• October 5, 2015

    BREAKING: Supreme Court Rejects Newman Insider Trading Appeal

    The U.S. Supreme Court on Monday declined to hear the federal government’s appeal of the landmark Newman decision on insider trading, rejecting the opportunity to rule on the thorny and divisive definition of what constitutes the crime.

  • October 2, 2015

    SEC Judge Says Ex-Nursing Home CEO Owes $4.2M For Fraud

    A U.S. Securities and Exchange Commission judge on Friday ordered a former top executive at a private equity-backed assisted living provider to pay $4.2 million after it allegedly listed fake occupants at its residences in order to meet lease requirements.

  • October 2, 2015

    Feds Call In Mine Safety Attys As Blankenship Trial Begins

    West Virginia’s U.S. attorney has conscripted two Department of Labor mine safety lawyers as special prosecutors for the trial of former Massey Energy Co. CEO Don Blankenship, new filings revealed Thursday, as jury selection began on charges he mandated safety shortcuts before a 29-death mine explosion.

  • October 2, 2015

    Barnes & Thornburg Wants Rest Of Malpractice Suit Nixed

    Barnes & Thornburg LLP told an Illinois federal court Friday that investment adviser The Nutmeg Group LLC’s former owner can’t make the remaining claims in his malpractice suit timely by alleging that the firm’s conduct is ongoing, urging the court to toss the rest of the suit.

  • October 2, 2015

    EU Securitization Rules Could Unlock More Investment

    The European Union’s proposed capital rules aimed at reviving securitization — part of a wider effort to stimulate more bank lending and cross-border investment — are being cautiously welcomed by capital markets attorneys, who hope the stigma that such products helped cause the financial crisis is finally easing.

  • October 2, 2015

    Resource Extraction Rules Coming Next Summer, SEC Says

    The U.S. Securities and Exchange Commission told a Massachusetts federal court Friday that it plans to finalize by next summer new rules requiring oil, gas and mining companies to disclose payments to foreign governments, but that the process won’t be easy and is fraught with uncertainty.

  • October 2, 2015

    Kaplan Fox, Kahn Swick To Lead Eletrobras Investor Suit

    A New York federal judge consolidated two putative investor class actions against Brazilian state-run power company Eletrobras on Thursday, naming Kaplan Fox & Kilsheimer LLP and Kahn Swick & Foti LLC lead counsel.

  • October 2, 2015

    Audit Firm Watchdog Scores First Admission Of Wrongdoing

    The regulator of public company auditors signaled a tougher approach Friday when it announced it had required an auditor to admit wrongdoing as part of a settlement with the agency.

  • October 2, 2015

    Miller Energy Files For Bankruptcy Amid SEC Investigation

    Oil and gas driller Miller Energy Resources Inc. filed for bankruptcy on Thursday in Alaska amid an ongoing fraud investigation by securities regulators, saying that it has a prepackaged Chapter 11 plan in place with second lien noteholders Apollo Investment Corp. and affiliates of Highbridge Capital Strategies.

  • October 2, 2015

    VW To Face German Investor Actions, Litigation Funder Says

    Bentham Europe Ltd. has charged out of the gates to fund impending German shareholder litigation against Volkswagen Group over its failure to tell investors about its practice of installing software in vehicles to avoid complying with emissions standards, the company said Thursday.

  • October 2, 2015

    Leave In-House Court Spat To Judiciary, SEC Republicans Say

    The two Republican members of the U.S. Securities and Exchange Commission tweaked the agency slightly Friday when they said it is best to leave questions around the constitutionality of its in-house court to the federal judiciary rather than have the commission itself sort the issue.

  • October 2, 2015

    Marketplace Lenders Say Risk-Retention Rules Aren't Needed

    Marketplace lenders warned federal regulators that putting strict risk-retention rules on the industry could lead to lower loan volumes without adding any greater protection to investors, consumers or the broader financial system.

  • October 2, 2015

    CFTC Says Judge Needn't Recuse Over Trader's Fear Claims

    A former trader convicted of threatening to murder regulators is battling the U.S. Commodity Futures Trading Commission over a bid for the recusal of a New York federal judge he says is afraid of him, with the CFTC recently saying the trader has already tried to get the judge tossed for frivolous reasons.

  • October 2, 2015

    BB&T Appeals $500M Foreign Tax Credit Denial To High Court

    BB&T Corp. has asked the U.S. Supreme Court to weigh in on a dispute over nearly $500 million in foreign tax credits, taking aim at the Federal Circuit’s finding that a multibillion-dollar financing transaction involving Barclays Bank PLC lacked economic substance.

  • October 2, 2015

    SEC Takes Second Shot At Conflict Minerals Rule In DC Circ.

    The U.S. Securities and Exchange Commission asked the D.C. Circuit Friday to revive a requirement that companies publicly disclose if certain products contain minerals mined in Central African warzones, saying the court’s recent disposal of the rule undermines the government’s ability to regulate what kinds of information are available to the public.

  • October 2, 2015

    EB-5 Investors Plead To Intervene In $136M Visa Fraud Case

    A group of foreign residents who sought to obtain green cards by each investing $500,000 with companies that are now facing fraud claims in a $136 million lawsuit moved on Thursday to intervene in the case, asking a Washington federal court to order that their money be returned.

  • October 2, 2015

    Ashurst Nabs Capital Markets Partner For Hong Kong Office

    Ashurst LLP announced Friday that it has bolstered its debt capital markets team with a new partner with international capital markets expertise from Linklaters LLP, who will join the firm's Hong Kong-based securities and derivatives group.

  • October 2, 2015

    CFTC Muscles Its Way To New Regulatory Turf

    The U.S. Commodity Futures Trading Commission in recent weeks has used its enforcement arm to plow new turf for the agency, bringing a series of first-of-their-kind cases over bitcoin platforms and swaps regulations put in place after the Dodd-Frank Act.

  • October 2, 2015

    Velti Investors' Accountant, Underwriter Claims Thrown Out

    A California federal judge has dismissed Velti PLC investors’ claims that accountants and underwriters working with the mobile-advertising company concealed its poor financial prospects, saying the complaint swung and missed at the “exacting pleading requirements” for such securities suits.

  • October 2, 2015

    Grant Thornton Firms Pay SEC Over Independence Violations

    Grant Thornton International Ltd. member firms in India and Australia have agreed to pay the U.S. Securities and Exchange Commission $365,085 in disgorgement and penalties for independence violations related to firm partners in Mauritius, the SEC announced Thursday.

Expert Analysis

  • Lehman Ruling Offers Much Needed Guidance On 'Loss'

    Fred Sosnick

    A Southern District of New York decision in a Lehman Chapter 11 suit, holding that Intel Corp.’s loss calculation resulting from a failed transaction was appropriate, is significant both because of the dearth of judicial interpretation of International Swaps and Derivatives Association closeouts, and because it affirms the general understanding that a nondefaulting party has broad discretion in calculating “loss,” say attorneys wit... (continued)

  • Disclosure-Only Settlements Face Continued Scrutiny

    Israel Dahan

    Vice Chancellor Sam Glasscock, in a stockholder case related to Riverbed Technology's go-private deal, recently expressed serious reservations about the broad releases provided to Riverbed’s directors in exchange for enhanced disclosures. This and other recent rulings highlight the Delaware Chancery Court’s efforts to ensure that meritorious merger challenges are litigated, say attorneys with King & Spalding LLP.

  • Inside National Futures Association Cybersecurity Guidance

    Heather Egan Sussman

    New cybersecurity guidance proposed by the National Futures Association is particularly noteworthy for firms that are not currently subject to the cybersecurity rules set forth by the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, say attorneys with Ropes & Gray LLP.

  • Lessons From Avon's FCPA-Related Settlements

    Riyaz Dattu

    When Avon Products Inc. first learned about potential Foreign Corrupt Practices Act problems in China, it simply directed that internal control measures be instituted at the subsidiary, with no follow-up on the compliance initiatives. By the time Avon began a full-blown internal investigation, much of the damage had been done, say Riyaz Dattu and Sonja Pavic of Osler Hoskin & Harcourt LLP.

  • What Jarkesy Means For SEC Admin Court Challenges

    Jonathan E. Richman

    The D.C. Circuit’s decision this week in Jarkesy v. U.S. Securities and Exchange Commission flags the potential tension between being too late and being too early to circumvent established procedures for review of SEC administrative proceedings, says Jonathan Richman, co-head of the securities litigation group at Proskauer Rose LLP.

  • OPINION: Paul Harvey, RIP


    After recently hearing a young trial lawyer start his opening statement with the Paul Harvey approach, I feel motivated to set out the reasons why defense lawyers should not use this technique anymore, says Dr. Ross Laguzza of R&D Strategic Solutions.

  • A New Model For Clean Energy: Community Solar Gardens

    Alidad Vakili

    Community solar gardens offer substantial cost benefits over traditional residential solar panels. Members of solar gardens may qualify for certain federal and state tax benefits if the solar garden investment is correctly structured and the size of a solar garden renders it better able to achieve economies of scale, say attorneys at K&L Gates LLP.

  • The Problems With SEC’s Cybersecurity Approach

    Brian Rubin

    A recent U.S. Securities and Exchange Commission enforcement action against the victim of a cyberattack suggests that a breach, in and of itself, is prima facie evidence that a firm’s procedures were not reasonable. This strict liability standard and post hoc rationale eliminates the need to establish any causal relationship between the alleged procedural inadequacies and the breach, say Brian Rubin and Charlie Kruly of Sutherland ... (continued)

  • How The Indirect Holding System Affects Investor Suits

    Thomas G. Ward

    By paying attention to the details of how the Depositary Trust Co. operates, Tom Clancy’s protagonist in "Debt of Honor" is able to save the U.S. from economic ruin. Commercial litigation may not always be as thrilling, but attorneys who pay attention to how the indirect holding system operates may find themselves able to work dramatic and favorable changes, say Thomas Ward and Daniel Dockery of Williams & Connolly LLP.

  • FINRA Adds New Dimension To Broker-Dealer Responsibility

    Lee A. Schneider

    The Financial Industry Regulatory Authority has signaled the need for more rigorous liquidity management practices at its member broker-dealers. In creating this expectation, FINRA relies on the notions underlying traditional financial responsibility rules as well as broad investor protection themes, say Lee Schneider and Naeha Prakash of Debevoise & Plimpton LLP.