Securities

  • October 23, 2014

    Health Software Co. Escapes Class Claim Via 'Safe Harbor'

    A California federal judge this week tossed a shareholder class action against a health records software provider and its high-ranking directors and officers after finding that their optimistic projections about the future of electronic medical records fell under the safe harbor provision of the Private Securities Litigation Reform Act.

  • October 23, 2014

    Citigroup, Argentina Gird For New Court Date In Bond Fight

    A New York federal judge has set a court date for Argentina's fight to make payments on $8.4 billion in Argentine law-governed bonds — payments whose blockage custodian Citigroup Inc. says could expose it to criminal sanctions in the South American nation.

  • October 23, 2014

    Credit Suisse CEO Says Forex Probe Won't Be A Problem

    Credit Suisse Group AG’s CEO does not see any material issues coming from the ongoing investigations into manipulation of the $5.3 trillion foreign exchange market, he said in an investor call on the Swiss bank’s third-quarter earnings Thursday.

  • October 23, 2014

    Commodity Pool Operators Sued By CFTC Agree To Injunction

    A Florida federal court on Thursday granted the U.S. Commodity Futures Trading Commission's unopposed motion to enjoin the Miami-based Forex Monthly Income Fund LLC and its principals from investing, after the CFTC alleged fraudulent activity by the fund earlier this month.

  • October 23, 2014

    Firm Must Show Cash Trail In Client’s $6M Facebook Scam

    Miller Barondess LLP must hand over documents showing the source of $5.8 million that an alleged con artist client deposited with the firm as part of a bogus deal to buy pre-IPO shares of Facebook, a California judge ruled Thursday, saying the "sly" client used the firm in his scheme.

  • October 23, 2014

    Funds Dissatisfied With Simon Property CEO's Pay Revision

    Two pension funds launched another challenge to Simon Property Group CEO David Simon's pay in a derivative lawsuit unsealed late Wednesday, arguing revisions to his compensation made in the midst of a prior Delaware Chancery Court fight weren’t good enough and could hand him more than $150 million.

  • October 23, 2014

    Rothstein Atty Pleads Guilty In $2.4M Fraud Scheme

    A former Rothstein Rosenfeldt Adler PA attorney who allegedly participated in convicted Ponzi schemer Scott Rothstein’s $1.2 billion Ponzi scheme on Thursday pled guilty in Florida federal court to a wire fraud charge, saying he helped cause investors to lose $2.4 million.

  • October 23, 2014

    SEC Stuns ETF Industry In Bold Bid For Transparency

    The message the U.S. Securities and Exchange Commission delivered to BlackRock Inc. and other fund firms this week was sudden and unusual, attorneys say, but it also was unambiguous: There is no substitute for transparency when it comes to exchange-traded funds.

  • October 23, 2014

    Texas Securities Board Paves Way For Equity Crowdfunding

    The Texas Securities Board on Wednesday gave the green light to new equity crowdfunding rules in the Lone Star state, releasing Texas startup companies seeking funding from the red tape associated with registering their securities with the Securities and Exchange Commission.

  • October 23, 2014

    Bank Of England Shields Taxpayers In Failed-Bank Plan

    The Bank of England laid out a plan to handle future bank failures Thursday, saying it would act unilaterally over a “resolution weekend” to replace management and initiate stabilization transactions — a regime aimed at shielding taxpayers and the broader financial system from bearing the costs of the collapse. 

  • October 23, 2014

    Rengan Rajaratnam Settles SEC's Insider Trading Claims

    Rengan Rajaratnam has agreed to pay more than $840,000 and accept a securities industry bar to resolve the U.S. Securities and Exchange Commission's civil insider trading case, three months after the former Galleon Group LLC manager was acquitted of a related criminal charge, according to court papers filed Thursday.

  • October 23, 2014

    Dodd-Frank Spares TD Ameritrade Worker Suit, 3rd Circ. Told

    The Third Circuit was urged Thursday to allow an ex-TD Ameritrade Inc. worker's whistleblower suit to proceed in court under a provision of the Dodd-Frank Act allowing would-be informants to void arbitration clauses in their employment agreements.

  • October 23, 2014

    Wyly Wife Seeks Ch. 11 Protection In Face Of $101M SEC Debt

    The widow of Charles Wyly Jr. filed for bankruptcy protection Thursday, in the wake of a judgment worth hundreds of millions of dollars against the estate of the late Texas tycoon and his brother, Sam Wyly, for allegedly using secretive offshore trusts to trade stocks while evading taxes.

  • October 23, 2014

    Fed Wants Banks To Test For Severe 2015 Recession

    The Federal Reserve on Thursday said that banks will have to show how a severe global recession featuring a steep rise in the unemployment rate, soaring gas prices and, for the largest institutions, a large corporate default would affect their balance sheets in their 2015 stress tests.

  • October 23, 2014

    SEC Wins Asset Freeze Against Wyly Despite Bankruptcy

    The U.S. Securities and Exchange Commission on Thursday secured a freeze on Texas tycoon Sam Wyly’s assets a day after he filed for bankruptcy in Texas in the face of a looming offshore-trading penalty the SEC has pegged at $198 million.

  • October 23, 2014

    SEC Settles Case Against Alleged Rothstein Fraudster

    The U.S. Securities and Exchange Commission has settled its case against investment manager George Levin, just two days before a Florida trial in the suit accusing him of defrauding investors by contributing millions to now-imprisoned Scott Rothstein's $1.2 billion Ponzi scheme.

  • October 23, 2014

    Backstreet Boys To Recover Master Tapes In Settlement

    The Backstreet Boys have finally put to bed their bankruptcy dispute with boy-band entrepreneur Lou Pearlman and will be given back many masters as well as some cash.

  • October 23, 2014

    Tesco Chairman To Exit As Accounting Error Jumps To $421M

    Tesco PLC Chairman Richard Broadbent said Thursday that he intends to leave his position after the embattled U.K. retail chain announced that the amount by which the company overstated its profits was 263 million pounds ($421.4 million), 5 percent more than what the company first reported.

  • October 23, 2014

    Angie's List Has Firms Pay For Good Reviews, Suit Says

    Investors in Angie's List Inc. sued the online-review site Wednesday in Delaware Chancery Court, saying it secretly changed its business model of consumer-driven reviews to one that charged businesses for favorable placement.

  • October 22, 2014

    Feds Seek Leniency For Cooperator In SAC Capital Probe

    New York federal prosecutors are seeking leniency for a former mutual fund manager who pled guilty to trading on insider information from a Yahoo Inc. executive, citing her cooperation in an investigation that led to a $1.8 billion settlement with SAC Capital Advisors LP, according to a recent filing by her attorney.

Expert Analysis

  • New Lessons From Rural/Metro II For M&A Parties, Advisers

    Peter J. Rooney

    The Delaware Court of Chancery’s decision this month in the case of Rural/Metro Corp. Stockholders Litigation awarding nearly $76 million in damages against a seller’s financial adviser highlights the difficult strategic questions nonsettling defendants face by proceeding alone to trial, including whether to put on trial the conduct of the settling defendants, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • DOJ's 1st Anti-Spoofing Prosecution Reflects 2 Trends

    Marcus Christian

    The prosecution of Michael Coscia of Panther Energy Trading LLC is the first by the U.S. Department of Justice under the anti-spoofing provision of the Commodity Exchange Act. Given the current trends and dedication of substantial DOJ and Commodity Futures Trading Commission resources to commodities and securities fraud investigations, it would appear that more prosecutions are likely, say attorneys with Mayer Brown LLP.

  • Know The Collateral Consequences Of Financial Reg Action

    Eben P. Colby

    Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • Canada's Proposed Takeover Bid Rules Are Target-Friendly

    Ralph Shay

    Newly proposed amendments to Canada's takeover bid legislation would address long-standing concerns that the current regulatory regime tilts the playing field too far in favor of hostile bidders, says Ralph Shay of Dentons Canada LLP.

  • The Impact Of Boilermakers Continues To Be Felt

    Celia Taylor

    Relying on and further strengthening the import of Boilermakers Local 154 Retirement Fund v. Chevron Corp., a recent decision in a shareholder suit involving Chemed Corp. shows the power of boards to have their say as to where intracorporate litigation will take place and who will pay for it, says Celia Taylor of Sturm College of Law at the University of Denver.

  • 10 Things You Must Know Before Engaging In Crowdfunding

    Eliza Sporn Fromberg

    "Accredited crowdfunding" platforms offer the tantalizing possibility of raising funds with the click of a button, but it is vital to consider the regulatory scheme under which the platform operates and its managerial and financial resources, among other factors, say Eliza Sporn Fromberg, counsel at Day Pitney LLP, and Norbert Mehl, CEO of Global i Ventures.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • Novel Theory In Wyly Case Could Change SEC Disgorgement

    Bruce M. Bettigole

    The Southern District of New York ruling that Dallas billionaire Sam Wyly and the estate of his late brother are liable for the disgorgement of unpaid taxes in connection with securities fraud violations has set an important precedent in determining the monetary remedies the U.S. Securities and Exchange Commission may seek, say attorneys with Sutherland Asbill & Brennan LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.