Article: Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer

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Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer

Rachel Stone, 16 April 2021

A pension fund voluntarily ended its proposed class action against Tesla and its multibillionaire founder, Elon Musk, which claimed the automaker and a group of big banks acting as underwriters misled investors on a $1.8 billion bond offering.

Inter-Local Pension Fund GCC/IBT has bowed out of its securities fraud suit in California federal court following a decision in the Ninth Circuit in March not to rehear a related case, according to a notice filed Thursday. Continue reading “Article: Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer”

Article: Bay Area oil company executive charged with market manipulation

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Bay Area oil company executive charged with market manipulation

NATE GARTRELL, 22 March 2021

SAN FRANCISCO — Federal prosecutors in the Bay Area have charged a local resident with conspiracy to manipulate the oil market, a crime that prosecutors say was committed while he was a vice president at an oil company.

Emilio Collado, aka Emilio Heredia, was charged earlier this month with a single count of conspiracy. The charging records allege that since 1998, Collado worked at two oil companies, one of which bought out the other one in 2014. The companies are referred to in court records not by their names but as “Company A” and “Company B.”

The charging records allege that Collado and unnamed co-conspirators deliberately misled price assessors toward oil prices “that did not reflect legitimate forces of supply and demand.” Collado allegedly manipulated the prices depending on his company’s needs; when they were selling, the manipulated price went high, and when they were buying, it went low, prosecutors allege.

For instance, on Aug. 24, 2016, Collado allegedly shifted the price per metric ton of oil down by roughly $40, “resulting in an unlawful gain of hundreds of thousands of dollars to Company B” on that day alone, the charging records say.

Collado is set to appear in court Wednesday afternoon before U.S. District Judge Charles Breyer for a change of plea hearing. Generally, change of plea hearings are set when a defendant has agreed to plead guilty or no contest to a charge, though no plea deals have been announced in Collado’s case.

If he’s convicted, Collado faces a maximum of five years in federal prison and a $250,000 fine, court records show

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Article: Supreme Court Decides Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning

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Supreme Court Decides Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning

Chuck Webber, Jeffrey P. Justman, James G. Martignon, 05 May 2016

On May 16, 2016, the Supreme Court of the United States decided Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning, No. 14-1132, holding that that the “arising under” test for federal-question jurisdiction under 28 U.S.C. § 1331 determines whether federal courts have exclusive jurisdiction under section 27 of the Securities Exchange Act of 1934 (the “Exchange Act”) of lawsuits to enforce liabilities or duties created by that Act. (The Court did not address the portion of section 27 that gives federal courts exclusive jurisdiction of “violations of this chapter or the rules and regulations thereunder” with respect to criminal and regulatory enforcement actions.)

Greg Manning owned stock in Escala Group, Inc., a company traded on the NASDAQ. Between 2006 and 2007, Escala’s share price plummeted and Manning lost most of his investment. Manning blamed Merrill Lynch and other financial institutions for devaluing Escala during that period through “naked short sales” of its stock, under which one borrows stock from a broker and sells it to a buyer on the open market, but never delivers the shares back to the buyer. “Naked” short sales of stock may be designed to drive down a company’s stock price, and are accordingly regulated by Regulation SHO. Continue reading “Article: Supreme Court Decides Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning”