DreamWorks Animation SKG Inc. was hit with a proposed securities class action in California federal court on Friday by an investor who says the company was too slow to take its $13.5 million write-down for the movie "Turbo," a cartoon about a snail with super-speed.
A Tennessee federal judge ordered a brokerage and a financial holding company on Friday to disgorge $9.4 million and pay $55.9 million in penalties after a jury agreed with the U.S. Securities and Exchange Commission that they ran a Ponzi-style scheme targeting unsophisticated investors.
A California federal judge on Thursday refused to block investors in two securities class actions accusing Vocera Communications Inc. of artificially inflating its stock prices from using purportedly confidential internal company documents, ruling investigators working for the plaintiffs' counsel didn't obtain them improperly.
A Maryland federal judge on Friday refused to free Barclays Capital Inc. from a $94 million suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to the real estate trust’s crisis-era collapse.
The Second Circuit demarcated a barrier to Financial Industry Regulatory Authority Inc. arbitration on Friday, drawing sharp lines around the term “customer” and ending a Saudi family's bid to recoup $383 million from Citigroup Inc.
The municipal bond market is suffering from a lack of disclosure and transparency around fees and prices investors pay for the securities, while dealers in the sector need to be held to a higher standard when trading for customers, a Republican member of the U.S. Securities and Exchange said Friday.
A New Jersey appeals court on Friday affirmed a trial court's decision to toss a malpractice suit against Duane Morris LLP filed by a former shipping executive over a settlement the firm negotiated with Allstates WorldCargo Inc. over the size of its board, saying it agreed with the decision.
The Tenth Circuit on Friday ruled that an action brought under Section 11 of the Securities Act of 1933 must show a defendant knew opinions in public statements were false when they were being made, joining the Second, Third and Ninth circuits in a question set to be answered by a high-profile Supreme Court case next term.
The D.C. Circuit on Friday rejected a move by an American International Group Inc. investor to revive a putative class action against the insurance giant, finding a lower court correctly tossed the securities suit on jurisdictional grounds.
A California federal judge on Thursday rejected McKenna Long & Aldridge LLP’s bid for sanctions against ex-client Heart Tronics Inc., which McKenna said brought its malpractice and fraud suit against the firm without proper jurisdiction, holding that the plaintiff’s failure to meet and discuss dismissal wasn’t "in bad faith."
The Bob Evans Farms Inc. board of directors again struck back at Sandell Asset Management Corp.'s attempts to reform the company, calling the activist investor's proposals "short-sighted" and "unsustainable" in a letter sent to shareholders Friday.
While other big-name private equity shops have settled, the Carlyle Group LP on Friday indicated it wasn't ready to throw in the towel on a long-running suit accusing it and several other private equity firms of teaming up to depress prices in leveraged buyouts leading up to the financial crisis.
The International Swaps and Derivatives Association Inc. on Friday found that Argentina's failure to pay bondholders has constituted a "credit event," prompting an auction that could result in some $1 billion in payments on credit default swaps.
Barclays PLC was hit with another investor proposed class action in California federal court on Thursday challenging its operation of secret trading “dark pools” that cater to predatory high-frequency traders, following a major securities fraud suit by the New York Attorney General bringing the issue to light.
The U.S. Securities and Exchange Commission has reached a no-admit settlement with a Georgia man it says misappropriated at least $2.58 million from people who thought they were investing in “opportunistic” funds to buy real estate at the bottom of the late-aughts market.
U.S. financial regulators on Thursday shifted their focus on the risks giant asset management firms posed to the economy from the firms themselves to the products they offer, giving BlackRock Inc., Fidelity Investments and other firms a temporary reprieve from enhanced oversight as systemically important financial institutions.
A former Evercore Partners Inc. banker was sentenced Friday to 30 months in prison after pleading guilty earlier this year to an insider trading scheme that authorities have said partly went to pay child support for his young child.
Canadian investment firm Fairfax Financial Holdings Ltd. on Friday disclosed that Quebec’s securities regulator is probing its top two officials as part of an insider trading investigation.
A former Alstom SA vice president argued in Connecticut federal court Thursday that an indictment charging him with violating the Foreign Corrupt Practices Act in connection with an alleged bribery scheme linked to a $188 million contract in Indonesia is time-barred because of his resignation in 2004 from the company.
A Parker Drilling Co. investor late Thursday requested the Delaware Chancery Court to compel the company to reveal the identities of former senior executives and outside counsel purportedly connected to a U.S. Foreign Corrupt Practices Act case it settled with the U.S. government for $16 million.
Many of the early narratives about the causes of the recent financial crisis — for example, securitization — were woefully incomplete, raising significant doubts about the advisability of reforms based on them. It turns out that the investors buying mortgage-backed securities were not dupes, says Kathryn Judge, associate professor at Columbia Law School.
The vast majority of civil cases in the United States settle before trial. Knowing how many on a particular topic were filed, how many settled, when they settled, and on what terms clearly would be useful to a lawyer advising a client. Big Data could make it possible — yet this type of research is generally ignored by lawyers, says James Wendell of Riddell Williams PS.
Lawyers counseling investment advisers should be aware that the U.S. Securities and Exchange Commission does not view the Investment Advisers Act as imposing a comprehensive regulatory scheme. Rather, advisers are subject to a broad fiduciary duty to pursue the best interests of their clients, say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.
The Delaware Supreme Court could use the ongoing Indiana Electrical Workers Pension Trust Fund IBEW v. Wal-Mart Stores case — related to alleged bribery by Wal-Mart's Mexican affiliate — as an opportunity to revisit and clarify the Caremark standard of corporate board obligations, says Celia Taylor of Sturm College of Law at the University of Denver.
As a result of the dramatic rise in foreign investment in U.S. real estate and federal income taxes imposed under the Foreign Investment in Real Property Tax Act, foreign investors should once again consider investing synthetically through a total return swap, especially considering a recent IRS ruling, says Jeffrey Rubinger of Bilzin Sumberg Baena Price & Axelrod LLP.
In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.
As the Judicial Panel on Multidistrict Litigation heads to the “Heart of America” for its July 31 hearing, this column will take a bit of a detour from its regular format and present a top 10 list of arguments — some strange, yet true — made in support of a particular MDL venue, says Alan Rothman of Kaye Scholer LLP.
The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.
With the “too big to fail” debate about to hit the headlines again when the Government Accountability Office releases its long-awaited TBTF report, the rhetoric calling for the completion of outstanding regulations will once again sharpen. This rhetoric should not be confused with reality, however, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.
The Mandatory Victims Restitution Act is a valuable tool to recover the expenses of a costly, yet necessary, internal investigation into a former employee’s criminal wrongdoing. Anticipate and plan for a necessity showing under the MVRA as a potential criminal matter is being investigated and after government cooperation has commenced, say Paul Monnin and Zachary LeVasseur of DLA Piper LLP.