Securities

  • July 2, 2015

    7th Circ. Affirms State Law In Emmis Corporate Vote Spat

    The Seventh Circuit affirmed Thursday that Emmis Communications Corp. could assert its own corporate voting rights with shares under company control, saying an Indiana federal court had rightly applied state law that allowed the maneuver.

  • July 2, 2015

    Amarin Ducks Securities Action Over Vascepa Denial

    A New Jersey federal judge has dismissed a securities class action against biopharmaceuticals maker Amarin Corp. PLC that claimed it artificially inflated its stock price before a U.S. Food and Drug Administration panel denied expanding the use of its fish oil drug Vascepa to treat more adults with high triglycerides.

  • July 2, 2015

    Del. Justices Quash Hill International's Meeting Complaint

    The Delaware Supreme Court ruled Thursday the Chancery Court was correct when it ordered construction management firm Hill International Inc. to postpone its annual shareholder meeting on the grounds that it broke its own bylaws when it rejected a hedge fund investor’s slate of director nominees as coming in too late.

  • July 2, 2015

    Ex-Fund Manager Back To Jail For $10M In Unpaid Judgments

    A New York federal judge ordered defunct hedge fund ThinkStrategy Capital Management LLC's founder, who owes the U.S. Securities and Exchange Commission and others nearly $10 million in judgments, back to jail until he pays his debts, ruling Wednesday he did not prove an inability to pay.

  • July 1, 2015

    SEC Hasn't Shown CMBS Fraud by S&P Or Exec, Judge Says

    A U.S. Securities and Exchange Commission administrative law judge denied an early attempt to push through mortgage-backed securities fraud claims against former Standard & Poor’s ratings services executive Barbara Duka, saying Wednesday the regulator hadn’t shown that the ratings agency did anything wrong, let alone Duka.

  • July 1, 2015

    11th Circ. Denies Ex-Rothstein Atty’s Bid To Nix Conviction

    The Eleventh Circuit on Wednesday denied a bid by a former associate at jailed Ponzi schemer Scott Rothstein's law firm to overturn her conviction, ruling that evidence presented during the trial was sufficient to warrant a five-year prison sentence for her part in the $1.2 billion fraud.

  • July 1, 2015

    Oilfield Services Co. To Pay $120M To End Investor Fraud Row

    Oilfield services company Weatherford International Ltd. will pay $120 million to settle a securities class action alleging it misled investors about its financial condition leading up to a 2012 disclosure that it had overstated earnings and done the arithmetic wrong on its taxes, according to a proposed deal revealed Wednesday.

  • July 1, 2015

    5th Circ. Wants Texas Court's Take On Golf Channel Ponzi Ads

    The Fifth Circuit on Tuesday asked the Texas Supreme Court to clarify a Texas Uniform Fraudulent Transfer Act section, after the Golf Channel urged the circuit to reconsider allowing the R. Allen Stanford Ponzi scheme receiver to sue the channel for about $6 million over advertising payments.

  • July 1, 2015

    Accused 'Flash Crash' Trader, CFTC Hammer Out Injunction

    An Illinois federal judge on Tuesday approved a modified asset freeze allowing accused “flash crash” trader Navinder Singh Sarao to pay his legal fees and potentially post bail as part of a preliminary injunction deal between the trader and the U.S. Commodity Futures Trading Commission.

  • July 1, 2015

    SEC Blocks Nuclear Power Co.'s Securities After Fraud

    The U.S. Securities and Exchange Commission on Tuesday made an initial decision to revoke the registered securities of a nuclear power company just months after a former executive pled guilty to securities fraud, saying it had failed to timely file required periodic reports.

  • July 1, 2015

    Hot Topic Investors Succeed With 2nd Try At Class Settlement

    A California federal judge on Wednesday preliminarily approved a second stab at a $15 million settlement proposal to end an investor class action against Hot Topic Inc. over the company’s sale to a private equity firm, saying the investors showed that the award is a worthy return.

  • June 30, 2015

    Commerzbank Loses Fraud Claim Against Morgan Stanley

    The New York State Court of Appeals on Tuesday denied Commerzbank AG's bid to revive a fraud claim against Morgan Stanley & Co., saying that the German banker failed to show that it had been given the right to sue from the original holders of the rated notes underlying the claim.

  • June 30, 2015

    11th Circ. Sends Paulson Investor Suit To Del. High Court

    The Eleventh Circuit on Tuesday asked the Delaware Supreme Court to weigh in on whether an investor lawsuit alleging the hedge fund Paulson & Co. overlooked red flags when it acquired a stake once worth $880 million in now-defunct Sino-Forest Corp. should be considered derivative under Delaware law.

  • June 30, 2015

    Goldman Inks $7M Deal With SEC Over Options Fiasco

    Goldman Sachs Group Inc. will pay $7 million for its August 2013 misfiring of options contract executions, with the U.S. Securities and Exchange Commission saying Tuesday that the investment bank lacked proper controls to prevent erroneously priced options orders from being sent.

  • June 30, 2015

    The Biggest Securities Cases Of 2015: Midyear Report

    As 2015 hits the halfway mark, the securities bar is wading through the aftermath of the U.S. Supreme Court's Omnicare decision, the fallout from the Second Circuit's landmark Newman ruling and the ongoing challenges to the U.S. Securities and Exchange Commission's use of administrative courts.

  • June 30, 2015

    Tilton Loses Constitutional Challenge To SEC Admin Case

    A New York federal judge on Tuesday tossed distressed-debt investor Lynn Tilton's bid to block the U.S. Securities and Exchange Commission's administrative suit against her, finding that her constitutionality arguments must be raised in the administrative proceeding itself.

  • June 30, 2015

    High Court To Hear Merrill Lynch Naked Short Selling Suit

    The U.S. Supreme Court on Tuesday granted an appeal from Merrill Lynch, UBS Securities LLC and other financial institutions over a shareholder suit alleging they engaged in illegal and manipulative “naked” short selling.

  • June 29, 2015

    $1.3B Lehman, Barclays Settlement Gets Judicial Nod

    A New York bankruptcy judge approved a settlement Monday that will see Lehman Brothers Inc. pay Barclays Capital Inc. nearly $1.3 billion to resolve a dispute over the sale of the collapsed investment bank's brokerage business, saying it will benefit Lehman creditors.

  • June 29, 2015

    Ex-CEO Pleads Guilty In Forex Ponzi Scheme

    The former CEO of a foreign exchange market trading firm pled guilty on Monday to 10 counts of wire fraud for running a multimillion-dollar Ponzi scheme.

  • June 29, 2015

    High Court Nixes Miami Official's Bid For Immunity From SEC

    The U.S. Supreme Court on Monday refused to take up a former Miami budget director's request to grant him qualified immunity from a U.S. Securities and Exchange Commission fraud suit.

Expert Analysis

  • MCDC Settlements Cast Doubt On Self-Reporter Leniency

    Kit Addleman

    The recent U.S. Securities and Exchange Commission settlements with 36 municipal underwriters under the Municipalities Continuing Disclosure Cooperation Initiative provide little transparency regarding the determination of the penalty amounts. It seems incongruous that the penalty imposed on a firm that is not self-reporting would be similar or even less than the penalties imposed on some self-reporting firms, say Kit Addleman and ... (continued)

  • Cybersecurity For Brokers: 'Only The Paranoid Survive'

    Brian L. Rubin

    Commissioner Luis Aguilar’s recent cybersecurity speech emphasizes that securities firms must continually monitor how they protect themselves and their customers, and that the U.S. Securities and Exchange Commission’s future cyber-related enforcement actions will most likely involve firms that did not adequately respond to breaches or known cyberdeficiencies, say Brian Rubin and Charlie Kruly of Sutherland Asbill & Brennan LLP.

  • Best Practices For Drafting Insider Trading Policies

    Excerpt from Lexis Practice Advisor
    Manny Rivera

    An insider trading policy serves an educational function as well as a compliance function. Accordingly, those involved in drafting the policy should consider whether drafting in a “plain English” style, as opposed to a more legalistic and technical style, will better serve its objectives. These considerations may also impact the length and level of detail of the policy, says Manny Rivera of Norton Rose Fulbright LLP.

  • SEC's Warning — Fund Trustees Are Fair Game

    Jay G. Baris

    A recent U.S. Securities and Exchange Commission proceeding against a fund adviser, two independent trustees and an inside trustee reveals the SEC’s focus on the advisory contract renewal process. It is entering the boardroom and scrutinizing in great detail not only the information provided to fund trustees, but also how the trustees evaluate that information, says Jay Baris, chairman of Morrison & Foerster LLP's investment management practice.

  • The Truth About Variable Annuities

    Rhett Owens

    It seems there is no more vehemently decried investment product than the variable annuity. But the truth is that variable annuities can form part of a balanced, effective portfolio if you avoid the red flags that can spawn annuity-related litigation, says Rhett Owens of Burr & Forman LLP.

  • A Fiduciary Standard For Brokerage Firms May Be Inevitable

    Jeffrey Holik

    It seems as if the entire financial services industry has been caught up in a drama, now approaching the end of its fifth year — will regulators adopt rules requiring brokerage firms to act in the best interest of customers when offering investment advice? Our advice for brokerage firms is not to give in to the “wait and see” temptation, say attorneys with Shulman Rogers Gandal Pordy & Ecker PA.

  • A Close Look At Arizona's New Crowdfunding Law

    Kevin J. Walsh

    One of the primary drawbacks of conducting an offering under Arizona’s crowdfunding law, which takes effect on July 3, is the risk that the offering could be deemed “integrated” with another offering by the company, which could disqualify the integrated offerings from registration exemptions, says Kevin Walsh of Quarles & Brady LLP.

  • Assessing SEC's New Reporting Requirements For Funds

    Fatima S. Sulaiman

    The U.S. Securities and Exchange Commission is proposing reporting obligations for investment funds that would both broaden and deepen the nature of information the SEC receives about funds and their practices. At a minimum, the SEC staff may use the new and enhanced information in its selection of which funds to examine, say attorneys with K&L Gates LLP.

  • The Top 3 New Do’s And Don’ts For Law Firm Websites

    Stephan Roussan

    In legal marketing circles, there are few topics peddled about more than “hot tips” for improving your law firm’s website. Google it. You’ll find more advice than you could ever digest. However, there are larger trends in technology, culture and user behavior that are impacting firms in very significant ways and are not being talked about nearly as much as they should be, says Stephan Roussan, founder of consulting and web developm... (continued)

  • Proxy Access In 2015 And Beyond

    Marc S. Gerber

    While the 2015 annual meeting season is still winding down, there is no doubt that proxy access has gained considerable momentum and will remain a front-and-center corporate governance issue for the foreseeable future. For the many companies that were bystanders on the issue this proxy season, the question will be whether to act now or wait and watch for further developments, say Marc Gerber and Richard Grossman of Skadden Arps Sla... (continued)