Hagens Berman Blog

Whistleblower News: Noah Holdings, 1MDB, Reckitt Benckiser

by HB Whistleblower Legal Team


Contact Us

A $117 Billion Money Manager's Fraud Claim Adds to China Angst

For nearly 15 years, Noah Holdings Ltd. has thrived by channeling money from rich Chinese investors into the country’s rapidly expanding financial system.

Now the asset manager faces mounting questions about whether it overlooked risks when steering clients into high-yield investment products that some analysts have likened to ticking time bombs.

Noah, which has the equivalent of $117 billion under advisory and management, said in a statement this week that 3.4 billion yuan ($495 million) of credit products overseen by one of its units were affected by an alleged fraud at Camsing International Holding Ltd., a conglomerate whose chairman was recently detained by Chinese police.

While it’s unclear if clients will suffer losses, Noah’s shares have tumbled more than 25% this week as critics accused the firm of failing to conduct proper due diligence. read more »

U.S. probes Deutsche Bank's dealings with Malaysia's 1MDB

The U.S. Justice Department is investigating whether Deutsche Bank AG violated foreign corruption or anti-money-laundering laws in its work for state fund 1Malaysia Development Berhad (1MDB).

The news comes after the bank announced plans to scrap its global equities unit, cut some fixed-income operations and slash 18,000 jobs globally in a 7.4-billion-euro ($8.34 billion) restructuring program.

Deutsche Bank’s work for 1MDB included helping to raise $1.2 billion in 2014 as concerns about the fund’s management and financials had begun to circulate

Prosecutors are mainly looking into the role of Tan Boon-Kee, a colleague of a former Goldman Sachs Group Inc executive, Tim Leissner, who worked with him on 1MDB-related business. read more »

Reckitt Benckiser to pay $1.4bn fine over opioid treatment sales

Nurofen maker reaches deal with US over alleged fraudulent marketing of Suboxone

Reckitt Benckiser has agreed to pay a $1.4bn (£1.1bn) fine to settle a US investigation into sales of a treatment for addiction to opioids by its former prescription drugs business Indivior.

The maker of Nurofen and Durex said it had reached a deal with the US Department of Justice and Federal Trade Commission to resolve the long-running inquiry into sales and marketing of Suboxone Film, an opioid-based drug. read more »

Subsidiary of opioid maker Insys sentenced over kickback scheme

A federal judge on Wednesday sentenced a unit of Insys Therapeutics Inc to pay $30 million after it pleaded guilty to fraud charges related to a scheme to bribe doctors to prescribe an addictive opioid medication.

The sum U.S. District Judge Rya Zobel in Boston ordered Insys Pharma Inc to pay was agreed to as part of a $225 million settlement the Arizona-based drugmaker struck with the U.S. Justice Department shortly before filing for bankruptcy in June. read more »

Attorney General Barr recuses himself from Boeing 737 MAX probe

U.S. Attorney General William Barr has recused himself from the Justice Department’s investigation into Boeing Co (BA.N) after two 737 MAX airplane crashes killed 346 people, a spokeswoman for Barr said Thursday.

Bloomberg News reported on Thursday that Barr has recused himself because his former law firm is representing Boeing. Reuters and other outlets reported in March that federal prosecutors aided by the FBI were scrutinizing the development of the 737 MAX jetliners. read more »