Securities

  • September 06, 2024

    Covington Owes $100M For Malpractice, Ex-Client Claims

    A blockchain entrepreneur and attorney is seeking at least $100 million from Covington, claiming in a legal malpractice suit filed Friday in New York state court that he could have avoided years of fighting a federal extortion case if firm partners hadn't advised against handing prosecutors "clearly exculpatory evidence."

  • September 06, 2024

    ZoomInfo Sued By Investor Over Post-Lockdown Biz Pressure

    Software company ZoomInfo Technologies Inc. has been hit with an investor proposed class action in Washington federal court alleging it hurt investors and its own reputation as it took desperate measures to maintain an early-pandemic customer boom and ultimately wrote down $33 million because of improperly recognized revenue.

  • September 06, 2024

    Earthlink Investors Accept $85M Deal To End Merger Suit

    Earthlink investors who say they were duped into approving a $1.1 billion merger with failing telecommunications company Windstream Holdings Inc. told an Arkansas federal judge Friday that they've reached an $85 million deal to end the lawsuit two months before the case was scheduled to go to trial.

  • September 06, 2024

    AstraZeneca Unit Owes $130M In Chancery Scuttled-Drug Suit

    The Delaware Chancery Court awarded $130 million to former shareholders of biopharmaceutical company Syntimmune in their breach of contract fight against AstraZeneca PLC unit Alexion Pharmaceuticals Inc., finding that Alexion failed to make promised payments after it acquired Syntimmune in 2018 and breached key terms of their merger agreement.

  • September 06, 2024

    SEC Wins Suit Against Trader Who Reaped 'Maker-Taker' Fees

    The U.S. Securities and Exchange Commission on Friday won summary judgment against a stock trader it accused of illegal wash trading when he traded to profit off so-called maker-taker fees paid out by major exchanges, with a New Jersey federal judge ruling that there are no issues of material fact in the suit, among other things.

  • September 06, 2024

    Calif. Takes AI Reins With Looming Safety, Transparency Laws

    A pair of groundbreaking legislative proposals aimed at ensuring the safe and transparent deployment of artificial intelligence systems are headed to the California governor's desk, raising questions about whether lawmakers are taking the right approach to regulating the emerging technology and how the state's privacy regulator will respond. 

  • September 06, 2024

    7th Circ. Backs Bulk Of CFTC's Fraud Claim Win Against CEO

    The Seventh Circuit has largely upheld a win for the Commodity Futures Trading Commission, finding that the head of a Chicago-based brokerage conducted a multimillion-dollar options fraud scheme, but remanded on two claims related to whether the company was required to register as a commodity trading adviser.

  • September 06, 2024

    Fed's Barr To Give Sneak Peek Of Revised Basel III Plan

    The Federal Reserve's vice chair for supervision will preview revisions to a scaled-back version of the controversial Basel III endgame plan to toughen big-bank capital requirements at a Brookings Institution event on Tuesday.

  • September 06, 2024

    11th Circ. Orders New Look At Penalty In SEC Loan Fraud Suit

    The Eleventh Circuit on Friday rejected a bid from a couple accused by the U.S. Securities and Exchange Commission of a nearly half-a-billion-dollar fraud to reverse an order expanding a receivership of their merchant loan business, but it vacated $43.7 million in penalties they were ordered to pay on the grounds it was unclear who was liable for what.

  • September 06, 2024

    Biopharm Co., Directors Sued In Del. Over 'Extreme' Scheme

    A five-year run of "extreme and unconscionable self-dealing" has left 62% of Navidea BioPharmaceuticals Inc. equity in the hands of a single stockholder-director, a Delaware Court of Chancery suit has alleged, with the company now deregistered and currently without a viable product.

  • September 06, 2024

    Starbucks Finds Interest For Appeal In Shareholder Suit

    A Washington Court of Appeals commissioner suggested to two Starbucks shareholders on Friday that their lawsuit must "do more than what it does" as of now if they want to accuse corporate leadership of responding illegally to barista unionization, hinting the court will likely take up the coffee giant's appeal.

  • September 06, 2024

    SEC Fraud Suit Against Battery Co. Survives Dismissal Bid

    A California federal judge has rejected battery developer NDB Inc.'s motion to dismiss a U.S. Securities and Exchange Commission suit alleging the company and its CEO misled investors about the prospects of so-called nano-diamond battery technology, saying the SEC sufficiently pled that the defendants were the "maker" of statements that were materially misleading to investors.

  • September 06, 2024

    CFTC Loses Court Battle Over Election Betting Contracts

    A Washington, D.C., federal judge ruled against the U.S. Commodity Futures Trading Commission on Friday in a case that challenged an agency ban on the use of the derivatives markets to place bets on the outcome of U.S. elections, granting victory to trading platform KalshiEx LLC. 

  • September 06, 2024

    Boeing Loses Bid To Toss Investor Suit Over Blowout

    A Virginia federal judge gave the green light to Boeing investors to continue their securities fraud proposed class suit against the company over one of its planes' midair door blowout in January, rejecting the aerospace giant's motion to dismiss and telling Boeing it had a "real problem" on its hands.

  • September 06, 2024

    Three Defendants Settle SEC's $14M Pot Co. Securities Suit

    The U.S. Securities and Exchange Commission has reached settlements with three defendants who allegedly misappropriated $14 million in investment funds intended for a cannabis enterprise, with the three agreeing to pay back a total of more than $4 million in disgorgements and interest and $3 million in civil penalties.

  • September 06, 2024

    SEC Accuses Fla. Men Of Mass Tort Litigation Financing Fraud

    The U.S. Securities and Exchange Commission on Friday accused a father and son from Florida of running a fraudulent litigation funding scheme by promising investors returns from financing mass tort litigation they were not actually funding.

  • September 06, 2024

    Morgan Stanley Fined $2M Over First Republic Exec's Trades

    Massachusetts' top securities cop on Friday imposed a fine of $2 million on Morgan Stanley for failing to ensure that a New Republic Bank chairman hadn't relied on insider information when he dumped millions of dollars of the bank's stock in the days and months before its collapse.

  • September 06, 2024

    Baker McKenzie M&A Partner Jumps To Bell Nunnally

    Dallas-based business law firm Bell Nunnally & Martin LLP has hired former Baker McKenzie partner Jonathan Farrokhnia, who told Law360 on Friday that his decision to join the firm was based on the advantages that come from working for a smaller firm.

  • September 06, 2024

    SEC Accuses Esmark Of Lying About US Steel Bid

    A failed bid to acquire U.S. Steel has landed Pittsburgh-based Esmark Inc. in hot water with the U.S. Securities and Exchange Commission, which announced Friday that it had fined the company and its founder for falsely claiming they had the money to buy the manufacturing giant.

  • September 05, 2024

    Coinbase, Execs Must Face Investor Suit Over Business Risks

    A New Jersey federal judge on Thursday declined to dismiss a consolidated investor class action against Coinbase and its executives over disclosures the cryptocurrency exchange made about certain business risks it faced, although he trimmed certain allegations deemed to be, among other things, corporate puffery.

  • September 05, 2024

    TikToker Conned Followers With Real Estate Fraud, Feds Say

    A social media influencer faces criminal charges and a suit from the U.S. Securities and Exchange Commission after he allegedly made false claims to investors that money put into purported real estate projects would earn them passive income.

  • September 05, 2024

    GitLab's AI Hype Was Too Optimistic, Investor Suit Says

    Software development collaboration platform GitLab is the latest company to face claims that it misguided investors about how artificial intelligence might bolster its fortunes as it faced other headwinds, including mounting costs for a China-based joint venture, that caused its share price to sink.

  • September 05, 2024

    CFTC Says Ex-Commish's Signature Was Forged For $1.5M Scam

    The Commodity Futures Trading Commission has sued the operator of an unlicensed commodity pool for allegedly targeting dozens of Spanish-speaking immigrants in a $1.5 million Ponzi-like scheme that used a fictitious license containing a counterfeit CFTC seal and a forged commissioner signature to falsely promise investors guaranteed monthly returns.

  • September 05, 2024

    Class Attys Vie To Lead Drug Co. Insider Trading Suit In Del.

    A courtroom face-off over lead stockholder counsel duties in a Delaware Chancery Court case accusing a biopharmaceutical company's directors of insider trading and fiduciary duty breaches got edgy Thursday, after one of the plaintiff-side legal teams contended that the other's case was irreparably hobbled by conflicts of interest.

  • September 05, 2024

    Ex-SEC Enforcement Atty Joins Whistleblower Law Boutique

    Kohn Kohn & Colapinto announced Thursday that a former U.S. Securities and Exchange Commission enforcement attorney will join the whistleblower law firm as senior special counsel.

Expert Analysis

  • Autonomy Execs' Acquittal Highlights Good Faith Instruction

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    The recent acquittal of two former Autonomy executives demonstrates that a good faith jury instruction can be the cornerstone of an effective defense strategy in white collar criminal cases, in part because the concept of good faith is a human experience every juror can relate to, says Sara Kropf at Kropf Moseley.

  • Series

    Teaching Scuba Diving Makes Me A Better Lawyer

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    As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.

  • SolarWinds Ruling Offers Cyber Incident Response Takeaways

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    The New York federal court's dismissal of all charges related to the 2019 Sunburst cyberattack is a devastating blow to the U.S. Securities and Exchange Commission's cybersecurity case against SolarWinds, but the well-reasoned opinion provides valuable lessons that may improve companies' defensive posture in the wake of a major cybersecurity incident, say attorneys at Troutman Pepper.

  • 3 Ways To Lower Insider Trading Risk After First 10b5-1 Case

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    In light of the U.S. Department of Justice's insider trading prosecution against the former CEO of Ontrack based on alleged abuse of a Rule 10b5-1 safe harbor plan — designed to allow executives to sell their companies' securities without liability — companies and individuals should take steps to avoid enacting similar plans in bad faith, say attorneys at Jenner & Block.

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

  • Evolving Regulatory Oversight For AI And Asset Management

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    Attorneys at K&L Gates discuss the evolving regulatory and legislative landscape for artificial intelligence in the asset management industry, as the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and Congress consider how to address potential investor protection and systemic risks associated with AI.

  • 3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy

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    The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.

  • Series

    A Day In The In-House Life: Block CLO Talks Problem-Solving

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    Amid the busy summer months, Block Inc. Chief Legal Officer Chrysty Esperanza chronicles a typical Wednesday where she conquered everything from unexpected fintech regulatory issues and team building to Bay Area commutes and school drop-off.

  • Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days

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    In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.

  • Navigating Antitrust Considerations In ESG Collaborations

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    The intersection of ESG goals and antitrust laws presents a complex challenge for businesses and their counsel — but by creating clear frameworks for collaboration, adhering to established guidelines and carefully considering the competitive implications of their actions, companies can work toward sustainability while mitigating legal risks, say attorneys at Morgan Lewis.

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Jarkesy's Impact On SEC Enforcement Will Be Modest

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    Though the U.S. Supreme Court’s recent U.S. Securities and Exchange Commission v. Jarkesy decision found that fraud defendants have a constitutional right to a jury trial, the ruling will have muted impact on the agency’s enforcement because it’s already bringing most of its cases in federal court, say Jeremiah Williams and Alyssa Fixsen at Ropes & Gray.

  • Series

    Rock Climbing Makes Me A Better Lawyer

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    Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.

  • Examining Chancery's Relaxed New Confidential Filing Rules

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    The Delaware Court of Chancery’s overhauled Rule 5.1, which governs confidential filings, risks permitting nonconfidential information to be shielded from public review unless and until a challenge notice is filed — but several potential solutions could help to override this issue, says Delaware attorney Daniel J. McBride.

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