Claims of unfair dealing by directors of Texas-based property management company Riverstone National who passed up a major investment opportunity and then "obliterated" some challenge rights by approving a $94 million merger just ahead of a lawsuit survived a dismissal bid in Delaware Chancery Court on Thursday.
Federal authorities filed charges Thursday against two more stock promoters in Florida who they say helped operate a $6 million pump-and-dump scheme in which they issued shares in fraudulent shell companies and sold them to investors at a profit.
A Florida bankruptcy judge on Thursday approved a $2.2 million deal between the trustee liquidating an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme and two insurers over their attempts to dodge millions in commercial crime insurance coverage.
A U.S. Commodity Futures Trading Commission fraud suit against a Georgia commodities pool operator ended Thursday with the entry of a $480,000 settlement.
A onetime business associate of former JPMorgan Chase & Co. investment banker Sean Stewart's father on Thursday told a Manhattan jury of how he traded in health care company stock after the elder Stewart slipped him tips, which prosecutors say were based off inside information.
A Minnesota federal judge certified a class of shareholders who claim a specialty tile retailer misled investors about its intertwined professional and personal relationships with an exporter and a supplier in China, ruling Thursday that the shareholders reasonably relied on the market for share price information.
A Massachusetts judge refused to quash allegations that media mogul Sumner Redstone did not know what he was doing when he removed Viacom Inc. CEO Philippe Dauman from the company's controlling trust, saying Thursday that questions over Redstone’s capacity remain in play.
A California federal judge has consolidated two class actions against Daimler AG over emissions testing “defeat devices” in certain Mercedes models and has approved Labaton Sucharow LLP as lead counsel.
New rules of practice governing the U.S. Securities and Exchange Commission's administrative proceedings, including extending the prehearing period up to 10 months, are set to become effective 60 days from Friday when the amendments are set to be published in the Federal Register.
Hercules Offshore Inc. equity holders filed an objection Wednesday in Delaware bankruptcy court against the company’s prepackaged Chapter 11 plan, challenging liability releases for directors, officers and lenders and claiming the plan was not proposed in good faith.
The Republican chairman of the House Committee on Science, Space and Technology said Wednesday he was “disappointed” that the attorneys general of New York and Massachusetts refused to comply with a subpoena scrutinizing their fraud investigations into whether ExxonMobil misled consumers and investors about climate change.
A Texas oilfield equipment vendor and its owner consented Wednesday to a civil judgment in response to a U.S. Securities and Exchange Commission complaint alleging that they carried out a Ponzi scheme that defrauded investors of more than $12 million using false promises that reselling used equipment would produce large profits.
A New York federal judge said Thursday that Grant & Eisenhofer PA is not entitled to a bigger chunk of fees for work it did with Bernstein Liebhard LLP in long-running securities litigation involving Fannie Mae, saying the firms’ fee-sharing agreement hinged on a condition that wasn’t met.
Resort property owners lost their suit accusing Credit Suisse AG and real estate firm Cushman & Wakefield inc. of a so-called loan-to-own scheme, with an Idaho federal court ruling on Wednesday that they hadn't shown the bank's allegedly inflated loans to developers undermined the development.
Kering Capital Ltd. wants an Illinois federal judge to free it from punishment by the Commodity Futures Trading Commission after the daughter of the firm's founder allegedly engaged in a "money pass" scheme to benefit the company while trading with Tanius Technology LLC, contending it was unaware of any wrongdoing.
Baker & McKenzie LLP has snared a top federal prosecutor with almost two decades in the U.S. Department of Justice for its litigation and government enforcement practice, the firm announced Thursday.
An investor who filed a putative class action suit against SeaWorld Entertainment Inc. for allegedly failing to tell shareholders a critical 2013 documentary caused an attendance drop at its theme parks told a California court Wednesday that the company clearly knew the film would hurt its business.
A Delaware Chancery Court proposed class action claiming damages from a “Ponzi-like” scheme involving real estate trusts and insider deals topping $1 billion moved toward federal court Thursday, part of a widening circle of litigation centered on interests of Texas-based United Development Funding III.
A couple the U.S. Securities and Exchange Commission accused of using the EB-5 immigrant investor program to scam nearly $27 million from Chinese investors in a cancer clinic asked a California federal judge Wednesday to free them from disclosing financial documents and investor funds they say could be incriminating.
A Georgia federal judge Wednesday granted the U.S. Securities and Exchange Commission’s motion for an asset freeze against three executives the agency claims diverted $5.6 million in investors' money from an Atlanta amusement park project.
A New York federal court's decision this week in the case of Lyondell Chemical Co. is a stark reminder of how principles of agency law can result in the imputation of a single officer’s or director’s fraudulent intent on an entire company for purposes of actual fraudulent transfer claims, say attorneys with King & Spalding LLP.
The U.S. Department of Justice's recent settlement with ICAP and Tullett Prebon — restructuring their proposed $1.5 billion transaction — serves as an important reminder that Clayton Act Section 8 is not only a compliance issue, but also an important consideration in mergers and acquisitions and other areas that may affect the composition of a board of directors, say Michael Bernstein and Francesca Pisano of Arnold & Porter LLP.
The increasingly close relationship between banks and marketplace lending platforms, as well as the uncertainty surrounding state usury limits, have led to speculation that marketplace lenders may ultimately obtain bank charters. A fundamental issue is whether the equity and institutional investment markets will provide a stable long-term source of funding for the industry, say attorneys with K&L Gates LLP.
The Freddie Gray case and the U.S. Supreme Court ruling regarding former Virginia Governor Robert McDonnell demonstrate how the government replaces juries, eliminating an important community decision maker and a check on governmental power, says Professor Suja Thomas of the University of Illinois College of Law.
Recent efforts by the U.S. Department of Justice and the U.S. Securities and Exchange Commission to determine where to draw the line between active and passive investing will have an immediate impact on hedge fund activism. The results of the two agencies’ efforts — in pursuit of different policy objectives — will become increasingly tricky and significant, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.
Because there will never be enough free lawyers to satisfy demand from low-income Americans, we need to leverage technology to allow the legal expertise of one lawyer to reach hundreds or thousands of clients at once, say Jonathan Petts and Rohan Pavuluri, co-founders of startup nonprofit Upsolve.
It is a mistake to assume that a stockholder that does not own 51 percent of a company’s equity is free from the constraints that apply to controlling stockholders. Recent Delaware cases provide key insight into when minority stockholders can be deemed controlling stockholders, and the level of judicial review that applies to agreements with affiliates of the controlling stockholders, say attorneys with Paul Hastings LLP.
Rejecting the contention by Dell Inc. that the final merger consideration was the best evidence of its fair value, the Delaware Chancery Court recently concluded that the fair value of Dell's common stock at the time it was taken private was approximately 28 percent higher than the final merger price. RSM US LLP's Boris Steffen, who frequently serves as a testifying expert in M&A litigation, dissects the court's analysis and highli... (continued)
While there is not much that is new about the uniform bar exam’s components, what is new is that where you take the bar exam may make the difference between passing and failing. Half of the score depends on the strength of the applicant pool in the jurisdiction where the candidate wrote the exam, which may lead to “UBE shopping,” says Suzanne Darrow-Kleinhaus, director of bar programs at Touro Law Center.
The U.S. Department of Justice's recent decision to close its Foreign Corrupt Practices Act investigation of Johnson Controls without charges provides a glimmer of hope that self-disclosure under the so-called pilot program might just be worthwhile, says William Steinman of Steinman & Rodgers LLP.