According to CNN, Citibank, acting as Revlon's loan agent, accidently wired 100 times more than it intended, to Revlon's lenders. Some returned the money, others did not, and applied the funds to Revlon's loans.
Citibank sued, and lost.
Typically, mistaken payments and transfers returned to the payor. But in this case, the amount of the payment was exact, to the penny, of the amount owed, although the loan wasn't due yet.
https://www.cnn.com/2021/02/16/business/citibank-revlon-lawsuit-ruling/index.html
photo credit: Brechtbug 2020 Citi Bank Boarded on Broadway Midtown NYC 0133 via photopin <a href="https://creativecommons.org/licenses/by-nc-nd/2.0/">(license)</a>
Sallah Astarita & Cox in the news, at Law.com and Daily Business Review:
James Sallah of Sallah Astarita & Cox, said if true, the allegations in the complaint, specifically of accounting fraud and deficiency of internal controls, could be the basis of federal securities law violations if they made their way into public documents and are known internally to be inaccurate.Sandra Kuba, a senior financial analyst who has been with The Walt Disney Co. for nearly two decades, reported billions of dollars of alleged financial irregularities, and accused the financial arm of the publicly-traded entity of harassment and retaliation after she spoke out.And now attorney James Sallah, partner at Sallah, Astarita & Cox in Boca Raton and former senior counsel in the U.S. Security and Exchange Commission in Miami, said if Kuba’s allegations are true, the whistleblower complaint effectively laid out a blueprint to bring these types of cases to court.
Returning this authority to the division’s experienced senior officers, who have a proven track record of executing it prudently, helps to ensure that investigative staff can work effectively to protect investors in an era when the pace of fraud – like the pace of markets themselves – is ever more rapid.
The New York State Bar Association has just featured an analysis of the issues surrounding the Gamestop saga titled "What Is the SEC Going To Do About GameStop?" authored by Joshua Bautz, Esq. from the SEC law firm of Sallah Astarita & Cox, LLC.
Josh discusses the potential federal securities law violations by Wallstreetbets, potential market manipulation liability, potential disclosure violations, the potential violations by Robinhood, and the impact of the entire saga on the securities markets.
The article, What is the SEC Going to Do About Gamestop is at the Association's website.
By now, all of our readers are aware of the dramatic rise in Gamestop’s stock, after a short squeeze generated by the retail investors from Reddit. The question I am hearing most now, is, will the SEC do something about it.
Interesting question – but I have to answer with a question – Do something about what? About a group of investors sharing information about a massive short in a security, and discussing buying the stock because the shorts will ultimately have to buy back the stock? Nothing illegal there.
While the political pressure for an investigation will be significant, the real question is did the individuals buying Gamestop do anything illegal?
The answer is in the details. The real question is were there false statements made by the company or a group of individuals which were intended to create an artificial price for the stock, and if so, was that a concerted effort.
There will certainly be an SEC investigation, if it isn’t already in the works. Internet posters are not immune from charges of manipulation. Way back in the year 2000 the SEC investigated and instituted proceedings against an Internet message poster who it accused of engaging in a scheme on the Internet in which he purchased large blocks of thinly traded microcap stocks and, within hours of making such purchases, sent numerous false and/or misleading messages, or “spam,” over the Internet touting the stocks he had just purchased. Lebed then sold all of these shares, usually within 24 hours, profiting from the increased price his messages had caused. https://www.seclaw.com/15messageposter92000/
So far, there is no evidence of such a scheme, and it appears that the discussions regarding Gamestop were held in public, with message posters discussing the short position, and suggesting, correctly, that the shorts will have to cover their position as some point in time.
However, if the SEC finds false or misleading information in those discussions, or in private discussions between those message posters, all bets are off.
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