Compliance August 17, 2010

Raymond James Lawsuit Dismissed

A federal judge has thrown out a lawsuit accusing Raymond James of misleading investors and reserving too little for loan losses.  
Reported by

U.S. District Judge Robert Patterson said the class-action complaint did not provide sufficient evidence to suggest that Raymond James Financial Inc. intended to defraud investors by purposely underfunding and then misleading investors about the adequacy of its reserves. 

During the class period that ran from April 22, 2008 to April 14, 2009, Raymond James stated that an abnormally high level of bad loans would nearly wipe out profit in its just-completed quarter. Shares of the St. Petersburg, Florida-based company fell 13.5% the next day. 

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The judge ruled that most of the alleged misstatements made by Raymond James and its executives were too general to be considered purposely misleading while others were simply the results of mistakes in their projections.  

Patterson also claimed that the 112-page, 356-paragraph complaint was itself grounds for dismissal, under a federal rule that requires a pleading to contain “a short and plain statement” of the claim. 

The case is Woodward v. Raymond James Financial Inc et al, U.S. District Court, Southern District of New York, No. 09-05347.  

Deals & People August 17, 2010

ING Investment Management Adds Two to Institutional Team

ING Investment Management has announced two senior hires in its institutional business.

Reported by

Brian Baskir has joined the firm in the new position of Senior Vice President and Head of Global Consultant Relations, with responsibility for the U.S. and global institutional investment consultant relations efforts, and Michael Beckerman has been added as a Vice President on the Consultant Relations team reporting to Baskir.  

According to the announcement, Baskir, who reports to Erica Evans, Head of the US institutional business for ING Investment Management, joins the firm from Invesco, where he most recently served as Managing Director and Head of US Consultant Relations. Earlier in his career, Baskir worked for Old Mutual in an array of positions including Senior VP and Director of Consultant Relations. In addition to his experience in the asset management business, Baskir has an extensive background in actuarial practice and employee benefits, the announcement said.  

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Beckerman joins the firm from Columbia Asset Management/US Trust where he most recently served as Vice President in Consultant Relations, responsible for primary coverage of over 40 consulting firms, including relationships with both field consultants and research departments. Earlier in his career, he held institutional sales positions with John A. Levin & Co. and Goldman Sachs.

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