Former Goldman Sachs Group Inc. trader Fabrice Tourre was ordered Wednesday to pay $650,000 in penalties for his alleged role in a mortgage-backed securities fraud scheme that fell apart during the financial crisis.
The Financial Industry Regulatory Authority Inc. announced Wednesday that it has ordered two broker-dealer firms to pay a combined $1.275 million for failing to supervise the use of their consolidated reporting systems and retain their reports in accordance with securities laws.
A New York federal judge tossed a proposed class action Tuesday brought by Transocean Ltd. investors who claimed they were deceived about the company's safety practices when it bought fellow drilling business GlobalSantaFe Corp., finding the suit time-barred by the relevant statute of repose.
A New York federal judge on Tuesday refused to revisit his February decision tossing breach of fiduciary duty claims from a class action against bankrupt MF Global Inc.’s former top brass, ruling again that the plaintiffs had waived those claims.
The Pennsylvania Superior Court upheld a trial court decision letting law firm McNees Wallace & Nurick LLC off the hook in a case accusing the firm of committing legal malpractice in connection with All-Staffing Inc. co-owner Alfonso Sebia's sale of stock during an acquisition of the company.
DynaResource Inc. has dropped a suit in Texas state court against Goldgroup Resource Inc. alleging it suffered more than $14 million in damages when Goldgroup improperly claimed to own half of a 178,000-acre gold mining project in Mexico, Goldgroup said Tuesday.
A New York judge on Tuesday sided with Zurich American Insurance Co. in a suit by a Morgan Stanley unit claiming the insurer wrongly denied around $1.7 million in coverage for a U.S. Securities and Exchange Commission probe, finding Morgan Stanley didn’t give proper notice of its claim.
Creditors of OCZ Technology Group Inc. urged a Delaware bankruptcy judge on Monday to not approve a proposed $7.5 million settlement of a shareholder class action, saying the deal shouldn't be blessed until they've had a chance to look into all the estate's claims.
A New York federal judge on Monday entered default judgment in favor of the U.S. Securities and Exchange Commission and against two Chinese electronic companies accused of misleading investors about the use of money from public offerings, ordering the companies to pay a total of almost $33 million.
A Washington, D.C., federal judge on Monday dismissed claims from a suit brought by a Depository Trust & Clearing Corp. unit that accuses the U.S. Commodity Futures Trading Commission of making anti-competitive policy changes that benefited rivals, finding the agency's actions aren't reviewable under the Administrative Procedure Act.
A federal judge on Monday approved a consent judgment that settles U.S. Securities and Exchange Commission claims against Frank Mazzola and his two firms for $500,000, concluding a two-year case involving funds set up to buy securities in Facebook Inc. and other companies ahead of their initial public offerings.
The U.S. Supreme Court on Monday agreed to weigh in on whether its decision in American Pipe & Construction Co. v. Utah — which held that filing a putative class action stops the statute of limitations from running for would-be class members — applies equally to statutes of repose, after the Second Circuit refused to allow a group of retirement systems to intervene in a securities fraud class action.
The U.S. Supreme Court on Monday declined a convicted stock promoter's request to reconsider sentencing guidelines for securities fraud convictions so restitution payments would be based on a calculation he claims is closer to victims' actual losses.
The Securities and Exchange Commission on Friday settled fraudulent conduct charges with a lawyer representing some of the companies that took $13 million from investors by claiming they had access to Facebook Inc. and other social media stock ahead of their initial public offerings.
A Minnesota federal jury on Wednesday found an alternative energy company's CEO guilty on criminal counts including mail and wire fraud after federal authorities accused him of lying to investors in a fraud scheme that cost them between $2.5 million and $7 million.
Abbott Laboratories shareholders asked an Illinois federal judge on Thursday to bless a settlement resolving a derivative suit that alleged Abbott's directors cost the company $1.6 billion because they did nothing to stop the marketing of its anti-seizure drug Depakote for off-label uses.
The U.S. Securities and Exchange Commission on Friday barred a former attorney from association with any municipal adviser or nationally recognized statistical rating organization after he was convicted of conspiracy, mail fraud and illegal sales of unregistered securities, holding that it is in the public interest.
Former Jefferies & Co. Inc. managing director Jesse C. Litvak on Friday became the first individual to be convicted of Troubled Asset Relief Program fraud when a Connecticut jury found him guilty of a scheme to defraud customers on residential mortgage-backed securities trades.
A D.C. Circuit panel on Friday rejected the CEO of defunct American Sterling Bank’s bid to overturn a Comptroller of the Currency ban and $1 million fine for misrepresenting the bank’s capital reserves, ruling that he could not claim he lacked information about evolving regulations.
Ruling in favor of the Securities and Exchange Commission, a Michigan federal judge on Thursday ordered the former leaders of BBC Equities to pay more than $8 million in disgorgement and fines for their role in running a $50 million real estate Ponzi scheme.
Having a well-thought-out exit strategy for a portfolio company investment, particularly in a non-U.S. company, is important to the overall success of that investment. While there has been a noticeable increase in interest from non-U.S. companies in pursuing a U.S. securities exchange listing, private equity sponsors must remember that U.S. public companies are often at risk of class action lawsuits in connection with alleged violations of securities laws or fluctuations in stock price, says Derick Kauffman of Dechert LLP.
Much of last week’s argument in Halliburton v. Erica P. John Fund focused on the procedures available to defendants to rebut Basic v. Levinson's presumption of classwide reliance — which strongly suggests that if Basic survives, something needs to be done to ensure that its equally strong mandate regarding the presumption’s rebuttability is given effect, say Jen Spaziano and Allon Kedem of Skadden Arps Slate Meagher & Flom.
Scenarios that could trigger an internal investigation include a subpoena from a government agency seeking records and indicating a criminal investigation is underway for violations of insider trading, tax laws or fraud. In such cases, it is important for the company’s investigation to stay a step or two ahead. Consider the need for retaining separate counsel for certain employees and determine how to deal with third parties and former employees, say attorneys with Sheppard Mullin Richter & Hampton LLP.
One facet of the Hong Kong initial public offering process that has been considered recently in quite a bit of detail by regulators and market professionals is the use of pre-deal research reports produced by analysts at financial institutions. New regulatory guidelines raise concerns about policing analysts and the information provided to them, and one way to allay those concerns would be to ban pre-deal research altogether, says David Neuville of Cadwalader Wickersham & Taft LLP.
The economy has had a marked impact on the alternative dispute resolution industry, but much of that impact comes directly from the new dynamics between law firms and their clients. ADR providers have been keen observers of these trends and are learning to react creatively. It’s not all a bed full of roses from the ADR side, but there have been some positive changes, says Chris Poole of JAMS.
The Delaware Court of Chancery recently rejected a party’s attempt to object to the production of documents located in France on basis of the French Data Protection Act. Given the court’s reputation and influence in corporate litigation, In re Activision Blizzard Inc. Stockholder Litigation does not augur well for foreign parties hoping to resist U.S.-style discovery on basis of their country’s data privacy statute, says Pierre Grosdidier of Haynes and Boone LLP.
Cloud users must know how to use the cloud responsibly to prevent later difficulties with document production. When negotiating a cloud service agreement, users should look for certain services that will prove useful when responding to discovery requests, such as comprehensive search options, instant suspension of the auto-delete function, and preservation of metadata and embedded data, say attorneys with Sidley Austin LLP.
It is clear that the drafters of the real estate investment trust provisions in Rep. David Camp’s, R-Mich., tax reform discussion draft are not fans of the conversion of corporations to REIT status, spinoffs of REITs from operating companies, or the creation of REITs other than “traditional REITs.” The proposed provisions — intended to prevent the “erosion of the corporate tax base” — are clearly “overkill,” say attorneys with Goodwin Procter LLP.
In the year since the U.S. Supreme Court's decision in Comcast Corp. v. Behrend, nearly 200 cases have cited the ruling, but the only consensus reached is that its significance for class actions is unsettled. However, notwithstanding the lower courts’ inconsistent application of Comcast's “rigorous analysis” of damages model evidence, a few guiding principles have emerged, say Erik Snapp and Quinn Shean of Dechert LLP.
The U.S. Supreme Court has agreed to review the Sixth Circuit’s decision in Indiana State District Council of Laborers v. Omnicare Inc., which parts ways with the Second, Third and Ninth circuits and holds that “subjective falsity” is not required for opinion-based Section 11 claims. Although the circuit split is hogging all the attention, everyone seems to be overlooking the fact that the Sixth Circuit in Omnicare ignored its own precedent, says Drew Dropkin of King & Spalding LLP.