Securities

  • May 6, 2016

    Covisint Pays $8M To Settle Shareholder Suit Over IPO

    Covisint Corp., the cloud-based endeavor founded by a consortium of automakers including General Motors and Ford, agreed Thursday to pay $8 million to a class of shareholders alleging in New York federal court that the company's initial public offering documents were misleading.

  • May 6, 2016

    $690M Zales-Signet Merger Survives Del. High Court Challenge

    With caveats, the Delaware Supreme Court upheld a two-part Chancery Court dismissal of class challenges to the $690 million Zales-Signet Jewelers merger, finding Friday that the lower court properly gave deference to the business judgment of the Zales board's “fully informed, uncoerced vote.”

  • May 6, 2016

    Dewey's DiCarmine Wants To Represent Himself At Retrial

    Former Dewey & LeBoeuf LLP executive director Stephen DiCarmine asked a New York judge on Friday for leave to represent himself at a coming retrial over a purported scheme to con the law firm’s financial backers out of tens of millions of dollars before it collapsed in 2012.

  • May 5, 2016

    RCS Capital's Ch. 11 Plan Needs Legal Fix, Judge Says

    The reorganization plans for bankrupt financial services firm RCS Capital Corp. and its affiliate Cetera Financial will go back to the drawing board after a Delaware bankruptcy judge declined to confirm them Friday, saying the mechanics of the plans were inconsistent with case law.

  • May 5, 2016

    Daiichi Sankyo Wins $385M From Ranbaxy's Ex-Owners

    The former owners of Ranbaxy Laboratories Ltd. said Thursday that an arbitrator has ordered them to pay 25.63 billion Indian rupees ($385 million) in damages to Japan's Daiichi Sankyo Co. Ltd., which bought a majority stake in Ranbaxy in 2008, though an appeal may be in the works.

  • May 5, 2016

    SEC Settles With Alleged Newswire Hack Conspirator

    The U.S. Securities and Exchange Commission reached a settlement agreement Wednesday with an alleged conspirator accused of participating in a $100 million scheme that traded on hacked newswire information, requiring that he agree not to violate the Securities Exchange Act and pay disgorgement of $100,000.

  • May 5, 2016

    9th Circ. Won’t Revive Bank Bailout FCA Suit

    A Ninth Circuit panel summarily refused Thursday to revive a whistleblower False Claims Act suit tossed for parroting public information, which accused American International Group Inc. and several banks of defrauding taxpayers by obtaining more than $137 billion in government bailouts for failed trades in the collateralized debt market.

  • May 5, 2016

    3rd Circ. Upholds EFH's $4B Ch. 11 Deal With Noteholders

    The Third Circuit upheld Wednesday a Delaware bankruptcy court decision that allowed Energy Future Holdings Corp. to refinance $4 billion in first-lien note debt through a tender offer, a method the indenture trustee for a faction of the notes contended ran counter to Chapter 11 rules.

  • May 4, 2016

    Vanguard Dodges Gambling Co. Investments Suit In 3rd Circ.

    The Third Circuit refused Wednesday to revive claims in a shareholders' derivative action alleging that Vanguard Group Inc. mutual funds suffered millions of dollars of losses as a result of the company's investment in illegal online gambling operations.

  • May 4, 2016

    3rd Circ. Nixes Le-Nature's Exec's Appeal Of 15-Year Sentence

    The Third Circuit on Wednesday refused to vacate the 15-year prison term handed down to a onetime executive at defunct soft drink company Le-Nature’s Inc. for orchestrating a $660 million swindle of banks and investors, saying an appeal had already been lodged and rejected.

  • May 4, 2016

    Ex-JPMorgan Trader's Dad Gets Probation For Insider Trading

    The father of a former JPMorgan investment banker accused of illegally trading on inside tips about health care industry mergers involving clients of the bank and the son's subsequent employer on Wednesday was sentenced to four years' probation.

  • May 4, 2016

    SEC, Ex-Fannie Mae CEO Experts Blocked In Subprime Suit

    A New York federal judge on Tuesday blocked several experts, including a former U.S. Securities and Exchange Commission commissioner, from testifying at trial in an SEC suit accusing the former CEO of Fannie Mae of hiding the size of the mortgage lender’s subprime portfolio.

  • May 4, 2016

    Ponzi Schemer Can't Handle Own Case, 8th Circ. Affirms

    The Eighth Circuit on Wednesday agreed with two Arkansas federal judges that a convicted Ponzi schemer had previously lost the right to represent himself at his trial by giving the court shifty answers and filing unsolicited documents full of irrelevant legal jargon.

  • May 4, 2016

    2nd Circ. Upholds Offshore Finance Guru's Fraud Conviction

    The Second Circuit on Wednesday upheld a Virgin Islands-based financial adviser's conviction on fraud charges, rejecting his argument that the jury in his case was required to find he meant to harm his clients, not just deceive them.

  • May 4, 2016

    5th Circ. OKs $6.5M DOL Win In DirecTV Installer Pension Suit

    The Fifth Circuit on Tuesday affirmed a win for the U.S. Department of Labor requiring the trustees of a DirecTV installation company’s retirement plan to pay $6.5 million for overvaluing the stock, saying the company owner put his own interests above the retirees'.

  • May 3, 2016

    FINRA Plucks Low-Hanging Fruit To Ink Record MetLife Fine

    While the Financial Industry Regulatory Authority hit a record Tuesday when MetLife Securities Inc. agreed to pay a $20 million fine for misleading customers over variable annuity replacements, experts said the fine was an easy reach for the regulator, which nonetheless found mere negligence in apparently widespread failures.

  • May 3, 2016

    Motricity Again Escapes Investor Class Action Over IPO

    The Ninth Circuit on Tuesday refused to revive a consolidated securities class action in which shareholders accused Motricity Inc., some of its directors and the banks that underwrote the mobile data service provider's initial public offering of making false statements during the IPO.

  • May 3, 2016

    Jury Convicts Last Conspirator In $278M Ponzi Scheme

    A Maryland federal jury on Monday convicted the final conspirator in a $278 million investment fraud scheme that involved selling fraudulent investment portfolios of debts purportedly owed by hospital patients, prosecutors said Tuesday.

  • May 3, 2016

    Madoff Trustee Can Depose Convicted Ex-Employees

    The trustee for Bernie Madoff's defunct securities firm on Monday got a federal bankruptcy judge's permission to ask questions about the firm's records to two longtime account managers who recently lost an appeal of their convictions for aiding Madoff's Ponzi scheme.

  • May 3, 2016

    SEC Settles Suit Over Missed Red Flags In Gaming Co. Audit

    The U.S. Securities and Exchange Commission said on Monday it has settled charges accusing Texas-based audit firm MaloneBailey LLP of ignoring red flags when auditing a Christian-themed video game maker whose CEO the SEC said falsely inflated its revenues through a circular kickback scheme.

Expert Analysis

  • The Fastest Rocket Docket For The 8th Straight Year

    Robert M. Tata

    Even complex patent and class action cases have not knocked the Eastern District of Virginia off the medal stand when it comes to remaining the fastest trial docket in the nation. Yet it can’t be overlooked that the No. 1 “Rocket Docket” also slowed down a bit this year. In his annual review, Hunton & Williams LLP partner Robert Tata looks at the numbers and what some Virginia judges have to say about them.

  • FCPA Violations By 3rd Parties: What To Watch For

    Howard O. Weissman

    International consultants, sales representatives and distributors represent a huge Foreign Corrupt Practices Act danger area for defense contractors and other companies seeking to grow their international business in high-risk countries. A couple of real-life examples illustrate how certain red flags have arisen and how they have been addressed, says Howard Weissman, counsel at Baker & McKenzie LLP and former associate general coun... (continued)

  • Securities Class Actions: American Phenomenon Goes Global

    Matthew Solum

    Countries outside the U.S. are implementing class action systems, and it is becoming increasingly important for issuers to pay attention to this evolving landscape given the increasing likelihood of parallel securities claims brought both in the United States and abroad, say attorneys with Kirkland & Ellis LLP.

  • Crowdfunding May Be Game Changer For Restaurant Industry

    Jordan R. Bernstein

    For an aspiring restaurant owner, there is nothing better than having hundreds of local investors who become your best customers, which could become a reality on May 16 under Title III of the Jumpstart Our Business Startups Act, says Jordan Bernstein at Michelman & Robinson LLP.

  • Key Considerations For PE Investors In Growing PIPE Market

    Angelo Bonvino

    As access to capital through the credit markets continues to tighten, private equity investors have begun to seek alternatives to the typical M&A investment. One option that has seen a recent, and possibly continued, revival is private investments in public equity, which can provide private equity investors an alternative avenue to put their fund capital to work, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • To Self-Report Or Not To Self-Report Under New FCPA Pilot

    Claudius O. Sokenu

    The new Foreign Corrupt Practices Act pilot program appears to give the U.S. Department of Justice less flexibility in crafting the kinds of settlements it did in VimpelCom and ZAO Hewlett-Packard. There is also some concern about whether companies would effectively be waiving their attorney-client privilege and work-product immunity protections, say attorneys with Shearman & Sterling LLP.

  • 6 Ways Lawyers Can Enhance Cross-Office Communication

    N. Courtney Hollins

    Building relationships with your partners and keeping a finger on the pulse of firmwide legal activity yields strong benefits. However, many attorneys never quite pick up on this important tool while in the trenches of practice. Courtney Hollins and Dan Ujczo at Dickinson Wright PLLC offer tips for cultivating a strong firmwide communication network.

  • Time To Stop The End-Arounds In Muni Market Regulation

    Thomas K. Potter III

    The Municipal Securities Rulemaking Board recently issued a concept release suggesting that market transparency trumps the Tower Amendment — the direct congressional prohibition against federal regulations requiring filing of information by municipal issuers. This expansion of regulatory reach by tip-toeing around statutory prohibitions disserves us all, says Thomas Potter III of Burr & Forman LLP.

  • Valeant — A Case Study In Rotten Culture And Business Ethics

    Michael Volkov

    The latest poster child for corporate malfeasance is Valeant Pharmaceuticals. The perfect enforcement storm is lining up with Congress, the U.S. Securities and Exchange Commission, and two U.S. attorney’s offices getting ready to aggressively investigate and punish the company and its principal leaders. Valeant is a textbook example of how not to structure corporate incentives and should be examined in every MBA program, says Micha... (continued)

  • Canada's Best-Interest Standard Plan And Related Concerns

    Linda Fuerst

    The Canadian Securities Administrators recently proposed a best-interest standard for investment advisers and dealers similar to the U.S. Department of Labor’s new fiduciary rule. The proposal may create legal uncertainty, and highlights concerns surrounding the application of best-interest standards in both the United States and Canada, say attorneys with Norton Rose Fulbright Canada LLP.