Securities RSS

  • April 17, 2014

    How To Avoid SEC’s Coming Cybersecurity Crackdown

    In a recently released blueprint, the U.S. Securities and Exchange Commission outlined steps it expects banks and other financial firms to take to safeguard their online data, leaving Wall Street scrambling to avoid an expected crackdown. Here, attorneys offer steps companies can take to escape the regulator’s wrath.

  • April 17, 2014

    2nd Circ. To Test Flexibility Of FINRA Arbitration Rule

    A Connecticut hedge fund faces an uphill battle in the Second Circuit next week in a bid to overturn a district court's narrow definition of "customer" under the Financial Industry Regulatory Authority’s arbitration rules despite FINRA's open-ended interpretation of the term, attorneys say.

  • April 17, 2014

    Vintage Capital Axes $2.3B Buyout Bid For Aaron’s

    Vintage Capital Management LLC on Thursday withdrew its buyout bid for Aaron’s Inc. that valued the company at $2.3 billion, slamming the struggling rent-to-own retailer for its recent $700 million acquisition of a retail credit financing firm and confirming plans for a proxy contest.

  • April 17, 2014

    NJ Man Guilty Of $200M Ponzi Scheme Faces New Charges

    Federal prosecutors on Wednesday charged a Facebook Inc. initial public offering fraud scheme against a New Jersey man recently sentenced to 22 years in prison for running a real estate investment Ponzi scheme that bilked Orthodox Jewish community members and others out of $200 million.

  • April 17, 2014

    Prudential's $2B RMBS Suit Against BofA Mostly Survives

    Most of the claims lodged by Prudential Insurance Co. alleging Bank of America Corp. sold it $2 billion in fraudulent residential mortgage-backed securities survived a motion to dismiss Thursday in New Jersey federal court.

  • April 17, 2014

    State Street Bank Escapes GM Workers' ERISA Class Action

    A Michigan federal judge threw out an Employee Retirement Income Security Act suit brought by General Motors Corp. workers who alleged State Street Bank & Trust Co. continued to offer GM stock after it became imprudent, saying the plaintiffs didn’t meet their burden to show that the actions were unreasonable.

  • April 17, 2014

    SEC Wins Asset Freeze Of Alleged Pyramid Schemer TelexFree

    A Massachusetts federal judge on Wednesday froze bankrupt TelexFree LLC’s assets after the U.S. Securities and Exchange Commission accused it of running a pyramid scheme that raked in hundreds of millions of dollars by deceiving immigrants in Brazilian and Dominican communities.

  • April 17, 2014

    Bear Stearns Workers Duck Claims Over Billionaire Stock Buy

    A New York federal judge has dismissed claims that two former Bear Stearns Cos. LLC employees duped billionaire Roger Wang and his wife into buying stock in the bank shortly before it collapsed in 2008, according to a Wednesday ruling.

  • April 17, 2014

    Calif. Hard Rock Blazes Trail With Equity 'Crowdfunding'

    In what's being touted as the first major “crowdfunding” campaign for a U.S. hotel, the owner of a California Hard Rock hotel on Wednesday began publicly advertising opportunities for accredited investors to score an equity stake in the property, taking advantage of new securities rules that allow such soliciting.

  • April 17, 2014

    Gupta To Surrender For 2-Year Prison Term In June

    Former Goldman Sachs Group Inc. director Rajat Gupta has two months to surrender himself for his two-year prison sentence on criminal charges of insider trading, a New York district judge ordered Thursday.

  • April 17, 2014

    GAO Says SEC Open To Cyberattack, Contractor Unmonitored

    The U.S. Securities and Exchange Commission’s information technology has been vulnerable to attack partly because the agency failed to oversee the work of a contractor hired to move a key financial system to a new location, a U.S. Government Accountability Office report said Thursday.

  • April 17, 2014

    How They Won It: Skadden's MFW Win Reforms Insider Deals

    Delaware's high court last month redefined how it would handle shareholder suits challenging controlling-party buyouts, flipping the review in favor of boards in a landmark decision driven by a Skadden Arps Slate Meagher & Flom LLP team that had a game-changing outcome in its sights from the get-go.

  • April 17, 2014

    AIG, Auto Firms, Homeowners Drove $27B Bailout Loss: CBO

    The Congressional Budget Office on Thursday said the unprecedented 2008 federal bailouts will end up costing the government and taxpayers $27 billion, with most of those losses stemming from assistance to American International Group Inc., General Motors Co., Chrysler LLC and homeowners rather than to banks.

  • April 17, 2014

    11th Circ. Grounds Ex-Delta Worker's ERISA Appeal

    A lower court correctly applied a previous appellate decision and nixed a proposed Employee Retirement Income Security Act class action brought by a former Delta Air Lines Inc. worker who said Delta stock was an imprudent retirement plan investment option, the Eleventh Circuit ruled Thursday.

  • April 17, 2014

    Skadden To Pay $4.25M In Settlement With Fletcher Trustee

    A New York federal bankruptcy court approved a $4.25 million settlement Tuesday requiring Skadden Arps Slate Meagher & Flom LLP to pay bankrupt hedge fund Fletcher International Ltd. and several creditors to resolve claims the law firm failed to protect the interests of the hedge fund and its investors.

  • April 17, 2014

    SEC Unveils Layout For Cybersecurity Examinations

    The U.S. Securities and Exchange Commission has outlined a plan to conduct a series of examinations of Wall Street firms in order to assess their readiness to prevent and respond to attacks on cybersecurity, according to documents released Wednesday.

  • April 17, 2014

    Player In $11M Ponzi Scheme Gets 25-Year Sentence

    A Texas federal judge on Wednesday handed down a 25-year prison sentence to a key player in an $11 million investment fraud scheme and ordered he pay $6.5 million in restitution, the U.S. Department of Justice announced.

  • April 17, 2014

    5 Suits Over $45B Comcast-TWC Merger Consolidated

    A New York state judge on Tuesday ordered the consolidation of five shareholder class actions against Time Warner Cable Inc. and Comcast Corp. in New York Supreme Court that seek to halt the mammoth $45.2 billion merger that would reshape the cable industry.

  • April 17, 2014

    Maker Shareholder Suit Adds Woes To $950M Disney Deal

    The board of directors of online video company Maker Studios Inc. was hit with another suit in California court on Tuesday when a shareholder and former employee challenged the validity of an approved $950 million takeover bid by the Walt Disney Co.

  • April 17, 2014

    Industry Groups Warn Fed Of Bank Commodities Rule Risks

    Industry groups representing financial services firms, private equity firms and manufacturing companies asked the Federal Reserve to rethink a proposal for limiting banks' holdings of physical commodities as the comment period for the plan drew to a close Thursday.

Expert Analysis

  • Activist Investors — Brace Yourselves For 13D Changes

    Perrie Michael Weiner

    The U.S. Securities and Exchange Commission is turning more aggressive attention toward shareholder activists, and the issue of revising the Schedule 13D timetable is alive once again, largely due both to a recent media report and its confluence with another event — the news that such a measure has the support of perhaps the preeminent juridical voice in American corporate law, Delaware Supreme Court Chief Justice Leo E. Strine Jr., say Perrie Michael Weiner and Patrick Hunnius of DLA Piper.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Roadblocks To D&O Coverage For Subpoena Response Costs

    Benjamin D. Tievsky

    While it must be emphasized that a policyholder’s entitlement to coverage is dependent upon the precise language of the policy at issue and the specific facts of each case, the recognition by many courts that a subpoena is a “claim” under D&O policies opens the door for potential recovery in a variety of circumstances, says Benjamin Tievsky of Orrick Herrington & Sutcliffe LLP.

  • Good News For South Fla. Ponzi Schemers?

    Lawrence A. Kellogg

    In its effort to protect public companies and legitimate businesses in general, the U.S. Supreme Court appears to be overlooking the effect its rulings are having on those for whom the fraud provisions of the securities laws were designed to protect. Should the court ring the death knell on class action securities cases, the South Florida climate for Ponzi schemers and other fraudsters will become better than ever, says Lawrence Kellogg, a founding partner of Levine Kellogg Lehman Schneider & Grossman LLP.

  • CFTC Data Will Be A Powerful Tool For FERC Enforcement

    Terry S. Arbit

    The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission recently signed two long-awaited memoranda of understanding, the lower-profile information-sharing one, which provides FERC with “large trader data” in the CFTC’s possession, being the more significant. Regulators achieved a significant victory by including surveillance purposes in the memo — it was a long time coming and provides FERC with a potent tool for surveilling the natural gas and power markets, say attorneys at Norton Rose Fulbright.

  • The 6 Most Important Changes To Russian Pledge Rules

    Alexey Kukharev

    Among the most significant changes being made to the Russian Civil Code is the introduction of the security trustee concept, which will strengthen syndicated lending and asset-backed security structures involving Russian collateral, and will bring the Russian legal system into harmony with the most developed legal systems in the world in this area, says Alexey Kukharev of Orrick Herrington & Sutcliffe LLP.

  • What Will Gov't Seek To Prove In Rajaratnam Brother Case?

    Michele Adelman

    More courts than not have found that the government bears the burden of proving that a remote tippee knew that the tipper received some form of personal benefit, so the inevitable question is whether the government will reverse course and seek to prove that Rajarengan Rajaratnam knew that his brother Raj's tippers received a personal benefit, rather than running the risk of having a reversal of any conviction of Rajarengan, says Michele Adelman of Foley Hoag LLP.

  • Fog May Be Lifting Around Finders

    Kenneth G.M. Mason

    The regulatory world of when and whether a U.S. person can raise capital and receive transaction-based compensation without registering as a broker-dealer has been murky. But the U.S. Securities and Exchange Commission’s aggressive stance on when finders have to register as broker-dealers has recently encountered judicial disavowal by courts, which has helped clarify certain compensation issues, say Kenneth Mason and Sharon Obialo of Kaye Scholer LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Reading Between The Whistleblower Headlines

    Shanti Atkins

    The meteoric media rise of the “celebrity” whistleblower has shone a spotlight on the practice, with personalities such as Chelsea Manning and Edward Snowden dividing public opinion on the ethics of spilling secrets. But organizations should pay close attention to the surge in this trend beyond the headlines. Remember, whistleblowers don’t need to be popular to be effective, and opinions on their motives and morality are entirely secondary to the critical issues they potentially uncover, says Shanti Atkins of Navex Global.