E*TRADE hit with class action

Court Alerts

[##_1L|1277350565.jpg|width="120" height="138" alt=""|_##]Coughlin Stoia LLP yesterday filed a class-action suit against E*TRADE Financial Corp., accusing the company of violating the Securities Exchange Act of 1934. The firm is filing suit on behalf of E*TRADE’s investors who purchased common stock in the firm between Dec. 14, 2006 and Sept. 25, 2007. E*TRADE’s CEO Mitchell H. Caplan and Robert J. Simmons, CFO and principal accounting officer, were also named as individual defendants in the suit.

In its complaint, San Diego-based Coughlin Stoia alleged that E*TRADE failed to disclose that it was experiencing high delinquency rates in its mortgage and home equity portfolios.

Instead, the suit alleges that E*TRADE had an overvalued securities portfolio with mortgage-backed assets.

They also allege that the firm kept investors in the dark about the falling mortgage market, which made the value of E*TRADE’s shares plummet.

Furthermore, throughout August, while the credit markets crashed and E*TRADE’s stock price dropped, the company continued insisting that was financially sound and that concerns on its market capitalization were unfounded, the suit said.

The financial services company, which originated mortgages and subprime loans, pulled from its wholesale mortgage business on Sept. 17.

Coughlin Stoia Geller Rudman & Robbins LLP was founded by William S. Lerach, the famed class-action lawyer.

A spokeswoman from E*TRADE said that the company does not comment on pending litigation.

Related listings

  • Brothers plead guilty to mortgage fraud

    Brothers plead guilty to mortgage fraud

    Court Alerts 10/04/2007

    [##_1L|1054133133.jpg|width="120" height="88" alt=""|_##]Two brothers whose convictions for running a mortgage scheme in suburban Rochester were recently overturned pleaded guilty Wednesday to mortgage fraud to avoid a new trial. Robert Amico, 45, an...

  • Friedman appeals to reverse sex abuse guilty plea

    Friedman appeals to reverse sex abuse guilty plea

    Court Alerts 10/04/2007

    [##_1L|1205486439.jpg|width="130" height="90" alt=""|_##]Jesse Friedman's last chance to clear his name of child molestation charges now rests in the hands of a federal judge who heard evidence on his case at a hearing yesterday. Friedman, 38, is try...

  • Vick not expected to attend court hearing

    Vick not expected to attend court hearing

    Court Alerts 10/03/2007

    [##_1L|1193276699.jpg|width="130" height="90" alt=""|_##]Michael Vick’s lawyers will make their first Surry County, Va. court appearance Wednesday for state dogfighting charges against the suspended Atlanta Falcons quarterback. Vick, already schedule...

Grounds for Divorce in Ohio - Sylkatis Law, LLC

A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party

Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party

However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read