Jon Corzine and other ex-managers of bankrupt MF Global Inc. on Tuesday appealed a New York bankruptcy court’s ruling in favor of the 100 percent repayment of the firm’s commodities customers, saying they don’t object to the repayment but to the trustee’s rights under the order.
Former Rochdale Securities LLC trader David Miller was sentenced Wednesday to 2 1/2 years in prison for his role in a trading scam involving approximately $1 billion of Apple Inc. stock, according to federal prosecutors.
With prosecutors continuing to investigate JPMorgan Chase & Co. following its record $13 billion mortgage settlement Tuesday, U.S. Attorney General Eric Holder has a chance to satisfy the public's Wall Street bloodlust by following up with criminal charges against individual bank executives.
JPMorgan Chase & Co.'s $13 billion settlement on Tuesday marked the end of the bank's negotiating process with federal and state regulators over alleged false statements regarding the quality of mortgage-backed securities during the housing bubble, but it could be the just beginning of big settlements for other banks.
Bank of America Corp. unilaterally dictated the terms of its $8.5 billion “Frankenstein monstrosity” of a settlement with institutional mortgage-backed securities investors, an attorney challenging the deal at trial told a New York judge Tuesday, urging the judge to veto the deal.
JPMorgan Chase & Co. agreed to pay $13 billion to settle a host of federal government and state lawsuits alleging that the bank and its subsidiaries made false statements about the quality of mortgage-backed securities it sold prior to the financial crisis, the U.S. Department of Justice announced Tuesday.
Bank of New York Mellon Corp. won an emergency motion for relief in multidistrict litigation accusing the bank of manipulating foreign currency exchange transactions, agreeing that the plaintiffs' executive committee, including Lieff Cabraser Hiemann & Bernstein LLP, had inappropriately told third parties to ignore subpoena requests.
A New York federal judge has ordered MF Global Inc. to pay $1.2 billion to commodities customers who saw their money vanish when the broker-dealer collapsed two years ago, and slapped the brokerage with a $100 million penalty, according to a statement released Monday.
JPMorgan Chase & Co. agreed to a $4.5 billion settlement with 21 major institutional investors on Friday, in which it will make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by JPMorgan, The Bear Stearns Companies Inc. and Chase, to settle mortgage repurchase and servicing claims.
A Third Circuit panel Friday rejected an investor’s attempt to revive a putative securities fraud class action accusing Kid Brands Inc. of obscuring its products’ origins to avoid duties and misleading investors about its financial health, finding that the investor did not show intent to deceive.
A hedge fund can carry forward with allegations that JPMorgan Chase & Co. lied when it promised to promote the fund after it spun off from Bear Stearns & Co. Inc., a New York state judge ruled Thursday, reversing his own decision.
A former Level Global Investors LP portfolio manager pled guilty in Georgia federal court on Thursday to earning the now-defunct hedge fund at least $2.5 million by trading shares of children’s clothing firm Carter’s Inc. based on inside tips from a former company executive.
A New York federal judge sided against Longtop Financial Technologies Ltd. and its CEO on Thursday, awarding $882 million to a class of investors who accused the Hong Kong-based financial services software developer of exaggerating the size of its profit margins.
The Florida Supreme Court on Wednesday handed a partner in Ponzi schemer Scott Rothstein's now-defunct law firm a 91-day suspension from practicing law for incorrectly executing client settlement statements and for lying about his share in the firm to a co-op board.
A New York federal judge on Wednesday denied billionaire investor Ron Burkle’s request for a new election of Morgans Hotel Group Co.’s board of directors, which Burkle claims OTK Associates LLC tainted by issuing misleading proxy statements, saying Burkle waited far too long to file the lawsuit.
A former Guidepoint Global LLC employee who committed suicide after serving a one-year sentence for blackmailing the consulting firm with insider trading accusations no longer has to pay restitution, the Second Circuit ruled on Thursday, after Guidepoint agreed not to seek the money.
A Delaware federal judge on Wednesday tossed a shareholder suit that challenged AK Steel Holding Corp.'s executive compensation plan, finding the investor lacked standing to bring derivative claims against the company's officers and directors.
Two New Jersey men pled guilty in federal court on Wednesday to their primary roles in an elaborate insider trading network, admitted they gamed the stock market using information culled from sources inside companies including Sanofi-Aventis, Celgene Corp. and Stryker Corp.
The U.S. Securities and Exchange Commission said Tuesday it has made its first deferred prosecution agreement with an individual, in a case accusing a former hedge fund administrator of aiding and abetting the misappropriation of millions of dollars of investor funds.
Kim Rothstein, the wife of convicted Ponzi schemer Scott Rothstein, was sentenced Tuesday in Florida federal court to 18 months in prison for hiding more than $1 million in jewelry purchased with proceeds from the $1.2 billion scheme.
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.
The offer and sale of securities is often subject to registration and other qualification requirements imposed by individual state securities laws, or blue sky laws. The fundamental requirement is submission of a prescribed form of registration statement and approval by a state administrator prior to an offering, but in some states, offerings are subject to “merit review,” says Robert Rapp of Calfee Halter & Griswold LLP.
In the wake of Dodd-Frank, it is likely that the Fed’s role in public policy is too great for elected officials to merely defer to its judgments. Navigating this new political landscape will be among Janet Yellen’s most challenging tasks as Fed chairwoman, says Andrew Olmem, a partner with Venable LLP and former Republican chief counsel for the U.S. Senate Committee on Banking, Housing and Urban Affairs.
Although recent wins by defendants in say-on-pay lawsuits should help limit proxy litigation relating to compensation-related disclosures, it is reasonable to expect that plaintiffs’ counsel will continue to find ways to target companies and their directors in this type of litigation. To minimize litigation risk related to disclosure claims, corporate counsel should remain proactive in six areas of business, say Jordan Eth and Mark R.S. Foster of Morrison & Foerster LLP.