Private equity firm JH Partners LLC has agreed to pay a $225,000 penalty for allegedly obtaining interests in several of its funds' portfolio companies by lending the companies money without telling the funds about the loans or potential conflicts of interest, the U.S. Securities and Exchange Commission said Monday.
Three foreign banks added as defendants to a class action claiming a group of banks orchestrated a conspiracy to rig the foreign exchange market asked a New York federal judge Monday to drop them from the litigation, arguing the court has no jurisdiction over them.
Moore Capital Management LLC asked a New York bankruptcy court Tuesday to turn Lehman Brothers Holdings Inc.'s withdrawal of claims in a $20 million fight over swap agreements into a with-prejudice dismissal, after Lehman allegedly wasted 18 months’ worth of Moore’s time and money.
A California federal judge has dismissed a securities class action against review site Yelp Inc. claiming it oversold the authenticity of its reviews and thereby pumped up its stock price, saying a few businesses’ complaints to the Federal Trade Commission didn’t constitute evidence of wrongdoing.
The U.S. Commodity Futures Trading Commission is selling its plans to regulate automated trading with a pledge to keep a light touch in the area, but its interest in inspecting the computer code behind firms’ trading strategies will leave many in the industry worried about the government’s ability to keep a grip on the highly sensitive data.
A “political intelligence" firm that provided policy updates to hedge funds will pay $375,000 to the U.S. Securities and Exchange Commission, admitting that it failed to ensure nonpublic health care policy information was kept from clients, the agency announced Tuesday.
In response to an uptick in requests by commercial mortgage backed securities borrowers to change the terms of their deals soon after securitization, Fitch Ratings Ltd. has put borrowers on notice that it will not hesitate to downgrade or not confirm an existing rating if such deals add new risk to the loan package.
The Federal Reserve on Tuesday announced it is creating a formal process through which employees can flag any potential problems they find relating to the agency’s oversight of large financial institutions, which the Fed says will make it easier to respond to internal concerns over its regulatory authority.
A disbarred former attorney pled guilty in Las Vegas federal court Tuesday to participating in a $5 million fraud scheme orchestrated by a Swiss investment firm whose name is an acronym for "Make a Lot of Money."
IEX Group, the trading venue profiled in Michael Lewis' best-seller “Flash Boys,” defended its bid to become a registered national securities exchange Monday, telling the U.S. Securities and Exchange Commission that delaying orders by a fraction of a second will rightly reduce the advantage of the fastest traders.
The CEO of Life Time Fitness on Monday asked a Minnesota federal judge to dismiss a proposed shareholder class action claiming the company’s $2.8 billion private equity buyout undervalued the company and was supported by a misleading proxy statement, calling the allegations “speculative.”
ITT Educational Services Inc. will pay $16.9 million in a securities settlement preliminarily approved Monday by a New York federal judge, after investors had accused the company of hiding or downplaying the extent to which increasing student-loan defaults were affecting its bottom line.
A Louisiana federal judge on Monday dismissed the last part of a proposed class action claiming bankrupt ATP Oil & Gas Corp.’s top brass misled shareholders about the company’s liquidity after drilling moratoriums enacted following the Deepwater Horizon oil spill.
Financial services company The Bancorp Inc. asked a Delaware federal court on Monday to dismiss claims by a putative class of investors that it concealed loan losses and Bank Secrecy Act compliance issues before a stock drop, saying “fraud-by-hindsight” allegations don’t hold water.
Attorneys representing a Lehman Brothers subsidiary on Tuesday defended a lawsuit against a subsidiary of Australia's ANZ Bank seeking to claw back more than $17.1 million, telling a New York bankruptcy judge that ANZ's argument that the funds fall outside the court's jurisdiction is misplaced.
In a bid to improve market transparency, the Federal Reserve said Tuesday that it wants the country’s largest banks to disclose the amount of high-quality liquid assets they hold and other key liquidity data on a quarterly basis.
The U.S. Commodity Futures Trading Commission on Tuesday unveiled plans to regulate automated trading on the futures markets, proposing new controls and registration requirements that it says should curb the risks that computerized trading poses to the financial system.
The Second Circuit on Monday rejected a protest from a hedge fund Ponzi schemer's father to the distribution taking place in the wake of the $723 million scheme, saying he can't point to other distributions as evidence he's been harmed.
Nearly a year after the Second Circuit reshaped the insider trading landscape with its landmark Newman decision, an Illinois man has made a long-shot bid to get the U.S. Supreme Court to weigh in on the issue. But while Bassam Salman’s chances are slim, he may actually benefit from the government’s failed attempt at a high court review.
Facebook CEO Mark Zuckerberg and other company executives can immediately appeal a Delaware Chancery Court’s refusal to let them out of a shareholder derivative suit over an increase in director pay, according to an order posted Friday.
The amendments to the Federal Rules of Civil Procedure scheduled to take effect Dec. 1 are designed to usher in a new era in the U.S. litigation system, this time acknowledging that what was once known as “e-discovery” is now just discovery. The amendments are sweeping in scope, but none is more important than the revised Rule 37(e), say Gregory Leighton and Eric Choi of Neal Gerber & Eisenberg LLP.
The rules of the game have changed to accommodate the evolving dynamics of capital formation in the 21st century. Attorneys with White and Williams LLP highlight 10 key items that all potential issuers, investors and intermediaries need to consider before deciding to participate in securities-based crowdfunding.
Peeling away the various arguments of stockholder activists and their often larger-than-life personas lays bare the gritty details of the ways stockholder activists actually take positions in their companies and what, if any, notice a company may have of such a position. Discerning where they may pop up next requires nuance and sophistication, says Ed Batts of DLA Piper.
Recognizing that defendants have no duty and little incentive to object to an inflated class counsel fee request, and that class counsel have every incentive to increase their fees, Judge Richard Posner and the Seventh Circuit have filled this void by directing “intense judicial scrutiny” of class counsel fee awards. In doing so, the court identified issues all counsel now should consider when crafting a class action settlement, sa... (continued)
The U.S. Securities and Exchange Commission has issued two new compliance and disclosure interpretations of the so-called “unbundling rule” as part of the political reaction against inversions. However, the new, separate vote required on material corporate governance changes in M&A represents process without substance and is unlikely to have a practical effect, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
The conclusions of a recent scholarly article, “Seven Myths of Boards of Directors,” questioning the realistic financial liability exposure of corporate directors are persuasive and may offer comfort to many board members. But the data on which the authors rely is based on out-of-pocket payments in civil litigation. And the universe of risks confronting directors is increasingly from more diverse sources, says Michael Peregrine of ... (continued)
With increased attention by the U.S. Securities and Exchange Commission and Equal Employment Opportunity Commission regarding employer-employee agreements, it is vital that all severance agreements containing a broad general release or confidentiality provision include certain language, says Jennifer Fontaine of Paul Plevin Sullivan & Connaughton LLP.
As companies prepare for the 2016 proxy season, the number of adopted proxy access bylaws has almost doubled in recent months, and at least two new forms of proxy access shareholder proposals have appeared. Attorneys with Sullivan & Cromwell LLP outline key elements of these terms and proposals and suggest possible company responses.
A growing number of attorneys and firms are eschewing tradition by embracing technology to change not only the way we work, but also the way we organize our offices, says Anthony Johnson, founder and CEO of American Injury Attorney Group.
Over the past 35 years, Joe Kanka has experienced the corporate legal department from many angles, including management positions at a major law firm litigation support center, two legal staffing companies, and inside AT&T and Bell Atlantic. Here, he shares his 13 key business objectives that corporate legal departments must strive for in today’s business environment.