Securities

  • September 2, 2014

    Credit Suisse Reportedly Probing Trader Misconduct

    Credit Suisse Group AG is conducting an internal investigation into allegations of trader misconduct on its European equities desk, according to Tuesday news reports.

  • September 2, 2014

    Allergan Hits Back After Valeant Stands By Business Model

    Allergan Inc. hit back on Tuesday against Valeant Pharmaceuticals International Inc.’s allegations Allergan lied to its shareholders about Valeant’s financial health amid Valeant’s attempted $53 billion hostile takeover, dismissing Valeant’s counterclaims as desperate distractions from Allergan’s insider trading suit.

  • September 2, 2014

    High Court Decision Time-Bars $388M MBS Suit, Judge Rules

    Citigroup Inc. and other banks on won a motion Friday effectively ending the Federal Deposit Insurance Corp.'s $388 million suit alleging their sale of toxic securities helped push Colonial Bank over a cliff when a New York federal judge ruled that a recent Supreme Court decision meant the case was filed too late.

  • September 2, 2014

    Darden Offers New Olive Branch To Activists As Vote Looms

    Darden Restaurants Inc. on Tuesday introduced a fresh slate of board nominees — including four activist picks — and a new structure, its latest concessions in an ongoing effort to relieve the pressure of a testy proxy fight stemming in part from the sale of its Red Lobster chain.

  • September 2, 2014

    Celera, PwC Hand Over $25M To Exit Investor Class Action

    Celera Corp. and PricewaterhouseCoopers LLP agreed on Friday to pay nearly $25 million to settle a shareholder class action in California federal court claiming Celera made overly optimistic revenue forecasts and covered up billing problems.

  • September 2, 2014

    Judge Tosses Gov't's Claim For Indemnity In $264M FCA Suit

    A Texas federal magistrate judge on Friday trimmed claims from a $264 million False Claims Act suit brought by the U.S. government over Americus Mortgage Corp.’s allegedly fraudulent procurement of government home insurance, saying he would not recognize the government’s federal common law claim for indemnity.

  • September 2, 2014

    SEC Claims Texas Advisory Firm Lied About Ties To Broker

    The U.S. Securities and Exchange Commission on Tuesday accused a Houston-based investment advisory firm of recommending that its client invest in certain mutual funds without disclosing that it was being paid by the broker offering the funds.

  • September 2, 2014

    Ousted House Leader Eric Cantor Joins Moelis & Co.

    Former House Majority Leader Eric Cantor, R-Va., has joined Wall Street investment bank Moelis & Co. as a senior manager and board member, the company announced Tuesday, landing on his feet after a surprise primary election loss in June.

  • September 2, 2014

    Mary Schapiro Fears SEC Money Market Rules Fall Short

    In an exclusive interview with Law360, Mary Schapiro, former chair of both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission, said she regrets not being able to pass tough money market rules while at the SEC, adding that she is "very nervous" that new provisions will do more harm than good.

  • August 29, 2014

    Madoff Trustee Seeks Repleadings In Bankruptcy Suits

    The bankruptcy trustee for Bernard Madoff’s investment fund asked a New York bankruptcy judge on Thursday for time to replead cases against Credit Suisse Group AG and others in light of new standards handed down from the district court.

  • August 29, 2014

    Carlyle Group To Pay $115M To Settle PE Collusion Row

    Carlyle Group LP has agreed to pay about $115 million to settle a long-running proposed class action brought against it and several other private equity firms for allegedly teaming up to depress prices in leveraged buyouts leading up to the financial crisis, according to media reports on Friday.

  • August 29, 2014

    Ex-Arthrocare CEO Gets 20 Years In $756M Fraud Case

    A Texas federal judge on Friday sentenced the former CEO of Arthrocare Corp. to 20 years in prison and the company's ex-CFO to 10 years after they were convicted of perpetrating a securities fraud that is now estimated at about $756 million, according to authorities. 

  • August 29, 2014

    Exxon Ruling Gives Employers More Leeway In Bonus Plans

    The Texas Supreme Court on Friday upheld an Exxon Mobil Corp. plan that stripped a top executive of $5 million in nonvested stock rights when he joined a rival energy firm, paving the way for more employers to use incentive plans to keep top talent in place without running afoul of the state's noncompete laws.

  • August 29, 2014

    Ex-Heartland Exec Beats SEC Insider Trading Suit

    A Wisconsin federal judge dismissed an insider trading case Friday brought against a former investment firm executive, three years after ruling in favor of the Securities and Exchange Commission, on grounds that the agency's arguments before appellate court had not been raised in district court.

  • August 29, 2014

    Ex-Mutual Benefits CEO Gets 20 Years For $837M Fraud

    Ailing former Mutual Benefits Corp. CEO Joel Steinger received a 20-year sentence Friday in Miami federal court for masterminding an $837 million insurance investment scam that the prosecutor said ranks among the country's worst frauds, alongside Bernie Madoff's and Scott Rothstein's Ponzi schemes.

  • August 29, 2014

    EXCLUSIVE: SEC Mistakenly Reveals Whistleblower's Employer

    In trumpeting its first-ever whistleblower award to a compliance and audit professional, the U.S. Securities and Exchange Commission on Friday also inadvertently disclosed information that could be used to determine the identity of a person who faced an enforcement action because of the whistleblower’s tip.

  • August 29, 2014

    SEC Judge Shouldn't Delay Steinberg's Industry Ban: Attys

    A U.S. Securities and Exchange Commission judge should waste no time in banning hedge fund manager Michael Steinberg from the securities industry over his insider trading conviction, despite a looming Second Circuit decision that could eventually set him free, enforcement attorneys said this week.

  • August 29, 2014

    ALJ Says SEC Must Cough Up Docs In Wedbush Action

    The administrative law judge overseeing the U.S. Securities and Exchange Commission's case against Wedbush Securities Inc. and two company officials denied the SEC's request to withhold 200,000 pages of documents from the respondents, saying Friday that the argument the documents are irrelevant falls flat.

  • August 29, 2014

    GFI Shareholder Suit Says CME Takeover Undervalues Co.

    Brokerage and trade services provider GFI Group Inc. and futures exchange operator CME Group Inc. were hit with a proposed shareholder class action in a New York court Friday to block CME’s $580 million takeover of GFI, alleging the deal undervalues the company.

  • August 29, 2014

    Ex-Rothstein Firm CFO Gets 5 Years For Aiding $1.2B Scheme

    The former chief financial officer of convicted Ponzi schemer Scott Rothstein's law firm, Rothstein Rosenfeldt Adler PA, was sentenced Friday to five years in prison for knowingly diverting investor money in support of the $1.2 billion scheme and floating checks to make the firm's finances seem legitimate.

Expert Analysis

  • 10 Best Practices For Interacting With OCIE Examiners

    Bradley J. Bondi

    Keeping in mind that an examination by the U.S. Securities and Exchange Commission's Office of Compliance Inspections and Examination is not a deposition does not mean that firm employees should speculate or guess at answers, which can have the same devastating effect as leaving out details, say Bradley Bondi and Lex Urban of Cadwalader Wickersham & Taft LLP.

  • From The Book Of Jargon: Derivative

    In this short video — the latest installment from the "Book of Jargon" — Latham & Watkins LLP partner Rafal Gawlowski defines "derivative."

  • 5 Reasons Large Companies Are Turning To Boutique Firms

    David M. Levine

    The departure of attorneys from large firms is a trend that has increased as a result of the Great Recession and its aftermath, and boutique firm partners who previously worked at large firms understand the potential large-firm pitfalls, say attorneys with Levine Kellogg Lehman Schneider & Grossman LLP.

  • High Court Should Review Scope Of Crime-Fraud Exception

    Matthew D. Lee

    Given the significant differences among the circuits in examining the crime-fraud exception, and the Third Circuit’s recent erosion of the attorney-client privilege, U.S. Supreme Court review is necessary to ensure the consistent treatment of litigants and to protect the privilege, say attorneys with Blank Rome LLP.

  • 2nd Circ. Has Made Morrison Standard Even More Arbitrary

    J. Robert Brown Jr.

    The Second Circuit was appropriately concerned with the implications of the Section 10(b) test set forth by the U.S. Supreme Court in Morrison v. National Australia Bank. But in ParkCentral Global Hub Ltd. v. Porsche Automobile Holdings, the court developed a test only used to deny the availability of Rule 10b-5, says J. Robert Brown Jr. of Sturm College of Law at the University of Denver.

  • Del.’s Adoption Of Garner — And Practical Ways To Respond

    Bruce A. Ericson

    A Delaware Supreme Court decision in a Wal-Mart shareholder suit connected to alleged bribery may breathe new life into the Garner doctrine and serves as a reminder of the fragility of the attorney-client privilege, say Bruce Ericson and Dorothy Kaslow of Pillsbury Winthrop Shaw Pittman LLP.

  • Should Bank Directors’ Fiduciary Duties Be Expanded?

    Kevin M. LaCroix

    A recent speech by a Federal Reserve Board governor has once again raised the issue of whether bank boards should face “broadened” fiduciary duties, but creating a liability regime that would encourage further litigation and expand the potential liabilities of bank directors would accomplish little, says Kevin LaCroix of RT ProExec.

  • From The Book Of Jargon: Accelerated Share Repurchase

    In this short video — the latest installment from the "Book of Jargon" — Latham & Watkins LLP partner Rafal Gawlowski defines "accelerated share repurchase."

  • Russia's Commitment To Int'l Law Will Be Tested By Yukos

    Emmanuel Gaillard

    Whether the Russian Federation complies with the Permanent Court of Arbitration's final award — $50 billion — for its destruction of Yukos Oil Company will demonstrate the extent of the country's commitment to honoring international obligations and the rule of law, say Emmanuel Gaillard and Yas Banifatemi of Shearman & Sterling LLP.

  • Corp. Governance Politics: Much Ado About Symbolic Change

    Edward B. Rock

    The rhetoric used by shareholder activists on all sides should be taken with a large pinch of salt — most issues described as momentous generally are not — and these symbolic battles may divert attention from more meaningful reform, say professors at the New York University School of Law and the University of Pennsylvania Law School.