Former SAC Capital Advisors LP portfolio manager Michael Steinberg yelled at a consultant and made him cry when he suspected the consultant might have been supplying insider information, Steinberg's attorney said at an insider trading trial Monday.
A California federal judge gave final approval Friday to a $500 million settlement of three class actions challenging Bank of America Corp.-owned Countrywide Financial Corp.’s underwriting standards for mortgage-backed securities, including $85 million in fees to the plaintiffs’ attorneys.
A New York federal judge on Friday held that the trustee liquidating Bernard Madoff’s investment firm’s estate may only assert certain claims against feeder funds on behalf of the firm’s customers if the claims are validly assigned to him.
A New York federal judge at a hearing Thursday denied a bid by the International Swaps and Derivatives Association Inc. to disqualify Quinn Emanuel Urquhart & Sullivan LLP from serving as lead counsel in multidistrict litigation over credit default swap, or CDS, market rigging, saying there was no conflict of interest.
A German engineering firm will pay $32 million to resolve allegations it breached the Foreign Corrupt Practices Act by bribing Nigerian government officials in an effort to score a $387 million natural gas pipeline contract, federal officials announced Monday.
The parent of Massey Energy Co. agreed to pay $265 million to settle a class action alleging Massey misrepresented its safety record to inflate stock prices, which plummeted following the worst U.S. mining disaster in more than 40 years, Massachusetts officials announced Monday.
Firms must recognize the stress of being a mother and a lawyer, and work to make their practitioners feel like they are part of a team that is helping them to succeed on both fronts, says Veronica Rendon, co-head of Arnold & Porter LLP's securities enforcement and litigation practice group.
A divided Second Circuit on Monday explained its recent decision to reverse the municipal bond bid-rigging convictions of three former General Electric Co. officials, ruling prosecutors had improperly characterized the alleged scheme as a continuing conspiracy to evade the statute of limitations.
Hologic Inc., a maker of cancer-screening tools, said Monday it would expand its board to accommodate two new directors hand-picked by Carl Icahn, staving off a proxy fight with the activist less than a month after he disclosed a sizable minority stake in the company.
A New York federal court on Friday sentenced two former Vitesse Semiconductor Corp. executives to three years’ probation after they pled guilty to manipulating company records to thwart an expected stock-options backdating investigation by federal authorities.
Deutsche Bank AG sued billionaire investor Alexander Vik in New York court on Thursday, to force him to make good on his obligation to pay a $300 million judgment a London court awarded the bank last month over unpaid margin calls made in violation of several verbal contracts.
DLA Piper was hit with an $80 million lawsuit in New York state court on Friday by two Cayman Islands investment funds that say the law firm helped their investment manager misappropriate more than $36 million to cover payments owed by an investment vehicle that dealt in mortgage-backed securities.
Three General Electric Co. units will pay $18 million to end part of their involvement in multidistrict litigation accusing them and other financial institutions of colluding to rig bids in the municipal bond derivatives market, according to a filing in New York federal court Friday.
Barnes & Noble Inc. told investors Thursday that it is being investigated by the U.S. Securities and Exchange Commission for its accounting, including an employee’s allegation that the company improperly reported some of its information technology expenses.
A New York state judge has temporarily barred a Brooklyn attorney and two condominium developers he represents from participating in condominium- and securities-related work in New York during a suit against them over alleged construction defects in their new development, the state attorney general said Friday.
A former Goldman Sachs Inc. trader who pled guilty to fraudulently building an $8.3 billion futures position on Friday received a nine-month prison sentence and was ordered to pay back the $118 million his illicit trades cost the firm.
A Pennsylvania appeals court upheld on Thursday a nonjury trial decision that a special committee for Irex Corp. properly valued the company’s stock at $66 per share for purposes of a cash-out merger.
The federal government on Wednesday asked the U.S. Supreme Court to hear a challenge to a hedge fund's bid to enforce subpoenas seeking information on Argentina's non-U.S. assets in order to collect on $1.5 billion in defaulted bonds, saying such discovery tramples on foreign states' sovereign immunity.
Though regulators are set to unveil the long-awaited Volcker Rule on Tuesday, banks will still have to brace for additional confusion over the ban on proprietary trading as industry groups gear up for an all but certain court challenge to the regulation.
Goldman Sachs Group Inc. must face allegations it lied to HSH Nordbank AG about the quality of the loans in $110 million worth of mortgage-backed securities, a New York state judge has ruled, finding that it hadn't waited too long to sue under German law.
In light of the proposed e-discovery amendments to the Federal Rules of Civil Procedure, businesses need to set themselves up to efficiently respond to discovery and requests for information from their counsel by implementing and following document-control policies as part of normal business practices. The failure to do so will eventually consume vast amounts of employee time, say Steven Cvitanovic and Colin Murphy of Haight Brown & Bonesteel LLP.
The Second Circuit’s opinion in Halebian v. Berv — a significant departure from its own oft-cited Joy v. North decision — highlights that a derivative plaintiff’s entitlement to discovery, if any, is inversely proportional to the showing made by a special litigation committee in support of its motion to terminate, says Donald Corbett of Lowenstein Sandler LLP.
While the sheer volume of tips received this year underscores the impact the U.S. Securities and Exchange Commission whistleblower program has had on enforcement activities in its second year of operation, the continuing pattern of diversity among whistleblowers is also noteworthy. Any concerns about the commission’s ability to adequately publicize the program have seemingly been laid to rest, says Steven Goldschmidt of Ropes & Gray LLP.
Companies should carefully consider the interaction of the various timing requirements under Regulation FD and Form 8-K. Filing of a Form 8-K is not required until four business days after initial disclosure, but to take advantage of the filing exception for nonwritten communications, the earnings call must take place no more than 48 hours after the earnings release is filed on Form 8-K, says Michael Zeidel of Skadden Arps Slate Meagher and Flom LLP.
The U.S. Securities and Exchange Commission has generally not concerned itself with improper conduct involving embargoed countries. But the SEC’s complaint in the recent Weatherford International Ltd. case suggests that the agency takes the position that inaccurate accounting of transactions with embargoed countries can result in violations of the Exchange Act, say attorneys with Ropes & Gray LLP.
Any bank that interacts with a municipal entity should review the new municipal adviser rules to ensure that its activities are in compliance. Advice to a municipal entity or obligated person, for example, about the purchase of guaranteed investment contracts, municipal derivatives or investment strategies, could cause a bank to be deemed a municipal adviser, say attorneys with Goodwin Procter LLP.
Regarding the petition for certiorari in Dudenhoefer v. Fifth Third Bancorp, the solicitor general recently opined that only the presumption of prudence regarding employer stock being a proper legal standard for evaluating breach of fiduciary duty claims warrants the U.S. Supreme Court's review. Although presumably the high court will show deference to the solicitor general’s opinion, the high court should do just the opposite, say H. Douglas Hinson and Emily Costin of Alston & Bird LLP.
What is the thinking as to whether leaky air conditioner cases warrant multidistrict litigation treatment? On Dec. 5, the Judicial Panel on Multidistrict Litigation heads to Vegas to find out. This will bring a temperature shift in more ways than one from the September hearing, where the panel considered a potential MDL proceeding arising from allegedly defective clothes dryers, says Alan Rothman of Kaye Scholer LLP.
If the U.S. Supreme Court review in Halliburton II results in an outcome that significantly reduces the feasibility of class proceedings, we likely will see more plaintiffs put through their evidentiary paces on the element of reliance and a judiciary more amenable to rigorously exploring the evidence of same. Such a return to parity should find support from all constituencies seeking justice in the securities litigation arena, say Matthew Matule and Aaron Morris at Skadden Arps Slate Meagher & Flom LLP.
Because Latin American countries differ substantially from one another, there is no effective one-size-fits-all approach to anti-corruption compliance in the region. That said, companies doing business in the region should be aware of a number of recurring compliance concerns that may lead to an increased risk of violating the FCPA or other applicable anti-bribery laws, say attorneys with Debevoise & Plimpton LLP.