Securities

  • August 1, 2014

    Dreamworks Hit With Investor Class Action Over 'Turbo' Flop

    DreamWorks Animation SKG Inc. was hit with a proposed securities class action in California federal court on Friday by an investor who says the company was too slow to take its $13.5 million write-down for the movie "Turbo," a cartoon about a snail with super-speed.

  • August 1, 2014

    SEC Wins Nearly $70M In Judgments Against Financial Firms

    A Tennessee federal judge ordered a brokerage and a financial holding company on Friday to disgorge $9.4 million and pay $55.9 million in penalties after a jury agreed with the U.S. Securities and Exchange Commission that they ran a Ponzi-style scheme targeting unsophisticated investors.

  • August 1, 2014

    Attys Can Use 'Confidential' Vocera Docs In Investor Suits

    A California federal judge on Thursday refused to block investors in two securities class actions accusing Vocera Communications Inc. of artificially inflating its stock prices from using purportedly confidential internal company documents, ruling investigators working for the plaintiffs' counsel didn't obtain them improperly.

  • August 1, 2014

    Barclays Can't Duck $94M Thornburg Trustee Suit

    A Maryland federal judge on Friday refused to free Barclays Capital Inc. from a $94 million suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to the real estate trust’s crisis-era collapse.

  • August 1, 2014

    2nd Circ. Clarifies Barriers To FINRA Arbitration

    The Second Circuit demarcated a barrier to Financial Industry Regulatory Authority Inc. arbitration on Friday, drawing sharp lines around the term “customer” and ending a Saudi family's bid to recoup $383 million from Citigroup Inc.

  • August 1, 2014

    SEC's Piwowar Urges Muni Disclosure Reform, Best Execution

    The municipal bond market is suffering from a lack of disclosure and transparency around fees and prices investors pay for the securities, while dealers in the sector need to be held to a higher standard when trading for customers, a Republican member of the U.S. Securities and Exchange said Friday.

  • August 1, 2014

    Duane Morris Gets NJ Malpractice Suit Tossed On Appeal

    A New Jersey appeals court on Friday affirmed a trial court's decision to toss a malpractice suit against Duane Morris LLP filed by a former shipping executive over a settlement the firm negotiated with Allstates WorldCargo Inc. over the size of its board, saying it agreed with the decision.

  • August 1, 2014

    10th Circ. Takes Narrow View Of Liability In Investor Suits

    The Tenth Circuit on Friday ruled that an action brought under Section 11 of the Securities Act of 1933 must show a defendant knew opinions in public statements were false when they were being made, joining the Second, Third and Ninth circuits in a question set to be answered by a high-profile Supreme Court case next term.

  • August 1, 2014

    AIG Investor Loses Bid To Bring Back Securities Suit

    The D.C. Circuit on Friday rejected a move by an American International Group Inc. investor to revive a putative class action against the insurance giant, finding a lower court correctly tossed the securities suit on jurisdictional grounds.

  • August 1, 2014

    McKenna Long Loses Bid For Sanctions In Malpractice Row

    A California federal judge on Thursday rejected McKenna Long & Aldridge LLP’s bid for sanctions against ex-client Heart Tronics Inc., which McKenna said brought its malpractice and fraud suit against the firm without proper jurisdiction, holding that the plaintiff’s failure to meet and discuss dismissal wasn’t "in bad faith."

  • August 1, 2014

    Bob Evans Calls Activist Sandell's Reforms 'Short-Sighted'

    The Bob Evans Farms Inc. board of directors again struck back at Sandell Asset Management Corp.'s attempts to reform the company, calling the activist investor's proposals "short-sighted" and "unsustainable" in a letter sent to shareholders Friday.

  • August 1, 2014

    Carlyle Not Backing Down In Massive LBO Collusion Suit

    While other big-name private equity shops have settled, the Carlyle Group LP on Friday indicated it wasn't ready to throw in the towel on a long-running suit accusing it and several other private equity firms of teaming up to depress prices in leveraged buyouts leading up to the financial crisis.

  • August 1, 2014

    Argentina's Failure To Pay Is A Credit Event, ISDA Says

    The International Swaps and Derivatives Association Inc. on Friday found that Argentina's failure to pay bondholders has constituted a "credit event," prompting an auction that could result in some $1 billion in payments on credit default swaps.

  • August 1, 2014

    Barclays Hit With Another Investor Suit Over Dark Pool

    Barclays PLC was hit with another investor proposed class action in California federal court on Thursday challenging its operation of secret trading “dark pools” that cater to predatory high-frequency traders, following a major securities fraud suit by the New York Attorney General bringing the issue to light.

  • August 1, 2014

    Real Estate Investment Runner Settles SEC Charges

    The U.S. Securities and Exchange Commission has reached a no-admit settlement with a Georgia man it says misappropriated at least $2.58 million from people who thought they were investing in “opportunistic” funds to buy real estate at the bottom of the late-aughts market.

  • August 1, 2014

    Regulators Put Off Asset Manager SIFI Designations, For Now

    U.S. financial regulators on Thursday shifted their focus on the risks giant asset management firms posed to the economy from the firms themselves to the products they offer, giving BlackRock Inc., Fidelity Investments and other firms a temporary reprieve from enhanced oversight as systemically important financial institutions.

  • August 1, 2014

    Ex-Evercore Banker Gets 30 Months For Insider Trading

    A former Evercore Partners Inc. banker was sentenced Friday to 30 months in prison after pleading guilty earlier this year to an insider trading scheme that authorities have said partly went to pay child support for his young child.

  • August 1, 2014

    Fairfax Financial Says Insider Trading Probe Targets CEO

    Canadian investment firm Fairfax Financial Holdings Ltd. on Friday disclosed that Quebec’s securities regulator is probing its top two officials as part of an insider trading investigation.

  • August 1, 2014

    Ex-Alstom VP Says FCPA Indictment Is Time-Barred

    A former Alstom SA vice president argued in Connecticut federal court Thursday that an indictment charging him with violating the Foreign Corrupt Practices Act in connection with an alleged bribery scheme linked to a $188 million contract in Indonesia is time-barred because of his resignation in 2004 from the company.

  • August 1, 2014

    Investor Demands Parker Drilling Execs' Names In FCPA Case

    A Parker Drilling Co. investor late Thursday requested the Delaware Chancery Court to compel the company to reveal the identities of former senior executives and outside counsel purportedly connected to a U.S. Foreign Corrupt Practices Act case it settled with the U.S. government for $16 million.

Expert Analysis

  • The Crisis: The More We Know, The Less We Understand

    Kathryn Judge

    Many of the early narratives about the causes of the recent financial crisis — for example, securitization — were woefully incomplete, raising significant doubts about the advisability of reforms based on them. It turns out that the investors buying mortgage-backed securities were not dupes, says Kathryn Judge, associate professor at Columbia Law School.

  • OPINION: Lawyers Should Think In Terms Of Big Data

    James H. Wendell

    The vast majority of civil cases in the United States settle before trial. Knowing how many on a particular topic were filed, how many settled, when they settled, and on what terms clearly would be useful to a lawyer advising a client. Big Data could make it possible — yet this type of research is generally ignored by lawyers, says James Wendell of Riddell Williams PS.

  • Understanding The Investment Adviser Regulatory Scheme

    Excerpt from Lexis Practice Advisor
    Gretchen Passe Roin

    Lawyers counseling investment advisers should be aware that the U.S. Securities and Exchange Commission does not view the Investment Advisers Act as imposing a comprehensive regulatory scheme. Rather, advisers are subject to a broad fiduciary duty to pursue the best interests of their clients, say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.

  • The Caremark Standard At Issue In Wal-Mart Bribery Case

    Celia Taylor

    The Delaware Supreme Court could use the ongoing Indiana Electrical Workers Pension Trust Fund IBEW v. Wal-Mart Stores case — related to alleged bribery by Wal-Mart's Mexican affiliate — as an opportunity to revisit and clarify the Caremark standard of corporate board obligations, says Celia Taylor of Sturm College of Law at the University of Denver.

  • A Case For Synthetic Investment In US Real Estate

    Jeffrey L. Rubinger

    As a result of the dramatic rise in foreign investment in U.S. real estate and federal income taxes imposed under the Foreign Investment in Real Property Tax Act, foreign investors should once again consider investing synthetically through a total return swap, especially considering a recent IRS ruling, says Jeffrey Rubinger of Bilzin Sumberg Baena Price & Axelrod LLP.

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • And Now A Word From The Panel: Top 10 Venue Arguments

    Alan E. Rothman

    As the Judicial Panel on Multidistrict Litigation heads to the “Heart of America” for its July 31 hearing, this column will take a bit of a detour from its regular format and present a top 10 list of arguments — some strange, yet true — made in support of a particular MDL venue, says Alan Rothman of Kaye Scholer LLP.

  • No Breach Of Fiduciary Duty, No Atty Fees

    Stewart D. Aaron

    The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.

  • What's Next For US Financial Regulation

    Dan Ryan

    With the “too big to fail” debate about to hit the headlines again when the Government Accountability Office releases its long-awaited TBTF report, the rhetoric calling for the completion of outstanding regulations will once again sharpen. This rhetoric should not be confused with reality, however, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • Tips For Recovery Under Mandatory Victims Restitution Act

    Paul Monnin

    The Mandatory Victims Restitution Act is a valuable tool to recover the expenses of a costly, yet necessary, internal investigation into a former employee’s criminal wrongdoing. Anticipate and plan for a necessity showing under the MVRA as a potential criminal matter is being investigated and after government cooperation has commenced, say Paul Monnin and Zachary LeVasseur of DLA Piper LLP.