Securities

  • May 29, 2015

    Labaton On 'Quest For Ignorance' In Millennial Suit: Judge

    A New York federal judge blasted Labaton Sucharow LLP for its handling of confidential witnesses while dismissing a shareholder class action over mobile advertiser Millennial Media Inc.’s $152 million initial public offering, suggesting that attorneys were on a “quest for ignorance” when constructing their complaint.

  • May 29, 2015

    Lockheed Wins Modification Of 1976 Bribery Pact With SEC

    A Washington federal judge on Friday granted Lockheed Martin Corp.’s request that it no longer be required to notify the U.S. Securities and Exchange Commission of changes to its anti-corruption policies, tweaking a provision of a 1976 settlement the military contractor claimed was obsolete.

  • May 29, 2015

    NY Appeals Court Dismisses CDO Suit Against Credit Suisse

    A New York appeals court on Thursday dismissed a stock insurance company's fraud suit against a Credit Suisse Group unit over $396 million in allegedly toxic collateralized debt obligations the insurer guaranteed, finding the suit wasn’t timely.

  • May 29, 2015

    Texas Justices Open Door To Close-Held Corp. Derivative Suits

    The Texas Supreme Court ruled Friday that a state law does not present any clear hurdles to Lone Star State shareholders who wish to launch derivative suits against closely held corporations, affirming an appellate court’s decision to revive claims against mining outfit United Salt Corp.

  • May 28, 2015

    SEC Accuses 2 Canadians In $17M 'Pump-And-Dump' Scheme

    Two Canadian penny stock promoters have been accused in New Jersey federal court of manipulating two microcap stocks to create the false appearance of market interest, generating $17.2 million in illegal stock sale proceeds, the U.S. Securities and Exchange Commission said Thursday.

  • May 28, 2015

    Ex-Wells Fargo Analyst Settles Insider Trading Case

    A former Wells Fargo analyst has agreed to pay $75,000 to settle the U.S. Securities and Exchange Commission’s administrative charges that he engaged in insider trading by giving one of the firm’s traders early access to his research, but he won’t face an industry bar or suspension, according to documents filed Thursday.

  • May 28, 2015

    Allergan Shakes Shareholders' Off-Label Botox Case

    A California federal judge Wednesday tossed a derivative shareholder suit accusing Allergan Inc.’s board members of improperly marketing the cosmetic drug Botox for off-label uses after a voluntary dismissal by the plaintiffs, who the pharmaceutical giant argued no longer had standing following an acquisition by Actavis PLC.

  • May 28, 2015

    Chancery Court Tosses Investors' Suit Against Molycorp

    A Delaware Chancery judge on Wednesday tossed a shareholder suit accusing private equity investors in rare earth mining company Molycorp Inc. of making a personal profit by selling their own shares of the company when the company needed capital.

  • May 28, 2015

    JPMorgan To Pay $500M In Landmark MBS Class Settlement

    A New York federal judge signed off Wednesday on what is said to be the largest ever class action settlement revolving around the sale of mortgage backed securities, with JPMorgan Chase & Co. agreeing to plunk down $500 million to settle accusations arising from the sale of $17.58 billion in Bear Stearns Cos. securities.

  • May 27, 2015

    Winsome Receiver Rightly Sued Atty Under UFTA: 10th Circ.

    A lawyer who took payments from Winsome Investment Trust founder Robert J. Andres, admitted maestro of a $72 million Ponzi scheme, can be sued for the cash, the Tenth Circuit ruled on Wednesday, batting away jurisdictional challenges and affirming a Utah district court decision.

  • May 27, 2015

    Investors' $8M Five Mile Merger Settlement Gets Go-Ahead

    An Illinois federal judge on Tuesday approved an $8.25 million settlement between a class of former real estate trust shareholders and Five Mile Capital Partners LLC, ending a suit that alleged Five Mile breached its fiduciary duties when it merged with a real estate investment trust.

  • May 27, 2015

    Ex-Diebold Officers Settle SEC's Accounting Fraud Allegations

    Three former Diebold Inc. officers have settled the U.S. Securities and Exchange Commission’s fraud charges against them in Ohio federal court by agreeing to pay a total of $1.35 million and consenting to three-year industry bars, the SEC said Wednesday.

  • May 27, 2015

    NJ High Court Spells Out Defamation Damages Standard

    The New Jersey Supreme Court on Wednesday ruled that NuWave Investment Corp.'s defamation case against a finance industry investigator requires a new trial in which the jury is properly instructed in the various categories of damages as well as in the limited role of presumed damages.

  • May 27, 2015

    Kraft Investor Suits Over $45B Heinz Merger Get Consolidated

    A Virginia federal judge on Tuesday consolidated four putative shareholder class actions against Kraft Foods Group Inc. that allege its planned, $45 billion merger with H.J. Heinz Co. gives preference to Heinz, ruling the suits are nearly identical.

  • May 27, 2015

    Traders Fumble 3rd Stab At CME High-Frequency Trading Suit

    An Illinois federal judge on Tuesday blocked traders from filing a third amended complaint alleging that CME Group Inc. tilted the playing field in favor of high-frequency trading firms, saying they missed their shot at a third stab, which by now would improperly gum up the works.

  • May 26, 2015

    E&Y, American National Reach Deal Over Lehman Losses

    Ernst & Young LLP has settled allegations by American National Insurance Co. of Texas and certain of its affiliates that they lost over $21 million because of Lehman Brothers Holdings Inc.'s subprime exposure, the auditing firm told a New York federal judge Tuesday.

  • May 26, 2015

    9th Circ. Denies En Banc Rehearing For Amgen ERISA Suit

    The Ninth Circuit on Tuesday declined to rehear en banc its revival of a putative Employee Retirement Income Security Act class action against Amgen Inc., but the opinion did include a lengthy four-judge dissent on whether the court properly incorporated the U.S. Supreme Court’s Fifth Third Bancorp ruling into its decision.

  • May 26, 2015

    Apple Gets Shareholder Suit Over Poaching Deals Halted

    A shareholder derivative lawsuit accusing Apple Inc. executives of harming the company by engaging in illegal and anti-competitive anti-poaching agreements with other tech giants has been put on ice by a California federal judge while a related state court proceeding that contains certain identical issues plays out.

  • May 26, 2015

    Sterne Agee Settles With FINRA Over Laptop Privacy Breach

    The Financial Industry Regulatory Authority accepted a settlement Friday requiring Sterne Agee & Leach Inc. to pay a fine and review its security protocols after a technician left in a restroom an unencrypted laptop containing sensitive information about 352,551 clients.

  • May 26, 2015

    Supreme Court Won't Hear Investor Suit Over Nvidia Chips

    The U.S. Supreme Court on Tuesday denied a bid to revive a proposed shareholder class action alleging Nvidia Corp. hid defects in its computer graphics chip products, effectively upholding a ruling that the chipmaker hadn’t had the requisite intent to mislead investors.

Expert Analysis

  • 4 In-House Preferences For Better Outside Counsel

    Patrick H. Reilly

    The best outside counsel change their optics to think like the client. For these lawyers, client service is not just about top-notch legal work — it is about making life easier for the entire in-house team. In the words of litigation counsel at medical device company Zimmer Inc. and outside counsel at Faegre Baker Daniels LLP, here are four ways outside counsel can better serve clients.

  • Why Bylaw Solutions To Meritless M&A Suits Are Problematic

    Douglas W. Greene

    For the past several years, there has been great focus on amendment of corporate bylaws to corral and curtail shareholder challenges to mergers. There are now three main solutions afoot, but these initiatives will have unintended consequences that will leave us with a different set of problems than the ones they solved, says Douglas Greene of Lane Powell PC.

  • What Distressed Cos. Can Take Away From Quadrant V. Vertin

    Matthew B. Harvey

    The Delaware Chancery Court’s analysis in Quadrant Structured Products Co. Ltd. v. Vertin of the “irretrievable insolvency” test for creditor derivative standing provides guidance for corporations in performing solvency analysis. Vertin also provides insight into where Delaware fiduciary duty law currently stands with respect to insolvent corporations, say Eric Klinger-Wilensky and Matthew Harvey of Morris Nichols Arsht & Tunnell LLP.

  • Asset Manager Regulation — The SEC’s Road Ahead

    Dan Ryan

    As indicated by Chairwoman Mary Jo White, a proposal for enhanced data reporting requirements for investment advisers and funds will be followed by additional requirements around liquidity risk management, the use of derivatives, stress testing and transition planning, says Dan Ryan, chairman of PricewaterhouseCoopers LLP’s financial services regulatory practice.

  • Tools To Fight Securities Suits In Cross-Border M&A

    Nathan Rouse

    The potential applicability of the international comity and forum non conveniens doctrines can be particularly useful in the realm of M&A litigation, where success is often attained by gaining procedural advantages to end the litigation or at least drive down the cost of settlement, say Jim Howard and Nathan Rouse of Davis Wright Tremaine LLP.

  • SEC Focus On Administrative Proceedings: Midyear Checkup

    Sara Gilley

    Enforcement activity in the first half of 2015 indicates that the U.S. Securities and Exchange Commission is on track for another strong year of new enforcement actions filed, with the vast majority of its enforcement cases being brought as administrative proceedings. This shift could prove burdensome for financial fraud defendants, say analysts at Cornerstone Research.

  • DOL 'Best Interest' Exemption Not The Best Way To Get Sued

    Patrick C. DiCarlo

    The U.S. Department of Labor contends that the proposed best interest contract prohibited transaction exemption would allow consumers to hold fiduciary advisers accountable through a private right of action. It is not such a positive development for those who make a living by providing investment advice to plans governed by ERISA or the Internal Revenue Code, say Patrick DiCarlo and Elizabeth Wilson Vaughan of Alston & Bird LLP.

  • 1 Small Provision For Barclays, 1 Big Step For Compliance

    Mark Rosman

    Last week's Barclays PLC plea deal represents the first time that the Antitrust Division of the U.S. Department of Justice has awarded a company sentencing credit for implementing an effective compliance program after the start of an investigation, say attorneys with Wilson Sonsini Goodrich & Rosati PC.

  • Will Wall Street Embrace Overstock's Digital Securities?

    Valerie Diden Moore

    Overstock.com was the first major retailer to accept bitcoin. CEO Patrick Byrne has now set his sights on digital securities as a means to compete with — and even eliminate — traditional securities trading, says Valerie Diden Moore of Butler Snow LLP.

  • Rise Of The Small Firm Class Action Business Model

    Jessica J. Sleater

    The current class action litigation environment has spurned the evolution of the big class action firm toward a sleeker, smaller business model for plaintiffs' attorneys. Even though these new firms are small, they have already proven they can stomach risk and are successfully prosecuting actions against the country’s largest companies, say Jessica Sleater and Eric Andersen of Andersen Sleater LLC.