Securities

  • July 25, 2016

    Ex-JPMorgan Banker's Insider Trading Trial Kicks Off

    The insider trading trial of a former Perella Weinberg Partners and JPMorgan Chase & Co. banker charged with tipping off his father about pending mergers in the health care industry began on Monday, with dozens of potential jurors under consideration to decide the case. 

  • July 25, 2016

    Fla. Man Sentenced To 8 Years In Prison For Organized Fraud

    A Florida man has pled guilty and been sentenced to eight years in prison for organized fraud in connection with an investment scheme he ran for about five years, Florida Attorney General Pam Bondi announced on Monday.

  • July 25, 2016

    GoPro Snags Rare Early Dismissal Of Calif. Investor Suit

    A California state court has granted a rare dismissal of shareholder claims against GoPro Inc., tossing allegations the camera maker and its executives sought to mislead investors in its 2014 initial public offering.

  • July 25, 2016

    TerraForm Power Adopts Poison Pill As Big Buyers Circle

    Targeted for a potential big buy-in by a hedge fund and asset manager, TerraForm Power Inc. announced adoption of “poison pill” shareholder protections Monday to discourage accumulation of Class A shares in the renewable energy company.

  • July 25, 2016

    Special Effects Firm DDMG To Settle Investor Suit For $5.5M

    A Florida federal court on Friday gave its initial approval to a $5.5 million settlement between directors of bankrupt special effects shop Digital Domain Media Group Inc. and shareholders who claim the directors concealed the poor financial state of the company ahead of its initial public offering.

  • July 25, 2016

    'Confusing' Deutsche Bank Securities Suit Will Go On

    A New York federal judge on Monday dismissed some class claims against Deutsche Bank AG over allegedly misleading information about securities offerings, calling the third amended complaint “utterly confusing” and at times “just wrong,” but said the bank must still face some allegations.

  • July 25, 2016

    CytRx Hit With Investor Suit Related To FDA Hold On Drug

    CytRx Corp. was hit with a proposed securities class action Monday in California federal court by investors who say the biopharmaceutical company concealed bad news affecting the company’s business arising from a U.S. Food and Drug Administration hold on its cancer trial drug, aldoxorubicin.

  • July 25, 2016

    Greenberg Traurig Claims Immunity In Ponzi Scheme Suit

    Greenberg Traurig LLP on Friday continued its fight to quash a proposed investor class action alleging the firm and Hunton & Williams LLP aided Robert Allen Stanford's $7 billion Ponzi scheme, telling a federal judge in Texas that attorney immunity bars the claims.

  • July 25, 2016

    Paragon Offshore Lenders Want Privileged Settlement Docs

    Attorneys for Paragon Offshore’s secured lenders urged a Delaware bankruptcy judge Monday to compel broader releases of the company’s attorney-client communications on a settlement with a former parent company, accusing Paragon of hiding records needed to judge the fairness of its overall Chapter 11 plan.

  • July 25, 2016

    Levenfeld Pearlstein Adds Corporate Pro From Katten Muchin

    Levenfeld Pearlstein LLC has boosted its corporate and securities practice with the addition of a former partner from Katten Muchin Rosenman LLP’s tax practice, the firm announced Friday.

  • July 25, 2016

    El Pollo Loco Secures Toss Of Calif. Investor Suit

    A California federal judge on Monday tossed a proposed shareholder class action alleging key executives of El Pollo Loco Holdings Inc. knowingly made misleading statements that inflated the Tex-Mex restaurant chain's stock, saying investors hadn’t shown any false comments.

  • July 25, 2016

    Equifirst, Barclays Win Dismissal Of RMBS Suit

    A New York state judge has tossed a suit alleging that Barclays Bank PLC and a defunct unit lied about the quality of the loans made up of $619 million in residential mortgage-backed securities, saying the claims were filed too late.

  • July 25, 2016

    Eaton’s Lies About Tax-Free Spinoff Cost $3B, Suit Says

    A proposed class of Eaton Corp. PLC shareholders launched a lawsuit in New York federal court on Friday, saying that their shares lost $3 billion in value when the company revealed it couldn’t spin off its vehicle component business tax-free after a 2012 merger with Cooper Industries PLC.

  • July 25, 2016

    Committee Urges SEC To Expand 'Accredited Investor' Terms

    A small business-focused committee is urging the U.S. Securities and Exchange Commission to expand its definition of an “accredited investor” to include a person’s financial sophistication, potentially broadening the population eligible to invest in the growing market for private placements.

  • July 25, 2016

    Stanford Investors Say $5B Proskauer Suit Should Proceed

    Investors in Robert Allen Stanford's $7 billion Ponzi scheme urged a Texas federal judge not to toss their $5 billion proposed class action claiming a former Proskauer Rose LLP attorney aided Stanford, saying a dismissed suit with similar claims never reached certification.

  • July 25, 2016

    MoFo Free From Malpractice Claims In Puda Coal IPO Suit

    Morrison & Foerster LLP escaped a malpractice suit in New York court from Macquarie Capital USA Inc. claiming that the firm failed to uncover a fraud before the investment bank's botched initial public offering for Puda Coal.

  • July 25, 2016

    Tilton Taps Clement For SEC Admin Court Fight In 2nd Circ.

    Private equity magnate Lynn Tilton swapped one high-profile legal team for another in her bid to revive her challenge to the U.S. Securities and Exchange Commission’s in-house court at the Second Circuit, filing a notice Monday that she has hired famed appellate lawyer Paul Clement after Gibson Dunn was booted from the case.

  • July 25, 2016

    LAN Airlines Pays $22M To Settle FCPA Union-Bribery Charges

    South American airline LAN Airlines SA has agreed to pay $22 million to settle allegations it violated the Foreign Corrupt Practices Act by facilitating bribes to union officials during a labor dispute, including paying a $12.75 million penalty as part of a nonprosecution agreement with the U.S. Department of Justice.

  • July 22, 2016

    Venezuela Beats Investors' $100M Suit Over Fake Notes

    An Ohio federal judge on Friday denied a claim made by an investment firm seeking to recover $100 million it held in notes purportedly backed by Venezuela, saying the notes originally issued by a now-defunct, state-sponsored Venezuelan bank were fraudulent.

  • July 22, 2016

    9th Circ. OKs Morgan Stanley’s Firing Of Elected Official

    Morgan Stanley did not err in terminating a financial adviser after his election as supervisor of a California county, the Ninth Circuit ruled Thursday, finding he was fired for a "legitimate, apolitical reason."

Expert Analysis

  • Latest FCPA Deal Validates Pilot Program

    William Steinman

    The U.S. Department of Justice's recent decision to close its Foreign Corrupt Practices Act investigation of Johnson Controls without charges provides a glimmer of hope that self-disclosure under the so-called pilot program might just be worthwhile, says William Steinman of Steinman & Rodgers LLP.

  • Testing The UBE: Missouri Benefits From Uniform Bar Exam

    Jim Nowogrocki

    We in Missouri do not take lightly to new trends or frothy ideas. Yet, the uniform bar exam has allowed us to meet the challenges of an increasingly mobile legal profession and the changing needs of clients, and to ensure that a newly admitted attorney has the knowledge, character and fitness to practice in the Show-Me State, says Jim Nowogrocki, president of the Board of Law Examiners in Missouri — the first state to adopt the UBE.

  • The Scope Of SEC Defendants' Jury Trial Right: Part 4

    Matthew T. Martens

    In the final part of this series examining the Seventh Amendment jury trial right of a civil defendant in a U.S. Securities and Exchange Commission enforcement action, attorneys with WilmerHale address why, even with regard to otherwise negligence-based securities law violations, the SEC must prove scienter to the jury in order to obtain a second- or third-tier penalty.

  • Internal Investigations: Don't Give Law Firm A Blank Check

    John McDermott

    We have heard increasing complaints from general counsels about the runaway costs of internal investigations by outside counsel. GCs and clients — be it the company, the audit committee or a special litigation committee — are uniquely positioned to play an important role in defining and controlling the scope and costs of an investigation, say John McDermott and Emily Garnett of Brownstein Hyatt Farber Schreck LLP.

  • 415 Million Reasons Why It’s Time To Hug A Whistleblower

    Jordan A. Thomas

    Five years in, the U.S. Securities and Exchange Commission’s whistleblower program is driving cases that are striking in their quality, significance and scope. Just as the SEC has harnessed the power of insiders, companies can and should utilize those same insiders to better protect their organizations, says Jordan Thomas, chairman of Labaton Sucharow LLP's whistleblower representation practice and a former SEC assistant director.

  • Curing Substantive Ambiguities In Debt Documentation

    Abbe Dienstag

    Recent New York state court decisions in GSO Coastline v. Global A&T Electronics present a cornucopia of issues arising under standard indenture clauses. First, beware of seemingly technical amendments to indentures that have substantive consequences, says Abbe Dienstag of Kramer Levin Naftalis & Frankel LLP.

  • Mitigating The Risk Of Post-Merger Legacy Board Factions

    Steven J. Steinman

    As occurred in the case of Cogentix, loyalties to the legacy constituent corporations of a merger can create serious issues for the ongoing governance and management of the post-merger corporation. The risk is heightened when the controller, former CEO or founder of the smaller constituent company continues as a director or manager of the merged company, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • When A Shareholder Oppression Remedy Is No More

    Michael Moehlman

    Since a 2014 Texas Supreme Court decision ending the minority shareholder oppression doctrine in the state, little has occurred to affect its outcome. Long-term strategic planning has therefore become increasingly important for Texas closely held corporations, says Michael Moehlman of Strasburger & Price LLP.

  • A Return To Priced Equity Rounds

    David Sorin

    Convertible notes were never truly intended to replace the priced equity round, but they were born of necessity. If we can reduce the costs of priced equity rounds, we can better match form and substance, providing a happy medium for companies and the investors who support them, say attorneys with McCarter & English LLP.

  • An Analysis Of The First 50 Crowdfunding Offerings

    Marc A. Leaf

    While social enterprises account for only 5.7 percent of entrepreneurial activity in the United States, early crowdfunding data show that they are strongly represented among crowdfunding issuers. Craft breweries, distilleries and licensed establishments are also disproportionately represented among the first 50 issuers, say Marc Leaf and Robert Esposito of Drinker Biddle & Reath LLP.