after buying Time Warner in 2001. AP has more.... Computer Associates International Inc. named IBM veteran John Swainson as its new president and chief executive. The move comes after an accounting scandal at the company which has led to charges being filed against many former executives. Computer Associates has a press release announcing the move here and a webcast in RealPlayer or Windows Media. AP has more.... McDonald's Corp. announced vice chairman Jim Skinner will take over as CEO as its former CEO, Charlie Bell, abruptly resigned to focus on his fight with colon cancer. Read the McDonald's press release here. AP has more.... Wal-Mart announced it has agreed to establish officially-sanctioned unions in its forty Chinese stores, but only after workers request to form one. Read Wal-Mart's stance on unions here. The Financial Times has more.... Russia's tax authorities have asked the Moscow Arbitration Court to uphold 72.04 billion rubles in fines it has levied against oil giant Yukos. Paper Chase has continuing coverage of the Yukos controversy. AP has more.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.