The former CEO of Van Gilder Insurance Corp. on Thursday pled guilty to insider trading in Colorado federal court, following accusations he traded Delta Petroleum Corp. securities based on nonpublic information he received from the ex-head of Delta.
The Second Circuit on Thursday upheld a ruling that tossed a misrepresentation suit against investment bank Maxim Group LLC and private equity firm Aramid Entertainment Fund Ltd. over a botched deal for a promissory note, finding there was no binding agreement in place.
Two so-called turnkey mutual funds and their administrator Thursday settled a U.S. Securities and Exchange Commission lawsuit alleging they issued misleading disclosures to investors about how they approved and renewed investment advisory contracts.
Former hedge fund executive Todd Newman, convicted of insider trading in Dell Inc. and Nvidia Corp. stock as part of a “criminal club” of finance professionals, was sentenced Thursday to 54 months in prison.
A New York federal judge on Tuesday revived the bulk of claims in a pair of class actions against Goldman Sachs Group Inc., Bank of Scotland Group PLC, Residential Capital LLC and others over alleged missteps in mortgage-backed securities offerings, a ruling that will allow the two actions to cover offerings totaling about $46 billion.
A New Jersey federal judge on Tuesday trimmed claims against a CEO and a private equity firm from a shareholders securities class action alleging top executives of bankrupt grocery store chain The Great Atlantic & Pacific Tea Co. Inc. failed to disclose A&P's financial woes.
A New York federal judge refused Wednesday to throw out a case accusing a Spanish information technology company of retaliating against an employee who blew the whistle on an alleged attempt to commit fraud on a New York Metropolitan Transit Authority contract.
A Washington federal judge on Monday sentenced two former Xinhua Finance Ltd. board members and the financial information company’s ex-CEO to prison for conspiracy to obstruct the Internal Revenue Service, after the government accused them of running a $50 million insider trading scheme.
The Knights of Columbus can't recover money lost in mortgage-backed securities from the charity's trustee, the Bank of New York Mellon Corp., a New York state judge ruled Tuesday in a case closely related to a proposed $8.5 billion Bank of America Corp. settlement.
In the latest settlement arising out of an alleged $1 billion Ponzi scheme, Wells Fargo Bank NA agreed Tuesday to pay $105 million to investors who alleged it breached its duties as a trustee by handing out their funds to Medical Capital Holdings Inc.
A former real estate investment businessman was sentenced in Illinois federal court Tuesday to 10 years in prison for taking part in a fraud scheme that the government said cost hundreds of investors a total of $18 million in losses.
Media-financing firm Aramid Entertainment Fund Ltd. failed Tuesday to persuade a New York state appeals court to reverse a lower court’s decision tossing its $190 million suit claiming Hollywood financier David Bergstein and others lied about Aramid to disrupt its planned $130 million asset sale to a private equity firm.
The D.C. Circuit on Tuesday denied relief to a group of tech companies that claimed market data fees charged by Nasdaq and other stock exchanges were exorbitant, finding it did not have the authority to review whether the U.S. Securities and Exchange Commission properly failed to suspend the fees.
A New York state judge has trimmed a suit accusing Deutsche Bank AG and several of its units of misrepresenting the risks of more than $150 million in residential mortgage-backed securities, ruling that the plaintiffs couldn’t prove the bank owed any duty sufficient to support a negligent misrepresentation claim.
The Chapter 7 trustee for HomeBanc Mortgage Corp. on Monday asked a Delaware bankruptcy judge to approve a $3.25 million settlement of a $100 million adversary proceeding it asserted against Bear Stearns & Co. Inc. over securities repurchase agreements between Bear Stearns and HomeBanc.
General Electric Co., its CEO Jeffrey Immelt and Chief Financial Officer Keith Sherin have agreed to pay $40 million to settle a class action alleging the iconic appliance company lied to investors about its financial health during the 2008 financial crisis, the lead plaintiff said Monday.
Morgan Stanley & Co. Inc., Moody's Investors Service and Standard & Poor's Rating Services are paying $225 million to settle two long-running class actions alleging they misled investors about structured investment vehicles that contained risky mortgage-backed securities, according to a Monday report.
The Fourth Circuit on Monday reversed A&O Resource Management Ltd. co-owner Adley H. Abdulwahab’s money-laundering convictions and remanded his 60-year prison sentence stemming from his role in a $100 million life settlement investment scheme, ordering a lower court to resentence him.
A Pennsylvania judge on Monday dismissed seven putative class actions alleging H.J. Heinz Co.'s board failed to solicit other offers before accepting a $28 billion buyout from 3G Capital Partners Ltd. and Berkshire Hathaway Inc., clearing the way for a Tuesday vote to finalize the deal.
Cisco Systems Inc. shareholders on Friday agreed to drop a consolidated class action filed in California federal court accusing company brass of artificially boosting stock prices while Cisco's CEO used insider information to sell $134 million worth of company shares.
What is striking about SEC v. Moore — an insider trading case against a Canadian investment banker who allegedly traded on nonpublic information that he "pieced together" — is that the facts allegedly observed by Moore, when viewed independently, are all seemingly immaterial. The mosaic theory, if not dead, may very well be on life support, say attorneys with Allen & Overy LLP.
In resolving Morgans Hotel Group Co. Kalisman v. Friedman, the Delaware Court of Chancery carefully drew the line to allow discovery of communications between counsel and a special committee that the plaintiff-director was a member of, but shielded communications between counsel and a subcommittee on which the plaintiff-director did not serve, says Herbert Kozlov of Reed Smith LLP.
Recent statements by newly confirmed U.S. Securities and Exchange Commission chairwoman Mary Jo White and other SEC officials suggest a strong enforcement effort in the coming years — and the Obama administration’s budget proposal for FY 2014 indicates that the commission likely will have the resources it needs to support this effort, say attorneys with Arnold & Porter LLP.
Ralph Lauren Corp.'s aggressive response to its Foreign Corrupt Practices Act violations led to nonprosecution agreements with the U.S. Securities and Exchange Commission and the U.S. Department of Justice, which demonstrates a continued focus by the government on securing and rewarding cooperation, say Jonathan Green and James Athas of Kaye Scholer LLP.
Alongside legal reform and a consolidation of institutions, self-regulatory initiatives have promoted a real improvement in corporate governance practices in Brazil. Such factors have also led to the creation of a more diffuse control of capital in Brazilian companies and the increased participation of active minority investors demanding professional, independent and transparent management bodies, says Silvia Fazio of Chadbourne & Parke LLP.
Brockton Retirement Board and Quincy Retirement Board v. Oppenheimer Global Resource Private Equity Fund I LP suggests that the plaintiffs’ securities class action bar is focused on the offering process of private investment funds. The case also shows that disgruntled investors are exploring new legal theories as potentially attractive alternatives to traditional fraud/misrepresentation claims under Section 10(b) of the Securities and Exchange Act of 1934, say attorneys with Proskauer Rose LLP.
The U.S. Securities and Exchange Commission has reported a record number of enforcement actions over the past two years, as well as a new focus on what the agency considers “national priority” cases. These record numbers, however, have masked the underlying decline in new investigation activity by the SEC over the same period, say David Marcus and Sara Gilley of Cornerstone Research.
Given that few courts have construed the meaning of “repurchase agreement” as used in the Bankruptcy Code, the recent case of In re Homebanc Mortgage Corp. in the U.S. Bankruptcy Court for the District of Delaware is a must-read for “repo” counterparties, say attorneys with Alston & Bird LLP.
With international cooperation among securities regulators at an all-time high, any company facing a regulator inquiry must ask itself what other international regulators may be involved or may want to become involved, says Michael Rosensaft of Katten Muchin Rosenman LLP.
Big Brother is paying attention to how you value your company’s stock for purposes of granting stock options, as evidenced by Sutardja v. United States, in which the U.S. Court of Federal Claims recently confirmed that Section 409A applies to discounted stock options. This case highlights the need to ensure that a determination of fair market value is defensible and complies with Section 409A, says Justin Stemple of Warner Norcross & Judd LLP.