Securities

  • August 22, 2014

    DOJ Emerges As Dominant Force In Big Bank Deals

    Bank of America Corp.’s nearly $17 billion settlement with the U.S. Department of Justice and other major deals that big banks have reached with the government signal the DOJ is taking a leading role among enforcement agencies in securing hefty payouts from large institutions in connection with selling toxic mortgage-backed securities leading up to the financial crisis, experts say.

  • August 22, 2014

    Moody's Cost US Billions, Says Ex-Analyst's FCA Suit

    A former Moody's Corp. analyst accused the credit rating firm of giving false ratings to toxic mortgage-backed securities in the lead-up to the 2008 financial crisis, costing the government billions of dollars, in a massive False Claims Act complaint unsealed Friday after the government declined to intervene.

  • August 22, 2014

    BofA To Settle SEC Fraud Suit Over $850M In RMBS

    Bank of America Corp. and subsidiary Merrill Lynch will settle a lawsuit brought by the U.S. Securities and Exchange Commission alleging the bank defrauded investors in the sale of $850 million in residential mortgage-backed securities, according to a motion for a stay filed in North Carolina federal court on Friday.

  • August 22, 2014

    Ex-Qualcomm Exec Now Pleads Guilty In Insider Trading Row

    A former Qualcomm Inc. director has changed his plea to guilty in the case against him and others for allegedly using inside information to buy $500,000 dollars' worth of Atheros Communications Inc. stock before Qualcomm scooped it up in 2011, according to documents entered Friday in California federal court.

  • August 22, 2014

    2nd Circ. Ruling No Call For Reviving SOX Suit, JPMorgan Says

    Nothing in a recent Second Circuit decision affirming the dismissal of a Sarbanes-Oxley Act whistleblower suit against AECOM Technology Corp. supports reviving a SOX case from a former JPMorgan Chase & Co. worker allegedly axed for flagging potential fraud, JPMorgan told the appeals court Friday.  

  • August 22, 2014

    Foreign Investors Ask High Court To Revive EnerMax Suit

    Foreign investors claiming defunct oil exploration company EnerMax stole millions of dollars from them through a joint-venture scheme told the U.S. Supreme Court in a brief made public Friday that the Fifth Circuit wrongly upheld a district judge's dismissal of their case.

  • August 22, 2014

    3 Years In, SEC Whistleblower Office Earns Name For Itself

    Just three years after opening for business, the U.S. Securities and Exchange Commission's Office of the Whistleblower has started to earn a name for itself by defending its program in court, making headlines with big awards and dramatically increasing its visibility through an all-hands-on-deck publicity campaign.

  • August 22, 2014

    SEC's $729M Judgment Would Bankrupt Wylys, Defense Says

    An attorney for Texas tycoon Sam Wyly and the estate of his late brother Charles Wyly Jr. told a New York federal judge Friday that the U.S. Securities and Exchange Commission’s request for a $729 million fraud judgment could “bankrupt” the defendants.

  • August 22, 2014

    GM Investors Eye Internal Checks Amid Ignition Switch Crisis

    General Motors Co. shareholders filed an amended derivative suit Thursday seeking internal control reforms at the company that investors can vote on to increase oversight of the automaker's disclosure processes following the ignition switch scandal and give shareholders more say over safety-related issues.

  • August 22, 2014

    Goldman To Pay $3B To Settle FHFA's Toxic-MBS Suit

    Goldman Sachs & Co. said Friday that it has agreed to pay more than $3 billion to settle the Federal Housing Finance Agency's claims that it knowingly sold Fannie Mae and Freddie Mac toxic mortgage-backed securities in the run-up to the housing market collapse in 2007.

  • August 22, 2014

    Ex-SAC Trader Says 8-Year Sentence Would Be Overly Harsh

    Mathew Martoma, the former SAC Capital Advisors LP trader convicted of engineering a $275 million windfall from insider tips about Wyeth Corp. and Elan Corp., told a New York federal court Thursday that the eight-plus-year sentence requested by the government was out of proportion to recent punishments in similar cases.

  • August 22, 2014

    Ex-Barclays Rep Fires Back At SEC Over 'Parking' Charge

    Attorneys for a former Barclays Capital Inc. bond trader accused of a fraudulent “parking” scheme sought to poke holes Thursday in the U.S. Securities and Exchange Commission's case against their client, saying enforcement attorneys failed to prove he willfully broke any laws.

  • August 22, 2014

    Judge Trims Intuitive Surgery Device Securities Class Action

    A California federal judge on Thursday trimmed claims alleging Intuitive Surgical Inc. made false financial reports amid a defect in its robotic surgical equipment, ruling such forward-looking statements are typically included in securities filings while preserving other claims alleging securities fraud.

  • August 22, 2014

    PE Plaintiffs Hit Back At Carlyle In Antitrust Expert Row

    Plaintiffs accusing the Carlyle Group LP of anti-competitively colluding with other private equity giants argued Thursday that the firm was trying to change its tune about why certain expert testimony should be excluded from an upcoming trial.

  • August 22, 2014

    Cuban Not Running Mavs Into Ground, Appeals Court Rules

    A Texas appeals court declined Friday to reopen a suit attempting to put the NBA's Dallas Mavericks into receivership, saying Texas law doesn't allow that kind of meddling as long as the team was current on its bills — despite stakeholder Hillwood Investment Properties III Ltd.'s allegations that Mark Cuban mismanaged the franchise's finances.

  • August 22, 2014

    Rep. Urges SEC To Appeal DC Circuit On Stanford Ponzi Relief

    A Louisiana congressman, whose constituents include victims of Robert Allen Stanford, has urged the U.S. Securities and Exchange Commission to fight a recent D.C. Circuit ruling that said many investors in the $7 billion Ponzi scheme are not entitled to Securities Investor Protection Corp. relief.

  • August 22, 2014

    NY Firms' Fees Row Over IPO Securities Suits Hits Court

    Brower Piven APC has hit Harwood Feffer LLP with a suit in New York federal court, alleging Harwood owes the law firm nearly $170,000 in referral fees connected to a consolidated securities action over the late 1990s initial public offerings of dozens of companies.

  • August 22, 2014

    CFTC Orders NY Firm, Execs To Pay $3M In Metals Trades

    The U.S. Commodity Futures Trading Commission has ordered a New York state-based telemarketing firm and its two owners to pay back customers nearly $3 million to settle claims they violated a provision of the Dodd-Frank Act that bars off-exchange, financed transactions in precious metals with retail customers.

  • August 22, 2014

    Energy Co. Loses Damages Appeal In Microcap Fraud Suit

    An oil and gas company can't recover damages from a broker-dealer and an individual it alleged were involved in a microcap stock manipulation scheme that caused it to lose $7 million, a California appeals court ruled Friday, upholding a lower court's ruling axing a jury verdict in the case.

  • August 22, 2014

    Valeant, Ackman To Request Allergan Special Meeting

    Activist investor Bill Ackman will reportedly request on Friday a special meeting where Allergan Inc. shareholders can vote on a proposed board overhaul, a potentially game-changing step as he tries to back the reluctant company into a $53 billion takeover by Valeant Pharmaceuticals International Inc.

Expert Analysis

  • Corp. Governance Politics: Much Ado About Symbolic Change

    Edward B. Rock

    The rhetoric used by shareholder activists on all sides should be taken with a large pinch of salt — most issues described as momentous generally are not — and these symbolic battles may divert attention from more meaningful reform, say professors at the New York University School of Law and the University of Pennsylvania Law School.

  • 4th Circ. RJR Pension Case Could Change ERISA Landscape

    Myron D. Rumeld

    If the Fourth Circuit's reasoning in Tatum v. RJR Pension Investment Committee is adopted elsewhere the case could substantially impact the future conduct of fiduciary breach litigation as well as plan practices in administering stock funds, say Myron Rumeld and Russell Hirschhorn of Proskauer Rose LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.

  • Books And Records Increasingly An Open Book

    Daniel E. Wolf

    In theory, companies have a number of ways to challenge books-and-records demands, but a progression of Delaware cases — including a Wal-Mart shareholder suit — has shown that such demands have increasingly generated expensive and time-consuming document production exercises and provided an avenue to trawl for documents that could facilitate derivative litigation, say Daniel Wolf and Matthew Solum of Kirkland & Ellis LLP.

  • Inside 2nd Circ. Ruling On Overseas Whistleblower

    Mary Beth Hogan

    For companies with global operations, the Second Circuit's recent decision in Liu v. Siemens AG should provide at least some level of comfort that allegations by foreign employees regarding conduct exclusively outside the United States are outside the reach of Dodd-Frank’s anti-retaliation provision, say attorneys with Debevoise & Plimpton LLP.

  • How The Rule 506(c) Income Safe Harbor Got Expanded

    J. Robert Brown Jr.

    Recent guidance from U.S. Securities and Exchange Commission staff effectively expands the reach of the Rule 506(c) safe harbor for income verification in a manner arguably inconsistent with the representations made in the adopting release, permitting self-certification in place of third-party verification, says J. Robert Brown Jr. of Sturm College of Law at the University of Denver.

  • Picard Powerless To Block Independent Madoff Settlements

    Jonathan Sablone

    The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • 3 New Weapons To Combat Shareholder Litigation

    Jordan D. Temple

    Class action shareholder litigation continues to be at the forefront of recent developments in corporate law, but courts in various jurisdictions have recently been chipping away at such aggressive litigation. Companies now have more options in defending against these suits, says Jordan Temple of Parker Poe Adams & Bernstein LLP.

  • From The Book Of Jargon: 10b5-1 Plan

    In this short video — the latest from the "Book of Jargon" — Latham & Watkins LLP partner Stephen Wink defines U.S. Securities and Exchange Commission Rule 10b5-1.

  • Lessons From SEC Focus On Compliance Officers

    Louis Greenstein

    The two recent U.S. Securities and Exchange Commission proceedings involving Penson Financial Services Inc. and Private Capital Management Inc. illustrate the continued focus of SEC enforcement on the duties and potential liability of compliance officers, say attorneys with McGuireWoods LLP.