Securities

  • November 25, 2014

    Chancery Judge Rejects Bid To Block Tibco Buyout Vote

    A Delaware Chancery judge on Tuesday declined to delay an upcoming vote by Tibco Software Inc. shareholders on the proposed $4 billion-plus buyout by private equity firm Vista Equity Partners, finding an announcement that accidentally inflated the deal's equity value by $100 million did not affect the underlying terms.

  • November 25, 2014

    Calif. Controller Not Liable In Taxpayer Property Action

    A California judge on Tuesday threw out a proposed taxpayer class action accusing state controller John Chiang of misappropriating their unclaimed securities, insurance payouts, bank accounts and other funds, saying that Chiang is immune from liability as an individual government official.

  • November 25, 2014

    Judge Recommends $5.7M Penalty In Corporate Hijacking Suit

    A New York federal magistrate judge is recommending new civil penalties of $5.72 million against two men who prosecutors have said helped perpetrate “corporate hijackings” by fabricating business documents used in an international investment fraud and money laundering scheme.

  • November 25, 2014

    Texas Court Rejects Morgan Stanley Bid To Exit MBS Suit

    A Texas appeals court on Tuesday rebuffed Morgan Stanley's attempt at exiting a lawsuit brought by the Federal Deposit Insurance Corp. alleging the financial giant made false statements and misled investors when it underwrote bad mortgage-backed securities, finding that the appellate court had no jurisdiction.

  • November 25, 2014

    HSBC Unit Admits Registration Miscue In $12.5M SEC Pact

    HSBC’s Swiss private banking unit has reached a $12.5 million settlement with the U.S. Securities and Exchange Commission after admitting that it failed to register with the agency before providing investment advice to U.S. clients, according to a Tuesday order.

  • November 25, 2014

    Mutual Benefits CEO Hit With $645M Penalty In Fraud Case

    A Florida federal judge on Monday ordered former Mutual Benefits Corp.'s CEO to pay $645 million in restitution for masterminding an $837 million insurance investment scam, described by a federal prosecutor as among the country's worst frauds ever.

  • November 25, 2014

    BofA Escapes $56M Mortgage Bond Suit In 2nd Circ.

    The Second Circuit on Tuesday refused to revive a German bank's suit alleging Bank of America Corp. duped it into investing $56 million in shoddy mortgage bonds before the 2008 financial crisis.

  • November 24, 2014

    Fla. Arbitration Dispute Bounced Back To State Court

    A Florida state appeals court ruled Monday that the courts, not an arbitrator, should determine whether plaintiffs who claim their stockbroker showed willful misconduct in losing their money waived their right to arbitrate the dispute when they took it to court.

  • November 24, 2014

    Ex-Longtop Exec Faces $5M Penalty After Trial Loss, Atty Says

    A former Longtop Financial Technologies Ltd. executive could pay around $5 million in damages after a New York federal jury found him liable in a rare securities class action trial over the Chinese software company's accounting shenanigans, a plaintiffs' attorney said Monday.

  • November 21, 2014

    $590M LBO Settlement Filed In Error, Judge Says

    A Massachusetts federal judge on Friday vacated a set of electronic orders granting final approval to $590 million in settlements in a class action claiming Goldman Sachs Group Inc., Carlyle Group LP and several other private equity firms teamed up to keep leveraged buyout prices low, just hours after issuing a set of orders approving the settlement and a request for attorneys’ fees.

  • November 21, 2014

    Ex-Longtop Exec Found Liable In Rare Class Action Trial

    A New York federal jury on Friday found a former Longtop Financial Technologies Ltd. executive liable for recklessly making misstatements about the Chinese software company’s financial health, marking a victory for investors in a rare class action trial.

  • November 21, 2014

    Epic LBO Collusion Case Settles For $590M

    A Massachusetts federal judge on Friday granted final approval to $590 million in settlements and a $200 million attorneys' fee in a class action claiming Goldman Sachs Group Inc., Carlyle Group LP and other private equity firms teamed up to keep leveraged buyout prices low, moving the long-running suit toward completion.

  • November 20, 2014

    Kenneth Cole's $279M Going-Private Deal Survives NY Appeal

    A New York appeals court on Thursday upheld the dismissal of a shareholder suit over Kenneth Cole Productions Inc.'s $279 million go-private deal, ruling that majority shareholders' actions were shielded by the business judgment rule.

  • November 20, 2014

    Ex-PetroTiger Counsel Disbarred For Role In Bribery Scheme

    A New York state appeals court on Thursday ruled to disbar the former general counsel of PetroTiger Ltd. for a federal felony conviction stemming from his role in a scheme to bribe a Colombian official in exchange for approval of a $39 million oil services contract.

  • November 20, 2014

    Exxon Retirees Win $4M For Financial Co.'s Mismanagement

    A Financial Industry Regulatory Authority arbitration panel ordered Houston-based wealth management firm U.S. Capital Advisors LLC Monday to pay $3.8 million to 19 retired Exxon Mobil Corp. employees, who alleged the firm had mismanaged their retirement savings accounts.

  • November 20, 2014

    SEC Shakes Would-Be Dark Pool Marketplace's Suit, For Now

    The U.S. Securities and Exchange Commission on Wednesday escaped a suit by a company that wants to set up a virtual marketplace for automated dark pools, the controversial securities exchanges, as a South Dakota federal court said the company must await final SEC action on its application.

  • November 19, 2014

    Activision Brass Reach $275M Deal To End Shareholder Action

    The leaders of Activision Blizzard Inc. have agreed to a $275 million settlement of consolidated shareholder derivative and class action litigation over what investors say was a tainted $8.2 billion deal to buy back Vivendi SA's controlling stake, the game maker said Wednesday.

  • November 19, 2014

    Regions Investors Again Win Class Cert. In Stock Inflation Suit

    An Alabama federal judge on Wednesday certified for the second time a class of shareholders suing Regions Financial Corp. over alleged misrepresentations related to its 2006 acquisition of AmSouth Bancorp, following a remand from the Eleventh Circuit on the issue of price impact.

  • November 19, 2014

    Iceland Bank's Ex-CEO Sentenced For Market Manipulation

    The former chief executive of Iceland's Landsbanki, Sigurjon Arnason, was sentenced on Wednesday to 12 months in prison, with nine months suspended, for manipulating markets in the run-up to the 2008 global economic meltdown, according to multiple reports.

  • November 19, 2014

    Dow Shareholders Win Mulligan After Judge's Error

    A Delaware federal judge will reconsider a decision to dismiss a shareholder suit against Dow Chemical Co., saying Wednesday that the opinion granting dismissal contained an error concerning whether the company's annual report counted as an element of proxy materials given to shareholders before its 2012 annual meeting.

Expert Analysis

  • What Municipal Bond Investors Can Learn From Detroit

    Mark N. Berman

    It is interesting to observe that on the eve of confirmation of Detroit’s Chapter 9 plan, the city settled its disputes with certain bond insurers by giving them rights to certain real estate that, prior to the settlement, had not been part of the proposed plan. This begs the question as to how much additional property the city may have had available, and whether this property could have been used to increase unsecured creditors' r... (continued)

  • Remembering Doar: Justice As A 4-Letter Word

    Kevin J. Curnin

    John Doar ran the U.S. Justice Department's Civil Rights Division at perhaps the most chaotic and pivotal time in its history. His passing earlier this month is an occasion for lawyers everywhere to marvel at just how impactful one attorney can be. He didn’t just preside at a historic time, he calmly and coolly shaped it, says Kevin Curnin of the Association of Pro Bono Counsel.

  • Ordinary Course Of Business After An Extraordinary Event

    Neil Whoriskey

    In light of Vice Chancellor Sam Glasscock’s decision in Cooper Tire & Rubber Co. v. Apollo (Mauritius) Holdings, and in particular, the impact of an unqualified obligation to operate in the ordinary course, merger targets may seek more flexibility to respond to extraordinary events that occur following the signing of a merger agreement, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Real Estate Investing Goes High-Tech With Crowdfunding

    Mark Schonberger

    A range of new and varied companies are emerging as developers, sponsors, entrepreneurs and investors explore the forms of online real estate investing opportunities through crowdfunding. At the same time, this innovation raises questions regarding risks to market integrity, the need for investor education and the importance of sound regulation, say Mark Schonberger and David Perechocky of Goodwin Procter LLP.

  • New ESG Considerations For Private Funds

    Scott W. Naidech

    Evidence demonstrates that there is an increasing focus on environmental, social and governance issues in the private equity industry based in part on investor demands and general public pressure for increased accountability and transparency. In response, frameworks and industry standards for ESG investing are emerging, says Scott Naidech of Chadbourne & Parke LLP.

  • Differentiate Your Litigation Practice With Data Security

    Jennifer Topper

    Despite the significant tilt toward technology in how litigation is now conducted, many senior lawyers still delegate tech-related issues to e-discovery specialists or associates at their firms. This is a missed opportunity not just for client development, but also for shaping the way the firm and lawyer are seen in the eyes of corporate counsel, says legal industry business development specialist Jenn Topper.

  • Does Dodd-Frank Protect Foreign Whistleblowers?

    Matthew K. Edling

    In Liu v. Siemens, the Second Circuit upheld a ruling from the Southern District of New York, concluding that Congress did not envision the Dodd-Frank Act protecting foreign whistleblowers. Neither Liu court, however, attempted to reconcile this conclusion with the fact that Dodd-Frank governs violations of the Foreign Corrupt Practices Act — a definitively extraterritorial law, say Matthew Edling and Ben Fuchs of Cotchett Pitre & McCarthy LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • MBS Investors Entitled To Increased Bankruptcy Recoveries

    Shan A. Haider

    In addition to securities litigation, the financial crisis yielded many bankruptcy filings by parties connected to the issuance of mortgage-backed securities. MBS investors, however, have found some solace through increased recoveries in decisions reached in the Washington Mutual and Lehman Brothers bankruptcy cases, says Shan Haider of Perkins Coie LLP.

  • Dewey Partner Clawback Ruling May Hurt New York Law Firms

    Evan C. Hollander

    Unless the recent ruling in the Dewey & LeBoeuf LLP bankruptcy case is overturned on appeal or the New York Legislature amends the state’s fraudulent transfer and partnership laws, partners of New York firms will bear greater risk if their firms fail than will members of many non-New York partnerships. This risk factor might even affect decisions by prospective lateral partners about which firms to join, say attorneys with Arnold & Porter LLP.