Fannie Mae has agreed to pay $170 million to shareholders to settle a consolidated class action alleging the federal mortgage giant misrepresented its exposure to subprime loans in the runup to the 2008 mortgage crisis, according to documents filed in New York federal court Friday.
A California federal judge on Thursday dismissed a shareholder derivative lawsuit against the top brass at JPMorgan Chase & Co. over the bank’s residential mortgage-backed securities business that led to a $13 billion settlement with the government, saying the plaintiffs haven’t properly pled claims of false statements and self-dealing.
A former mutual fund manager who pled guilty to insider trading and served as a key witness in the government’s probe of SAC Capital Advisors LP and several hedge fund managers was sentenced to two years’ probation on Friday.
The Texas Supreme Court on Friday denied a rehearing of its June decision that reversed a $7.3 million judgment and held that Texas law doesn’t recognize common-law claims for minority shareholder oppression, teeing the case up for a return to a lower appellate court.
Competing claims to a $2.7 million judgment in a securities fraud suit against Capital International Holdings Inc. and another debtor were properly put to rest when the full amount of the judgment was deposited to a federal court registry rather than collected from banks through a garnishment, the Eleventh Circuit found Thursday.
The Second Circuit on Friday vacated an eight-year prison sentence for one of the defendants in a $6 million Ponzi scheme carried out by Watermark Financial Services Group Inc. and M-One Financial Services LLC, and upheld an 11-year sentence for another defendant.
A former Bank of New York Mellon Corp. manager pled guilty on Friday to earning more than $700,000 by trading on inside tips from a business school classmate about impending acquisitions in the pharmaceutical industry.
A Texas federal judge has granted the U.S. Commodity Futures Trading Commission a $3.3 million judgment against Financial Robotics Inc. for fraudulent sales of forex products to an attorney who was convicted of a $40 million Ponzi scheme, the regulator said on Friday.
A California federal judge this week tossed a shareholder class action against a health records software provider and its high-ranking directors and officers after finding that their optimistic projections about the future of electronic medical records fell under the safe harbor provision of the Private Securities Litigation Reform Act.
A Florida federal court on Thursday granted the U.S. Commodity Futures Trading Commission's unopposed motion to enjoin the Miami-based Forex Monthly Income Fund LLC and its principals from investing, after the CFTC alleged fraudulent activity by the fund earlier this month.
The U.S. Securities and Exchange Commission has settled its case against investment manager George Levin, just two days before a Florida trial in the suit accusing him of defrauding investors by contributing millions to now-imprisoned Scott Rothstein's $1.2 billion Ponzi scheme.
The Backstreet Boys have finally put to bed their bankruptcy dispute with boy-band entrepreneur Lou Pearlman and will be given back many masters as well as some cash.
Citigroup Global Markets Inc. has reached a settlement agreement with the FDIC in a Ninth Circuit appeal alleging a number of banks spurred on Colonial Bank's failure by selling it poor-quality mortgage-backed securities, and the bank insurer said Wednesday it expects Bank of America Corp. to exit the suit shortly as well.
Disgraced Texas tycoon Robert Allen Stanford on Tuesday urged the Fifth Circuit to overturn his 110-year prison sentence for a $7 billion Ponzi scheme, arguing in an appeal in which he is representing himself that federal authorities didn't have jurisdiction over his bank.
A New York appeals court on Tuesday rebuffed a Credit Suisse Group AG subsidiary’s bid to escape a residential mortgage-backed securities lawsuit that claims the bank failed to repurchase toxic loans that cost investors $1 billion, finding the case is not time-barred.
The U.S. Securities and Exchange Commission sent high-frequency trading firms a warning shot last week when it brought its first market manipulation case against one of their own, but attorneys say the relatively slim penalty suggests the agency's case may have been more of a dud than a bombshell.
The Second Circuit on Wednesday upheld the conviction and one-year sentence of former Mayer Brown LLP partner Joseph Collins, who was charged with aiding client Refco Inc.’s $1 billion accounting fraud.
The Eleventh Circuit asked Georgia’s high court on Tuesday for help resolving a real estate trust’s appeal claiming XL Specialty Insurance Co. must pay a $4.9 million shareholder-suit settlement, including a key question involving “consent to settle” clauses in insurance agreements.
A Texas federal judge said Tuesday she will not force Halliburton Co.'s CEO and another executive to testify in a decade-old class action over a stock issuance, as long as the company officially stands behind their previously provided oral and written statements.
Former SAC Capital Advisors LP manager Mathew Martoma on Tuesday lost his bid for bail while he appeals his nine-year prison sentence and conviction for orchestrating a $275 million insider trading scheme, a New York judge ruled, finding the appeal's chances of success to be slim.
Recent congressional dissatisfaction over the settlement involving former Amaranth Advisors LLC trader Brian Hunter's alleged manipulation of the natural gas futures contracts market could ultimately increase coordination between the Federal Energy Regulatory Commission and U.S. Commodities Futures Trading Commission when jurisdictional overlap exists, say Daniel Mullen and Nathan Erickson of Fried Frank LLP.
The U.K. Court of Appeal's judgment in Smithton Ltd. v. Naggar is instructive of the English courts’ current approach to defining the role of director, as well as addressing a question that often arises in practice — whether a director of a holding company is a de facto or shadow director of its subsidiary, say David Gerber and Sonalini de Zoysa Gunasekera of Kaye Scholer LLP.
Let’s face it: Taking friends or acquaintances to Justin Timberlake concerts or golf at the Ocean Course is not how we as law firm associates are going to develop business. Our primary value comes not from out-of-office networking jaunts but from bearing a laboring oar for our partners. Which is why our best approach to business development is more likely from the inside out, says Jason Idilbi of Moore & Van Allen PLLC.
The Delaware Court of Chancery’s decision this month in the case of Rural/Metro Corp. Stockholders Litigation awarding nearly $76 million in damages against a seller’s financial adviser highlights the difficult strategic questions nonsettling defendants face by proceeding alone to trial, including whether to put on trial the conduct of the settling defendants, say attorneys with Orrick Herrington & Sutcliffe LLP.
The prosecution of Michael Coscia of Panther Energy Trading LLC is the first by the U.S. Department of Justice under the anti-spoofing provision of the Commodity Exchange Act. Given the current trends and dedication of substantial DOJ and Commodity Futures Trading Commission resources to commodities and securities fraud investigations, it would appear that more prosecutions are likely, say attorneys with Mayer Brown LLP.
Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.
The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.
Newly proposed amendments to Canada's takeover bid legislation would address long-standing concerns that the current regulatory regime tilts the playing field too far in favor of hostile bidders, says Ralph Shay of Dentons Canada LLP.
Relying on and further strengthening the import of Boilermakers Local 154 Retirement Fund v. Chevron Corp., a recent decision in a shareholder suit involving Chemed Corp. shows the power of boards to have their say as to where intracorporate litigation will take place and who will pay for it, says Celia Taylor of Sturm College of Law at the University of Denver.
"Accredited crowdfunding" platforms offer the tantalizing possibility of raising funds with the click of a button, but it is vital to consider the regulatory scheme under which the platform operates and its managerial and financial resources, among other factors, say Eliza Sporn Fromberg, counsel at Day Pitney LLP, and Norbert Mehl, CEO of Global i Ventures.