Activist investor Bill Ackman is once again going after Herbalife Ltd., the health supplement distributor, saying Tuesday that the company’s structure violates direct-selling laws in China, a country that has become increasingly important to Herbalife’s bottom line.
The Financial Industry Regulatory Authority Inc. announced Wednesday that it has ordered two broker-dealer firms to pay a combined $1.275 million for failing to supervise the use of their consolidated reporting systems and retain their reports in accordance with securities laws.
When I was a young associate, a client told the partner on the deal team that he did not work with women. The deal team leader told the client that he didn’t have a choice. I then worked with the client for over 10 years, says Barbara Rummel, a member of Lindquist & Vennum LLP's management committee.
Promoting yourself is a bit uncomfortable and risky for women since we may be viewed as immodest and aggressive. I did it anyway, making sure that clients, potential clients and law firm management knew about successes. When I did, I was perceived as a leader. That was the real breakthrough, says Shannon Broome, head of Katten Muchin Rosenman LLP's air quality and climate change practice.
The Texas State Securities Board on Monday ordered an oil and gas company that billed itself as the first to take investments by Bitcoin to stop selling unregistered securities, with the agency finding the company used fraud to sell working interests in several oil and gas wells in the state.
A New York federal judge tossed a proposed class action Tuesday brought by Transocean Ltd. investors who claimed they were deceived about the company's safety practices when it bought fellow drilling business GlobalSantaFe Corp., finding the suit time-barred by the relevant statute of repose.
New York financial regulator Ben Lawksy's vow to punish individuals — not just businesses — in mortgage and bank probes suggests the era of stand-alone corporate settlements is ending, and while experts saw that as a welcome change, some warn an overemphasis on people could entice top executives to look for sacrificial lambs.
An attorney for former Bernard Madoff aide Annette Bongiorno on Tuesday accused prosecutors of attempting to distract jurors from the case and make them “jealous” by repeatedly emphasizing the defendant’s previous wealth, including a $50 million investment account and her silver Bentley.
A New York federal judge on Tuesday refused to revisit his February decision tossing breach of fiduciary duty claims from a class action against bankrupt MF Global Inc.’s former top brass, ruling again that the plaintiffs had waived those claims.
The U.S. Securities and Exchange Commission sued bankrupt AgFeed Industries Inc. and former principals of the company on Tuesday over an alleged accounting fraud scheme, in which revenues were inflated by $239 million in order to boost the industrial hog producer’s stock price.
The Pennsylvania Superior Court upheld a trial court decision letting law firm McNees Wallace & Nurick LLC off the hook in a case accusing the firm of committing legal malpractice in connection with All-Staffing Inc. co-owner Alfonso Sebia's sale of stock during an acquisition of the company.
Jos. A. Bank Clothiers Inc. said Tuesday it would sell itself to rival Men's Wearhouse Inc. in a $1.8 billion deal, ending one of the year's most contentious M&A sagas. Though Jos. A. Bank had initially fashioned itself the buyer, deal watchers said it became the transaction's real winner by leveraging a separate deal for Eddie Bauer to drive up its own price by hundreds of millions of dollars.
CommonWealth REIT, embroiled in a long-running proxy battle with a pair of activist funds seeking to remake the property owner's board of trustees, went on the offensive Tuesday with a letter to shareholders that props up its business strategy and outlines the benefits of recent changes.
DynaResource Inc. has dropped a suit in Texas state court against Goldgroup Resource Inc. alleging it suffered more than $14 million in damages when Goldgroup improperly claimed to own half of a 178,000-acre gold mining project in Mexico, Goldgroup said Tuesday.
A New York judge on Tuesday sided with Zurich American Insurance Co. in a suit by a Morgan Stanley unit claiming the insurer wrongly denied around $1.7 million in coverage for a U.S. Securities and Exchange Commission probe, finding Morgan Stanley didn’t give proper notice of its claim.
Cooley LLP has bolstered its business department by hiring a former Latham & Watkins LLP leading corporate and securities practitioner and a Silicon Valley deal maker from a technology venture capital firm for its New York City and Palo Alto, Calif., offices respectively, Cooley announced Monday.
The trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC’s estate filed suit Tuesday against several individuals who launched class actions in Florida federal court to recover certain Madoff-related damages, saying they are violating an order barring them from pursuing the litigation.
In class action filed in New York federal court on Monday, investment firm AIS Capital Management LP accused Deutsche Bank AG, Barclays Bank PLC and three other banks of manipulating the benchmark used to determine the price of gold, adding to the banks’ mounting legal woes over the issue.
Successfully handling high-profile matters, with and against so many well-known insurance coverage professionals, offered me a chance to break into, then gain prominence and respect in, an industry dominated by men, says Sherilyn Pastor, leader of McCarter & English LLP's insurance coverage group and a member of the firm's executive committee.
When you are in the middle of a trial or a large transaction and have missed one too many soccer games, it is easy to say you must make a change. But the best thing to do is to get through the madness, and then re-evaluate your personal and professional balance, says Heidi Goldstein, leader of Thompson Hine LLP's women's initiative.
Having a well-thought-out exit strategy for a portfolio company investment, particularly in a non-U.S. company, is important to the overall success of that investment. While there has been a noticeable increase in interest from non-U.S. companies in pursuing a U.S. securities exchange listing, private equity sponsors must remember that U.S. public companies are often at risk of class action lawsuits in connection with alleged violations of securities laws or fluctuations in stock price, says Derick Kauffman of Dechert LLP.
Much of last week’s argument in Halliburton v. Erica P. John Fund focused on the procedures available to defendants to rebut Basic v. Levinson's presumption of classwide reliance — which strongly suggests that if Basic survives, something needs to be done to ensure that its equally strong mandate regarding the presumption’s rebuttability is given effect, say Jen Spaziano and Allon Kedem of Skadden Arps Slate Meagher & Flom.
Scenarios that could trigger an internal investigation include a subpoena from a government agency seeking records and indicating a criminal investigation is underway for violations of insider trading, tax laws or fraud. In such cases, it is important for the company’s investigation to stay a step or two ahead. Consider the need for retaining separate counsel for certain employees and determine how to deal with third parties and former employees, say attorneys with Sheppard Mullin Richter & Hampton LLP.
One facet of the Hong Kong initial public offering process that has been considered recently in quite a bit of detail by regulators and market professionals is the use of pre-deal research reports produced by analysts at financial institutions. New regulatory guidelines raise concerns about policing analysts and the information provided to them, and one way to allay those concerns would be to ban pre-deal research altogether, says David Neuville of Cadwalader Wickersham & Taft LLP.
The economy has had a marked impact on the alternative dispute resolution industry, but much of that impact comes directly from the new dynamics between law firms and their clients. ADR providers have been keen observers of these trends and are learning to react creatively. It’s not all a bed full of roses from the ADR side, but there have been some positive changes, says Chris Poole of JAMS.
The Delaware Court of Chancery recently rejected a party’s attempt to object to the production of documents located in France on basis of the French Data Protection Act. Given the court’s reputation and influence in corporate litigation, In re Activision Blizzard Inc. Stockholder Litigation does not augur well for foreign parties hoping to resist U.S.-style discovery on basis of their country’s data privacy statute, says Pierre Grosdidier of Haynes and Boone LLP.
Cloud users must know how to use the cloud responsibly to prevent later difficulties with document production. When negotiating a cloud service agreement, users should look for certain services that will prove useful when responding to discovery requests, such as comprehensive search options, instant suspension of the auto-delete function, and preservation of metadata and embedded data, say attorneys with Sidley Austin LLP.
It is clear that the drafters of the real estate investment trust provisions in Rep. David Camp’s, R-Mich., tax reform discussion draft are not fans of the conversion of corporations to REIT status, spinoffs of REITs from operating companies, or the creation of REITs other than “traditional REITs.” The proposed provisions — intended to prevent the “erosion of the corporate tax base” — are clearly “overkill,” say attorneys with Goodwin Procter LLP.
In the year since the U.S. Supreme Court's decision in Comcast Corp. v. Behrend, nearly 200 cases have cited the ruling, but the only consensus reached is that its significance for class actions is unsettled. However, notwithstanding the lower courts’ inconsistent application of Comcast's “rigorous analysis” of damages model evidence, a few guiding principles have emerged, say Erik Snapp and Quinn Shean of Dechert LLP.
The U.S. Supreme Court has agreed to review the Sixth Circuit’s decision in Indiana State District Council of Laborers v. Omnicare Inc., which parts ways with the Second, Third and Ninth circuits and holds that “subjective falsity” is not required for opinion-based Section 11 claims. Although the circuit split is hogging all the attention, everyone seems to be overlooking the fact that the Sixth Circuit in Omnicare ignored its own precedent, says Drew Dropkin of King & Spalding LLP.