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Werner Kranenburg

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  • Update: Bally Technologies Buyout [View article]
    For the termination fees, see one of $BYI's 4 Aug Form 8-K SEC filings:

    "The Merger Agreement contains certain termination rights for Scientific Games and Bally including, with respect to Bally. In connection with the termination of the Merger Agreement under specified circumstances, (i) Bally may be required to pay to Scientific Games a termination fee of $80,000,000 or (ii) Scientific Games may be required to pay Bally a termination fee of $105,000,000."

    Werner R. Kranenburg, attorney-at-law
    Aug 12 01:50 PM | Likes Like |Link to Comment
  • Ocwen Financial: A Little Known Company With Great Upside [View article]
    I'm rather late to this thread but considering events since, rcray's comment was entirely relevant.

    About three months after the comment was made, OCN settled with the Consumer Financial Protection Bureau, District of Columbia and state authorities to "provide $2 billion in principal reduction to underwater borrowers. The consent order addresses Ocwen's systemic misconduct at every stage of the mortgage servicing process." (sources listed below) In addition OCN also had to refund $125 million to borrowers who had already been foreclosed on.

    Echoing rcray's comment, OCN, according to the complaint, "violated the law in a number of ways, including: [...] Charging borrowers unauthorized fees for default-related services; Imposing force-placed insurance on consumers when Ocwen knew or should have known that they already had adequate home-insurance coverage..." (The settlement claim form has been available for about a month now.)

    To which investor is allegedly fraudulent conduct worth $2 billion not relevant?

    In fact, the issue of proper conduct servicing homeowner loans is still very much current today.

    In February this year the New York State Department of Financial Services "indefinitely blocked Ocwen Financial Corp. (NYSE:OCN)'s purchase of mortgage-servicing rights on about $39 billion in loans from Wells Fargo & Co. (NYSE:WFC) [...] The regulator halted the transaction amid concern that the firm may struggle to properly service loans..."

    Benjamin M. Lawsky, Superintendent of Financial Services, said that "it is appropriate for regulators, where warranted, to halt the explosive growth in the nonbank mortgage servicing industry before more homeowners get hurt... [...] Regulators have to ask whether the purported efficiencies at nonbank mortgage servicers are too good to be true," citing firms that can't keep track of cases, unexplained fees and avoidable foreclosures. "It’s something you should expect to hear more about from us in the weeks and months ahead."

    Indeed, as recently as last week his department's investigation into OCN escalated.

    * OCN Dec 19, 2013 8-K filing
    * CFPB Dec 19, 2013 press release
    * OCN National Servicing Settlement online claim form
    * DFS Aug 4, 2014 letter to OCN
    Aug 11 01:00 PM | Likes Like |Link to Comment
  • A Relatively 'Safeway' To Park Some Money [View article]
    To add a footnote to this article SS&A, further to your mention of shareholder approval as a risk, several shareholder lawsuits have been filed since the announcement of this proposed transaction. In these actions, the allegation is made that the SWY Board of Directors filed a materially false and misleading proxy statement with the SEC, in violation of their duties as directors, in an effort to secure shareholder approval for the deal.

    Werner R. Kranenburg, attorney-at-law
    May 29 02:12 PM | Likes Like |Link to Comment
  • Abercrombie & Fitch Investor Engaged Capital Demands The Change Of CEO [View article]
    >> [T]he investment firm holds just 0.5% stake in Abercrombie and will require greater investor support to have an influence over the company's board.

    Today's news is evidence to the contrary.

    The Financial Times reports that ANF and Engaged Capital agreed to settle their “failed leadership” dispute, with ANF nominating four new, independent board directors to its twelve-member board. It quotes the founder of Engaged: “Since January, the company has added seven new directors, appointed a new chairman of the board and terminated its shareholder rights plan,” said Glenn Welling. “We believe these changes position the reconstituted board to set a new direction for the company.”

    Werner R. Kranenburg, attorney-at-law
    May 1 06:09 AM | Likes Like |Link to Comment
  • Unilife Corp.: Current Law Enforcement Investigation And Fraud Allegations From Insider [View article]
    In November last year, a securities fraud class action lawsuit was filed in a Pennsylvania federal court against Unilife Corp and certain of its officers, seeking to recover damages as a result of alleged violations of federal securities laws.

    The complaint filed in that case alleged that throughout the relevant period of time, the company and its officers made false and/or misleading statements, as well as failed to disclose material adverse facts about the company. Former Unilife employee Talbot Smith and his case against Unilife feature in the securities fraud complaint.

    In January, Unilife announced the securities fraud case was voluntarily dismissed by the shareholder plaintiff. I look forward to any result in the Smith case with interest.

    Werner R. Kranenburg, attorney-at-law

    PS: it may be this SA article (as well) which is referred to in this news segment, the day following publication of this piece; the segment is entitled "Unilife slams malicious blogs & short sellers":
    Apr 30 04:07 PM | Likes Like |Link to Comment
  • As legal woes mount, BofA raises estimate of possible litigation-related losses to $6.1B [View news story]
    BAC has been in the news several times today concerning fines and litigation, having agreed to a $9.5bn settlement with the US Federal Housing Finance Agency over sales of mortgage backed securities and to a $25 million settlement, alongside the bank's former CEO Ken Lewis, relating to allegations it misled investors about Merrill Lynch & Co.'s financial condition in 2008.

    BAC is also one of several mentioned in an FT article today, that "Wall Street banks and their foreign rivals have paid out $100bn in US legal settlements since the financial crisis, according to Financial Times research..."; and, see my remarks on litigation reserves
    Mar 26 07:26 PM | Likes Like |Link to Comment
  • Riding The Activists' Coattails [View article]
    It was reported this week that "Sam Zell, the billionaire property investor, has joined the effort to unseat the board of the CommonWealth real estate investment trust, in a battle that has become a touchstone for corporate governance concerns in the Reit sector." Financial Times; and, Bloomberg
    Feb 16 07:39 PM | Likes Like |Link to Comment
  • Did BP, Shell, Statoil, And Others Fix Oil Prices And Behave Anti-Competitively? [View article]
    Old school, I have nothing on Al Sharpton. Did you see his cameos in Boston Legal? "That's what you call a rabbit, son." (Season 1, episodes 1 and 8) Classic. The picture you comment on is just me in a picture.

    In this article I point out that the facts that some oil majors' practices are under investigation and are allegedly unlawful. I am of the opinion that certain market indications were sufficient for the civil actions in which these practices feature to have been brought. Oil Companies "Bad"... as you put it, I agree, is not the argument I put forth here.
    Oct 30 04:31 PM | Likes Like |Link to Comment
  • Did BP, Shell, Statoil, And Others Fix Oil Prices And Behave Anti-Competitively? [View article]
    Debutant, thank you for your comment. You're both right and wrong.

    You are right, Kranenburg does not currently represent a party involved in this multi-district litigation and the firm is looking for a client, a crude oil or oil derivatives trader, to represent in this matter.

    You are wrong to suggest however that the article is a business advertisement.

    What you are missing is that this article is one view and opinion, based on and providing the facts, about the regulatory and legal scrutiny of the oil majors and several others for discussion. These governmental investigations and civil legal proceedings are, or should be, of importance both to the investors in securities issued by the subject companies and to the traders of physical oil and oil futures.

    A corporation's legal risk and a market's fairness are ignored for investment purposes at one's peril, more so where the potentially unlawful practices remain unchallenged.
    Oct 30 03:41 PM | Likes Like |Link to Comment