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Naked Short Selling
- Thread starter flytiger
- Start date
http://www.sec.gov/litigation/complaints/2007/comp20278.pdf
New Pipes bust. Read it carefully. There is some real talent on these boards. Look at these bums just game the system. So confident of the profits, they just need to hear a deal wa s in the works.
Scum. Pull the tickets. Never let them work in the Industry again. As a matter of fact, they shouldn't even have an account. Make them fund their retirement with CD's, or Nigerian wire transfers. Bastards.
New Pipes bust. Read it carefully. There is some real talent on these boards. Look at these bums just game the system. So confident of the profits, they just need to hear a deal wa s in the works.
Scum. Pull the tickets. Never let them work in the Industry again. As a matter of fact, they shouldn't even have an account. Make them fund their retirement with CD's, or Nigerian wire transfers. Bastards.
This guy will give up the big boys. They will turn out to be some big name short sellers, IMO.
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September 18, 2007
Lawyer Will Plead Guilty in Kickback Scheme
By BARRY MEIER
The securities lawyer William S. Lerach agreed to plead guilty today to a criminal conspiracy charge in connection with a class-action scheme involving his former firm, now known as Milberg Weiss, the United States attorneyâs office in Los Angeles said.
Mr. Lerach, 61, who has long been under investigation by federal authorities, will enter his plea in Federal District Court in Los Angeles, the prosecutor said.
He has agreed to plead guilty to the conspiracy charge, forfeit $7.75 million to the government, pay a $250,000 fine and accept a sentence ranging from one year to two years in federal prison, according to a statement from the United States attorney. An arraignment will be at a later date.
In his plea agreement, Mr. Lerach acknowledges making secret payments to Dr. Steven G. Cooperman, and acknowledges that others received payments from other partners of Milberg Weiss. These individuals were generally promised 10 percent of the attorneysâ fees received by Milberg Weiss. The payments were kept secret from the courts overseeing the class actions, and the named plaintiffs who received the kickbacks made false statements under oath concerning the payments.
Dr. Cooperman, a former eye doctor in Beverly Hills, Calif., pleaded guilty in July to accepting $6.1 million in secret kickbacks for serving as a lead plaintiff in securities lawsuits filed by Milberg Weiss, a New York investor class-action law firm. His sentencing is set for June 30, 2008.
âWilliam Lerachâs plea can be credited to the thoroughness of this investigation and the dedication of the investigative team, to ensure that justice is done,â said Pete Zegarac, postal inspector in charge. âThe U.S. Postal Inspection Service remains committed to the investigation of a conspiracy until each and every perpetrator has been brought to justice.â
The plea comes amid a seven-year investigation into whether Mr. Lerach and other senior lawyers at Milberg Weiss conspired to pay kickbacks to individuals who agreed to serve as named plaintiffs in class-action lawsuits.
Another former senior partner in the firm, David J. Bershad, has already pleaded guilty to a charge related to the kickback scheme, and another named partner at the firm, Melvyn I. Weiss, has also been a subject of the investigation, but has not been charged.
For years, Mr. Lerach and his former firm aggressively filed class-action lawsuits, particularly in the securities area. Being the first to organize and file suits also put them in position to get a sizable share of any legal fees produced by the cases.
Mr. Lerach, who did not return a telephone call to his office, long championed the class-action system as an equalizer for small investors and other plaintiffs seeking redress of corporate wrongdoing. John W. Keker, Mr. Lerachâs lawyer, did not return a phone call, and the United States attorneyâs office declined to comment.
Under the plea agreement, Mr. Lerach is not required to cooperate with the government in any further inquiries into the matter, the people knowledgeable about it said. The agreement terms, they said, also call for the law firm from which Mr. Lerach recently resigned, Coughlin Stoia Geller Rudman & Robbins, to face no liability or risk.
If a judge declines to accept the terms of the plea agreement, Mr. Lerach is free to withdraw his guilty plea.
Last month, Mr. Lerach resigned from the firm he founded three years ago to fight the charges. Soon after, his name was excluded from the firmâs name. Though they have been under investigation, Mr. Lerach and Mr. Weiss have not been formally charged.
A 20-count indictment against Milberg Weiss handed up in May 2006, stemming from a long federal investigation, sketched out a conspiracy stretching from the 1970s to 2005. Prosecutors say that Milberg Weiss paid $11 million in kickbacks to plaintiffs in more than 150 cases, earning the firm more than $216 million.
Several plaintiffs have stepped forward and said that they received payments from Milberg Weiss in exchange for their testimony.
In July, Mr. Bershad pleaded guilty to one count of conspiracy and agreed to cooperate with prosecutors. His plea was seen as crucial, given his knowledge of the firmâs finances.
As part of his plea agreement, Mr. Bershad outlined a decades-long scheme in which the firm recruited plaintiffs, secretly paying them a portion of its legal fees. The plan, according to Mr. Bershad, allowed Milberg Weiss to mount more lawsuits at a faster pace than competitors, making the firm counsel for the lead plaintiff in many cases and earning it a larger share of the fees.
Among Mr. Bershadâs claims is that a group of partners personally contributed to a special fund that he used to dole out payments to plaintiffs. The partners were later awarded bonuses equaling their payments to the fund.
Two partners who contributed to the fund, named in Mr. Bershadâs statement as simply âPartner Aâ and âPartner B,â are widely believed to be Mr. Weiss and Mr. Lerach.
Michael J. de la Merced contributed reporting.
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--------------------------------------------------------------------------------
September 18, 2007
Lawyer Will Plead Guilty in Kickback Scheme
By BARRY MEIER
The securities lawyer William S. Lerach agreed to plead guilty today to a criminal conspiracy charge in connection with a class-action scheme involving his former firm, now known as Milberg Weiss, the United States attorneyâs office in Los Angeles said.
Mr. Lerach, 61, who has long been under investigation by federal authorities, will enter his plea in Federal District Court in Los Angeles, the prosecutor said.
He has agreed to plead guilty to the conspiracy charge, forfeit $7.75 million to the government, pay a $250,000 fine and accept a sentence ranging from one year to two years in federal prison, according to a statement from the United States attorney. An arraignment will be at a later date.
In his plea agreement, Mr. Lerach acknowledges making secret payments to Dr. Steven G. Cooperman, and acknowledges that others received payments from other partners of Milberg Weiss. These individuals were generally promised 10 percent of the attorneysâ fees received by Milberg Weiss. The payments were kept secret from the courts overseeing the class actions, and the named plaintiffs who received the kickbacks made false statements under oath concerning the payments.
Dr. Cooperman, a former eye doctor in Beverly Hills, Calif., pleaded guilty in July to accepting $6.1 million in secret kickbacks for serving as a lead plaintiff in securities lawsuits filed by Milberg Weiss, a New York investor class-action law firm. His sentencing is set for June 30, 2008.
âWilliam Lerachâs plea can be credited to the thoroughness of this investigation and the dedication of the investigative team, to ensure that justice is done,â said Pete Zegarac, postal inspector in charge. âThe U.S. Postal Inspection Service remains committed to the investigation of a conspiracy until each and every perpetrator has been brought to justice.â
The plea comes amid a seven-year investigation into whether Mr. Lerach and other senior lawyers at Milberg Weiss conspired to pay kickbacks to individuals who agreed to serve as named plaintiffs in class-action lawsuits.
Another former senior partner in the firm, David J. Bershad, has already pleaded guilty to a charge related to the kickback scheme, and another named partner at the firm, Melvyn I. Weiss, has also been a subject of the investigation, but has not been charged.
For years, Mr. Lerach and his former firm aggressively filed class-action lawsuits, particularly in the securities area. Being the first to organize and file suits also put them in position to get a sizable share of any legal fees produced by the cases.
Mr. Lerach, who did not return a telephone call to his office, long championed the class-action system as an equalizer for small investors and other plaintiffs seeking redress of corporate wrongdoing. John W. Keker, Mr. Lerachâs lawyer, did not return a phone call, and the United States attorneyâs office declined to comment.
Under the plea agreement, Mr. Lerach is not required to cooperate with the government in any further inquiries into the matter, the people knowledgeable about it said. The agreement terms, they said, also call for the law firm from which Mr. Lerach recently resigned, Coughlin Stoia Geller Rudman & Robbins, to face no liability or risk.
If a judge declines to accept the terms of the plea agreement, Mr. Lerach is free to withdraw his guilty plea.
Last month, Mr. Lerach resigned from the firm he founded three years ago to fight the charges. Soon after, his name was excluded from the firmâs name. Though they have been under investigation, Mr. Lerach and Mr. Weiss have not been formally charged.
A 20-count indictment against Milberg Weiss handed up in May 2006, stemming from a long federal investigation, sketched out a conspiracy stretching from the 1970s to 2005. Prosecutors say that Milberg Weiss paid $11 million in kickbacks to plaintiffs in more than 150 cases, earning the firm more than $216 million.
Several plaintiffs have stepped forward and said that they received payments from Milberg Weiss in exchange for their testimony.
In July, Mr. Bershad pleaded guilty to one count of conspiracy and agreed to cooperate with prosecutors. His plea was seen as crucial, given his knowledge of the firmâs finances.
As part of his plea agreement, Mr. Bershad outlined a decades-long scheme in which the firm recruited plaintiffs, secretly paying them a portion of its legal fees. The plan, according to Mr. Bershad, allowed Milberg Weiss to mount more lawsuits at a faster pace than competitors, making the firm counsel for the lead plaintiff in many cases and earning it a larger share of the fees.
Among Mr. Bershadâs claims is that a group of partners personally contributed to a special fund that he used to dole out payments to plaintiffs. The partners were later awarded bonuses equaling their payments to the fund.
Two partners who contributed to the fund, named in Mr. Bershadâs statement as simply âPartner Aâ and âPartner B,â are widely believed to be Mr. Weiss and Mr. Lerach.
Michael J. de la Merced contributed reporting.
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Looks like the 50 lawyers were not enough.
All 10 motions to dismiss were ruled in Fairfax's favor.
The case remains in New Jersey Court where RICO applies.
<IV
Fairfax lawsuit moves forward
Plot thickens in Fairfax battle with hedge funds
Patricia Best, today at 6:15 AM EDT
A group of prominent American hedge funds have failed to get a $6-billion (U.S.) lawsuit against them by Prem Watsa's Fairfax Financial thrown out of U.S. court.
New Jersey Superior Court Judge Deanne Wilson ruled in Fairfax's favor during an unusually long 10-hour Friday hearing on Sept. 7. She dismissed 10 motions to dismiss that were launched by the defendants - eight hedge fund firms and a group of well-known money managers that includes Jim Chanos, Steven Cohen, Daniel Loeb, David Rocker and Adam Sender, sources say. The court order has not been put into writing yet and has not yet been reported in the media.
The bizarre case of Fairfax versus an alleged cabal of short-selling hedge funds and a mysterious freelance financial analyst named Spyro Contogouris goes back to July, 2006. But it recently caught the attention of Bloomberg Markets, a glossy magazine published by Bloomberg News. The October issue - which goes to virtually every Bloomberg customer worldwide - features an eight-page, cloak-and-dagger story of the Fairfax/hedge fund fight.
Bloomberg writer Anthony Effinger said the court case "raises questions about the integrity of securities research four years after several Wall Street firms settled claims that their analysts issued biased reports to win investment banking business. Now some unaffiliated analysts are allegedly being corrupted by deep-pocketed hedge funds."
In the strange affair, which features allegations of anonymous letters, rumour-mongering and intimidation, Fairfax claims the hedge funds were engaged in racketeering and hired Mr. Contogouris to "beat up" its stock as a way of profiting from short selling its shares. The money firms, among them SAC Capital, Exis Capital, Sigma Capital and Rocker Partners, deny using any dirty tricks and allege Mr. Watsa's company sued them in order to silence its critics and deter investors from shorting its stock. Among the sensational details, the article reveals that a Securities and Exchange Commission investigation of Fairfax's use of reinsurance products was still going on as of last month.
With this court order, sources say examinations for discovery should begin shortly and the case could go to trial in two years. The defendants, who had more than 50 lawyers present in court earlier this month, have tried to get the case moved to a federal court. But Fairfax has fought to keep the case in New Jersey because of the state's anti-racketeering statute that carries provisions for triple damages. Fairfax is represented by Marc Kasowitz, a New York lawyer who has been described in the media as an "uberlitigator." He also has represented Biovail Corp. in a similar legal pursuit of short-selling hedge funds.
All 10 motions to dismiss were ruled in Fairfax's favor.
The case remains in New Jersey Court where RICO applies.
<IV
Fairfax lawsuit moves forward
Plot thickens in Fairfax battle with hedge funds
Patricia Best, today at 6:15 AM EDT
A group of prominent American hedge funds have failed to get a $6-billion (U.S.) lawsuit against them by Prem Watsa's Fairfax Financial thrown out of U.S. court.
New Jersey Superior Court Judge Deanne Wilson ruled in Fairfax's favor during an unusually long 10-hour Friday hearing on Sept. 7. She dismissed 10 motions to dismiss that were launched by the defendants - eight hedge fund firms and a group of well-known money managers that includes Jim Chanos, Steven Cohen, Daniel Loeb, David Rocker and Adam Sender, sources say. The court order has not been put into writing yet and has not yet been reported in the media.
The bizarre case of Fairfax versus an alleged cabal of short-selling hedge funds and a mysterious freelance financial analyst named Spyro Contogouris goes back to July, 2006. But it recently caught the attention of Bloomberg Markets, a glossy magazine published by Bloomberg News. The October issue - which goes to virtually every Bloomberg customer worldwide - features an eight-page, cloak-and-dagger story of the Fairfax/hedge fund fight.
Bloomberg writer Anthony Effinger said the court case "raises questions about the integrity of securities research four years after several Wall Street firms settled claims that their analysts issued biased reports to win investment banking business. Now some unaffiliated analysts are allegedly being corrupted by deep-pocketed hedge funds."
In the strange affair, which features allegations of anonymous letters, rumour-mongering and intimidation, Fairfax claims the hedge funds were engaged in racketeering and hired Mr. Contogouris to "beat up" its stock as a way of profiting from short selling its shares. The money firms, among them SAC Capital, Exis Capital, Sigma Capital and Rocker Partners, deny using any dirty tricks and allege Mr. Watsa's company sued them in order to silence its critics and deter investors from shorting its stock. Among the sensational details, the article reveals that a Securities and Exchange Commission investigation of Fairfax's use of reinsurance products was still going on as of last month.
With this court order, sources say examinations for discovery should begin shortly and the case could go to trial in two years. The defendants, who had more than 50 lawyers present in court earlier this month, have tried to get the case moved to a federal court. But Fairfax has fought to keep the case in New Jersey because of the state's anti-racketeering statute that carries provisions for triple damages. Fairfax is represented by Marc Kasowitz, a New York lawyer who has been described in the media as an "uberlitigator." He also has represented Biovail Corp. in a similar legal pursuit of short-selling hedge funds.
http://jre-whatsnottolike.com/2007/09/19/edwards-pressured-sec-on-behalf-leading-fundraiser/
John Edwards 2008: Whatâs not to like
September 19, 2007
Edwards pressured SEC on behalf of leading fundraiser
Filed under: 2008 Primary, Bundlers, Investigations, Trial Lawyers â is @ 7:32 pm
Though his former law firm came under indictment more than a year ago and he himself appeared likely to face criminal charges, prominent trial lawyer William S. Lerach slipped past the vetting of John Edwardsâ presidential campaign and was permitted to raise large amounts of money for the Democratâs 2008 bid.Lerach, his family and members of his new law Lerach Coughlin law firm accounted for nearly $78,000 in donations to Edwardsâ campaign in the first half of this year, making the trial lawyer one of the North Carolina Democratâs leading âbundlersâ of contributions.
In the midst of that fundraising, Lerach negotiated behind the scenes for a plea deal that was consummated on Tuesday and will send him to federal prison for at least 12 months on a conspiracy charge involving his past legal work as partner in the Milberg Weiss law firm.
Through it all, Edwards stood by his fellow trial lawyer and even took an action this spring that was helpful to his longtime financial supporter in a government matter.
In May, Edwards used the bully pulpit of his presidential campaign to publicly pressure the Securities and Exchange Commission not to oppose Lerachâs new law firm in a Supreme Court case over whether Lerachâs lawsuits could proceed against banks on behalf of investors who lost millions in the collapse of energy giant Enron.
âThe question for all Americans is whether their government will be on the side of those big banks or regular families,â Edwards said in a statement released by his presidential campaign that was trumpeted on the Web site of Lerachâs law firm.
All of this transpired while Edwards campaigned against what he calls a âcorroded and corruptâ Washington system in which politicians raise money from special interests who then seek their help on government matters. To make his point, Edwards campaign is refusing any donations from lobbyists registered in Washington.
snip
Trippiâs attack made no mention of Lerach, the Edwardsâ bundler, or the fact that Lerach had just reached a plea deal in a scheme prosecutors alleged involved kickback payments to plaintiffs in class action lawsuits he and his former law firm brought.
Lerach and his former law partner Melvyn I. Weiss were notified in the summer of 2005 that they had become targets in that lengthy criminal investigation, meaning they were likely to be indicted, according to lawyers involved in the case.
Court papers say that they employed the scheme for more than two decades in 150 cases that brought their firm more than $200 million in fees.
snip
Edwards campaign said it donated Lerachâs personal donations to charity yesterday after his guilty plea, but isnât returning the money he raised from others.
As for the statement Edwards issued favorable to Lerachâs lawsuits earlier this year, Edwards spokesoman Colleen Murray said: âThis position is consistent with John Edwardsâ longstanding support for protecting the retirement savings of middle class families and shared by many others, including the New York Times editorial page, Securities and Exchange Commission, Senate Banking Committee Chair Chris Dodd, and a coalition of consumer groups, to name a few.â
Lerach is the latest bundler in the 2008 race whose background has raised questions about how carefully campaigns are vetting those who collect their checks.
Washington Post 9/19/07
http://blog.washingtonpost.com/the-trail/2007/09/19/lawyer_in_plea_deal_was_edward.html?hpid=topnews
John Edwards 2008: Whatâs not to like
September 19, 2007
Edwards pressured SEC on behalf of leading fundraiser
Filed under: 2008 Primary, Bundlers, Investigations, Trial Lawyers â is @ 7:32 pm
Though his former law firm came under indictment more than a year ago and he himself appeared likely to face criminal charges, prominent trial lawyer William S. Lerach slipped past the vetting of John Edwardsâ presidential campaign and was permitted to raise large amounts of money for the Democratâs 2008 bid.Lerach, his family and members of his new law Lerach Coughlin law firm accounted for nearly $78,000 in donations to Edwardsâ campaign in the first half of this year, making the trial lawyer one of the North Carolina Democratâs leading âbundlersâ of contributions.
In the midst of that fundraising, Lerach negotiated behind the scenes for a plea deal that was consummated on Tuesday and will send him to federal prison for at least 12 months on a conspiracy charge involving his past legal work as partner in the Milberg Weiss law firm.
Through it all, Edwards stood by his fellow trial lawyer and even took an action this spring that was helpful to his longtime financial supporter in a government matter.
In May, Edwards used the bully pulpit of his presidential campaign to publicly pressure the Securities and Exchange Commission not to oppose Lerachâs new law firm in a Supreme Court case over whether Lerachâs lawsuits could proceed against banks on behalf of investors who lost millions in the collapse of energy giant Enron.
âThe question for all Americans is whether their government will be on the side of those big banks or regular families,â Edwards said in a statement released by his presidential campaign that was trumpeted on the Web site of Lerachâs law firm.
All of this transpired while Edwards campaigned against what he calls a âcorroded and corruptâ Washington system in which politicians raise money from special interests who then seek their help on government matters. To make his point, Edwards campaign is refusing any donations from lobbyists registered in Washington.
snip
Trippiâs attack made no mention of Lerach, the Edwardsâ bundler, or the fact that Lerach had just reached a plea deal in a scheme prosecutors alleged involved kickback payments to plaintiffs in class action lawsuits he and his former law firm brought.
Lerach and his former law partner Melvyn I. Weiss were notified in the summer of 2005 that they had become targets in that lengthy criminal investigation, meaning they were likely to be indicted, according to lawyers involved in the case.
Court papers say that they employed the scheme for more than two decades in 150 cases that brought their firm more than $200 million in fees.
snip
Edwards campaign said it donated Lerachâs personal donations to charity yesterday after his guilty plea, but isnât returning the money he raised from others.
As for the statement Edwards issued favorable to Lerachâs lawsuits earlier this year, Edwards spokesoman Colleen Murray said: âThis position is consistent with John Edwardsâ longstanding support for protecting the retirement savings of middle class families and shared by many others, including the New York Times editorial page, Securities and Exchange Commission, Senate Banking Committee Chair Chris Dodd, and a coalition of consumer groups, to name a few.â
Lerach is the latest bundler in the 2008 race whose background has raised questions about how carefully campaigns are vetting those who collect their checks.
Washington Post 9/19/07
http://blog.washingtonpost.com/the-trail/2007/09/19/lawyer_in_plea_deal_was_edward.html?hpid=topnews
discovery begins....
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3UFOQ9qzeJs
Gradient, Rocker Lose Bid to End Overstock.com Suit (Update1)
By Karen Gullo
Sept. 19 (Bloomberg) -- Gradient Analytics Inc., a research firm, and Rocker Partners LLC, a hedge fund, will face a trial over whether they drove down Overstock.com Inc.'s shares, after losing a second bid to dismiss Overstock.com's lawsuit.
The California Supreme Court in San Francisco denied petitions today to review a lower court's decision allowing the lawsuit to proceed to trial, according to the court's Web site.
Overstock.com, an Internet seller of discounted brand-name goods, claims Gradient issued false and misleading reports about the company using information from Rocker to help the fund profit on trades. Gradient and Rocker deny the claims and say the research reports critical of Overstock are protected free speech.
``The issue of free speech is central to our work,'' Gradient Chief Executive Officer Brad Forst said in a statement. ``As we proceed to the trial stage, we are amply prepared to address the facts of the case.''
A state appeals court in San Francisco in May said whether Gradient's reports contain provably false statements made with malice should be decided at a trial. That ruling allows the case to proceed with evidence-gathering in Marin County Superior Court in San Rafael, California.
Fred Norton, an attorney for Rocker Partners, now Red Bank, New Jersey-based Copper River Management LLC, didn't reply to a message.
Overstock in the suit accused Gradient of issuing false stock reports and letting Rocker, a Gradient client, influence the contents of the reports to help the hedge fund benefit from short-selling trades that were a bet Salt Lake City-based Overstock's shares would fall in price.
Gradient and Rocker say the lawsuit is an attempt by Overstock to silence its critics.
The case is Overstock.com v. Gradient Analytics, S154213, California Supreme Court (San Francisco).
To contact the reporter on this story: Karen Gullo at kgullo@bloomberg.net .
Last Updated: September 19, 2007 18:37 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3UFOQ9qzeJs
Gradient, Rocker Lose Bid to End Overstock.com Suit (Update1)
By Karen Gullo
Sept. 19 (Bloomberg) -- Gradient Analytics Inc., a research firm, and Rocker Partners LLC, a hedge fund, will face a trial over whether they drove down Overstock.com Inc.'s shares, after losing a second bid to dismiss Overstock.com's lawsuit.
The California Supreme Court in San Francisco denied petitions today to review a lower court's decision allowing the lawsuit to proceed to trial, according to the court's Web site.
Overstock.com, an Internet seller of discounted brand-name goods, claims Gradient issued false and misleading reports about the company using information from Rocker to help the fund profit on trades. Gradient and Rocker deny the claims and say the research reports critical of Overstock are protected free speech.
``The issue of free speech is central to our work,'' Gradient Chief Executive Officer Brad Forst said in a statement. ``As we proceed to the trial stage, we are amply prepared to address the facts of the case.''
A state appeals court in San Francisco in May said whether Gradient's reports contain provably false statements made with malice should be decided at a trial. That ruling allows the case to proceed with evidence-gathering in Marin County Superior Court in San Rafael, California.
Fred Norton, an attorney for Rocker Partners, now Red Bank, New Jersey-based Copper River Management LLC, didn't reply to a message.
Overstock in the suit accused Gradient of issuing false stock reports and letting Rocker, a Gradient client, influence the contents of the reports to help the hedge fund benefit from short-selling trades that were a bet Salt Lake City-based Overstock's shares would fall in price.
Gradient and Rocker say the lawsuit is an attempt by Overstock to silence its critics.
The case is Overstock.com v. Gradient Analytics, S154213, California Supreme Court (San Francisco).
To contact the reporter on this story: Karen Gullo at kgullo@bloomberg.net .
Last Updated: September 19, 2007 18:37 EDT
Quote from lessthaniv:
discovery begins....
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3UFOQ9qzeJs
Gradient, Rocker Lose Bid to End Overstock.com Suit (Update1)
By Karen Gullo
Sept. 19 (Bloomberg) -- Gradient Analytics Inc., a research firm, and Rocker Partners LLC, a hedge fund, will face a trial over whether they drove down Overstock.com Inc.'s shares, after losing a second bid to dismiss Overstock.com's lawsuit.
The California Supreme Court in San Francisco denied petitions today to review a lower court's decision allowing the lawsuit to proceed to trial, according to the court's Web site.
Overstock.com, an Internet seller of discounted brand-name goods, claims Gradient issued false and misleading reports about the company using information from Rocker to help the fund profit on trades. Gradient and Rocker deny the claims and say the research reports critical of Overstock are protected free speech.
``The issue of free speech is central to our work,'' Gradient Chief Executive Officer Brad Forst said in a statement. ``As we proceed to the trial stage, we are amply prepared to address the facts of the case.''
A state appeals court in San Francisco in May said whether Gradient's reports contain provably false statements made with malice should be decided at a trial. That ruling allows the case to proceed with evidence-gathering in Marin County Superior Court in San Rafael, California.
Fred Norton, an attorney for Rocker Partners, now Red Bank, New Jersey-based Copper River Management LLC, didn't reply to a message.
Overstock in the suit accused Gradient of issuing false stock reports and letting Rocker, a Gradient client, influence the contents of the reports to help the hedge fund benefit from short-selling trades that were a bet Salt Lake City-based Overstock's shares would fall in price.
Gradient and Rocker say the lawsuit is an attempt by Overstock to silence its critics.
The case is Overstock.com v. Gradient Analytics, S154213, California Supreme Court (San Francisco).
To contact the reporter on this story: Karen Gullo at kgullo@bloomberg.net .
Last Updated: September 19, 2007 18:37 EDT
So that was the reason for the jump today. As my Prom date told me, "Man, this is absolutely huge."
One common denominator: these scumbags have sacks of money to throw at lawsuits. Didn't work this time. Discovery is death to the Street. And they know it, which is why they fight.
Great find, IV. Made my evening.
Post Script. Just made some calls. Whatever Overstock gets will become public information; it will be available to whatever company believes they've been screwed over. That seems interesting.
Quote from flytiger:
So that was the reason for the jump today. As my Prom date told me, "Man, this is absolutely huge."
One common denominator: these scumbags have sacks of money to throw at lawsuits. Didn't work this time. Discovery is death to the Street. And they know it, which is why they fight.
Great find, IV. Made my evening.
Post Script. Just made some calls. Whatever Overstock gets will become public information; it will be available to whatever company believes they've been screwed over. That seems interesting.
Yeah, well, discovery is a two-way street. All of OSTK's warts will be revealed as well.
overstock was ready to proceed to discovery about 3 appeals ago. i don't think they are worried.
lessthaniv
lessthaniv
Weiss to face kickback charges
By Stephanie Kirchgaessner in Washington 43 minutes ago
Melvyn Weiss, the hard charging New York attorney who was once considered one of the most powerful lawyers in the country, is expected to be charged on Thursday by federal prosecutors for his role in an alleged scheme to pay kickbacks to clients.
Milberg Weiss, the class action law firm that Mr Weiss founded, said in a statement on Wednesday night that it understood "new charges" would be issued against Mr Weiss and that a second indictment would be brought against the firm on Thursday.
Milberg Weiss was first indicted in May 2006 for allegedly conspiring to pay plaintiffs in its class action lawsuits $11m in kickbacks in more than 150 cases that earned the firm more than $200m. Milber Weiss has denied the charges and claimed at the time of its indictment that it had only been charged because after six months of intense negotiations with prosecutors, it refused to waive attorney-client privilege, which traditionally protects communications between corporate lawyers and their clients.
The expected decision to charge Mr Weiss comes just days after William Lerach, once the leading class-action lawyer in the US, agreed to plead guilty to felony conspiracy charges for his role in the alleged scheme.
The law firm said on Wednesday night that Mr Weiss had decided to leave the firm in order to focus on his defence and that the firm's other partners, none of which it said were involved in wrongdoing, would be responsible for its management and litigation.
"The firm remains proud of Mr Weiss' and the firm's accomplishments over the years and will continue to fight for its clients and class members and to produce the excellent results for which it is known."
http://news.yahoo.com/s/ft/20070920/bs_ft/fto091920072259284280;_ylt=AoXkce5NseTEgA.sriilKkms0NUE
By Stephanie Kirchgaessner in Washington 43 minutes ago
Melvyn Weiss, the hard charging New York attorney who was once considered one of the most powerful lawyers in the country, is expected to be charged on Thursday by federal prosecutors for his role in an alleged scheme to pay kickbacks to clients.
Milberg Weiss, the class action law firm that Mr Weiss founded, said in a statement on Wednesday night that it understood "new charges" would be issued against Mr Weiss and that a second indictment would be brought against the firm on Thursday.
Milberg Weiss was first indicted in May 2006 for allegedly conspiring to pay plaintiffs in its class action lawsuits $11m in kickbacks in more than 150 cases that earned the firm more than $200m. Milber Weiss has denied the charges and claimed at the time of its indictment that it had only been charged because after six months of intense negotiations with prosecutors, it refused to waive attorney-client privilege, which traditionally protects communications between corporate lawyers and their clients.
The expected decision to charge Mr Weiss comes just days after William Lerach, once the leading class-action lawyer in the US, agreed to plead guilty to felony conspiracy charges for his role in the alleged scheme.
The law firm said on Wednesday night that Mr Weiss had decided to leave the firm in order to focus on his defence and that the firm's other partners, none of which it said were involved in wrongdoing, would be responsible for its management and litigation.
"The firm remains proud of Mr Weiss' and the firm's accomplishments over the years and will continue to fight for its clients and class members and to produce the excellent results for which it is known."
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