Securities

  • June 24, 2016

    Ex-Stockbroker Gets Decade In Prison For Fake CD Scheme

    A former stockbroker who pled guilty to fraud charges for bilking investors through fake certificates of deposit was ordered by a Pennsylvania federal court on Thursday to pay over $3 million in restitution and serve a 10 1/2-year sentence, according to the U.S. Securities and Exchange Commission.

  • June 24, 2016

    Petrobras’ Bid To Delay Shareholder Suit Denied

    A New York federal judge on Friday denied Petroleo Brasileiro SA’s bid to pause shareholder litigation claiming the Brazilian oil giant concealed billions of dollars in bribes and kickbacks for years, as the Second Circuit reviews its class certification challenge.

  • June 24, 2016

    Biogen Escapes Investor Suit Over Growth Forecasts

    A Massachusetts federal judge has dismissed a shareholder suit alleging Biogen Inc. misled investors, finding the shareholders couldn't prove Biogen executives intentionally played down the impact of a safety issue with its main drug in rosy growth forecasts.

  • June 24, 2016

    Morgan Stanley Fined $200K For Allowing Ponzi Check Kiting

    Morgan Stanley has agreed to pay a $200,000 fine to the Financial Industry Regulatory Authority after it failed to promptly stop a client from kiting checks as part of a Ponzi scheme.

  • June 23, 2016

    SEC's Thinking Still A Mystery After Merrill Lynch Megadeal

    While the U.S. Securities and Exchange Commission secured a massive fine and a rare admission of wrongdoing from Merrill Lynch on Thursday for misusing customer cash, experts said the case shows the agency's metrics for calculating penalties are still opaque and it remains unclear exactly how the agency decides to seek an admission of guilt.

  • June 23, 2016

    Stock Promoter Gets Prison For Pump-And-Dump Scheme

    A New Jersey stock promoter was sentenced to three-and-a-half years in prison and ordered to pay $1 million for his role in a scheme to pump up the price of stock in an FBI-controlled shell company purporting to sell athletic gear and then unload the stock at artificially high prices.

  • June 23, 2016

    SEC Judge Pauses Gray Financial Case For 11th Circ. Mandate

    An in-house judge for the U.S. Securities and Exchange Commission on Thursday said he will wait for the Eleventh Circuit’s official word before reviving the agency’s case against investment firm Gray Financial Group Inc. after that appellate court voided a freeze on the proceeding.

  • June 23, 2016

    Clerical Error Spurs $24M Deal To End Caris Merger Suit

    CDx Holdings Inc. on Tuesday said it has agreed to pay $24 million to option holders of CDx’s predecessor company, Caris Life Sciences, to end a long-running merger class action that wound its way to the Delaware Supreme Court last week but still could have been revived over an alleged clerical error.

  • June 23, 2016

    1st Circ. Won't Rehear Golfing Atty's Insider Trading Case

    The First Circuit on Wednesday denied a bid by a Massachusetts defense attorney, who offered to buy a golfing buddy dinner at a ritzy Boston steakhouse in exchange for nonpublic stock information, to revisit its decision upholding his insider trading conviction.

  • June 23, 2016

    Triaxx Must Sell $542M In Defaulted RMBS, NY Judge Rules

    A Manhattan federal judge on Thursday said that a Triaxx investment vehicle must sell off roughly $542 million in residential mortgage-backed securities that have been under a certain credit rating for at least three years, pointing to a contract that requires as much.

  • June 23, 2016

    $1.6B HSBC Investor Settlement Clears First Hurdle

    An Illinois federal judge on Thursday granted preliminary approval to a $1.6 billion payout by HSBC that will wrap 14 years of litigation accusing a company predecessor of hiding fraudulent lending practices from investors.

  • June 23, 2016

    HSBC, Citi's $58M In Yen Libor Deals Get Preliminary OK

    A New York federal judge on Wednesday preliminarily approved $58 million in class settlements between investors and HSBC Holdings PLC, Citigroup and brokerage firm RP Martin Holdings Ltd., marking the first deals in an antitrust suit accusing several large financial institutions of fixing yen-denominated Libor rates.

  • June 22, 2016

    $511M RMBS Suit Against Morgan Stanley Largely Survives

    A trio of Morgan Stanley units will have to face a slew of claims in a lawsuit over allegedly defective loans underlying more than $511 million in residential mortgage-backed securities after a New York judge upheld the bulk of an investor’s claims.

  • June 22, 2016

    Broker Must Face SEC's Claims Of $15M Farm Loan Scam

    An Indianapolis federal judge on Wednesday ruled that the head of a New York brokerage must face allegations by the U.S. Securities and Exchange Commission that he aided an Indiana asset manager in misleading investors about the use of $15 million in farm loans, saying issues of fact remain in the case.

  • June 22, 2016

    Seadrill Didn't Lie About Russian Sanctions, Judge Says

    A Manhattan federal judge has tossed a consolidated class action claiming that Seadrill Ltd. misled investors with vows to preserve chunky dividend payments despite uncertainty over contracts with a Russian government-controlled oil company, saying investors hadn’t identified any deceptive statements. 

  • June 21, 2016

    Chartis Unit Gets A Win In Coverage Suit Over Ponzi Loss

    A Texas federal judge gave a win to a Chartis unit on Tuesday in a suit over the insurance giant's denial of coverage for millions of dollars lost by a manufacturer unwittingly caught up in a major Ponzi scheme, saying the manufacturer had invested via loans and so didn't “own” its money for purposes of coverage.

  • June 21, 2016

    Analogic Pays Feds $15M To End Russian Bribery Claims

    Analogic Corp., a Massachusetts-based company that makes medical and security body scanners, agreed on Tuesday to pay U.S. enforcement agencies around $15 million to settle claims that a subsidiary shifted approximately $20 million in mystery funds around the world, most of it on behalf of a Russian distributor.

  • June 21, 2016

    Ponzi Schemer Faces 19 Years As 10th Circ. Upholds Verdict

    A Tenth Circuit panel's opinion published on Monday upheld the conviction of a man who ran a Ponzi scheme that lured investors with the promise of guaranteed returns and ruled that none of his rights were violated. He now faces nearly 19 years behind bars.

  • June 21, 2016

    Ameriprise Fined For Short-Term Trades Of Closed-End Funds

    Ameriprise Financial Services Inc. will pay $100,000 to the Financial Industry Regulatory Authority following allegations that the company failed to supervise closed-end fund sales resulting in unsuitable short-term trading, according to a settlement agreement finalized on Monday.

  • June 21, 2016

    2nd Circ. Denies Harvey Newkirk's Motion For Bail

    Days away from entering federal prison, former Bryan Cave LLP transactional attorney Harvey Newkirk looked on calmly as a skeptical Second Circuit on Tuesday considered his motion for bail pending the appeal of his conviction over a fraudulent magazine acquisition bid. Late in the day his request was denied.

Expert Analysis

  • 8 Critical Lessons From Morgan Stanley Cybersecurity Case

    John Reed Stark

    What is most interesting about the U.S. Securities and Exchange Commission enforcement action against Morgan Stanley for cybersecurity lapses is that Morgan Stanley’s conduct was exemplary — the firm did everything right, says John Reed Stark, former internet enforcement chief at the SEC.

  • Calif. Court Protects Against Post-Litigation Discovery

    Jennifer A. Williams

    While California courts have entertained the notion that an insurer’s conduct during coverage litigation may be considered evidence of bad faith under extremely limited circumstances, they more consistently recognize that an insurer — like any litigant — is entitled to a fair day in court, as illustrated by a California federal court's recent decision in Genesis Insurance v. Magma Design, says Jennifer Williams at Wiley Rein LLP.

  • A Proxy Season For The Record Books

    Bruce H. Goldfarb

    When it comes to proxy contests and shareholder activism, one of the most striking changes this year is the quality and tone of the dialogue between companies and their shareholders, says Bruce Goldfarb, founder and CEO of Okapi Partners LLC.

  • How Lawyers Can Harness The Power Of Social Media

    Monica Zent

    It’s important to first decide what your personal brand is. Are you a crusader? A wry observer? A compassionate witness? Your social media presence doesn’t have to reflect the deepest aspects of your identity — it’s merely an image that you project, says Monica Zent, founder and CEO of Foxwordy Inc.

  • Fintech Innovation Needs Congressional Support

    Gordon L. Miller

    In order to promote fintech innovation in a broad and effective fashion, it may be necessary for Congress to grant one or more federal financial agencies the express authority to waive a company’s exposure, within bounds, to both private liability and regulatory enforcement, says Gordon Miller, former Federal Reserve Board counsel now with Allen & Overy LLP.

  • Conflict Minerals Regulation In EU — What We Know So Far

    Michael R. Littenberg

    Following a political understanding announced last week, the preparation for a final conflict minerals regulation in the European Union now begins. A small number of companies that are public in the United States may find that they come within the scope of the regulation, even though their business activities are not in scope for purposes of the U.S. conflict minerals rule, say attorneys with Ropes & Gray LLP.

  • From The Partner's Desk: Tips For Recent Law Grads

    Gary M. Gansle

    One of the most prevalent complaints by associates and recent law school graduates is the lack of meaningful mentoring by more seasoned attorneys. Gary Gansle, leader of Squire Patton Boggs LLP's Northern California employment law practice, offers several tips as a light that can help junior attorneys start down the right path in their career development.

  • Del. Appraisal Legislation Is A Step In Right Direction

    David N. Shine

    New legislation recently passed by the Delaware Senate may curb the cost of certain appraisal litigation. However, it does not include certain fundamental changes to the appraisal statute urged by takeover practitioners to limit abusive “appraisal arbitrage,” say attorneys with Paul Hastings LLP.

  • What's At Stake In Marblegate

    Miranda Schiller

    When the Second Circuit heard oral arguments in Marblegate Asset Management v. Education Management Corp., one might have thought from the courtroom’s overflow crowd that it was the opening argument in a mob trial. But this is a case about a bond indenture, with the Trust Indenture Act at the heart of the debate, say Miranda Schiller and Agustina Berro of Weil Gotshal & Manges LLP.

  • 'Taking My Talents To South Beach': Law Firm Version

    MarkACohen.jpg

    LeBron James has established his worth by tangible metrics. He cashed in on a free agent bonanza fueled by the NBA’s economic model that supports his regal compensation. But such is not the case when it comes to first-year associate salaries of $180,000 at certain law firms and $2,000 an hour billing rates for certain partners, says Mark A. Cohen, founder of Legal Mosaic LLC.