Securities

  • March 27, 2015

    Ex-DHB Execs Must Pay $54M Restitution For Massive Fraud

    Former executives of body armor company DHB Industries Inc. who were convicted on a host of fraud and other charges were ordered to pay $53.9 million in restitution, according to an order filed in New York federal court Friday.

  • March 27, 2015

    Barrack Rodos Seeks Sanctions Against Ex-Consultant

    Barrack Rodos & Bacine has responded furiously to a former consultant who sued the shareholder-focused law firm for breach of contract and $1.5 million he purportedly earned, asking a Philadelphia judge to strike the consultant's complaint and sanction him and his attorney for making an “extraordinary” attempt to win money from the firm.

  • March 27, 2015

    11th Circ. Nixes Venezuelan Bank’s Claim Against BofA

    The 11th Circuit on Thursday affirmed a ruling tossing a suit that accused Bank of America NA of failing to inform a Venezuelan bond company it needed certain licenses for transactions in the United States, ruling that Arbitrajes Financieros SA did not prove it had a fiduciary relationship with Bank of America.

  • March 27, 2015

    9th Circ. Clears 1 Convicted In Oil Investment Scheme

    The Ninth Circuit has overturned a conviction in an alleged scheme intended to defraud investors by telling them they were investing in oil and gas leases on an Indian reservation.

  • March 27, 2015

    Spectrum Pharmaceuticals Stuck With Shareholder Suit

    A Nevada federal judge on Thursday denied a motion to dismiss a consolidated amended proposed class action against Spectrum Pharmaceuticals Inc. and individual defendants, saying that the plaintiffs sufficiently pled that the biopharma company made misleading statements in the context surrounding its cancer treatment drug.

  • March 27, 2015

    Ex-Wells Fargo Analyst To Settle SEC In-House Trading Case

    Just days before his scheduled administrative court hearing, a former Wells Fargo analyst has agreed in principle to settle the U.S. Securities and Exchange Commission’s administrative charges he engaged in insider trading by giving one of the firm’s traders early access to his research, according to documents filed Friday.

  • March 27, 2015

    Plaintiffs Blast BioScrip's Use Of Omnicare In Shareholder Suit

    The lead plaintiff in a proposed securities class action on Friday blasted BioScrip Inc. for defending itself under the shield of the U.S. Supreme Court's recent Omnicare Inc. ruling, saying its letter to the New York federal judge “badly misstated” the court’s actual holding.

  • March 27, 2015

    Winston's 2 New Ex-Pillsbury Partners Bring Poach Total To 15

    Winston & Strawn LLP has hired a mergers and acquisitions finance partner and an insolvency partner from Pillsbury Winthrop Shaw Pittman LLP, the firm said Friday, bringing its Pillsbury hiring spree count to 15 in the last 60 days.

  • March 27, 2015

    Venable Nabs Ex-DOJ Financial Fraud Honcho For DC Office

    The head of the U.S. Department of Justice's Financial Fraud Enforcement Task Force from 2011 to 2013 has joined Venable LLP as a partner in the firm's Washington, D.C., office, working on financial regulation and enforcement, the firm announced on Friday.

  • March 27, 2015

    BlackRock Can't Escape Suit Alleging Excessive Fees

    A New Jersey federal judge refused on Wednesday to dismiss a suit accusing investment giant BlackRock Inc. of charging two mutual funds excessive advisory fees, finding the funds adequately pled claims that they were charged $280 million more per year than subadvised funds for similar services.

  • March 27, 2015

    Lululemon Tells 2nd Circ. Insider Trading Claim A Stretch

    An attorney for Lululemon Athletica Inc. on Friday urged the Second Circuit not to revive a shareholder derivative action alleging the yoga apparel maker’s board looked the other way while its founder pocketed nearly $50 million through insider trading, calling the allegation “preposterous.”

  • March 27, 2015

    Fed’s Fischer Urges Vigilance Over Shadow Banking Sector

    A key Federal Reserve policymaker on Friday said regulators needed to keep a close watch on the growing shadow banking sector in order to prevent it from threatening the broader economy.

  • March 27, 2015

    Golf Channel Wants Mulligan On $6M Stanford Suit

    TGC LLC, doing business as Golf Channel, asked the Fifth Circuit on Wednesday to rehear its decision that the receiver for R. Allen Stanford’s Ponzi scheme could sue the sports channel for about $6 million, arguing that a previous ruling by the appeals court is at odds with the decision.

  • March 27, 2015

    One Year After Rural/Metro, Bankers Flying Under Radar

    Not much has changed in the year since Delaware's Chancery Court laid the foundation for financial advisers to be held accountable for conflicts of interests during the deal-making process, but lawyers say that may be due to a lack of significant test cases and caution within the financial industry as bankers look to avoid a similar fate.

  • March 27, 2015

    Good Title Attorneys Are Hard To Come By, FNTA CEO Says

    Fueled by a strong flow of commercial mortgage-backed securities work, the fledgling but fast-growing First Nationwide Title Agency recently bulked up its legal department. But the company's president and CEO Steven M. Napolitano and senior underwriting counsel Felix Tschanz tell Law360 that experienced title attorneys can be hard to find.

  • March 27, 2015

    Ex-Logica Manager Gets 10 Mos. For Insider Trading

    A former manager at the multinational IT firm Logica PLC was sentenced on Friday to 10 months in prison on three counts of insider trading ahead of the company's acquisition by a Canadian rival, according to the U.K.’s markets regulator.

  • March 27, 2015

    Blackstone Unit Strikes Landmark $230M Loan Securitization

    A Blackstone Group LP fund affiliate announced Friday that it will soon break new ground with the first multi-borrower loan securitization deal for the emerging single-family rental sector, as it is the final leg of crafting a $230 million transaction.

  • March 27, 2015

    Former Broker-Dealer Execs Get 4 Years Each In FCPA Case

    Direct Access Partners LLC's former CEO Benito Chinea and former managing director Joseph Demeneses got four years in prison each on Friday for a $60 million Venezuelan bank bribery scheme — sentences said to be the longest yet for Foreign Corrupt Practices Act violations in the Second Circuit.

  • March 27, 2015

    NY Brokerage To Pay SEC $15M For Offering Fraud

    A New York-based brokerage firm agreed Friday to pay $15 million to settle the U.S. Securities and Exchange Commission’s charges it underwrote a public offering for a purported Chinese coal firm despite knowing the company’s offering materials contained false information, according to the SEC.

  • March 27, 2015

    Kinross Pays $33M To Settle Securities Suit Over African Mine

    Plaintiffs accusing Kinross Gold Corp. of misleading investors over the prospects of a West African mine it sought to acquire through a merger asked a New York federal judge on Thursday to preliminarily approve a $33 million settlement deal that would halt a proposed securities class action.

Expert Analysis

  • Biomet Again Underscores FCPA Risks In Life Sciences

    Gary Giampetruzzi

    While few details have been disclosed relating to the historic extension of Biomet Inc.'s deferred prosecution agreement, its warning is clear — where prosecutors question a company’s candor, cooperation or remediation of issues, the grip of formal oversight will not be easily released, say attorneys with Paul Hastings LLP.

  • A Closer Look At Madoff Victims' PwC, Citco Suit

    Christine Vargas Colmey

    A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.

  • What Experts Can Say About Inadmissible Facts During Trial

    Jason McDonell

    For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.

  • Determining ERISA Duties Post-Dudenhoeffer

    H. Douglas Hinson

    It is hard to imagine how a new, separate, distinct duty to disclose inside information about public companies under the Employee Retirement Income Security Act, along with the specter of ERISA fiduciaries becoming a new source of “material” information about public companies, would not cause more harm than good, say H. Douglas Hinson and Emily Costin of Alston & Bird LLP.

  • Lower Courts Missing The Point Of Halliburton II

    John S. Williams

    Defendants are being denied the full benefit of Halliburton II because courts are misunderstanding the import of the case, and in particular, how that decision requires a refined reading of Halliburton I and Amgen, say George Borden and John Williams of Williams & Connolly LLP.

  • Omnicare: Good News For Issuers But Questions Remain

    Brian T. Glennon

    The U.S. Supreme Court’s highly anticipated Omnicare decision provides much-needed clarification as to when a statement of opinion can give rise to Section 11 liability and, to the relief of securities issuers, when it cannot. But the court did not directly address important issues regarding how the Omnicare analysis will be applied, including when an omission may give rise to Section 11 liability, say attorneys with Latham & Watkins LLP.

  • Can I Advertise My Latest Winning Trade?

    In this brief video, Schulte Roth & Zabel LLP partners Jennifer Dunn and David Efron discuss the right and wrong ways to advertise a fund’s latest winning trade and provide an overview of the SEC’s regulations prohibiting “cherry-picking.”

  • High Court May Take On Corporate 5th Amendment Privilege

    Ramzi Abadou

    A festering but virtually unnoticed circuit split over a legal doctrine the U.S. Supreme Court first recognized early last century may provide the Roberts court with the opportunity to grant corporate persons privilege against self-incrimination for the first time in U.S. history, says Ramzi Abadou of Kahn Swick & Foti LLP.

  • Biomet’s DPA Proves An Inescapable Device

    Amy Riella

    As just the latest in a series of companies facing additional scrutiny from U.S. regulators following the settlement of an enforcement action involving violations of the Foreign Corrupt Practices Act, Biomet Inc.’s current plight highlights the risks of continuing reporting and disclosure obligations contained in most deferred and nonprosecution agreements, say Amy Riella and Carla Jordan-Detamore of Vinson & Elkins LLP.

  • Lessons From The Commerzbank Settlement

    Michael Volkov

    The headlines certainly caught everyone’s attention — Commerzbank was forking over $1.4 billion to the U.S. and New York governments for violating U.S. sanctions and Bank Secrecy Act/anti-money laundering requirements. If you take the time to read the settlement papers, the picture is not pretty. In fact, you might even think Commerzbank and a number of individuals were very lucky, says Michael Volkov of The Volkov Law Group LLC.