Thank you for sharing!

Your article was successfully shared with the contacts you provided.
CLASS ACTION Firm to pay $7.6M to settle 401(k) losses suit DETROIT (AP)-A Michigan federal judge has given preliminary approval to a $7.6 million settlement compensating about 10,000 employees of auto supplier Visteon Corp. for losses in their 401(k) plans. The lawsuit alleged that Visteon executives had violated fiduciary duties under the federal Employee Retirement Income Security Act by failing to invest employees’ funds prudently. Visteon made restricted matching contributions to 401(k) plans in Visteon stock, but the lawsuit claimed that the company did not give participants complete and accurate information about its financial health. The class action settlement would compensate 10,023 Visteon workers who had retirement plans between July 1, 2000, and July 15, 2006, involving direct or indirect investments in Visteon stock. FRAUD Company boss sent to prison, told to pay $3.3B BRIDGEPORT, CONN. (AP)-Former Cendant Corp. Chairman Walter Forbes has been sentenced to 12 years and seven months in prison and ordered to pay $3.275 billion in restitution over his responsibility for a huge accounting fraud. In October 2006, a Connecticut federal jury found Forbes guilty of conspiracy to commit securities fraud and two counts of making false statements in a massive fraud scheme that cost the travel and real estate company and its investors more than $3 billion. The case was being tried after two previous juries deadlocked. Prosecutors said that Forbes participated in a scheme to inflate the stock of Cendant’s predecessor, CUC International, by $500 million. The fraud was reported in 1998, causing Cendant’s market value to drop by $14 billion in one day. New York-based Cendant owns Ramada, Howard Johnson, Avis, Coldwell Banker and Century 21. Deloitte, Parmalat settle accounting fraud suit MILAN, ITALY (AP)-Italian firm Parmalat Finanziaria SpA and its former auditors Deloitte and Touche SpA and Dianthus SpA reached an out-of-court settlement in a U.S. damages case related to Parmalat’s 2003 collapse. Under the agreement, Deloitte & Touche and Dianthus have agreed to pay Parmalat $149 million. Parmalat CEO Enrico Bondi and shareholders have filed suits in Italy and the United States seeking to recover damages from Parmalat banks, auditors and advisers, claiming that they were complicit in the accounting fraud that led to the company’s bankruptcy. In 2003, Parmalat defaulted on debt valued at more than $18 billion after acknowledging it did not have the $5 billion that it claimed it had. HOSPITALS Overcharging patients suit settles for $423M SAN FRANCISCO (AP)-A California state judge has approved a settlement providing as much as $423 million in refunds and discounts to nearly 800,000 uninsured patients at Catholic Healthcare West hospitals. The nonprofit company operates 43 hospitals in California, Nevada and Arizona. An October 2005 lawsuit accused it of overcharging its uninsured patients and sending aggressive collection agencies after them when they couldn’t pay. St. Francis and St. Mary’s in San Francisco charged uninsured patients far more than those covered by Medicare, Medicaid or private insurance, the suit alleged. REGULATORY ACTION Mutual fund company settles probe for $40M ALBANY, N.Y. (AP)-Fred Alger Management Inc. has agreed to pay $40 million to settle an investigation into market timing and late trading, the U.S. Securities and Exchange Commission has said. The SEC issued an order that found that Alger Management and Alger Inc. had failed to disclose arrangements with favored investors to Alger’s board of trustees. The settlement is the first for New York Attorney General Andrew Cuomo and ends a case begun by his predecessor, Eliot Spitzer, who is now New York’s governor. Market timing by mutual funds, which involves rapid trades in and out of a fund’s shares, is not illegal, but it is prohibited by many funds because it can generate profits at the expense of long-term shareholders. Federal energy regulator levies $22.5M in fines WASHINGTON (AP)-Federal energy regulators have announced fines totaling $22.5 million against five power companies-Scana Corp., PacifiCorp, Entergy Corp., Northwestern Corp. and NRG Energy Inc.-that settled civil penalties stemming from a variety of violations. PacifiCorp agreed to pay the largest fine, $10 million, for hundreds of violations, including violating an “open access” transmission rule by favoring its own merchant power plants over competitors’ plants, the Federal Energy Regulatory Commission said. Scana agreed to pay $9 million in fines and to return $1.4 million in profits to resolve tariff violations made over a four-year period by its subsidiary, South Carolina Electric & Gas Co. The company also agreed to credit $400,000 to retail customers. Entergy agreed to pay $2 million and to contribute $1 million to a hurricane relief fund to settle violations of the Federal Power Act regarding lost records. Northwestern agreed to pay a $1 million to settle 83 tariff violations. WAGES AND HOURS Immigrants get $2.5M in labor law breaches suit LOS ANGELES (AP)-A California federal jury has awarded $2.5 million to 200 Chinese Daily News workers who claimed that they were denied overtime and rest and meal breaks. Jurors agreed with workers who sued the Monterey Park, Calif.-based, Chinese-language newspaper for labor law violations. The suit was filed in March 2006 on behalf of newsroom, advertising and press staff, many of whom were immigrants.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.