A New York federal court on Friday sentenced two former Vitesse Semiconductor Corp. executives to three years’ probation after they pled guilty to manipulating company records to thwart an expected stock-options backdating investigation by federal authorities.
Deutsche Bank AG sued billionaire investor Alexander Vik in New York court on Thursday, to force him to make good on his obligation to pay a $300 million judgment a London court awarded the bank last month over unpaid margin calls made in violation of several verbal contracts.
DLA Piper was hit with an $80 million lawsuit in New York state court on Friday by two Cayman Islands investment funds that say the law firm helped their investment manager misappropriate more than $36 million to cover payments owed by an investment vehicle that dealt in mortgage-backed securities.
Three General Electric Co. units will pay $18 million to end part of their involvement in multidistrict litigation accusing them and other financial institutions of colluding to rig bids in the municipal bond derivatives market, according to a filing in New York federal court Friday.
Barnes & Noble Inc. told investors Thursday that it is being investigated by the U.S. Securities and Exchange Commission for its accounting, including an employee’s allegation that the company improperly reported some of its information technology expenses.
A New York state judge has temporarily barred a Brooklyn attorney and two condominium developers he represents from participating in condominium- and securities-related work in New York during a suit against them over alleged construction defects in their new development, the state attorney general said Friday.
A former Goldman Sachs Inc. trader who pled guilty to fraudulently building an $8.3 billion futures position on Friday received a nine-month prison sentence and was ordered to pay back the $118 million his illicit trades cost the firm.
A Pennsylvania appeals court upheld on Thursday a nonjury trial decision that a special committee for Irex Corp. properly valued the company’s stock at $66 per share for purposes of a cash-out merger.
The federal government on Wednesday asked the U.S. Supreme Court to hear a challenge to a hedge fund's bid to enforce subpoenas seeking information on Argentina's non-U.S. assets in order to collect on $1.5 billion in defaulted bonds, saying such discovery tramples on foreign states' sovereign immunity.
Though regulators are set to unveil the long-awaited Volcker Rule on Tuesday, banks will still have to brace for additional confusion over the ban on proprietary trading as industry groups gear up for an all but certain court challenge to the regulation.
Goldman Sachs Group Inc. must face allegations it lied to HSH Nordbank AG about the quality of the loans in $110 million worth of mortgage-backed securities, a New York state judge has ruled, finding that it hadn't waited too long to sue under German law.
A Texas federal judge denied class certification for investors facing losses in the aftermath of BP PLC's Deepwater Horizon rig explosion in 2010, after determining Friday that the investors' damages calculation was too murky to earn certification in light of a recently bolstered standard from the U.S. Supreme Court.
A D.C. federal judge approved a $153 million class action settlement Friday for investors who accused housing giant Fannie Mae and accounting firm KPMG LLP of putting out misleading financial reports, the largest such settlement in the D.C. Circuit since 1996.
PNC Financial Services Group Inc. on Friday announced an $89 million settlement with Freddie Mac, making it the latest bank and the second within a week to bring to a close mortgage repurchase claims with the government-controlled firm.
A federal judge signaled Thursday he might fine Bank of America Corp. more than $1 million, a penalty amount favored by the institution, for defrauding Freddie Mac and Fannie Mae through a mortgage program.
A Minnesota federal judge on Thursday rejected Thomas J. Petters’ “last-ditch attempt” to escape punishment after being convicted of running a $3.7 billion Ponzi scheme and using the ill-gotten profits to buy Polaroid Corp. and other companies, calling the appeal his “final con.”
A New York federal judge said Thursday that sanctions must be imposed against counsel from Wolf Haldenstein Adler Freeman & Herz LLP who filed an allegedly frivolous consolidated securities class action claiming AOL Inc. bought millions of its shares at artificially depressed prices before announcing a $1 billion patent sale.
A former Dell Inc. manager who provided investment firm professionals with inside information was sentenced to probation Thursday, dodging a prison term after he cooperated with prosecutors in investigations, including that of SAC Capital Advisors LP's Michael Steinberg.
Lululemon asked a New York federal judge on Wednesday to toss a consolidated shareholder complaint accusing the retailer of inflating its stock after consumers discovered its yoga pants were see-through, arguing that investors failed to prove that the company made misleading statements.
Defunct brokerage firm John Thomas Financial Inc. and CEO Anastasios “Tommy” Belesis have each agreed to pay $500,000 to settle a U.S. Securities and Exchange Commission suit alleging they aided a hedge fund manager's fraud, the agency said Thursday.
While the sheer volume of tips received this year underscores the impact the U.S. Securities and Exchange Commission whistleblower program has had on enforcement activities in its second year of operation, the continuing pattern of diversity among whistleblowers is also noteworthy. Any concerns about the commission’s ability to adequately publicize the program have seemingly been laid to rest, says Steven Goldschmidt of Ropes & Gray LLP.
Companies should carefully consider the interaction of the various timing requirements under Regulation FD and Form 8-K. Filing of a Form 8-K is not required until four business days after initial disclosure, but to take advantage of the filing exception for nonwritten communications, the earnings call must take place no more than 48 hours after the earnings release is filed on Form 8-K, says Michael Zeidel of Skadden Arps Slate Meagher and Flom LLP.
The U.S. Securities and Exchange Commission has generally not concerned itself with improper conduct involving embargoed countries. But the SEC’s complaint in the recent Weatherford International Ltd. case suggests that the agency takes the position that inaccurate accounting of transactions with embargoed countries can result in violations of the Exchange Act, say attorneys with Ropes & Gray LLP.
Any bank that interacts with a municipal entity should review the new municipal adviser rules to ensure that its activities are in compliance. Advice to a municipal entity or obligated person, for example, about the purchase of guaranteed investment contracts, municipal derivatives or investment strategies, could cause a bank to be deemed a municipal adviser, say attorneys with Goodwin Procter LLP.
Regarding the petition for certiorari in Dudenhoefer v. Fifth Third Bancorp, the solicitor general recently opined that only the presumption of prudence regarding employer stock being a proper legal standard for evaluating breach of fiduciary duty claims warrants the U.S. Supreme Court's review. Although presumably the high court will show deference to the solicitor general’s opinion, the high court should do just the opposite, say H. Douglas Hinson and Emily Costin of Alston & Bird LLP.
What is the thinking as to whether leaky air conditioner cases warrant multidistrict litigation treatment? On Dec. 5, the Judicial Panel on Multidistrict Litigation heads to Vegas to find out. This will bring a temperature shift in more ways than one from the September hearing, where the panel considered a potential MDL proceeding arising from allegedly defective clothes dryers, says Alan Rothman of Kaye Scholer LLP.
If the U.S. Supreme Court review in Halliburton II results in an outcome that significantly reduces the feasibility of class proceedings, we likely will see more plaintiffs put through their evidentiary paces on the element of reliance and a judiciary more amenable to rigorously exploring the evidence of same. Such a return to parity should find support from all constituencies seeking justice in the securities litigation arena, say Matthew Matule and Aaron Morris at Skadden Arps Slate Meagher & Flom LLP.
Because Latin American countries differ substantially from one another, there is no effective one-size-fits-all approach to anti-corruption compliance in the region. That said, companies doing business in the region should be aware of a number of recurring compliance concerns that may lead to an increased risk of violating the FCPA or other applicable anti-bribery laws, say attorneys with Debevoise & Plimpton LLP.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
In a recent decision, the U.S. District Court for the Northern District of Georgia held that whistleblowers claiming retaliation under Dodd-Frank are not entitled to a jury trial. The decision provides the first authoritative answer to one of several statutory issues still working their way through the courts, say attorneys at King & Spalding LLP.