Friday, August 22, 2014 4:50 PM PT
By LORRAINE BAILEY 

      (CN) - A forum-selection clause in Goldman Sachs and Citigroup contracts supersedes their obligation under FINRA rules to arbitrate disputes with a customer, the 2nd Circuit ruled. 

By LORRAINE BAILEY 

     (CN) - A federal judge must reconsider the certification of a class against Regions Financial in a securities fraud case in light of the Supreme Court's recent ruling in Halliburton II, the 11th Circuit ruled. 

By NICK DIVITO  

     MANHATTAN (CN) - Victims of Bernard Madoff's massive Ponzi scheme can collect on a $410 million settlement despite obstruction from Madoff's bankruptcy trustee, the 2nd Circuit ruled. 

By DAVID LEE 

     DENVER (CN) - Chesapeake Energy cannot be sued for securities fraud because its failed disclosure of hedging strategies to shareholders was not material or misleading, the 10th Circuit ruled. 

By DAVID LEE 

     NEW YORK (CN) - A Saudi investor cannot arbitrate claims of $385 million in hedge fund investment losses against Citigroup because he was not a domestic "customer," the 2nd Circuit ruled. 

By JACK BOUBOUSHIAN 

     (CN) - A shareholder class action against AIG for devaluing 78 million equity units cannot proceed in either state or federal court as a class action, the D.C. Circuit ruled. 

By LORRAINE BAILEY 

     (CN) - United Western Bancorp's 2009 opinion that mortgage-backed securities would rebound was genuine, even if it was "spectacularly wrong," the 10th Circuit ruled, dismissing a shareholder class action. 

By MARLENE KENNEDY 

     
     
     WASHINGTON (CN) - A federal judge ordered two government agencies to look harder for documents requested by a convicted white-collar criminal who believes evidence important to his defense was withheld by prosecutors. 

By ADAM KLASFELD 

     MANHATTAN (CN) - A deal between Citigroup and regulators allowing the bank to settle $600 million mortgage fraud claims for a fraction of that amount must move forward, despite a federal judge's lament that an appellate court's insistence he approve the plan has left him with "nothing but sour grapes." 

By LORRAINE BAILEY 

     (CN) - Electronic Game Card's former CEO cannot strike portions of a complaint drawn from information acquired in a subpoena of the company's auditor, the 9th Circuit ruled. 

By LORRAINE BAILEY 

     (CN) - Shareholders sued Apple and its board after a federal judge rejected a $325 million settlement offer, in an opinion that shined a spotlight on Steve Jobs' central role in the alleged "gentlemen's agreements" between tech companies that served to keep tech industry wages low.

By NICKEESHA SWABY  

     (CN) - Bally Technologies investors are challenging an acquisition of the company by smaller competitor Scientific Games Corp. for $3.3 billion in court.

     MANHATTAN (CN) - A former manager sued Moody's in a qui tam complaint, claiming the ratings service cost the federal government billions of dollars by falsely evaluating mortgage-backed securities and collateralized debt obligations before the financial crisis.

By PHILIP A. JANQUART 

     
     (CN) - An $8.5 billion merger between Family Dollar Stores Inc. and Dollar Tree Inc. resulted from an unfair process giving shareholders an unfair price, they claim in a class action.

By DAN MCCUE 

     (CN) - The U.S. Securities and Exchange Commission charged a former bank executive and a long-time friend with insider trading in advance of the Eastern Bank Corp.'s purchase of another financial institution in 2010. 

By LORRAINE BAILEY 

     (CN) - Shareholders of Journal Communications, the publisher of the Milwaukee Journal Sentinel, want to halt the company's proposed merger with media giant E.W. Scripps Company.

By PHILIP A. JANQUART 

     (CN) - Trulia Inc. shareholders are getting short-changed in a deal with Zillow Inc. where both companies aer set to become subsidiaries of a parent corporation, they say in a class action.

By NICKEESHA SWABYN 

     (CN) - Penn West Petroleum Ltd., one of Canada's largest oil and gas exploration firms, is facing a $400 million class action alleging senior executives boosted the company's stock price with misleading financial statements.

By PHILIP A. JANQUART 

     (CN) - A $6.2 billion merger between Rockwood Holdings Inc. and Albemarle Corp. fails to net shareholders the full value of their shares, they say in a Delaware Court of Chancery.

     
     SAN FRANCISCO (CN) - The three top executives of Yelp sold more than $20 million of their own shares at prices inflated by false and misleading statements, and the stock price cratered by one-third when the truth came out, shareholders claim in a federal class action.

By MATT REYNOLDS  

     LOS ANGELES (CN) - Executives at GrowLife manipulated the company's share price to issue below-market shares to insiders, then dumped millions of shares in the market just before the company was suspended from trading, a shareholder claims in a derivative complaint.

By PHILIP A. JANQUART 

     (CN) - A $6.4 billion merger between International Game Technology and GTech S.p.A. is designed to avoid American taxes, shareholders allege in a class action.

By LORRAINE BAILEY 

     (CN) - Three banks that "fix" the market price of silver each day in a private conference call used their insider knowledge to manipulate the silver futures market to make "millions, if not billions" in profit, a class claims in court.

     WASHINGTON (CN) - Bank of America will pay nearly $17 billion to settle federal charges involving its sale of mortgage-backed securities before the 2008 financial crisis, the Department of Justice and SEC announced.

     WASHINGTON (CN) - The SEC accused Kansas of securities fraud, claiming the state failed to disclose in bond offerings that its pension system was "significantly underfunded" and the unfunded pension liabilities created a risk for investors. 

By WILLIAM DOTINGA 

     (CN) - U.S. taxpayers' share of the former finance arm of General Motors has declined from 74 percent in 2010 to 16 percent today, the Government Accountability Office said in a report on the Troubled Asset Relief Program, amid signs that the Great Recession that began in 2008 is starting to ease. 

     (CN) - AIG has reportedly agreed to pay $960 million to resolve a shareholder lawsuit stemming from the collapse of the company's value in the wake of its bailout by the federal government in 2008.

     WASHINGTON (CN) - Former New Mexico Gov. Toney Anaya is one of four people the SEC charged Wednesday with concealing from investors that Natural Blue Resources, a microcap company, was run by "two lawbreakers." 

     
     BOSTON (CN) - The SEC charged five men with conspiring to manipulate the stock price of an empty shell company - which the FBI actually controlled, in a hunt for stock manipulators. 

By ADAM KLASFELD 

     MANHATTAN (CN) - A federal jury found Rengan Rajartnam not guilty of the charges that brought down his older brother, Galleon Group founder Raj Rajaratnam.

By PHILIP A. JANQUART 

     (CN) - Brokers reconciling customer disputes can no longer use expungement of the potentially damaging information as a condition of settlement, the Financial Industry Regulatory Authority announced. 

By TISH KRAFT 

     WASHINGTON (CN) - The Securities and Exchange Commission has issued a regulation to make money market funds less susceptible to redemption in times of economic stress.

By LORRAINE BAILEY 

     (CN) - SIFMA reiterated its opposition to the Department of Labor's proposed expansion of the fiduciary duty standard, claiming that it will harm everyday investors' ability to save for retirement.