Securities

  • April 1, 2015

    BREAKING: SEC Wins Fla. Trial Against Rothstein Fund Manager

    A Florida federal jury on Wednesday found investment manager George Levin liable on every count brought by the U.S. Securities and Exchange Commission for his involvement funneling investor money into Scott Rothstein's $1.2 billion Ponzi scheme.

  • April 1, 2015

    Russia's Rosneft Settles Battles Over Yukos Breakup

    Russian state oil company Rosneft said Tuesday it has settled a raft of international legal claims in connection with the alleged destruction of onetime oil giant Yukos Oil Co., whose breakup unleashed a wave of litigation and led to a $50 billion arbitration award for former Yukos shareholders in 2014.

  • April 1, 2015

    Gov't Has No Sovereign Immunity In $17M DBSI Tax Row

    An Idaho federal judge said Tuesday that the government cannot assert sovereign immunity to dodge a claim filed by the trustee of DBSI Inc. — a bankrupt real estate firm whose president and other officers were convicted of securities fraud — seeking the return of the bulk of $17 million in taxes.

  • April 1, 2015

    2nd Circ. Revives AIG Investors' $60M Stock-Drop Suit

    The Second Circuit Court of Appeals on Wednesday revived a $60 million stock-drop suit accusing American International Group Inc. of multiple fraud schemes, saying that a district court erred when it abruptly tossed the suit without notifying the plaintiffs in advance.

  • April 1, 2015

    SEC Focus On Financial Reports Is Fodder For Plaintiffs

    Though the price tag of class action settlements has dwindled and filings against big companies have fallen, one area of securities litigation appears to be a bright spot for the plaintiffs bar, and investors may have the U.S. Securities and Exchange Commission to thank for it, according to a Cornerstone Research report issued Tuesday.

  • April 1, 2015

    JPMorgan Pans 'London Whale' Shareholder Case In 2nd Circ.

    An attorney for JPMorgan Chase & Co., CEO Jamie Dimon and other executives urged the Second Circuit on Wednesday not to revive a shareholder suit over the bank’s $6 billion “London Whale” trading loss, denying claims that board members had failed to adequately investigate those responsible for the mishap.

  • April 1, 2015

    AMD Can't Escape Securities Suit Over Chip Launch

    A California federal judge refused Tuesday to dismiss allegations that chipmaker Advanced Micro Devices Inc. concealed catastrophically low yields of a vaunted new chip, saying the class of investor plaintiffs made a “strongly persuasive” case for all of its claims — even bad faith by company executives.

  • April 1, 2015

    PE Adviser Tilton Lobs Latest Suit Over SEC In-House Courts

    Private equity adviser Lynn Tilton on Wednesday became the latest respondent to a U.S. Securities and Exchange Commission enforcement action to challenge the constitutionality of its in-house court, when she sued the agency just two days after it accused her of defrauding investors in her distressed-debt funds.

  • April 1, 2015

    SEC Brings 1st Whistleblower Action Over Employee Agreement

    The U.S. Securities and Exchange Commission on Wednesday brought its first enforcement action against a company for attempting to stifle the whistleblowing process through improperly restrictive language in a confidentiality agreement.

  • March 31, 2015

    Wal-Mart Escapes Investor Suit Over Mexican Bribery Claims

    An Arkansas federal judge on Tuesday dismissed a consolidated shareholder derivative suit accusing Wal-Mart Stores Inc.'s board of concealing Mexican bribery claims from investors, ruling the plaintiffs failed to show the board knew about the supposed bribery or alleged efforts to torpedo a thorough investigation.

  • March 31, 2015

    HSBC Must Face Suit Over 271 RMBS Trusts

    A New York federal judge on Tuesday took the reins in a suit accusing HSBC Bank USA NA of shirking its duties as trustee for 271 residential-mortgage-backed securities trusts after determining the district court had subject matter jurisdiction over the case.

  • March 31, 2015

    Fund Manager Insists He Tried To Help Rothstein Victims

    Counsel for investment manager George Levin went for short and sweet in his defense Tuesday, focusing exclusively on how Levin helped his clients after they lost money in Scott Rothstein's $1.2 billion Ponzi scheme, but the Securities and Exchange Commission said it was not much.

  • March 31, 2015

    Revolving-Door Roundup: Gibson Dunn, Sidley, WilmerHale

    In this month's roundup of attorney moves between public and private practice, we finally find out what firm landed the U.S. Department of Justice's former No. 2 official. Other highlights of this month's edition include a CFTC official who's leaving for Gibson Dunn & Crutcher LLP and a top Manhattan U.S. Attorney's Office task force chair who's finding greener pastures at WilmerHale.

  • March 31, 2015

    Exide Investors Seek Class Cert. In Enviro Issues Suit

    Shareholders of bankrupt automotive and industrial battery maker Exide Technologies Inc. on Monday urged a California federal judge to certify their investor class action, arguing that the putative class suffered a common injury when Exide executives hid the company’s failure to comply with environmental regulations.

  • March 31, 2015

    Baupost Pushes For OK On Bargain-Basement Madoff Claim

    Hedge fund Baupost Group LLC bumped heads with a New York bankruptcy judge Tuesday, pushing to consummate its deeply discounted purchase of a claim against the Bernard Madoff bankruptcy estate that later turned out to be worth $230 million and appeared to be on track until it was halted by the Second Circuit in January.

  • March 31, 2015

    EU Lawmakers Advance Measure To Clean Up Benchmarks

    European Union lawmakers advanced a measure on Tuesday to clean up benchmarks used to price EU citizens’ mortgages, loans and bonds in a bid to make them more trustworthy after the influential tools have endured rigging scandals in recent years.

  • March 31, 2015

    HP Seeks $5.1B from Autonomy Execs Over Fraud Allegations

    Hewlett-Packard Co. followed up on earlier indications and filed suit in a London court this week against two former Autonomy Corp. executives seeking $5.1 billion in damages over “fraudulent activities,” according to a statement released by the company Tuesday.

  • March 31, 2015

    Ex-Merck VP Says Investors 'Overstate' Omnicare Impact

    Attorneys for a former Merck & Co. Inc. vice president accused of lying about study results on Vioxx's heart attack link told a New Jersey federal court Tuesday that, contrary to the investors' argument, the U.S. Supreme Court's recent Omnicare ruling actually supports his motion to dismiss the case.

  • March 31, 2015

    US Wants Depos Delayed In Fannie, Freddie Takeover Row

    The federal government on Tuesday urged the U.S. Court of Federal Claims to delay depositions in a suit alleging the U.S. unconstitutionally altered Fannie Mae and Freddie Mac's bailout deal to keep profits for itself, until fights over potentially hundreds of privileged documents are resolved.

  • March 31, 2015

    Mizuho, Resona, ICAP Dismissed From Yen Libor Class Action

    A New York federal judge on Tuesday dismissed a pair of Japanese banks and a London-based markets operator from class action litigation alleging some of the world’s banks fixed yen-denominated Libor rates, saying plaintiffs did not prove a direct link between the defendants and the United States.

Expert Analysis

  • How Non-US Investigations Are Breeding US Securities Suits

    Kevin M. LaCroix

    As regulators in Latin America and around the world become increasingly more active, it has become more likely that non-U.S. companies that have securities trading on U.S. exchanges become involved in a U.S. securities class action lawsuit, such as the one against Chemical & Mining Co. of Chile Inc., which is entangled in an ongoing corruption and tax evasion scandal, says Kevin LaCroix of RT ProExec.

  • Schwab Case Opens Litigation Doors Most Thought Closed

    Jeffrey B. Maletta

    A Ninth Circuit opinion in a mortgage-backed securities-related case, Northstar Financial Advisors Inc. v. Schwab Investments, charts potential new pathways for claims for damages resulting from portfolio losses by mutual fund shareholders. However, the court’s opinion is inconsistent with established principles of investment company governance and litigation, say attorneys with K&L Gates LLP.

  • Ethics In The Tech Age: What Every Lawyer Should Consider

    J.S. “Chris” Christie Jr.

    In light of recent changes to the ABA Model Rules of Professional Conduct, what are a lawyer’s ethical duties arising from new technology? And what should a lawyer know about this technology? Bradley Arant Boult Cummings LLP partner J.S. “Chris” Christie Jr. offers an in-depth assessment of what every lawyer should consider in 2015.

  • China's Plan For State-Owned Enterprises Impacts FCPA Risk

    Ryan Bonistalli

    Although the details of China’s recently announced plan to restructure and consolidate its state-owned enterprises are still unknown, the prospect of any change to China’s vast SOE network raises potentially significant considerations for legal and compliance officials dealing with the definition of “foreign official” under the Foreign Corrupt Practices Act, say Ryan Bonistalli and Alex Brackett of McGuireWoods LLP.

  • A Rising Tide Of AML Reg Actions — And What We Can Learn

    Olivia A. Radin

    As recent settlements demonstrate, regulators will focus on the nuts and bolts of Bank Secrecy Act/anti-money laundering compliance programs, including how transactions are monitored, how information is shared, and what controls are in place to detect, escalate and report suspicious activity, says Olivia Radin of Freshfields Bruckhaus Deringer.

  • The Odds Are Stacked Against Insider Trading Defendants

    Derrelle M. Janey

    Experienced counsel complained that the use of administrative hearings for complex fraud cases, including in the insider trading case of Jordan Peixoto, had constitutional implications. Ironically, few were willing to litigate this issue with the U.S. Securities and Exchange Commission, say Derrelle Janey and Robert Gottlieb of Gottlieb & Gordon LLP.

  • Mediation And The Thorny Issue Of Settlement Authority

    Douglas H. Flaum

    Many mediation orders state that attendees must have “full settlement authority” without providing clarity as to what that term actually means. Attendance by just outside counsel or a corporate spokesperson is not enough, even if someone else with full settlement authority is just a phone call or keystroke away, say Douglas Flaum and Kevin Broughel of Paul Hastings LLP.

  • Biomet Again Underscores FCPA Risks In Life Sciences

    Gary Giampetruzzi

    While few details have been disclosed relating to the historic extension of Biomet Inc.'s deferred prosecution agreement, its warning is clear — where prosecutors question a company’s candor, cooperation or remediation of issues, the grip of formal oversight will not be easily released, say attorneys with Paul Hastings LLP.

  • A Closer Look At Madoff Victims' PwC, Citco Suit

    Christine Vargas Colmey

    A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.

  • What Experts Can Say About Inadmissible Facts During Trial

    Jason McDonell

    For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.