The Tenth Circuit on Tuesday revived a National Credit Union Administration lawsuit alleging that Barclays Capital Inc. misrepresented the quality of more than $555 million in residential mortgage-backed securities, finding that although the NCUA’s claims were filed too late, Barclays was precluded from having the suit tossed on those grounds.
A New Jersey federal judge on Monday preliminarily approved a $13 million settlement to end investors' claims that high-frequency trading house Knight Capital Group Inc. knew its internal controls were deficient that led to its $460 million one-day trading loss in 2012.
A Montana federal judge ruled Friday that New York Marine and General Insurance Co. didn't act in bad faith in its handling of an investor's claim against an accounting firm over losses tied to a DBSI Inc. real estate investment vehicle, while awarding the insurer attorneys' fees over a bid to disqualify its counsel.
The Eighth Circuit has revived claims that Associated Bank NA aided in part of a $190 million Ponzi scheme, saying the contention that Associated gave “substantial assistance” in the scheme was, in fact, adequately pled.
The U.S. Securities and Exchange Commission is set to pay its 15th whistleblower, a former company officer, between $475,000 and $575,000 for reporting "high-quality, original information" about a securities fraud, the SEC said Monday.
The Financial Crimes Enforcement Network on Friday assessed a $1.5 million civil money penalty against the First National Community Bank of Dunmore, Pennsylvania, for willfully violating the Bank Secrecy Act by ignoring red flags in a bank account held by a judge convicted of corruption, according to FinCEN.
The first stage of the U.S. Securities and Exchange Commission’s hard-fought battle against a pair of Texas tycoons came to a close Thursday when a New York federal judge imposed a nearly $300 million judgment against Sam Wyly and the estate of his late brother Charles Wyly, but a new front now opens as the agency looks to collect on the tab amid likely appeals and a bankruptcy proceeding.
The Supreme Court of Texas on Friday denied an appeal to rehear a former Exxon Mobil Corp. top executive's case against the company for stripping him of $5 million in nonvested stock rights when he joined a rival energy firm, re-confirming the court's decision granting employers more leeway in bonus plans.
Dole Food Co. Inc. can’t use Stifel Nicolaus & Co. Inc. as an expert witness in its defense of a shareholder suit accusing owner David H. Murdock of shortchanging the company in a $1.6 billion take-private deal, the Delaware Chancery Court ruled Friday, saying an expert witness must be a biological person.
The Second Circuit on Friday dismissed a putative class action that had sought to hold UBS AG responsible for investor losses after a trader went off-plan and triggered $2.3 billion in losses, finding that the plaintiffs hadn’t shown the bank had intended to deceive its shareholders.
The U.S. Securities and Exchange Commission said Friday it has reached a settlement with a Japanese broker alleged to have been involved in the $2 billion fraud scandal that hit camera and medical device maker Olympus Corp. in 2011 over exorbitant advisory fees paid on costly acquisitions, agreeing to drop the case in exchange for his withdrawal from the securities industry.
A New York federal judge on Thursday ordered former Michael’s Stores Inc. Chairman Sam Wyly and the estate of his late brother Charles Wyly Jr. to pay about $299.3 million to federal regulators for engaging in securities fraud, after the parties spent months battling over the amounts.
St. Jude Medical Inc. reached a proposed $50 million settlement in an investor suit alleging the company artificially inflated its third-quarter 2009 earnings, with class counsel asking a Minnesota federal judge Thursday to approve the resolution.
The U.S. Securities and Exchange Commission on Wednesday punished nine former McGinn Smith & Co. brokers in connection with an alleged $125 million investment scheme.
The New York federal judge overseeing Argentina's bond payback fight with hedge fund NML Capital Ltd. ordered Deutsche Bank AG and JPMorgan Chase & Co. Wednesday to give NML private information on payments regarding a new set of bonds Argentina announced for a select group of creditors.
A New York state judge has tossed CVR Energy Inc.’s malpractice claim against Wachtell Lipton Rosen & Katz stemming from $37 million in fees incurred by the company as part of Carl Icahn’s takeover, according to an order filed Wednesday, finding CVR can’t argue the firm was responsible for the financial hit.
A group of Overseas Shipholding Group investors have agreed to settle a class action lawsuit against company executives and others for allegedly hiding the $435 million tax debt that drove the tanker company to bankruptcy, according to letter filed Wednesday in New York federal court by investors’ counsel.
A disbarred lawyer who once worked as an associate at Milbank Tweed Hadley & McCloy LLP was sentenced in New York federal court Thursday to 15 months in prison for defrauding investors in a Philadelphia real estate venture.
The failed $2.9 billion Fontainebleau Resort and Casino in Las Vegas has reached a $115 million settlement with investors who say the company kept two sets of books to doctor construction costs, according to lawyers for the plaintiffs.
On Wednesday, the U.S. Supreme Court ruled that an anti-shredding provision of the Sarbanes-Oxley Act does not cover all physical evidence. Here, attorneys tell Law360 why the decision in John L. Yates v. United States of America is significant.
2014 saw the U.S. Securities and Exchange Commission again heralding that it had filed more enforcement actions than ever before. And, as always, the story is not quite so simple. However, other statistical data released by the agency provides much greater insight into where the enforcement division is focusing its attention, says Marc Fagel, partner at Gibson Dunn & Crutcher LLP and a former regional director at the SEC.
The U.S. Department of Justice has yet to extradite a single executive in the auto parts investigation who refuses to voluntarily enter the United States to face charges. As a result, foreign executives from certain countries — particularly in Asia — who refuse to plead guilty may be beyond the reach of U.S. prosecutors, say attorneys with Miller & Chevalier Chtd.
The U.S. Supreme Court’s heightened interest in the Employee Retirement Income Security Act, an increase in investigations from the U.S. Department of Labor and the dangerous ERISA fiduciary exception to attorney-client privilege are just some of the reasons why companies should have ERISA litigators on speed dial, say Nancy Ross and Brian Netter of Mayer Brown LLP.
The worst way to respond to overcriminalization is for courts artificially to narrow criminal statutes through results-oriented decisions that ignore the plain language of the law and ultimately lead to irrational results. Unfortunately, that’s exactly what the U.S. Supreme Court did last week in Yates v. United States, says Randall Eliason, a law professor and former federal prosecutor.
Two appraisal cases out of Delaware involving CKx Inc. and Ancestry.com mark an important judicial response to the recent spike in “appraisal arbitrage,” which may effectively subdue the rise of this practice. The scope of these decisions, however, should not be overstated, say attorneys with Latham & Watkins LLP.
The dismissal of a U.S. Securities and Exchange Commission action against Jordan Peixoto — alleged to have traded on material nonpublic information relating to Herbalife Ltd. — means that the validity of a novel insider trading theory and the use of administrative actions in these types of enforcement proceedings remains unsettled for now, say attorneys with Debevoise & Plimpton LLP.
In this week's ruling in Yates v. U.S., the U.S. Supreme Court reinforced the principle that the language of a statute must be analyzed in an appropriate context and, more importantly, put a damper on prosecutors’ dangerous trend toward applying certain statutes to criminalize behavior beyond what one would reasonably understand to be prohibited, says Diana Lloyd of Choate Hall & Stewart LLP.
It is clear that at least two U.S. Supreme Court justices are willing to address the issue of deference to the agency interpretation of criminal or hybrid statutes. It is less clear whether the court is interested in curbing the use of administrative adjudication to make law. Both of these trends carry particular importance for the financial services industry, say attorneys with Weiner Brodsky Kider PC.
Chief compliance office liability continues to be one of the hottest topics in the regulatory community. Two recent enforcement actions against anti-money laundering compliance officers not only highlight the issue but also offer a number of lessons for any current or prospective AMLCO, say Emily Gordy and Renée Kramer of Shulman Rogers Gandal Pordy & Ecker PA.
As indicated by top brass at the SEC Speaks conference, the U.S. Securities and Exchange Commission plans to be aggressive in bringing enforcement actions, from the investigation stage through litigation, and has set a high bar for those seeking leniency through cooperation credit. Practitioners can also expect more targeted, data-driven enforcement actions in the year to come, say attorneys with Perkins Coie LLP.