When Oracle Corp. announced late last week that chief financial officer Greg Maffei would be leaving a little more than four months into the job, many observers credited Goldman Sachs analyst Rick Sherlund with “outing” the situation. That’s because Sherlund had raised questions about the finance executive’s whereabouts in a report published earlier that day. […]
Stephen Taub
Posted inRegulatory Enforcement
SEC Cracking Down On Delinquent, Serial Late Filers
The Securities and Exchange Commission is getting tough on serial late filers and delinquent filers. The Delinquent Filings Branch of the SEC’s Division of Enforcement has revoked the securities registrations of more than 90 companies in a little more than one year, and has sent a warning that there will be many more in the […]
Posted inBoards & Shareholders
Cos. Moving Faster Than Investors To Declassify Boards
For the first year on record, management submitted more proposals to repeal classified boards than did investors. That’s according to Subodh Mishra, a researcher at Investor Responsibility Research Center, who told Compliance Week that—in the first half of the year—companies filed about 60 proposals to declassify their boards, compared to roughly 50 shareholder resolutions calling […]
Posted inBoards & Shareholders
The Activist’s View: Q&A With Shamrock Capital
Shamrock Holdings was founded in 1978 by Stanley Gold to invest the assets of certain Disney family members, including Walt Disney’s nephew Roy E. Disney. It mostly kept below the radar until a couple of years ago, when Gold and Disney waged their highly public campaign to oust Michael Eisner as head of Walt Disney […]
Posted inRegulatory Enforcement
WorldCom Settlement With “Opt Out” Plaintiffs Expected
When Manhattan federal judge Denise Cote last month gave final approval to the $6.1 billion class-action settlement with WorldCom investors, it seemingly closed the books on the largest fraud in US history. Not so fast. According to several sources, a significant private settlement with WorldCom will be formally announced on or about Oct. 15. The […]
Posted inFrom the Archive
Does SEC Have A Case In Analyst Retaliation?
Is a company violating a Securities and Exchange Commission rule if it restricts access to information and communication to analysts who are not bullish on their stocks? This is what the regulator is trying to figure out. Chip maker Altera Corp. said the SEC asked for information relating to the company’s communications with equity analysts […]
Posted inFrom the Archive
Natural Disaster Risks Appearing On “Risk Factor” Radar
The widespread shutdown of businesses—from utilities and retailers to casinos and restaurants—from the two recent devastating hurricanes has been a stark reminder that weather and other natural disasters potentially pose major risks to a large number of companies. Henkin And though companies have been detailing the business risks of earthquakes and floods for years, attorneys […]
Posted inFrom the Archive
“Blame It On The Rain”: Katrina, Rita, And Earnings
As hundreds-and perhaps thousands-of companies total up their losses from Hurricane Rita, many of them will be quick to communicate this to their shareholders as they prepare to close their books for the September quarter. And, if the aftermath of Hurricane Katrina is any indication, a significant number of companies will issue warnings that earnings […]
Posted inBoards & Shareholders
Governance Data Show “Smart Money” Is Bottom Feeding
Earlier this month, GovernanceMetrics International released yet another survey linking good governance to good investments. According to the corporate governance research and ratings agency, its top rated companies—those with a score of 10—outperformed the S&P 500 Index for each of the last one-, three- and five-year periods ending September 1, 2005, providing excess returns of […]
Posted inRegulatory Enforcement
Don’t Be Misled By Recent Dismissals; Trend Still Down
Arecent flurry of class action lawsuit dismissals might lead you to believe that federal judges have become fed up with seemingly frivolous lawsuits. But the overall trend for dismissals is still down, and the “types” of the latest dismissals provide that the plaintiffs can—and likely will—refile their cases. In the past few weeks alone, at […]