The Oppenheimer-owned Tremont hedge funds group has agreed to pay the liquidator of Bernie Madoff’s estate more than $1 billion in cash, giving swindled investors an extra taste of justice.
Tremont funds will now be allowed to make claims on the Madoff estate of about $3 billion, according to a statement by trustee Irving Picard. Continue reading Hedge Fund Settles with Madoff Trustee
Rupert Murdoch, chairman and CEO of News Corp., and the company’s other directors have been slapped with a lawsuit filed by The
Massachusetts Laborers’ Pension and Annuity Funds of Burlington. The lawsuit states that they are seeking to recover millions of dollars in losses and strengthen corporate governance over alleged mismanagement and breaches of fiduciary duty exposed by the News of the World phone hacking scandal.
The suit accuses Murdoch and the board of “failure to take any action to investigate, control, and limit the fallout from the hacking scandal” that “caused the company to lose billions of dollars in value.” The company’s value dropped $7 billion from July 4, when the scandal first broke, through July 11. Continue reading Another Pension Fund Sues over News Corp. Hacking Scandal
A group of property owners say a Quebec, Canada-based wood siding maker sold them wood shingles that warped and cracked despite extensive warranties, and filed suit in New Jersey federal court last Friday against the company.
Maibec produces siding under the brand names Nantucket Kennebunk and Ben Harbor and distributes its products throughout more than a dozen states. The lead plaintiff in the case, James Vander Veer, claims that Maibec’s eastern white cedar tree shingles break down long before the end of the company’s 50-year warranty against wood decay. When that happens, Vander Veer alleges, Maibec fails to honor its warranty obligations. According to Vander Veer, Maibec is well aware that the shingles fail in a fraction of that time but intentionally conceals that the products deteriorate. Continue reading Maibec Class Action Lawsuit Claims Wood Shingle Siding is Defective
A whistleblower claims a California-based drug-testing firm has been defrauding the government for millions of dollars since it first opened.
According to a report at MainJustice.com, a whistleblower lawsuit has been filed against Millenium Laboratories, accusing it of operating a scheme in which physicians claim they use the company’s urinalysis up to 20 times per day when they only use it once. Continue reading Drug testing firm defrauded government programs for millions
A class-action lawsuit has been filed against CitiMortgage for illegally foreclosing on thousands of military families‘ homes while the soldiers served active duty.
According to a CourthouseNews.com report, the lawsuit was filed by U.S. Army Sgt. Jorge Rodriguez, who says Citi began foreclosure proceedings on him while he was serving active duty and in a situation that prevented him with contacting “the outside world.”
Rodriguez filed the lawsuit on behalf of what he and his attorney believes are thousands of military families who’ve either lost their home or faced foreclosure drama as a result of illegal and false filings by CitiMortgage.
Service members are protected from foreclosure while serving active duty by the Servicemembers Civil Relief Act. Rodriguez says CitiMortgage filed a false affidavit indicating he was not serving actively in the Army.
Rodriguez bought a Texas home in 2003, prior to joining the Army. After purchasing his home, the mortgage on it was purchased by CitiMortgage. The sergeant was deployed with his National Guard unit to Iraq in early 2006.
While receiving pre-mission training at Fort Hood, N.J., Rodriguez was not permitted to contact anyone outside the base, a condition known as “lock down” for soldiers about to embark into an active combat zone.
CitiMortgage sold Rodriguez’ home at a foreclosure sale at the end of May 2006, after filing the false affidavit.
Wells Fargo Bank has settled a class-action lawsuit which accused the company of failing to pay overtime to employees.
According to a report at VegasInc.com, former employee Amber Salazar sued Wells Fargo in 2009 because she said the bank was forcing herself and other employees in her position to work “off-the-clock” and then mislabeled them as salaried employees. Continue reading Wells Fargo settles unpaid overtime lawsuit
Banks say they have made major improvements in how they handle struggling homeowners four years into foreclosure crisis. They’ve promised not to foreclose on homeowners who are being considered for mortgage modifications, but yet it’s still happening.
Such a scenario is senseless because modifying the mortgage by reducing the monthly payment might be in the best interest of not only the homeowner, but also of the investor who owns their mortgage. Continue reading Despite Bank Claims of Improvements, Wrongful Foreclosures Continue
Liberty Mutual Insurance Co. of Boston and Safeco Corp. sued Goldman Sachs Group for securities fraud, saying the brokerage firm made “misleading statements and omissions” in a preferred-stock offering for Federal Home Loan Mortgage Co. in 2007.
The plaintiffs, including Peerless Insurance Co., claim they invested $37.5 million the offering of Freddie Mac shares, which were underwritten by Goldman. The information came to light in a filing in federal court in Boston on Wednesday. Continue reading Insurers Sue Goldman Sachs for Securities Fraud
The top legal officer for New York is subpoenaing nine life insurers to gain information about their practices in identifying and paying out policies for deceased customers.
New York Attorney General Eric Schneiderman sent subpoenas to AXA SA, Genworth Financial Inc, Guardian Life Insurance Co of America,
Manulife Financial Corp, Massachusetts Mutual Life Insurance Co, MetLife Inc, New York Life Insurance Co, Prudential Financial Inc, and TIAA-CREF. Continue reading Life Insurance Tactics Draw Scrutiny in New York
New York’s Attorney General has subpoenaed at least nine life insurance companies to ensure they’re doing all they can to pay death benefits to policy holders’ beneficiaries.
According to a Wall St. Journal report, AG Eric Schneiderman wants all insurance companies who were issued subpoenas to double-check their policy holders with a federal death database to ensure they’ve made all proper payouts on death benefits. Continue reading Life insurance companies accused of avoiding death benefit payments