Securities

  • July 24, 2014

    Andrews Kurth Atty Who Repped Allen Stanford To Leave Firm

    An Andrews Kurth LLP partner and former U.S. Securities and Exchange Commission investigator who represented Ponzi schemer R. Allen Stanford will leave the firm, which says his departure is unrelated to its settlement last month of a $51 million malpractice suit involving the partner.

  • July 24, 2014

    Ex-BizJet CEO Pleads Guilty In Latin America Bribe Scheme

    The former president and chief executive officer of BizJet International Sales and Support Inc., a U.S.-based unit of aircraft maintenance company Lufthansa Technik AG, pled guilty in Oklahoma federal court on Thursday for his role in an alleged scheme to pay bribes to government officials in Latin America.

  • July 24, 2014

    RBS Securities Can't Duck CUNA Mutual's MBS Suit

    A Wisconsin federal judge refused Wednesday to dismiss CUNA Mutual Group's suit against RBS Securities Inc., saying the insurer may have been justified in dragging its heels on some claims that the investment bank overhyped its mortgage-backed securities.

  • July 24, 2014

    Clearing Firm Looks To Pare Dodd-Frank Whistleblower Case

    Clearing services provider COR Clearing LLC on Wednesday told a Nebraska federal judge that a former executive alleging she was fired after reporting potential securities fraud should not be able to pursue negligence and breach of contract claims because she hasn't done enough to support them.

  • July 24, 2014

    Ex-Sentinel CEO Denied Acquittal, New Trial Request

    Former CEO Eric Bloom of the bankrupt Sentinel Management Group Inc.on Wednesday lost a bid to overturn a March guilty verdict that found he operated a $500 million securities fraud scheme, reached by a jury Bloom said made its decision out of laziness and a desire to be finished quicker.

  • July 24, 2014

    Starboard Sues To See Darden Docs On $2B Red Lobster Sale

    Activist investor Starboard Value LP launched a suit in Florida state court Wednesday seeking access to Darden Restaurant Inc.'s records on its $2.1 billion sale of the Red Lobster restaurant chain, pushing forward claims of alleged mismanagement and governance issues.

  • July 24, 2014

    MSRB Advances Muni Adviser Supervision Proposal To SEC

    The self-regulatory organization for the municipal securities market on Thursday advanced a plan to formalize how municipal advisers oversee their operations through a series of rule proposals that are modeled after existing broker-dealer and investment adviser standards.

  • July 24, 2014

    SEC Expands Crackdown On $2.4M Football-Laser Scheme

    The U.S. Securities and Exchange Commission and federal prosecutors expanded a crackdown Thursday on companies they say fleeced investors out of $2.4 million with false promises about football-field laser technology, inking no-admit settlements with a number of defendants and revealing parallel criminal charges.

  • July 24, 2014

    Dodd-Frank Architect Says Law Can Adapt To The Times

    Although the Dodd-Frank Act has come under fire from critics on all sides of the financial regulatory reform debate, one of the law's key architects told Law360 that it provides more than enough flexibility for regulators to fix problems as they arise. This is Part 5 of a five-part series on the four-year anniversary of the Dodd-Frank Act.

  • July 24, 2014

    SIFMA Asks High Court To Limit American Pipe Tolling Rule

    The Securities Industry and Financial Markets Association on Thursday told the U.S. Supreme Court that its decision in American Pipe & Construction Co. v. Utah, which held that filing a putative class action stops the statute of limitations from running for would-be class members, should not apply equally to securities litigation statutes of repose.

  • July 24, 2014

    Former BES Chief Arrested As 3rd Espirito Co. Hits Bankruptcy

    Troubles worsened within Portugal’s Espirito Santo banking empire Thursday when prosecutors arrested the former chief executive of Banco Espirito Santo in a money-laundering and tax-evasion probe and a third company in the group sought court protection from creditors.

  • July 24, 2014

    Judge Upholds Madoff Aides' Convictions But Slams Feds

    A New York federal judge on Thursday upheld the convictions of five former Bernard L. Madoff Investment Securities LLC employees accused of aiding the Ponzi scheme but sharply criticized prosecutors for making “derogatory generalizations” in closing arguments to the jury.

  • July 24, 2014

    Grand Jury Charges TelexFree Heads With Pyramid Scheme

    A federal grand jury in Massachusetts on Wednesday charged the owners of bankrupt TelexFree Inc. with fraud and conspiracy in connection with the purported Internet telephone service company that authorities and investors contend was little more than a $1.1 billion pyramid scheme.

  • July 24, 2014

    SEC To Consider Application For Alternative-Trading SRO

    The U.S. Securities and Exchange Commission will consider Automated Matching Systems Exchange LLC’s application to create a self-regulatory organization for alternative trading systems, after AMES filed a lawsuit contending the agency had abused its authority by blocking its attempts to become a trading venue.

  • July 24, 2014

    Halliburton Wins Discovery Stay In Securities Class Action

    A Texas federal judge has granted an emergency motion from Halliburton Co. to stay discovery in a securities class action involving liability from asbestos litigation while the issue of class certification is revisited following the U.S. Supreme Court’s landmark June decision in the case.

  • July 24, 2014

    Ex-Merrill Chair Ducks Madoff Victims' $5M Investment Suit

    A Maine federal jury on Wednesday cleared former Merrill Lynch & Co. Inc. Vice Chairman John Steffens and his hedge fund Spring Mountain Capital LP from a Maine couple’s suit seeking to recover the up to $4.8 million they had lost in Bernie Madoff’s more than $17 billion Ponzi scheme.

  • July 24, 2014

    Former Deputy Gets 1 Year For Aiding Rothstein's Scheme

    A former Broward County sheriff's deputy was sentenced Thursday to one year in prison for agreeing to use his position in law enforcement to support convicted Ponzi schemer Scott Rothstein and his law firm Rothstein Rosenfeldt Adler PA in a $1.2 billion fraud.

  • July 24, 2014

    House Reps. Press For Change After Ackman Allergan Bid

    A member of the House Financial Services Committee said Thursday that he may take legislative action if the U.S. Securities and Exchange Commission doesn't take steps to prohibit an unusual bidder-hedge fund partnership pioneered earlier this year by famed activist Bill Ackman and Valeant Pharmaceuticals International Inc.

  • July 24, 2014

    Orrick's Credit Suisse MBS Analysis Is Fair Game, Judge Says

    A New York judge on Wednesday said Credit Suisse AG must produce documents stemming from an analysis by Orrick Herrington & Sutcliffe LLP on repurchase demands for loans underlying $497 million worth of residential mortgage-backed securities, finding the study isn't protected by attorney-client privilege.

  • July 24, 2014

    Ex-SEC Litigator Healy Leaves Reed Smith For Locke Lord

    Former SEC senior assistant chief litigation counsel Terence Healy has left Reed Smith LLP after two years and joined Locke Lord LLP's Washington, D.C., office, Locke Lord's Washington managing partner confirmed Thursday.

Expert Analysis

  • 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.

  • Understanding The Investment Adviser Registration Process

    Excerpt from Lexis Practice Advisor
    Gretchen Passe Roin

    The Investment Advisers Act preempts most state regulation of a U.S. Securities and Exchange Commission-registered investment adviser and its supervised persons. However, states have the power to regulate the licensing and registration of an SEC-registered adviser’s “investment adviser representatives,” say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Fla. Sets Strict Standard For Direct Shareholder Claims

    Jeffrey W. Gutchess

    In Dinuro Investments v. Camacho, a Florida court clarified the limited circumstances under which a corporate shareholder or limited liability company member has standing to bring a direct claim for damages relating to the company — an issue that has become more and more unsettled, say Jeff Gutchess and Justin Brenner of Bilzin Sumberg Baena Price & Axelrod LLP.

  • High Court Will End Circuit Split With Libor MDL Case

    Stacey Slaughter

    The U.S. Supreme Court's acceptance of Gelboim v. Bank of America Corp. will resolve a circuit split on whether a plaintiff can immediately appeal the district court’s dismissal of a lawsuit that has been consolidated with other suits that are still pending, but it is merely the first of several steps needed to revive the bondholder plaintiffs' antitrust claim, say Stacey Slaughter and Thomas Berndt of Robins Kaplan Miller & Ciresi LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • Protections Remain In Place For Ga. Officers, Directors

    J. Timothy Mast

    The Georgia Supreme Court’s highly anticipated decision in Federal Deposit Insurance Corp. v. Loudermilk clarifies the protections afforded by the business judgment rule to directors and officers of banks and corporations, and proves that the “wisdom” of corporate decisions continues to be shielded from claims of ordinary negligence, say attorneys with Troutman Sanders LLP.

  • An Inventive Way To Remove Pure State Court Claims

    Michael E. Blumenfeld

    Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.