Enron law firm sues Goldman Sachs
Recent Cases
The law firm that won Enron investors $7.2 billion in what was one of the largest class action suits in the history of securities law filed charges against Goldman Sachs on Monday.
Robbins Geller Rudman and Dowd filed the lawsuit in U.S. district court in Manhattan, aiming to recover investors' losses stemming from the fraud charges issued earlier this month by the Securities and Exchange Commission.
The suit, which currently names investors Howard Sorkin, Ilene Richman and "all other similarly situated" as the plaintiffs, is seeking class-action status.
It charges Goldman Sachs, as well as C-suite members CEO Lloyd Blankfein, CFO David Viniar, and President and COO Gary Cohn, with deceiving investors about the bank's financial conditions.
The complaint alleges that by failing to disclose conflicts in the sale of ABACUS 2007-AC1 -- the now-famed financial portfolio at the center of the SEC's charges -- Goldman Sachs caused investors to purchase the stock at artificially inflated prices.
Related listings
-
Miami-Dade clinic operator pleads guilty to Medicare fraud
Recent Cases 04/12/2010Ihosvany Marquez spent his Medicare millions on a fleet of luxury cars, authorities say, including a Lamborghini Murcielago with spaceship-like doors that cost $455,959.Early Monday, he pleaded guilty in Miami federal court to healthcare fraud charge...
-
Failed mobile phone dealer ran law firm, say staff
Recent Cases 02/22/2010The former owner of two failed companies was the person in “de facto” charge of Cheadle-based law firm Wolstenholmes prior to its collapse in December, Crain's has discovered.Ex-staff who spoke on condition of anonymity said that Wasim Saddique, who ...
-
Woman with .708 blood-alcohol level pleads guilty
Recent Cases 01/20/2010A South Dakota woman who prosecutors say had a blood-alcohol level almost nine times the legal driving limit has pleaded guilty to two drunken driving charges. Authorities said 45-year-old Marguerite Engle was arrested Dec. 1 when she was found passe...
Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.