Securities

  • July 29, 2015

    Securities Class Action Filings Up In 9th Circuit, Abroad

    While the number of new securities class action filings continues to hover at historically low levels, the number of cases filed in the Ninth Circuit and outside of the U.S. has surged, indicating plaintiffs are increasingly likely to target technology firms and foreign companies, according to a Thursday report.

  • July 29, 2015

    PwC, Standard Chartered Can't Slip All Madoff Claims

    A New York federal judge ruled Wednesday that negligence claims brought under state law against Standard Chartered PLC and PricewaterhouseCoopers LLP over Bernie Madoff's Ponzi scheme survive new Second Circuit jurisprudence on the Securities Litigation Uniform Standards Act.

  • July 29, 2015

    Dark Pool Operator Expects $20M SEC Fine

    Dark pool operator Investment Technology Group Inc. disclosed Wednesday that it will likely pay $20 million to settle U.S. Securities and Exchange Commission allegations that a unit ran an experimental trading program in the dark pool that violated customer information disclosure rules.

  • July 29, 2015

    Philly Mobster Gets 30 Years For $12M Extortion Scheme

    Another Lucchese crime family member convicted by a federal jury in New Jersey on racketeering and fraud charges for his role in a $12 million extortion takeover that forced a Texas mortgage lender into bankruptcy was sentenced to 30 years in prison Tuesday, the Department of Justice announced.

  • July 29, 2015

    DOL Defends $6.5M Win Over DirecTV Installer's Pensions

    The U.S. Department of Labor backed a nearly $6.5 million judgment against a DirecTV installation company's retirement plan trustees for causing the plans to overpay for company stock, urging the Fifth Circuit on Wednesday to not overturn the award.

  • July 29, 2015

    Investors Hit 24 Banks With Market Manipulation Class Action

    Nearly 25 financial institutions, including Barclays Capital Inc., Goldman Sachs & Co. and UBS Securities LLC were hit with a proposed class action by investors in New York federal court on Tuesday, a suit that claims they colluded to manipulate the U.S. Treasury securities market.

  • July 29, 2015

    WBJ Capital Chiefs Plead To Multimillion-Dollar Investor Theft

    The heads of defunct Wall Street outfit WBJ Capital Group Inc. admitted Wednesday to stealing millions from investors and falsifying documents submitted to regulators in a scheme to prop up the struggling broker-dealer as it buckled under the effects of the 2008 financial crisis.

  • July 29, 2015

    Rothstein Adviser Pleads Guilty To Aiding $1.2B Ponzi Plot

    A Florida investment adviser pled guilty Wednesday in federal court to conspiring with Scott Rothstein to induce investors to put their money into the now-jailed attorney's $1.2 billion Ponzi scheme.

  • July 29, 2015

    Magistrate Recommends Contempt For Ex-GlobeTel CEO

    A federal magistrate on Wednesday recommended partially accepting the government's motion to hold former GlobeTel Communications Corp. executive Joseph Monterosso in contempt for failing to repay hundreds of thousands in penalties, calling his reasons “inconsistent or downright contradictory," but said he could avoid jail time by quickly repaying $120,000.

  • July 29, 2015

    SEC Market Abuse Chief Leaves To Rejoin Private Sector

    Daniel M. Hawke, a Securities and Exchange Commission official for the past 16 years who most recently led the division’s Market Abuse Unit head, presiding over several high-profile cases, is leaving the agency to rejoin the private sector, the SEC said Wednesday.

  • July 29, 2015

    8th Circ. Affirms 5 Convictions In $10M Petro Investment Scam

    The Eighth Circuit on Wednesday upheld the convictions of five people in a $10 million scheme to peddle shares of fake oil company Petro America Corp. to churchgoers and other investors, saying the evidence in their case was overwhelming.

  • July 29, 2015

    CFTC Urges 11th Circ. To Affirm Ponzi Funder's Judgment

    A Georgia man who allegedly funneled investor cash into a $13.5 million Ponzi scheme cannot escape a federal court’s summary judgment against him simply by saying he didn’t know he was contributing to a fraud, the U.S. Commodity Futures Trading Commission told the Eleventh Circuit on Wednesday.

  • July 29, 2015

    SEC Allows Alleged Ponzi Schemer To Sell Buffalo Home

    The U.S. Securities and Exchange Commission told a New York federal court Wednesday it had reached a deal with the wife of an accused Ponzi schemer who allegedly duped investors into believing he was investing their money in Twitter Inc. and Uber Technologies Inc., allowing the couple to sell a Buffalo, New York, property.

  • July 29, 2015

    4th Circ. Urged To Revive Marriott ERISA Suit Over Stock Plan

    Two former Marriott International Inc. employees urged the Fourth Circuit on Monday to revive their putative class action accusing the hotelier of failing to fulfill terms of a stock awards program and reject Marriott’s contention that its plan was exempt from the Employee Retirement Income Security Act of 1974.

  • July 29, 2015

    House Panel Votes To Cancel Fannie, Freddie CEO Pay Raise

    The House Financial Services Committee on Wednesday voted nearly unanimously to cap the compensation for Fannie Mae and Freddie Mac’s top executives after the Federal Housing Finance Agency approved large pay increases earlier this year.

  • July 29, 2015

    Morgan Stanley Owes $2.5M Over Trader Supervision

    A Financial Industry Regulatory Authority arbitration panel has awarded $2.5 million to a group of physicians who claim their Morgan Stanley & Co. Inc. trader in Jackson, Mississippi, was able to commit unauthorized trades and falsify business returns because of a lack of supervision.

  • July 29, 2015

    Worth Group, CTFC Both Denied Bids To End $73M Suit

    A Florida federal judge denied precious metals company Worth Group Inc.'s motion to get rid of a $73 million customer fraud lawsuit courtesy of the Commodity Futures Trading Commission, saying Wednesday the record is riddled with disputes that need further investigation.

  • July 29, 2015

    Feds Want AIG, Prudential, GE Capital To Improve Living Wills

    Federal regulators on Tuesday told American International Group Inc., Prudential Financial Inc. and General Electric Capital Corp. to make improvements that will better show how to take them apart without endangering the broader financial system should they fail.

  • July 29, 2015

    Vasco Faces Investor Class Action Over Illegal Iran Sales

    Vasco Data Security International Inc. was hit with a proposed class action in Illinois federal court Tuesday by an investor who says the Internet security company hid the fact that some of its products may have been sold to the Iranian government in violation of U.S. sanctions.

  • July 29, 2015

    Books-A-Million Investor Sues To Halt $21M Buyout Deal

    An investor in retail chain Books-A-Million Inc. launched a lawsuit in Delaware Chancery Court on Tuesday seeking to halt a proposed $21 million takeover by controlling shareholder and Chairman Clyde B. Anderson, arguing that it undervalues the company and that minority stakeholders rejected a similar deal three years ago.

Expert Analysis

  • DC Circ. Dodd-Frank Ruling May Help Against CFPB Sanctions

    Jennifer L. Sutton

    Much like the U.S. Securities and Exchange Commission bar at issue in SEC v. Koch, a number of the Consumer Financial Protection Bureau’s enforcement actions address violations premised on conduct that, at least in part, predates Dodd-Frank. The D.C. Circuit’s ruling in Koch rejecting retroactive Dodd-Frank application could provide a basis for institutions to object to certain CFPB sanctions, say attorneys with Sullivan & Cromwell LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 2

    Steven Epstein

    The Delaware Chancery Court now primarily or exclusively relies on the merger price to determine fair value when the merger price is a particularly reliable indication of value and the standard financial valuation analyses — discounted cash flow and comparables — are particularly unreliable. All of the recent cases meeting these parameters have involved disinterested transactions, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 1

    Philip Richter

    In a break with past practice, several times in recent months, the Delaware Chancery Court has relied primarily or exclusively on the merger price to determine fair value in appraisal cases. However, we note that the court’s reliance on merger price is still limited, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • And Now A Word From The Panel: The Rocket Docket!

    Alan Rothman

    As we celebrate the 46th anniversary of mankind’s first walk on the moon, this month’s column tracking the Judicial Panel on Multidistrict Litigation appropriately explores the impact of the “rocket docket” on the selection of an MDL venue. We have discussed various venue selection factors, but is the perceived speed with which a district handles cases relevant? asks Alan Rothman of Kaye Scholer LLP.

  • The Proposed Best Interest Contract Exemption: Part 3

    Susan Krawczyk

    Some broker-dealers may choose to develop a separate customer platform for retirement investor accounts in order to comply with the U.S. Department of Labor's proposed best interest contract exemption, rather than subject all of their retail customer accounts to the same rules. The more formidable challenge, though, will likely be the fee and compensation disclosure requirements, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Understanding The SEC's Compensation Clawback Proposal

    Alessandra K. Murata

    To the extent classified as an executive officer, a listed company's general counsel will be subject to potential clawback under the recently proposed compensation recovery rules. The rules would apply to all incentive awards granted to these executive officers, including awards granted at a time when the individual was not serving as an executive officer, say Alessandra Murata and Neil Leff of Skadden Arps Slate Meagher & Flom LLP.

  • The Proposed Best Interest Contract Exemption: Part 2

    Susan Krawczyk

    In light of the U.S. Department of Labor's proposed best interest contract exemption guidance, a broker-dealer might decide to exclude transactions in retirement investor accounts from incentive or bonus programs offered to its brokers, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Sigelman FCPA Trial Won't Affect DOJ Strategy

    Michael Volkov

    In the aftermath of the Foreign Corrupt Practices Act trial of former PetroTiger Ltd. CEO Joseph Sigelman, FCPA commentators are hyperventilating about “trends” and “lessons.” But there is not much to be learned from the federal prosecutors' loss — what happened at trial is nothing more than a regular occurrence in our criminal justice system, says Michael Volkov, CEO of The Volkov Law Group LLC and a former federal prosecutor.

  • REBUTTAL: The Problem With 3rd-Party Litigation Financing

    Lisa Rickard

    Manipulating gender disparity in the service of hawking a flawed investment product does nothing but trivialize a serious and important issue. The tortured logic in Burford Capital LLC’s recent plug for third-party litigation financing is nothing more than a marketing ploy to boost revenues, says Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform.

  • The Proposed Best Interest Contract Exemption: Part 1

    Susan S. Krawczyk

    A closer look at the U.S. Department of Labor's proposed best interest contract exemption for financial institutions and their advisers reveals that the elements are very different from existing requirements. Proposed transaction fee and cost requirements not only conflict with existing broker-dealer rules but also would require an operational platform that does not currently exist, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.