Securities

  • October 31, 2014

    Atossa Beats Claims It Duped Investors In $4M Offering

    A Washington federal court on Friday dismissed a proposed class action alleging breast cancer detection device maker Atossa Genetics Inc. misled investors into buying $3.7 million worth of shares in an initial public offering, saying the plaintiffs failed to adequately prove the company had acted unlawfully.

  • October 31, 2014

    Paramount Smacks Down 'Mean Girls' Investors' Fraud Suit

    A New York federal judge on Thursday tossed a suit brought against Paramount Pictures Corp. by a group of investors who said that the studio tricked them into bankrolling a largely unsuccessful slate of movies in 2004 that included the surprise hit "Mean Girls," saying that the evidence didn't support the claims.

  • October 31, 2014

    Madoff Victims Can't Look To Trustee To Save Picower Suit

    The judge presiding over the liquidation of Bernard L. Madoff’s defunct firm refused on Thursday to let several investors suing the estate of Ponzi scheme beneficiary Jeffry Picower in Florida take discovery in an attempt to salvage their claims from the trustee winding down the Madoff estate.

  • October 31, 2014

    Microsoft Again Urges Judge To Nix Suit Over $732M EU Fine

    A group of Microsoft Corp. executives asked a Washington federal judge to toss a derivative suit alleging they breached their fiduciary duties by willfully violating a European Union antitrust settlement and incurring a $732.2 million fine, saying the plaintiffs' opposition failed to show the executives knowingly breached their duties.

  • October 31, 2014

    2nd Circ. Denies UBS Arbitration Bid In Facebook IPO Spat

    A split Second Circuit on Friday rejected UBS Securities LLC's bid to revive a $350 million arbitration over Nasdaq OMX Group Inc.'s alleged breach of an agreement for mishandling Facebook Inc.'s initial public offering in May 2012.

  • October 31, 2014

    Activism Appeal Still Rising As Returns Outlook Tapers

    Activist investors are expected to continue their tear through the marketplace over the next two years even as they set their sights on lower returns, according to recent data gathered by Schulte Roth & Zabel LLP and Mergermarket.

  • October 31, 2014

    Global Regulators Want More Stable Funding At Banks

    Global banks are going to be forced to hold sufficient cash or assets that can be quickly turned into cash to cover their potential losses over the course of a year under a rule finalized by global banking regulators Friday.

  • October 30, 2014

    Investors Blast OCZ Trustee's Bid To Halt $7.5M Settlement

    The lead plaintiffs in a shareholder class action against bankrupt OCZ Technology Group Inc.’s former brass in California federal court blasted on Thursday an effort by the estate’s liquidation trust to halt consideration of a $7.5 million settlement by asking the Delaware bankruptcy court to enforce Chapter 11’s automatic stay.

  • October 30, 2014

    Citi Slashes Quarterly Earnings By $600M Amid Forex Probes

    Citigroup Inc. said in a Thursday regulatory filing that it has cut its previously reported quarterly net income by $600 million due to massive legal bills stemming from regulatory investigations while detailing, in another filing, probes into the alleged rigging of foreign currency exchange markets.

  • October 30, 2014

    American Realty's Accounting Woes Spark 2 NY Class Actions

    A day after American Realty Capital Properties Inc. revealed accounting irregularities in recent earnings reports, the real estate investment trust was hit with two securities class actions in New York federal court Thursday alleging it misled investors about its financial health ahead of a $1.6 billion public equity offering in May.

  • October 30, 2014

    Ex-Chairman Of Korean Shipping Co. Sentenced To 6 Years

    The former chairman of South Korean shipping conglomerate STX Group was sentenced Thursday to six years in prison for illegally moving funds around and misstating the company's finances to the tune of $556 million, according to reports, a year after one of STX's units hit bankruptcy in the U.S.

  • October 30, 2014

    SEC Hits InterMune Exec With Insider Trading Suit

    The U.S. Securities and Exchange Commission on Thursday filed suit against a former director of pharmaceutical company InterMune Inc., alleging he and his friends made more than $1 million using insider information to trade on the news of European regulators’ approval of a lung disease drug.

  • October 30, 2014

    NJ Court Boots Atty From Derivative Suit Due To Conflict

    Fleischer Fleischer & Suglia and one of its partners were disqualified from a derivative shareholder suit accusing an insurance brokerage of defaulting on loans, according to a New Jersey Superior Court order filed last week, due to the firm's past representation of the brokerage.

  • October 30, 2014

    9th Circ. Revives Amgen ERISA Suit After High Court Remand

    The Ninth Circuit on Thursday revived a putative Employee Retirement Income Security Act class action against Amgen Inc. for a second time, after the U.S. Supreme Court vacated its first ruling, saying the high court's ruling doesn't shield Amgen from liability for a dip in the company's stock price.

  • October 30, 2014

    SEC, FINRA Warn Investors On Penny Stock Hype

    Some so-called penny stocks might be nothing more than dormant shell companies, regulators warned investors Thursday, in just the latest reminder that the low-cost shares might not be all that they seem.

  • October 30, 2014

    Convicted Ex-Pfizer Manager Won't Testify In Off-Label Suit

    A former Pfizer Inc. sales manager who was convicted in 2009 for illegal drug marketing can’t be forced to testify in a class action suit alleging the pharmaceutical giant concealed a broader fraud scheme from investors, a New York federal judge ruled Thursday.

  • October 30, 2014

    Barclays Takes $800M Provision Related to Forex Probes

    Barclays PLC announced Thursday that it has taken a £500 million ($800.3 million) provision in the third quarter related to government investigations into its foreign exchange trading activities, joining another bank that announced a large set-aside this week.

  • October 30, 2014

    Cartica Takes CorpBanca-Itau Merger Challenge To 2nd Circ.

    Activist investor Cartica Management LLC on Wednesday sent its shareholder challenge to CorpBanca SA and Itau Unibanco Holding SA's proposed $3.7 billion merger to the Second Circuit, appealing the suit’s September dismissal in a ruling that found only purchasers or sellers can attempt such injunctions.

  • October 30, 2014

    DOJ, AllQuest's Doc Dispute In $264M FCA Suit Rages On

    The U.S. Department of Justice and AllQuest Home Mortgage Corp. traded barbs in Texas federal court Wednesday in a discovery war stretching back to May in which each seeks to compel the other to cough up loan files in a $264 million False Claims Act suit.

  • October 30, 2014

    Tax Shelter Funds Ask Court To Approve Loss Deductions

    Two partnerships found to have operated illegal tax shelter funds asked a California federal court Wednesday for summary judgment approving the deductibility of losses and interest expenses incurred in investments in bond-linked issue premium structures.

Expert Analysis

  • Application Of California’s Long-Arm Statute In M&A

    Louis R. Dienes

    Section 2115 of the California Corporations Code can complicate a deal involving a private target that has a significant presence in California but is incorporated in another jurisdiction, such as Delaware. Particularly for private equity and venture capital-backed corporations that are deemed to be quasi-California corporations, Section 2115 has the potential to cause problems, says Louis Dienes of Locke Lord LLP.

  • Shouldn’t FINRA Listen To Commissioner Piwowar?

    Michael K. Freedman

    Although U.S. Securities and Exchange Commission Commissioner Michael Piwowar’s recent remarks about due process in enforcement matters may be a minority view, the Financial Industry Regulatory Authority should take heed, especially given FINRA’s troubling practice of rule-making by interpretation and circumventing the formal processes designed to ensure due process, say Michael Freedman and Gregory Amoroso of Sutherland Asbill & Brennan LLP.

  • Stretching Singles Into Doubles: Alternative PE Exits

    Kenneth R. Koch

    Not every private equity investment is a home run. However, there are a variety of methods that can be employed to exit some of these investments gracefully and, in the process, perhaps stretch a single to a double, say Kenneth Koch and Stephen Gulotta Jr. of Mintz Levin Cohn Ferris Glovsky and Popeo PC.

  • 2 New Cases Temper Post-Halliburton Expectations

    John E. Clabby

    After the U.S. Supreme Court ruled in Halliburton Co. v. Erica P. John Fund, securities fraud defense counsel understand that they have received a new weapon, namely an earlier opportunity to show that the alleged misstatement had no impact on stock price. But two recent cases have tempered expectations as to this new weapon’s power, says John Clabby, of counsel at Carlton Fields Jorden Burt LLP and a former assistant U.S. attorney.

  • 10 Key Points From The Final Risk Retention Rule

    Dan Ryan

    The final asset-backed securities risk retention rule effectively broadens the original proposal’s exemption from risk retention requirements for qualified residential mortgages, abandoning the proposal’s most stringent requirements to obtain exemption. It may, however, be too soon for the mortgage industry to celebrate, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • A Look At The First Ebola-Related Securities Lawsuit

    Kevin M. LaCroix

    It is obvious that there is a segment of the investment marketplace convinced there is money to be made out of the Ebola outbreak by trying to pick the winners on the Ebola drug derby. Among the companies that got caught up in the frenzy was iBio Inc., says Kevin LaCroix of RT ProExec.

  • The Legal Professions’ Curious Under-Use Of 2nd Opinions

    Judge Wayne D. Brazil

    As conscientious professionals who are required to address problems with notoriously elusive dimensions, lawyers should consider securing second opinions in a much wider array of circumstances than has been the norm, says Judge Wayne Brazil, a neutrual with JAMS and former magistrate judge in the U.S. District Court for the Northern District of California.

  • China's New Disclosure Rules And Staying Off The Blacklist

    David A. Livdahl

    Companies on either the Noncompliance Blacklist or the Serious Violation Blacklist under China’s new disclosure system will face credit restrictions, government procurement restrictions or bars, and restricted eligibility to bid on projects and purchases of state-owned land. We suggest that companies designate specific employees to be responsible for keeping the required records, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.

  • The RMBS Working Group: Is There Life After Eric Holder?

    Andrew W. Schilling

    Attorney General Eric Holder’s planned exit and a string of other high-level departures could lead some to believe that the U.S. Department of Justice’s aggressive pursuit of financial fraud cases may be behind us. However, there is evidence to suggest that the Residential Mortgage-Backed Securities Working Group may in fact be ramping up rather than winding down, say Andrew Schilling and Ross Morrison of BuckleySandler LLP.

  • How Esquenazi Will Play Out In Emerging Economies

    Jim Dowden

    Given the U.S. Supreme Court’s denial of a writ of certiorari in United States v. Esquenazi, it is important to digest the import of the Eleventh Circuit’s opinion and how it will play out in emerging economies. Companies with operations in these markets are at the mercy of a number of factors that weigh heavily in favor of state-owned entities qualifying as “instrumentalities,” say Jim Dowden and Samad Pardesi of Ropes & Gray LLP.