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Legal

AAMC

Altisource Asset Management (AAMC) has reached a settlement resulting in the dismissal of litigation with prejudice and mutual release of all claims without any admission of liability or wrongdoing. This settlement has increased the company's stockholders' equity to over $6,000,000, leading the NYSE to rescind its notice of intent to delist AAMC's common stock. Chairman and CEO William Erbey expressed positivity about the resolution and the company's focus on enhancing shareholder value.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 4:57 pm

AAMC

Altisource Asset Management Corporation (AAMC) has settled litigation with Luxor Capital Group by repurchasing all 144,212 Preferred Shares held by Luxor. The settlement includes a $1M immediate cash payment and three promissory notes totaling $11M due over 3, 5, and 8 years, with interest options of 7.5% cash or 10% PIK. AAMC also agrees to pay Luxor 50% of any proceeds from a separate litigation, capped at $50M. The settlement prevents AAMC's common stock from being delisted by the NYSE and is seen as a positive step by AAMC's CEO.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 4:56 pm

PENN

HG Vora Capital Management, LLC sent a letter to the board of PENN Entertainment, Inc. highlighting a violation of the Pennsylvania Business Corporation Law due to unequal allocation of board members across different classes. They pointed out that the current board structure is legally improper and disenfranchises shareholders, especially concerning the upcoming 2024 annual meeting. HG Vora Capital Management expects PENN to promptly remedy the violation and reserves the right to take action to ensure compliance.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 4:11 pm

MSFT

OpenAI CEO, at a Davos event, hinted at numerous upcoming partnerships in response to concerns about media copyright, as reported by Bloomberg.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 4:10 pm

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TCNNF

A report by senior analyst Pablo Zuanic discusses the potential benefits of rescheduling cannabis to Schedule III, including improved cash flow and creditworthiness for U.S. cannabis companies, and easier banking access. The report also considers the impact of federal legalization of medical cannabis and the legal complexities involved. It highlights the uncertainty in the cannabis sector due to the upcoming election and the possibility of a Trump reelection, which could cap the upside for cannabis stocks. The biggest beneficiaries of the rescheduling would be StateHouse, AYR, Jushi, and The Cannabist, with Curaleaf, Trulieve, and Green Thumb paying the most taxes relative to their sales.

Portfolio Pulse from Nicolás Jose Rodriguez

January 16, 2024 | 3:19 pm

XLF

Morgan Stanley (NYSE:MS) reported Q4 earnings with a net profit of $1.5 billion, down from $2.2 billion Y/Y, but surpassed revenue estimates with $12.9 billion against a consensus of $12.75 billion. The Wealth Management division's revenue was flat Y/Y, while Investment Banking revenue grew by 5.3%. Fixed Income revenues slightly increased. The decline in net income was attributed to higher costs in Wealth Management and a $249 million regulatory settlement. The company declared an 85 cent quarterly dividend, and shares were down 3% at last check. James Gorman ended his tenure as CEO, with Ted Pick succeeding him. In comparison, the SPDR Select Sector Fund – Financial (NYSE:XLF) gained 4.8% last year, while MS shares lost 7.6%.

Portfolio Pulse from Anusuya Lahiri

January 16, 2024 | 2:58 pm

AAPL

SPY

The U.S. Supreme Court has declined to hear Apple's appeal in the legal challenge brought by Epic Games against App Store rules. This decision leaves in place a lower court's ruling, which could have implications for Apple's App Store operations and revenue.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 2:37 pm

AAPL

SPY

The U.S. Supreme Court has declined to hear an appeal by Epic Games in its antitrust case against Apple, effectively upholding lower court decisions. This development is a setback for Epic Games, which had challenged Apple's App Store policies, alleging they constitute monopolistic practices. The refusal to hear the case means that Apple's current App Store model, including its payment systems and commission structure, remains intact without further legal challenge from this case.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 2:36 pm

FTFT

The SEC has filed a civil lawsuit against Future Fintech Group CEO, Mr. Shanchun Huang, for alleged securities law violations including manipulative trading and failure to disclose ownership and transactions in company stock. Mr. Huang, represented by attorney Jacob Frenkel, has denied the allegations. The company has imposed restrictions on the CEO's stock trading and plans to provide training on appropriate trading practices. The Board claims the litigation has not impacted company operations and does not expect future impact, reaffirming its commitment to shareholder communication.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 2:05 pm

PROC

Procaps Group notified shareholders of incorrect online voting instructions for its General Meeting on January 22, 2024. A third party mistakenly stated that the Board recommended voting 'for' the proposals, which was not the case. The company is investigating and correcting the error.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 1:52 pm