A German banker sentenced to eight-and-a-half years in prison for accepting a $44 million bribe in connection with private equity firm CVC Capital Partners Ltd.’s acquisition of a controlling interest in Formula One racing reportedly dropped his appeal of his sentence on Friday.
A Texas federal judge on Friday sentenced the former owner of private equity firm Gemstar Capital Group Inc. to 10 years in jail and nearly $17 million in restitution for securities fraud stemming from an alleged $40 million Ponzi scheme he operated with a former Dallas Cowboys player.
The Second Circuit on Thursday upheld a ruling that tossed a misrepresentation suit against investment bank Maxim Group LLC and private equity firm Aramid Entertainment Fund Ltd. over a botched deal for a promissory note, finding there was no binding agreement in place.
A New Jersey federal judge on Tuesday trimmed claims against a CEO and a private equity firm from a shareholders securities class action alleging top executives of bankrupt grocery store chain The Great Atlantic & Pacific Tea Co. Inc. failed to disclose A&P's financial woes.
Media-financing firm Aramid Entertainment Fund Ltd. failed Tuesday to persuade a New York state appeals court to reverse a lower court’s decision tossing its $190 million suit claiming Hollywood financier David Bergstein and others lied about Aramid to disrupt its planned $130 million asset sale to a private equity firm.
A Pennsylvania judge on Monday dismissed seven putative class actions alleging H.J. Heinz Co.'s board failed to solicit other offers before accepting a $28 billion buyout from 3G Capital Partners Ltd. and Berkshire Hathaway Inc., clearing the way for a Tuesday vote to finalize the deal.
A San Francisco private equity investor was ordered Friday to arbitrate claims accusing his partner at Blackford Capital Associates LLC of poaching the firms’ clients for his own similarly named side business.
Willkie Farr & Gallagher LLP on Thursday won its bid to toss a malpractice suit claiming that it exposed the former private equity owner of Extended Stay Inc. to a $100 million liability stemming from the hotel chain's bankruptcy.
A federal judge in Washington state again tossed years-old claims Wednesday that Credit Suisse Securities (USA) LLC was part of a scheme to jack up stock prices during the dot com era, despite the complaint being amended to include law firm Wilson Sonsini Goodrich & Rosati as an alleged collaborator.
Moelis & Co. LLC has agreed to pay $5 million to former Rural/Metro Corp. shareholders to settle class claims that the financial adviser helped push through a lowball private equity bid for the medical transport company in 2011, according to a letter filed Thursday in Delaware Chancery Court.
Private equity firm Kohlberg Kravis Roberts & Co. co-founder Henry Kravis and art collector Donald Bryant Jr. agreed in New York Supreme Court on Tuesday to resolve Kravis' claims that Bryant reneged on a contract to share three Jasper Johns paintings before donating them to New York's Museum of Modern Art.
A private equity fund managed by Oppenheimer & Co. has agreed to retain a third-party valuation consultation to review its investments as part of an agreement in Massachusetts federal court to settle class action claims of performance fraud by a local pension fund, according to documents filed Friday.
A New York bankruptcy judge on Wednesday threw out a hedge fund's suit claiming UBS Securities LLC, Lyondell Chemical Co.'s agent for exit financing deals, interfered with a contract related to a $1 billion restructuring loan.
A New York state judge on Tuesday reduced the number of questions a Blackstone Group LP affiliate's executive must answer about what he told former Los Angeles Dodgers owner Frank McCourt regarding the formerly bankrupt team's value, which McCourt's ex-wife says was lowballed in the couple's divorce.
A Florida federal judge on Monday refused to issue an injunction in a suit brought by Metals USA Holdings Corp. minority shareholder Savior Associates against Reliance Steel & Aluminum Co. and a private equity firm seeking to bar Reliance Steel from merging with Metals USA in a $1.2 billion acquisition.
Two shareholders who challenged H.J. Heinz Co. over an allegedly self-dealing $28 billion buyout proposal by a private equity firm agreed to dismiss their class actions Thursday, saying they had determined Heinz and its suitors hadn't violated securities laws or their fiduciary duties to investors.
Clear Channel Outdoor Holdings Inc.'s board announced Wednesday it had reached a settlement with minority shareholders over a derivative suit alleging the private equity owners of parent Clear Channel Communications Inc. forced the subsidiary to provide the media giant with a sweetheart $656 million loan.
The highest court in New York on Tuesday denied Mexican glassmaker Vitro SAB de CV’s bid to revive its breach of contract suit accusing Aurelius Capital Management LP and other bondholders of divulging confidential information shortly before its restructuring.
A Florida federal judge Friday dismissed an investor lawsuit alleging the hedge fund Paulson & Co. overlooked red flags when it acquired a stake once worth $880 million in Sino-Forest Corp., a U.S.-listed Chinese forestry company whose stock later tanked after an accounting scandal was exposed.
A New York federal judge on Friday pared a lawsuit accusing the private equity firm in control of Mac anti-virus company Intego's parent company of abusing its position to block the parent company from selling itself to AVG Technologies, tossing out more than half of the plaintiff's claims.
A number of practical actions may reduce a private equity firm's potential WARN Act liability with respect to employee layoffs conducted by a firm’s portfolio companies. These actions are intended to help insulate the ownership group by providing a stronger argument that the firm is indeed respecting separateness of entities when the portfolio company is making plant closure and layoff decisions, say Matthew Keiser and Rachel Baylis of Arnold & Porter LLP.
President Obama seems to be of the view that if law school were reduced to two years, students would incur two-thirds of the expense of attending law school, be burdened by two-thirds of the debt they currently have, and be generally economically better off than they are today after three years of law school. Most startling about the president’s proposal, however, is that he did not discuss the educational effect of his suggestion on the students or the effect on their clients, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.
A special task force of the American Bar Association recently proposed to the United States Sentencing Commission substantial amendments to the U.S. sentencing guidelines for economic crimes. While there is work to be done to make the proposals more concrete, this would represent the most significant philosophical shift in sentencing in white collar cases since the inception of the sentencing guidelines — even if they are adopted only in part, say Daniel Levy and Sachin Bansal of McKool Smith PC.
When it comes to preventing cyberattacks, the U.S. government can’t protect its own networks, let alone those of large law firms. And when it comes to deterring and punishing intruders, our government offers even less. We have to do more than play defense. We didn’t reduce street crime by requiring pedestrians to buy better body armor every year, says Stewart Baker, a partner with Steptoe & Johnson LLP and former assistant secretary for policy at the U.S. Department of Homeland Security.
What should an attorney do in the middle of a deposition if her client answers in a way that suggests a misunderstanding of the question or sudden memory loss? She will likely want to confer with her client at the next available opportunity, but her ability to do so without waiving privilege will depend, in part, on where the deposition is taking place, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.
The Committee on Foreign Investment in the U.S.'s broad authority came into focus recently when Polaris Financial Technology announced that the agency had ordered it to divest its ownership stake in a U.S. company. In light of Polaris' misadventure, parties involved in cross-border transactions should be aware of the three important points in CFIUS' recent activism, say Richard Matheny and Gus Coldebella of Goodwin Procter LLP.
Although the government shutdown and the debt ceiling crisis are occasionally conflated, they have distinct effects on government operations and on parties interacting and transacting with the government, says Boris Bershteyn, of counsel with Skadden Arps Slate Meagher & Flom LLP and former general counsel of the White House Office of Management and Budget.
In light of the U.S. Securities and Exchange Commission’s recent enforcement efforts, private fund advisers should be mindful of Exchange Act implications when entering into marketing arrangements — whether involving in-house or external marketers — in connection with the sale of private fund interests, say Irwin Latner and Jessica Wessel of Herrick Feinstein LLP.
The First Circuit was careful to note that its analysis of the Sun Capital case was very fact-specific and to express its dismay that the PBGC had not given more guidance on the trade or business "investment plus" theory to the many parties affected. Nonetheless, the decision likely sends a chill up the spine of many private equity investors, says John Ventola of Choate Hall & Stewart LLP.
In the wake of BlackBerry Ltd.’s announcement to take the company private through a $4.7 billion deal with Fairfax Financial Holdings Ltd., attention will certainly be drawn to the company’s patent portfolio and valuation. In spite of the negative press BlackBerry has experienced over the last few years, its substantial patent portfolio should not be overlooked, says Miranda Lim of Chipworks Inc.