Securities

  • August 30, 2016

    SEC Hands Ex-Monsanto Exec $22M For Accounting Fraud Tip

    The U.S. Securities and Exchange Commission granted a $22.4 million award to a former Monsanto Co. financial executive for reporting alleged accounting fraud around the agribusiness giant's Roundup weed killer, a lawyer for the whistleblower said on Tuesday.

  • August 30, 2016

    SEC Says Depositions Of Stifel Execs Are Allowed At Trial

    The U.S. Securities and Exchange Commission on Tuesday slammed a Stifel Financial Corp. unit’s bid to keep the agency from playing the depositions of witnesses appearing live during an upcoming trial over the unit’s sale of $200 million in risky collateralized debt obligations, telling a Wisconsin judge they’re allowed.

  • August 30, 2016

    Cypriot Real Estate Co. Awarded $900K In Kiev Mall Row

    A Cypriot company that runs several shopping centers in Ukraine said Tuesday the majority owners of a Kiev mall that it has long sought to buy have been ordered by an arbitral tribunal to pay $900,000 in costs as part of the ongoing dispute.

  • August 30, 2016

    Consumer Group Poised To Get Leftover Wachovia Deal Funds

    A class of Wells Fargo shareholders who reached a $75 million settlement with the bank in 2011 over a subsidiary's alleged securities law violations asked a New York federal court Monday for clearance to donate unclaimed funds to the National Consumer Law Center.

  • August 30, 2016

    Wells Fargo Skirts Fees After Seminole Tribe Removal Row

    A Florida magistrate on Tuesday declined to award attorneys’ fees to the Seminole Tribe of Florida after it successfully remanded its suit against Wells Fargo and its employees for alleged mismanagement of a $1.4 billion trust fund back to state court, saying the bank wasn't unreasonable to try to get the case heard in federal court.

  • August 30, 2016

    JPMorgan Wants 'Stale' Foreign Exchange Fees Claims Nixed

    JP Morgan Chase Bank N.A. told a New York federal judge during oral arguments Tuesday that “antique and stale claims” dating back 14 years should merit dismissal of a putative class action that alleges the bank was in breach of contract by charging extra foreign exchange transaction fees.

  • August 30, 2016

    SEC Fights Halcon On Liability Releases In Ch. 11 Plan

    The U.S. Securities and Exchange Commission is challenging liability releases Halcon Resources Corp. intends to include for various lenders and noteholders in its plan for restructuring more than $3 billion in debt, saying Monday in a Delaware court filing that the oil driller hasn't properly sought permission from its creditors and shareholders for the relief it seeks.

  • August 30, 2016

    Biz Defendants In EB-5 Suit Urge Denial Of Contempt Motion

    Three corporate defendants in a case brought by the U.S. Securities and Exchange Commission over an alleged $27 million scheme involving the EB-5 investor program urged a California federal court on Monday not to hold them in contempt, saying they have provided as much financial information as they could.

  • August 30, 2016

    CFTC Floats Slew Of Rule Changes For Whistleblower Program

    The U.S. Commodities Futures Trading Commission on Tuesday floated numerous proposed rule changes for its 5-year-old whistleblower program including related to its process for reviewing tipsters' claims, its authority to administer the program and its authority to implement anti-retaliation measures.

  • August 30, 2016

    Law Profs Say 2nd Circ. Should Uphold Abacus Class Cert.

    A group of prominent securities law professors on Friday urged the Second Circuit to uphold a lower court ruling granting class certification in a lawsuit against Goldman Sachs Group Inc. over the infamous Abacus transaction, saying that the lower court appropriately applied precedent when it made its decision.

  • August 30, 2016

    SEC Scoffs As Investment Adviser Tries To Nix $3M Fees Suit

    The U.S. Securities and Exchange Commission urged a Florida federal judge Tuesday to preserve its case claiming a Florida investment adviser used undisclosed fees to steal $3 million from 40 investors, arguing the suit sufficiently details the alleged scheme.

  • August 30, 2016

    Ex-AXA Broker Launches Broad Appeal Over $1.6M Trial Loss

    Broker Steven S. Novick filed a wide-ranging appeal Tuesday in his failed attempt to take up to $20 million in contractual damages from two AXA units at trial in a case that has left the Connecticut money man on the hook for $1.6 million �— money he borrowed from the financial giant and did not repay — as well as potentially $263,000 in legal fees.

  • August 30, 2016

    Report On Post-Volcker Rules Coming Soon, FDIC Chief Says

    The banking industry should prepare itself to see what federal banking regulators intend to do after completing their Dodd-Frank Act-mandated rules to put more controls on risky activities by financial institutions, a top official said Tuesday.

  • August 29, 2016

    SEC Tells Jury Miami Duped Investors With $38M 'Shell Game'

    The U.S. Securities and Exchange Commission told a federal jury Monday that the city of Miami and its former budget director played a $38 million “shell game” with bond investors and lied to the public with fund transfers the city countered were “perfectly legal.”

  • August 29, 2016

    Hungry SEC Enforcers Find Fertile Ground In Muni Bonds

    The U.S. Securities and Exchange Commission's charges last week against 71 municipalities that self-disclosed violations in their bond offerings may have been low-hanging fruit that will help the agency boost enforcement numbers after a slow year, but experts said the actions are likely the first of many in what is now a firmly regulated market.

  • August 29, 2016

    Metals Traders Cheated Investors, Judge Rules In CFTC Suit

    The U.S. Commodity Futures Trading Commission won the remaining claims in its fraud suit against a pair of companies and their CEO whom it accused of fleecing investors by claiming to deal in precious metals when in fact they dealt in derivatives contracts, landing a trading injunction and $2.1 million in restitution.

  • August 29, 2016

    New Class Action Filed Against Melted-Down Third Ave. Fund

    Investor casualties in the meltdown of a Third Avenue Trust junk bond fund opened another class attack in Delaware’s Chancery Court on Monday, seeking damages for themselves and on behalf of a massively failed fund that inspired a regulator crackdown late last year.

  • August 29, 2016

    SEC Bans Auditor For 3 Years Over OCZ Accounting Failure

    The U.S. Securities and Exchange Commission banned a former partner at accounting firm Crowe Horwath LLP from auditing public companies on Monday for his failure to catch an alleged accounting fraud that sent OCZ Technology Group Inc. into bankruptcy.

  • August 29, 2016

    Robbins Geller Seeks $388M In Fees After $1.6B HSBC Deal

    Robbins Geller Rudman & Dowd LLP is seeking $388 million in fees following a landmark $1.6 billion proposed settlement in a securities fraud class action in Illinois federal court with HSBC Holdings PLC, according to court filings Monday.

  • August 29, 2016

    Horsehead Equity Holders Object To Ch. 11 Plan, Valuation

    Horsehead Holding Corp.’s equity holders objected Friday to confirmation of the company’s Chapter 11, arguing that fiduciary breaches and failed company valuation and sale efforts made the metal recycling and processing company’s bankruptcy plan unapprovable.

Expert Analysis

  • Is SEC Cooperation Credit Worthwhile?

    Junaid A. Zubairi

    In many cases, self-reporting to the U.S. Securities and Exchange Commission will yield substantial benefits. However, once a company decides to self-report and cooperate, it should be prepared to present evidence of a thorough internal investigation, remedial efforts and improvements to internal processes implemented as a result of misconduct, say Junaid Zubairi and Brooke Conner of Vedder Price PC.

  • REBUTTAL: Establishing Standards And Norms In Mediation

    William A. Ruskin

    A recent Law360 guest article asks whether by signing a mediation confidentiality agreement a lawyer surrenders the power to protect his client against inappropriate mediation conduct. The short response to this concern is that parties to a mediation should refuse to execute such an agreement that removes all future recourse against the mediator, no matter how egregious the mediator’s actions, says William Ruskin of Gordon Rees Scu... (continued)

  • Board Interlocks In Antitrust Enforcement Hot Seat

    Andrea Agathoklis Murino

    Recent activity by the U.S. Department of Justice and the Federal Trade Commission make clear that enforcement of Section 8 of the Clayton Act — the prohibition against interlocks between competitors — is alive and well. Board members and officers must be on alert, say attorneys with Goodwin Procter LLP.

  • How Accepting Responsibility Can Help At Sentencing

    Daniel Wenner

    The pre-sentencing conduct and sentence of Owen Li, former manager of Canarsie Capital, demonstrate the value of white collar fraudsters accepting responsibility instead of pretending they’re not caught, says Daniel Wenner of Day Pitney LLP.

  • Defining Attorney-Client Relationships In The Electronic Age

    Elizabeth Fitch

    As technology has advanced, the ways in which attorneys communicate with clients, potential clients, former clients and the public has created new and ill-defined issues relating to whether an attorney-client relationship exists. Attorneys Elizabeth Fitch and Theodore Schaer discuss the often nebulous yet hazardous concepts that could lead to malpractice issues.

  • The Evolving M&A Litigation Landscape Post-Trulia

    Daniel E. Wolf

    While the impact of the January 2016 Delaware decision in Trulia is profound, rumors that it represented the demise of M&A litigation were greatly exaggerated. Deal litigation continues, albeit in different forums, with different claims, and subject to different risk mitigation tactics, say Daniel Wolf and David Feirstein of Kirkland & Ellis LLP.

  • Questioning 2nd Circ. Analysis In Aluminum Antitrust Case

    James Robertson Martin

    The Second Circuit recently held in Aluminum Warehousing that consumers that are used as tools to manipulate a defendant’s market can pursue damage claims suffered from manipulation in that market. However, the court went on to hold, consumers that suffered the consequences of a defendant’s unlawful conduct in another market cannot. This seems a bridge too far, says James Robertson Martin of Zelle LLP.

  • 4 Reasons Law Firm Business Development Initiatives Fail

    Adam Donovan

    By understanding four common reasons why law firm business development initiatives fail, we can more accurately define success, avoid pitfalls, and improve return on investment, says Adam Donovan, senior manager of patent business strategy at Fish & Richardson PC.

  • 5 Key Takeaways From Key Energy’s FCPA Settlement

    Michael Volkov

    Key Energy had adopted a code of conduct, a Foreign Corrupt Practices Act and anti-corruption policy, and a procurement policy, but made no effort to ensure that these policies were enforced in Mexico. Companies continue to fall short on the compliance front by relying on local country managers, says Michael Volkov, a former federal prosecutor.

  • Pay-For-Delay & Stock Prices: Smoking Gun Or Damp Squib?

    Paul Greenberg

    In their July 29 response to our Law360 article critiquing the stock-price approach to assessing reverse-payment settlements, advocates of the “smoking gun” viewpoint described our position as "incorrect in theory, empirically and legally.” We disagree with this sweeping assertion, say members of Analysis Group Inc.