Securities

  • June 11, 2024

    Bed Bath & Beyond Investor Defeats 'Short-Swing' Profits Suit

    A New York federal judge on Tuesday threw out Bed Bath & Beyond investors' suit accusing activist investor Ryan Cohen of buying and selling his stock too quickly, finding the claims moot in light of the retailer's Chapter 11 bankruptcy plan.

  • June 11, 2024

    Martin Shkreli Told To Hand Over Wu-Tang Album

    A New York federal judge ordered Martin Shkreli on Tuesday to hand over any copies he might have of the Wu-Tang Clan's album he once bought before it was sold off by the federal government to settle a $7.3 million tab from Shkreli's criminal judgment on securities fraud.

  • June 11, 2024

    Amplitude Execs Face Suit Over Post-IPO Share Inflation

    Current and former insiders of business software maker Amplitude were hit with a shareholder derivative suit claiming they profited from misrepresentations they made about the likelihood of the company sustaining its revenue growth following its initial public offering.

  • June 11, 2024

    Attys For Restaurant Software Investors Ring Up $2.25M Fee

    Attorneys representing investors in a suit against restaurant software company Olo Inc. will receive $2.25 million for brokering settlement of class action claims alleging the company touted an ill-fated partnership with sandwich chain Subway as an example of its success.

  • June 11, 2024

    2nd Circ. Cites Macquarie In Booting Suit Over Go-Private Deal

    The Second Circuit refused to revive a proposed class action accusing a real estate services provider of artificially depressing share prices, applying apparently for the first time the U.S. Supreme Court's Macquarie decision on alleged failures to disclose certain information.

  • June 11, 2024

    Ontrak CEO Told Broker To Sell Shares Quickly, Jury Hears

    A stockbroker testifying Tuesday in the California federal insider trading trial for Ontrak's founder said the executive didn't accept his advice to delay selling shares of the healthcare company to avoid the appearance of trading on insider information, but instead insisted on selling the shares immediately.

  • June 11, 2024

    SIFMA, Missouri Seek Early End To Anti-ESG Rules Suit

    The Securities Industry and Financial Markets Association and Missouri state officials have filed dueling summary judgment bids in SIFMA's suit over the state's anti-ESG rules for brokers and advisers, with SIFMA claiming the rules violate the First Amendment, and both sides painting the issue as a matter of states' rights versus federal preemption.

  • June 11, 2024

    Fed's New Internal Trading Policy Full Of Loopholes, Sens. Say

    Sens. Elizabeth Warren, D-Mass., and Rick Scott, R-Fla., have called on Federal Reserve Board Chair Jerome Powell to repeal what they say is a "failed approach" to addressing allegedly illicit trading by Fed officials, saying the long-awaited policy is riddled with loopholes, contains weak penalties and requires no transparency for officials who violate the trading rules.

  • June 11, 2024

    DC Circ. Affirms Petrobras' Immunity Denial In Fraud Case

    The D.C. Circuit on Tuesday affirmed the denial of Petrobras' immunity defense against an investor fraud lawsuit filed after the petroleum company was implicated in a sprawling bribery scheme, ruling that the alleged fraud caused a direct impact on the United States sufficient to pull Petrobras into the court's jurisdiction.

  • June 11, 2024

    Hedge Fund Anson Settles With SEC Over Cannabis Shorts

    The American and Canadian entities overseeing hedge fund Anson Funds agreed on Tuesday to pay $2.25 million to end a U.S. Securities and Exchange Commission investigation into their allegedly hidden relationship with an activist investment firm that shorted a pair of cannabis stocks.

  • June 11, 2024

    9th Circ. Judge On Theranos Appeal: 'Good Story' For Holmes

    Two Ninth Circuit judges on a three-judge panel expressed concerns Tuesday that the district judge presiding over convicted former Theranos CEO Elizabeth Holmes' criminal trial erred by allowing a layperson witness to offer expert testimony at trial, with one judge saying, "There's a pretty good story here for Ms. Holmes."

  • June 11, 2024

    HashiCorp Hit With Investor Suit Over $6.4B Sale To IBM

    Software company HashiCorp Inc. and its board members face an investor suit seeking to halt an upcoming shareholder vote on a proposed $6.4 billion acquisition of HashiCorp by tech giant IBM, alleging the deal would unfairly benefit company insiders and hasn't been properly detailed in required filings.

  • June 11, 2024

    Moelis-Inspired Del. Corporate Law Bill Clears Senate Panel

    A string of law professors turned out Tuesday to oppose a Delaware Senate bill that would let boards cede some governance rights to big stockholders and some Delaware Court oversight to other jurisdictions, with the measure nevertheless cleared for a full Senate vote.

  • June 11, 2024

    Roblox Based Forecast On 'Tenuous' Factors, Investor Says

    A Roblox Corp. shareholder accused the online gaming platform in California federal court Monday of misleading investors with projected online sales revenue that came in at least $100 million short, boasting of its technology developments and advertising efforts despite knowing those revenue opportunities were "tenuous at best."

  • June 11, 2024

    Travelers Says No Coverage For Investment Bank's Bond Row

    A Travelers unit said it doesn't owe directors and officers coverage to an investment bank accused of misleading bondholders into investing in a sports complex development project, telling an Illinois federal court the policy bars coverage for claims arising from the bank's performance of services for a client.

  • June 11, 2024

    Ex-Kirkland Partner Gets Second Term As PCAOB Chair

    The U.S. Securities and Exchange Commission announced Tuesday it has selected onetime Kirkland litigation partner and former Obama administration counsel Erica Y. Williams for a second term as chairperson of its Public Company Accounting Oversight Board, keeping her heading up the board through October 2029.

  • June 11, 2024

    SEC Probing Autodesk After Accounting Practices Report

    Autodesk Inc. said the U.S. Securities and Exchange Commission is investigating the software corporation after it voluntarily contacted the regulatory body to inform it of the company's own internal investigation into its free cash flow and non-generally accepted accounting principles operating margin practices.

  • June 11, 2024

    AES Sued In Del. For 'Weaponized' Advance Notice Bylaws

    Global utility and power company The AES Corp. has "weaponized" advance notice requirements in its bylaws to make it "unreasonably difficult, if not impossible," for stockholders to nominate candidates for the company's board, a stockholder has alleged in a new Delaware Court of Chancery suit.

  • June 11, 2024

    AI Hiring Platform's Ex-CEO Charged With $27M Fraud

    The founder of hiring startup Joonko Diversity Inc. has been charged with fraud, with prosecutors saying Tuesday that she deceived investors into dumping $27 million into a platform that supposedly used artificial intelligence to help companies recruit diverse job candidates. 

  • June 11, 2024

    FINRA Fines Brokerage TradeZero Over 'Finfluencer' Promos

    The Financial Industry Regulatory Authority has fined broker-dealer TradeZero America Inc. $250,000 for allegedly failing to properly supervise its influencer partners, who promoted the firm on their social media accounts.

  • June 11, 2024

    Mattel Wants Out Of Suit Over Forfeited 401(k) Funds

    Mattel urged a California federal court to throw out a lawsuit a former employee launched alleging the company should have used former workers' forfeited 401(k) funds to cover plan expenses, saying its decision to use that money to satisfy its own contributions is in line with federal benefits law.

  • June 11, 2024

    Retrial Begins In NJ Fraud Case Over COVID Test Kit Deal  

    The painstaking process of jury selection got underway Tuesday in the retrial of a securities fraud case that ended with a dramatic mistrial after a juror announced in open court that he disagreed with the guilty verdict that had just been delivered by the jury forewoman.

  • June 11, 2024

    Justices Urged To Review Fee Denial In DOL Stock Plan Case

    A construction design firm is urging the U.S. Supreme Court to take up its fight for attorney fees after beating an enforcement case brought by the U.S. Department of Labor alleging the company and its founders mismanaged an employee stock ownership plan, with the firm arguing the Ninth Circuit erred in siding with the DOL.

  • June 11, 2024

    SEC Asks For $1.1M Insider Trading Penalty For Ex-Apple Atty

    The U.S. Securities and Exchange Commission is again urging a New Jersey federal court to levy a roughly $1.1 million civil penalty on a former Apple Inc. senior attorney who already pled guilty and was sentenced for criminal charges related to a lucrative insider trading scheme.

  • June 11, 2024

    Uniswap Taps Coinbase Atty To Be CLO As SEC Fight Looms

    The firm behind decentralized marketplace Uniswap has brought on a senior Coinbase attorney and seasoned litigator to helm its legal operations as it stares down a potential enforcement action from the U.S. Securities and Exchange Commission.

Expert Analysis

  • A Deep Dive Into The Evolving World Of ESG Ratings

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    Attorneys at Mintz discuss the salience of environmental, social and governance ratings in corporate circles in recent years, and consider certain methodologies underlying their calculation for professionals, as well as issues concerning the ESG ratings and products themselves.

  • What TikTok's Race Against The Clock Teaches Chinese Firms

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    The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.

  • Lean Into The 'Great Restoration' To Retain Legal Talent

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    As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.

  • What The NYSE Proposed Delisting Rule Could Mean For Cos.

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    The New York Stock Exchange's recently proposed rule would provide the exchange with discretionary authority to commence delisting proceedings for a company substantially shifting its primary business focus, raising concerns for NYSE-listed companies over the exact definition of the exchange's proposed "substantially different" standard, say attorneys at Winston & Strawn.

  • 9th Circ. Ruling Broadens Sweep Of Securities 'Solicitation'

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    The Ninth Circuit's recent revival of a putative securities fraud class action against Genius Brands for hiring a stock promoter to write favorable articles about it shows that companies should view "solicitation" broadly in considering whether they may have paid someone to urge an investor to purchase a security, say attorneys at Simpson Thacher.

  • Boeing Saga Underscores Need For Ethical Corporate Culture

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    In the wake of recent allegations about Boeing’s safety culture, and amid the U.S. Department of Justice’s new whistleblower incentives, business leaders should reinvigorate their emphasis on compliance by making clear that long-term profitability requires ethical business practices, says Maxwell Carr-Howard at Dentons.

  • Key Takeaways From 2024 Accountants' Liability Conference

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    At the recent annual Accountants' Liability Conference, regulators provided important commentary on new Public Company Accounting Oversight Board rulemaking and standard-setting initiatives, and emphasized regulatory priorities ranging from the tone at the top to alternative practice structures, say attorneys at Arnold & Porter.

  • A Closer Look At Feds' Proposed Banker Compensation Rule

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    A recently proposed rule to limit financial institutions' ability to award incentive-based compensation for risk-taking may progress through the rulemaking process slowly due to the sheer number of regulators collaborating on the rule and the number of issues under consideration, say attorneys at Troutman Pepper.

  • Series

    Fishing Makes Me A Better Lawyer

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    Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge​​​​​​​ at Robinson Bradshaw.

  • Parsing Controversial Del. General Corporation Law Proposals

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    In response to issues raised in three recent high-profile Delaware Court of Chancery decisions, many amendments to the Delaware General Corporation Law were quickly proposed that, if enacted, would bring significant changes likely to be hotly debated — and litigated — for the foreseeable future, say attorneys at Morgan Lewis.

  • 5th Circ. Venue-Transfer Cases Highlight Mandamus Limits

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    Three ongoing cases filed within the Fifth Circuit highlight an odd procedural wrinkle that may let district courts defy an appellate writ: orders granting transfer to out-of-circuit districts, but parties opposing intercircuit transfer can work around this hurdle to effective appellate review, says Charles Fowler at McKool Smith.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

  • To Make Your Legal Writing Clear, Emulate A Master Chef

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    To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.

  • Takeaways From SEC's New Data Breach Amendments

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    The U.S. Securities and Exchange Commission's recent amendment of its consumer privacy rules to require investment advisers and broker-dealers to put procedures in place to uncover data breaches and report them to customers evidences that protecting client records and information remains an SEC priority, say attorneys at Simpson Thacher.

  • Circuit Judge Writes An Opinion, AI Helps: What Now?

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    Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.

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