The Associated Press reports that PayPal founder Peter A. Thiel and his hedge-fund management company, Clarium Capital Management, are being accused of fraud in a lawsuit filed Monday. Amisil Holdings, a risk capital investor, filed the claim in the hopes of recovering its investment in Clarium, which is worth up to $18 million. Clarium General Counsel Bruce Gibney said in a statement that Clarium believes Amisil's claims are based on numerous misstatements of fact and have no merit.

PayPal is an online payment processing company, based out of California. The lawsuit claims that Clarium received large monetary gain from the initial 2002 PayPal public offering and its sale to eBay. Amisil received no return on its Clarium investment from the transactions.

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Clarium Capital Hedge Fund Sued for Fraud
PayPal
Legal View: Securities

Posted by Patricia Bowling at 07:58 PM | Permalink | Comments (0) | TrackBacks (0)

The Toledo Blade reports Toledo-based automotive supplier Dana Corp. is being sued for securities fraud because executives are accused of giving false financial statements leading up to their bankruptcy in March. The alleged false statements led to an inflation of Dana stock value and the lawsuit demands unspecified damages to be rewarded to the investors.

Dana Corp filed for bankruptcy in March 2006 in order to "address financial and operational challenges that have hampered its performance." Dana's European, South American, Asia-Pacific, Canadian, and Mexican branches were not included in the Chapter 11 filing.

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Dana Corp
CBS News

Posted by Patricia Bowling at 03:48 PM | Permalink | Comments (0) | TrackBacks (0)

Who thought you'd have to beware of winning the lottery? Someone gets a call telling them they have won the lottery, they only need to pay some transaction fees to get their winnings ... the fees they pay disappear with the person to whom they paid the fees. This con doesn't even bother messing around with securities, it just goes straight for the victim's cash with nothing to show for it.

Posted by Chris Claassen at 12:51 PM | Permalink | Comments (0) | TrackBacks (0)

If you've been wondering what happened to all those people charged in the Enron Scandals, BusinessWeek has decided to help you out and provide us with an Enron Status Update.

Posted by Chris Claassen at 12:29 PM | Permalink | Comments (0) | TrackBacks (0)