A New York federal judge on Wednesday again rejected Grant & Eisenhofer PA's bid for more fees for working with Bernstein Liebhard LLP in investor litigation against Fannie Mae over allegedly inflated financial reports, saying Grant has “no one to blame but itself” for failing to trigger the firms' fee-sharing agreement.
Robbins Geller Rudman & Dowd LLP sought court approval Wednesday to serve as lead counsel in a putative class action in California federal court by shareholders who allege LendingClub Corp. masked problems with internal controls, leading to a stock plunge when mishandled loan sales were revealed.
A New York federal judge told a UBS AG unit Wednesday that it was welcome to seek an appeal of a recent order calling for a master to help determine how much the bank owes over allegedly faulty home loans, but indicated it would face an uphill battle in doing so.
Navistar International Corp. has agreed to pay $9.1 million to resolve a shareholder class action accusing the truck manufacturer of making false or misleading statements about the development of a reduced emissions engine, according to documents filed Wednesday in Illinois federal court.
Private prison company GEO Group Inc. urged a Florida federal judge Wednesday to toss a putative class action accusing it of securities fraud, saying the claims are based on a “gross distortion” of the U.S. Department of Justice's recent policy shift to phase out of private prisons, including those of GEO.
TerraForm Power Inc. investor Appaloosa Management LP agreed late Tuesday to settle its derivative claims that once targeted the now-scuttled $2 billion acquisition of Vivint Solar Inc. by SunEdison Inc. for promises of corporate governance reform at TerraForm and up to $3 million in legal fees.
Och-Ziff Capital Management Group LLC is expected to pay more than $400 million and a subsidiary will plead guilty to end investigations by the U.S. Department of Justice and the U.S. Securities and Exchange Commission into whether it bribed African officials, according to reports on Wednesday.
A U.S. Aerospace Inc. executive facing shareholder claims in California federal court he conspired to artificially inflate the company’s stock price through bogus defense contract bids is seeking to set aside default judgments that he blames on the actions of a former "rogue attorney.”
A Washington federal judge said on Wednesday that he would consolidate five proposed class action suits over RedBox parent Outerwall Inc.’s $1.6 billion private equity buyout deal that allegedly favored insiders, including an activist hedge fund that lobbied for a sale.
Private equity magnate Lynn Tilton told a New York federal judge in a letter on Tuesday why her new suit challenging the U.S. Securities and Exchange Commission’s use of administrative proceedings passes jurisdictional muster, saying the new complaint includes due process and equal protection claims.
The Williams Cos. told the Delaware Supreme Court late Tuesday that Energy Transfer Equity LP could have done much more to overcome fatal tax issues that spoiled their proposed $38 billion and is relying on the Chancery Court’s errors that allowed the company to quit the deal.
The buyer of a Delaware trucking firm told the state’s high court Wednesday that the buyer's counterclaims in a securities suit should be reinstated because both sides agreed that Delaware’s General Corporation Law applied to the 2012 deal.
The U.S. Securities and Exchange Commission on Wednesday announced the appointment of the second head of its whistleblower program.
The U.S. Commodities Futures Trading Commission took another step toward a full complement of five commissioners on Wednesday, when the Senate agriculture committee voted to approve two nominees and send their nominations to the Senate floor.
The Eleventh Circuit reversed the U.S. Securities and Exchange Commission's quick win on allegations that a former BankAtlantic Bancorp CEO lied and committed accounting fraud during the financial crisis, ruling Wednesday that the lower court did not properly weigh all the evidence.
California’s state treasurer on Wednesday announced that the Golden State will suspend its business relationship with Wells Fargo & Co. for one year to sanction the bank for opening millions of unauthorized customer accounts, in a growing scandal that has spawned a $185 million fine along with shareholder and employee putative class actions.
The U.S. Securities and Exchange Commission voted Wednesday to adopt rules to strengthen regulations of systemically important clearing agencies and propose changes to clearing settlement cycles, even though two of the agency’s commissioners expressed reservations with the new standards.
A career Winston & Strawn LLP attorney is bringing his expertise in vetting executive compensation plans to Jones Day’s Chicago office, the law firm announced Wednesday.
Ex-American Realty Capital Properties CFO Brian S. Block on Wednesday denied charges of securities fraud, conspiracy and making false filings three weeks after Manhattan U.S. Attorney Preet Bharara accused him of covering up a $12 million earnings error at the real estate investment trust now known as Vereit Inc.
A New York state court judge overseeing former American International Group Inc. CEO Maurice “Hank” Greenberg's civil fraud trial told him on Wednesday to stop pointing to his reliance on “lawyers and accountants” in answer to questions about a challenged reinsurance deal.
Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get "a lot farther by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.
The Seventh Circuit's recent decision in Allen v. GreatBanc Trust made it the first court to expressly reject Fifth Third Bancorp v. Dudenhoeffer's application to plan investments in privately held stock. The decision clarifies a plaintiff's burden to plead a prohibited-transaction claim under Section 406 of the Employee Retirement Income Security Act, say Chelsea Ashbrook McCarthy and Louis Joseph of Holland & Knight LLP.
Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.
Recognizing the ever-dwindling number of multidistrict litigation proceedings, Alan Rothman of Kaye Scholer LLP explores the three alternatives to MDLs which the Judicial Panel for Multidistrict Litigation has recently considered in denying and/or mooting MDL petitions.
The Second Circuit's decision last week in American International Group Securities Litigation creates a split in how courts define the term “affiliate” in class action securities settlements. Settling defendants should consider pressing for the elimination of the term completely, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.
There might not be any cases decided under Section 314(d)(1) of the Trust Indenture Act, and it is likely that its provisions are rarely outcome-determinative. Nonetheless, Section 314(d)(1) could provide protection to bondholders against an abusive collateral release, says Gregory Scott of Kramer Levin Naftalis & Frankel LLP.
Commentators have justifiably been suspicious of regulators’ claims that they will reward companies that have strong Foreign Corrupt Practices Act compliance programs and that respond to allegations of misconduct as the government has recommended. However, it is difficult to read the recent Harris Corp. resolution as anything other than the government following through on its promises, says Robert Kent of Baker & McKenzie LLP.
One side effect of the rise in bug bounty programs, and disclosures by security researchers and others, is a commensurate increase in publicly known security vulnerabilities that can lead to increased scrutiny from regulators and the plaintiffs bar, says Kim Peretti, co-leader of Alston & Bird LLP's cybersecurity preparedness and response team.
Six years ago, the U.S. Supreme Court in Morrison v. National Australia Bank definitively rejected the plaintiffs bar’s request to permit foreign securities claims with tenuous U.S. connections to be litigated here. Yet, filings of U.S. securities suits against foreign companies are on track to increase for the third year in a row. It should come as no surprise that the application of Morrison continues to be ironed out, says Matth... (continued)
Given the plaintiffs bar’s heightened focus on conflict allegations against target directors premised on merger agreements, boards of target corporations, when reviewing the protections they are granting themselves, should pay attention to not only the guidance of Riverstone National, but also the arguable legacy of CVS-Caremark, says Ethan Klingsberg of Cleary Gottlieb Steen & Hamilton LLP.