Securities

  • January 30, 2015

    FINRA Bars Waiver Of UBS Adviser Class Action, 2nd Circ. Told

    An attorney for a proposed class of financial advisers for UBS AG's broker-dealer unit on Friday urged the Second Circuit to find they cannot be forced to arbitrate their overtime claims, saying waivers of class actions are void under Financial Industry Regulatory Authority rules.

  • January 30, 2015

    OCZ Trustee And Ex-Brass Spar Over Investigation

    Both sides of a dispute in Delaware bankruptcy court over the liquidation trustee for OCZ Technology Group Inc.'s estate’s investigation into whether there are claims for creditors stemming from settlements in California with the company’s former brass accused the other Friday of flouting judicial rules.

  • January 30, 2015

    OmniVision Investors Get $12M In Apple Supplier Status Row

    A California federal judge on Friday preliminarily approved a $12.5 million settlement with a class of shareholders claiming OmniVision Technologies Inc. misled them into believing it was maintaining its exclusive position supplying image sensors for Apple Inc.'s iPhone 4s.

  • January 30, 2015

    JPMorgan To Pay $99.5M To Escape FX Rigging Class Action

    JPMorgan Chase & Co. will pay $99.5 million to exit an antitrust class action alleging the bank was part of a conspiracy to rig the approximately $5 trillion-per-day foreign exchange market, according to court documents filed Friday.

  • January 30, 2015

    Fla. Logistics Firm Accuses Felon Arms Dealer Of Shakedown

    Florida logistics company J-Six Inc. has filed suit in Florida state court accusing a former arms dealer who served about five years in federal prison and his company of trying to usurp control as part of an “attempted shakedown.”

  • January 30, 2015

    Securities Group of the Year: Paul Weiss

    Paul Weiss Rifkind Wharton & Garrison LLP's securities practice group had a big year in 2014, winning bet-the-company litigation for Pfizer and helping avoid a potential expansion of liability admissions in SEC civil litigation, work that made the group one of Law360's Securities Groups of the Year.

  • January 30, 2015

    Boss Of Largest Ponzi Scheme In Conn. History Gets 13 Years

    Former hedge fund manager Francisco Illarramendi was handed a 13-year prison sentence Thursday after pleading guilty to charges that he orchestrated a $723 million Ponzi scheme, the largest in Connecticut history, according to prosecutors.

  • January 30, 2015

    Texas Industries' Settlement In $2.7B Merger Row Gets OK

    A Texas federal judge on Friday preliminarily approved a settlement in an investor class action alleging Texas Industries Inc.’s $2.7 billion sale to Martin Marietta Materials Inc. undervalued the Texas cement maker while lining board members' pockets.

  • January 30, 2015

    Deloitte Beats Some UK Misconduct Claims In MG Rover Row

    Deloitte LLP has won a partial appeal against the U.K. Financial Reporting Council over its alleged failure to properly manage conflicts of interest in advising MG Rover Group Ltd., which went bankrupt in 2005, and will now face only five of the original 13 misconduct rulings against it.

  • January 30, 2015

    Revolving-Door Roundup: Grant & Eisenhofer, Quinn, Boies

    After a sluggish December, the door between the public and private sectors started spinning again in earnest in January, highlighted by former Delaware Attorney General Beau Biden's move to Grant & Eisenhofer PA and Boies Schiller & Flexner LLP's marquee hiring of three assistant U.S. attorneys from the Southern District of New York.

  • January 30, 2015

    Chancery Finds Ancestry.com Stock Price Fair In $1.6B Deal

    A Delaware Chancery judge ruled Friday that the $32-per-share price in the $1.6 billion buyout of Ancestry.com by a private equity firm was indeed fair value for the merger, rejecting an argument by several hedge fund shareholders that the deal should have been valued at up to $47 per share.

  • January 30, 2015

    CFTC Swaps Reform Seen As Big Plan With Steep Climb

    A recent blueprint for reforming U.S. swap trading rules offers common-sense ways to improve the market for U.S. participants, attorneys say, but the sheer ambition of the proposal by a U.S. Commodity Futures Trading Commission member likely means its impact will be felt mostly at the margins.

  • January 30, 2015

    NY Appeals Court Lets TCW Duck Claim In $128M MBS Suit

    A New York appeals court upheld the dismissal of a negligent-misrepresentation claim in a $128 million suit alleging TCW Asset Management Co. lied to investors about the value of a collateralized debt obligation, ruling TCW was not in a position of trust as collateral manager for the mortgage-backed securities.

  • January 30, 2015

    Developer Charged In Multimillion-Dollar Fraud Found Dead

    The federal bank fraud case against Michael A. Zimmerman was canceled Friday after the noted Dover, Delaware, developer who was accused of misusing millions of dollars in Wilmington Trust Co. loans was found dead. 

  • January 30, 2015

    BB&T Board Beats Derivative Suit Over ARS Investigation

    A federal North Carolina judge on Thursday granted summary judgment in favor of BB&T Corp. board members who led an investigation into claims that the bank misled investors about auction rate securities, saying plaintiffs failed to show the board members neglected to conduct a proper probe.

  • January 30, 2015

    Fed Eyeing Asset Management Risks, Tarullo Says

    The Federal Reserve’s lead governor for financial regulations on Friday said the central bank was considering new rules for preventing runs in the so-called shadow banking sector, particularly in asset management firms.

  • January 30, 2015

    Ex-Furniture Brands Execs Duck Investor Fraud Suit

    A St. Louis federal judge has dismissed an investor class action claiming Ralph Scozzafava, the former CEO of Furniture Brands International Inc., and former CFO Vance Johnston defrauded investors by overstating 2012 sales before the company's plunge into bankruptcy the following year.

  • January 30, 2015

    Ex-Sentinel CEO Gets 14 Years For $665M Fraud

    Eric A. Bloom, the former Sentinel Management Group Inc. CEO convicted last year of running a colossal fraud that bankrupted the investment firm and bilked its customers out of $665 million, was sentenced to 14 years in prison Friday by an Illinois federal judge.

  • January 30, 2015

    SEC Dismisses Herbalife Insider Trading Case

    The five-member U.S. Securities and Exchange Commission agreed Thursday to dismiss insider trading charges against Jordan Peixoto, who allegedly traded options on Herbalife stock in the run-up to hedge fund manager Bill Ackman's public $1 billion bet against the company.

  • January 30, 2015

    HAS Capital Nabs $412M In Manufactured Housing ABS

    Real estate-focused private equity group HAS Capital LLC on Friday said that it has agreed to acquire $412 million worth of interests in certain asset-backed securities, structured financings and manufactured housing related assets from Origen Financial Inc.

Expert Analysis

  • The 1st FCPA Case Of 2015

    Paul Friedman

    The former owner and president of Chestnut Consulting Group Inc. was recently charged with violating the Foreign Corrupt Practices Act and Travel Act and participating in a scheme to launder the proceeds of those crimes. This case continues the enforcement trend against individuals and involves the rarely used “public international organization” element of the FCPA’s “foreign official” definition, say attorneys with Morrison & Foerster LLP.

  • 10 Significant 2014 Developments Affecting Private M&A

    Diane Holt Frankle

    A 2014 decision provides guidance to parties on what constitutes a pending or threatened action by a third party that may form the basis for an indemnifiable claim, and the scope of notice required to make a claim. This and other legal developments are important for buyers and sellers to consider when negotiating, structuring and drafting agreements for private mergers and acquisitions, say attorneys with Kaye Scholer LLP.

  • 3rd Circ. Joins Effort To Construe Morrison

    Jonathan E. Richman

    The Third Circuit’s United States v. Georgiou decision should resolve any question about whether the OTC Bulletin Board and the Pink OTC Markets Inc. are "American stock exchanges" under Morrison v. National Australia Bank’s first prong, say attorneys with Proskauer Rose LLP.

  • New Tool For Holdout Bondholders: The Trust Indenture Act

    Keith A. Simon

    By finding that Section 316(b) of the Trust Indenture Act protects a bondholder’s ability to sue in the practical sense, and not just the procedural right to sue, the Southern District of New York may have given minority bondholders significant leverage in future negotiations with distressed companies and secured lenders, say attorneys with Latham & Watkins LLP.

  • 3 Considerations For Audit Committees In 2015

    James B. Carlson

    Audit committee members are facing increased demands heading into 2015, which expose them to greater regulatory scrutiny and potential liabilities, and provide the basis for proxy and shareholder activists to oppose their re-election. Public companies, as well as private companies considering accessing the capital markets, need to be mindful of certain considerations, say attorneys with Mayer Brown LLP.

  • Key Questions When Selecting E-Discovery Vendors

    David Houlihan

    While e-discovery remains a critical pain point in litigation, the "solutions" supporting its processes continue to evolve. In order to help organizations navigate the sea of options, we conducted research with 21 organizations across e-discovery market segments to understand the factors involved in successful e-discovery investments, says David Houlihan of Blue Hill Research Inc.

  • A 1st Look At Potential Reach Of 2nd Circ. Newman Decision

    Harry Sandick

    A New York federal judge recently vacated previously accepted guilty pleas in U.S. v. Conradt, an insider trading prosecution brought under the “misappropriation” theory. There is now an increased likelihood that the Second Circuit’s decision in U.S. v. Newman will be read by other judges to apply to cases brought under both the classical and misappropriation theories, say attorneys with Patterson Belknap Webb & Tyler LLP.

  • And Now A Word From The Panel: 2014 JPML Practice Trends

    Alan E. Rothman

    At its December session, the Judicial Panel on Multidistrict Litigation considered the second attempt by a distributor of dietary supplements to create an MDL proceeding, raising the prospect of the first Hawaii MDL proceeding in nearly 20 years. But as we gear up for the panel hearing on Thursday, let's also consider how JPML trends of 2014 compare with prior years, says Alan Rothman of Kaye Scholer LLP.

  • Increasing Deference To Boards — But Not 'Anything Goes'

    Robert C. Schwenkel

    Over the past year, Delaware courts have continued a trend in their opinions toward increased judicial deference to the decisions of independent and disinterested directors. What has changed is the lens through which the courts view, and thus apply, the fundamental ground rules for review of a sale process, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • 10-K Conundrum: How SEC Filings Breed Employment Claims

    Jessica Linehan

    A recent Seventh Circuit decision provides a cautionary tale for employers deciding what level of detail about litigated matters to include in publicly disclosed U.S. Securities and Exchange Commission filings, say attorneys with Dorsey & Whitney LLP.