Securities

  • August 31, 2016

    Stockholders Say Horsehead Ch. 11 Sale Plan Ignored Market

    A “fully baked” but allegedly undervalued company plan for the sale of bankrupt Horsehead Holding Corp. might have discouraged other buyers with better offers, a financial adviser for stockholders who stand to lose everything in the more than $450 million deal testified on Wednesday.

  • August 31, 2016

    NY AG Sued For Docs On Climate Probe Coordination

    A free-market advocacy group hit the New York Attorney General’s Office with a lawsuit Wednesday, looking to make the office cough up any common interest agreements it may have signed with other states or parties in the pursuit of investigations into oil companies' allegedly misleading statements about climate change.

  • August 31, 2016

    Stanford Receiver's $35M Chadbourne Deal Gets Final OK

    A Texas federal judge on Tuesday signed off on a $35 million settlement between Chadbourne & Parke LLP and the receiver overseeing recovery for victims of R. Allen Stanford’s $7 billion Ponzi scheme.

  • August 31, 2016

    AIG, Others Battle Hedge Funds For $500M BofA Payout

    American International Group Inc., BlackRock Financial Management and other institutional investors on Wednesday urged a New York judge to reject a move by hedge funds to claim the lion’s share of $500 million in remaining residential mortgage-backed securities settlement funds from Bank of America Corp., saying to do otherwise would negate the intent of the deal.

  • August 31, 2016

    Avalanche Aims To Ditch IPO Suit Over Eye Drug

    Avalanche Biotechnologies Inc. on Wednesday asked a California federal judge to toss a proposed investor class action alleging it knew a gene therapy for vision loss didn't work before its public offering, saying the plaintiffs had failed to prove that the company learned halfway through clinical trials that the treatment wasn’t effective.

  • August 31, 2016

    Ex-Visium Hedge Fund Manager To Get 'Co-Conspirator' List

    A New York federal prosecutor failed to convince a judge Wednesday that the government needn’t turn over to a former portfolio manager for health care-focused hedge fund company Visium Asset Management LP a list of people the manager allegedly conspired with to defraud investors.

  • August 31, 2016

    Full 7th Circ. Won't Review $16.5M Centaur Ch. 11 Clawback

    The Seventh Circuit on Tuesday denied a request for en banc review of a July decision made by a former shareholder of a racetrack and casino seeking to avoid returning $16.5 million to the bankruptcy estate of Centaur LLC.

  • August 31, 2016

    Ex-Duane Reade CEO To Pay $6.2M To Cover Legal Fees

    A New York federal judge on Tuesday lowered the restitution rate for the former CEO of Duane Reade Inc. from $7.6 million to $6.2 million to cover legal fees for the company, after the Second Circuit last year said the initial amount was too high.

  • August 31, 2016

    NY Judge Relies On Del. 'Business Judgment' To Back Merger

    Shareholders of a bulk shipping company can't block its merger with its parent company, because the companies' boards both acted rationally when deciding to combine, a New York state judge ruled Thursday, citing Delaware’s “business judgment” rule for shareholder suits.

  • August 31, 2016

    Judge OKs Receivership Claims Process Tied To EB-5 Case

    A Washington federal judge on Tuesday signed off on a proposed process for claims against receivership entities tied to a real estate developer accused in a $136 million EB-5 fraud case brought by the U.S. Securities and Exchange Commission.

  • August 31, 2016

    2nd Circ. Mulls ERISA Breach Test In 'London Whale' Action

    The Second Circuit tussled Wednesday with the U.S. Supreme Court's standard for adequately pleading breach of fiduciary duty under the Employee Retirement Income Security Act, with one judge calling the "more harm than good" test convoluted, as JPMorgan Chase workers sought to revive class claims tied to the $6 billion "London Whale" debacle.

  • August 31, 2016

    MetLife, Units Hit With $15M In Punitives For Ponzi Scheme

    MetLife and various subsidiaries were hit with $15 million in punitive damages on Wednesday evening after a verdict blaming the insurer and others for the disappearance of about $280,000 in retirement savings in a Ponzi scheme.

  • August 31, 2016

    Valspar Fights Attys' Fees Bid In Suit Over $11.3B Merger

    Paint maker The Valspar Corp. on Tuesday told a Delaware judge that a proposed class of investors claiming its directors withheld key information from stockholders pertaining to a $11.3 billion sale to The Sherwin-Williams Co. shouldn’t get an award of attorneys' fees, saying the lawyers did little work and achieved no benefit.

  • August 31, 2016

    RBC To Pay $2.5M For Proxy Statement Disclosure Violations

    RBC Capital Markets LLC will pay the U.S. Securities and Exchange Commission $2.5 million as part of a settlement for the investment bank’s alleged false and misleading valuation analysis that made the 2011 Rural/Metro Corp. sale to Warburg Pincus look more attractive than it actually was.

  • August 31, 2016

    Louis Berger Settles Suit With Former Exec Over Bribery

    The Louis Berger Group Inc. has reached a settlement in one of the two lawsuits the company filed in New Jersey state court against former executives over their bribery of foreign officials, criminal activity that ultimately led the business to pay a $17.1 million penalty.

  • August 31, 2016

    9th Circ. Sends Exec. Fraud SEC Case Back For Jury Trial

    A Ninth Circuit panel on Wednesday reversed a lower court’s decision to toss the U.S. Securities and Exchange Commission's accounting fraud allegations against two former executives of Basin Water Inc., saying the agency was wrongly denied its right to a jury trial. 

  • August 31, 2016

    Enron Investors Want Dismissal Of UBS Suit Undone

    A proposed class of retail investors asked a federal judge in Texas on Tuesday to reconsider her decision to toss their 13-year-old suit alleging UBS Financial brokers hid Enron's fraud from them, because they were wrongly denied a chance to amend the claims to show the brokers had a duty to disclose signs of trouble.

  • August 31, 2016

    HeartWare Says Investor Suit Over FDA Regs Is 'Opportunistic'

    A shareholder suit against HeartWare International Inc. over a new heart pump product is “opportunistic” and based entirely on implausible inferences drawn from hindsight after a clinical trial failed, the company said Tuesday, urging a New York federal judge to toss the suit.

  • August 31, 2016

    Financial Planning Coalition Argues For DOL Fiduciary Rule

    A coalition of financial planning industry groups urged a Texas federal judge Wednesday to end a challenge to a U.S. Department of Labor rule that requires more retirement account advisers to act in their clients’ best interests, saying the regulation will not harm the industry.

  • August 31, 2016

    Revolving-Door Roundup: DLA Piper, Kirkland, Gibson Dunn

    August was a slow month for the revolving door, but three top firms nonetheless took on experienced government attorneys, with Gibson Dunn and DLA Piper nabbing veteran prosecutors and Kirkland & Ellis LLP bringing in a former investment management regulator.

Expert Analysis

  • CAB Rules Won't Get Private Funds To Their Destination

    Michael B. Koffler

    While the final “capital acquisition broker” rules recently approved by the U.S. Securities and Exchange Commission offer an intriguing alternative to the traditional private fund placement agent model, many private fund sponsors likely will find them too restrictive to serve their needs, say attorneys with Sutherland Asbill & Brennan LLP.

  • Reconciling The Practice With The Business Of Law

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    The tension between practicing law and managing the firm is giving way to the realization that the latter had been largely overlooked, meagerly funded, and often underappreciated, says Dr. James Bailey, a professor at George Washington University School of Business and the keynote speaker at the Legal Marketing Association Southeast conference in September.

  • Is SEC Cooperation Credit Worthwhile?

    Junaid A. Zubairi

    In many cases, self-reporting to the U.S. Securities and Exchange Commission will yield substantial benefits. However, once a company decides to self-report and cooperate, it should be prepared to present evidence of a thorough internal investigation, remedial efforts and improvements to internal processes implemented as a result of misconduct, say Junaid Zubairi and Brooke Conner of Vedder Price PC.

  • REBUTTAL: Establishing Standards And Norms In Mediation

    William A. Ruskin

    A recent Law360 guest article asks whether by signing a mediation confidentiality agreement a lawyer surrenders the power to protect his client against inappropriate mediation conduct. The short response to this concern is that parties to a mediation should refuse to execute such an agreement that removes all future recourse against the mediator, no matter how egregious the mediator’s actions, says William Ruskin of Gordon Rees Scu... (continued)

  • Board Interlocks In Antitrust Enforcement Hot Seat

    Andrea Agathoklis Murino

    Recent activity by the U.S. Department of Justice and the Federal Trade Commission make clear that enforcement of Section 8 of the Clayton Act — the prohibition against interlocks between competitors — is alive and well. Board members and officers must be on alert, say attorneys with Goodwin Procter LLP.

  • How Accepting Responsibility Can Help At Sentencing

    Daniel Wenner

    The pre-sentencing conduct and sentence of Owen Li, former manager of Canarsie Capital, demonstrate the value of white collar fraudsters accepting responsibility instead of pretending they’re not caught, says Daniel Wenner of Day Pitney LLP.

  • Defining Attorney-Client Relationships In The Electronic Age

    Elizabeth Fitch

    As technology has advanced, the ways in which attorneys communicate with clients, potential clients, former clients and the public has created new and ill-defined issues relating to whether an attorney-client relationship exists. Attorneys Elizabeth Fitch and Theodore Schaer discuss the often nebulous yet hazardous concepts that could lead to malpractice issues.

  • The Evolving M&A Litigation Landscape Post-Trulia

    Daniel E. Wolf

    While the impact of the January 2016 Delaware decision in Trulia is profound, rumors that it represented the demise of M&A litigation were greatly exaggerated. Deal litigation continues, albeit in different forums, with different claims, and subject to different risk mitigation tactics, say Daniel Wolf and David Feirstein of Kirkland & Ellis LLP.

  • Questioning 2nd Circ. Analysis In Aluminum Antitrust Case

    James Robertson Martin

    The Second Circuit recently held in Aluminum Warehousing that consumers that are used as tools to manipulate a defendant’s market can pursue damage claims suffered from manipulation in that market. However, the court went on to hold, consumers that suffered the consequences of a defendant’s unlawful conduct in another market cannot. This seems a bridge too far, says James Robertson Martin of Zelle LLP.

  • 4 Reasons Law Firm Business Development Initiatives Fail

    Adam Donovan

    By understanding four common reasons why law firm business development initiatives fail, we can more accurately define success, avoid pitfalls, and improve return on investment, says Adam Donovan, senior manager of patent business strategy at Fish & Richardson PC.