Securities

  • May 24, 2016

    Wayfair Ducks Suit Alleging Competitor Omission In IPO

    A New York federal judge on Tuesday chucked a proposed class action against online home goods retailer Wayfair that accused the private equity-backed company of failing to disclose in its $319 million initial public offering that Overstock.com was a competitor, saying it had no duty to reveal that fact.

  • May 24, 2016

    Timber Co. Can't Ax Investor Suit Over Harvesting Practices

    A Florida federal judge has denied timber company Rayonier Inc.'s bid to dodge a proposed shareholder class action accusing it of dooming stock prices by lying about maintaining sustainable forests, rejecting its argument that two trust funds that sued the harvester failed to state a claim.

  • May 24, 2016

    Facebook Co-Founder Wins Attachment Bid In $4M Debt Suit

    A New York judge on Tuesday granted a bid by Facebook Inc. co-founder Eduardo Saverin to tie the assets belonging to principals of a company linked to a securities fraud scandal to a potential judgment over the nearly $4 million Saverin says he is owed from a deal to invest in a fund that was trafficking in shares of Facebook.

  • May 24, 2016

    UK Electrical Supply Execs Get 7 Years In £79M Ponzi Scam

    Three men who used their electrical supply business to create a Ponzi scheme, bilking London investors out of nearly £80 million ($117 million), were each sentenced Tuesday to about seven years in prison, the U.K.'s Serious Fraud Office said.

  • May 24, 2016

    Ex-Vanguard Atty Can't Argue Wrongful Termination Again

    A Pennsylvania federal judge nixed a suit by former Vanguard Group Inc. tax attorney David Danon, finding Monday he could not relitigate whether his termination came in retaliation for outspoken warnings about the mutual fund giant’s purported tax fraud.

  • May 24, 2016

    Citi Shareholders Can Push $800M Suit Directly: Del. Court

    Delaware's high court ruled Tuesday that investment trusts controlled by insurance executive Arthur L. Williams and his wife Angela properly sued Citigroup Inc. directly, and did not have to proceed derivatively, on claims they lost $800 million when the bank duped them into holding shares that plunged during the financial crisis.

  • May 24, 2016

    NFL Agent Beats Suspension After Fraud Charge Tossed

    An arbitrator vacated the suspension of an NFL agent stripped of his license to represent players last year amid a fraud investigation by the FBI, saying in an undated opinion obtained by Law360 on Tuesday that the resolution of charges last month removed the basis for his suspension.

  • May 23, 2016

    Judge Won't Nix Bail Over $60M Tribal Bond Fraud Charges

    A New York federal judge on Monday refused to revoke the bail of a California man described as a career white collar criminal accused in a pair of securities fraud schemes, including a purported $60 million tribal bond scam, despite prosecutors' claims that the cumulative effect of the latest charges make him a flight risk.

  • May 23, 2016

    Banks Face More Big-Dollar Libor Deals After 2nd Circ. Loss

    Some of the world's biggest banks were dealt a major blow when the Second Circuit on Monday revived litigation alleging they rigged the London Interbank Offered Rate, and experts say that settlements could be in the offing in the decision's wake.

  • May 20, 2016

    SEC Whistleblower Award Total Rises To $10M For Past Week

    The U.S. Securities and Exchange Commission on Friday said it will jointly pay over $450,000 to a pair of whistleblowers for a tip that led the agency to launch a corporate accounting investigation, and for their assistance with the probe, bringing the past week’s award total to $10 million.

  • May 20, 2016

    Larceny Doesn't Fit $290M Securities Fraud Case, Judge Says

    A New York judge has thrown out grand larceny and stolen property charges in a case over a purported $290 million pump-and-dump stock manipulation scheme, saying the position of Manhattan prosecutors would impose “a significant and unjustified expansion of the larceny statutes.”

  • May 20, 2016

    Chelsea Shareholders Lose Suit Over Drugmaker's Sale

    The Delaware Chancery Court dismissed shareholder litigation Friday alleging Chelsea Therapeutics International Ltd.'s board acted in bad faith by omitting two projections from disclosures ahead of the drugmaker's 2014 sale, ruling the optimistic earnings forecasts were unlikely to be realized.

  • May 19, 2016

    Pro Golfer Mickelson Benefits From Post-Newman Turmoil

    Although professional golfer Phil Mickelson made nearly $1 million trading on tips from a pro gambler friend who was indicted Thursday, prosecutors and the U.S. Securities and Exchange Commission declined to charge him with insider trading, a stroke of luck attorneys attributed to the heightened standards ushered in by the Second Circuit’s Newman decision.

  • May 19, 2016

    6th Circ. Says Morgan Keegan Investors Can't Pause Clock

    The Sixth Circuit ruled on Thursday that investors had been too slow to sue Regions Financial Corp. investment advisers over allegedly dicey Morgan Keegan asset-backed mutual funds, saying federal securities laws' repose deadlines can't be paused — deepening a circuit split.

  • May 19, 2016

    $13B Salix-Valeant Merger Row Tossed In Del. Chancery

    Delaware’s Chancery Court late Thursday tossed a shareholder challenge to Salix Pharmaceuticals Ltd.’s $13.1 billion sale to Valeant Pharmaceuticals Inc., finding the two-count suit failed to support viable claims against either company.

  • May 19, 2016

    2nd Circ. Halts Wachtell Malpractice Row During NY Appeal

    The Second Circuit on Wednesday paused CVR Energy Inc.’s bid to revive its federal malpractice suit against Wachtell Lipton Rosen & Katz over the company's post-takeover bank fees, until the appeal of a similar state court action plays out in New York.

  • May 18, 2016

    JPMorgan Beats Investor Suit Alleging It Enabled Madoff

    A New York federal judge on Wednesday tossed a putative class action brought by two investors in Bernie Madoff’s Ponzi scheme who alleged JPMorgan Chase employees knew about, and ignored, the scheme, ruling the claims of securities law violations are time-barred.

  • May 18, 2016

    Lehman Brothers' Trustee Seeks OK On $677M Creditor Payout

    The court-appointed trustee overseeing the liquidation of Lehman Brothers’ failed brokerage firm sought a New York bankruptcy judge’s approval Wednesday to distribute $677 million to unsecured creditors, which he said would bump their recovery to 38 percent.

  • May 18, 2016

    Man Gets 3.5 Years, Must Pay $1.9M For Hedge Fund Fraud

    A Massachusetts man on Tuesday was sentenced to 3 1/2 years in prison and ordered to pay $1.9 million to victims of what prosecutors say was a scheme to con investors into buying into a non-existent hedge fund.

  • May 18, 2016

    Fla. Securities Atty Gets 2.5 Years For Tax Evasion Scheme

    A Boca Raton, Florida, securities attorney was sentenced to 2 1/2 years in prison and ordered to pay nearly $2 million in restitution Wednesday after he pled guilty to evading income taxes by using a shell company to hide his income, assets and liabilities.

Expert Analysis

  • 2 Things D&O Insurers Regularly Get Wrong

    Kevin M. LaCroix

    Kevin LaCroix of RT ProExec explains why the wording commonly used in the contractual liability and the professional liability exclusions in private company directors and officers insurance policies is problematic.

  • Does Mickelson Case Signal A New SEC Insider Trading Rule?

    Thomas O. Gorman

    Absent allegations that he violated the insider trading laws, there does not appear to be any reason for professional golfer Phil Mickelson to be named as a party in a recently announced insider trading case — unless the U.S. Securities and Exchange Commission is rewriting insider trading law, says Thomas Gorman, a partner at Dorsey & Whitney LLP and former senior counsel in the SEC Division of Enforcement.

  • Panama Papers: Reminders About Law Firm Cybersecurity

    Sean Doherty

    Nowhere is the attractiveness of law firms as cybercrime targets more evident than the recent Mossack Fonseca hack, believed to be the most significant data theft event in history. Firms represent a treasure trove of information and historically have had dreadful cybersecurity practices. There has been some progress, but firms can also commit to better defending their information by taking a simple, three-step approach, says Sean D... (continued)

  • Takeaways From Ceresney Speech On Private Equity

    Joshua M. Newville

    U.S. Securities and Exchange Commission Enforcement Director Andrew Ceresney recently highlighted the three primary categories of actions against private equity fund advisers, and specified certain arguments that the enforcement staff has rejected during the course of investigations. There is no question that the SEC’s enforcement resources will continue to target the industry, say attorneys with Proskauer Rose LLP.

  • 4 Considerations For Residential Mass Appraisal Valuation

    Niall MacMenamin

    Litigation involving residential real estate often requires using statistical tools that can instantaneously value many different properties, like automated valuation models. If used correctly, AVMs provide objective value estimates cheaply and quickly, but they have certain limitations that attorneys must take into account, say Niall MacMenamin and Hristina Bojadzieva at Analysis Group Inc.

  • OPINION: Sotomayor's Solution To Pro Bono Is Incomplete

    David A. Lash

    In calling for mandatory pro bono service, U.S. Supreme Court Justice Sonia Sotomayor is effectively using her bully pulpit to advance the cause of access to justice for the poor. Her courageous leadership is a clarion call to action that must be heeded. But bold as it may be, the pronouncement is incomplete, says David Lash, managing counsel for pro bono at O’Melveny & Myers LLP and a member of the Association of Pro Bono Counsel.

  • Creating Barclay Damon: Lessons From A Law Firm Merger

    John P. Langan

    Joining two firms with long histories meant not only combining cultures, philosophies and deeply rooted ways of doing business, but also combining two IT systems, two accounting systems, and two ways of handling many other administrative functions. It didn't help that the firms had different fiscal year ends, says John Langan, managing partner of Barclay Damon LLP.

  • SEC's CAT Plan And The Cost To Industry

    Lee A. Schneider

    The U.S. Securities and Exchange Commission's consolidated audit trail plan may become the most robust and complicated financial database in the world. It is important to understand the benefits of the plan, along with the technology burdens it will impose and the privacy concerns for investors, say attorneys with Debevoise & Plimpton LLP.

  • How Courts View Valuation Methods In Appraisal Litigation

    David F. Marcus

    While there are commonly accepted valuation frameworks, whether a judge will view an expert’s valuation as reliable depends critically on the details of the methodology. Economists at Cornerstone Research summarize the common critiques Delaware judges have made of various experts’ work based on a review of 15 recent opinions in M&A appraisal rights cases.

  • Reflecting On The 20th Anniversary Of BMW V. Gore

    Andrew Frey

    On May 20, 1996, the U.S. Supreme Court held that a $2 million punitive damages award imposed for a tort that caused $4,000 in economic harm was unconstitutionally excessive. In the ensuing 20 years, BMW v. Gore has proved to be a foundational case in punitive damages jurisprudence. We were fortunate enough to have played a role in this historic decision, say Mayer Brown LLP partners Andrew Frey and Evan Tager and Maserati North Am... (continued)