Securities

  • July 24, 2014

    House Reps. Press For Change After Ackman Allergan Bid

    A member of the House Financial Services Committee said Thursday that he may take legislative action if the U.S. Securities and Exchange Commission doesn't take steps to prohibit an unusual bidder-hedge fund partnership pioneered earlier this year by famed activist Bill Ackman and Valeant Pharmaceuticals International Inc.

  • July 24, 2014

    Orrick's Credit Suisse MBS Analysis Is Fair Game, Judge Says

    A New York judge on Wednesday said Credit Suisse AG must produce documents stemming from an analysis by Orrick Herrington & Sutcliffe LLP on repurchase demands for loans underlying $497 million worth of residential mortgage-backed securities, finding the study isn't protected by attorney-client privilege.

  • July 24, 2014

    Ex-SEC Litigator Healy Leaves Reed Smith For Locke Lord

    Former SEC senior assistant chief litigation counsel Terence Healy has left Reed Smith LLP after two years and joined Locke Lord LLP's Washington, D.C., office, Locke Lord's Washington managing partner confirmed Thursday.

  • July 24, 2014

    Barclays Fires Back At NY AG's Dark Pool Claims

    Barclays PLC asked a state judge Thursday to toss New York Attorney General Eric T. Schneiderman's claims the firm tried to increase the market share of its dark pool by lying to clients and investors, saying not only did it not commit fraud but that the attorney general has no regulatory authority to bring his claims.

  • July 24, 2014

    Morgan Stanley Pays SEC $275M To Settle RMBS Claims

    The U.S. Securities and Exchange Commission on Thursday said it settled claims against three Morgan Stanley entities accused of misleading investors in a pair of residential mortgage-backed securitizations that were the last subprime deals the firms underwrote, sponsored and sold.

  • July 24, 2014

    BofA To Pay $16.5M To Settle Alleged Sanctions Violations

    Bank of America Corp. agreed to a more than $16.5 million settlement with the U.S. Department of the Treasury's sanctions enforcement unit over allegations that the bank processed around 200 transactions for known drug traffickers subject to U.S. sanctions, the Treasury said Thursday.

  • July 24, 2014

    Valeant Files Another Complaint Over 'False' Allergan Info

    Valeant Pharmaceuticals International Inc. on Thursday filed another complaint, this time with a Canadian regulator, accusing $53 billion takeover target Allergan Inc. of making "false and misleading" statements about Valeant's business to erode support for the proposed tie-up.

  • July 24, 2014

    SEC Denies Whistleblower Award In $18M Harbinger Case

    The U.S. Securities and Exchange Commission has denied an award to a would-be tipster who sought to collect portion of the $18 million paid to the agency after its landmark enforcement action last year against Harbinger Capital Partners LLC and its chief executive Philip Falcone, according to newly released documents.

  • July 24, 2014

    Dealmakers Q&A: Kramer Levin’s Howard Spilko

    Representations and warranties insurance is a powerful tool for deal professionals, and I expect the number of M&A deals using such insurance to soar in the coming years as market acceptance and demand continue to climb, says Howard Spilko, co-chairman of Kramer Levin Naftalis & Frankel LLP's corporate department.

  • July 23, 2014

    JPMorgan Ducks Suit Claiming Leaders Knew Of Madoff Fraud

    A New York federal judge on Wednesday tossed a shareholder derivative action claiming JPMorgan Chase & Co. leaders knew Bernard Madoff was engaged in fraud but turned a blind eye to preserve its lucrative profits from Madoff-related business, finding it didn't plead particularized facts.

  • July 23, 2014

    Madoff Judge Denies Fake Motion To Disqualify US Atty

    A New York federal judge on Wednesday denied an apparently fake motion on behalf of Bernie Madoff seeking to disqualify the U.S. Attorney from Madoff’s criminal suit on grounds that include the use of “voice-to-skull technology" to influence the court.

  • July 23, 2014

    Navistar Securities Class Action Too Vague, Judge Says

    An Illinois federal judge dismissed a securities class action against truck giant Navistar International Corp. on Wednesday, saying the complaint was too sparsely detailed to support fraud allegations in connection with the company's statements about its progress developing a U.S. Environmental Protection Agency-compliant clean engine.

  • July 23, 2014

    S&P May Face SEC Enforcement Action Over MBS Ratings

    Standard & Poor's Ratings Services could face an enforcement action by the U.S. Securities and Exchange Commission over alleged violations of federal securities laws with respect to its ratings of several commercial mortgage-backed securities, S&P parent McGraw Hill Financial Inc. said in a Wednesday SEC filing.

  • July 23, 2014

    SEC Wins Few Friends With Money Market Fund Rules

    The U.S. Securities and Exchange Commission took significant action on Wednesday when it narrowly passed contentious and complex new rules around money market funds, but in the process its efforts seemed to please no one and possibly opened the door for critics to mount a legal challenge.

  • July 23, 2014

    Jones Day Snatches Up Akin Gump Litigation Partner

    Jones Day has hired an Akin Gump Strauss Hauer & Feld LLP litigation partner and former assistant U.S. attorney to join the global firm's securities litigation and Securities and Exchange Commission enforcement practice in New York, Jones Day recently announced.

  • July 23, 2014

    Banks Say Justices' CTS Ruling Dooms FHFA's RMBS Suits

    Goldman Sachs & Co. and other banks Wednesday urged a federal judge to find claims by the Federal Housing Finance Agency that they knowingly sold toxic residential mortgage-backed securities to Fannie Mae and Freddie Mac time-barred pursuant to a U.S. Supreme Court ruling narrowing the statute of limitations. 

  • July 23, 2014

    SEC Says Stanford's Criminal Conduct Charges 'Slanderous'

    The U.S. Securities and Exchange Commission on Wednesday urged a Texas federal judge to reject convicted Ponzi schemer Robert Allen Stanford’s call to appoint a special prosecutor and advise the court of criminal conduct by a court-appointed officer, calling his allegations “slanderous, sensational and unsupported.”

  • July 23, 2014

    Perkins Coie Lures Ex-SEC Atty From Morrison & Foerster

    Former Morrison & Foerster LLP partner and U.S. Securities and Exchange Commission enforcement attorney Sean T. Prosser has joined Perkins Coie LLP's white collar and investigations practice in its San Diego office, the firm said this week.

  • July 23, 2014

    O'Malia's Move To ISDA Stokes Revolving-Door Debate

    Two days after announcing his resignation from the Commodity Futures Trading Commission, Scott O'Malia said he would be picking up immediately as CEO of the International Swaps and Derivatives Association, prompting a public outcry over perceived conflicts of interest between the agency and the lobbying group and resurfacing old concerns about the industry's revolving door.

  • July 23, 2014

    IRS Issues Guidance For Money Market Fund Redemptions

    The Internal Revenue Service released a procedure on Wednesday outlining cases when the agency should not treat the redemption of money market fund shares as a so-called wash sale, a type of transaction on which the IRS disallows claiming losses.

Expert Analysis

  • 3 Takeaways From BofA's $16.5M Settlement With OFAC

    Michael V. Dobson

    Bank of America’s roughly $16.5 million settlement with the Office of Foreign Assets Control for alleged violation of OFAC sanctions is a treasure trove of sanctions compliance guidance, and carries important lessons for those preparing to submit voluntary self-disclosures, says Michael Dobson Jr. of Kelley Drye & Warren LLP.

  • Understanding The Investment Adviser Registration Process

    Excerpt from Lexis Practice Advisor
    Gretchen Passe Roin

    The Investment Advisers Act preempts most state regulation of a U.S. Securities and Exchange Commission-registered investment adviser and its supervised persons. However, states have the power to regulate the licensing and registration of an SEC-registered adviser’s “investment adviser representatives,” say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Fla. Sets Strict Standard For Direct Shareholder Claims

    Jeffrey W. Gutchess

    In Dinuro Investments v. Camacho, a Florida court clarified the limited circumstances under which a corporate shareholder or limited liability company member has standing to bring a direct claim for damages relating to the company — an issue that has become more and more unsettled, say Jeff Gutchess and Justin Brenner of Bilzin Sumberg Baena Price & Axelrod LLP.

  • High Court Will End Circuit Split With Libor MDL Case

    Stacey Slaughter

    The U.S. Supreme Court's acceptance of Gelboim v. Bank of America Corp. will resolve a circuit split on whether a plaintiff can immediately appeal the district court’s dismissal of a lawsuit that has been consolidated with other suits that are still pending, but it is merely the first of several steps needed to revive the bondholder plaintiffs' antitrust claim, say Stacey Slaughter and Thomas Berndt of Robins Kaplan Miller & Ciresi LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • Protections Remain In Place For Ga. Officers, Directors

    J. Timothy Mast

    The Georgia Supreme Court’s highly anticipated decision in Federal Deposit Insurance Corp. v. Loudermilk clarifies the protections afforded by the business judgment rule to directors and officers of banks and corporations, and proves that the “wisdom” of corporate decisions continues to be shielded from claims of ordinary negligence, say attorneys with Troutman Sanders LLP.

  • An Inventive Way To Remove Pure State Court Claims

    Michael E. Blumenfeld

    Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.