Securities

  • July 28, 2016

    Transfers Via Bank Outside Of Safe Harbor, Says 7th Circ.

    In an opinion released Thursday, the Seventh Circuit ruled that a Bankruptcy Code safe harbor provision forcing trustees to honor transfers to securities and financial institutions doesn't protect transfers that only move through those institutions, reversing the judgment of a lower court in the bankruptcy of a Pennsylvania racetrack.

  • July 28, 2016

    Fitbit Shareholder Suits Remanded To State Courts

    A California federal judge on Wednesday sent a pair of proposed shareholder class actions accusing Fitbit Inc. of lying about its fitness tracking technology both before and after its initial public offering and inflating its stock prices, back to state court.

  • July 28, 2016

    German Prosecutors Drop Ex-Porsche Exec Fraud Appeal

    Prosecutors in Stuttgart, Germany, said on Thursday that they would abandon their attempt to revive claims that two former Porsche SE executives misled investors in the lead-up to an unsuccessful bid to takeover Volkswagen AG.

  • July 27, 2016

    Plaintiffs In 2 States Drop EB-5 Scam Suits Over Jay Peak

    Two proposed class action suits claiming Raymond James & Associates was involved in a fraudulent scheme targeting EB-5 investors in Vermont's Jay Peak ski resort were voluntarily dismissed without prejudice by the plaintiffs in the Green Mountain State and Florida in the last week.

  • July 27, 2016

    SEC Gives IEX No-Action Letter To Guard Agents’ Anonymity

    The U.S. Securities and Exchange Commission on Tuesday sent a no-action letter to exchange startup IEX Group, promising it won’t recommend enforcement action against the newly approved market platform when trades are executed anonymously.

  • July 27, 2016

    CFTC Proposes Amendment To Foreign Broker Registration

    The U.S. Commodity Futures Trading Commission announced a proposal Wednesday to amend and simplify its rules for the registration of foreign commodities intermediaries, exempting foreign brokers from registration if they are acting solely on behalf of international customers.

  • July 27, 2016

    $6B In Lyondell Clawback Claims Wrongly Nixed, Judge Finds

    A New York district judge on Wednesday overturned a bankruptcy court's decision to bar the claims of unsecured creditors of Lyondell Chemical Co., who claimed Lyondell's CEO engaged in an intentional fraudulent transfer in connection with a leveraged buyout and sought to claw back $6.3 billion in distributions to shareholders through the LBO.

  • July 27, 2016

    SEC Bars Adviser Over Brokerage Conflicts On 2nd Look

    The U.S. Securities and Exchange Commission on Wednesday issued an opinion that upheld an administrative law judge’s penalty against an investment adviser who directed bond transactions to his former broker-dealer in order to reap commissions, but increased the span of his industry bar and ordered him to cough up his profits.

  • July 27, 2016

    Bernstein Litowitz Rips Subpoena In Insider Trading Row

    Bernstein Litowitz Berger & Grossmann LLP, which represents investors alleging that Valeant Pharmaceuticals International Inc. illegally tipped Pershing Square Capital Management LP to a proposed merger, urged a California federal judge on Tuesday to reject Pershing's subpoena, calling it a bid to “distract” the firm.

  • July 27, 2016

    Broker Pleads Guilty To Role In $131M Investment Scheme

    A securities broker pled guilty in New York federal court on Wednesday to securities fraud in relation to a scheme that bilked investors of lighting company ForceField Energy Inc. out of approximately $131 million, the U.S. Department of Justice said in a statement.

  • July 27, 2016

    BofA Should Face Fraud Suit, Tutor Perini Tells 1st Circ.

    Bank of America NA had a duty to warn construction giant Tutor Perini Corp. that a $283 million auction-rate securities investment was at risk of falling off a Grand Canyon-esque cliff, the construction company told the First Circuit on Wednesday in hopes of reviving the suit.

  • July 27, 2016

    Ex-JPMorgan Banker Blames Dad For Insider Trading Scheme

    An attorney for former Perella Weinberg Partners and JPMorgan Chase & Co. banker Sean Stewart on Wednesday told the Manhattan federal jury in his insider trading trial that the ex-investment banker's father betrayed his son by trading on names of companies he mentioned in conversation.

  • July 27, 2016

    Fenwick Nabs Ex-DOJ Fraud Unit Prosecutor In San Francisco

    Fenwick & West LLP gave its white collar defense and securities practices a boost on Wednesday with the addition of a former U.S. Department of Justice attorney in San Francisco.

  • July 27, 2016

    Deutsche Bank In Talks With DOJ To Settle RMBS Claims

    Deutsche Bank is negotiating with the U.S. Department of Justice to settle claims it misled consumers into buying risky mortgage-backed securities in the lead-up to the financial crisis in 2007, according to a quarterly earnings report it filed with the U.S. Securities and Exchange Commission on Wednesday.

  • July 27, 2016

    SEC Sues To Halt Fraudulent Amusement Park Bond Scheme

    The U.S. Securities and Exchange Commission filed suit in Georgia federal court Wednesday against three executives, accusing them of diverting $5.6 million in investor funds from the $675 million resort and amusement park complex they planned to build outside of Atlanta.

  • July 27, 2016

    SEC Snags $68M Judgment Over EB-5 Investor Scam

    Luca International Group LLC agreed Tuesday to a $68 million judgment to end a U.S. Securities and Exchange Commission suit accusing the company and its CEO of running a $68 million "Ponzi-like" scheme that targeted Chinese Americans and Chinese nationals seeking green cards as EB-5 investors.

  • July 27, 2016

    Alberta Proposes Crowdfunding Rules To Spur Investment

    Alberta regulators have introduced crowdfunding limits and established a prospectus exemption for businesses raising small amounts of capital, hoping that easing government restrictions will jump-start fundraising campaigns for the Canadian province’s young companies.

  • July 27, 2016

    Ex-Atty Doing 16 Years For Microcap Fraud Loses 2nd Appeal

    The Tenth Circuit on Tuesday rejected a second appeal by a former lawyer serving 15 years and eight months in prison for a $43 million penny stock manipulation scheme, saying he hadn't shown that forfeiting certain assets left him unable to hire an attorney.

  • July 27, 2016

    EU Offers €350K For Major Fintech Study

    The European Commission has opened a tender to study the multibillion-dollar fintech sector and how it will improve, unbalance or otherwise affect all aspects of financial regulation, as part of the body's sprawling new remit.

  • July 26, 2016

    4 Traits Of The Top Litigation Firms

    All litigation powerhouses boast talented trial lawyers, but the 20 firms at the top of their game don't just rely on their litigators. Here, we talk about the four traits that led the elite of the Litigation Powerhouses to become the go-to firms for bet-the-company cases.

Expert Analysis

  • Clayton Act Takeaways From Tullett Prebon-ICAP Deal

    Michael B. Bernstein

    The U.S. Department of Justice's recent settlement with ICAP and Tullett Prebon — restructuring their proposed $1.5 billion transaction — serves as an important reminder that Clayton Act Section 8 is not only a compliance issue, but also an important consideration in mergers and acquisitions and other areas that may affect the composition of a board of directors, say Michael Bernstein and Francesca Pisano of Arnold & Porter LLP.

  • Bridging The Divide Between Banks And Marketplace Lenders

    Anthony R.G. Nolan

    The increasingly close relationship between banks and marketplace lending platforms, as well as the uncertainty surrounding state usury limits, have led to speculation that marketplace lenders may ultimately obtain bank charters. A fundamental issue is whether the equity and institutional investment markets will provide a stable long-term source of funding for the industry, say attorneys with K&L Gates LLP.

  • OPINION: Our Juries Are Being Circumvented

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    The Freddie Gray case and a recent U.S. Supreme Court decision demonstrate how the government replaces juries, removing the jury as an important decision maker in the community and as a check on governmental power — roles that are especially important in these times, says Professor Suja A. Thomas of the University of Illinois College of Law.

  • Active Vs. Passive Investing: The Struggle Of 2 Agencies

    Ethan A. Klingsberg

    Recent efforts by the U.S. Department of Justice and the U.S. Securities and Exchange Commission to determine where to draw the line between active and passive investing will have an immediate impact on hedge fund activism. The results of the two agencies’ efforts — in pursuit of different policy objectives — will become increasingly tricky and significant, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Legal Aid, Meet Legal Tech

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    Because there will never be enough free lawyers to satisfy demand from low-income Americans, we need to leverage technology to allow the legal expertise of one lawyer to reach hundreds or thousands of clients at once, say Jonathan Petts and Rohan Pavuluri, co-founders of startup nonprofit Upsolve.

  • When Minority Stockholders Take Control

    Samuel Waxman

    It is a mistake to assume that a stockholder that does not own 51 percent of a company’s equity is free from the constraints that apply to controlling stockholders. Recent Delaware cases provide key insight into when minority stockholders can be deemed controlling stockholders, and the level of judicial review that applies to agreements with affiliates of the controlling stockholders, say attorneys with Paul Hastings LLP.

  • Merger Price Vs. Discounted Cash Flow: A Study Of Dell

    Boris J. Steffen

    Rejecting the contention by Dell Inc. that the final merger consideration was the best evidence of its fair value, the Delaware Chancery Court recently concluded that the fair value of Dell's common stock at the time it was taken private was approximately 28 percent higher than the final merger price. RSM US LLP's Boris Steffen, who frequently serves as a testifying expert in M&A litigation, dissects the court's analysis and highli... (continued)

  • Testing The UBE: Portable But Inaccurate Bar Exam Scores

    Suzanne Darrow-Kleinhaus

    While there is not much that is new about the uniform bar exam’s components, what is new is that where you take the bar exam may make the difference between passing and failing. Half of the score depends on the strength of the applicant pool in the jurisdiction where the candidate wrote the exam, which may lead to “UBE shopping,” says Suzanne Darrow-Kleinhaus, director of bar programs at Touro Law Center.

  • Latest FCPA Deal Validates Pilot Program

    William Steinman

    The U.S. Department of Justice's recent decision to close its Foreign Corrupt Practices Act investigation of Johnson Controls without charges provides a glimmer of hope that self-disclosure under the so-called pilot program might just be worthwhile, says William Steinman of Steinman & Rodgers LLP.

  • Testing The UBE: Missouri Benefits From Uniform Bar Exam

    Jim Nowogrocki

    We in Missouri do not take lightly to new trends or frothy ideas. Yet, the uniform bar exam has allowed us to meet the challenges of an increasingly mobile legal profession and the changing needs of clients, and to ensure that a newly admitted attorney has the knowledge, character and fitness to practice in the Show-Me State, says Jim Nowogrocki, president of the Board of Law Examiners in Missouri — the first state to adopt the UBE.