A new Financial Industry Regulatory Authority rule requiring U.S. broker-dealers to disclose fees paid to foreign agents may create some pushback from finders who aren’t used to divulging fees to clients, but the rule's reach may be curbed by the limited number of registered brokers involved in EB-5 fundraising.
Drilling giant BP PLC has urged the Fifth Circuit to put to bed a former employee's Employee Retirement Income Security Act class action over stock losses suffered after the Deepwater Horizon catastrophe, saying a district court has nudged wider the limits of a Supreme Court decision covering suits like this.
The shareholder that launched derivative claims accusing JPMorgan Chase & Co. brass of overseeing faulty money-laundering and sanction controls that led to $2 billion in fines, appealed Friday the Delaware Chancery Court's decision to throw out the case on grounds the claims were already raised in other venues.
Oil exploration company China North East Petroleum Holdings Ltd. and one of its top executives are back on the hook for securities fraud after the Second Circuit ruled Friday that Acticon AG's shareholder class action included enough material about reckless behavior to constitute a potential claim.
GTCR LLC was hit with a lawsuit Friday over its $900 million sale of Capella Healthcare Inc. to Medical Properties Trust Inc. by one of the company’s founders, who said the Chicago-based private equity outfit breached its fiduciary duty and diluted his shares.
Former Michaels Stores Inc. chair Sam Wyly and late brother Charles Wyly Jr.'s estate asked a New York federal judge on Thursday to nix a $299.3 million victory won by the U.S. Securities and Exchange Commission, saying a bankruptcy decision on tax liability puts the award in doubt.
Activist group Occupy the SEC urged the U.S. Securities and Exchange Commission on Friday to beef up its regulation of exchange-traded products, saying that failing to do so could lead to market turmoil on par with the 2008 recession.
A New York judge has said insurers including an American International Group Inc. subsidiary can shield some documents lawyers produced while investigating a claim by MF Global Inc. for a $141 million futures trading loss in a coverage suit.
Qualcomm Inc. remained free of claims that company executives weren’t authorized to slate a tax-friendly amended stock bonus plan for a shareholder vote, with the Third Circuit ruling Friday that the board had delegated “broad powers” to the executives to oversee such plans.
The trustee overseeing the liquidation of Bernie Madoff's fraudulent investment firm on Thursday defended his clawback suit seeking recovery of at least $213 million from account holder Legacy Capital Ltd., telling a New York judge that several red flags must have tipped off Legacy to Madoff's scheme.
The U.K. trader accused of causing the 2010 flash crash on Wall Street lost his bid to postpone an extradition hearing in a London court when the judge on Friday denied his request for time to find an expert witness, according to multiple reports.
Home-furnishings retailer Pier 1 Imports Inc. was hit with a proposed class action Friday in Texas federal court by an investor who says the company withheld information from shareholders that sent the stock price tumbling when it was revealed.
A former in-house counsel at The Bank of New York Mellon Corp. who specializes in the creation and ongoing operations of investment funds, including regulatory issues, has joined Reed Smith LLP in its New York office, the firm announced.
O'Melveny & Myers LLP said Thursday that a former Weil Gotshal & Manges LLP mergers and acquisitions, private equity and securities pro from China has joined its Orange County, California, office as a partner serving technology, media and telecommunications clients.
A Las Vegas Sands Corp. shareholder accusing the company’s directors of misconduct in a derivative suit urged a Nevada federal judge on Thursday to deny the company’s motion for sanctions against his attorneys, arguing that Ninth Circuit precedent shows sanctions are not warranted.
The prospects of "Flash Boys"-inspired litigation dimmed Wednesday when a New York federal judge ruled that stock exchanges have immunity from private suits claiming they helped high-frequency traders gain an unfair advantage in the marketplace, experts say.
Morgan Stanley was sued for $20 million on Thursday by two former brokers who say they were fired in retaliation for bringing up fraud and illegal activity at the megabank.
A Delaware bankruptcy judge gave Allied Nevada Gold Corp. her approval Thursday to poll creditors on a Chapter 11 plan that aims to transfer a controlling 75 percent interest in a reorganized company to noteholders after the debtor forged a deal that won dissident equity holders' support for the strategy.
Todd Newman and Anthony Chiasson, the hedge fund managers whose insider-trading convictions were famously overturned by a federal appeals court in December, both urged the Supreme Court this week not to extend the life of the case just so that the solicitor general could take a stab at a moot point.
The $148 million in damages levied by the Delaware Chancery Court on Thursday against Dole Food Co. Inc. CEO David Murdock and General Counsel C. Michael Carter is a stark reminder of the risks associated with navigating the murky waters of a take-private deal led by a majority shareholder, serving as a cautionary tale to deal-makers and their advisers, experts say.
Earlier this year, Delaware Vice Chancellor J. Travis Laster, in the El Paso case, concluded that a subsidiary master limited partnership’s conflicts committee had failed to satisfy even a subjective good-faith standard when approving “dropdowns.” In a recent, similar case involving Kinder Morgan, the pendulum swung the other way but with an obvious takeaway, say Ethan Klingsberg and Christopher Austin of Cleary Gottlieb Steen & Hamilton LLP.
More than five years after the U.S. Supreme Court in Jones v. Harris Associates LP adopted the Gartenberg standard for cases brought under Section 36(b) of the Investment Company Act, the Seventh Circuit on remand highlighted the importance of, and interplay between, two Gartenberg factors — comparative fees and the nature and quality of services provided, says Molly McGinley of K&L Gates LLP.
The D.C. Circuit’s opinion this week shooting down the New York and Tennessee Republican parties’ First Amendment challenge to the SEC’s pay-to-play rule contains strong and convincing language that the lawsuit is untimely. The opinion also suggested that the D.C. Circuit may not view the ultimate merits of the challenge favorably, says Raymond Sarola, associate at Cohen Milstein Sellers & Toll PLLC and a former policy adviser in t... (continued)
Last week the D.C. Circuit upheld it's previous decision that a portion of the U.S. Securities and Exhange Commission's conflict mineral rule violated the First Amendment. For issuers, it's business as usual since the 2014 decision, with only issuers who voluntarily describe any of their products as "DRC conflict free" being required to provide a third-party audit in 2015, say LaDawn Naegle and Randy Wang at Bryan Cave LLP.
Vincente Garcia, former head of Latin American sales for SAP International Inc., recently pled guilty in San Francisco federal court to violations of the Foreign Corrupt Practices Act and settled civil FCPA charges brought by the U.S. Securities and Exchange Commission, underscoring the agencies' continuing focus on the technology sector and Northern California in general, say attorneys with Morrison & Foerster LLP.
The Northern District of Texas’ July 2015 decision in Halliburton has already been touted as a “bellwether” opinion on how to prove the absence of price impact to defeat class certification. Unfortunately, the opinion is based partly on a common fallacy — that the absence of statistical significance proves the absence of price impact, says Bjorn Steinholt, managing director at economics consulting firm Caliber Advisors Inc.
The Delaware courts have made innovative use of the business judgment rule in cases involving takeover defenses, controlling stockholder transactions and stockholder ratifications. The modern business judgment rule is not a one-size-fits-all doctrine, but rather a movable boundary, marking the shifting line between judicial scrutiny and judicial deference, says D. Gordon Smith, professor of law and associate dean at Brigham Young U... (continued)
Regulation A may be particularly useful in circumstances where a potential acquirer wants to issue equity securities without registration but the facts of the proposed acquisition limit the availability of the Regulation D exemption, says Christopher Peterson of Kaye Scholer LLP.
The conviction and sentencing of Tom Hayes for his part in the manipulation of the London interbank offered rate is an important win that will undoubtedly embolden the U.K. Serious Fraud Office and may help ensure that a proposal to abolish the SFO does not resurface anytime soon, say Elly Proudlock and David Rundle of WilmerHale.
Olivia Pope, the D.C. lawyer at the heart of the television drama "Scandal," calls herself and her team "gladiators in suits." By that, she means that she is willing to fight for her clients like a gladiator thrown into the arena. While it may be good for TV drama, thinking like a gladiator in reality can get litigators into trouble. Consider the top three ethical mistakes, say Sherin and Lodgen LLP partners Debra Squires-Lee and C... (continued)