The Securities and Exchange Commission on Friday settled fraudulent conduct charges with a lawyer representing some of the companies that took $13 million from investors by claiming they had access to Facebook Inc. and other social media stock ahead of their initial public offerings.
A Minnesota federal jury on Wednesday found an alternative energy company's CEO guilty on criminal counts including mail and wire fraud after federal authorities accused him of lying to investors in a fraud scheme that cost them between $2.5 million and $7 million.
Kinder Morgan Inc. was hit with a suit in Texas court Thursday by a shareholder who says the midstream giant mischaracterized capital expenses incurred by its pipeline unit in order to draw billions in cash distributions.
Abbott Laboratories shareholders asked an Illinois federal judge on Thursday to bless a settlement resolving a derivative suit that alleged Abbott's directors cost the company $1.6 billion because they did nothing to stop the marketing of its anti-seizure drug Depakote for off-label uses.
Real estate investment trusts are experiencing a flurry of activity and posted solid gains in February thanks to growing confidence in the economy, and experts say mergers, public offerings and capital grabs are likely to continue to increase this year despite an uncertain tax future.
Fifth Third Bancorp's argument that ex-workers who said the company's stock was too risky for their retirement plan had to claim Fifth Third faced dire circumstances — such as impending collapse — to keep a proposed Employee Retirement Income Security Act class action in court is bunk, the U.S. solicitor general told the Supreme Court on Wednesday.
New York Attorney General Eric Schneiderman on Friday tapped antitrust expert Guy Ben-Ishai to become his new chief economist, a position in which he will help shape the attorney general's antitrust and securities enforcement efforts.
With the pageantry surrounding Leo E. Strine Jr.’s new job as chief justice of the Delaware Supreme Court over, the focus now turns to how he may shape the court's upcoming term with the most hotly anticipated decision being the appeal of one of the new chief justice’s own opinions.
The U.S. Securities and Exchange Commission on Friday barred a former attorney from association with any municipal adviser or nationally recognized statistical rating organization after he was convicted of conspiracy, mail fraud and illegal sales of unregistered securities, holding that it is in the public interest.
A Zale Corp. shareholder filed a class action Thursday in Delaware Chancery Court, accusing the private equity-backed jeweler of breaching its fiduciary duty by letting Signet Jewelers Ltd. acquire it for only $690 million.
Carmen J. Lawrence, a former director of the U.S. Securities and Exchange Commission’s Northeast region, has left Fried Frank LLP to bolster King & Spalding LLP's government investigations, white collar and securities practices as a partner in its New York office, King & Spalding announced Friday.
The former CEO and chairman of convicted Ponzi schemer Scott Rothstein's law firm, Rothstein Rosenfeldt Adler PA, was charged in Florida federal court Friday with conspiring to make illegal contributions to political campaigns, including U.S. Sen. John McCain's failed 2008 presidential run.
Former Jefferies & Co. Inc. managing director Jesse C. Litvak on Friday became the first individual to be convicted of Troubled Asset Relief Program fraud when a Connecticut jury found him guilty of a scheme to defraud customers on residential mortgage-backed securities trades.
A D.C. Circuit panel on Friday rejected the CEO of defunct American Sterling Bank’s bid to overturn a Comptroller of the Currency ban and $1 million fine for misrepresenting the bank’s capital reserves, ruling that he could not claim he lacked information about evolving regulations.
The Backstreet Boys have requested additional time to resolve a dispute with their former Ponzi-scheming manager's bankruptcy trustee over $3.5 million in legal fees, seeking to push back a scheduled March 24 hearing on the matter.
The U.S. Securities and Exchange Commission filed a lawsuit Friday in Georgia federal court accusing a former high-ranking executive at children's clothing company Carter's Inc. of insider trading and tipping violations.
A male in-house counsel once told me I had not been "nice" to him when I approached him about a business opportunity and would therefore not get the business. To add insult to injury, one of my male partners told me I should be flattered by the interest paid to me by the in-house counsel, says Paulette Brown, chief diversity officer at Edwards Wildman Palmer LLP.
Several people have told me that they had a lot of trepidation when they found out they would be working for a woman. To be effective, you need to be able to eliminate or address the conscious or unconscious bias colleagues may have about having a female boss, says Nancy Mitchell, chairwoman of Greenberg Traurig LLP's New York business reorganization and financial restructuring practice.
A shareholder suing health care giant Aetna Inc. for allegedly sending out false and misleading proxy statements in past years urged a New York federal judge on Friday morning to delay the company’s upcoming annual shareholder meeting.
Mining giant Cliffs Natural Resources Inc. said Friday that New York-based activist investor Casablanca Capital LP has rejected its offer to settle a proxy fight and is still barreling ahead with attempts to gain full control of the company's board and replace its CEO.
The Delaware Court of Chancery recently rejected a party’s attempt to object to the production of documents located in France on basis of the French Data Protection Act. Given the court’s reputation and influence in corporate litigation, In re Activision Blizzard Inc. Stockholder Litigation does not augur well for foreign parties hoping to resist U.S.-style discovery on basis of their country’s data privacy statute, says Pierre Grosdidier of Haynes and Boone LLP.
Cloud users must know how to use the cloud responsibly to prevent later difficulties with document production. When negotiating a cloud service agreement, users should look for certain services that will prove useful when responding to discovery requests, such as comprehensive search options, instant suspension of the auto-delete function, and preservation of metadata and embedded data, say attorneys with Sidley Austin LLP.
It is clear that the drafters of the real estate investment trust provisions in Rep. David Camp’s, R-Mich., tax reform discussion draft are not fans of the conversion of corporations to REIT status, spinoffs of REITs from operating companies, or the creation of REITs other than “traditional REITs.” The proposed provisions — intended to prevent the “erosion of the corporate tax base” — are clearly “overkill,” say attorneys with Goodwin Procter LLP.
In the year since the U.S. Supreme Court's decision in Comcast Corp. v. Behrend, nearly 200 cases have cited the ruling, but the only consensus reached is that its significance for class actions is unsettled. However, notwithstanding the lower courts’ inconsistent application of Comcast's “rigorous analysis” of damages model evidence, a few guiding principles have emerged, say Erik Snapp and Quinn Shean of Dechert LLP.
The U.S. Supreme Court has agreed to review the Sixth Circuit’s decision in Indiana State District Council of Laborers v. Omnicare Inc., which parts ways with the Second, Third and Ninth circuits and holds that “subjective falsity” is not required for opinion-based Section 11 claims. Although the circuit split is hogging all the attention, everyone seems to be overlooking the fact that the Sixth Circuit in Omnicare ignored its own precedent, says Drew Dropkin of King & Spalding LLP.
On Wednesday, the U.S. Supreme Court heard oral arguments in Halliburton v. Erica P. John Fund and will soon decide on "injury presumed" reasoning applied in the context of securities class actions. If the court eliminates the only federal construct for presuming injury and reliance in class actions, it will be difficult to argue that similar presumptions accurately reflect transactions in the markets for everyday consumer goods, say Andrew Tuck and Kristen Bromberek of Alston & Bird LLP.
In Lawson v. FMR LLC — the first whistleblower case heard under the Sarbanes-Oxley Act — the U.S. Supreme Court recently held the law protects virtually anyone hired by a publicly traded company, or its employees, either directly or indirectly, and forbids reprisal for a huge range of fraud reports. The decision throws into doubt the Fifth Circuit's ruling last year in Asadi v. GE Energy LLC and will likely reshuffle future whistleblower opinions, says R. Scott Oswald of The Employment Group PC.
In an age of heightened litigation risk and motivated regulators, private equity and other investment firms cannot focus simply on their own legal compliance, but must remain diligent with respect to the portfolio companies in which they invest. Ways to mitigate secondary liability risks include requiring the election of a majority of independent directors at the portfolio company, say Ari Berman and Amy Tankersley of Vinson & Elkins LLP.
While there was only one U.S. Department of Justice Foreign Corrupt Practices Act opinion procedure release in 2013, last year's enforcement actions, and remarks made by DOJ and U.S. Securities and Exchange Commission officials, provided a fair amount of guidance on various compliance topics — including travel and entertainment, gifts, charitable donations, third-party due diligence, self-reporting, cooperation and remediation, and commercial bribery, say attorneys with Shearman & Sterling LLP.
The U.S. Supreme Court’s denial of certiorari in the Ninth Circuit case Tamer Salameh v. Tarsadia Hotel effectively offers hotel-condominium developers a safe pathway to publicly offering hotel-condo units out of the purview of federal and state securities laws. And with the current upswing in the real estate market, such developments are slowly beginning to pop up again in states like Florida and New York, say attorneys with Paul Hastings LLP.