Securities

  • April 17, 2015

    3 Takeaways For Activists From 3rd Circ. Wal-Mart Ruling

    The Third Circuit's ruling against a Wal-Mart Inc. shareholder that tried to force the retail giant's board to tighten oversight on sales of firearms and other potentially offensive products struck down activist shareholders' hopes that a precedential decision was on the horizon concerning what could be considered "ordinary business activity." Here, Law360 looks at three takeaways from the Third Circuit's decision.

  • April 17, 2015

    McDermott Can't Get Antioch Malpractice Suit Going Again

    An Ohio federal judge refused Friday to restart a paused malpractice suit against McDermott Will & Emery LLP over the firm's advice to former scrapbooking giant Antioch Co. LLC on employee stock payouts, despite the firm's insistence that no settlement is possible and that a Sixth Circuit ruling could add a year to the litigation.

  • April 17, 2015

    Canadian High Court Squashes HIV Drug Securities Suit

    The Supreme Court of Canada on Friday granted an appeal to pharmaceutical company Theratechnologies Inc., halting class action proceedings against the drug manufacturer and individual defendants accusing them of misleading investors about the side effects of a new drug aimed at reducing excess abdominal fat in HIV patients.

  • April 17, 2015

    High-Frequency Trader Must Face 'Spoofing' Charges

    An Illinois federal judge on Thursday denied a motion to dismiss “spoofing” claims against a high-frequency commodities futures trader, saying the market veteran’s intent to cancel the large-volume orders he placed distinguished his trade strategy from other lawful trading practices.

  • April 16, 2015

    SEC Seeks $1M From Ponzi Scheme Feeder Fund Manager

    The U.S. Securities and Exchange Commission asked a Florida federal judge Wednesday to order former investment manager Frank Preve to pay $1 million for his role in running the largest feeder funds for Scott Rothstein's $1.2 billion Ponzi scheme.

  • April 16, 2015

    Wells Fargo Found In Breach Of 2010 Mortgage Deal Terms

    A California federal judge on Wednesday found that Wells Fargo & Co. had violated a provision of a class action settlement it struck in 2010, ruling that the bank hadn’t properly gauged homeowners’ risk of default when deciding whether to grant mortgage relief.

  • April 16, 2015

    Boston Investment Adviser Hit With $48M Arbitration Award

    A suburban Philadelphia husband-and-wife pair of investors who allege that Boston-based investment adviser Family Endowment Partners LP gave them grossly negligent and unsuitable investment recommendations won a $48,456,61 arbitration award, which included treble damages and attorneys’ fees.

  • April 16, 2015

    Judge Largely Finds For Money Manager In SEC Fraud Case

    A U.S. Securities and Exchange Commission administrative law judge ruled Thursday that private equity manager David J. Montanino violated the Investment Advisor Act by deceiving clients but cleared him of more serious Securities Act and Exchange Act fraud allegations and declined to bar Montanino from finance.

  • April 16, 2015

    AIG Brass Can’t Dodge NY's Relentless Fraud Suit

    A New York state appeals court on Thursday refused to toss New York Attorney General Eric Schneiderman’s civil charges against former American International Group Inc. CEO Maurice “Hank” Greenberg over allegedly fraudulent transactions, ruling the state’s disgorgement claim was legally viable.

  • April 16, 2015

    NY Courts Can Decide Brazil Investment Battle, Ruling Says

    A New York appellate court ruled Tuesday that the state courts have personal jurisdiction over a case involving a compensation claim stemming from contracts that established a foreign-investment program, finding that the cause of action arose from those agreements, which were negotiated and executed in-state.

  • April 16, 2015

    BofA Reaches Settlement In Forex Class Action

    Bank of America Corp. on Thursday became the third global bank to reach a settlement in an antitrust class action alleging that it was part of a conspiracy to rig the approximately $5 trillion-per-day foreign exchange market, attorneys for the plaintiffs announced.

  • April 15, 2015

    Millennium Will Pay SEC $76M To Settle Ponzi Scheme Suit

    Millennium Bank agreed to pay $75.5 million to resolve claims brought by the U.S. Securities and Exchange Commission in connection with a $130 million Ponzi scheme that bilked investors out of more than $75 million, the parties told a Texas federal judge on Wednesday.

  • April 15, 2015

    MF Global Trustee’s $480M General Creditor Payout OK'd

    A New York federal judge on Wednesday allowed the trustee winding down MF Global Inc. to return more than $480 million to unsecured creditors of the failed broker-dealer, a spokesman for the trustee confirmed to Law360.

  • April 15, 2015

    Atty In NFLer's Stock Scheme Loses Insurance Defense Row

    A California judge held Wednesday that Axis Insurance Co. had no obligation to cover the criminal and civil defense of attorney Mitchell J. Stein over his role in a stock scheme run with ex-NFL player Willie Gault, four months after Stein’s conviction earned 17 years in federal prison.

  • April 15, 2015

    Robbins Geller Seeks Lead In InvenSense Shareholder Suit

    Plaintiffs in a consolidated class action brought by InvenSense Inc. investors accusing the motion detection company of deceitfully hyping its earnings potential have agreed to hand the lead to Robbins Geller Rudman & Dowd LLP, though their agreement still requires a judge's approval.

  • April 15, 2015

    BNP Paribas Sentenced Following $9B Settlement

    As part of its June plea deal with prosecutors, French bank BNP Paribas SA was sentenced on Wednesday to pay $8.97 billion for illegally conducting business in U.S.-sanctioned countries, Manhattan District Attorney Cyrus R. Vance Jr. said.

  • April 15, 2015

    RBS Didn't Mislead Investors About RMBS Exposure: 2nd Circ.

    The Second Circuit on Wednesday tossed a class action accusing the Royal Bank of Scotland PLC of lying about its exposure to residential mortgage-backed securities, finding that none of the bank’s allegedly misleading statements give rise to fraud claims.

  • April 15, 2015

    Ernst & Young Strikes $10M Deal In NY AG's Lehman Suit

    Ernst & Young LLP will pay $10 million to settle a New York state court suit alleging it helped the now-defunct Lehman Brothers Holdings Inc. cook its books in the runup to the firm's collapse in 2008, New York Attorney General Eric. T. Schneiderman said Wednesday.

  • April 15, 2015

    2nd Circ. Revives FGIC's $900M Claims Against Putnam

    A federal judge was wrong to dismiss Federal Guaranty Insurance Co.’s suit claiming it lost $900 million due to Putnam Advisory Co. LLC’s decision to allow a hedge fund to manage a collateralized debt obligation the fund was shorting, the Second Circuit ruled Wednesday.

  • April 15, 2015

    Ex-S&P Exec Loses Challenge To SEC In-House Case

    A New York federal judge on Wednesday refused to block a U.S. Securities and Exchange Commission in-house fraud proceeding against former Standard & Poor’s Ratings Services executive Barbara Duka, rejecting her argument that such cases are unconstitutional.

Expert Analysis

  • Volcker Underwriting: It’s Simple, No Need To Overanalyze

    Dan Ryan

    While all banks are in the same boat in that they have yet to fully operationalize their underwriting desk-level compliance programs, closing the implementation gap for underwriting Volcker compliance should be one of the few relatively easy wins for banks, says Dan Ryan, chairman of PricewaterhouseCoopers LLP’s financial services regulatory practice.

  • Contractor Employee Confidentiality Policies In The Spotlight

    Dave Nadler

    The government has recently stepped up its efforts to preclude government contractors from using overly restrictive confidentiality and nondisparagement clauses in employment contracts that might discourage employees from reporting waste, fraud and abuse, say attorneys with Dickstein Shapiro LLP.

  • Virginia's ‘Rocket Docket' Continues To Roar

    Robert M. Tata

    The Eastern District of Virginia ― known as the “Rocket Docket” ― had the fastest trial docket in the country in 2014, for the seventh year in a row. The median time interval to trial was 12.5 months. That’s compared to a nationwide average of 24.9 months to try a case, says Robert Tata, managing partner of Hunton & Williams LLP's Norfolk, Virginia, office.

  • Appraisal Rights Waivers After Halpin V. Riverstone

    Brian E. Krob

    The ability of common stockholders in Delaware corporations to prospectively waive appraisal rights has been taken for granted. However, Halpin v. Riverstone National Inc., a case decided in the Delaware Court of Chancery, questions the effectiveness of such a waiver, say Brian Krob and Kimberly Rovtar of Nixon Peabody LLP.

  • Why Marketplace Lenders Should Consider Securitization

    Thomas S. Gallagher

    The securitization process is complicated and does require an upfront investment, but the economic benefits to the equity owners of the platform sponsor or loan originator could be significant, say Thomas Gallagher and Richard Eckman of Pepper Hamilton LLP.

  • 2 Routes To Hourly Rates For Lawyers

    Gerald G. Knapton

    If we were developing a system to determine legal fees from a clean slate, we would price our professional services according to quality, efficiency and results — tasks and team would be agreed upon. Instead, we have an hourly system that discourages tight management, can lead to padded bills and includes time for work that may not have been necessary, says Gerald Knapton of Ropers Majeski Kohn & Bentley PC.

  • Mandatory Subordination And The Fate Of Equity Claims

    Robert L. Eisenbach III

    The Ninth Circuit’s recent decision in the case of Tristar Esperanza Properties LLC essentially says, “once a shareholder, always a shareholder,” and reminds us that Section 510(b)’s mandatory subordination rules impact entire categories of claims and make it extremely difficult to collect on any equity-like claim in bankruptcy, says Robert Eisenbach of Cooley LLP.

  • 9th Circ. Comes Around On CAFA

    Sean D. Unger

    Taken together, three recent cases demonstrate the Ninth Circuit’s new fidelity to Congress’ stated intent that Class Action Fairness Act cases be heard in federal courts. However, they also confirm that, where Congress limited CAFA, the Ninth Circuit will not ignore that limitation, say attorneys at Paul Hastings LLP.

  • The Curse Of Multijurisdiction Litigation

    Kevin M. LaCroix

    One of the more distinct litigation phenomena in recent years has been the rise of multijurisdiction litigation, particularly in connection with merger objection litigation. Recent developments in derivative litigation involving Wal-Mart and the scandal surrounding its Mexican operations show that multijurisdiction litigation is not just a problem for defendants — it can also be a serious problem for competing sets of plaintiffs la... (continued)

  • Does Regulation A-Plus Make The Grade?

    David T. Schubauer

    The success or failure of Regulation A-Plus will depend on the extent that issuers choose to use the new rules in place of other means of raising capital, whether through registered offerings or using other exemptions, particularly Rule 506, say David Schubauer and Eryca Schiffman of Bilzin Sumberg Baena Price & Axelrod LLP.