Litigation

Steven Cohen's SAC Capital has told its clients that cooperation with the U.S. is no longer "unconditional," according to Bloomberg. The firm said it will have more clarity on the situation in coming months.

News comes from an SAC letter to clients.

(Updated - May 17, 2013 12:05 PM EDT)

Shares of ITT Educational Services Inc. (NYSE: ESI) and Corinthian Colleges Inc. (NYSE: COCO) moved higher on Friday. Career Education Corp. (Nasdaq: CECO) and a number other for-profit education stocks were also higher. The rally is related to proposed changes to the interest rate on student loans. Yesterday House Republicans advanced a proposal that would link student loan interest rates to market conditions. Without change to the program, interest rates for new subsidized student loans would double to 6.8% on July 1st.

Schwab (NYSE: SCHW) shares are flat in early trading amid news that the long-time brokerage will elminate a requirement that customers must waive their right to participate in class-action lawsuits against the firm.

The provision, initiated in September 2011, requires that disputes between Schwab and clients be handled through arbitration. The revised language covers events from May 15, 2013, onward.

Schwab will continue paying arbitration fees, enabling even the smallest of investors to file a claim.

Hess Corporation (NYSE: HES) has reached an agreement with Elliott Management to resolve its proxy contest. Under the terms of the agreement, Elliott will withdraw its slate of five director nominees and support the election of Hess’ five new directors: John Krenicki Jr., Fredric Reynolds, William Schrader, Kevin Meyers and Mark Williams. Three of Elliott’s director nominees: Rodney Chase, Harvey Golub, and David McManus are being added to the 2015 director class. The reconstituted Board would continue to consist of 14 persons as a result of various retirements. The Board would appoint two of the Elliott nominees to a five-member Nominating and Corporate Governance Committee, and one Elliott nominee would be appointed to the Compensation Committee.

John Hess, Chairman and CEO, said, “We are pleased to reach an agreement that we believe is in the best interests of Hess shareholders, and we welcome each of our new directors. We remain focused on execution and believe that the new Board will provide effective oversight to ensure that we continue to create meaningful long-term value for all Hess shareholders." Mr. Hess continued, “On behalf of the entire Board and Company, I would like to thank each of our departing board members – Nicholas Brady, Gregory Hill, Thomas Kean, Samuel Nunn, Frank Olson, and F. Borden Walker – for serving with distinction. They each deserve significant appreciation for their terrific service to the Company.”

Hess has adopted measures to refresh the majority of its board, separate the roles of Chairman & CEO, and recommend in favor of a resolution to destagger the board with the full support of the Hess family shares.

John Pike, Senior Portfolio Manager at Elliott Management said, “We are pleased to welcome a highly-qualified and refreshed board at Hess. In just a few months, we have seen encouraging changes that will benefit all shareholders including the replacement of 9 out of 14 board members and significant value creation for stockholders. As a substantial shareholder, we look forward to continued progress that will unlock further value.”

Wi-LAN Inc. (Nasdaq: WILN) announced that Telrad Networks Inc. ("Telrad Networks" or "Telrad") has taken a license to WiLAN's wireless patent portfolio including LTE-related technologies. The license grants royalty bearing rights covering Telrad Networks' worldwide sales of all WiMAX and LTE telecommunications equipment. All other terms of the license agreement are confidential.

Telrad is an established telecom equipment vendor and services company that has been providing communications products and services used by millions of end-users worldwide. The company combines a high level of technological experience gathered in decades of dedication to customer service with expertise in developing products in the areas of IP NGN soft switches, media gateways, Transport solutions in the optical and metro networks, enterprise, wireless and switching. In tangent to its product divisions, Telrad provides full solutions and system integration for TDM and NGN solutions.