Archive for November, 2006

Stock Buybacks, Three-Card Monte, and the Great EPS Scam

Now that the class-action sharks have begun to notice the juicy potential of the trillion-dollar corporate buyback fraud, its time to carefully evaluate their chances of winning. All it will take is one highly-publicized successful suit with billion dollar damages to convince corporate executives of the error of their ways, sending tort lawyers into a feeding […]

Stock Buybacks, Dividend Equivalency, and Securities Fraud

Now that litigators of class-action lawsuits have expressed concern as to the fairness of stock buybacks that dominate the equity markets, it is time to look beyond the rationalizations of Wall Street and try to judge the legal perils inherent in the buyback movement. After all, if executives and directors come to find themselves in legal […]

Heads Up! CEOs Using Stock Buybacks Are Now Threatened

According to an article in CFO Magazine of November 2006 (”Can You Have Your Stock and Sell It, Too?“), plaintiff’s attorney William Lerach of Lerach Coughlin* recently said: “In our view, there is an inherent conflict of interest when insiders are using the stockholders’ money to buy back shares on the theory that they […]

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