Cramdown settlements in securities class action cases
Article Abstract:
The tendency for judges in class actions to disregard defense settlement offers that are objected to by class counsel is not mandated by law under the Federal Rules of Civil Procedure 23(e). Judges should be willing to consider defense settlements in order to impose some control on the process, act as a check on the activities of an overzealous class counsel and protect the interests of the defendant. An unpublished decision, In re Technical Equities Federal Securities Litigation, is examined as an example of the acceptance of a defense-sponsored settlement proposal.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1993
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SEC rejects NASD mark-up test for illiquid securities
Article Abstract:
The SEC ruled in a hearing before the Commission that Partnership Exchange Securities Co. (PESCO) did not violate National Association of Securities Dealers (NASD) mark-up policies and did not place excess mark-ups on illiquid securities. The SEC reversed the NASD position that PESCO had traded in limited partnership interests at excess mark-ups because the trading was done with broker-dealers who could not be considered customers. The SEC also ruled that the NASD should have used contemporaneous transactions and not historical cost calculations.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1995
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