Hologic Inc., a maker of cancer-screening tools, acted fast on Wednesday to adopt a poison pill plan to protect itself against unwanted buyout campaigns, after activist investor Carl Icahn disclosed a sizable minority stake in the company.
JPMorgan Chase & Co. and its top executives were hit with a lawsuit in California federal court on Wednesday, by a shareholder who said that the execs harmed the company through subprime mortgage practices and that a recent $13 billion settlement showed the “true extent and seriousness of the misconduct.”
Hertz Global Holdings Inc. was hit with a putative class action in New Jersey federal court Wednesday accusing it of misleading investors about its projected financial results and the spinoff of its Advantage Rent A Car unit, allegedly resulting in them paying inflated stock prices.
The plaintiffs bar faces a new test of its resilience as the U.S. Supreme Court considers whether to overturn a 1988 ruling that ushered in a golden era for securities class actions, attorneys say.
SAC Capital Advisors LP Portfolio Manager Michael Steinberg tapped a network of corrupt financial industry professionals for information that could give him an "illegal edge" in trading technology stocks, a federal prosecutor said Wednesday at the opening of Steinberg's insider trading trial.
An ex-partner of Ropers Majeski Kohn & Bentley PC wrongly filed a securities suit in state instead of federal court then exorbitantly charged $200,000 in attorneys' fees and costs, according to a legal malpractice complaint filed Monday in New York court.
American Superconductor Corp. agreed Wednesday to pay $10 million to settle a proposed investor class action alleging the company inflated its stock price by hiding a fallout with its largest client, a Chinese wind turbine manufacturer.
A putative class of shareholders in a flash memory storage company say its stock price was artificially inflated by executives’ false promises that Facebook Inc. and Apple Inc. were still buying the company’s products, according to a suit filed Tuesday in California federal court.
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.
Aviva Life and Annuity Co. shot back Wednesday at three former Dewey & LeBoeuf LLP executives' bid to dismiss a lawsuit accusing them of lying about the now-bankrupt firm's financial predicament when it issued $35 million in senior secured notes to Aviva, arguing its securities fraud claims are solid.
Costa Inc. was hit with a proposed class action in Rhode Island federal court on Wednesday, in which a shareholder alleges the extreme-sport sunglass lens maker undervalued its worth in its $270 million sale to eyeglass giant Essilor International SA announced earlier this month.
A U.S. Securities and Exchange Commission official said Wednesday that he expects Foreign Corrupt Practices Act violations to be “increasingly fertile ground” for the agency's Dodd-Frank Act whistleblowing program and warned companies that self-reporting potential misdeeds is more important than ever.
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.
Goodwin Procter LLP partner Brian Pastuszenski scored a major victory for Bank of America Corp.'s Countrywide Financial Corp. this year when the Delaware Supreme Court ruled that the companies' merger barred an investor suit, earning him a spot on Law360's list of Securities MVPs.
Three former General Electric Co. finance executives convicted of municipal bond-related bid rigging asked the Second Circuit Tuesday to overturn their convictions, arguing that federal prosecutors brought their charges too late.
Bernard Madoff's former controller said in New York federal court Tuesday that she helped him shuffle money around his company to make phony profits, pointing the finger at other ex-Madoff employees now on trial for allegedly aiding his fraud.
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.
Barclays PLC, Citigroup Inc. and other banking giants have been hit with a new putative class action surrounding foreign exchange rate manipulation in New York federal court, this time facing allegations from a South Korean technology firm that the group's conduct caused financial damage to traders in that country.
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.
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.
The most significant advantage of being a well-known seasoned issuer involves the filing of an automatic shelf registration statement. Unlike non-WKSI filers, the registration statement and any amendments are automatically effective regardless of whether there are any outstanding regulatory comments — providing extraordinary flexibility and eliminating any potential delay, says Michael Rave of Day Pitney LLP.
Although there may be some marginal utility in the U.S. Securities and Exchange Commission's new admissions of wrongdoing policy with respect to resolving whether previously eluded insurance coverage may be available, we can expect litigation over insurance coverage to continue, says John Hughes of Edwards Wildman Palmer LLP.
While the U.S. Securities and Exchange Commission’s fiscal year closed on Sept. 30, the agency typically does not report its annual statistics until November or December. Yet trends from the first three quarters of the fiscal year provide a glimpse of what the market can expect for the full year — namely, a reduction in new enforcement actions, say David Marcus and Sara Gilley of Cornerstone Research.