Securities

  • September 17, 2014

    2nd Circ. Stays Goldman, Citi Win In FINRA Arbitration Bid

    The Second Circuit agreed Tuesday to hold off on issuing a mandate in two cases where it blocked arbitrations against Goldman Sachs & Co. and Citigroup Global Markets Inc. before the Financial Industry Regulatory Authority, allowing time for the public financing authorities that sought arbitration to appeal to the U.S. Supreme Court.

  • September 17, 2014

    Freddie Mac Sues Deloitte For $1.3B Over Taylor Bean Fraud

    The Federal Home Loan Mortgage Corp. filed a $1.3 billion suit against Deloitte & Touche LLP in Florida state court Monday, claiming the accounting giant turned a blind eye to fraud at Taylor Bean & Whitaker Mortgage Corp. and produced flawed audit reports.

  • September 17, 2014

    Holder's Whistleblower Proposal Omits Key To SEC's Success

    U.S. Attorney General Eric Holder's proposal Wednesday to dramatically increase the size of monetary awards Wall Street tipsters can receive under the Financial Institutions Reform, Recovery and Enforcement Act may bring in more leads, but some experts say an amped-up rewards program should also take a cue from the U.S. Securities and Exchange Commission, which offers anonymity to those who come forward.

  • September 17, 2014

    NJ Bill Seeks To Block Political Pension Fund Investments

    A New Jersey lawmaker on Wednesday announced plans to introduce legislation to keep political favoritism out of public pension investments by applying pay-to-play prohibitions and requiring greater transparency from the State Investment Council, a bill in response to a brewing controversy over Republican-friendly contributions.

  • September 17, 2014

    Renewed DOJ Fraud Focus Should Worry Bank Execs

    U.S. Attorney General Eric Holder’s proposal Wednesday to raise the cap on rewards for certain financial industry whistleblowers and make a renewed effort to pursue criminal financial fraud cases should give bank executives pause as they consider the prospect of prosecutors knocking on their doors, attorneys say.

  • September 17, 2014

    FINRA Axes Changes In 3rd Plan For Customer Account Docs

    The Financial Industry Regulatory Authority Inc. is making a third attempt to nail down rules on customer statements, posting a new proposal Tuesday that largely abandons 2011 and 2009 proposals to change statements from quarterly to monthly, but also would permit electronic statements for the first time.

  • September 17, 2014

    Ex-Hedge Fund Chief Cheated Clients To Buy Porsche: SEC

    The U.S. Securities and Exchange Commission on Wednesday charged an ex-hedge fund manager for WestEnd Capital Management LLC of bilking his clients for excessive fees, which he spent on a Porsche and upgrades to his multimillion-dollar home.

  • September 17, 2014

    ECOtality Shareholders Get Plug Pulled On Class Action

    A California federal judge on Tuesday tossed a putative shareholder class action against the directors and officers of bankrupt electric vehicle charger maker ECOtality Inc., ruling that their allegedly misleading statements about the company's viability were either protected forward-looking statements or not intentionally misleading.

  • September 17, 2014

    AgFeed To Pay $7M To Settle Securities Class Action

    AgFeed Industries Inc. agreed to pay $7 million to end a putative class action brought by investors who said the bankrupt animal nutrition and commercial hog-production company and its executives lied about the company’s financial health, according to a filing in Tennessee court Wednesday.

  • September 17, 2014

    Fed Keeps Record-Low Interest Rate, Cuts Bond Buys By $10B

    The Federal Reserve said Wednesday that it would maintain historically low interest rates for a "considerable time" while cutting another $10 billion from its bond-buying stimulus program.

  • September 17, 2014

    Valeant Slams Allergan Doc Redactions In Insider Trading Row

    Valeant Pharmaceuticals International Inc. sought a court order Tuesday barring Allergan Inc. from redacting documents on grounds of business strategy in its insider trading suit against Valeant, alleging its takeover target is inventing a federal privilege to justify improperly withholding information.

  • September 17, 2014

    DOJ To Target Individuals Over Financial Fraud, Holder Says

    The U.S. Department of Justice is building criminal cases against individuals as it continues probes into financial fraud in the foreign exchange and residential mortgage-backed securities spheres, Attorney General Eric Holder revealed Wednesday, but he said punishing individuals would be easier if U.S. laws were updated as the U.K.’s have been.

  • September 17, 2014

    Spirited CFTC Launches New Uncleared Swap Margin Plan

    A newly reconstituted U.S. Commodity Futures Trading Commission did not shy away from debate Wednesday as it voted to propose margin requirements for uncleared swap transactions and put the final stamp on a measure intended to help certain government-run energy producers and suppliers stay in the derivatives markets.

  • September 17, 2014

    BNY Mellon Says RMBS Suit Over Loan Docs Falls Short

    The Bank of New York Mellon Corp. on Monday pushed back against banks, insurers and other investors’ lawsuit against BNY as trustee of pools of poor-performing residential mortgage-backed securities, arguing that it is being accused of breaching duties that aren't in the pooling and servicing contracts.

  • September 17, 2014

    Ex-MySpace Owner Accuses Google, News Corp. Of Collusion

    A former MySpace.com owner on Tuesday accused News Corp., which bought the social network for $580 million, Google Inc. and Ask.com’s owner of colluding to keep MySpace’s price down before the sale, claiming in a proposed class action that MySpace should have been worth $32 billion.

  • September 17, 2014

    Punch Taverns Shareholders OK $3.8B Restructuring Deal

    Punch Taverns PLC said on Wednesday that shareholders have approved the company’s deal to restructure about £2.26 billion ($3.78 billion) of its debt, an effort to restore the struggling U.K. pub chain’s balance sheet that would also significantly dilute its equity shares.

  • September 17, 2014

    Va. Sues Barclays, Others For $1.15B Over RMBS Fraud

    Barclays PLC, Citigroup Inc. and Bank of America Corp. are among 13 banks whose units have been slapped with a $1.15 billion suit by the state of Virginia for allegedly selling toxic residential mortgage-backed securities to the state's retirement fund, Virginia's attorney general announced Tuesday.

  • September 17, 2014

    Mentor Investors' Appeal Over $1.1B J&J Sale Tossed

    A California appeals court has ended investor litigation against Mentor Corp. over its $1.1 billion sale to Johnson & Johnson, saying the breast-implant maker's board didn't betray shareholders by choosing the $31-per-share offer, ignoring much higher estimates, because the financial context was uncertain in late 2008 when the sale was conceived.

  • September 17, 2014

    HFT Co. Latour Fined $16M For Mismanaging Capital Buffer

    The SEC registered a landmark $16 million fine Wednesday against high-frequency trading giant Latour Trading LLC for failures connected to its capital cushion, which the agency says Latour repeatedly miscalculated by as much as $37 million for two years — a mistake facilitated by high volume, according to a top official.

  • September 17, 2014

    Cadwalader-Nomura Malpractice Fight Stayed By Top NY Court

    New York's top court on Tuesday halted trial court proceedings in Nomura Asset Capital Corp.'s suit against Cadwalader Wickersham & Taft LLP alleging malpractice related to the firm's work on a securitized real estate loan portfolio amid dueling appeals from a ruling that winnowed the case.

Expert Analysis

  • Settling After Class Denial — If Only It Were That Easy

    Michael V. Rella

    The denial of class certification, while significant, does not conclusively dispatch a class claim. The class claim might reappear even after the defendant settles with the former lead plaintiff and the final judgment is entered, say James Goldfarb and Michael Rella of Murphy & McGonigle PC.

  • Forum Selection Bylaws Are Best Considered On A Clear Day

    Michael G. O’Bryan

    An Oregon court’s decision in Roberts v. TriQuint SemiConductors Inc. shows that enacting an exclusive forum provision on a clear day, before a company sees the storm clouds of litigation on the horizon, may support the enforceability of the provision, say attorneys with Morrison & Foerster LLP.

  • Scotland — The 'Succession Event' Question

    James Duncan

    A vote for an independent Scotland will have many consequences for the United Kingdom. Unsurprisingly, the implications for U.K. sovereign credit default swaps have not featured prominently in the public debate, say attorneys with Shearman & Sterling LLP.

  • Bandfield Confirms Aggressive FATCA Enforcement Tactics

    Miriam L. Fisher

    The scheme detailed in the U.S v. Robert Bandfield indictment follows a well-worn path of prior offshore financial frauds, but the prosecutors’ focus on the defendants’ alleged attempt to avoid compliance with the Foreign Account Tax Compliance Act sends a strong message to the global financial community, say Miriam Fisher and Brian McManus of Latham & Watkins LLP.

  • Readying For A New First Monday

    Fred T. Isquith

    Fall is in the air. September is flying by. In a few weeks the U.S. Supreme Court will be convening again. But while there are securities cases on the docket, there is nothing as momentous as Halliburton, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • 2nd Circ. Ruling Clears FINRA Arbitration Confusion

    Jeff Kern

    The Second Circuit’s decision in Citigroup Global Markets Inc. v. Abbar provides an efficient framework for determining whether the Financial Industry Regulatory Authority’s mandatory arbitration rule is applicable to investor-initiated claims, and should serve to diminish the sort of “sprawling litigation” that transpired there, say Jeff Kern and Manuel Gomez of Sheppard Mullin Richter & Hampton LLP.

  • OPINION: Pro Bono May Help Diversity Recruiting Efforts

    David A. Lash

    A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.

  • More State Courts Upholding Forum Selection Bylaws

    Melissa L. Nunez

    The recent case of Groen v. Safeway represents a clear move by California to join the growing list of states going on record to endorse the enforceability of forum selection provisions in corporate bylaws, say Robert Friedel and Melissa Nunez of Pepper Hamilton LLP.

  • Esquenazi In Korea: Identifying Instrumentalities Abroad

    Samantha Dreilinger

    Efforts to apply the Esquenazi definition in Korea — a country where the government plays a significant yet often obscured role in several important industries — reveal that the definition leaves important questions unresolved and provides little comfort to companies trying to determine whether a potential business partner may be subject to the Foreign Corrupt Practices Act, say attorneys with Cadwalader Wickersham & Taft LLP and Kim & Chang.

  • How Research Efficiency Impacts Law Firm Profitability

    David Houlihan

    For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.