Creditors of OCZ Technology Group Inc. urged a Delaware bankruptcy judge on Monday to not approve a proposed $7.5 million settlement of a shareholder class action, saying the deal shouldn't be blessed until they've had a chance to look into all the estate's claims.
A longtime attorney for Samuel E. Wyly and Charles Wyly is negotiating with the U.S. Securities and Exchange Commission to settle claims that he helped the billionaire brothers run a $550 million securities racket, his lawyer said on Monday.
Sentinel Management Group Inc.’s former chief financial officer testified Monday that the investment firm wasn’t entirely forthright with customers about its financial health and risky trading strategy leading up to its 2007 collapse, as her old boss’s trial on charges that he oversaw a $500 million fraud continued in Chicago.
With the Supreme Court set to resolve a circuit split over whether a long-standing class action tolling provision should apply to certain securities suits, some attorneys say a failure to allow potential class members to join securities class actions already in the works could clog the litigation pipeline for plaintiffs and defendants alike.
A New York federal judge on Monday entered default judgment in favor of the U.S. Securities and Exchange Commission and against two Chinese electronic companies accused of misleading investors about the use of money from public offerings, ordering the companies to pay a total of almost $33 million.
The government’s star witness in a trial against five former Bernie Madoff associates is a serial liar and “villain” who testified merely to save his own skin, a defense attorney said on Monday during closing arguments in the blockbuster case.
A French businessmen accused of blocking a foreign bribery investigation into a mining company pled guilty in New York federal court Monday to obstructing the probe into whether BSG Resources Ltd. paid bribes to win lucrative mining rights, according to the U.S. Department of Justice.
Bankrupt Liberty Medical Supply Inc. launched an adversary suit Friday alleging that former owner Medco Health Solutions Inc. breached the terms of their 2012 sale agreement, costing Liberty tens of millions of dollars and spurring its quick decent into Chapter 11.
A Washington, D.C., federal judge on Monday dismissed claims from a suit brought by a Depository Trust & Clearing Corp. unit that accuses the U.S. Commodity Futures Trading Commission of making anti-competitive policy changes that benefited rivals, finding the agency's actions aren't reviewable under the Administrative Procedure Act.
Investment bank Oppenheimer Holdings Inc. is under investigation by the U.S. Securities and Exchange Commission, related to the alleged sale of unregistered penny stocks by its brokers, it revealed on Friday.
A federal judge on Monday approved a consent judgment that settles U.S. Securities and Exchange Commission claims against Frank Mazzola and his two firms for $500,000, concluding a two-year case involving funds set up to buy securities in Facebook Inc. and other companies ahead of their initial public offerings.
A Delaware judge on Friday sided with shareholders who had contested advice given by RBC Capital Markets LLC in the 2011 private equity buyout of an ambulance operator, a decision experts say amplifies scrutiny on investment banks in the deal-making process and emboldens investors to challenge them in court.
A Cablevision Systems Corp. shareholder filed suit Friday against founder Charles Dolan and his family in a Delaware state court, alleging the company's profits have been diluted by widespread nepotism and exorbitant salaries that value bloodlines over experience.
The Wet Seal Inc. added three independent members on Monday to its board of directors as the California-based retailer, which markets apparel to teenage girls, faces pressure from a potential buyout campaign by activist hedge fund Clinton Group Inc.
The path to success for women is the same as it is for men — building relationships, delivering an excellent work product and earning the trust of your clients by serving as both a legal and strategic business adviser. I must confess, however, that I also had to learn to drink scotch and play golf, says Linda Goldstein, chairwoman of Manatt Phelps & Phillips LLP's advertising, marketing and media division.
I will never forget stories I heard of what it was like to be a woman attending law school in the early 1960s, which included being called up to the front of the class to answer the professor’s questions on designated "Ladies’ Days," says Yuliya Oryol, chairwoman of Nossaman LLP's puplic pensions and investments practice group and administrative partner for the firm's San Francisco office.
The U.S. Supreme Court on Monday agreed to weigh in on whether its decision in American Pipe & Construction Co. v. Utah — which held that filing a putative class action stops the statute of limitations from running for would-be class members — applies equally to statutes of repose, after the Second Circuit refused to allow a group of retirement systems to intervene in a securities fraud class action.
The U.S. Supreme Court on Monday declined a convicted stock promoter's request to reconsider sentencing guidelines for securities fraud convictions so restitution payments would be based on a calculation he claims is closer to victims' actual losses.
EBay Inc. on Monday rejected a pair of board nominees proposed by Carl Icahn, fanning an ongoing feud with the billionaire activist investor who claimed the same day that mismanagement by the company's CEO has cost shareholders more than $4 billion.
Morgan Lewis & Bockius LLP announced Monday that it had scored a major coup, luring a multidisciplinary team of four experienced tax, regulatory, investment and securities attorneys to its Boston, New York and Washington, D.C., offices to serve clients across the energy and infrastructure industries.
One facet of the Hong Kong initial public offering process that has been considered recently in quite a bit of detail by regulators and market professionals is the use of pre-deal research reports produced by analysts at financial institutions. New regulatory guidelines raise concerns about policing analysts and the information provided to them, and one way to allay those concerns would be to ban pre-deal research altogether, says David Neuville of Cadwalader Wickersham & Taft LLP.
The economy has had a marked impact on the alternative dispute resolution industry, but much of that impact comes directly from the new dynamics between law firms and their clients. ADR providers have been keen observers of these trends and are learning to react creatively. It’s not all a bed full of roses from the ADR side, but there have been some positive changes, says Chris Poole of JAMS.
The Delaware Court of Chancery recently rejected a party’s attempt to object to the production of documents located in France on basis of the French Data Protection Act. Given the court’s reputation and influence in corporate litigation, In re Activision Blizzard Inc. Stockholder Litigation does not augur well for foreign parties hoping to resist U.S.-style discovery on basis of their country’s data privacy statute, says Pierre Grosdidier of Haynes and Boone LLP.
Cloud users must know how to use the cloud responsibly to prevent later difficulties with document production. When negotiating a cloud service agreement, users should look for certain services that will prove useful when responding to discovery requests, such as comprehensive search options, instant suspension of the auto-delete function, and preservation of metadata and embedded data, say attorneys with Sidley Austin LLP.
It is clear that the drafters of the real estate investment trust provisions in Rep. David Camp’s, R-Mich., tax reform discussion draft are not fans of the conversion of corporations to REIT status, spinoffs of REITs from operating companies, or the creation of REITs other than “traditional REITs.” The proposed provisions — intended to prevent the “erosion of the corporate tax base” — are clearly “overkill,” say attorneys with Goodwin Procter LLP.
In the year since the U.S. Supreme Court's decision in Comcast Corp. v. Behrend, nearly 200 cases have cited the ruling, but the only consensus reached is that its significance for class actions is unsettled. However, notwithstanding the lower courts’ inconsistent application of Comcast's “rigorous analysis” of damages model evidence, a few guiding principles have emerged, say Erik Snapp and Quinn Shean of Dechert LLP.
The U.S. Supreme Court has agreed to review the Sixth Circuit’s decision in Indiana State District Council of Laborers v. Omnicare Inc., which parts ways with the Second, Third and Ninth circuits and holds that “subjective falsity” is not required for opinion-based Section 11 claims. Although the circuit split is hogging all the attention, everyone seems to be overlooking the fact that the Sixth Circuit in Omnicare ignored its own precedent, says Drew Dropkin of King & Spalding LLP.
On Wednesday, the U.S. Supreme Court heard oral arguments in Halliburton v. Erica P. John Fund and will soon decide on "injury presumed" reasoning applied in the context of securities class actions. If the court eliminates the only federal construct for presuming injury and reliance in class actions, it will be difficult to argue that similar presumptions accurately reflect transactions in the markets for everyday consumer goods, say Andrew Tuck and Kristen Bromberek of Alston & Bird LLP.
In Lawson v. FMR LLC — the first whistleblower case heard under the Sarbanes-Oxley Act — the U.S. Supreme Court recently held the law protects virtually anyone hired by a publicly traded company, or its employees, either directly or indirectly, and forbids reprisal for a huge range of fraud reports. The decision throws into doubt the Fifth Circuit's ruling last year in Asadi v. GE Energy LLC and will likely reshuffle future whistleblower opinions, says R. Scott Oswald of The Employment Group PC.
In an age of heightened litigation risk and motivated regulators, private equity and other investment firms cannot focus simply on their own legal compliance, but must remain diligent with respect to the portfolio companies in which they invest. Ways to mitigate secondary liability risks include requiring the election of a majority of independent directors at the portfolio company, say Ari Berman and Amy Tankersley of Vinson & Elkins LLP.