Securities

  • February 12, 2016

    Signature Bank Wants Out Of Chinacast Suit Over $35M Theft

    Signature Bank urged a New York federal judge Friday to toss Chinacast Education Corp.’s complaint against it in a lawsuit accusing Signature and other banks of negligently allowing Chinacast’s ex-CEO to illegally transfer $35 million to a sham company following a 2009 public offering, arguing the claims are preempted and untimely.

  • February 12, 2016

    Cablevision Pays $21M To End Dolan Compensation Row

    Cablevision Systems Corp. said it paid $21 million to settle a suit filed by Thomas C. Dolan, a company director and son of founder Charles Dolan, over compensation-related claims, according to documents filed Friday with securities regulators.

  • February 12, 2016

    CoreLogic, Morgan Stanley End Trade Secrets Release Feud

    CoreLogic and Morgan Stanley have settled the data broker’s appeal hoping to avoid disclosing trade secrets that helped fuel Prudential’s fraud claims against Morgan Stanley deriving from more than $1 billion in residential mortgage-backed securities, a New Jersey appeals court said Friday.

  • February 12, 2016

    SEC Judge Fight Belongs In Federal Courts, 4th Circ. Hears

    A financial adviser facing $15 million in potential fines and disgorgement for alleged securities fraud told the Fourth Circuit on Friday that a Maryland federal judge was wrong to toss her suit challenging the constitutionality of the U.S. Securities and Exchange Commission's in-house court.

  • February 12, 2016

    SEC Settles Case, Drops Penalty Against British Hedge Fund

    The U.S. Securities and Exchange Commission has reached a settlement with bankrupt British hedge fund Pentagon Capital Management over an alleged market-timing scheme, agreeing to not seek a civil penalty that was once set at $38 million before being cut by the Second Circuit.

  • February 12, 2016

    Navient Hid Compliance Failures From Investors, Suit Says

    Navient Corp. misled investors to believe that its loan services complied with federal regulations, causing shares to fall after the Consumer Financial Protection Bureau and Hillary Clinton raised red flags, a proposed investor class alleged in Delaware federal court on Thursday.

  • February 12, 2016

    DC Court Revives Carlyle's Coverage Bid For Investor Suits

    A D.C. appeals court on Thursday reversed a decision freeing 16 insurers from defending or indemnifying Carlyle Investment Management LLC against investor class actions over the demise of an offshore mortgage-backed securities investment fund, finding that a professional services exclusion does not unambiguously bar coverage.

  • February 12, 2016

    CFTC Claims It Has New Proof Of Chicago Trader's 'Spoofing'

    The Commodity Futures Trading Commission told an Illinois federal court Thursday it wants to expand its case accusing a trader and his Chicago firm of “spoofing,” claiming it found fresh evidence that the firm has continued to manipulate supply and demand in the market months after the watchdog filed its complaint.

  • February 12, 2016

    Oil Slump Puts Energy Co. Disclosures Under Microscope

    With cratering oil prices wreaking havoc on energy companies' financial health, increased scrutiny from both the U.S. Securities and Exchange Commission and potentially litigious investors is turning up the heat on firms to ensure they're adequately disclosing how much danger they're actually in, attorneys say.

  • February 12, 2016

    Ex-Carlyle Portfolio Manager Launches $100M Retaliation Suit

    A former Carlyle Group portfolio manager hit his ex-employer with a $100 million retaliation suit Tuesday in Connecticut federal court, accusing the firm of firing him and cheating him out of a bonus for raising concerns about one of its fund’s risky investment in freight derivatives.

  • February 12, 2016

    Argentina Targets Injunctions In Debt Settlement Talks

    Argentina creditors holding claims and legal judgments over the republic’s 2001 debt default will have until Feb. 18 to explain why a court injunction limiting the country’s ability to pay individual investors shouldn’t be lifted in light of the country’s $6.5 billion settlement offer, a New York federal judge ordered Thursday.

  • February 12, 2016

    Groupon Floats $45M Settlement In Shareholder Suit

    Investors who sued Groupon in Illinois federal court for allegedly inflating the price of its 2011 initial public offering have reached a proposed $45 million settlement with the online deals site, their attorneys announced Friday.

  • February 12, 2016

    FINRA Sends Plan For Algorithmic Developers To SEC

    The Financial Industry Regulatory Authority on Thursday filed a proposed rule with the U.S. Securities and Exchange Commission that would require algorithmic trading developers to register as securities traders, leaving the rule intact despite receiving mixed reviews.

  • February 12, 2016

    SEC Says Calif. Auditor Was Soft On Chinese Valve Co.

    California accounting firm Frazer LLP and two employees didn't scrutinize an acquisition and reported tax payments by energy industry component manufacturer China Valves Technology Inc., even though they had spotted potential problems, the U.S. Securities and Exchange Commission alleged Thursday in an administrative proceeding.

  • February 12, 2016

    Dewey Exec Rails Against DA In Bid To Dodge 2nd Trial

    The former chief financial officer of Dewey & LeBoeuf LLP on Friday blasted opposition from the Manhattan District Attorney’s Office to his efforts to escape a second criminal trial over accusations of defrauding the defunct firm’s financial backers, criticizing prosecutors' silence on key issues and efforts to portray the executive as a rich hothead.

  • February 12, 2016

    Insurer Continues Push For Bench Trial In Ponzi Scheme Row

    Continental Casualty Co. maintained Thursday that a New York federal judge should personally decide whether it “unreasonably delayed” its decision to rescind a policy issued to Marshall Granger & Co. LLP in light of a $2 million Ponzi scheme perpetrated by the firm's executives, claiming the judge could end the case in one fell swoop.

  • February 12, 2016

    Chicago Firms Hit With Malpractice Suits Over Business Row

    Strauss & Malk LLP, Siprut PC and several attorneys were hit with a malpractice suit Thursday in Illinois federal court accusing them of botching a businessman’s suit against his former partner over the ownership of a portfolio of GPS mapping patents.

  • February 12, 2016

    Trust Seeks $20M Tax Refund Related To Madoff Losses

    A marital trust that lost money in Bernie Madoff’s Ponzi scheme filed suit against the federal government in Florida federal court Thursday, seeking a $20 million tax refund related to reported income that was found to be nonexistent after the scheme imploded.

  • February 12, 2016

    Deutsche Bank Aims To Calm Market With $5.4B Debt Buyback

    Deutsche Bank AG on Friday announced plans to buy back $5.4 billion worth of its outstanding debt in a bid to reassure investors that Germany’s largest bank is strong enough to survive recent market turbulence.

  • February 12, 2016

    Shkreli, Kaye Scholer Atty Say SEC Case Can’t Wait

    Ex-CEO Martin Shkreli and the Kaye Scholer LLP partner accused of committing securities fraud with him fought back Thursday against prosecutors’ bid to halt the U.S. Securities and Exchange Commission suit against them, saying the suit can’t wait for their criminal case.

Expert Analysis

  • Additional Thoughts On Class Plaintiff 'Pick-Offs'

    Fred T. Isquith

    There are those who have suggested that the U.S. Supreme Court in Campbell-Ewald v. Gomez left plenty of room for a defendant to “pick off” a plaintiff. Not so, according to Eastern District of New York Judge Sandra Feuerstein's decision in Brady v. Basic Research, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • Defining 'Securities Claims' In D&O Policies

    Kevin M. LaCroix

    The Ninth Circuit’s recent determination that the phrase “securities of” in Impac Mortgage's directors and officers insurance policy refers to Impac’s own shares is, in and of itself, unremarkable. What is perhaps of greater interest is the question whether a D&O policy should be providing coverage for claims that did not involve a policyholder’s own securities, says Kevin LaCroix of RT ProExec.

  • Amended Rule 26’s Proportionality Standard: The First 60 Days

    Gregory Brown

    While the removal of the familiar “reasonably calculated to lead to the discovery of admissible evidence” standard suggests a departure from prior practice, the first opinions from the federal courts implementing amended Federal Rule of Civil Procedure 26(b)(1) suggest otherwise, says Gregory Brown of Kaufman Dolowich & Voluck LLP.

  • A Step Toward Greater Transparency In Housing Finance

    Christopher L. Dueringer

    Freddie Mac and Fannie Mae have made various changes over the past few years to reduce the risk lenders face when selling mortgages to Freddie and Fannie, and to provide greater clarity and procedural assurances. The recently announced independent dispute resolution process furthers that effort, say Christopher Dueringer and Jason Stavely of Bryan Cave LLP.

  • How Does Skadden Stay No. 1?

    Elizabeth Duffy

    Analyzing the reasons why clients choose certain firms reveals a great deal about what is important and valued in the marketplace. Based on interviews with a random sample of over 600 heads of legal in the largest U.S. organizations, Elizabeth Duffy, vice president of Acritas US Inc., identifies the core brand drivers of Skadden Arps Slate Meagher & Flom LLP.

  • A Deep Dive Into SEC’s Latest Mining Disclosure Proposal

    Michael R. Littenberg

    Late last year, the U.S. Securities and Exchange Commission issued its long-awaited proposed rule on the disclosure of resource extraction payments by public companies — the SEC’s second bite at the apple after an earlier rule was vacated in court. Michael Littenberg and Marvin Tagaban of Ropes & Gray LLP detail the scope and requirements of the new proposal and what companies should be doing now.

  • Inside EU's Proposal For New Prospectus Regulation

    Tobia Croff

    The main concern related to the new “simplified” disclosure regime recently proposed by the European Commission for companies issuing shares or debt on the market is whether the simplifications introduced mean less protection for investors, say attorneys with Shearman & Sterling LLP.

  • OPINION: The Road To Partnership Must Keep Evolving

    Daniel L. Butcher

    In a recent Law360 article it was suggested that promotion to partner was a competition between associates and that taking maternity, paternity or family medical leave could impact an associate's chances at promotion. But this sort of ethos — which may have contributed to law firms’ success in the past — is not the best way to secure the industry's future, says Daniel Butcher, managing partner of Strasburger & Price LLP.

  • 9th Circ. Muddies Loss Causation

    William F. Sullivan

    The Ninth Circuit in Jacksonville Police and Fire Pension Fund v. CVB Financial added another wrinkle to the determination of whether and when the public disclosure of an internal investigation or a government subpoena establishes loss causation under the federal securities laws, say attorneys with Paul Hastings LLP.

  • Securities Law Considerations In Marketplace Lending

    Anthony R. G. Nolan

    The marketplace lending industry continues to mature and the regulatory landscape continues to evolve to address the unique challenges it poses. Anthony Nolan and Edward Dartley of K&L Gates LLP discuss some federal securities law considerations that are critical to the structures and business models of online marketplaces and their interactions with investors.