Securities

  • December 2, 2016

    5 Insights From Airbus Group's Joshua Walker

    Technology so quickly outpaces regulation, and it’s imperative governments at every level find that sweet spot where the public is reasonably protected but innovation isn’t stifled. If the U.S. doesn’t get this balance right, other governments will, says Joshua Walker, general counsel and project executive for A3 by Airbus Group.

  • December 1, 2016

    Court Urged To Chuck EB-5 Suit Over Guarantees

    A man who ran an EB-5 regional center company but was later indicted has asked a South Dakota court to dismiss a case from several individuals and a company involved in a casino project who are trying to void guarantees related to a loan, saying that a similar lawsuit has already been filed.

  • December 1, 2016

    Pimco To Pay $20M To Settle SEC Investigation

    Investment management firm Pacific Investment Management Co. has agreed to pay nearly $20 million to settle a U.S. Securities and Exchange Commission investigation that found it misled investors about the performance of a new exchange-traded fund formerly managed by famed investor Bill Gross, according to an SEC order filed Thursday.

  • December 1, 2016

    Judge Questions Firm’s Trading Strategy In $20M CFTC Trial

    As trial opened Thursday over the U.S. Commodity Futures Trading Commission’s allegations that DRW Investments made $20 million by manipulating futures contracts, a New York federal judge seemed skeptical of DRW’s claim that its bids on the contracts were legitimate and questioned why the firm would keep bidding if no one was biting.

  • December 1, 2016

    Tesla Shareholder Prepared For Trial On Records Demand

    A shareholder of Tesla Motors Inc. said Thursday that a trial scheduled for next week in Delaware would not require any witness testimony, explaining he will rely on pretrial briefing to make an argument to inspect the company’s corporate books and records.

  • December 1, 2016

    DOJ Wants SEC To Yield To Criminal Hedge Fund Fraud Case

    U.S. Attorney Preet Bharara urged a New York federal court Wednesday to freeze discovery in the civil case against a hedge fund founder alleged to have spent part of one investor’s $2 million stake on his rent and car payments, saying the related criminal trial should proceed first.

  • December 1, 2016

    Ex-Baseball All-Stars Form Private Equity Group, $50M Fund

    Retired baseball all-stars Barry Larkin, David Ortiz, Nolan Ryan, Vernon Wells and Torii Hunter announced the creation of a baseball-focused private equity group Thursday.

  • December 1, 2016

    CEO Hurting Patriot National To Keep Control, Investor Says

    A shareholder of Patriot National Inc., which provides administrative services to insurance companies, has sued the company in Delaware based on allegations that its CEO made a series of detrimental decisions to retain control.

  • December 1, 2016

    CFTC Told To Sharpen Review Of Dealers' Cybersecurity

    The U.S. Commodity Futures Trading Commission should begin independently verifying whether its futures and swaps dealers are effectively prepared for cyberattacks, to correct vulnerabilities to computer and data breaches, according to an audit.

  • December 1, 2016

    Honigman Adds Ex-Barnes & Thornburg Ace As M&A Co-Chair

    Honigman Miller Schwartz and Cohn LLP has gained an ex-Barnes & Thornburg LLP corporate attorney to serve as co-chair of its mergers and acquisitions practice and the managing partner of its new Grand Rapids, Michigan, office, Honigman announced this week.

  • December 1, 2016

    Fla. Asset Manager Hit With SEC Suit Over $7.4M Fraud

    The U.S. Securities and Exchange Commission on Thursday announced a Florida federal suit accusing a Chilean national of using his asset management company to dupe investors out of $7.4 million while lying about his background.

  • December 1, 2016

    Lawyers A Weak Link In AML Enforcement, Report Says

    The U.S. has strong measures to stop illicit cash flows, but the lack of accurate data on shell corporations' true owners and the ability of lawyers, real estate agents and other professionals to escape reporting duties present significant gaps, according to an international evaluation released Thursday.

  • December 1, 2016

    Judge Denies Enron Investors' Bid To Retry UBS Suit

    A Texas federal judge has declined to rethink her dismissal of a proposed class action claiming UBS Financial brokers hid Enron's fraud from retail investors, saying that investors waited too long to try to fix their claims.

  • November 30, 2016

    Home Depot Execs Escape Investor Suit Over Data Breach

    Investors in The Home Depot Inc. can’t pursue a shareholder derivative suit against members of the retailer’s board of directors relating to a 2014 customer data breach, a Georgia federal judge ruled Wednesday, pointing to their inability to demonstrate board members "consciously failed to act" to prevent the breach.

  • November 30, 2016

    Deloitte, Sidley Face $131M Suit Over Aequitas Funds

    Sidley Austin LLP and Deloitte & Touche are facing another suit alleging they helped investment group Aequitas run a massive Ponzi scheme, as an Oregon suit seeking $131 million on behalf of nearly 200 investors was removed to federal court on Wednesday.

  • November 30, 2016

    Elan Investors Seek Initial OK For $135M SAC Capital Deal

    Elan Corp. shareholders asked a New York federal court Wednesday to give preliminary approval to a $135 million settlement with now-defunct hedge fund SAC Capital Advisors LP and founder Steven Cohen to settle claims related to insider trading involving shares of the drug giant’s stock.

  • November 30, 2016

    Investors In Golf Club's Landlord Seek Docs From Insurer

    Shareholders who say their company undervalues the land it leases to the famed Winged Foot Golf Club urged a New York federal court Tuesday to force an insurer to produce documents they say could show the landowner’s directors knowingly stiffed investors.

  • November 30, 2016

    Prosecutors Tout Individual Accountability In FCPA Cases

    Top enforcement attorneys with the U.S. Department of Justice and the U.S. Securities and Exchange Commission highlighted each agency’s efforts to increase prosecutions of individuals and encourage self-reporting of Foreign Corrupt Practices Act violations at a Wednesday conference.

  • November 30, 2016

    Kodak, Fujifilm, Others Get Aluminum Antitrust Claims Tossed

    A New York federal judge Wednesday dismissed some complaints in multidistrict litigation accusing Goldman Sachs and others of illegally manipulating aluminum prices, saying that Kodak, Fujifilm and others cannot sue because they do not operate in the aluminum warehousing market.

  • November 30, 2016

    Dismissal Rulings Slowed In $10B Williams-ETE Merger Fight

    Dismissal rulings in a $10 billion damages fight in Delaware Chancery Court over the scuttled $38 billion merger of The Williams Cos. and Energy Transfer Equity LP were put on hold Wednesday, pending a state high court ruling on an earlier opinion fatal to the tie-up.

Expert Analysis

  • Rakoff Addresses Tippee Liability In SEC V. Payton

    Jonathan E. Richman

    U.S. District Judge Jed Rakoff in U.S. Securities and Exchange Commission v. Payton recently denied a new trial for two remote tippees found guilty of insider trading. An interesting aspect of the decision is the court’s treatment of whether the tippees knew or should have known that the tipper had breached his duty of confidentiality in exchange for a personal benefit, says Jonathan Richman of Proskauer Rose LLP.

  • Top 10 Whistleblowing And Retaliation Events Of 2016

    Steven J. Pearlman

    This year saw significant changes to the whistleblower landscape. The most impactful events signal that whistleblower-related risks are not going away and employers need to respond by implementing several practical strategies, says Steven Pearlman of Proskauer Rose LLP.

  • Validity Of The 'Reliance On Consultant' Defense

    Brian L. Rubin

    Can investment advisers and broker-dealers safely engage outside compliance consultants, rely on their advice, and expect to be able to use that advice as a defense in a regulatory proceeding? Unfortunately, given the recent case of Robare, the answers to these questions are not entirely clear, say Brian Rubin and Rebekah Runyon of Sutherland Asbill & Brennan LLP.

  • Small Funds’ Big AML Compliance Risks

    Venkat Rao

    Not only do smaller funds have a very different risk profile from their larger institutional counterparts, but they also are likely to have fewer compliance resources available to focus on potential anti-money laundering violations. Another issue for smaller funds is the structure of their investments, say members of EisnerAmper LLP.

  • The Ethical Risks Of A Multijurisdictional Practice

    Melinda Gentile

    As law firms and clients conduct more business on a regional or national scale, multijurisdictional practice is becoming more prevalent for practicing attorneys. Attorneys engaged in both private practice and as in-house counsel need to be aware of the ethical risks of practicing across jurisdictions — including the implications of engaging in the unauthorized practice of law, say Melinda Gentile and Monique Cardenas of Peckar & Abramson PC.

  • The 1234A-B-Cs Of Breakup Fees

    Michael Alter

    M&A agreements often provide for the payment of a breakup fee to the jilted party if a deal falls apart. The IRS recently advised that the payment of a breakup fee should sometimes be characterized as a capital loss under Section 1234A of the Internal Revenue Code. This could increase after-tax costs to the paying party, but accord beneficial capital gain treatment to the receiving party, say attorneys from Fried Frank Harris Shriv... (continued)

  • SEC Focus On Financial Reporting: Recent Cases And Trends

    Nicholas Berg

    By targeting technical violations in subjective areas of financial reporting and accounting, the U.S. Securities and Exchange Commission has made it clear that it will target more minor accounting and disclosure issues in a manner similar to that being employed in other areas involving strict-liability offenses, say attorneys with Ropes & Gray LLP.

  • The Carrot-And-Stick Approach To Incentive Compensation

    Kevin LaCroix

    A recurrent governance proposal to remedy corporate excesses has been the idea of clawing back the compensation paid to company officials who presided over corporate scandals, such as the one at Wells Fargo. But the assessment that clawback provisions actually counterbalance the distorted incentives of an “extreme” incentive compensation plan depends on a psychological assessment that may or may not be valid, says Kevin LaCroix of RT ProExec.

  • And Now A Word From The Panel: MDL Venue Choices

    Alan Rothman

    A critical — and arguably the least predictable — facet of the Judicial Panel for Multidistrict Litigation's practice is the selection of the venue for a new MDL proceeding. In this installment of his bimonthly series on the panel, Alan Rothman of Kaye Scholer LLP looks at the panel’s reasoning for its selection of particular venues, as well as arguments advanced by the parties, over the past year.

  • How Law Firms Are Using Analytics To Reduce Write-Offs

    Haley Altman

    It is increasingly necessary for law firms to implement strategies to improve efficiency, staffing and value to meet client needs. Haley Altman, CEO and co-founder of Doxly Inc., discusses how to successfully leverage analytical tools and emerging technology to increase profitability.