Author: Justin Lane

Early last week the Financial Industry Regulatory Authority (FINRA) proposed changes to the Securities and Exchange Commission (SEC) regarding the ambiguous and nebulous position of nontraded real estate interest trusts (REITs). The new rules seek to improve the valuations of REITs. “Nontraded REITs have been a subject of concern for a considerable time,” commented Peter Mougey, a partner with the Levin, Papantonio law firm and director of the firm’s Business Torts and Securities Litigation departments. “Nontraded REITs charge exorbitant fees and costs and are designed to maximize commissions not as a portion of a well-allocated portfolio.” The new rule will affect valuations by taking into account the fees...

Individuals with UBS Puerto Rico funds are certainly feeling the pain of Standard & Poor’s and Moody’s decision to depreciate Puerto Rico’s bonds to “junk” status last week. Speculators predict that other rating agencies are likely to follow suit and rate Puerto Rico’s bonds as junk very soon. “The territory has been distressed for some time,” commented Peter Mougey, a partner at the Levin, Papantonio law firm and director of the firm’s Business Torts and Securities Litigation departments. “But unfortunately, less scrupulous advisors continued promoting the funds due to the area’s tax status, among other things, and raking in unjustifiable fees and costs off the backs...

Phillip D. Murphy was the managing director of Bank of America’s municipal derivatives products desk in the late 90’s and early 2000’s. Yesterday, he pleaded guilty to defrauding the government before U.S. District Judge Max O. Cogburn and faces potentially 40 years in prison and over $1 million in fines. “The bid rigging drains our local cities of money they need to provide essential services,” commented Peter Mougey, a shareholder with the Levin, Papantonio law firm and director of the firm’s Business Torts and Securities Litigation Department. “This is just another example of the uneven playing field for market...

New documents have revealed that employees of the pharmaceutical manufacturer Boehringer Ingelheim were worried that sales of Pradaxa could have been damaged if it gained knowledge that users of the popular blood thinner could have required additional testing. Pradaxa was approved for sale in U.S. markets in 2010. Since then, lawsuits have been mounting against the manufacturer over allegations that the blood thinner has caused the deaths of thousands of patients. The new documents in the Pradaxa lawsuit were unsealed last Thursday by Judge David R. Herndon. According to the New York Times, the drug has been responsible for...

Ring of Fire’s top news from the past week. Video Rewind   Duke Energy Coal Ash Spill Pollutes NC River   On Monday afternoon, Duke Energy reported that the company spilled between 50,000 to 82,000 tons of coal ash into the Dan River in North Carolina. “Initial indications are that 22 million gallons of coal ash could already be in the Dan River headed toward the downstream communities of Eden and Danville,” the Dan River Basin Association (DRBA) reports. JPMorgan Agrees to $615M Settlement for Bad Mortgages   On Tuesday, JPMorgan Chase & Co. agreed to settle claims that...