General Electric Capital Corp. on Thursday asked the U.S. Judicial Panel on Multidistrict Litigation to combine four lawsuits accusing the company of participating in the $3.6 billion Ponzi scheme orchestrated by Tom Petters.
The Municipal Securities Rulemaking Board, which oversees the $3.6 trillion municipal securities market, on Thursday criticized the failure of many issuers to disclose their use of bank financing that can depress credit profiles and subordinate existing bondholders.
Gibson Dunn gave federal prosecutors a pair of black eyes in 2014, securing a trial victory in a 14-year-long insider trading case against a hedge fund manager, and ensuring an oil company executive walked away from a criminal fraud action with no jail time, earning its lawyers a place among Law360’s Securities Groups of the Year.
The Securities Industry and Financial Markets Association came out in support of proposed BATS Global Markets Inc. rule change for nullifying obvious error in option trades, saying the change will harmonize obvious and catastrophic error rules across exchanges, in a comment letter Wednesday to the U.S. Securities and Exchange Commission.
The admitted architect of a massive foreign currency trading Ponzi scheme that bilked investors out of nearly $34 million was sentenced to 25 years in prison Thursday by an Illinois federal judge.
New Jersey-based biopharmaceutical company Immunomedics Inc. on Thursday turned back allegations that it misled investors by concealing the deterioration of a major licensing agreement after a federal judge ruled the company was under no obligation to disclose anything short of the contract’s termination to investors.
The U.S. Securities and Exchange Commission on Wednesday agreed to not impose a fine against a former Gleacher & Co. representative in exchange for his testimony against an ex-Barclays Capital Inc. bond trader over an alleged “parking” scheme the two were involved in.
Manitowoc Co. said Thursday it would use a tax-free spinoff to split its food-service unit into an independent publicly traded company, a move that comes a month after activist investor Carl Icahn surfaced with calls for a similar shakeup.
Yahoo Inc.'s move this week to spin off its $40 billion stake in Alibaba Group Holding Ltd. hinted at the company's direction going forward, but also invited a battery of new questions over what's next — including the buzzed-about possibility the company itself could land on the selling block.
Attorneys for a former Standard & Poor’s Rating Services executive on Thursday asked a New York federal judge to temporarily block the U.S. Securities and Exchange Commission from pursuing its in-house fraud case against her while the court considers if the agency’s administrative proceeding is constitutional.
Global banking regulators on Wednesday unveiled new requirements for banks to disclose their capital and risk positions in a more uniform manner in a bid to increase market discipline and investor knowledge of the inner workings of banks.
A Florida man is seeking to withdraw his guilty plea over an alleged $11 million insider trading scheme involving a former Wells Fargo investment banker, marking the latest fallout from the Second Circuit’s landmark decision in U.S. v. Newman.
Plaintiffs in a long-running collusion case asked a Massachusetts federal judge Thursday to ignore objections from retail investors and to grant final approval to $590 million in settlements in a class action claiming Goldman Sachs Group Inc., Carlyle Group LP and several other private equity firms teamed up to keep leveraged buyout prices low prior to the financial crisis.
Rules passed by the U.S. Commodity Futures Trading Commission around the trading of swap contracts are modeled too closely on those for the futures industry, and should be reformed to prevent more swaps activity from fleeing U.S. soil, the agency commissioner said on Thursday.
The U.S. Securities and Exchange Commission urged a Washington, D.C., federal judge Thursday to hold the CEO of accused fraudster E-Smart Technologies Inc. liable for alleged internal control failures, arguing the company had conceded the failures in a regulatory filing.
In a rare show of bipartisan unity, two senators have asked the U.S. Securities and Exchange Commission to extend the duration of its tick size pilot program, arguing that the current one-year proposal may be too short to gauge whether or not it is effective.
Nixon Peabody LLP and Mintz Levin Cohn Ferris Glovsky & Popeo PC cannot kill a malpractice suit by saying the plaintiff is as guilty as the law firms in failing to stop a former executive's alleged illegal fundraising because applicable state laws prohibit the defense, now-bankrupt biotech company Neogenix Oncology Inc. argued Wednesday.
A pair of prominent Democratic lawmakers on Thursday asked Bank of America Corp., JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. to provide detailed information about how the repeal of a Dodd-Frank Act swaps regulation will change their business plans.
The U.S. Securities and Exchange Commission has dropped its investigation of Cobalt International Energy Inc. over the alleged bribery of foreign officials in Angola in violation of the Foreign Corrupt Practices Act, the company said Wednesday.
The chief counsel to U.S. Securities and Exchange Commission head Mary Jo White announced plans Thursday to leave the agency after a year and three-quarters.
By finding that Section 316(b) of the Trust Indenture Act protects a bondholder’s ability to sue in the practical sense, and not just the procedural right to sue, the Southern District of New York may have given minority bondholders significant leverage in future negotiations with distressed companies and secured lenders, say attorneys with Latham & Watkins LLP.
Audit committee members are facing increased demands heading into 2015, which expose them to greater regulatory scrutiny and potential liabilities, and provide the basis for proxy and shareholder activists to oppose their re-election. Public companies, as well as private companies considering accessing the capital markets, need to be mindful of certain considerations, say attorneys with Mayer Brown LLP.
While e-discovery remains a critical pain point in litigation, the "solutions" supporting its processes continue to evolve. In order to help organizations navigate the sea of options, we conducted research with 21 organizations across e-discovery market segments to understand the factors involved in successful e-discovery investments, says David Houlihan of Blue Hill Research Inc.
A New York federal judge recently vacated previously accepted guilty pleas in U.S. v. Conradt, an insider trading prosecution brought under the “misappropriation” theory. There is now an increased likelihood that the Second Circuit’s decision in U.S. v. Newman will be read by other judges to apply to cases brought under both the classical and misappropriation theories, say attorneys with Patterson Belknap Webb & Tyler LLP.
At its December session, the Judicial Panel on Multidistrict Litigation considered the second attempt by a distributor of dietary supplements to create an MDL proceeding, raising the prospect of the first Hawaii MDL proceeding in nearly 20 years. But as we gear up for the panel hearing on Thursday, let's also consider how JPML trends of 2014 compare with prior years, says Alan Rothman of Kaye Scholer LLP.
Over the past year, Delaware courts have continued a trend in their opinions toward increased judicial deference to the decisions of independent and disinterested directors. What has changed is the lens through which the courts view, and thus apply, the fundamental ground rules for review of a sale process, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
A recent Seventh Circuit decision provides a cautionary tale for employers deciding what level of detail about litigated matters to include in publicly disclosed U.S. Securities and Exchange Commission filings, say attorneys with Dorsey & Whitney LLP.
Careful analysis of two separate Delaware decisions reveal guidance on how boards should undertake to satisfy their Revlon duties in the context of a change-of-control transaction, and each case makes clear that a court will be reluctant to second-guess a target board’s reasonable judgment absent a basis to question its motivations, say attorneys with Cadwalader Wickersham & Taft LLP.
On Friday, the U.S. Attorney’s Office for the Southern District of New York decided to seek appellate review of several aspects of the recent insider-trading decision in U.S. v. Newman and Chiasson. En banc rehearing petitions are rarely granted in any circuit, and are particularly rare in the Second Circuit, which hears the fewest number of rehearings of any circuit in the country, say Eugene Ingoglia and Gregory Morvillo of Morvillo LLP.
Both case law and academic studies indicate that 20 years after its enactment, the Private Securities Litigation Reform Act is not being used as zealously as either Congress intended or its provisions allow. Given the chilling effect that the PSLRA’s mandatory Rule 11 review should have on frivolous securities lawsuits, why isn’t this provision more frequently invoked? asks Jonathan Hackbarth of Quarles & Brady LLP.