Legal Question in Securities Law in California

Attorneys Only: Answer this Question

A fortune 500 CFO admits to having deliberately treated $4 billion in operating expenses as assets, thereby allowing the corporation to show profits instead of losses, The auditor never detected this. The corps stock dropped 95% and bond covenants related to billions in debt are breached. At its peak price last year, the CFO sold stock acquired through stock options for $15 million, generating a $10 million gain.

What provision(s) of the securities law will probably be the basis for a class-action lawsuit by stockholders?

Asked on 10/01/11, 1:40 pm

2 Answers from Attorneys

Daniel Bakondi The Law Office of Daniel Bakondi
0 users found helpful
0 attorneys agreed

I am the right attorney to address this issue. There would be nearly a dozen separate causes of action, both securities specific, and others. I currently have several cases this large pending. My law firm focuses on securities fraud, and specifically investment losses due to material omissions and misrepresentations, and pursues such matters in both litigation and arbitration. Please send me an email with your contact info and let me know when you will be available for a discussion. You may check out my website for more info.

Best,

Daniel Bakondi, Esq.

danielbakondi@yahoo.com

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

IMPORTANT NOTICE: This communication may contain confidential information, privileged information, or attorney work product. If you are not the intended recipient or received this message in error, any use or distribution of this message is strictly prohibited and unlawful. Please notify the sender immediately, and delete this message. No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Attorney licensed in California only. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.

Read more
10/01/11, 9:02 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law
0 users found helpful
0 attorneys agreed

We don't answer law-school type hypothetical questions. Further, I have no idea how operating expenses could be treated as assets, any more than sales could be treated as inventory. They are unrelated accounting concepts, not susceptible to the type of fraudulent mistreatment you propose.

Read more
10/01/11, 9:02 pm

Related Questions & Answers

More Securities Law questions and answers in California

Looking for something else?

Get Free Legal Advice

88122 active attorneys ready to answer your legal questions today.

Securities Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
Terry A. NelsonNelson & LawlessRiverside, San Bernardino, CA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now