Tuesday, September 30, 2014 6:01 PM PT
By LORRAINE BAILEY 

     (CN) - An investment fund that sold its claim to liquidated Madoff assets for less than it was worth may yet unravel the deal, the 2nd Circuit ruled. 

By RYAN ABBOTT  

     WASHINGTON (CN) - A conflict of interest does not prevent a government agency from replacing the plaintiff accusing Fannie Mae of gross mismanagement, a federal judge ruled. 

By MOLLY WILLMS  

     MINNEAPOLIS (CN) - A hedge fund manager and his companies will not get a retrial in a securities fraud case springing from Thomas Petters' $3.7 billion Ponzi scheme, a federal judge ruled. But they will not suffer civil penalties, and the manager's wife was dismissed as a relief defendant. 

By LORRAINE BAILEY 

     (CN) - A federal judge dealt a blow to big-banking interests by upholding a policy extending regulatory reach to the overseas subsidiaries of U.S. financial firms involved in derivative swaps. 

By COURTNEY WALTERS 

     WEST PALM BEACH, Fla. (CN) - Accused of aiding and abetting a $60 million Ponzi scheme in South Florida's Haitian community, Wells Fargo failed to charm a federal judge with its affirmative defenses. 

By MARK THOMPSON 

     (CN) - Already mired in multiple lawsuits accusing its credit-rating subsidiary, Standard & Poor's, of issuing fraudulently rosy ratings of mortgage-backed securities, McGraw-Hill has a newly emboldened shareholder action to worry about. 

By JACK BOUBOUSHIAN 

     CHICAGO (CN) - The 7th Circuit affirmed the convictions of three men who turned a respected financial firm into a Ponzi scheme, using $200 million of investors' money to finance their lavish lifestyle. 

By ADAM KLASFELD 

     MANHATTAN (CN) - A former S.A.C. Capital executive whose $276 million insider-trading scheme involved an Alzheimer's drug cannot upend his conviction, a federal judge ruled. 

By NCK DIVITO 

     MANHATTAN (CN) - PricewaterhouseCoopers must defend itself against a $1 billion lawsuit that claims its "improper accounting advice" caused former New Jersey Gov. Jon Corzine's MF Global Holdings to go belly up in 2001, a federal judge ruled. 

By LORRAINE BAILEY 

     (CN) - Longwei Petroleum's auditors must face shareholder claims that they repeatedly issued fraudulent audit opinions, a federal judge ruled, declining to reconsider a prior ruling. 

By LORRAINE BAILEY 

     (CN) - A federal judge awarded an investment firm a default judgment in Delaware against China MediaExpress, a Chinese advertising company accused of grossly exaggerating its value by more than $50 million. 

By PHILIP A. JANQUART 

     (CN) - A merger between Bolt Technology Corp. and Teledyne Technologies Inc. is unfair to Bolt shareholders, a class claims in federal court.

By PHILIP A. JANQUART 

     (CN) - A Hong Kong-based company is operating a Ponzi scheme through a U.S. shell corporation designed to rip off investors, the Securities and Exchange Commission claims in federal court.

By LORRAINE BAILEY 

     
     (CN) - Merck's $16.7 billion offer for chemical company Sigma-Aldrich is a "bargain basement price," shareholders say, seeking an injunction against the proposed deal.

     ATLANTA (CN) - A Georgia man raised $105 million in a massive pyramid scheme through his Atlanta-based company Zhunrize, which purports to sell online stores through which "members" can sell merchandise, the SEC claims in court.

By PHILIP A. JANQUART 

     (CN) - China Housing & Land Development Inc. executives and directors are pushing through a reverse stock split transaction as part of an unfair buyout of the firm by its management, shareholders claim in federal court.

By NICKEESHA SWABY 

     (CN) -Shareholders of Kinder Morgan Energy Partners claim company directors imposed a hefty tax burden on them after entering into a deal to sell the company to Kinder Morgan Inc. for $42 billion.

By PHILIP A. JANQUART 

     
     (CN) - DreamWorks Animation SKG Inc. withheld losses from its film "Turbo," causing a firestorm of lawsuits and a Securities and Exchange Commission investigation, a shareholder derivative says.

By PHILIP A. JANQUART 

     (CN) - Rocket Fuel Inc. execs dumped $175 million in personal stock as questions surrounding the company's exposure to electronic ad fraud began to surface, stockholders say in federal court.

By NICKEESHA SWABY 

     
     (CN) - Salix Pharmaceuticals shareholders want to halt the company's plan to merge with Cosmo Tech, a subsidiary of Cosmo Pharmaceuticals, claiming in a class action that the price for the firm is far too low.

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.

By MATT REYNOLDS 

     SANTA ANA, Calif. (CN) - The former CEO of an Orange County medical supply firm was federally charged Wednesday with passing inside-trading tips to his friend, former professional baseball player Doug DeCinces. 

By CAMERON LANGFORD 

     HOUSTON (CN) - The former CEO of a Houston investment firm made $326,000 by trading on inside information about the firm's clients, federal prosecutors say. 

By ADAM KLASFELD  

     MANHATTAN (CN) - Neither the philanthropy, devoted fatherhood or previously clean criminal record of former S.A.C. Capital executive Mathew Martoma dissuaded a federal judge on Monday from sentencing him to 9 years in prison - above prosecutors' expectations - for a $276 million inside-trading scheme involving an Alzheimer's drug.

     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. 

By DAVID LEE 

     (CN) - With Burger King moving its headquarters to Canada, U.S. officials announced new steps to discourage corporate inversions that avoid U.S. taxes.

By LORRAINE BAILEY 

     (CN) - The Securities and Exchange Commission adopted new rules to give investors detailed information about the loans underlying asset-backed securities.

By PHILIP A. JANQUART 

     (CN) - Nationally Recognized Statistical Rating Organizations (NRSROs) will have to follow new requirements for enhanced governance and accountability under new rules adopted by the Securities and Exchange Commission. 

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.