Securities

  • August 2, 2015

    Texas AG Paxton Charged With Securities Fraud

    Texas Attorney General Ken Paxton has reportedly been charged with three violations of state securities laws, including two first-degree felony counts alleging misrepresentations to investors, in an indictment expected to be unsealed Monday.

  • July 31, 2015

    Goldman To Drop $270M To Settle $6B RMBS Suit

    Goldman Sachs Group & Co. has tentatively agreed to pay $270 million to resolve a putative class action brought by a union pension fund accusing the investment banking giant of selling $6 billion in shoddy residential mortgage-backed securities, according to multiple media reports published Friday.

  • July 31, 2015

    Upstream-Downstream Tiff Over Bankrupt Oil Middleman Ends

    Oil producers who sold to middleman SemCrude LP before its bankruptcy do not have a right to recover money from a purchaser downstream of SemCrude who allegedly shielded itself from the company's troubles by taking unfair advantage of the upstream producers' credit agreements, a Delaware federal judge said Thursday.

  • July 31, 2015

    Ex-WJB Capital CFO Admits To Fraud Scheme

    The former chief financial officer of defunct Wall Street broker-dealer WJB Capital Group Inc. on Friday admitted to falsifying documents submitted to regulators as part of a scheme to prop up the struggling company as it reeled from the effects of the Great Recession.

  • July 31, 2015

    Cohen Milstein Lands $73M For MBS Settlement With Banks

    A New York federal judge signed off Friday on a $73.4 million fees and costs award to Cohen Milstein Sellers & Toll PLLC in a $235 million settlement ending a class action brought by a pension fund against three financial giants over Residential Capital LLC mortgage-backed securities.

  • July 31, 2015

    5th Circ. Revives Ex-Tesoro VP's SOX Whistleblower Claim

    The Fifth Circuit on Friday revived a Sarbanes-Oxley Act whistleblower suit leveled against Tesoro Corp. by a former vice president who said he was fired after reporting that the company counted taxes as revenue, saying that although his complaint was garbled it shouldn't have been completely dismissed.

  • July 31, 2015

    Forex Suit Adds Japanese, Canadian, French, UK Banks

    Four foreign banks have been added as defendants to a class action that claims a number of banks orchestrated a conspiracy to rig the foreign exchange market, class counsel Scott & Scott LLP told a New York federal court on Friday.

  • July 31, 2015

    Legacy Wants $213M Madoff Trustee Suit Dismantled

    Legacy Capital Ltd. urged a New York bankruptcy judge Thursday to gut a trustee's suit seeking to claw back more than $213 million in transfers it received from Bernard Madoff’s fraudulent investment fund, saying it had no knowledge of his colossal Ponzi scheme.

  • July 31, 2015

    CFTC Wins $76M Judgment Over Hedge Fund Ponzi Scheme

    A North Carolina federal judge has hit two former purported hedge fund managers and their companies with a $76 million judgment in a suit brought by the U.S. Commodity Futures Trading Commission after they were convicted of operating a foreign currency exchange Ponzi scheme.

  • July 31, 2015

    Clean Global Energy Exec Wants Suit Over 'Coup' Tossed

    An executive for Clean Global Energy on Friday urged a Texas federal judge to toss a suit filed by the company alleging he helped wrongfully boot two shareholders, arguing in part that the two men had no right to sue in the company's name.

  • July 31, 2015

    Schwab Urges High Court To Quash Risky CMO Class Action

    Schwab Investments has petitioned the U.S. Supreme Court to review a Ninth Circuit decision that revived a proposed class action accusing it of making risky bets on collateralized mortgage obligations despite policies outlined in investment guidelines, arguing the plaintiffs had no standing to sue in the first place.

  • July 31, 2015

    Cablevision Investor Appeals Dismissal Of 'Nepotism' Suit

    The shareholder who pressed derivative claims that Cablevision Systems Corp.'s stock value had been diluted from “nepotism run amok” by the controlling Dolan family appealed Friday a Delaware Chancery judge’s decision that the case didn’t warrant judicial intervention into the cable company’s business decisions.

  • July 31, 2015

    SEC Says It's Likely To Win Appeal of In-House Court Freeze

    The U.S. Securities and Exchange Commission on Thursday further urged a Georgia federal judge to stay the injunction she granted in June to an accused insider trader in the SEC’s administrative court, arguing that it is very likely to win its appeal of that injunction in the Eleventh Circuit.

  • July 31, 2015

    Cigna Shareholder Sues To Halt $54B Anthem Acquisition

    A Cigna Corp. shareholder filed a proposed class action on Friday, asking the Delaware Chancery Court to block the Connecticut company's $54 billion acquisition by fellow health insurance giant Anthem Inc., alleging that the deal constitutes a breach of fiduciary duty by Cigna directors.

  • July 31, 2015

    Revolving-Door Roundup: Holder Returns Home To Covington

    Former Attorney General Eric Holder headlines this month's list of attorneys moving between the public and private sectors, landing back at his old roost, Covington & Burling LLP, with a top aide in tow.

  • July 31, 2015

    SEC Slams Ironridge's Bid To Stay Suit Over In-House Court

    The U.S. Securities and Exchange Commission fired back at Ironridge Global IV Ltd. in Georgia federal court Thursday, arguing that the microcap investor’s bid to block a pending SEC administrative suit against it should fail not only on jurisdictional grounds but also on the merits.

  • July 31, 2015

    $400M Pfizer Class Action Deal Gets OK From Judge

    A New York federal judge on Thursday granted final approval of a $400 million settlement that ends a class action accusing Pfizer Inc. of misleading investors about illegal off-label drug marketing, though some investors may not get much with a recovery rate of 15 cents per share.

  • July 31, 2015

    GE Mortgage Can't Escape BNY Mellon's $900M RMBS Suit

    A Manhattan federal judge has denied General Electric Mortgage Holding LLC’s bid to exit Bank of New York Mellon’s suit accusing it and another mortgage company of falsely representing a $900 million mortgage-backed security trust with poor performance.

  • July 31, 2015

    Chinese Securities Regulators To Probe Automated Trading

    China's securities regulator said Friday that it is stepping up supervision of automated program trading, which the government believes is partially to blame for the recent volatility in the nation's stock market.

  • July 30, 2015

    Settlement Monitor Says BofA Picked Up Consumer Relief Pace

    Bank of America Corp. put itself on pace to complete its consumer relief requirements from last August’s $17 billion mortgage settlement by distributing nearly $1.2 billion in mortgage refinancing and community assistance through the first quarter of 2015, the settlement’s monitor said Friday.

Expert Analysis

  • Rebutting Fraud On The Market

    Michelle Reed

    The most recent Halliburton class certification decision addressed one of the key questions left open after the U.S. Supreme Court’s ruling last year — the level of proof necessary to rebut the fraud-on-the-market presumption, say attorneys with Akin Gump Strauss Hauer & Feld LLP.

  • 3 Class Actions Before The Supreme Court

    Fred T. Isquith

    Perhaps the case potentially most consequential is Campbell-Ewald Co. v. Gomez, which raises intriguing procedural issues and would affect any class action where the defendant offers to the plaintiff full damages and any feasible fees and costs, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • 7 Keys To Improving Your Direct Examination

    James Murray

    Trial lawyers should approach direct examination with the same excitement as cross-examination. If you do not, the jury will notice and your case will suffer. An effective direct examination backs the lawyer out of the action and puts the witness front and center to tell the story in a conversational, comforting, interesting fashion, says James Murray of Dickstein Shapiro LLP.

  • Putting The Brakes On Newman: 3 Recent Rakoff Decisions

    David I. Miller

    Judge Jed Rakoff’s recent instructive decisions have set the stage for a closer analysis of Newman’s potential effect on future insider trading cases. Indeed, in its petition for a writ of certiorari, the government uses Judge Rakoff’s decisions to support its arguments to the U.S. Supreme Court, say attorneys with Morgan Lewis & Bockius LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 3

    Philip Richter

    One of the key practice points arising out of recent decisions in Merlin v. Autoinfo, Owen v. Cannon, and Longpath v. Ramtron is that an acquiror should outline in some detail the cost savings expected from a merger. References to anticipated savings embedded in assumptions for projections or in an investment memorandum may not be sufficient, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Lessons From 5th Circ. Application Of Scienter Standard

    David Dodds

    The Fifth Circuit’s recent dismissal of a federal securities fraud class action that arose out of the failure of Guaranty Bank serves as a reminder that even where some specific allegations tend to support an inference of scienter, they may not invariably lead to a finding of the required “strong inference,” says David Dodds of Haynes and Boone LLP.

  • A Potential Basis For Objecting To Certain CFPB Sanctions

    Jennifer L. Sutton

    Much like the U.S. Securities and Exchange Commission bar at issue in SEC v. Koch, a number of the Consumer Financial Protection Bureau’s enforcement actions address violations premised on conduct that, at least in part, predates Dodd-Frank. The D.C. Circuit’s ruling in Koch rejecting retroactive Dodd-Frank application could provide a basis for institutions to object to certain CFPB sanctions, say attorneys with Sullivan & Cromwell LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 2

    Steven Epstein

    The Delaware Chancery Court now primarily or exclusively relies on the merger price to determine fair value when the merger price is a particularly reliable indication of value and the standard financial valuation analyses — discounted cash flow and comparables — are particularly unreliable. All of the recent cases meeting these parameters have involved disinterested transactions, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 1

    Philip Richter

    In a break with past practice, several times in recent months, the Delaware Chancery Court has relied primarily or exclusively on the merger price to determine fair value in appraisal cases. However, we note that the court’s reliance on merger price is still limited, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • And Now A Word From The Panel: The Rocket Docket!

    Alan Rothman

    As we celebrate the 46th anniversary of mankind’s first walk on the moon, this month’s column tracking the Judicial Panel on Multidistrict Litigation appropriately explores the impact of the “rocket docket” on the selection of an MDL venue. We have discussed various venue selection factors, but is the perceived speed with which a district handles cases relevant? asks Alan Rothman of Kaye Scholer LLP.