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Bernstein Liebhard LLP Announces Class Action
Press Release |
2012/01/10 09:53
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Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Camelot Information Systems Inc. American Depositary Shares between July 21, 2010 and August 17, 2011, including those who acquired Camelot ADSs pursuant or traceable to the Company’s false and misleading Registration Statements and Prospectuses issued in connection with its July 21, 2010 initial public offering and December 10, 2010 Secondary Offering.
The complaint charges Camelot, certain of its officers and directors and the underwriters of the Offerings with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Camelot is a holding company that conducts business through its operating subsidiaries in China. The Company is a provider of enterprise application services and financial industry information technology services in China.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, defendants failed to disclose negative trends in Camelot’s business, including with Camelot’s most important customers. As a result of defendants’ false statements, Camelot ADSs traded at artificially inflated prices during the Class Period, reaching a high of $26.73 per share on January 11, 2011.
On July 21, 2010, Camelot announced the pricing of its IPO of 13.3 million ADSs at $11.00 per ADS. Subsequently, on December 9, 2010, Camelot announced the pricing of its Secondary Offering of 7,160,206 ADSs by selling shareholders at $19.50 per ADS. The complaint alleges that the Registration Statements issued in connection with the Offerings were inaccurate and misleading and omitted to state material facts required to be stated therein.
On August 15, 2011, Seeking Alpha published an article questioning several key components of Camelot’s business. This caused Camelot’s ADSs to drop to below $9 per share. Then on August 18, 2011, Camelot issued a press release announcing its second quarter 2011 unaudited financial results, including lower-than-expected guidance for fiscal 2011. On this news, Camelot’s ADSs dropped $2.24 per share to close at $6.32 per share on August 18, 2011, a one-day decline of 26%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company’s IT professionals were not a competitive advantage to the Company and many were dissatisfied with Camelot, which would adversely affect Camelot’s ability to retain its customers; (b) the Company was suffering from undisclosed attrition of employees, which was having a negative impact on the Company’s ability to attract new customers; (c) Camelot did not have the large numbers of highly trained professionals at its disposal that it had represented; and (d) Camelot’s contract with its most important customer, IBM, was not as solid as represented, and would not be renewed on the same terms.
www.bernlieb.com
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Details emerge about hatchet, razor attacks in Missouri
Topics in Legal News |
2012/01/09 10:09
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Court documents reveal grisly details about the hatchet killing of one woman and the razor attack of another in northwest Missouri, crimes that have been connected to a Platte City man.
Quintin P. O'Dell, a 22-year-old Eagle Scout, is scheduled to be arraigned Monday on charges of first-degree murder, first-degree assault and armed criminal action. Prosecutor Eric Zahnd said the death penalty would be considered in the Platte County Circuit Court case.
O'Dell is jailed in Platte County on a $750,000 cash-only bond. There is no record of him having an attorney, according to the prosecutor's office.
The investigation into the hatchet attack began this spring after the body of Alissa Faye Shippert, 22, was discovered. She had been attacked while fishing in the Platte Falls Conservation Area.
But O'Dell, who had worked with Shippert at a convenience store, wasn't charged in the crime until after he was questioned in the December razor attack. The victim in that incident, a 21-year-old woman, awoke in her Ferrelview apartment the morning after Christmas with her belly slashed open.
Authorities said she was unconscious and on a ventilator for several days after the attack. According to the probable cause statement, she gradually began sharing details with investigators, including that she had spent Christmas night drinking with O'Dell.
According to court documents, O'Dell was interviewed by investigators this past week and told them he called the woman Christmas night and asked if he could "hang out." She agreed and he arrived after 11 p.m. with a six-pack of beer and a bottle of tequila, a detective said in the probable cause statement. |
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Ill. lawyer wins appeal in NY trial of $2.4B fraud
Topics in Legal News |
2012/01/09 10:08
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A Chicago lawyer sentenced to seven years in prison in a $2.4 billion fraud at Refco Inc. is entitled to a new trial because of errors the judge made in dealing with the jury, a federal appeals court said Monday.
The 2nd U.S. Circuit Court of Appeals overturned the conviction of Joseph P. Collins, saying U.S. District Judge Robert P. Patterson erred when he failed to disclose the contents of a jury note and didn't include lawyers when he spoke with a juror accused of trying to barter his vote.
"This sequence of events deprived Collins of his right to be present at every stage of the trial. Because the deprivation was not harmless, we vacate and remand for a new trial," the appeals court wrote.
The lawyer from Winnetka, Ill., was convicted in July 2009 of conspiracy and other charges. Federal sentencing guidelines had called for 85 years in prison.
Refco was once one of the nation's largest independent commodities brokers.
The company in the mid-1990s sustained hundreds of millions of dollars of losses through losing trades and engaged in an elaborate campaign to cover them up, attracting the attention of federal authorities. Refco filed for bankruptcy in 2005, just weeks after going public and soon after revealing that a $430 million debt owed to the company by a firm controlled by former Refco CEO Phillip Bennett had been concealed. |
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Texas electoral maps at issue before Supreme Court
Legal Business |
2012/01/09 10:08
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A federal law says states and localities with a history of discrimination cannot change any voting procedures without first getting approval from the Justice Department or a federal court in Washington. Yet Texas is asking the Supreme Court to allow the use of new, unapproved electoral districts in this year's voting for Congress and the state Legislature.
The outcome of the high court case, to be argued Monday afternoon, could be another blow to a key provision of the Voting Rights Act. In 2009, the justices raised doubts about whether Southern states still should need approval in advance of voting changes more than 40 years after the law was enacted.
The case also might help determine the balance of power in the House of Representatives in 2013, with Republicans in a stronger position if the court allows Texas to use electoral districts drawn by the GOP-dominated Legislature.
The complicated legal fight over Texas' political maps arises from the state's population gain of more than 4 million people, most of them Latino or African-American, in the 2010 census, and involves federal district courts in Texas and Washington, as well as the Supreme Court. It has come to a head now because Texas needs to be able to use some maps to hold elections this year.
The state has so far failed to persuade three judges in Washington, including two appointees of Republican President George W. Bush, to sign off on new political maps adopted by the Legislature. The justices jumped into the case at Texas' request after judges in San Antonio who are hearing a lawsuit filed by minority groups drew their own political lines for use in the 2012 elections. |
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Court upholds charges in 'co-sleeping' baby death
Topics in Legal News |
2012/01/08 10:09
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The Utah Court of Appeals has refused to dismiss charges against a couple accused of killing their baby in 2006 by sleeping with him — their second child to die in bed with them.
The appeals judges sided with a lower court in a pair of opinions released Friday concerning the death of 3-month-old Kayson Merrill. The infant died while in bed between his father, Trevor Merrill, and mother, Echo Nielsen, both 28, of South Jordan.
The judges said that while a state medical examiner listed the official cause of death as "undetermined," there was enough evidence that "co-sleeping" caused the baby to suffocate to put the parents on trial.
The parents, whose first child also died while sleeping with them in 2003, have been charged with child-abuse homicide and reckless endangerment. They have pleaded not guilty.
Defense attorneys argued there wasn't enough certainty to go to trial after the medical examiner also cited illness and low birth weight in his report.
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