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.
Goldman Sachs Group Inc. was sued for fraud on Wednesday by a Singaporean investor who claims he lost over $34 million after the investment bank conned him into executing two exotic currency option trades by lying about the terms, while it reaped millions of dollars in commissions and fees.
The former owners of speech technology firm Dragon Systems Inc. asked the First Circuit on Wednesday to revive their allegations that Goldman Sachs & Co. failed to assess the stability of a company buying out Dragon, arguing that Goldman’s conduct was egregious enough to warrant liability.
The top U.S. accounting watchdog on Wednesday reissued a proposal that would require auditing firms to identify the lead partner and any other firms that contributed to an audit report in a bid to boost transparency for investors.
North Sound Capital LLC and two other institutional funds have sued Merck & Co. Inc. and its subsidiary for allegedly misrepresenting a crucial clinical study for its anti-cholesterol agents Zetia and Vytorin, according to court documents made public in New Jersey federal court on Wednesday.
Fifth Third Bancorp on Wednesday agreed to pay the U.S. Securities and Exchange Commission $6.5 million to settle allegations that it hid losses on commercial real estate loans it intended to sell during the financial crisis.
General Motors Co. will shed the last of its stake in former lending unit Ally Financial Inc. in a placement worth $900 million, while Men's Wearhouse — itself on a buyout hunt — is closing in on a deal that would send its discount clothing unit to Sycamore Partners.
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.
Companies wishing to discuss non-GAAP financial measures must carefully follow the requirements of Regulation G. In the event that a public announcement or release is going to include such measures, the presentation of, and reconciliation to, the most comparable GAAP measure is typically included in the release, says Michael Zeidel of Skadden Arps Slate Meagher and Flom LLP.
At long last, the U.S. Supreme Court will address the fraud-on-the-market presumption of reliance established by the court in 1988. Securities litigators on both sides of the aisle are understandably anxious, because our entire industry is about to change — either a little or a lot. I say “change” because the ruling in Halliburton cannot and will not do away with securities litigation, says Douglas Greene of Lane Powell PC.
Picture this: A seller of goods is losing tens of millions of dollars per year on a requirements contract containing price caps that the parties have operated under for years. Given the Uniform Commercial Code and relevant case law, it would be natural — and completely logical — to accept the cogent authority establishing that rising costs are generally insufficient to invalidate a contract. I am betting that, in this case, the law will trick you, says Andrew Jarzyna of Ulmer & Berne LLP.
Nontraditional startups and small businesses have successfully used non-equity crowdfunding sites like Kickstarter, Indiegogo and RocketHub, and can be expected to expand into full crowdfunding under newly proposed rules from the U.S. Securities and Exchange Commission. In fact, companies could run two $1 million crowdfunding transactions concurrently, say Spencer Feldman and Nik Talreja of Olshan Frome Wolosky LLP.
When researching an expert, look for whether the expert’s opinion and methodology in the case is consistent with the expert’s approach outside of litigation. Inconsistency in an expert’s opinion not only is great fodder for cross-examination, but might also point to a more serious methodological problem that can form the basis for a Daubert challenge, says Matthew Whitley of Beck Redden LLP.
The New York Department of Financial Services is emerging as an aggressive regulator of financial institutions based in New York or doing business in the state. And recent information, including subpoenas issued to key industry players, suggests that the department has turned its attention to virtual currencies such as "Bitcoin," say attorneys with Jones Day.
The outcome of Lawson v. FMR LLC, the first Sarbanes-Oxley Act whistleblower case to reach the U.S. Supreme Court, may turn on how the justices resolve a hypothetical posed by Justice Stephen Breyer about a gardener hired to mow the lawn for a publicly traded corporation, say Edward Ellis and Stephen Melnick of Littler Mendelson PC.
While it has been best practice for several years to evaluate and monitor charitable donations using a risk-based approach, Stryker Corp.'s recent $13.2 million Foreign Corrupt Practices Act settlement demonstrates that donations provided to a legitimate entity can still be improper, say attorneys with Norton Rose Fulbright LLP.
A Texas jury recently dealt the U.S. Securities and Exchange Commission a stunning defeat in federal court by finding Mark Cuban, the entrepreneur and owner of the Dallas Mavericks, not liable for insider trading. While the verdict may have resulted from adverse evidentiary rulings, reliance on a reluctant, foreign witness and jury nullification for a hometown celebrity, this loss may cause the agency to reevaluate its approach to trials and to seek friendlier venues for insider trading cases, say attorneys with Cadwalader Wickersham & Taft LLP.