The U.S. Supreme Court’s recent Omnicare decision has factored into a New York federal judge’s Tuesday decision to ax with prejudice an investor lawsuit against Deloitte & Touche LLP and its Shanghai unit over their audits of a China-based education company whose former executives allegedly perpetrated a massive offering fraud.
The Commodities Futures Trading Commission accused two men of duping Florida churchgoers to invest $2 million in a phony fund that they tried to hide using Peregrine Financial Group Inc.'s collapse in a suit unsealed in a Florida federal court this week.
A California federal judge on Wednesday tossed a consolidated securities class action against Dreamworks Animation SKG Inc. alleging the company misled investors about the success of the animated movie "Turbo" and was too slow to take its $13.5 million write-down, saying the investors failed to show falsity or scienter.
The U.S. Securities and Exchange Commission has long been promising an enforcement action over employment agreements that violate Dodd-Frank Act whistleblower rules, but its case against KBR Inc. on Wednesday finally gave that promise teeth and paved a path for the agency to bring more.
A New York federal judge ruled Tuesday that a lawsuit against Citigroup Inc. and dozens of other banks failed for lack of personal jurisdiction and because real estate mogul Sheldon Solow’s claims that Libor manipulation cost him $100 million were brought too late.
The U.S. Commodity Futures Trading Commission on Wednesday sued Kraft Foods Group Inc. and Mondelez Global LLC, accusing the global food manufacturers of manipulating wheat prices and breaking limits on speculative positions on the grain used in products ranging from Oreos to Kraft Macaroni & Cheese.
A Florida appeals court on Wednesday upheld Lennar Corp.’s $1 billion award against California developer Nicholas Marsch III and his company, Briarwood Capital LLC, for defaming and extorting money from Lennar, ruling that Marsch had only himself to blame for sanctions that hobbled his defenses.
The Fifth Circuit denied a petition for writ of mandamus Wednesday by a man held in civil contempt for failing to comply with an asset turnover order after the U.S. Securities and Exchange Commission sued him for securities fraud in connection with his EB-5 regional center, ruling his arguments lacked merit.
A Massachusetts federal judge on Tuesday tossed a proposed putative securities class action accusing Sarepta Therapeutics Inc. of misleading investors over the chances of its muscular dystrophy drug eteplirsen hitting the market, saying that the biopharma company couched its optimistic statements with proper disclosures.
A Florida federal jury on Wednesday found investment manager George Levin liable on every count brought by the U.S. Securities and Exchange Commission for his involvement funneling investor money into Scott Rothstein's $1.2 billion Ponzi scheme.
Russian state oil company Rosneft said Tuesday it has settled a raft of international legal claims in connection with the alleged destruction of onetime oil giant Yukos Oil Co., whose breakup unleashed a wave of litigation and led to a $50 billion arbitration award for former Yukos shareholders in 2014.
An Idaho federal judge said Tuesday that the government cannot assert sovereign immunity to dodge a claim filed by the trustee of DBSI Inc. — a bankrupt real estate firm whose president and other officers were convicted of securities fraud — seeking the return of the bulk of $17 million in taxes.
The Second Circuit Court of Appeals on Wednesday revived a $60 million stock-drop suit accusing American International Group Inc. of multiple fraud schemes, saying that a district court erred when it abruptly tossed the suit without notifying the plaintiffs in advance.
Though the price tag of class action settlements has dwindled and filings against big companies have fallen, one area of securities litigation appears to be a bright spot for the plaintiffs bar, and investors may have the U.S. Securities and Exchange Commission to thank for it, according to a Cornerstone Research report issued Tuesday.
An attorney for JPMorgan Chase & Co., CEO Jamie Dimon and other executives urged the Second Circuit on Wednesday not to revive a shareholder suit over the bank’s $6 billion “London Whale” trading loss, denying claims that board members had failed to adequately investigate those responsible for the mishap.
A California federal judge refused Tuesday to dismiss allegations that chipmaker Advanced Micro Devices Inc. concealed catastrophically low yields of a vaunted new chip, saying the class of investor plaintiffs made a “strongly persuasive” case for all of its claims — even bad faith by company executives.
Private equity adviser Lynn Tilton on Wednesday became the latest respondent to a U.S. Securities and Exchange Commission enforcement action to challenge the constitutionality of its in-house court, when she sued the agency just two days after it accused her of defrauding investors in her distressed-debt funds.
The U.S. Securities and Exchange Commission on Wednesday brought its first enforcement action against a company for attempting to stifle the whistleblowing process through improperly restrictive language in a confidentiality agreement.
An Arkansas federal judge on Tuesday dismissed a consolidated shareholder derivative suit accusing Wal-Mart Stores Inc.'s board of concealing Mexican bribery claims from investors, ruling the plaintiffs failed to show the board knew about the supposed bribery or alleged efforts to torpedo a thorough investigation.
A New York federal judge on Tuesday took the reins in a suit accusing HSBC Bank USA NA of shirking its duties as trustee for 271 residential-mortgage-backed securities trusts after determining the district court had subject matter jurisdiction over the case.
As regulators in Latin America and around the world become increasingly more active, it has become more likely that non-U.S. companies that have securities trading on U.S. exchanges become involved in a U.S. securities class action lawsuit, such as the one against Chemical & Mining Co. of Chile Inc., which is entangled in an ongoing corruption and tax evasion scandal, says Kevin LaCroix of RT ProExec.
A Ninth Circuit opinion in a mortgage-backed securities-related case, Northstar Financial Advisors Inc. v. Schwab Investments, charts potential new pathways for claims for damages resulting from portfolio losses by mutual fund shareholders. However, the court’s opinion is inconsistent with established principles of investment company governance and litigation, say attorneys with K&L Gates LLP.
In light of recent changes to the ABA Model Rules of Professional Conduct, what are a lawyer’s ethical duties arising from new technology? And what should a lawyer know about this technology? Bradley Arant Boult Cummings LLP partner J.S. “Chris” Christie Jr. offers an in-depth assessment of what every lawyer should consider in 2015.
Although the details of China’s recently announced plan to restructure and consolidate its state-owned enterprises are still unknown, the prospect of any change to China’s vast SOE network raises potentially significant considerations for legal and compliance officials dealing with the definition of “foreign official” under the Foreign Corrupt Practices Act, say Ryan Bonistalli and Alex Brackett of McGuireWoods LLP.
As recent settlements demonstrate, regulators will focus on the nuts and bolts of Bank Secrecy Act/anti-money laundering compliance programs, including how transactions are monitored, how information is shared, and what controls are in place to detect, escalate and report suspicious activity, says Olivia Radin of Freshfields Bruckhaus Deringer.
Experienced counsel complained that the use of administrative hearings for complex fraud cases, including in the insider trading case of Jordan Peixoto, had constitutional implications. Ironically, few were willing to litigate this issue with the U.S. Securities and Exchange Commission, say Derrelle Janey and Robert Gottlieb of Gottlieb & Gordon LLP.
Many mediation orders state that attendees must have “full settlement authority” without providing clarity as to what that term actually means. Attendance by just outside counsel or a corporate spokesperson is not enough, even if someone else with full settlement authority is just a phone call or keystroke away, say Douglas Flaum and Kevin Broughel of Paul Hastings LLP.
While few details have been disclosed relating to the historic extension of Biomet Inc.'s deferred prosecution agreement, its warning is clear — where prosecutors question a company’s candor, cooperation or remediation of issues, the grip of formal oversight will not be easily released, say attorneys with Paul Hastings LLP.
A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.
For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.