Securities

  • September 29, 2014

    Atty Backs 'Golfing Buds' Defense In Insider Trading Case

    A Massachusetts attorney charged criminally with trading on inside information a golfing buddy allegedly gave to him told a federal judge on Saturday that he seconded his friend's argument that civil claims should be tossed because golfing buddies don't have a fiduciary-like relationship.

  • September 29, 2014

    Firm Owner Admits Paying $1M In Bribes To JPMorgan, GMAC

    The owner of two San Diego-based mortgage investment firms admitted in California federal court on Friday that he paid $1 million in bribes to "insiders" at JP Morgan Chase Bank NA, GMAC Mortgage LLC and National City Bank in order to win bids for mortgage loans sold on the secondary market, according to federal prosecutors.

  • September 29, 2014

    Onyx Traders Can't Kill SEC's $4M Insider Trading Suit

    A New York federal judge on Monday refused to toss a U.S. Securities and Exchange Commission suit alleging two United Arab Emirates investors reaped $3.7 million through insider trading in Onyx Pharmaceuticals Inc. and Life Technologies Corp., finding it sufficiently states a claim.

  • September 29, 2014

    UBS In Forex-Rigging Settlement Talks, Warns Of Fines

    UBS AG told investors Monday it could face a “material” fine by regulators over its alleged role in a scheme to manipulate the $5.3 trillion global foreign exchange market, saying that it was in settlement talks with at least one agency.

  • September 29, 2014

    Citi Unit, Others Get Thornburg Trustee's $2B Suit Trimmed

    A Maryland bankruptcy judge has pared a nearly $2 billion suit by Thornburg Mortgage Inc.'s trustee alleging that units of Citigroup Inc. and other banks made unfair margin calls and other improper agreements that brought the mortgage lender to its knees, finding that the agreements central to some of the claims are safe-harbored.

  • September 29, 2014

    Avon Shareholders' FCPA China Bribe Class Action Tossed

    A New York federal judge on Monday tossed a putative class action by Avon Products Inc. shareholders that accused the company and its senior executives of falsely inflating stock prices by hiding violations of the Foreign Corrupt Practices Act.

  • September 29, 2014

    Kahn Swick Fights To Keep Abbott Fee Suit In State Court

    Kahn Swick & Foti LLC attacked Spector Roseman Kodroff & Willis PC on Sunday for its efforts to move a fee dispute between the two firms to federal court, arguing the lawsuit over fees from a securities suit against Abbott Laboratories Inc. belongs in Louisiana state court.

  • September 29, 2014

    Engineering Firm Argues Stock Deal Negates $7M Verdict

    An engineering firm asked the Texas Supreme Court on Friday to throw out the $7 million verdict it was slapped with in a stock purchase dispute involving two smaller companies, saying disgruntled shareholders who scored the award are contractually entitled to only a fraction of that amount.

  • September 29, 2014

    Investment Firm To Pay SEC $3.5M Over Lying About PE Fund

    An Illinois federal judge on Monday granted summary judgment in favor of the U.S. Securities and Exchange Commission, ordering Resources Planning Group Inc. and its co-owner to pay it $3.5 million after RPG allegedly raised $1.3 million by lying to investors about a failing private equity fund and using the money to pay other debts.

  • September 29, 2014

    Medtronic Can't Shake Investors' Claims Of Tainted Studies

    A Minnesota federal judge on Monday refused to throw out the bulk of a securities class action alleging Medtronic Inc. downplayed problems with its bone graft products, saying the investors’ allegations that the medical device maker manipulated studies to drive up its stock price are adequate.

  • September 29, 2014

    3 Firms Dominate In Securities Litigation, GCs Say

    When it comes to handling complex securities and finance litigation, corporate clients have three firms that they keep in mind when making a call for outside counsel, according to a new survey.

  • September 29, 2014

    AIG Bailout Overreached Fed Authority, Former CEO Says

    The federal government exceeded its authority when it took a majority stake in American International Group Inc. as part of a massive 2008 bailout, attorneys for the firm’s former CEO argued Monday at the beginning of a trial in a $55.5 billion lawsuit alleging the deal bilked shareholders.

  • September 29, 2014

    Shuttered Miami Firm Escapes Negligence Suit For Now

    A Florida state judge on Friday tossed a lawsuit claiming negligence by shuttered Miami law firm Tew Cardenas LLP for its handling of litigation to enforce $80 million in notes, saying plaintiff FBK Associates must refile its allegations more specifically to proceed.

  • September 29, 2014

    Morgan Keegan Still Stuck With Majority of ABS Suit

    A Tennessee court has largely denied Regions Financial Corp.'s motion to dismiss a suit over representations of Morgan Keegan asset-backed mutual funds, saying it would not rely on a Second Circuit decision currently on appeal to the Supreme Court as a basis to shorten the statute of limitations.

  • September 29, 2014

    Argentina Held In Contempt For Debt Bypass Plan

    A New York federal judge on Monday held Argentina in contempt of court for taking steps to evade his orders that bondholders who agreed to debt restructurings can only be paid if holdout hedge funds are also compensated, calling such plans illegal.

  • September 29, 2014

    Wal-Mart Can't Escape Suit Over Mexico Bribery Allegations

    An Arkansas federal judge on Friday denied a bid from Wal-Mart Stores Inc. and its former CEO to dismiss a proposed class action alleging the retailer concealed Mexican bribery allegations from shareholders, ruling claims that Wal-Mart intentionally withheld the information from a regulatory filing are "plausible."

  • September 29, 2014

    ATP Oil Execs Escape Suit Over $1.5B Note Exchange

    A Louisiana federal judge on Friday tossed a consolidated securities class action alleging bankrupt ATP Oil & Gas Corp.’s top executives misled investors ahead of a $1.5 billion note exchange about its liquidity and business prospects following drilling moratoriums enacted after the Deepwater Horizon oil spill.

  • September 29, 2014

    Foundry Exec's Betrayal Triggered Inside Trades, Feds Say

    Former Foundry Networks Inc. executive David Riley “betrayed” the technology company and its shareholders by tipping a hedge fund analyst about its 2008 merger with Brocade Communications Systems Inc., a U.S. prosecutor said on Monday at the close of trial.

  • September 29, 2014

    UK Charges Ex-Supermarket Tax Head With Insider Trading

    United Kingdom authorities announced charges on Monday against the former tax chief and treasurer of Wm Morrison Supermarket plc for alleged insider trading related to the company's £216 million deal with Internet grocer Ocado Group plc.

  • September 29, 2014

    CFTC Accuses Trader Of Running $2.4M Investor Scam

    The U.S. Commodity Futures Trading Commission on Monday accused an Illinois man and his trading companies of using $2.4 million in investor funds to pay for personal luxuries instead of investing it in foreign currency markets as advertised.

Expert Analysis

  • Should FIRREA Whistleblower Bounties Be Higher?

    Andrew W. Schilling

    The Financial Institutions Reform, Recovery, and Enforcement Act’s whistleblower bounties at False Claims Act levels could lead to absurdly high and wastefully excessive awards. At the same time, U.S. Attorney General Eric Holder may be right when he suggests that awards capped below annual bonuses may not be enough to encourage confidential reporting by well-placed Wall Street insiders, says Andrew Schilling of BuckleySandler LLP.

  • 7 HSR Filing Reminders From Berkshire Hathaway Case

    Deidre Johnson

    The recent civil penalty levied on investment holding company Berkshire Hathaway Inc. for failure to notify under the Hart-Scott-Rodino Antitrust Improvements Act reminds investors that HSR reportability must be vetted even in transactions that are less obviously seen as "acquisitions," say attorneys with Ropes & Gray LLP.

  • Takeaways From SEC Action Against Lincolnshire

    Eva C. Carman

    The U.S. Securities and Exchange Commission’s recent action against private equity firm Lincolnshire Management Inc. is based on a fairly nuanced factual scenario — allocation of expenses between portfolio companies — which suggests that the SEC’s inquiries are becoming more sophisticated, and the action is consistent with a trend we have been seeing toward more nonfraud-based cases, say attorneys with Ropes & Gray LLP.

  • No Longer Under Wraps — SEC Wrap Fee Scrutiny Rising

    Jonny Frank

    Given the U.S. Securities and Exchange Commission's emphasis on wrap fee disclosures, employing forensic auditing and data analytics tools early on can help to detect potential abuse of wrap fee programs and demonstrate a firm’s commitment to compliance, say Jonny Frank and Tristan Cecala of StoneTurn Group LLP.

  • 'Entire Fairness' Is More Than Just A Fair Price

    Diane Holt Frankle

    Vice Chancellor John Noble recently held in a Nine Systems Corp. shareholder case that a recapitalization, although approved and implemented at a fair price, was not entirely fair due to the grossly unfair process — a ruling that teaches, among other things, that a robust negotiation is helpful to demonstrate fair dealing, says Diane Holt Frankle of Kaye Scholer LLP.

  • Opportunities And Pitfalls In The Legal Cloud

    David Houlihan

    Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.

  • Asset Managers Must Prepare For The Magnifying Glass

    Perrie M. Weiner

    The combined import of the U.S. Securities and Exchange Commission’s announced “sweep” of alternative mutual funds and recently reported potential regulations is that asset funds are now on the SEC’s radar, and additional oversight and regulatory scrutiny are all but assured in the near future, say attorneys with DLA Piper.

  • Challenges To Conflict Minerals Rule Continue

    Celia Taylor

    As a long-standing critic of placing regulation of conflict minerals under the auspices of the U.S. Securities and Exchange Commission, I welcome a suggestion that seems a more logical approach than the one currently in place — and one that might avoid the tortured legal fights that continue to rage on in regard to the SEC’s conflict minerals rule, says Celia Taylor of Sturm College of Law at the University of Denver.

  • A General Counsel's Top 10 Billing Tips

    Francis M. Drelling

    Nothing makes an in-house counsel feel like they are being nickeled-and-dimed more than receiving a $3.50, stand-alone invoice. Forcing anyone to spend time on a $3.50 invoice is, quite frankly, just not cool, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.

  • Next Big Thing For Foreign Cos. — Yield-Oriented US IPOs

    Sean T. Wheeler

    The flexibility and access to capital available through master limited partnerships and yieldcos should result in a meaningful increase in yield-oriented U.S. initial public offerings by international companies. Many companies, however, irrationally fear the U.S. Securities and Exchange Commission’s process for registration statement review, says Sean Wheeler of Latham & Watkins LLP.