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 An unpublished decision, In re Technical Equities Federal Securities Litigation, is examined as an example of the acceptance of a defense-sponsored settlement proposal.

Analysis, Class actions (Civil procedure), Compromise and settlement, Class action lawsuits, Settlements (Law)

---

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.

Securities dealers, Laws, regulations and rules, Accounting and auditing, Securities, Limited partnership, Limited partnerships, Stock transfer

---

Similar abstracts:

• Abstracts: In overseas pacts, ADR lets parties pick forum; customized arbitration clauses in international contracts make dispute resolution less risky
• Abstracts: Settlements follow inflation. Settlements static in 1996/97
• Abstracts: Introducing asset securitization to Indonesia: a method in madness. Allowing Japanese banks to engage in securitization: potential benefits, regulatory obstacles, and theories for reform
• Abstracts: Companies using color, sound or scent marks may be foiled overseas. Imaging can ease courts' record-keeping tasks
• Abstracts: Is ethics a big man on campus? Ethics and technology in developing nations. The booming business of business ethics

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.