[JURIST] Leading Tuesday's corporations and securities law news, the SEC has filed civil fraud charges against former executives of i2 Technologies [corporate website], a Texas company that produces supply chain management software. In a press release, the SEC announced that it has filed suit [complaint, PDF] against three former i2 executives for illegally reporting revenue for software that was not yet functional. The suit seeks the $120 million the SEC says the executives made in ill-gotten gains from the revenue reporting. Last year, the SEC settled with i2 for $10 million [SEC press release] over alleged fraud related to reporting software revenue. AP has more.
In other corporations and securities law news...
- Northwest Airlines' [corporate website] Chief Executive Douglas Steenland [Forbes profile] has said that his company will not enter binding arbitration with its mechanics to settle differences over a proposed $176 million cut in labor costs. The union representing Northwest's mechanics-the Airline Mechanics Fraternal Association [union website]-has, in turn, announced that it is preparing to strike [Reuters report]. Forbes has more.
- As reported earlier on JURIST's Paper Chase, two class-action lawsuits have been filed against DuPont [corporate website]. The lawsuits allege that DuPont knowingly withheld information about the dangers of perfluorooctanoic acid [Wikipedia entry] (PFOA) in its Teflon products and asks for DuPont to spend $5 billion to replace Teflon-coated cookware. In a press release, DuPont said, "consumers using products sold under the Teflon brand are safe," and that "approved standard FDA tests also show that non-stick coatings used for cookware sold under the Teflon brand, do not contain any PFOA." Reuters has more.
- Visa [corporate website] and American Express [corporate website] have announced that they will no longer use troubled card processor CardSystems Solutions, Inc. [corporate website]. Last month it was revealed that information from 40 million American credit cards was stolen from CardSystems [JURIST report]. AP has more.