Securities

  • April 24, 2015

    NY Southern District Becomes Antitrust Hotspot

    The Southern District of New York rocketed to the top of the list of most popular venues for antitrust claims in 2014, lifted by the continuing expansion of suits over benchmarks and commodities as well Keurig's controversial move to limit what kinds of pods will work with its coffee machines.

  • April 24, 2015

    Dendreon Knocks Shareholders' Push For Equity Committee

    Cancer treatment developer Dendreon Corp. urged a Delaware bankruptcy judge Friday to reject a call by shareholders for the formation of an equity committee, saying such a group would only add needless costs to a Chapter 11 process already nearing its end.

  • April 24, 2015

    SEC Alleges Farm Loan Scam, Freezes Investment Co's Assets

    A $160 million Indiana investment company's assets are frozen after the SEC accused the company Wednesday of grossly misleading clients about the actual uses of $15 million raised to provide operating funds for farmers.

  • April 24, 2015

    Class Action Over Barclays 'Dark Pool' Moves Forward

    A New York federal judge didn't toss but did trim a securities class action Friday accusing Barclays PLC and its executives of covering up, and even encouraging, aggressive high-frequency trading practices in an off-exchange “dark pool.”

  • April 24, 2015

    ResCap Slams Cadence Bank's Attempt To Exit Mortgage Suit

    Residential Capital LLC's liquidating trust urged a Minnesota federal judge Thursday not to dismiss its suit against Cadence Bank NA over financial harm that occurred when Cadence sold it 35,000 residential mortgages, many of which it says were toxic.

  • April 24, 2015

    Nasdaq Rebuts Market Power Claims In SEC Data Pricing Row

    Nasdaq OMX Inc.’s chief financial officer refuted allegations that it charges unreasonable rates for its data prices, maintaining at a Securities and Exchange Commission hearing Thursday that it routinely competes with other exchanges on the prices of its proprietary data products.

  • April 24, 2015

    Morgan Stanley Wanted A Dark Pool 'Feast,' Suit Says

    A company formed to create the intellectual property behind an off-exchange spread trading system has filed suit in New York state court accusing Morgan Stanley & Co. LLC. of fraud and breaching contracts in a dispute stemming from the investment firm’s alleged refusal to protect institutional investors from high-frequency traders.

  • April 24, 2015

    4 Hurdles The Gov't Faces In Monumental 'Flash Crash' Case

    The stunning allegation that a single trader in the London suburbs helped tip off the 2010 flash crash ignited a global storm of commentary. But while the arrest of Navinder Singh Sarao on Tuesday has put U.S. prosecutors in the limelight, they still have their work cut out for them. Here, Law360 looks at four challenges the government faces.

  • April 24, 2015

    HUD Aims To Delay Foreclosures In Mortgage Sales

    The U.S. Department of Housing and Urban Development on Friday said that it would require mortgage servicers that purchase nonperforming home loans to delay foreclosure for one year and take other measures to keep people in their homes.

  • April 24, 2015

    Blankenship Judge's Law Clerk Quarantined From Suit

    A law clerk allegedly friendly to mine workers' rights has been quarantined from the trial in which former coal magnate Don Blankenship is accused of mandating mine-safety obstructions that killed 29 Massey Coal Co. employees.

  • April 24, 2015

    Houston Am., SEC Settle Over Colombia Oil Project 'Fiction'

    Houston American Energy Corp. and its former head have settled with the U.S. Securities and Exchange Commission in cease-and-desist proceedings over allegations the oil explorer and producer overstated the value of a Colombian oil field by billions of dollars.

  • April 24, 2015

    German Watchdog Winding Down Deutsche Bank Libor Probe

    Germany’s financial regulator will complete its investigation into alleged manipulation of the London Interbank Offered Rate and other key benchmarks by Deutsche Bank AG traders by the end of June, according to media reports.

  • April 24, 2015

    Feds Slam Ex-BankAtlantic CEO's New Trial Bid

    Federal prosecutors on Thursday slammed former BankAtlantic Bancorp Inc. CEO Alan Levan’s argument that a Florida district court should reconsider his case in light of the U.S. Supreme Court’s Omnicare decision, saying the decision does not alter the legal landscape under which he was found to have misled investors.

  • April 23, 2015

    JPMorgan Investor's Bid Axed For 'London Whale,' RMBS Docs

    A Delaware Chancery judge on Thursday rejected a JPMorgan Chase & Co. shareholder's request for books and records relating to the bank's residential mortgage-backed securities operations and “London Whale” trading fiasco, finding the action was barred by the failure of suits brought by other investors.

  • April 23, 2015

    SEC Told Nasdaq, NYSE Prices Hit Returns In Market Data Row

    The prices Nasdaq OMX Inc. and other exchanges charge for proprietary market data can hurt everyday investors by raising the cost of investment, a Wall Street trade group's witness told a Securities and Exchange Commission hearing over the exchanges’ ability to hike data prices on Thursday.

  • April 23, 2015

    Insurer, Law Firm Resolve Coverage Row Over Securities Suits

    Minnesota Lawyers Mutual Insurance Co. has agreed to drop its suit seeking a finding that it isn't required to defend law firm Fine Fine Legum & McCracken LLP and one of its attorneys in five separate suits regarding losses from investment accounts, according to documents filed Wednesday in Virginia federal court.

  • April 23, 2015

    7 Sauciest Lines From Deutsche Bank's Libor Traders

    When U.S. and U.K. authorities slammed Deutsche Bank AG with $2.5 billion in penalties and a guilty plea for one subsidiary for manipulating a slew of benchmark interest rates, they also released a treasure trove of trader chats waxing less than poetic on everything from the link between employee bonuses and favorable rate submissions to how illegal the rate-fixing was. Here, Law360 looks at a few of the choicest lines.

  • April 23, 2015

    Credit Suisse Beats Lender's Fraud Suit Over $1.5B CDO

    A New York judge has thrown out Aozora Bank Ltd.'s suit against Credit Suisse Group over losses that the Japanese lender suffered after investing in a $1.5 billion collateralized debt obligation it claims Credit Suisse used as a “trash bin” for toxic assets, saying Aozora sued too late.

  • April 23, 2015

    Big Awards Pushing Compliance Pros To Be Whistleblowers

    The U.S. Securities and Exchange Commission's recent announcement of a $1.5 million whistleblower award to a compliance officer is evidence that SEC tips from in-house compliance personnel are surging, lawyers say, a trend that's expected to continue in light of compliance officers' access to information and the potential for more seven-figure payouts.  

  • April 23, 2015

    Alleged 'Flash Crash' Trader Told UK Watchdog To Ban HFT

    The British futures trader accused of helping to trigger the 2010 flash crash through a computerized manipulation scheme once urged U.K. regulators to ban high-frequency trading and block market participants from entering fake orders designed to fool others, according to emails made public Thursday.

Expert Analysis

  • Chancery Limits Preferred Stock Mandatory Redemption

    Abigail Pickering Bomba

    The Delaware Chancery Court’s holding in TCV v. TradingScreen has increased the risk for preferred stockholders in their being able to exit investments under mandatory redemption provisions. Stockholders seeking to protect their exit rights should consider, among other things, penalty provisions triggered by nonpayment rather than default, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • A Harbinger Of The SLUSA's Broad Reach

    Mark A. Kornfeld

    A Southern District of New York decision in a putative class action against Harbinger Capital Partners provides important guidance on how courts may interpret Chadbourne & Parke LLP v. Troice’s reading of the “in connection with” requirement of the Securities Litigation Uniform Standards Act, and may allow the SLUSA to reach securities transactions that otherwise would fall outside its scope, say attorneys with BakerHostetler.

  • 5 Issues Financial Services Industry Employers Must Face

    John F. Fullerton III

    Employers in the financial services industry face a growing number of employment law challenges, among them being whistleblower complaints on the heels of more aggressive action from regulatory agencies, a more unpredictable arbitration process courtesy of the Financial Industry Regulatory Authority and labyrinth-like immigration hurdles, say attorneys at Epstein Becker & Green PC.

  • Trading Inside Information With 'Friends' Post-Newman

    Jon Eisenberg

    Newman is a sea change in the law when it comes to insiders who tip friends without a quid pro quo. At least in the Second Circuit, the government’s argument that a mere tip to a friend violates insider trading law is dead on arrival, says Jon Eisenberg of K&L Gates LLP.

  • Spring Begins With 3 Important Class Action Decisions

    Fred T. Isquith

    The volume of commentary on the Omnicare opinion has pushed aside two other important and likely influenced decisions — the Second Circuit’s opinion in Roach v. T.L. Cannor Corp. addressing the breadth of Comcast Corp. v. Behrend, and New York’s Anwar v. Fairfield Greenwich Ltd., which requires readers’ attention because of the court’s discussion of the “predominance” element of Rule 23, says Fred Isquith of Wolf Haldenstein Adler ... (continued)

  • NY Financial Compliance Landscape May Get Treacherous

    Michael H. Huneke

    The Dodd-Frank Act whistleblower program has garnered much attention, but a less-noticed New York financial fraud whistleblower proposal could likewise have a significant impact, because New York regulators and enforcement agencies have been very active in bringing some of the largest investigations and enforcement actions in the financial sector, say John Wood and Michael Huneke of Hughes Hubbard & Reed LLP.

  • Major Changes Coming To Sentencing Guidelines For Fraud

    Vince Farhat

    Through proposed amendments to the sentencing guidelines, the U.S. Sentencing Commission appears to be shifting the emphasis away from severely punishing those who caused a large group of victims to lose a small amount of money and toward those who meant to cause "substantial" financial harm to even one victim, say attorneys with Holland & Knight LLP.

  • A Look At The 1st Criminal 'Spoofing' Prosecution: Part 2

    Clifford C. Histed

    Given a recent decision in the first “spoofing” criminal case involving futures trader Michael Coscia, as well as recent regulatory guidance, it is fair to say that there is now a regulatory dragnet set for spoofers. One of the most effective ways rule enforcers prove intent is through the use of a trader’s own admissions, says Clifford Histed, partner at K&L Gates LLP and former federal prosecutor who supervised the investigation ... (continued)

  • 2015 Begins With A Drop In FCPA Enforcement Activity

    Marc Bohn

    The pace of enforcement under the U.S. Foreign Corrupt Practices Act has slowed considerably in 2015, with just three resolved enforcement actions during the year’s first quarter — all brought by the U.S. Securities and Exchange Commission — which represents the lowest level of enforcement to begin a year since 2006, say Marc Bohn and Austen Walsh of Miller & Chevalier Chtd.

  • A Look At The 1st Criminal 'Spoofing' Prosecution: Part 1

    Clifford C. Histed

    A federal judge recently ruled, in the first criminal case of its kind, that the "spoofing" and fraud indictment against futures trader Michael Coscia would not be dismissed. But under what circumstances will canceling a trade be considered a regulatory violation or, worse yet, a crime? The answer to that question is not always clear, says Clifford Histed, partner at K&L Gates LLP and former federal prosecutor who supervised the in... (continued)