Securities

  • July 7, 2015

    Pharma Co. CorMedix Faces Investor Suit After Stock Drop

    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.

  • July 7, 2015

    Edison Sued By Investors For Risking $3.3B CPUC Deal

    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.

  • July 7, 2015

    Stanford Receiver Seeks $5M From Coin And Gold Wholesaler

    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.

  • July 7, 2015

    Attys Net $21M For Work In MF Global Metal Manipulation Suit

    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.

  • July 7, 2015

    Allied Nevada Investors Rip Bid For Extra Ch. 11 Plan Time

    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.

  • July 7, 2015

    Investment Firm Can't Shake $55M Securities Suit

    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.

  • July 7, 2015

    Levi & Korsinsky Named Lead Counsel In 500.Com IPO Suit

    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.

  • July 7, 2015

    3 Takeaways From The 9th Circ.'s Insider Trading Ruling

    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.

  • July 7, 2015

    Telecom Execs Accused Of Seizing Co. Can't Issue New Stock

    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.

  • July 7, 2015

    Santander Comes To Terms With Fed On Risk Management

    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.

  • July 7, 2015

    Wyly Bros. Lose Bid For New Trial After $300M SEC Judgment

    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.

  • July 7, 2015

    Banks' Public Living Wills Leave Room For Improvement

    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.

  • July 7, 2015

    Senators Push Renewed Effort To Wall Off Investment Banks

    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.

  • July 7, 2015

    Ex-Bank Exec. Gets Time Served For $1.7B Olympus Scam

    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.

  • July 7, 2015

    IDreamSky Fights To Keep IPO Suit In NY Federal Court

    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.

  • July 7, 2015

    Feds Eye Plea Over $5M Twitter, Uber Ponzi Scheme

    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.

  • July 7, 2015

    Lehman Taking $67M Tax Credit Fight To 2nd Circ.

    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.

  • July 7, 2015

    Adams & Reese's $5M Stanford Deal Slammed Over Attys' Cut

    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.

  • July 7, 2015

    MF Global Execs Strike $65M Deal To Settle Investors' Claims

    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.

  • July 7, 2015

    'Flash Crash' Trader Blasts 'Arbitrary' CFTC Spoofing Case

    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.

Expert Analysis

  • Devaluing The Currency Of Settlements

    Richard J. Morvillo

    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.

  • KKR And The Evolving Scrutiny Of Private Equity Firms

    Veronica Rendon

    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.

  • The SEC Gets Aggressive With Unregistered Brokers

    David C. Jenson

    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.

  • 546(e) Safe Harbor Is Open To Madoff Victims

    Richard A. Kirby

    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.

  • This Week In Congress: Post July 4 Tumult

    Richard A. Hertling

    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.

  • MCDC Settlements Cast Doubt On Self-Reporter Leniency

    Kit Addleman

    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)

  • Cybersecurity For Brokers: 'Only The Paranoid Survive'

    Brian L. Rubin

    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.

  • Best Practices For Drafting Insider Trading Policies

    Excerpt from Lexis Practice Advisor
    Manny Rivera

    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.

  • SEC's Warning — Fund Trustees Are Fair Game

    Jay G. Baris

    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.

  • The Truth About Variable Annuities

    Rhett Owens

    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.