Baxter CEO Parkinson Suggests Criminal Intent with regard to Heparin Contamination

(NewsVisual, powered by IntellectSpace) -- In what sounds like grounds for a criminal investigation, the head of Baxter International Inc (NYSE: BAX) said in public for the first time that the tainting of the company’s heparin drug was probably deliberate, according to media reports.

"Robert Parkinson, the Chairman and Chief Executive of Baxter International Inc, told a Congressional committee Tuesday its blood thinner heparin appears to have been deliberately contaminated," MarketWatch reported in an online article on Tuesday.

"Baxter recently recalled the blood thinner after it found batches made at a Chinese plant were contaminated with a substance similar to the drug's active ingredient that has been linked to at least 81 deaths," the MarketWatch article added.

Investors will want to know whether Mr Parkinson can help to see the company through this enormous crisis and restore its reputation and financial viability.

AIG Brings a Lawsuit Against Its Former CEO/Chairman Greenberg and Six Others

(NewsVisual, powered by IntellectSpace) -- As a follow-up to a criminal trial that convicted several defendants in February, the insurance company American International Group (AIG) (NYSE: AIG) filed a lawsuit in civil court for damages against several of it former executives Senior Executives, including the former AIG CEO/Chairman Maurice R. Greenberg, The Wall Street Journal reported.

“The defendants are Greenberg, Howard Smith, Edward Matthews, Ernest Stempel, L. Michael Murphy, John Roberts and Houghton Freeman -- all officials of Starr International Co., which holds a stake in AIG that the company says was solely used to protect the insurer from hostile takeovers and provide incentive compensation for employees,” The Journal reported in an online article on Thursday.

NewsVisual created an IntellectSpace Knowledge Map that shows that Mr. Greenberg has been affiliated with several companies over the years.

Former AIG CEO/Chairman Remains at Helm of Another Company Even After Convictions

(NewsVisual, powered by IntellectSpace) -- Although named as an unindicted co-conspirator in a criminal trial involving Senior Executives from the insurance company American International Group (AIG) (NYSE: AIG) and the General Re Corporation, the fate of former AIG CEO/Chairman Maurice R. Greenberg remains unclear.

According to a Feb 26 New York Times article, five former officials from the two companies were convicted on Monday of fraud and conspiracy charges.

The Times article suggested Mr. Greenberg could potentially face criminal indictment, since it reported that Government prosecutors say the investigation will continue.

Mr. Greenberg was ousted from AIG in 2005 as a result of the scandal, the Times reported.

Sharper Image Succumbs to Filing Chapter 11; Can Board Lead a Turnaround?

(NewsVisual, powered by IntellectSpace )-- Three years of falling earnings have led Sharper Image Corp (NASDAQ: SHRP) to file for Chapter 11 protection. The specialty retailer is also expected to shut down approximately half of its 184 US stores.

With debts nearing $200 million at the end of January, the San Francisco-based seller of high-tech gadgets and products has proven to be the latest victim of the ongoing credit crisis. Sharper Image pointed to a number of reasons for its underperformance and bankruptcy filing, including heightened competition, shrinking gross margins, credit woes and fallout from legal proceedings surroundings its air purifiers.

Now that Sharper Image reached the point of petitioning bankruptcy, its management team and board faces the daunting task of rebuilding the business. The company is already moving quickly to shut down its failing stores, though serious strategy and plans of action need to be formed if Sharper Image is expected to not only survive, but thrive in its upcoming quarters.

NewsVisual created an IntellectSpace Knowledge Map that illustrates the key past and current corporate connections of Sharper Images’ Board of Directors. Industry experience and ties to friends in high places may be critical for the company as it attempts a successful turnaround.

UnitedHealth Faces Legal Suit From NY Attorney General

(NewsVisual, powered by IntellectSpace )-- UnitedHealth Group Inc (NYSE: UNH) may be soon be caught up in a legal battle as the New York attorney general announced that his office has plans to sue the managed healthcare company.

The suit will come as part of a larger investigation into the practices of the health insurance industry regarding payment rates for hospitals and doctors that are not part of their network. Complaints have long been made about the typical payment programs, where out-of-network doctors and hospitals are supposedly being unfairly reimbursed far below in-network members, due to unrealistic standards. While other health insurers like Aetna, Cigna and Empire Blue Cross Blue Shield are also being investigated, UnitedHealth has become the primary target due to the fact that it owns and licenses the tool that rest of the industry uses to set their payment standards.

Knowledge Maps Lend Insight as PowerWave Directors and Officials Accused by Shareholders of Deceptive Disclosures

  A complaint that was filed as a class-action lawsuit on January 16, 2007 in the United States District Court in the Central District of California, Southern Division alleges that Powerwave Technologies, Inc and certain of its Directors and Executive Officers issued false and misleading statements concerning the company’s financial status, and thereby are alleged to have violated the Exchange Act.

The defendants’ deceptions are alleged to have resulted in third-quarter 2006 earnings of only $155 million when the prior forecast was for $230-$250 million and resulted in a lost in value of almost 20% in the same trading day the earnings statement was disclosed.

In particular, the complaint alleges that Powerwave engaged in four specific forms of deceptive behavior: the defendants deceived shareholders concerning the intrinsic value of the company’s common stock; they artificially inflated the values of the shares that were purchased by mislead shareholders; falsely register for sale with the SEC millions of shares of stock that were already sold to the public or used acquire assets of unwitting companies; the defendants acted as company insiders when selling millions of dollars of their privately held shares while in possession of material adverse non-public information.

Former Senior Executives at Celestica Named as Defendants in Lawsuit

A class-action lawsuit filed against Celestica Inc alleges that the company’s officers made false and misleading statements concerning its financial performance and future prospects.  In particular, the Celestica officials are alleged to have concealed certain adverse facts relating to the company’s operations in Mexico, the downturn for demand of its IT products, and a declining demand for its communications products. 

Since the company officials omitted these facts from the company’s future earnings projections, the complaint alleges that the projections had a false basis and that the stock’s value plunged when the true facts concerning the company’s financial state became publicly known.

The complaint names two former Celestica Inc officials as defendants in the complaint.  They are Stephen W Delaney, who resigned as President and CEO in November 2006, and Tony Puppi, who retired from the position of Celestica Inc’s Chief Financial Officer in March of 2007.

Senior Executives and Directors at Sunrise Accused of Securities Violations

A class-action lawsuit filed against Sunrise Senior Living, Inc and a number of the company's Executive Officers and Directors alleges that the defendants engaged in violations of the Securities Exchange Act of 1934.  In particular, the complaint charges that the defendants made false and misleading statements about Sunrise’s financial circumstances in order to inflate the stock’s price.
 
The individual defendants are further alleged to have taken advantage of stock options and of the stock’s inflated value by selling shares in order to gain proceeds of over $34 million.  In addition, Sunrise officials also benefited from bonus payments that were based upon false statements concerning the company’s profits (see report from Stanford Law School Securities Class Action Clearinghouse).

Could Questions about Board Connections Between Quanta and FBR Be Raised During the Trial?

The class-action lawsuit against Quanta Capital Holdings, Ltd. alleges that the company colluded with its underwriters in the making of false or misleading statements in order to manipulate the price of Quanta’s shares that were being offered in December 2004 (see report from Stanford Law School Securities Class Action Clearinghouse).

 
We decided to create an IntellectSpace Knowledge Map™ in order to examine the personal connects that exists between Quanta Senior Executives and Board of Directors with those of one of the underwriters named in the complaint, Friedman, Billings & Ramsey, Ltd. Although the Knowledge Map itself should not be interpreted as substantiating any of the complaint’s allegations, it does nevertheless illustrate several nodal points of personal connections among the companies.

Deals May Follow Thanks to Success of Google and DoubleClick; Coors and SABMiller

With the merger of Coors and SABMiller and Google’s controversial acquisition of DoubleClick, analysts are saying that now may be the time to move forward with any other deals that would normally raise antitrust red flags. Wall Street Journal’s DealJournal created a list of potential corporate combinations to take advantage of this trend, and NewsVisual decided to it one step further to see how common connections could push for an actual agreement.

Sprint, Vonage Settle Patent Lawsuit

Shares of Vonage jumped 123% Tuesday morning on news the company had settled its patent lawsuit with Sprint (see article from Seeking Alpha). To determine if any notable corporate ties may have played a role in this settlement, we created an IntellectSpace Knowledge Map of the ties between Vonage and Sprint. After reviewing the Knowledge Map we find strong ties through Boingo Wireless, Liberty Global, and Northwestern University that may had some influence in the outcome of this settlement.