November 2010 Archives

November 22, 2010

IMH Initial Public Offering (IPO) Put on Hold

Thumbnail image for whoa.jpgShareholders in the IMH Financial Corporation (formerly known as the IMH Secured Loan Fund) hoping to cash in on the promised initial public offering (IPO) should take note of the following information that was recently included in the Form 10-Q filed by IMH Financial Corporation on November 22, 2010:

We received notice on June 8, 2010 that we were the subject of an SEC investigation. After consultation with our potential underwriters, legal counsel and others, we believe that it is not probable at this time that we will be in a position to complete an IPO until matters concerning the SEC's investigation are clarified or resolved and market conditions are more favorable. We cannot determine at this time when matters before the SEC will be clarified or resolved.
November 9, 2010

Charles Schwab Backs Out of Yield Plus Class Action Settlement

The San Francisco Chronicle reported today that Charles Schwab plans to terminate their agreement to settle a class action lawsuit filed on behalf of shareholders in Schwab's YieldPlus fund--an ultra-short-term-bond fund. According to the Chronicle, Schwab has already put half of the $235 million settlement amount in escrow with the remainder to be paid in January. A hearing on Schwab's decision is scheduled for November 18.

Numerous YieldPlus investors elected to opt out of the class action in order to pursue an individual securities arbitration claim against Schwab to recover their losses. The opt out deadline was December 28, 2009. According to an April 21, 2010, article in the S.F. Chronicle, Schwab paid approximately $48 million to resolve individual customer arbitration claims while another 194 individual arbitration claims seeking $34 million in damages were still pending at the time of the Chronicle's article.

Click here for all YieldPlus blog postings.

November 3, 2010

SEC Proposes New Whistleblower Program Rules

On November 3, 2011, the Securities Exchange Commission (SEC) issued proposed rules in an effort to clarify the terms and procedures for recovering rewards under the new securities fraud whistleblower program. The SEC is seeking comments on the proposed rules through December 17, 2010. Please check back for updates and information about the whistleblower program on this blog.

Click here for all securities fraud whistleblower program blog posts.