Securities RSS

  • April 16, 2014

    Hedge Fund Asks High Court To Tackle Disgorgement Limits

    A British hedge fund that used a U.S. Supreme Court ruling last year to scrap a U.S. Securities and Exchange Commission penalty it faced, is again looking for help from the high court — this time to beat a $38 million disgorgement order from the same enforcement action.

  • April 16, 2014

    Morgan Stanley Can't Shake Oligarch's Securities Action

    A New York federal judge has refused to dismiss an insider trading and market manipulation lawsuit brought against Morgan Stanley and affiliates by a Russian oligarch-owned firm, ruling the issues raised in the case are not identical to those decided by a related arbitration, according to court documents unsealed Wednesday.

  • April 16, 2014

    NY AG's High-Speed Trading Probe Heats Up, Report Says

    New York Attorney General Eric Schneiderman’s office has sent subpoenas to at least a half-dozen New York- and Chicago-based firms specializing in high-frequency trading, the latest step in his investigation into whether those firms have an unfair advantage in the market, according to a report Wednesday.

  • April 16, 2014

    El Paso Looks To Toss Investor Suit Over $1.9B LNG Deal

    El Paso Corp. urged a Delaware Chancery judge Wednesday to toss an investor's derivative suit that claims a group of limited partners were soaked for $300 million in an overpriced $1.9 billion liquid natural gas deal, saying the transaction was a sound business judgment approved in good faith.

  • April 16, 2014

    Ex-Stryker, Sanofi Execs Sentenced For Insider Trading

    Two former executives of Sanofi-Aventis and Stryker Corp. were sentenced on Wednesday to a combination of prison time, supervised release and house arrest after pleading guilty in New Jersey federal court to using nonpublic information about their respective employers to fuel an insider trading network.

  • April 16, 2014

    UK Court Rejects Madoff Feeder Fund's Clawback Suit

    A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.

  • April 16, 2014

    OSI Zapped By Investor Suit Over Nude TSA Body Scanners

    A disgruntled OSI Systems Inc. shareholder on Tuesday sued the security technology maker’s board of directors, accusing them of misconduct that cost OSI $60 million in Transportation Security Administration contracts and threatened its ability to do business with the federal government again.

  • April 16, 2014

    Lucchese Associate Asks For Mistrial Due To Court Ejection

    A reputed Lucchese crime syndicate associate on Monday sought a mistrial in his prosecution for allegedly draining $12 million from a mortgage lender and forcing its bankruptcy, claiming a New Jersey federal judge infringed his rights and tainted the jury by ejecting him from court.

  • April 16, 2014

    CFTC Demands $645M Penalty For Peregrine Fraud

    The U.S. Commodity Futures Trading Commission asked an Illinois federal court on Wednesday to hit bankrupt Peregrine Financial Group Inc. with a monetary penalty of $645 million, nearly three times the amount of total investor losses from the brokerage firm’s nearly 20-year fraud and embezzlement scheme. 

  • April 16, 2014

    Legal Costs Drive BofA To $276M Quarterly Loss

    A series of settlements related to housing bubble-era mortgages and mortgage-backed securities drove up Bank of America Corp.'s litigation expenses to $6 billion for the first quarter of 2014, and led the bank to a $276 million loss for the quarter, Bank of America announced Wednesday.

  • April 16, 2014

    MF Global Brass Must Face Some Customer Claims

    An MF Global Inc. customer seeking at least $100 million in damages over the brokerage firm’s collapse may pursue some claims against Jon Corzine and five other top executives, a New York federal judge ruled Wednesday.

  • April 16, 2014

    BNY Mellon Escapes Madoff Feeder Fund Class Action

    A New York state judge dismissed a class action against BNY Mellon on Tuesday, saying the plaintiffs had failed to prove the investment bank showed gross negligence in ignoring key warning signs in Bernard Madoff's notorious $65 billion Ponzi scheme that caused investors massive losses.

  • April 16, 2014

    Ex-Rothstein CFO Charged With Aiding $1.2B Ponzi Scheme

    The former chief financial officer of convicted Ponzi schemer Scott Rothstein's law firm, Rothstein Rosenfeldt Adler PA, was charged in Florida federal court Wednesday with knowingly diverting investor money in support of the $1.2 billion scheme and floating checks to make the firm's finances seem legitimate.

  • April 16, 2014

    BofA Ponies Up $950M To End Insurer's RMBS Row

    Saddled with costly legal woes since its troubled takeover of Countrywide Financial Corp. in 2008, Bank of America Corp. said Wednesday it will pay as much as $950 million to settle Financial Guaranty Insurance Co.'s claims over residential mortgage-backed securities that went bust during the financial crisis.

  • April 16, 2014

    Taylor English Adds Ex-Bryan Cave Corporate, M&A Pro

    Atlanta law firm Taylor English Duma LLP said Friday that it has snagged a corporate finance, mergers and acquisitions, commercial contracts, sports and media industry wiz from Bryan Cave LLP to join its expanding corporate and business practice group.

  • April 16, 2014

    Scania Investors Advised To Accept $9B Volkswagen Offer

    Swedish shareholders association Aktiespararna recommended Wednesday that private shareholders of Swedish truck maker Scania AB accept Volkswagen AG's €6.6 billion ($9 billion) takeover bid, voicing rare support for a deal that has been largely derided by other local investors until now.

  • April 16, 2014

    Lehman Judge 'Deeply Troubled' By Saxena White Fee Bid

    A New York judge on Wednesday refused to approve a $30 million fee request by plaintiffs firms in a settled class action against Ernst & Young LLP over its auditing of Lehman Brothers Holdings Inc., saying he was "deeply troubled" by Saxena White PA's proposed cut.

  • April 16, 2014

    Yamana, Agnico Ink $3.5B Osisko Deal Amid Goldcorp Threat

    Osisko Gold Corp. greenlit an improved offer Wednesday from Yamana Gold Inc. to takeover the company for CA$3.9 billion ($3.56 billion) through a partnership with Agnico Eagle Mines Inc., as Goldcorp Inc. continued its hostile pursuit by nominating 11 executives to Osisko's board.

  • April 15, 2014

    Genworth Class Loses Cert. Bid Over ‘Moneytalk’ Fraud

    A New York federal judge on Tuesday denied certification for a putative class of investors alleging Genworth Financial Wealth Management Inc. committed securities fraud and breached its fiduciary duty, costing them millions, by falsely claiming the celebrity host of the radio show "Moneytalk" would oversee their portfolios.

  • April 15, 2014

    Life Partners Sues Schwab Unit Over Naked Short Sales

    Life Partners Holdings Inc. hit a Charles Schwab Corp. subsidiary with a suit in Illinois court Tuesday, alleging the brokerage, its former chief financial officer and one of its biggest customers created “counterfeit-phantom stock” through their abusive naked short-selling.

Expert Analysis

  • 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.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The Lessons And Limitations Of Chadbourne V. Troice

    Fred Isquith

    The U.S. Supreme Court's ruling in Chadbourne & Parke LLP v. Troice is unlikely to have a sweeping effect on securities or class action litigation. However, professions engaged in assisting clients obtain financing will likely change their internal controls to avoid potential problems in the future — we may even see law and accounting firms called into court to justify their actions, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • A New Approach To Classified Corporate Boards

    Philip Richter

    As institutional investors and proxy advisory firms push forward with the declassification movement, corporate governance constituencies might consider developing a modified classified board structure that could result in preserving the structure’s value-enhancing benefits while addressing shareholders’ concerns about board accountability, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • EU Sanctions May Criminalize Some US Business Activity

    Peter McMaster

    Given the extra-territorial character of the European Union's new financial sanctions against targeted Russians and Ukrainians, a person can aid and abet the commission of an offense by taking steps whose only effect is to facilitate a transaction. This places law firms, investment businesses and others engaged in international transactions at risk of accessory liability through their everyday work, says Peter McMaster of Appleby Global Group Services Ltd.