Securities

  • June 30, 2016

    Compliance Pros Still Face Risk In NY Money Laundering Rule

    Bank compliance officers are breathing a little easier now that New York state will not require them to certify their firms’ anti-money laundering protocols under a final rule released Thursday, but attorneys think the state’s past aggressive enforcement actions should keep those executives on guard.

  • June 30, 2016

    Del. Court Tosses $1.2B Philips-Volcano Merger Suit

    A shareholder group challenge to Philips Holding USA Inc.'s $1.2 billion purchase of medical device maker Volcano Corp. fell to a dismissal order Thursday, with a Delaware vice chancellor declaring that a solid tender-offer ratification gave the 2015 deal business judgment protection.

  • June 30, 2016

    Ex-AXA Broker Tells Jury Underling Sent Unapproved Emails

    Broker Steven S. Novick said Thursday at his $20 million breach of contract trial against two AXA units that he sent an email about an unapproved potential investment to one of his then-bosses, but blamed a former subordinate for dozens of similar unauthorized missives even though they were sent under his name.

  • June 30, 2016

    Ex-Nutmeg Group Owner Seeks To Bar Testimony In SEC Trial

    The owner of defunct investment advisement firm The Nutmeg Group LLC and his son asked an Illinois federal court Wednesday to bar the U.S. Securities and Exchange Commission from presenting evidence on damages in a suit claiming they had improperly transferred funds and failed to disclose it to investors, saying the commission was attempting to sneak in unqualified experts.

  • June 30, 2016

    Vt. Regulators, Firm Reach $6M Settlement In Ski Resort Row

    The Vermont Department of Financial Regulation said on Thursday it has reached a $5.95 million settlement with Raymond James & Associates in connection with an enforcement action related to the financial services firm's involvement in an alleged scheme to defraud EB-5 investors in the Jay Peak ski resort.

  • June 30, 2016

    China Invites Foreign PE Funds To Boost Its Capital Markets

    Chinese securities regulators will permit foreign-owned private equity funds to open domestic offices, hoping to broaden the appeal of the country’s capital markets to international investors, according to a statement Thursday on a government website.

  • June 30, 2016

    SEC Loses Fraud Case Against TMST Mortgage Execs

    Two executives at mortgage lender TMST Inc. defeated U.S. Securities and Exchange Commission claims that they hid $428 million in losses when a New Mexico federal jury handed down a verdict in their favor Wednesday.

  • June 30, 2016

    Chancery Fast-Tracks Koch Case That Could Spur Oxbow Sale

    A Delaware chancery judge agreed Thursday to fast-track a dispute over William I. Koch's Oxbow Carbon LLC and whether minority investor Crestview Partners LP is looking to oust him to force a sale, setting a trial for as early as November.

  • June 30, 2016

    SeaWorld Wants Amended Investor Class Action Beached

    SeaWorld asked a California federal court on Wednesday to dismiss the latest complaint from a proposed class of investors accusing the theme park operator of failing to tell shareholders that its drop in attendance had been caused by a 2013 documentary, saying the claim still comes up short in linking the movie to corporate performance.

  • June 30, 2016

    1st-Ever Convicted 'Spoofer' Asks For Probation

    The first person convicted of the new post-financial-crisis offense of criminal “spoofing” asked a Chicago federal judge Wednesday for a sentence of probation, citing the vagueness of the law at the time and his settlements with regulators. 

  • June 30, 2016

    AOL Dropped From $238M Millennial Merger Class Challenge

    AOL Inc. was abruptly dropped Thursday from a shareholder suit alleging financial disclosure violations before the company’s $238 million merger with Millennial Media Inc., after a Delaware vice-chancellor warned he was struggling to see any reason to keep the company in the case.

  • June 30, 2016

    Attys Want Out Of SEC Fraud Suit Against 'Stalker' CEO

    Two attorneys accused by the U.S. Securities and Exchange Commission of helping purported "stalker" and private equity CEO Benjamin Wey manipulate shares on Wednesday asked a New York federal judge to dismiss the claims against them, calling the allegations time-barred and weak.

  • June 30, 2016

    UK Political Upheaval Could Delay Brexit Talks Until 2017

    British political leaders caught in political turmoil on Thursday moved to push back the start of talks to leave the European Union into 2017, extending the period of regulatory uncertainty.

  • June 30, 2016

    Chamber Urges Justices To Weigh In On Calif. Securities Suits

    The U.S. Chamber of Commerce and two investment industry groups have urged the Supreme Court to review whether Cyan Inc. shareholders alleging initial public offering misrepresentations can bring claims in California state court, saying federal law bars such securities claims from the state level.

  • June 30, 2016

    FCA Rules Out Market Abuse 'Reasonableness' Defense

    The U.K.’s Financial Conduct Authority will leave the "reasonableness" defense out of new market abuse rules that start in July despite protests from industry participants, the regulatory body said in new guidelines published Thursday.

  • June 30, 2016

    Judge Sinks Late Bid For $100M Egypt Bond Debt Trial Delay

    A Manhattan federal judge on Thursday turned aside an eleventh-hour bid by Egyptian businessmen Ramy and Michel Lakah to delay a trial that will decide if they may be held liable in arbitration to debt investors including UBS AG for $100 million in bond debt that the two brothers controlled.

  • June 30, 2016

    Picard Begins $190M Distribution To Madoff Investors

    The liquidation trustee for Bernard Madoff's failed securities firm on Thursday said he has started to hand out about $190.2 million to investors who fell victim to Madoff’s Ponzi scheme, bringing the total recovery to about $9.47 billion.

  • June 30, 2016

    Petrobras Asks 2nd Circ. For Stay In Investor Row

    Brazilian oil giant Petrobras asked the Second Circuit on Wednesday to slam the brakes on a rapidly approaching shareholder trial in New York district court, saying an expedited appeal of its challenge to class certification won’t be decided until that trial is over, increasing the pressure to settle the “massive” suit.

  • June 30, 2016

    Affymetrix Investor Settles Suit Over $1.3B Thermo Fisher Sale

    An Affymetrix shareholder will settle proposed class claims alleging the biotech’s $1.3 billion buyout by Thermo Fisher resulted from a curtailed sales process due to a conflict of interest with its financial adviser, Morgan Stanley, according to a letter in California federal court.

  • June 30, 2016

    EU Adopts New Rules On Securities Consumer Information

    The European Commission on Thursday released finalized rules governing the type of information that companies must now provide to retail consumers when selling investment products, in a bid to boost consumer confidence in the sector.

Expert Analysis

  • The Latest Trend In Non-GAAP Reporting

    Jiang Bian

    In light of the increasing scrutiny from investors and regulators of financial results that do not reflect generally accepted accounting principles, a gradual shift from the practice of excluding significant stock-based compensation in earnings reports seems to be occurring at established companies, say Jiang Bian and Rupert Russell of Shartsis Friese LLP.

  • NY Should Unify Standards For Atty Fees Against State Agency

    Matthew T. McLaughlin

    Two bills introduced in the recently ended New York legislative session, if adopted into law, will provide government entities and Freedom of Information Law practitioners with the mooring of predictable and consistent outcomes in FOIL proceedings by changing the standard for determining attorneys’ fee awards, say Matthew McLaughlin and Benjamin Argyle of Venable LLP.

  • Apex Fund Case Is A Warning For Fund Administrators

    Jessica M.H. Brown

    Hedge fund administrators that take direction from fund managers for net asset value calculations and performance reporting to investors should consider themselves on notice with the U.S. Securities and Exchange Commission's recent action against Apex Fund Services, says Jessica Brown of Winston & Strawn LLP.

  • EB-5 Investors Could Fill The Restaurant Funding Void

    Roger A. Bernstein

    Restaurants seeking to expand are finding traditional financing options hard to come by, but the EB-5 program is proving to be a viable alternative. Restaurants are easy for foreign investors to understand and the food industry creates more jobs than virtually any other U.S. business sector, says Roger Bernstein at American Life Investments LLC.

  • Takeaways From Delaware's Energy Transfer Ruling

    Gregory Pryor

    The Delaware Chancery Court's recent opinion that Energy Transfer may terminate a merger agreement based on the lack of a tax opinion highlights the importance of fully considering the implications of conditions precedent, say Gregory Pryor and William Dantzler of White & Case LLP.

  • How To Manage Your Law School Debt After Graduation

    Andrew Josuweit-headshot.jpg

    Student loan debt can feel overwhelming to new lawyers, especially when just getting started post graduation. Andrew Josuweit, co-founder and CEO of Student Loan Hero Inc., reviews the loan repayment plans available and discusses the best path forward for recent grads shouldering law school debt.

  • Tips For Drafting Best-Interest Contracts Under DOL Rule

    Clifford Kirsch

    Practitioners drafting agreements to satisfy the U.S. Department of Labor’s new best-interest contract exemption will need to ensure the contract also conforms to the financial institution’s related customer agreements and disclosures and employs terms designed to protect the firm, say Clifford Kirsch and Allison Wielobob of Sutherland Asbill & Brennan LLP.

  • Digging Deep Into The Last Decade's Securities Class Actions

    Michael Klausner

    The increase in the volume of securities class actions over the 2006-2015 period has been associated with indicators of low-quality cases, which appear to have been litigated disproportionately by a group of firms that until 2009 had a relatively small share of the federal securities class action market, say Michael Klausner and Jason Hegland of Stanford Law School.

  • Dodd-Frank Reform, Not Repeal

    Daniel F. C. Crowley

    The Financial Choice Act, recently proposed by the Republican chairman of the House Financial Services Committee, addresses specific provisions of the Dodd-Frank Act that are widely viewed as controversial, many of which have bipartisan support for reform, say attorneys with K&L Gates LLP.

  • Madden High Court Denial — Much Ado About Not Much

    Brian S. Korn

    The U.S. Supreme Court’s refusal to hear Madden v. Midland Funding will cause nonbank assignees to avoid purchasing certain loans made in the three states affected by the Second Circuit. But by denying certiorari, the Supreme Court has localized the damage caused, say Brian Korn and Richard Gottlieb of Manatt Phelps & Phillips LLP.