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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.