Securities

  • August 3, 2015

    Goldman Sachs Eyes $5.9B For Upcoming Legal Expenses

    Goldman Sachs Group Inc. could spend up to $5.9 billion this year to handle legal proceedings tied to securities suits, Libor rigging allegations and a Foreign Corrupt Practices Act probe, among others, it said in a filing Friday.

  • August 3, 2015

    SEC Won’t Back Down After Latest In-House Court Setback

    An ultimatum from a New York federal judge on Monday gives the U.S. Securities and Exchange Commission another reason to reconsider an aspect of how its controversial in-house court is run, yet attorneys expect the agency won’t give up so easily and address what another federal jurist has said is an “easily cured” problem.

  • August 3, 2015

    Ex-Delta Petroleum Exec Asks Justices To Clarify Causation

    A former oil company executive ordered to face shareholder allegations he pumped Delta Petroleum Corp.'s stock before its plunge into bankruptcy has asked the U.S. Supreme Court to address circuit disagreement over what investors must prove to link stock losses with misrepresentation by executives.

  • August 3, 2015

    1st UK Conviction Gives More Ammunition To Libor Plaintiffs

    Monday's conviction of a former UBS AG trader over the manipulation of the London Interbank Offered Rate will hand U.S. class action plaintiffs another weapon to fire at big banks in their ongoing litigation over the benchmark interest rate, experts say.

  • August 3, 2015

    Jackson Walker Hooks Ex-UT President For Austin Office

    Jackson Walker LLP announced on Monday that it has hired a former University of Texas at Austin president for its Austin office, saying that it will benefit from his expertise on matters of appellate work, corporate governance and special investigations.

  • August 3, 2015

    Hedge Funds Hit NJ Auditor With $75M Malpractice Suit

    Two investment funds have sued Rothstein Kass & Co. PC for at least $75 million, claiming the New Jersey auditing firm committed accounting malpractice by failing to properly scrutinize overblown valuations of their assets.

  • August 3, 2015

    Gov't Says Gupta Can't Appeal Latest Insider Trading Defeat

    Prosecutors said Friday that Rajat Gupta should not be allowed to appeal a federal judge's recent order rejecting his latest bid to undercut his insider trading conviction, arguing that the former Goldman Sachs Group Inc. board member has already spent three years "litigating a question that is not now and has never been debatable."

  • August 3, 2015

    American Realty Hit With Another Accounting Scandal Suit

    An investor in American Realty Capital Properties Inc., recently renamed Vereit Inc., sued some of its officers and directors in New York federal court Friday, claiming ARCP wrongly refused to pursue claims against its own brass over an accounting restatement and stock drop.

  • August 3, 2015

    Helix Energy Hid Potential Losses, Investors Claim

    Just days after posting a $2.6 million net loss in earnings and seeing a precipitous drop in share prices, offshore energy services company Helix Energy Solutions Group Inc. was hit with a securities class action Friday in Texas federal court, brought by investors who claim the company provided misleading statements to inflate share prices.

  • August 3, 2015

    Wilson Sonsini Snags 2 Corp. Partners From K&L Gates

    Wilson Sonsini Goodrich & Rosati PC said Monday it has recruited two former K&L Gates LLP partners, experienced in advising technology companies, asset management firms, venture capital, private equity and real estate funds on federal securities laws and related regulations, to bolster its Washington, D.C., office.

  • August 3, 2015

    NY Bars Promontory Over Standard Chartered Failings

    The New York Department of Financial Services on Monday suspended indefinitely Promontory Financial Group LLC’s ability to advise state-licensed financial firms after finding that the consulting group “sanitized” a report on Standard Chartered PLC’s alleged violation of U.S. sanctions against Iran.

  • August 3, 2015

    $235M Citi, Goldman, UBS Settlement Approved In MBS Case

    A New York federal judge on Friday approved a $235 million settlement in a class action brought by a pension fund against Citigroup Global Markets Inc., Goldman Sachs & Co. and UBS Securities LLC, the underwriters of mortgage-backed securities issued with allegedly false prospectuses.

  • August 3, 2015

    SEC Loses Bid To Dismiss Ex-S&P Exec's Complaint

    The U.S. Securities and Exchange Commission on Monday was foiled in its attempts to block a former Standard & Poor’s executive from countersuing it after a New York federal judge denied the agency's request to dismiss the lawsuit brought over the constitutionality of its in-house court.

  • August 3, 2015

    Alpha Files For Bankruptcy With $7.1B In Debt

    Alpha Natural Resources on Monday became the latest coal producer to file for bankruptcy, less than five years after its $8.5 billion purchase of Massey Energy Co., whose former leader is now facing criminal charges over safety violations that federal prosecutors say caused a 29-death explosion.

  • August 3, 2015

    Hong Kong Tickets BNP Unit $15M Citing Dark Pool Failures

    Hong Kong's securities regulator said Monday it has fined BNP Paribas Securities (Asia) Ltd. $15 million for failing to operate its "dark pool" trading operations in the manner that it represented to clients, flagging the bank for failing to execute trades in accordance with an order price priority system it said would be in place.

  • August 3, 2015

    China Freezes Citadel Account Amid Automatic Trading Probe

    U.S.-based hedge fund Citadel LLC said Monday that a trading account managed by its brokerage arm in China has been suspended, as Chinese authorities investigate the impact of automated trading on the nation's stock market in the wake of its recent decline.  

  • August 3, 2015

    Ex-UBS Trader Sentenced To 14 Years On Libor Charges

    A United Kingdom jury on Monday convicted former UBS AG and Citigroup Inc. trader Tom Hayes of committing fraud by allegedly helping to rig the London Interbank Offered Rate.

  • August 2, 2015

    Texas AG Paxton Charged With Securities Fraud

    Texas Attorney General Ken Paxton has been charged with three violations of state securities laws, including two first-degree felony counts alleging misrepresentations to investors, in an indictment unsealed Monday.

  • July 31, 2015

    Goldman To Drop $270M To Settle $6B RMBS Suit

    Goldman Sachs Group & Co. has tentatively agreed to pay $270 million to resolve a putative class action brought by a union pension fund accusing the investment banking giant of selling $6 billion in shoddy residential mortgage-backed securities, according to multiple media reports published Friday.

  • July 31, 2015

    Upstream-Downstream Tiff Over Bankrupt Oil Middleman Ends

    Oil producers who sold to middleman SemCrude LP before its bankruptcy do not have a right to recover money from a purchaser downstream of SemCrude who allegedly shielded itself from the company's troubles by taking unfair advantage of the upstream producers' credit agreements, a Delaware federal judge said Thursday.

Expert Analysis

  • New Risks To Non-US Banks In American Courts

    Robert P. Reznick

    The law governing the assertion of personal jurisdiction against non-U.S. banks based on U.S.-branch activity is changing rapidly. Some of the currents of change, such as the principle established by the Daimler case, lead in the direction of a lower risk of litigation. Others may lead in the opposite direction, says Robert Reznick of Orrick Herrington & Sutcliffe LLP.

  • The PSLRA Safe Harbor And A Warning Against Complacency

    Bruce A. Ericson

    The Private Securities Litigation Reform Act’s safe harbor was designed to facilitate dismissal of challenges to forward-looking statements at the pleadings stage, before any discovery. But as the D.C. Circuit recently proved, even on a motion to dismiss, courts will take a hard look at the cautionary language. That means eschew boilerplate, say Bruce Ericson and Stacie Kinser of Pillsbury Winthrop Shaw Pittman LLP.

  • Rebutting Fraud On The Market

    Michelle Reed

    The most recent Halliburton class certification decision addressed one of the key questions left open after the U.S. Supreme Court’s ruling last year — the level of proof necessary to rebut the fraud-on-the-market presumption, say attorneys with Akin Gump Strauss Hauer & Feld LLP.

  • 3 Class Actions Before The Supreme Court

    Fred T. Isquith

    Perhaps the case potentially most consequential is Campbell-Ewald Co. v. Gomez, which raises intriguing procedural issues and would affect any class action where the defendant offers to the plaintiff full damages and any feasible fees and costs, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • 7 Keys To Improving Your Direct Examination

    James Murray

    Trial lawyers should approach direct examination with the same excitement as cross-examination. If you do not, the jury will notice and your case will suffer. An effective direct examination backs the lawyer out of the action and puts the witness front and center to tell the story in a conversational, comforting, interesting fashion, says James Murray of Dickstein Shapiro LLP.

  • Putting The Brakes On Newman: 3 Recent Rakoff Decisions

    David I. Miller

    Judge Jed Rakoff’s recent instructive decisions have set the stage for a closer analysis of Newman’s potential effect on future insider trading cases. Indeed, in its petition for a writ of certiorari, the government uses Judge Rakoff’s decisions to support its arguments to the U.S. Supreme Court, say attorneys with Morgan Lewis & Bockius LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 3

    Philip Richter

    One of the key practice points arising out of recent decisions in Merlin v. Autoinfo, Owen v. Cannon, and Longpath v. Ramtron is that an acquiror should outline in some detail the cost savings expected from a merger. References to anticipated savings embedded in assumptions for projections or in an investment memorandum may not be sufficient, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Lessons From 5th Circ. Application Of Scienter Standard

    David Dodds

    The Fifth Circuit’s recent dismissal of a federal securities fraud class action that arose out of the failure of Guaranty Bank serves as a reminder that even where some specific allegations tend to support an inference of scienter, they may not invariably lead to a finding of the required “strong inference,” says David Dodds of Haynes and Boone LLP.

  • A Potential Basis For Objecting To Certain CFPB Sanctions

    Jennifer L. Sutton

    Much like the U.S. Securities and Exchange Commission bar at issue in SEC v. Koch, a number of the Consumer Financial Protection Bureau’s enforcement actions address violations premised on conduct that, at least in part, predates Dodd-Frank. The D.C. Circuit’s ruling in Koch rejecting retroactive Dodd-Frank application could provide a basis for institutions to object to certain CFPB sanctions, say attorneys with Sullivan & Cromwell LLP.

  • A Study Of Recent Delaware Appraisal Decisions: Part 2

    Steven Epstein

    The Delaware Chancery Court now primarily or exclusively relies on the merger price to determine fair value when the merger price is a particularly reliable indication of value and the standard financial valuation analyses — discounted cash flow and comparables — are particularly unreliable. All of the recent cases meeting these parameters have involved disinterested transactions, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.