A Texas federal judge denied class certification for investors facing losses in the aftermath of BP PLC's Deepwater Horizon rig explosion in 2010, after determining Friday that the investors' damages calculation was too murky to earn certification in light of a recently bolstered standard from the U.S. Supreme Court.
A D.C. federal judge approved a $153 million class action settlement Friday for investors who accused housing giant Fannie Mae and accounting firm KPMG LLP of putting out misleading financial reports, the largest such settlement in the D.C. Circuit since 1996.
PNC Financial Services Group Inc. on Friday announced an $89 million settlement with Freddie Mac, making it the latest bank and the second within a week to bring to a close mortgage repurchase claims with the government-controlled firm.
A federal judge signaled Thursday he might fine Bank of America Corp. more than $1 million, a penalty amount favored by the institution, for defrauding Freddie Mac and Fannie Mae through a mortgage program.
A Minnesota federal judge on Thursday rejected Thomas J. Petters’ “last-ditch attempt” to escape punishment after being convicted of running a $3.7 billion Ponzi scheme and using the ill-gotten profits to buy Polaroid Corp. and other companies, calling the appeal his “final con.”
A New York federal judge said Thursday that sanctions must be imposed against counsel from Wolf Haldenstein Adler Freeman & Herz LLP who filed an allegedly frivolous consolidated securities class action claiming AOL Inc. bought millions of its shares at artificially depressed prices before announcing a $1 billion patent sale.
A former Dell Inc. manager who provided investment firm professionals with inside information was sentenced to probation Thursday, dodging a prison term after he cooperated with prosecutors in investigations, including that of SAC Capital Advisors LP's Michael Steinberg.
Lululemon asked a New York federal judge on Wednesday to toss a consolidated shareholder complaint accusing the retailer of inflating its stock after consumers discovered its yoga pants were see-through, arguing that investors failed to prove that the company made misleading statements.
Defunct brokerage firm John Thomas Financial Inc. and CEO Anastasios “Tommy” Belesis have each agreed to pay $500,000 to settle a U.S. Securities and Exchange Commission suit alleging they aided a hedge fund manager's fraud, the agency said Thursday.
A recent surge in shareholder activism was punctuated by a landmark 2013 proxy season with bigger-than-ever targets and tougher tactics that left boards scrambling. But as companies sharpen their focus on the coming year, experts suggest they stay vigilant to avoid second-bite plays from familiar faces.
A former owner of commodity pool operator Chicago Trading Managers LLC hit Colorado-based law firm Henderson & Lyman with a complaint in Colorado federal court Wednesday, alleging its attorney's poor advice caused him to be sued by the U.S. Commodity Futures Trading Commission.
Investors can't get any discovery yet for their $450 million mortgage-backed securities lawsuit against Goldman Sachs Group Inc., a New York state judge ruled during a hearing Thursday, saying he first needed a better idea of if he'd dismiss it.
Treasury Secretary Jack Lew on Thursday said that a "tough" ban on proprietary trading that regulators are set to begin voting on next week will be a key part of a broad package of financial reforms that have brought to an end the era of "too-big-to-fail" banks.
Bank of America Corp. agreed Wednesday to pay $20 million to settle part of a multidistrict litigation accusing it and other financial institutions of bid-rigging in the municipal bond derivatives market.
The U.S. House of Representatives passed a measure Wednesday that would undo a Wall Street reform established through the Dodd-Frank Act by exempting nearly all private equity fund advisers from registration requirements with the U.S. Securities and Exchange Commission.
Three trade industry groups on Wednesday filed suit in D.C. federal court against the U.S. Commodity Futures Trading Commission, accusing the agency of overstepping its bounds with the release of the so-called Cross-Border Rule governing the exchange of derivatives and swaps overseas.
A former SAC Capital Advisors LP analyst turned government witness said Wednesday that his best tips for portfolio manager Michael Steinberg came from an illicit source, despite defense suggestions that some information came through legitimate channels.
Lenders who say they lost $767 million in a complex OppenheimerFunds Inc.-backed securities deal should have their allegations revived because they already have provable damages, the lenders' attorney told a New York appeals court panel during a hearing Wednesday.
The U.S. Securities and Exchange Commission's trial loss on Monday against an executive at government website contractor NIC Inc. comes less than two months after a jury cleared Dallas Mavericks owner Mark Cuban of insider trading, reigniting questions about the agency’s courtroom chops.
A New York federal judge on Tuesday rejected Korean technology firm Simmtech Co. Ltd.’s motion to remand to state court its $73 million fraud suit accusing Citibank NA of duping Simmtech into investing in derivatives contracts to hedge against currency fluctuations by hiding risks.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
In a recent decision, the U.S. District Court for the Northern District of Georgia held that whistleblowers claiming retaliation under Dodd-Frank are not entitled to a jury trial. The decision provides the first authoritative answer to one of several statutory issues still working their way through the courts, say attorneys at King & Spalding LLP.
Three recent cases applied the economic substance doctrine, with quite different results, to the "structured trust advantaged repackaged securities" transaction, one of several foreign tax credit generators the IRS is aggressively challenging. These decisions likely foreshadow a fight in the circuit courts over STARS and the economic substance doctrine, say Robert Probasco and Lee Meyercord of Thompson & Knight LLP.
The recent California appeals court decision in GetFugu Inc. v. Patton Boggs LLP serves as a reminder that parties should refrain from attempting to litigate their case in the press or on social media, particularly if the statements are known to be false, or the veracity of such statements is not yet confirmed, say Mark Hansen and Robert Milligan of Seyfarth Shaw LLP.
A new avenue of recovery has just been opened to Madoff victims. The U.S. Attorney for the Southern District of New York recently announced that the Madoff Victim Fund would begin accepting claims. Those who lost money invested with Madoff — indirectly or directly — should be aware of several aspects of the MVF so they can maximize their recovery, say James Masella and Jeremy Weinberg of Patterson Belknap Webb & Tyler LLP.
The U.S. Securities and Exchange Commission recently announced sanctions against six investment advisory firms that, taken as a whole, highlight two continued areas of focus for the SEC: compliance program deficiencies and violations of the “custody rule," say Hoyt Stastney and Peter Kaiser of Quarles & Brady LLP.
Federal regulators last month proposed rules implementing the Basel III liquidity coverage ratio. Among other things, the proposed LCR is more stringent than the international LCR standard agreed upon by the Basel Committee on Bank Supervision earlier this year, says Brian Barrett of Sutherland Asbill & Brennan LLP.
Mandated law student pro bono programs have not worked in championing the causes of social justice for those unable to afford counsel. States would be far better off using their resources to insist on a legislative solution to a very troubling and persistent deficiency in the allocation of legal resources, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.
Remarks from U.S. Department of Justice and U.S. Securities and Exchange Commission officials at the 30th International Conference on the Foreign Corrupt Practices Act reaffirmed the heightened risk of prosecutions — and particularly the increased potential for multijurisdictional investigations — at a time when some observers have perceived diminishing support for anti-corruption enforcement, say Taylor Phillips and Eli Richardson of Bass Berry & Sims PLC.
While the Delaware Chancery Court’s approach to Orchard Enterprises Inc. was limited to the facts of the case, there are at least two other options that can be considered in valuing preferred stock. In particular, the option pricing methodology has become a well-recognized approach to allocate enterprise value among security holders, say Louisa Galbo and Jaime d'Almeida of Duff & Phelps Corp.