• October 24, 2014

    UK Watchdog Wants Extra £26.5M For Libor, Fraud Probes

    The U.K.'s Serious Fraud Office is seeking an extra £26.5 million ($42.6 million) in funding to cover the cost of high-profile investigations, including a probe into alleged manipulation of the London Interbank Offered Rate, according to a government official Thursday.

  • October 24, 2014

    Fannie Mae Pays $170M To Clear Investors' Subprime Suit

    Fannie Mae has agreed to pay $170 million to shareholders to settle a consolidated class action alleging the federal mortgage giant misrepresented its exposure to subprime loans in the runup to the 2008 mortgage crisis, according to documents filed in New York federal court Friday.

  • October 24, 2014

    JPMorgan Derivative Suit Over RMBS Practices Gets Quashed

    A California federal judge on Thursday dismissed a shareholder derivative lawsuit against the top brass at JPMorgan Chase & Co. over the bank’s residential mortgage-backed securities business that led to a $13 billion settlement with the government, saying the plaintiffs haven’t properly pled claims of false statements and self-dealing.

  • October 24, 2014

    Challenge To $390M Crimson Exploration Sale Tossed

    A Delaware Chancery judge on Friday threw out claims challenging the now-closed $390 million sale of Crimson Exploration Inc. by Contango Oil & Gas Co., ruling that the suing shareholders didn’t have enough of a case to stand up to either the business judgment or entire fairness standards.

  • October 24, 2014

    ZeekRewards Founder Indicted In $850M Ponzi Scheme

    A North Carolina federal grand jury on Friday indicted the alleged mastermind of an $850 million Ponzi scheme that promised investors bogus, big returns on a "sham Internet-based penny auction company" called Zeekler and its advertising division ZeekRewards.

  • October 24, 2014

    SEC OKs Muni Adviser Compliance Rule, Supervision Regime

    The Municipal Securities Rulemaking Authority on Friday said it has won federal approval of its plan to hold newly regulated municipal advisers responsible for supervising their business, including by appointing chief compliance officers and having CEOs attest their firm has processes in place to meet the letter of the law.

  • October 24, 2014

    Latham & Watkins Partner Withdraws From AG Consideration

    Latham & Watkins LLP partner and former White House Counsel Kathryn Ruemmler has withdrawn from the race to succeed Attorney General Eric Holder, an administration official confirmed Friday.

  • October 24, 2014

    Gov't Cooperator In SAC Insider Trading Probe Avoids Jail

    A former mutual fund manager who pled guilty to insider trading and served as a key witness in the government’s probe of SAC Capital Advisors LP and several hedge fund managers was sentenced to two years’ probation on Friday.

  • October 24, 2014

    Texas High Court Won't Rethink Minority Shareholder Ruling

    The Texas Supreme Court on Friday denied a rehearing of its June decision that reversed a $7.3 million judgment and held that Texas law doesn’t recognize common-law claims for minority shareholder oppression, teeing the case up for a return to a lower appellate court.

  • October 24, 2014

    Banks Must Boost Efforts To Block Corrupt Funds, DOJ Says

    The head of the U.S. Department of Justice's foreign asset recovery program on Friday called for banks to ramp up their efforts to know their customers and prevent funds from corrupt governments and dictators from entering their coffers, saying those due diligence procedures need to be in "the DNA of every financial institution."

  • October 24, 2014

    NII Holdings Wants Brass Covered From Investor Class Action

    NII Holdings Inc. on Thursday asked a New York bankruptcy court to extend the automatic stay of litigation to cover its executives, who are facing an investor class action over allegedly false statements about the Nextel-brand wireless service provider’s performance, saying the litigation could harm restructuring efforts.

  • October 24, 2014

    11th Circ. Refuses To Reignite War Over $2.7M Judgment

    Competing claims to a $2.7 million judgment in a securities fraud suit against Capital International Holdings Inc. and another debtor were properly put to rest when the full amount of the judgment was deposited to a federal court registry rather than collected from banks through a garnishment, the Eleventh Circuit found Thursday.

  • October 24, 2014

    Ponzi Schemer's Sentence Vacated In $6M Fraud Case

    The Second Circuit on Friday vacated an eight-year prison sentence for one of the defendants in a $6 million Ponzi scheme carried out by Watermark Financial Services Group Inc. and M-One Financial Services LLC, and upheld an 11-year sentence for another defendant.

  • October 24, 2014

    Tesco Hit With NY Class Action Over $421M Overstatement

    A Texas pension fund on Thursday filed a securities class action in New York federal court against Tesco PLC over the beleaguered U.K. retailer's omission that it has overstated its profits by £263 million ($421.4 million), a revelation that sent the company's stock tumbling.

  • October 24, 2014

    Investors Blast Multimedia Games' $1.2B Sale To Global Cash

    Casino games maker Multimedia Games Holding Co. Inc. was hit with a second shareholder class action in Texas federal court Thursday alleging its proposed $1.2 billion buyout by Las Vegas-based Global Cash Access Holdings Inc. cheats shareholders, casting another cloud over the deal.

  • October 24, 2014

    Okapi CEO Explains Why Activists Are Ruling The Marketplace

    The landscape for shareholder activism has changed dramatically in the five years since Bruce Goldfarb launched Okapi Partners LLC, the proxy solicitor that recently added a landmark win for Starboard Value LP to its list of client successes. Here, he shares an insider perspective on why the recent surge in shareholder activism is only the beginning.

  • October 24, 2014

    Ex-BNY Mellon Manager Admits Tipping Scheme

    A former Bank of New York Mellon Corp. manager pled guilty on Friday to earning more than $700,000 by trading on inside tips from a business school classmate about impending acquisitions in the pharmaceutical industry.

  • October 24, 2014

    CFTC Wins $3M Judgment Against Texas Co. Over Forex Fraud

    A Texas federal judge has granted the U.S. Commodity Futures Trading Commission a $3.3 million judgment against Financial Robotics Inc. for fraudulent sales of forex products to an attorney who was convicted of a $40 million Ponzi scheme, the regulator said on Friday.

  • October 24, 2014

    Ex-Schroders Employee Pleads Not Guilty To Insider Trading

    A former trader for U.K. asset-management giant Schroders PLC pled not guilty Friday to nine counts of insider trading in the stock of Autonomy Corp. PLC and others, setting the stage for a 2016 trial.

  • October 24, 2014

    GM Reveals Subprime Lending Probe Goes Beyond DOJ

    General Motors Co. on Thursday revealed in a securities filing that an ongoing investigation into its subprime auto lending practices at its financing unit has spread beyond a previously revealed U.S. Department of Justice inquiry.

Expert Analysis

  • Political Pressure May Push FERC, CFTC Closer Together

    Daniel A. Mullen

    Recent congressional dissatisfaction over the settlement involving former Amaranth Advisors LLC trader Brian Hunter's alleged manipulation of the natural gas futures contracts market could ultimately increase coordination between the Federal Energy Regulatory Commission and U.S. Commodities Futures Trading Commission when jurisdictional overlap exists, say Daniel Mullen and Nathan Erickson of Fried Frank LLP.

  • UK Court Sheds Light On De Facto And Shadow Directors

    David Gerber

    The U.K. Court of Appeal's judgment in Smithton Ltd. v. Naggar is instructive of the English courts’ current approach to defining the role of director, as well as addressing a question that often arises in practice — whether a director of a holding company is a de facto or shadow director of its subsidiary, say David Gerber and Sonalini de Zoysa Gunasekera of Kaye Scholer LLP.

  • An Associate's Perspective On Business Development

    Jason Idilbi

    Let’s face it: Taking friends or acquaintances to Justin Timberlake concerts or golf at the Ocean Course is not how we as law firm associates are going to develop business. Our primary value comes not from out-of-office networking jaunts but from bearing a laboring oar for our partners. Which is why our best approach to business development is more likely from the inside out, says Jason Idilbi of Moore & Van Allen PLLC.

  • New Lessons From Rural/Metro II For M&A Parties, Advisers

    Peter J. Rooney

    The Delaware Court of Chancery’s decision this month in the case of Rural/Metro Corp. Stockholders Litigation awarding nearly $76 million in damages against a seller’s financial adviser highlights the difficult strategic questions nonsettling defendants face by proceeding alone to trial, including whether to put on trial the conduct of the settling defendants, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • DOJ's 1st Anti-Spoofing Prosecution Reflects 2 Trends

    Marcus Christian

    The prosecution of Michael Coscia of Panther Energy Trading LLC is the first by the U.S. Department of Justice under the anti-spoofing provision of the Commodity Exchange Act. Given the current trends and dedication of substantial DOJ and Commodity Futures Trading Commission resources to commodities and securities fraud investigations, it would appear that more prosecutions are likely, say attorneys with Mayer Brown LLP.

  • 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.