The U.S. Securities and Exchange Commission’s Investor Advisory Committee asked the agency Friday to impose so-called user fees on investment advisers to help fund agency investment adviser examinations, and to impose fiduciary duties on broker-dealers who provide investment advice to retail investors.
The Texas Supreme Court refused Friday to weigh in on a family dispute over the sale of Pescor Plastics Inc., declining to review a decision finding that the company's majority shareholders had no fiduciary duty to their brother when they sold Pescor to Berry Plastics Corp. for $25 million.
The Second Circuit on Friday refused to revive a shareholder class action accusing ING Groep NV of illegally hiding its risky mortgage-backed securities, ruling that the expiration of a statute of limitations prevented the plaintiffs from bringing their claims.
A New York state appeals court on Wednesday dismissed three counts in a $100 million fraud suit over the purchase of computer hardware company eSys Technologies Pte Ltd., saying allegations that Bunge Ltd. fraudulently transferred millions of dollars were not sufficiently pled.
Three directors of Jaguar Mining Inc. on Thursday asked a New Hampshire federal judge to quash claims brought by shareholders and former executives over a botched $1 billion deal with a Chinese firm and the subsequent firing of Jaguar's CEO, arguing they weren’t on the company’s board at the time.
The Supreme Court of Texas has declined to revive a $2.5 million suit against Thompson & Knight LLP that alleged the firm helped a defunct home theater business transfer assets to a new venture and cut shareholders out of their investment in the company, according to a Friday filing.
Following a series of high-profile, high-dollar settlements with a host of federal and state agencies capped off by a $13 billion mortgage-backed securities deal, JPMorgan Chase & Co.’s top attorney said Thursday that regulators were piling on banks with duplicate enforcement actions.
Lehman Brothers Holdings Inc. on Thursday hit real estate investment company LCOR Alexandria LLC with an adversary complaint in New York bankruptcy court, seeking to recover $83 million it says LCOR owed to one of its subsidiaries upon termination of an interest rate swap transaction.
A government witness on Thursday linked an SAC Capital Advisors LP analyst who worked for portfolio manager Michael Steinberg to a "corrupt network" of tech industry-oriented insider traders, opening the first day of testimony in Steinberg's insider trading trial.
A proposed $800 million settlement between the bankruptcy trustee recovering funds for Bernard L. Madoff investors and a firm that invested nearly $2 billion in Madoff's Ponzi scheme has fallen through, according to reports Thursday.
Swiss financial services firm UBS AG has reached an immunity deal with antitrust regulators with the European Union that will keep the bank from paying additional fines for market manipulation of financial benchmark interest rates, The Wall Street Journal reported Thursday, citing people familiar with the matter.
The European Commission's investigation into whether several major banks manipulated two key interbank offered rates used as lending benchmarks is close to yielding results, the watchdog's antitrust chief said Thursday.
The former directors of a collapsed $2.5 billion hedge fund that had invested in commercial mortgage-backed securities said at a hearing in Texas federal court Thursday that the fund investors' class certification should be denied because their claims are too individualized to move forward as a group.
The U.S. Securities and Exchange Commission filed suit in New York federal court Thursday, accusing a former Marvell Technology Group Ltd. employee of tipping nonpublic information that was used in conjunction with Raj Rajaratnam's giant insider trading scheme and helped generate $680,000 in unlawful profits for Spherix Capital LLC.
The Second Circuit on Thursday upheld a lower court’s ruling that Philadelphia Indemnity Insurance Co. has no duty to cover securities brokerage David Lerner Associates Inc. in litigation over its alleged misleading of investors in a real estate investment trust, saying policy exclusions apply.
Former U.S. Sen. Ted Kaufman, D-Del., sounds off on Attorney General Eric Holder's record on financial crime and efforts to rein in speculative bank trading through the Volcker Rule.
A Washington appeals court on Thursday disbarred Matthew Kluger, a former Wilson Sonsini Goodrich & Rosati PC mergers and acquisitions attorney, following his 12-year prison sentence on charges he used his position to orchestrate a $37 million insider trading scheme.
A Texas appeals court said Thursday that a former Valerus Compression Services LP executive must arbitrate his claim that he is being unfairly deprived of his stock in the company because of a noncompete agreement he signed.
Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Thursday that his agency would soon put out a fuller description of its plans for taking apart a failed global financial institution.
The U.S. Securities and Exchange Commission on Wednesday accused two Florida-based investment advisers of failing to disclose that they received compensation for steering investors toward risky offshore funds, including some that did business with convicted Ponzi schemer Bernard Madoff.
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.
According to a recent regulatory notice, broker-dealers examined for compliance with the new suitability rule have generally had updated policies and procedures, had collected the necessary new customer information, and had trained their staff on the new requirements. Nevertheless, firms should prepare for their next examination by studying the notice, which contains, among other things, the most frequently found deficiency, say Linda Riefberg and Gregory Gnall of Fried Frank Harris Shriver & Jacobson LLP.
In a move reminiscent of recent guidance on the U.S. Foreign Corrupt Practices Act, Russia’s Supreme Court has weighed in on Russian anti-corruption law — the first such guidance in 13 years. From the perspective of multinational companies, two of the most significant aspects are likely to be guidance on what qualifies as a bribe under the Russian law and its expanded definition of an extortion defense, say attorneys with Debevoise & Plimpton LLP.
As the U.S. equity markets reach post-crisis heights, hedge fund managers with contrarian views have ample opportunity to express their conviction by taking short positions in stocks they consider overvalued. At the same time, however, the recent rebound in equity capital-raising may expose short-selling managers to risk under Rule 105, the SEC’s tool to deter manipulative shorting related to public stock offerings. This risk is more than theoretical, say Scott Budlong and Michael Mann of Richards Kibbe & Orbe LLP.