Securities

  • July 31, 2014

    Law360's SEC Survival Guide: The Wells Notice And Beyond

    It’s one of the most dreaded plays in the U.S. Securities and Exchange Commission's enforcement book: the Wells notice. But just because the agency has indicated it’s ready to bring an enforcement action against a company, it doesn’t mean defense counsel should immediately enter trial mode — there are still other moves to be made. This is the last in a four-part series on making the best of an SEC investigation.

  • July 31, 2014

    Revolving-Door Roundup: Sidley, Bingham, Greenberg

    July was a busy month for attorneys bouncing back and forth between the government and BigLaw firms. Nine attorneys crossed the public-private divide, including U.S. Commodity Futures Trading Commissioner Scott O'Malia, who raised eyebrows with a decision to join the International Swaps and Derivatives Association days after leaving his government post, and former Treasury Department general counsel George Madison, who joined Sidley Austin LLP after a cautious two-year hiatus.

  • July 31, 2014

    Ponzi Schemer Rothstein's Ex-Law Partners Disbarred

    Jailed Ponzi schemer Scott Rothstein's fellow name partners at his former firm Rothstein Rosenfeldt Adler PA have been disbarred by the state's Supreme Court after pleading guilty to charges related to the $1.2 billion scheme that Rothstein ran out of the firm, the Florida Bar announced Thursday.

  • July 31, 2014

    SEC Rewards Tipster With Whistleblower Award

    The U.S. Securities and Exchange Commission on Thursday announced an award of more than $400,000 to an unnamed whistleblower who reported a fraud to the agency after company involved failed to address the issue internally despite several alerts.

  • July 31, 2014

    AIG, GE Capital Will Remain SIFIs, US Regulators Say

    U.S. financial regulators decided on Thursday that American International Group Inc. and GE Capital Corp. will keep their status as systemically important financial institutions, following an annual review of the designation.

  • July 31, 2014

    11th Circ. Upholds Investment Co. Ponzi Schemers' Sentences

    The Eleventh Circuit on Thursday affirmed the 14-year and 27-year sentences for two operators of an investment company that ran a Ponzi scheme and swindled investors out of $5 million, ruling that the trial court had not erred in admitting certain evidence and applying sentencing enhancements.

  • July 31, 2014

    Exchanges Claim Immunity From Suits Over Sneak Peeks

    The New York Stock Exchange, Nasdaq and other large exchanges on Thursday told a New York federal judge they are immune from class action lawsuits accusing them of breaching contracts with investors by providing high-frequency traders with advance access to market data.

  • July 31, 2014

    UK Fraud Office To Pay Added $2.5M To Settle Botched Sting

    The U.K. Serious Fraud Office said Thursday it has agreed to pay an additional £1.5 million ($2.5 million) to settle remaining civil claims with the brother of British real estate tycoon Vincent Tchenguiz over a botched 2011 investigation into the brothers over the collapse of Iceland’s Kaupthing Bank HF.

  • July 31, 2014

    Barclays Can't Dodge BayernLB's $274M Toxic RMBS Suit

    A New York judge refused to throw out German bank Bayerische Landesbank's suit against Barclays PLC and Carrington Capital Management LLC stemming from the sale of over $274 million in toxic residential mortgage-backed securities, finding Wednesday that the claims may not be time-barred by the German statute of limitations.

  • July 31, 2014

    2nd Circ. Revives JinkoSolar Sludge Dumping Suit

    The Second Circuit on Thursday revived a shareholder suit alleging JinkoSolar Holding Co. Ltd. failed to disclose that employees at one of the Chinese energy company's plants were dumping toxic sludge into a nearby river, finding a lower court had improperly dismissed the complaint.

  • July 31, 2014

    GAO Says Big Bank 'Subsidy' Could Return In A Crisis

    The biggest U.S. banks were able to fund themselves at a lower cost than their smaller rivals during the financial crisis, but while that advantage has nearly disappeared, it could return if market conditions deteriorate, according to a U.S. Government Accountability Office report released Thursday.

  • July 31, 2014

    Credit Suisse Latest To Disclose Dark Pool Probes

    Credit Suisse Group AG on Thursday became the latest major bank to disclose it is under government investigation around the operation of alternative trading systems, the class of off-exchange venues that include dark pools.

  • July 31, 2014

    Dealmakers Q&A: Seward & Kissel's Craig Sklar

    When issues arise in a deal, don’t stand on ceremony, cite precedent or say, “this is how it is always done,” but instead try to offer creative solutions, says Craig Sklar of Seward & Kissel LLP.

  • July 30, 2014

    SEC Says Computer Reseller Execs Lied About Inventory

    Two top executives of a Florida-based computer reseller lied to investors in the company’s 2008 annual report, saying the executives misled auditors with fudged inventory figures so the company could take out a bigger loan, the U.S. Securities and Exchange Commission said Wednesday.

  • July 30, 2014

    How They Won It: Labaton Scores $265M Massey Settlement

    Labaton Sucharow LLP attorneys struck a deal with federal prosecutors to allow discovery in their securities fraud case alleging Massey Energy Co. misrepresented its poor safety record leading up to the worst U.S. mining disaster in 40 years, providing the leverage needed to reach a $265 million settlement for plaintiffs led by a pension fund last year. 

  • July 30, 2014

    Forex Investors Say Record Justifies Big-Bank Cartel Suits

    Investors accusing JPMorgan Chase & Co., Bank of America Corp. and other large banks of manipulating foreign exchange rates on Tuesday pushed back against a collective bid to quash the lawsuits, saying the financial institutions are breezing over the extensive public record documenting the fraud.

  • July 30, 2014

    Law360's SEC Survival Guide: The Subpoena

    The day has come for the U.S. Securities and Exchange Commission to play one of its wild cards: the subpoena. At this point, the agency’s inquiry has grown into a full-blown, formal investigation, and defense counsel should look at how they can control what the SEC asks from their client while figuring out where they fit within the overall investigation. This is the third in a four-part series on making the best of an SEC investigation.

  • July 30, 2014

    DC Judge Asked To Nix CFTC Cross-Border Swaps Rules

    Several Wall Street lobbying groups urged a D.C. federal judge on Wednesday to vacate the Commodity Futures Trading Commission's controversial cross-border swaps rules, maintaining the agency failed to conduct necessary rulemaking procedures before setting up the regulations.

  • July 30, 2014

    Treasury Floats Beefed-Up Bank Transparency Rules

    The U.S. Department of Treasury on Wednesday issued proposed amendments to the Bank Secrecy Act’s regulations that would require financial institutions to identify real people behind otherwise-anonymous companies, saying they will make the U.S. financial system "more transparent" and prevent companies from engaging in illegal activity.

  • July 30, 2014

    'Too Big To Fail' Study Unlikely To Spur New Reforms

    A long-awaited government watchdog report expected to be released Thursday on the funding advantage the biggest banks enjoy from a public perception that they are "too big to fail" will renew the debate over efforts to reform Wall Street, but few observers expect it to push regulators off their current course.

Expert Analysis

  • Understanding The Investment Adviser Regulatory Scheme

    Excerpt from Lexis Practice Advisor
    Gretchen Passe Roin

    Lawyers counseling investment advisers should be aware that the U.S. Securities and Exchange Commission does not view the Investment Advisers Act as imposing a comprehensive regulatory scheme. Rather, advisers are subject to a broad fiduciary duty to pursue the best interests of their clients, say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.

  • The Caremark Standard At Issue In Wal-Mart Bribery Case

    Celia Taylor

    The Delaware Supreme Court could use the ongoing Indiana Electrical Workers Pension Trust Fund IBEW v. Wal-Mart Stores case — related to alleged bribery by Wal-Mart's Mexican affiliate — as an opportunity to revisit and clarify the Caremark standard of corporate board obligations, says Celia Taylor of Sturm College of Law at the University of Denver.

  • A Case For Synthetic Investment In US Real Estate

    Jeffrey L. Rubinger

    As a result of the dramatic rise in foreign investment in U.S. real estate and federal income taxes imposed under the Foreign Investment in Real Property Tax Act, foreign investors should once again consider investing synthetically through a total return swap, especially considering a recent IRS ruling, says Jeffrey Rubinger of Bilzin Sumberg Baena Price & Axelrod LLP.

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • And Now A Word From The Panel: Top 10 Venue Arguments

    Alan E. Rothman

    As the Judicial Panel on Multidistrict Litigation heads to the “Heart of America” for its July 31 hearing, this column will take a bit of a detour from its regular format and present a top 10 list of arguments — some strange, yet true — made in support of a particular MDL venue, says Alan Rothman of Kaye Scholer LLP.

  • No Breach Of Fiduciary Duty, No Atty Fees

    Stewart D. Aaron

    The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.

  • What's Next For US Financial Regulation

    Dan Ryan

    With the “too big to fail” debate about to hit the headlines again when the Government Accountability Office releases its long-awaited TBTF report, the rhetoric calling for the completion of outstanding regulations will once again sharpen. This rhetoric should not be confused with reality, however, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • Tips For Recovery Under Mandatory Victims Restitution Act

    Paul Monnin

    The Mandatory Victims Restitution Act is a valuable tool to recover the expenses of a costly, yet necessary, internal investigation into a former employee’s criminal wrongdoing. Anticipate and plan for a necessity showing under the MVRA as a potential criminal matter is being investigated and after government cooperation has commenced, say Paul Monnin and Zachary LeVasseur of DLA Piper LLP.

  • Your D&O Insurance Policy Post-Halliburton

    Roberta D. Anderson

    The U.S. Supreme Court decision in Halliburton Co. v. Erica P. John Fund may significantly increase defense costs at and prior to the class certification stage, so companies may wish to carefully consider their directors and officers insurance program and confirm that their policies would respond to cover expert witnesses and “event study” expenses, says Roberta Anderson of K&L Gates LLP.

  • 3 Takeaways From BofA's $16.5M Settlement With OFAC

    Michael V. Dobson

    Bank of America’s roughly $16.5 million settlement with the Office of Foreign Assets Control for alleged violation of OFAC sanctions is a treasure trove of sanctions compliance guidance, and carries important lessons for those preparing to submit voluntary self-disclosures, says Michael Dobson Jr. of Kelley Drye & Warren LLP.