Securities

  • April 04, 2024

    Investors Want To Try Fraud Case Receiver Won't

    Investors in a company accused by securities regulators of a $125 million Ponzi scheme said Thursday they should get to pursue fraudulent transfer claims against other companies themselves, after a receiver indicated he didn't have the resources to go after them.

  • April 04, 2024

    9th Circ. Unconvinced Judge's Past Job Hurt Tesla Investor

    The Ninth Circuit on Thursday refused to revive claims brought by a short-seller accusing Tesla Inc. and CEO Elon Musk of using social media to artificially inflate the company's stock, ruling that the plaintiff wasn't prejudiced by a district judge's former employment with the predecessor of a firm that represented Tesla for a portion of the litigation.

  • April 04, 2024

    Google Files RICO Suit Alleging Crypto, Investing App Scams

    Google hit a pair of China-based app developers with a racketeering lawsuit in New York federal court Thursday, claiming they defrauded more than 100,000 users with dozens of fake investment and cryptocurrency exchange apps placed on the Google Play store that bilked users out of their money.

  • April 04, 2024

    Crypto Bank, Chair Blast FTX Investors' 'Gatling Gun' Claims

    A crypto bank and its chairman have urged a Florida federal judge to toss a second amended complaint from FTX investors alleging they helped Sam Bankman-Fried abscond with $8 billion in customer assets, saying the investors "employ a Gatling gun approach to pleading."

  • April 04, 2024

    Morgan Stanley, Goldman Sachs Can't Duck Archegos Claims

    A New York appellate court on Thursday affirmed a decision refusing to dismiss ViacomCBS investors' claims against Morgan Stanley, Goldman Sachs and a long list of banks over the collapse of Archegos Capital Management, finding that investors plausibly identified statements the banks made that could have been misleading.

  • April 04, 2024

    Crypto Co. Fined $700,000 For Duping Investors Into 'AI' Trading

    The owner of an unlicensed cryptocurrency investment firm wooed a cancer patient and other investors with promises of AI-driven trading, only to use their funds for rent payments and other personal expenses, Connecticut regulators said Wednesday in ordering a $700,000 fine.

  • April 04, 2024

    SEC Fines Adviser Senvest $6.5M In Texting Probe Case

    Investment adviser Senvest Management LLC has agreed to pay the U.S. Securities and Exchange Commission $6.5 million for its failure to hold on to certain electronic communications, the SEC said, expanding the list of settlements the agency has secured with firms in recent months over off-channel texting violations.

  • April 04, 2024

    Wells Fargo Hit With Del. Suit Targeting Account Abuses

    Citing billions of dollars in regulatory agency sanctions, fines and judgments and allegedly chronic disregard of "red flag" reports and fake account investigations, a Wells Fargo & Co. stockholder has sued 23 current and former bank directors and officers in Delaware's Court of Chancery, seeking derivative recoveries for the losses.

  • April 04, 2024

    BAE Stuck $8.2B Retirement Plan With Hefty Fees, Court Told

    Aerospace and defense company BAE Systems breached federal benefits law by saddling its $8.2 billion retirement plan with excessive recordkeeping fees and causing participants' savings to plummet, a proposed class action filed in D.C. federal court said.

  • April 04, 2024

    Ginnie Mae, HUD Must Face Bank's Vacated Lien Suit

    A Texas federal judge trimmed but declined to dismiss Texas Capital Bank's suit against the U.S. Department of Housing and Urban Development and its Government National Mortgage Association program over a vacated loan lien that the bank says was worth tens of millions of dollars.

  • April 04, 2024

    BitMEX Can't Ax Investor Suit After 2nd Circ.'s Binance Ruling

    A New York federal judge has refused to toss a proposed class action accusing cryptocurrency platform BitMEX and its executives of using their "God access" to customer accounts to manipulate trades and liquidate the accounts, finding that under the Second Circuit's recent Binance ruling, the transactions occurred in the U.S.

  • April 04, 2024

    Attys Awarded $1.5M In Fees On Tax Disclosure Suit

    Attorneys who won a $4.5 million settlement for a class of investors claiming a Chinese startup misrepresented its tax liability will receive their requested $1.5 million in attorney fees, a New York federal judge ruled.

  • April 04, 2024

    Judge Recuses Herself From Cartel Case Over Exxon Stock

    A Nevada federal judge has recused herself from a batch of antitrust lawsuits claiming U.S. shale oil producers colluded with OPEC to drive up prices at the pump, citing her ownership of a "significant" amount of Exxon Mobil Corp. stock.

  • April 04, 2024

    Judge Won't Pause Dismissal Of $114M Discord Stock Case

    A Houston judge has denied a bid from federal prosecutors to pause the dismissal of an indictment that accused eight men of running a $114 million pump-and-dump stock scheme, writing that the government's argument for a stay largely rehashes the merits of dismissing the case and "is not particularly persuasive."

  • April 04, 2024

    SEC Voluntarily Puts Climate Regs On Ice During Court Battle

    The U.S. Securities and Exchange Commission announced Thursday that it is voluntarily delaying the implementation of climate disclosure regulations while it fights an Eighth Circuit challenge seeking to vacate the rules, with the regulator saying that it hopes the voluntary stay will speed resolution of the case. 

  • April 04, 2024

    UK Billionaire Lewis Avoids Prison For Insider Trading

    A New York federal judge on Thursday sentenced British billionaire Joe Lewis to three years of probation for feeding his girlfriend and private-jet pilots nonpublic stock tips about his private equity firm's portfolio companies, saying a prison term would put the 87-year-old at "serious risk" of death.

  • April 04, 2024

    Ex-CEO Reaches Legal Fee Agreement With Trump-Tied SPAC

    A Delaware vice chancellor has signed off on an agreement between Donald Trump-tied Digital World Acquisition Corp. and its former CEO to have the venture pay his legal costs related to federal probes and litigation in multiple states.

  • April 04, 2024

    Del. Justices Reverse Chancery On Match.com Deal Fairness

    Delaware's Supreme Court on Thursday undid a Chancery Court dismissal of a challenge to Match.com's 2019 reverse-spinoff from Barry Diller-controlled IAC Interactive, in a closely watched case rejecting the lower court's finding that Match had justified the use of a less onerous fairness test.

  • April 04, 2024

    Withers Adds Former In-House Corp. Atty In San Francisco

    Withers has hired the former in-house general counsel for a financial software company, who joins the firm to continue his practice working with entrepreneurs in the technology, e-commerce and digital publishing industries, the firm announced Wednesday.

  • April 04, 2024

    IT Firm ConvergeOne To Wipe $1.6B Of Debt In Ch. 11

    Information technology company ConvergeOne Holdings Inc. received preliminary approval for a disclosure statement Thursday that describes its plan to slash $1.6 billion from its balance sheet in a prepackaged Chapter 11.

  • April 03, 2024

    SEC Disclosures Show Public Cos. Backing DEI, Study Finds

    Public companies overwhelmingly prioritized diversity, equity and inclusion principles in their mandatory workforce disclosures to the U.S. Securities and Exchange Commission in 2023 despite a flurry of litigation and legislative proposals aimed at deterring those initiatives in the corporate world, a study from Seyfarth Shaw LLP attorneys found.

  • April 03, 2024

    Accused 'Shadow Trader' Takes Stand To Slam SEC's Case

    A former Medivation executive accused of "shadow trading" when he purchased stock in rival Incyte testified in his California federal civil trial Wednesday that he didn't base that decision on confidential information, and he didn't think even "for one second" that he was violating securities laws.

  • April 03, 2024

    Fla. Magistrate Nixes Recusal Bid In CBD Co. Securities Suit

    A Florida federal magistrate judge has shot down an effort to have her disqualified from a securities fraud case against a CBD company for remarks she allegedly made during a March settlement conference, saying the plaintiffs' arguments in favor of recusal were "legally insufficient" to establish bias.

  • April 03, 2024

    OneCoin Atty Gets 4 Years For Role In $4B Crypto Fraud

    The former head of legal and compliance at OneCoin on Wednesday was sentenced to four years in prison for her role in the $4 billion cryptocurrency scheme that defrauded millions of investors around the world.

  • April 03, 2024

    UK Billionaire Lewis Agrees To $1.64M Insider Trading Penalty

    British billionaire Joseph Lewis has agreed to pay $1.64 million to settle the U.S. Securities and Exchange Commission's civil claims he fed confidential tips to his personal pilots and then-girlfriend after pleading guilty to related criminal charges earlier this year.

Expert Analysis

  • The Most-Read Securities Law360 Guest Articles Of 2023

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    Securities guest article topics that piqued reader interest this year include how the U.S. Securities and Exchange Commission utilized seldom-used rules to go after bad actors, and how Delaware courts increased scrutiny on boards of directors — sometimes in surprising ways.

  • The Most-Read Legal Industry Law360 Guest Articles Of 2023

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    A range of legal industry topics drew readers' attention in Law360's Expert Analysis section this year, from associate retention strategies to ethical billing practices.

  • How SEC And NY Cyber Reporting Rules Affect Key Industries

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    The new U.S. Securities and Exchange Commission and New York State Department of Financial Services cybersecurity disclosure requirements, and their competing obligations, reveal the increasing complexity for organizations evaluating and reacting to cybersecurity incidents — particularly those in the healthcare and financial services industries, say attorneys at Manatt.

  • Attorneys' Busiest Times Can Be Business Opportunities

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    Attorneys who resolve to grow their revenue and client base in 2024 should be careful not to abandon their goals when they get too busy with client work, because these periods of zero bandwidth can actually be a catalyst for future growth, says Amy Drysdale at Alchemy Consulting.

  • Bribery Bill Fills Gap In Foreign Corruption Enforcement

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    Congress recently passed the Foreign Extortion Prevention Act, significantly expanding the U.S. government's ability to prosecute foreign officials who seek or demand bribes, but if enacted, the legislation could also create tension with other nations, say attorneys at Ropes & Gray and Mayer Brown.

  • In The World Of Legal Ethics, 10 Trends To Note From 2023

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    Lucian Pera at Adams and Reese and Trisha Rich at Holland & Knight identify the top legal ethics trends from 2023 — including issues related to hot documents, artificial intelligence and cybersecurity — that lawyers should be aware of to put their best foot forward.

  • Del. Dispatch: The 2023 Corporate Cases You Need To Know

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    Corporate and mergers and acquisitions litigation has continued at a fevered pace this year, with the Delaware courts addressing numerous novel issues with important practical implications, including officer exculpation and buyer aiding-and-abetting liability, say attorneys at Fried Frank.

  • Volume-Based Transaction Pricing Proposal Raises Questions

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    A rule recently proposed by the U.S. Securities and Exchange Commission, which would prohibit securities exchanges from offering volume-based transaction pricing for agency or riskless principal orders in certain stocks, is meant to address competitive concerns — but there are reasons to question the logic behind this proposal, say attorneys at Sidley.

  • SEC, NY Cybersecurity Rules Create Complexity For Insurers

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    Two separate cybersecurity rules recently adopted by the New York Department of Financial Services and the U.S. Securities and Exchange Commission pose distinct challenges for insurance industry participants, with important interactions, and potential tensions, for those required to comply with both frameworks, say attorneys at Debevoise.

  • How Attorneys Can Be More Efficient This Holiday Season

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    Attorneys should consider a few key tips to speed up their work during the holidays so they can join the festivities — from streamlining the document review process to creating similar folder structures, says Bennett Rawicki at Hilgers Graben.

  • Top 10 Whistleblowing And Retaliation Events Of 2023

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    The U.S. Securities and Exchange Commission and federal and state courts made 2023 another groundbreaking year for whistleblower litigation and retaliation developments, including the SEC’s massive whistleblower awards, which are likely to continue into 2024 and further incentivize individuals to submit tips, say attorneys at Proskauer.

  • Understanding Advance Notice Bylaws Is Key For All Parties

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    Recent developments in Delaware case law show that advance notice bylaws will be strictly construed and that Delaware courts will generally uphold clear, unambiguous bylaws adopted and applied reasonably, a lesson for both companies and stockholders alike as the number of companies rejecting director nominations by dissident stockholders has increased, say attorneys at MoFo.

  • 3 Defense Takeaways From The Bankman-Fried Trial

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    FTX founder and former CEO Sam Bankman-Fried’s recent fraud conviction offers several key lessons for future white collar defendants, from the changing nature of cross-examination to the continued risks of taking the stand, say Jonathan Porter and Gregg Sofer at Husch Blackwell.

  • Series

    Children's Book Writing Makes Me A Better Lawyer

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    Becoming a children's book author has opened doors to incredible new experiences of which I barely dared to dream, but the process has also changed my life by serving as a reminder that strong writing, networking and public speaking skills are hugely beneficial to a legal career, says Shaunna Bailey at Sheppard Mullin.

  • Parsing 2023's Energy Markets Enforcement

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    A review of the Federal Energy Regulatory Commission's and Commodity Futures Trading Commission's recently released fiscal year 2023 enforcement reports highlight the significant energy market enforcement activities, litigation pursued and settlements reached by both agencies, as well as their respective strategic goals and focus areas, say attorneys at Morgan Lewis.

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