JURIST - Paper Chase: Regulators eye Invesco Funds in expanding mutual fund scandal

In Tuesday's corporations and securities law news, New York Attorney General Eliot Spitzer may file a civil complaint against Amvescap Plc's Invesco Funds Group with allowing numerous hedge funds to make improper trades in its mutual funds. A spokesman for Amvescap indicated the company would vigorously fight any charges brought against the company. Read the Amvescap press release here [PDF]. Bloomberg.com has more.... Allegations of illegal stock-trading by the chairman of Samsung Group, Lee Kun-hee, could be heard in court for the first time after prosecutors indicted two men involved in the case. For three years, shareholder rights advocates have been trying to bring this case to court as an example of how founding families abuse their control of South Korea's giant business groups against the interest of minority shareholders. The Financial Times has more.... A bankruptcy judge has granted creditors the right to sue two Houston law firms, Arthur Andersen and several dozen former executives for negligence and fraud related to the energy company's downfall. These defendants are expected to be added to a lawsuit filed last year against nine former Enron executives, including former Chairman Ken Lay, former Chief Executive Officer Jeffrey Skilling and former Chief Financial Officer Andrew Fastow. The Houston Chronicle has more.... Five members of the board of directors of HealthSouth Corp. will be replaced as part of a settlement with the Teachers Retirement System of Louisiana, which is suing the scandal-plagued health care company. Read the HealthSouth press release here. Reuters has more

click for previous corporations and securities law news

UPDATE: New York State Attorney General Spitzer announced civil charges against Invesco Funds this afternoon, in coordination with the Securities and Exchange Commission. Read his complaint [PDF] and an accompnaying press release. An SEC press release is also available.