Pharmaceutical company CorMedix allegedly deceived investors about the market potential of its catheter product, causing stock prices to plummet after an article claimed clinical data was overstated and revealed some company founders faced prior fraud allegations, according to a proposed class action filed Tuesday in New Jersey federal court.
Edison International on Monday was hit with a putative securities class action in California federal court alleging the utility giant jeopardized its $3.3 billion settlement with the California Public Utilities Commission over the shutdown of a leaky nuclear reactor by hiding improper contacts with the agency.
The receiver in the R. Allen Stanford Ponzi scheme told a Texas federal jury Tuesday that a Dallas coin and gold wholesaler should return more than $5 million it was paid in the months leading up to the collapse of Stanford’s massive $7 billion scheme.
Attorneys representing plaintiffs in two class actions against MF Global Inc. and others were awarded attorneys' fees and expenses totaling about $21 million by a New York federal judge for their work in securing settlements in a case over alleged price manipulation in the palladium and platinum markets.
The equity committee in Allied Nevada Gold Corp.'s bankruptcy on Tuesday blasted the debtor's bid to extend the time it can be the only one to propose a Chapter 11 plan, arguing that it's a pressure tactic to get shareholders to accept a reorganization strategy that might leave them with nothing.
A California federal judge refused to nix a securities class action against a financial firm accused of making high-risk investments that allegedly lost more than $55 million, saying Monday that the plaintiffs’ couldn’t be forced into an arduous and unfair arbitration.
A California federal judge on Tuesday appointed the lead plaintiff in a putative securities class action against the online Chinese sports-lottery service 500.com and approved his selection of Levi & Korsinsky LLP as lead counsel.
U.S. District Judge Jed S. Rakoff on Monday added yet another twist to the growing mess of insider trading law when he penned a Ninth Circuit decision to uphold a conviction in a family insider trading scheme, underscoring the ambiguity of the Second Circuit’s landmark Newman decision and increasing the likelihood that the government will appeal it.
A Florida federal judge on Tuesday blocked netTALK.com Inc. executives, accused in a shareholder class action of illegally wresting control of the Miami-based telecom, from issuing 700 million new shares of the company, ruling shareholders likely would regain control of the company from the executives.
The board of directors of Santander Holdings USA Inc. agreed Tuesday to sit down and draw up a new plan to manage risk at its banks, in response to a Federal Reserve investigation that found the financial institution's current program wasn’t up to snuff.
A New York federal judge has rejected bankrupt Texas tycoon Sam Wyly's request to undo the jury verdict that led to a $299 million judgment after the U.S. Securities and Exchange Commission charged Wyly and his late brother with duplicitous offshore trading.
The public portions of living wills for 12 banks released Monday provided a much clearer picture of how they would be taken apart through bankruptcy should they fail, but analysts say the banks could be even more transparent without compromising their confidential financial data.
An influential, bipartisan group of U.S. senators on Tuesday introduced legislation that would rebuild the barrier between traditional and investment banking, but their bid to reverse the repeal of the Glass-Steagall Act looks like a long shot in the Senate to say nothing of the regulation-unfriendly U.S. House of Representatives.
A former Commerzbank AG executive was sentenced in New York federal court Tuesday to time served for aiding Olympus Corp.’s $1.7 billion accounting fraud scheme, receiving credit for cooperating in a U.S. investigation that prompted the bank to pay a $1.45 billion fine.
Mobile game maker iDreamSky Technology Ltd. told a New York federal judge on Monday that a putative shareholder class action accusing the company of providing misleading information in the run-up to its $115.5 million initial public offering last year belongs in federal court despite the shareholder’s objection.
A Buffalo venture capital fund manager accused of operating a $5 million Ponzi scheme involving fake purchases of Twitter Inc. and Uber Technologies Inc. shares is in plea negotiations, a New York federal prosecutor said Tuesday.
Lehman Brothers Holdings Inc. said Monday it is appealing to the Second Circuit a decision denying its bankruptcy administrators $67 million in foreign tax credits, challenging a federal judge’s reading of a bilateral tax treaty between the U.S. and the U.K.
A proposed $5 million payout to end class claims that Adams and Reese LLP, Breazeale Sachse & Wilson LLP and others aided and abetted Allen Stanford’s $7 billion Ponzi scheme was challenged Monday for purportedly handing attorneys the bulk of the settlement.
Former New Jersey Gov. Jon Corzine and other former MF Global executives will pay $64.5 million to settle claims that they swindled investors by touting the brokerage's financial health before its fall 2011 collapse, during which $1.6 billion worth of customer money went missing, according to a Tuesday filing.
Accused “flash crash” trader Nav Sarao attacked the U.S. Commodity Futures Trading Commission's suit against him Tuesday, saying his alleged spoofing couldn't have influenced the market he traded in.
The irony is that, while cooperation with the government is at an all-time high, so are the sanctions visited on cooperators. Many lawyers find it difficult to explain to their clients why cooperation was worth it when the settlement they negotiated still wound up requiring exceedingly large penalties, says Richard Morvillo, a former branch chief with the U.S. Securities and Exchange Commission's Division of Enforcement.
With continuing and robust focus by the U.S. Securities and Exchange Commission on fee and expense allocation practices — represented in the commission's recent action against Kohlberg Kravis Roberts & Co. — institutional investors are also now focusing on these issues and may in part base investment decisions on them, say attorneys with Arnold & Porter LLP.
Section 15(a)(1) enforcement actions by the U.S. Securities and Exchange Commission are nothing new, but the frequency of the enforcement actions, the severity of the penalties, and the lack of investor harm or allegations of fraud signal a new approach to enforcement in this area, says David Jenson of Stinson Leonard Street LLP.
The U.S. Supreme Court’s refusal to hear an appeal by Irving H. Picard over a Second Circuit ruling is a major blow to Picard’s expansive view of a trustee’s clawback power. The application of Section 546(e), as ruled by the Second Circuit, will require the dismissal of a substantial number of Picard’s claims against innocent Madoff victims, say attorneys with K&L Gates LLP.
The House and Senate return from the Independence Day recess this week facing a crowded July agenda. Richard Hertling and Kaitlyn McClure of Covington & Burling LLP map the issues, ranging from national transportation and infrastructure funding to the Export-Import Bank's lapsed charter to the slew of fiscal year 2016 spending bills.
The recent U.S. Securities and Exchange Commission settlements with 36 municipal underwriters under the Municipalities Continuing Disclosure Cooperation Initiative provide little transparency regarding the determination of the penalty amounts. It seems incongruous that the penalty imposed on a firm that is not self-reporting would be similar or even less than the penalties imposed on some self-reporting firms, say Kit Addleman and ... (continued)
Just when you thought it was safe to go back in the water and have a quiet summer, U.S. Securities and Exchange Commission Commissioner Luis Aguilar has hoisted the warning flags — targeting a number of cyber-related problems facing the securities industry, say Brian Rubin and Charlie Kruly of Sutherland Asbill & Brennan LLP.
An insider trading policy serves an educational function as well as a compliance function. Accordingly, those involved in drafting the policy should consider whether drafting in a “plain English” style, as opposed to a more legalistic and technical style, will better serve its objectives. These considerations may also impact the length and level of detail of the policy, says Manny Rivera of Norton Rose Fulbright LLP.
A recent U.S. Securities and Exchange Commission proceeding against a fund adviser, two independent trustees and an inside trustee reveals the SEC’s focus on the advisory contract renewal process. It is entering the boardroom and scrutinizing in great detail not only the information provided to fund trustees, but also how the trustees evaluate that information, says Jay Baris, chairman of Morrison & Foerster LLP's investment management practice.
It seems there is no more vehemently decried investment product than the variable annuity. But the truth is that variable annuities can form part of a balanced, effective portfolio if you avoid the red flags that can spawn annuity-related litigation, says Rhett Owens of Burr & Forman LLP.