Securities

  • October 22, 2014

    Feds Seek Leniency For Cooperator In SAC Capital Probe

    New York federal prosecutors are seeking leniency for a former mutual fund manager who pled guilty to trading on insider information from a Yahoo Inc. executive, citing her cooperation in an investigation that led to a $1.8 billion settlement with SAC Capital Advisors LP, according to a recent filing by her attorney.

  • October 22, 2014

    New Mortgage Rules Complicate Fannie, Freddie Endgame

    Recent moves by federal regulators to increase sales of mortgages to Fannie Mae and Freddie Mac could further dampen hopes for a resurgence of private capital in the U.S. housing market, and make it more difficult to wind Fannie and Freddie down, policymakers and experts said.

  • October 22, 2014

    TPG Paid Top Dollar In $394M Gelson's Buy, Arden Says

    Arden Group Inc. on Wednesday urged a California judge to toss a shareholder derivative suit alleging TPG Capital LP's $394 million purchase of Arden's luxury supermarket chain Gelson's stiffed shareholders to enrich Arden's board, arguing boardmembers got sole-bidder TPG to pay over market value.

  • October 22, 2014

    FDIC, Citi Settle 9th Circ. Appeal Over Colonial Bank Failure

    Citigroup Global Markets Inc. has reached a settlement agreement with the FDIC in a Ninth Circuit appeal alleging a number of banks spurred on Colonial Bank's failure by selling it poor-quality mortgage-backed securities, and the bank insurer said Wednesday it expects Bank of America Corp. to exit the suit shortly as well.

  • October 22, 2014

    SEC Plans To Reject BlackRock's Request For New ETFs

    The U.S. Securities and Exchange Commission said Tuesday that it plans to deny requests by BlackRock Inc. and Precidian Investments to introduce a new type of actively managed exchange-traded fund that wouldn't be required to disclose its portfolio holdings on a daily basis.

  • October 22, 2014

    Stanford Files Pro Se Appeal In $7B Ponzi Scheme Conviction

    Disgraced Texas tycoon Robert Allen Stanford on Tuesday urged the Fifth Circuit to overturn his 110-year prison sentence for a $7 billion Ponzi scheme, arguing in an appeal in which he is representing himself that federal authorities didn't have jurisdiction over his bank.

  • October 22, 2014

    Credit Suisse Can't Duck $1B RMBS Suit, Appeals Court Says

    A New York appeals court on Tuesday rebuffed a Credit Suisse Group AG subsidiary’s bid to escape a residential mortgage-backed securities lawsuit that claims the bank failed to repurchase toxic loans that cost investors $1 billion, finding the case is not time-barred.

  • October 22, 2014

    2nd Circ. Tosses Argentina's Appeal Of $539M Payment Block

    The Second Circuit on Wednesday dismissed Argentina's appeal of a New York federal judge's order blocking a $539 million payment to bondholders via Bank of New York Mellon, finding that it doesn't have jurisidiction because the order appealed from was a clarification rather than a modification of prior rulings.

  • October 22, 2014

    Ex-SEC General Counsel Joins Sidley Austin

    The U.S. Securities and Exchange Commission's general counsel and international affairs chief counsel has left the regulator for a partner position at Sidley Austin LLP.

  • October 22, 2014

    SAC Founder Eyes Ex-Wife's Emails With Kasowitz Atty

    SAC Capital Advisors LP founder Steven Cohen is seeking purportedly confidential emails between his ex-wife and a Kasowitz Benson Torres & Friedman LLP attorney as part of a legal dispute over Cohen’s 1990 divorce, according to a Wednesday New York federal court filing.

  • October 22, 2014

    Nomura Says FHFA Can't Back Up Timeline In MBS Suit

    Nomura Holding America Inc. told a New York federal court Tuesday that the Federal Housing Finance Agency can’t back up its contention that it was oblivious before 2008 that Fannie Mae and Freddie Mac were sold toxic residential mortgage-backed securities — a claim that would sink the bank's statute of limitations defense.

  • October 22, 2014

    Would-Be Dark Pool Marketplace Files Broadside Against SEC

    Automated Matching Systems Exchange LLC, a would-be virtual marketplace for automated dark pools, continued its war to get official recognition Monday with a brief in South Dakota federal court requesting a court-ordered conference with SEC staff it says have shown a “lack of training and experience.”

  • October 22, 2014

    Amid $1B IPO, REIT Founder Accuses Ex-Partner Of Fraud

    The founder of a New York real estate investment trust gearing up to go public for $1 billion again sued his former business partner in New York federal court earlier this month for allegedly conspiring to ruin him through unauthorized access to the REIT's network, extortion and misrepresentation of the REIT to other parties.

  • October 22, 2014

    SEC Hints At Weak Hand With First HFT Manipulation Penalty

    The U.S. Securities and Exchange Commission sent high-frequency trading firms a warning shot last week when it brought its first market manipulation case against one of their own, but attorneys say the relatively slim penalty suggests the agency's case may have been more of a dud than a bombshell.

  • October 22, 2014

    SEC Narrowly OKs Risk-Retention Rules Amid Fiery Dissents

    A divided U.S. Securities and Exchange Commission passed final rules on Wednesday requiring firms to retain a stake in the asset-backed securities they issue, but not before two Republican members blasted the rule-making as a capitulation to banking regulators and a missed chance for meaningful reform.

  • October 22, 2014

    Wyly Says Ch. 11 Should Block SEC Asset Freeze

    Lawyers for billionaire investor Sam Wyly on Wednesday told a Texas bankruptcy judge his voluntary Chapter 11 petition protects his estate from the U.S. Securities and Exchange Commission’s attempt to secure an asset freeze in New York federal court.

  • October 22, 2014

    BGC Partners Goes Hostile With $675M Bid for GFI Group

    BGC Partners Inc. said Wednesday it has launched a $675 million hostile takeover bid on for rival brokerage and trade services provider GFI Group Inc. after talks between the companies failed to result in a deal.

  • October 22, 2014

    2nd Circ. Affirms Ex-Mayer Brown Partner's Refco Fraud Rap

    The Second Circuit on Wednesday upheld the conviction and one-year sentence of former Mayer Brown LLP partner Joseph Collins, who was charged with aiding client Refco Inc.’s $1 billion accounting fraud.

  • October 21, 2014

    FINRA Slams Ex-Deputy Director's Discrimination Claims

    The Financial Industry Regulatory Authority urged a Florida federal judge on Monday to throw out wrongful termination and discrimination allegations from a former deputy regional director, criticizing her job performance and arguing that her position was eliminated as part of a companywide staff reduction.

  • October 21, 2014

    Paramount Burned 'Mean Girls' Investors, Trial Judge Hears

    Paramount Pictures Corp. hoodwinked a group of investors into bankrolling a largely unsuccessful slate of movies in 2004 that included the surprise hit “Mean Girls,” a plaintiffs attorney said in New York federal court Tuesday at the start of a bench trial.

Expert Analysis

  • Know The Collateral Consequences Of Financial Reg Action

    Eben P. Colby

    Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • Canada's Proposed Takeover Bid Rules Are Target-Friendly

    Ralph Shay

    Newly proposed amendments to Canada's takeover bid legislation would address long-standing concerns that the current regulatory regime tilts the playing field too far in favor of hostile bidders, says Ralph Shay of Dentons Canada LLP.

  • The Impact Of Boilermakers Continues To Be Felt

    Celia Taylor

    Relying on and further strengthening the import of Boilermakers Local 154 Retirement Fund v. Chevron Corp., a recent decision in a shareholder suit involving Chemed Corp. shows the power of boards to have their say as to where intracorporate litigation will take place and who will pay for it, says Celia Taylor of Sturm College of Law at the University of Denver.

  • 10 Things You Must Know Before Engaging In Crowdfunding

    Eliza Sporn Fromberg

    "Accredited crowdfunding" platforms offer the tantalizing possibility of raising funds with the click of a button, but it is vital to consider the regulatory scheme under which the platform operates and its managerial and financial resources, among other factors, say Eliza Sporn Fromberg, counsel at Day Pitney LLP, and Norbert Mehl, CEO of Global i Ventures.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • Novel Theory In Wyly Case Could Change SEC Disgorgement

    Bruce M. Bettigole

    The Southern District of New York ruling that Dallas billionaire Sam Wyly and the estate of his late brother are liable for the disgorgement of unpaid taxes in connection with securities fraud violations has set an important precedent in determining the monetary remedies the U.S. Securities and Exchange Commission may seek, say attorneys with Sutherland Asbill & Brennan LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.

  • The Root Cause Of Skyrocketing Defense Costs

    Douglas W. Greene

    The costs of defending securities class actions continue to increase, and the root cause is the convergence of two related factors — the prevailing view that securities class actions are “bet the company” cases, and the consequent reflexive hiring of BigLaw firms, says Douglas Greene of Lane Powell PC.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.