Securities RSS

  • April 23, 2014

    Qualcomm Could Face SEC Suit Over China Bribes

    Qualcomm Inc. might be slapped with a U.S. Securities and Exchange Commission enforcement action over allegations that it bribed individuals associated with Chinese state-owned companies or agencies, the company disclosed Wednesday in a securities filing.

  • April 23, 2014

    Ex-ValCom CEO No Longer On Hook For Racketeering Charges

    The former CEO of ValCom Inc. on Wednesday won a New Jersey federal judge's dismissal of racketeering charges in a suit, brought by the very entertainment company he founded, that accuses him and other top brass of scheming to defraud Valcom out of millions of shares.

  • April 23, 2014

    Holland & Knight Adds Former SEC, DOJ Atty

    Holland & Knight LLP has hired a former U.S. Attorney's Office and Securities and Exchange Commission official with a wealth of experience in securities and tax fraud matters, the firm said Wednesday.

  • April 23, 2014

    Subprime Lender Faces Class Action Amid CFPB Probe

    World Acceptance Corp., a top provider of short-term loans to low-income borrowers, on Wednesday was slapped with a securities class action after the disclosure of a recent U.S. Consumer Financial Protection Bureau probe caused its stock to tumble.

  • April 23, 2014

    Ex-DBSI Execs Say Jurors 'Misled' Amid Acquittal Push

    Four former executives convicted of running a Ponzi-like scheme through bankrupt real estate firm DBSI Inc. on Tuesday asked an Idaho federal court to toss the verdicts against them or grant a new trial, saying prosecutor missteps tainted the jury's decision.

  • April 23, 2014

    SEC Sues Ex-Nvidia Manager For Tipping Insider Traders

    The U.S. Securities and Exchange Commission hit a former Nvidia Corp. accounting manager with insider trading charges in New York federal court on Wednesday, alleging that he tipped his friend with nonpublic information in advance of the company’s earnings announcements in 2009 and 2010.

  • April 23, 2014

    US Bank Unable To Escape NJ RMBS Case

    U.S. Bank NA was unable to escape claims in New Jersey federal court on Wednesday alleging negligence and failure to inform investors of defaults in its role managing two residential mortgage-backed securities trusts.

  • April 23, 2014

    Wyly Admits 'Trouble Remembering Things' In SEC Testimony

    Texas tycoon Sam Wyly struggled on Wednesday on the witness stand in a New York court during a $550 million stock fraud trial, admitting that he sometimes confused two software companies for which he served as a top executive and that he once made an incorrect statement under oath about a key transaction in the case.

  • April 23, 2014

    BNY Mellon Can't Score Ore. Rate Analyses In Forex MDL

    A New York magistrate judge on Wednesday declined to provide Bank of New York Mellon Corp. with Oregon pension investment officials’ analysis of their foreign exchange transactions with State Street Corp., despite BNY's insistence that the information could “devastate” securities fraud claims surrounding its own forex business.

  • April 23, 2014

    Heckmann Reaches $27M Settlement For Shareholder Suit

    Attorneys for a class of shareholders suing a company known until recently as Heckmann Corp. — which provides fluids and environmental services to the energy industry — over its $505 million acquisition of China Water and Drinks Inc. told potential class members Wednesday that they have reached a $27 million settlement.

  • April 23, 2014

    Chancery's Appetite For Fee Awards Wanes As Deal Suits Rise

    The Delaware Chancery Court is scaling down fee awards tied to settlements that unearth new disclosures but don't significantly change the landscape of a given deal, a sign that the premier U.S. business court is reining in plaintiffs' attorneys looking for an easy payout.

  • April 23, 2014

    LIN Shareholder Sues Over $1.6B Media General Merger

    A LIN Media LLC shareholder has filed a class action in Delaware Chancery Court against the TV company's board and Media General Inc., which agreed to acquire LIN for $1.6 billion.

  • April 23, 2014

    Dems Push SEC To Enact Conflict Minerals Rule

    A group of Democratic federal lawmakers on Tuesday urged the head of the Securities and Exchange Commission to implement a new rule requiring issuers to conduct due diligence and report on the sourcing of conflict minerals from the Democratic Republic of Congo.

  • April 23, 2014

    NJ Judge Trims Attys' Charges In Lucchese Racketeering Case

    A New Jersey federal judge on Wednesday declined to toss racketeering charges against a pair of reputed Lucchese crime family associates accused of draining $12 million from a mortgage lender and forcing its bankruptcy but dismissed counts against two attorneys and another defendant.

  • April 23, 2014

    Ex-Penny Stock Co. Prez Gets 18 Years For $18M Fraud

    The Sixth Circuit on Wednesday affirmed an 18-year prison sentence given to the ex-president of penny stock company Plasticon International Inc., saying the man convicted of bilking investors out of over $18 million failed to object to his sentence at trial.

  • April 23, 2014

    UBS Beats State Law Claims In Credit Board's MBS Suit

    A Kansas federal judge on Tuesday tossed the National Credit Union Administration board’s state-law claims alleging UBS Securities LLC misrepresented the risk of about $2 billion in residential mortgage-backed securities it sold to two now-defunct credit unions, finding the claims were time-barred.

  • April 23, 2014

    2nd Circ. Revives Shareholder Suit Against Apple REIT

    The Second Circuit on Wednesday partially revived a class action against Apple REIT Inc. and others alleging they duped investors into supporting multiple ventures by presenting misleading and incomplete documents, saying a lower court erred in finding the plaintiffs failed to allege a cognizable loss.

  • April 23, 2014

    Conservative Groups Urge Rejection Of Senate Housing Bill

    Conservative activist groups on Wednesday launched a broadside attack against a U.S. Senate bill that would reshape the United States housing finance system and eliminate Fannie Mae and Freddie Mac, saying that it would simply increase government intrusion in the housing market.

  • April 23, 2014

    Shareholder Alecta Rejects Volkswagen's $9B Bid For Scania

    Swedish pension fund Alecta, a shareholder of truck manufacturer Scania AB, came out Wednesday against the buyout of minority shares by Volkswagen AG for €6.6 billion ($9.1 billion), joining other skeptical institutional shareholders.

  • April 23, 2014

    Allergan Swallows Poison Pill After $46B Valeant-Ackman Bid

    Botox maker Allergan Inc. adopted a poison pill late Tuesday to insulate itself from hostile takeover plays, a move that came the same day it confirmed an unsolicited offer worth nearly $46 billion from Valeant Pharmaceuticals International Inc. and famed activist Bill Ackman.

Expert Analysis

  • Will Investors 'Like' SEC's New Social Media Ad Rules?

    Abigail Bertumen

    The U.S. Securities and Exchange Commission's recent guidance on third-party social media commentary in investment adviser advertising maintains existing agency principles while providing greater latitude under the Testimonial Rule. Advisers must be willing to adopt a fairly specific and practical policy for social media advertising, and policies should include ways of managing the "do's" and "don'ts" of publishing site commentary, say attorneys at Bingham McCutchen LLP.

  • History Of Alleged Financial Sector Collusion: Part 1

    Jon Eisenberg

    Over the last 15 years, financial institutions have paid billions of dollars to settle claims that they colluded with each other. In this two-part series, we discuss cases beginning with the Nasdaq spread collusion allegations in the late 1990s and ending with the more recent Libor and Forex investigations, identify lessons that emerge, and suggest steps that firms, and in some cases, regulators, may wish to consider to reduce risks going forward, says Jon Eisenberg of K&L Gates LLP.

  • Mandatory Pro Bono Is Not The Answer For Practitioners

     Amanda D. Smith

    The State Bar of California has decided to follow New York's lead and require prospective attorneys to record 50 hours of pro bono service in order to be eligible for admission. While we applaud the intentions behind these initiatives, there are a number of reasons why state bars should limit any mandatory pro bono requirement to this context, rather than extend it to licensed attorneys as some have suggested, say attorneys with the Association of Pro Bono Counsel.

  • Plaintiff Firms Continue Targeting Annual Meeting Proxies

    Gerard G. Pecht

    In what has become an annual rite of springtime, shareholder plaintiff lawyers are once again targeting Schedule 14A annual meeting proxy statements that include proposals on executive compensation, requirements for tax deductibility of performance-based compensation, and other issues requiring shareholder action. Fortunately for issuers, these types of claims usually fare poorly when plaintiffs are forced to defend them in court, say Gerard Pecht and Peter Stokes of Norton Rose Fulbright LLP.

  • Keeping Investment Funds Out Of Litigation Purgatory

    Casey McTigue

    Most seasoned investment fund managers know it’s only a matter of time before they get dragged into litigation over something. While much of that risk relates to sales of their portfolio companies, post-closing merger and acquisition litigation is easy to avoid, says Casey McTigue of SRS|Acquiom LLC.

  • Conflict Minerals Law — Will The SEC Take It To The Banc?

    J. Robert Brown Jr.

    Given that the D.C. Circuit struck down a small aspect of the conflict minerals rule on First Amendment grounds, the U.S. Securities and Exchange Commission will have to decide its next step. To the extent that the agency opts to seek en banc review, it will presumably need to give some thought to the possible change in the pool of judges that could result from the suggested consolidation with another case, and the impact of this change on the outcome of a critical issue, says J. Robert Brown Jr. of Sturm College of Law at the University of Denver.

  • Activist Investors — Brace Yourselves For 13D Changes

    Perrie Michael Weiner

    The U.S. Securities and Exchange Commission is turning more aggressive attention toward shareholder activists, and the issue of revising the Schedule 13D timetable is alive once again, largely due both to a recent media report and its confluence with another event — the news that such a measure has the support of perhaps the preeminent juridical voice in American corporate law, Delaware Supreme Court Chief Justice Leo E. Strine Jr., say Perrie Michael Weiner and Patrick Hunnius of DLA Piper.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Roadblocks To D&O Coverage For Subpoena Response Costs

    Benjamin D. Tievsky

    While it must be emphasized that a policyholder’s entitlement to coverage is dependent upon the precise language of the policy at issue and the specific facts of each case, the recognition by many courts that a subpoena is a “claim” under D&O policies opens the door for potential recovery in a variety of circumstances, says Benjamin Tievsky of Orrick Herrington & Sutcliffe LLP.

  • Good News For South Fla. Ponzi Schemers?

    Lawrence A. Kellogg

    In its effort to protect public companies and legitimate businesses in general, the U.S. Supreme Court appears to be overlooking the effect its rulings are having on those for whom the fraud provisions of the securities laws were designed to protect. Should the court ring the death knell on class action securities cases, the South Florida climate for Ponzi schemers and other fraudsters will become better than ever, says Lawrence Kellogg, a founding partner of Levine Kellogg Lehman Schneider & Grossman LLP.