Securities

  • May 3, 2016

    BREAKING: MetLife Pays Record $25M FINRA Penalty Over Variable Annuities

    The Financial Industry Regulatory Authority announced Tuesday that MetLife Securities Inc. has agreed to pay a $20 million fine and $5 million in restitution for misleading customers over variable annuity replacements, the largest FINRA fine related to variable annuities to date.

  • May 2, 2016

    1st Circ. Revives $5.9B MBS Suit Against Moody's

    The First Circuit on Monday revived the Federal Home Loan Bank of Boston’s $5.9 billion suit accusing Moody’s Corp. of falsely blessing risky mortgage-backed securities with high ratings, allowing a Massachusetts federal judge to decide whether to ship the case to New York.

  • May 2, 2016

    Banks Lose Fight Over UK Document Chase In Yen Libor Suit

    A New York federal judge Friday rejected a bid by HSBC and other banks to have an investor pursue documents in the U.K. via the Hague Convention in a proposed antitrust class action alleging they fixed yen-denominated Libor rates, saying the Federal Rules of Civil Procedure take precedence.

  • May 2, 2016

    Yelp Investors Fight To Revive Bad Review Suit In 9th Circ.

    A group of investors pleaded with the Ninth Circuit on Monday to revive their proposed class action alleging Yelp Inc. lied to shareholders about the authenticity of reviews on its site, saying the California federal judge who dismissed the case overlooked important facts.

  • May 2, 2016

    Robbins Geller, Others Snag $57M Fees In Goldman RMBS Suit

    Robbins Geller Rudman & Dowd LLP and other firms that secured a $272 million settlement with Goldman Sachs Group Inc. in long-running litigation over a $6 billion residential mortgaged-backed securities offering were granted $57 million in attorneys’ fees on Monday.

  • May 2, 2016

    ECB Study Says Investors Profit Off Prerelease US Data

    Investors have reaped millions by trading on macroeconomic announcements from U.S. regulators before the data is actually released, gaining an advantage from leakage and proprietary information, a working paper released Monday by European Central Bank researchers said.

  • May 2, 2016

    KaloBios Reaches Deal To End Fight Over $8M Investment

    Bankrupt drug developer KaloBios Pharmaceuticals reached a settlement Monday with a group of investors that pumped about $8 million into the company the day before former CEO Martin Shkreli was arrested on charges of securities fraud.

  • May 2, 2016

    Trial Expert Survives UBS DQ Bid Claiming Resume Lie

    The Manhattan federal judge overseeing trustee U.S. Bank's $2 billion suit claiming UBS knowingly sold thousands of bad home loans into three securitized trusts refused Monday to disqualify the trusts' home loan expert after the Swiss bank's lawyers charged that he has lied under oath about his educational background.

  • May 2, 2016

    MagicJack Seeks To Toss Suit Claiming Stock Fraud

    MagicJack Vocaltec Ltd. urged a New York federal judge to let it seek dismissal of a proposed securities fraud class action Monday, saying an investor is just trying to buy time to shore up “thinly pled” allegations that MagicJack executives lowballed expected earnings.

  • May 2, 2016

    Developer Lacks Standing To Fight Legal Fees In Paxton Case

    A Texas appellate court on Friday nixed the latest attempt to cap legal fees for special prosecutors who are pursuing felony securities fraud charges against Texas Attorney General Ken Paxton, finding that the man who brought the suit had no standing to do so because he was not a party to it.

  • May 2, 2016

    CFPB Proposal Could Snuff Out Arbitration Even Without Ban

    The Consumer Financial Protection Bureau is not expected to outright ban arbitration requirements in consumer finance contracts when it releases a hotly anticipated proposal later this week, but the watchdog's actions could ultimately have that effect, experts say.

  • May 2, 2016

    Traders Failed To Show Jurisdiction In Libor-Rigging Case

    A New York federal judge on Friday threw out some claims against Deutsche Bank, Rabobank and other foreign banks in Libor-rigging multidistrict litigation, ruling in favor of the banks’ arguments that the court lacks jurisdiction over an amended complaint by exchange-based futures traders that includes new jurisdictional allegations and names new defendants.

  • May 2, 2016

    Mass. High Court To Gauge Reach Of Wynne In Bank Tax Case

    The Massachusetts Supreme Judicial Court is set to hear oral arguments Tuesday over a financial institution’s excise tax bill in a case that will test the reach of a recent decision by the U.S. Supreme Court that invalidated Maryland’s tax system for potential double taxation.

  • May 2, 2016

    US Seeks To Tap Convicted Fraudster’s Swiss Account

    The United States is trying to seize funds in a Swiss bank account connected to a convicted fraudster currently serving 22 years in jail following his conviction for scamming millions of dollars from investors, according to a federal court motion filed in California on Friday.

  • May 2, 2016

    Horsehead Equity Holders Granted Ch. 11 Committee

    Equity holders of Horsehead Holding Corp. got their wish Monday when a Delaware bankruptcy judge granted their request for an official committee to represent their interests in the metal processor’s Chapter 11 case, following impassioned pleas from some stockholders.

  • May 2, 2016

    SEC Settles With Exec Who Traded On Tokyo Electron Deal

    A former Silicon Valley-based executive for a Japanese semiconductor manufacturer settled with the U.S. Securities and Exchange Commission on Monday, shedding allegations that he made a quarter-million dollars by trading on insider information about Tokyo Electron Ltd.'s $252 million buy of FSI International Inc.

  • May 2, 2016

    SEC, Accountants Settle Over Athlete Investment Firm Fraud

    A Maryland-based accounting firm on Friday settled claims by the U.S. Securities and Exchange Commission that it ran inadequate surprise checks on an investment adviser to professional athletes, letting embezzlement by the firm's president go unchecked.

  • May 2, 2016

    Ruby Tuesday Hid Traffic Woes from Investors, Suit Says

    Ruby Tuesday projected an “unobtainable and unrealistic” financial outlook despite aggressive promotions from its competitors and waning casual dining traffic, which when revealed caused share prices to fall, a proposed investor class alleged Friday in a New York federal court.

  • May 2, 2016

    CFTC Approves Amendment To Post-Trade Swap Rules

    The U.S. Commodities Futures Trading Commission approved changes to the information swap dealers and other major swap participants must disclose to counterparties in transactions as part of post-trade due diligence, the agency said Monday in a statement.

  • May 2, 2016

    MLP Loses Demand For Rework Of $1B Enbridge Deal

    Pointing to the “harsh” realities of Delaware’s flexible limited partnership regulations, a vice chancellor on Friday tossed a suit challenging terms of a $1 billion pipeline buyback deal that unitholders said shifted more than $100 million in tax costs from an Enbridge Energy Co. Inc. general partnership onto public unitholders in a master limited partnership.

Expert Analysis

  • When Pre-IPO Companies Fail To Launch

    Kevin M. LaCroix

    When a company is planning an initial public offering, there is a natural tendency to focus on the public company liability exposures it will face after its offering is completed. While this effort is appropriate, the company may overlook the liability exposures it may face if it fails to complete its offering, says Kevin LaCroix of RT ProExec.

  • Developments At The NAIC Spring Meeting: Part 3

    Thomas M. Kelly

    In the last part of a three-part series highlighting some of the developments from the National Association of Insurance Commissioners' spring meeting, attorneys at Debevoise and Plimpton LLP discuss long-term care and health insurers, receivership and insolvency, the financial stability task force and valuations of the securities task force.

  • A Powerful Tool For Indiana Securities Defendants

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    A defendant faced with an Indiana Securities Division action or a private lawsuit has a variety of arguments at its disposal. Alex Gude of Bingham Greenebaum Doll LLP looks at one argument — loss causation — that has the potential to defeat many claims based on the provisions of the Indiana Uniform Securities Act.

  • OPINION: Engaging The Media May Help Your Client

    Liz Mair

    While I am confident that the decisions in Windsor and Obergefell were made on the basis of the dictates of the Constitution, I am also confident that the communications efforts undertaken gave the justices additional comfort to make the right call, and ensured that these decisions were not treated as a Roe v. Wade redux, says Liz Mair, former online communications director for the Republican National Committee and president of Mair Strategies.

  • The Madoff Court's Focus On Intent Of Transferees

    Maurice Horwitz

    The interesting twist in a New York federal judge’s recent fraudulent transfer decision in the Madoff case is that it was the actual knowledge and intent of the transferees that mattered more and were necessary, therefore, to avoid the Bankruptcy Code safe harbors, says Maurice Horwitz of Weil Gotshal & Manges LLP.

  • Leveraging In-House Attys' Reporting Obligations

    Michael W. Peregrine

    The Michigan Attorney Grievance Commission’s recent decision not to pursue six former General Motors in-house counsel for failure to disclose the safety risks of an alleged defective product provides a compelling platform from which boards and senior management can discuss the “reporting up” and “out” obligations of in-house counsel, and how those obligations can best support effective risk oversight practices, say Michael Peregrin... (continued)

  • Spoofing And The Limit-Order Book

    John Montgomery

    Given the importance of “intent” in the statutory language outlawing “spoofing,” expert analysis of a defendant’s trading patterns may contribute evidence regarding the defendant’s intentions. An exchange’s limit-order book inevitably reflects the strategic behavior of many traders, says economist John Montgomery of Navigant Consulting Inc.

  • Using The New Federal Rules To Rein In Discovery

    Martin J. Healy

    The 2015 amendments to the Federal Rules of Civil Procedure present a fertile opportunity for defendants to leverage the rules' renewed focus on reasonableness and proportionality to rein in rampant discovery abuse. Courts' application of the amended rules has already shown promise in this regard, say Martin Healy and Joseph Fanning of Sedgwick LLP.

  • Brokaw Act Could Broaden Change-Of-Control Triggers

    Laurent Alpert

    The recently introduced “Brokaw Act” proposes changes to the rules governing the reporting of ownership in U.S. public companies and would expand the definition of “beneficial owner.” But as the definition of ownership expands, the definition of change of control in many indentures may expand as well — sometimes in ways the drafters may not have anticipated, say Laurent Alpert and Robert Gruszecki of Cleary Gottlieb Steen & Hamilton LLP.

  • Dentons: A New Kind Of Network?

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    Dentons is two different law firm networks in one. So even if the Swiss verein structure should eventually fail and Dentons is forced to operate as a network of independent law firms, it could still be a significant market force, says Mark A. Cohen, a recovering civil trial lawyer and the founder of Legal Mosaic LLC.