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Compliance November 13, 2007
First American Investigated for Company Stock Violations
The law firm of Milberg Weiss LLP is investigating possible Employee Retirement Income Security Act (ERISA) violations by fiduciaries to The First American Corporation 401(k) Savings Plan.
Reported by Rebecca Moore
Specifically, a Milberg Weiss announcement said the firm is investigating whether certain fiduciaries of the plan may have violated ERISA by allowing participants to invest in First American common stock when it was not prudent to do so, and by failing to disclose First American’s problems.
The investigation relates to certain facts alleged in the lawsuit filed on November 1, 2007 by the Attorney General of the State of New York against First American Corporation and its subsidiary, eAppraiseIT.
The suit filed by the Attorney General alleges that First American Corporation violated federal and state laws by conspiring with Washington Mutual to inflate real estate appraisals, according to the Milberg announcement. Evidence collected by the Attorney General, including internal emails, are alleged to show that eAppraiseIT executives knew that their scheme was illegal.
More information can be found at http://www.milbergweiss.com.