Securities

  • December 19, 2014

    Judge Won’t Expand $188M Judgment In Wyly Fraud Case

    A New York federal judge on Friday refused the U.S. Securities and Exchange Commission’s attempt to expand an earlier $188 million judgment against Texas tycoon Sam Wyly and the estate of his late brother, Charles Wyly Jr., in an alleged fraud scheme.

  • December 19, 2014

    Judge Slaps Down HP's 3rd Try At Autonomy Settlement

    A California federal judge on Friday rejected Hewlett Packard Co. shareholders’ third attempt at a settlement in their derivative suit over HP's disastrous $11.1 billion Autonomy Corp. acquisition, ruling the deal’s potential release of claims was still far too broad. 

  • December 19, 2014

    Texas High Court Will Hear Life Partners Securities Suits

    The Texas Supreme Court on Friday agreed to resolve a split among lower appellate courts on whether life settlements — fractional interests in insurance policies — sold by Life Partners Inc. can be regulated as securities, granting review to a putative class action and an enforcement suit from state regulators.

  • December 19, 2014

    Former Diplomat Can't Dodge Stanford Receiver's Suit

    A Texas federal judge on Thursday refused to dismiss a fraudulent transfer suit against a former U.S. diplomat accused of aiding Ponzi schemer R. Allen Stanford in a multibillion-dollar fraud, teeing up the case for what will be the first trial against an alleged Stanford insider.

  • December 19, 2014

    Lehman Trustee Seeks To Recover $98M From Wells Fargo

    Lehman Brothers Inc.’s liquidating trustee on Friday filed a $98 million adversary proceeding against Wells Fargo Bank NA in New York bankruptcy court seeking to recover collateral under a swap agreement the bank allegedly ended when Lehman went under.

  • December 19, 2014

    SEC Hits Limits In Collapsed Herbalife Insider Case

    One of the U.S. Securities and Exchange Commission’s first attempts at trying an insider trading case in its in-house court blew up in its face this month, and while the Enforcement Division is expected to get up and try again, the collapsed effort shows the limits of both the forum and the SEC's powers following a landmark Second Circuit decision.

  • December 19, 2014

    MetLife Poses Potential Stability Threat, Regulators Say

    MetLife Inc. is so big that its collapse or major financial troubles could cause significant damage to the broader economy, justifying the life insurance giant's designation as a systemically important financial institution subject to Federal Reserve oversight, a panel of U.S. regulators said in a report released Friday.

  • December 19, 2014

    Chancery Won't Block Family Dollar Vote On $8.5B Buyout

    A Delaware Chancery judge on Friday cleared the way for Family Dollar Stores Inc.'s  upcoming shareholder vote on the board-approved $8.5 billion buyout offer from fellow discount retailer Dollar Tree Inc., rejecting a call by certain Family Dollar investors to hold up the meeting.

  • December 19, 2014

    Rothstein Trustee Cleared To Distribute $13M In Claims

    A Florida bankruptcy judge on Friday approved $13 million in claims distributions by the liquidating trustee of convicted Ponzi schemer Scott Rothstein's bankrupt law firm, but said claims held by a group of hedge fund managers would be withheld while the trustee's adversary suit seeking clarification on their claims is pending.

  • December 19, 2014

    Convicted Ex-Jefferies Trader Says Client Had Him Fired

    Convicted former Jefferies & Co. Inc. managing director Jesse C. Litvak on Thursday in New York state court sued AllianceBernstein LP and a former executive who testified against him, claiming they wrongfully caused Litvak to be fired as a condition of continuing to do business with Jefferies.

  • December 19, 2014

    Volcker Extension Stokes Fear Of Slipping Regulatory Resolve

    The Federal Reserve’s Thursday decision to grant banks more time to shed investments barred by the Dodd-Frank Act, just days after Congress jettisoned another provision of the law, has raised concerns that banks once again are getting their way in Washington.

  • December 19, 2014

    Wal-Mart Accused Of Ignoring Order To Give Up Bribery Files

    Investors in Wal-Mart Stores Inc. have called for sanctions against the company for ignoring a court order to turn over all relevant internal files on what its directors knew about the possibility its officials handed out bribes in exchange for helping it set up shop in Mexico.

  • December 19, 2014

    ESMA Publishes Final Guidance On New EU Securities Rules

    The European Securities and Markets Authority on Friday published its final technical guidance on draft regulations that would restrict high-frequency trading, mandate clearing of derivatives trades and increase retail investor protections as part of a major rewriting of the European Union's securities market regulations.

  • December 19, 2014

    Empire State Building Investors Launch Another Suit Over IPO

    Several investors lobbed a securities fraud suit on Thursday in New York federal court against the Empire State Building's manager and asset management company Malkin Holdings LLC and its principals over allegedly fraudulently cheating the plaintiffs in last year's real estate investment trust deal and subsequent initial public offering.

  • December 19, 2014

    US Bank Settles With CFTC In Suit Over Peregrine Debacle

    An Iowa federal judge on Friday agreed to dismiss a suit brought by the U.S. Commodity Futures Trading Commission against U.S. Bank NA after the two parties agreed to settle claims that the bank aided bankrupt Peregrine Financial Group Inc.’s former CEO in misappropriating $215 million in customer funds.

  • December 19, 2014

    Enterprise Products VP Joins Norton Rose Fulbright

    A senior vice president, general counsel and secretary at Enterprise Products Partners LP is leaving the company to join Norton Rose Fulbright's corporate, securities and mergers and acquisitions practice group in Houston, the law firm announced Thursday.

  • December 19, 2014

    Del. Justices Nix Voting Ban On $2.9B C&J Energy-Nabors Deal

    The Delaware Supreme Court on Friday shot down a 30-day injunction barring oil field company C&J Energy Services Inc. from holding a shareholder vote on a proposed $2.9 billion merger with the hydraulic fracturing and well-sealing units of Nabors Industries Ltd., finding numerous problems with the Chancery Court decision.

  • December 19, 2014

    BofA Fails to Shake FHFA's MBS Suit

    A New York federal judge has shot down Bank of America Corp.'s latest bid to get rid of a Federal Housing Finance Agency suit over mortgage-backed securities, saying on Thursday that the fact that the sales transaction was hatched before a final prospectus was available is not a deal breaker.

  • December 19, 2014

    Lead Counsel In Hi-Crush IPO Suit Cashes In for $1.3M

    Kirby McInerney LLP, the lead counsel for an investor class that won a $4 million payout from fracking sand producer Hi-Crush Partners LP over its fumbled initial public offering, is set to pocket a third of that sum in fees, according to a motion filed in New York federal court on Thursday.

  • December 19, 2014

    ACLU Urges Lift Of Gag Order In Coal Exec's Criminal Case

    The American Civil Liberties Union urged a West Virginia federal judge Thursday to lift a sweeping gag order in the criminal case of former Massey Coal Co. CEO Don Blankenship in connection with 29 miner deaths, saying in a sealed document that the order flies in the face of the Supreme Court's absolute prohibition of prior restraint under the First Amendment.

Expert Analysis

  • The Naked Truth: Intricacies Of Naked Short Sales

    Joshua Hamilton

    The California Court of Appeal decision in the Overstock.com Inc. case provides an unusually deep discussion of the interplay between short selling — specifically, naked short selling — and both the California and federal laws designed to prevent market manipulation, say Joshua Hamilton and Ryan Walsh of Paul Hastings LLP.

  • Louisiana Weighs In On Double Derivative Action Debate

    Andrew R. Lee

    In a case of first impression in Louisiana, the state's Fourth Circuit Court of Appeal has recognized the procedural availability of the “double derivative” action, allowing minority members of a parent LLC to bring an action on behalf of the parent's wholly owned subsidiary LLC for wrongful acts against the subsidiary. The ruling follows case law from other states, including Delaware, say Andrew Lee and Brett Venn of Jones Walker LLP.

  • SDNY Widens Split On Dodd-Frank Whistleblower Protection

    Michael Filoromo III

    The U.S. District Court for the Southern District of New York's decision in Berman v. Neo@Ogilvy LLC makes it the latest court to hold that Dodd-Frank only covers employees who report suspected violations of securities laws to the U.S. Securities and Exchange Commission — the ruling reflects a deepening split on the issue among federal courts, say David Marshall and Michael Filoromo III of Katz Marshall & Banks LLP.

  • Spotlight On SFO: Prosecuting In The Regulator’s Shadow

    Aamir Khan

    There remain serious questions on whether the Serious Fraud Office in the United Kingdom is really best equipped to be prosecuting individuals relating to issues such as Libor and forex manipulation, which are already being investigated by the Financial Conduct Authority and other regulators, says Aamir Khan, general counsel and the senior director for the U.K. and Europe at legal services firm Clutch Group.

  • What Happens When Legal Aid Cuts Stimulate Pro Bono?

    Kevin J. Curnin

    The bad news coming out of the European Pro Bono Summit in November was the rising toll of heavy cuts to public legal aid in England. From this crossroad, there is a lot to be learned about the relationship between public and private assistance, the direction of legal help for the poor in the EU, and whether the American legal aid/pro bono experience offers a road map for what’s next in Europe, says Kevin Curnin of the Association ... (continued)

  • Chancery Court Speaks To Underlying Reality of Influence

    John E. Sorkin

    In Zhongpin Inc. Stockholders Litigation, the Delaware Chancery Court found the plaintiffs had pled sufficient facts to raise an inference that company founder, chairman and CEO Xianfu Zhu was a controlling stockholder — even though he owned only 17 percent of the stock and had not controlled the directors’ decision relating to his going-private bid. A greater willingness to cooperate in the transaction would have advantaged Zhu's ... (continued)

  • Blankenship Case Shows Perils Of Post-Crisis Assurances

    Jeremy Peterson

    Attorneys and executives would do well to take note of the recent federal indictment of Massey Energy Co.'s former CEO, which shows that, in at least some circumstances, relatively general and open-ended corporate statements can be the basis for criminal charges, say attorneys at Arnold & Porter LLP.

  • A Year For Whistleblower Rewards And Protections

    Jason Zuckerman

    2014 has been a transformative year for the development of whistleblower law between whistleblowers obtaining record recoveries through the U.S. Securities and Exchange Commission's whistleblower rewards program, the U.S. Supreme Court's Lawson v. FMR ruling and the strengthening of protection provisions in the Sarbanes-Oxley Act, say Jason Zuckerman and Dallas Hammer of Zuckerman Law.

  • Key Changes To ISS And Glass Lewis Voting Guidelines

    Teri E. O’Brien

    Proxy advisory firms Institutional Shareholder Services and Glass Lewis & Co. recently released updates to their respective voting guidelines for the 2015 proxy season. Paul Hastings LLP attorneys have mapped out the key changes.

  • Exchange Act Does Not Prohibit Big Boy Letters

    Susan F. DiCicco

    Companies weighing the value of no-reliance clauses in agreements have good reason to include them, as federal courts continue to enforce disclaimers of reliance in contracts between sophisticated parties, including in so-called “Big Boy” letters, say Susan DiCicco and Matthew Ladd of Morgan Lewis & Bockius LLP.