Corporations & securities brief ~ ImClone settles shareholder lawsuits

Corporations & securities brief ~ ImClone settles shareholder lawsuits

[JURIST] Leading Monday's corporations and securities law news, ImClone Systems Inc. [corporate website] has agreed to settle a class-action shareholder lawsuit from 2002 for $75 million. The lawsuit accused the company of making false and misleading statements about a prospective drug. The settlement comes a week after ImClone's former CEO settled an insider trading case [SEC press release] with the SEC for more than $5 million. ImClone agreed to settle the case to save both money and management distractions. The settlement still needs to be court-approved. ImClone also announced it will settle a consolidated shareholder derivative action and will get $8.75 million in cash from insurance companies to pay the settlement. Read the ImClone press release. Bloomberg has more.

In other news…

  • As previously reported on JURIST's Paper Chase, Microsoft announced Monday that it has decided not to appeal the landmark December ruling [JURIST report; text] of the European Court of Justice [official website] ordering it to immediately implement EU antitrust sanctions that the European Commission [official website] imposed in a March 2004 decision [PDF]. AFP has more.
  • The SEC [official website] has launched a probe into Travelzoo Inc. [corporate website], an internet media company, regarding the trading of its shares by the company's officers, directors and employees. The probe is in response the extreme volatility in the stock price in 2004. Reuters has more.
  • Federated Investors Inc. [corporate website] has begun talks with the SEC and New York Attorney General Eliot Spitzer to settle allegations of improper trading in its mutual funds. The company also announced the SEC may still file civil charges against two employees involved in the scandal. Dow Jones has more.
  • Corinthian Colleges Inc. [official website], a post-secondary education company, announced the SEC has ended its informal probe into the company and will not take any enforcement action. The probe was focused on Corinthian's fiscal 2004 financial projections as well as the Department of Education's program review at the San Jose, California, campus of Bryman College. Read the Corinthian press release. CBSMarketWatch has more.
  • The jury in the corporate fraud trial for HealthSouth CEO Richard Scrushy was selected today. Read the indictment [PDF] against Scrushy. AP has more.

click for previous corporations and securities law news