A California state judge Monday barred the state from selling voter-approved bonds to fund its high-speed rail project and ordered officials to rewrite the railway's $68 billion funding plan, finding that it failed to meet all state-law requirements and could wind up wasting taxpayer money.
U.S. financial regulators are under pressure to complete the Volcker Rule's ban on proprietary trading by year's end, but continued conflict among regulators over how severe the rule's trading restrictions should be means banks could be forced to comply with multiple versions of the same regulation.
A Long Island financier and his companies have agreed to pay $1.4 million to settle a U.S. Securities and Exchange Commission suit alleging they bought and sold billions of penny stocks without registering the shares, the agency said Monday.
The trustee recovering money for Bernard Madoff's victims urged the Second Circuit on Friday to overturn a ruling that disallowed suits against so-called Madoff net-winners, arguing he deserves to be able to look back six years to decide who is a net winner.
Investors can pursue allegations that General Electric Capital Corp. and JPMorgan Chase & Co. misrepresented the quality of loans in a $1.9 billion mortgage-backed securities trust, a New York state judge ruled Friday, but limited damages to loans that don't meet underwriting standards.
Morgan Stanley & Co. Inc. told the Second Circuit on Friday to dismiss an appeal in two class actions accusing the firm of violating its fiduciary duty to employees by investing retirement funds in risky company stock, saying the class members had failed to adequately allege their claims.
The U.S. Securities and Exchange Commission has begun settlement talks with one of two men accused of trading on inside information supplied by Hunton & Williams LLP drug patent attorney Robert Schulman, who was allegedly intoxicated at the time of the tip, according to a Friday filing in Florida district court.
The ADT Corp. on Monday said it has agreed to pay over $450 million to buy back 10.24 million shares of the electronic security company’s common stock from hedge fund Corvex Management LP.
A Florida federal judge on Friday ordered jailed Ponzi schemer Scott Rothstein to appear at the criminal trial of one of the lawyers charged in connection with Rothstein’s $1.2 billion scheme to sell shares in sham legal settlements.
The former CEO of Bank of Choice in Greeley, Colo., will pay $65,000 in restitution to settle charges that he violated registration and anti-fraud provisions of the Colorado Securities Act, according to a stipulation filed Thursday in Denver district court.
Investors in $951 million worth of Deutsche Bank AG mortgage-backed securities can pursue allegations that some of the securities' loans were defective, but they can't undo the whole deal based on alleged "fundamental breaches" of the contracts, a New York state judge ruled Monday.
A substantial minority investor in commodity supply chain company MFC Industrial Ltd. on Monday kicked off a proxy fight aimed at a board overhaul, building on a trend of more engaged stakeholders against the backdrop of a surge in shareholder activism.
Morrison & Foerster LLP announced Monday that the former chief legal officer for Allied Capital Corp. and deputy general counsel for Fannie Mae had joined the firm’s Washington, D.C., office as partner in its corporate finance practice.
Activist shareholders concerned about the integrity of CommonWealth REIT's board and its alleged plan to wrest control of the company formally sought Monday to oust the entire body and replace it with a group of “truly independent” members.
Robbins Geller Rudman & Dowd LLP should be sanctioned for pursuing a securities class action suit against The Boeing Co. based on deeply flawed allegations by a confidential witness, the aerospace company told an Illinois federal judge on Friday, arguing the firm’s conduct had "crossed the line."
The receiver for WG Trading Co. on Friday urged a New York federal judge to approve a $3.4M settlement with Credit Suisse International and its subsidiary Zephyros Ltd. in a clawback suit over an alleged Ponzi scheme orchestrated by WG executives.
A New York state judge on Thursday dismissed BGC Capital Markets LP’s allegations that rival brokerage Tullett Prebon America’s Corp. had stolen proprietary U.S. Treasury data through a joint venture between the two, ruling that BGC had already recovered damages through arbitration.
The Second Circuit on Friday affirmed that the wife of Eric Butler, the former Credit Suisse Group Inc. broker convicted for his role in a $1.1 billion securities fraud scheme, cannot block the government from seizing accounts held in his name, despite her claim to part of the accounts.
A judge on Friday sentenced former Credit Suisse AG investment banker Kareem Serageldin to 30 months for inflating the value of mortgage-linked bonds to mask losses, and he criticized the bank's supposedly "evil climate."
A pair of investment firms on Thursday slapped Barclays Bank PLC, UBS AG and others with a $100 million lawsuit in New York Supreme Court, claiming the banks breached contracts with investors by conspiring to rig the London Interbank Offered Rate for their own gain.
The recent district court decision in U.S. v. Countrywide Financial Corporation highlights the Financial Institution Reform, Recovery and Enforcement Act's expanding scope. Should the derivative theory of liability under FIRREA become judicially accepted, companies may well find themselves entangled in government-initiated lawsuits that once were solely within the realm of private disputes, say attorneys with Jenner & Block LLP.
Goaded by the Public Investors Arbitration Bar Association into a snipe hunt for the still-elusive improper expungement of valid customer claims from any broker’s public record, FINRA recently issued a “Notice to Arbitrators and Parties on Expanded Expungement Guidance.” This effort is misguided, say Bryan Ward and S. Lawrence Polk of Sutherland Asbill & Brennan LLP.
Among 10 battle-proven strategies for getting your witnesses ready for trial is to role-play the cross-examiner. For instance, if you expect the cross-examiner to yell, get in the witness’ face or use scathing sarcasm, do that during practice to minimize surprises at trial, say Dawn Solowey and Lynn Kappelman of Seyfarth Shaw LLP.
Recent events, from the Westgate Mall attack in Nairobi to the Lac-Mégantic train derailment in Quebec, underscore the need for in-house counsel to keenly weigh risks and benefits for their companies doing business on a multinational scale. There are a number of best practices to consider that set the right tone for mitigating risk, whether you are doing business in one or hundreds of locations around the world, says Veta Richardson, president and CEO of the Association of Corporate Counsel.
Given the barrage of pessimism surrounding the potentially market-destroying risk retention rules that have been proposed, it is understandable that collateralized loan obligation market participants are leery of new regulatory proposals generally. However, the Bad Actor Provisions of the U.S. Securities and Exchange Commission's new Rule 506 should be the least of a CLO issuer’s concerns, say attorneys with Dechert LLP.
A case involving the offering of 450 condominium hotel units at the Hard Rock Hotel is of unique importance to the resort real estate industry. Among other things, the case makes clear that if properly structured, condominium unit offerings associated with rental programs can be real estate offerings and not investment contracts subject to securities law, says Richard Davis of Greenberg Traurig LLP.
The ability to use Form S-3 for a follow-on offering is preferable to the use of Form S-1 from virtually every standpoint. But in order to utilize Form S-3, both the registrant requirements and the transaction requirements specified by the form must be met, says Michael Rave of Day Pitney LLP.
It is a good strategy for a securities class action defendant to thoroughly argue lack of falsity, even if there are better alternative grounds for dismissal, and even if the challenge to falsity is unlikely to be successful as an independent grounds for dismissal. This is for the simple reason that judges are humans — they will feel better about dismissing a case based on other grounds if you can make them feel comfortable that there was not a false statement to begin with, says Douglas Greene of Lane Powell PC.
Remember that the information on your CEO’s iPad does not exist on the iPad alone. She backed it up to her home computer, right? When she took it out of the box and started it up for the very first time, did she say “yes” to iCloud? If she did, she created yet another avenue — maybe an easier one — for opposing lawyers to follow, say Matthew Yarbrough and Todd Shadle of Yarbrough Law Group PC.
Unfortunately, the credentials normally supplied by Big Law firms in beauty contests simply do not tell in-house counsel what they really want to know. Without discounting the difficulty of obtaining helpful information from candidates for outside counsel, there is one question that may be useful for in-house counsel to pose, says Andrew Jarzyna of Ulmer & Berne LLP.