Securities

  • March 27, 2015

    11th Circ. Nixes Venezuelan Bank’s Claim Against BofA

    The 11th Circuit on Thursday affirmed a ruling tossing a suit that accused Bank of America NA of failing to inform a Venezuelan bond company it needed certain licenses for transactions in the United States, ruling that Arbitrajes Financieros SA did not prove it had a fiduciary relationship with Bank of America.

  • March 27, 2015

    9th Circ. Clears 1 Convict In Oil Investment Scheme

    The Ninth Circuit has overturned a conviction in an alleged scheme intended to defraud investors by telling them they were investing in oil and gas leases on an Indian reservation.

  • March 27, 2015

    Spectrum Pharmaceuticals Stuck With Shareholder Suit

    A Nevada federal judge on Thursday denied a motion to dismiss a consolidated amended proposed class action against Spectrum Pharmaceuticals Inc. and individual defendants, saying that the plaintiffs sufficiently pled that the biopharma company made misleading statements in the context surrounding its cancer treatment drug.

  • March 27, 2015

    Ex-Wells Fargo Analyst To Settle SEC Insider Trading Case

    Just days before his scheduled administrative court hearing, a former Wells Fargo analyst has agreed in principle to settle the U.S. Securities and Exchange Commission’s charges he engaged in insider trading by giving one of the firm’s traders early access to his research, according to documents filed Friday.

  • March 27, 2015

    Ex-Logica Manager Gets 10 Mos. For Insider Trading

    A former manager at the multinational IT firm Logica PLC was sentenced on Friday to 10 months in prison on three counts of insider trading ahead of the company's acquisition by a Canadian rival, according to the U.K.’s markets regulator.

  • March 27, 2015

    NY Brokerage To Pay SEC $15M For Offering Fraud

    A New York-based brokerage firm agreed Friday to pay $15 million to settle the U.S. Securities and Exchange Commission’s charges it underwrote a public offering for a purported Chinese coal firm despite knowing the company’s offering materials contained false information, according to the SEC.

  • March 27, 2015

    Kinross Pays $33M To Settle Securities Suit Over African Mine

    Plaintiffs accusing Kinross Gold Corp. of misleading investors over the prospects of a West African mine it sought to acquire through a merger asked a New York federal judge on Thursday to preliminarily approve a $33 million settlement deal that would halt a proposed securities class action.

  • March 26, 2015

    Ameriprise Agrees To Pay $27.5M To Settle 401(k) Plan Suit

    Ameriprise Financial Inc. agreed to pay $27.5 million to settle a class action brought by current and former employees claiming they lost $20 million in retirement fund investments because Ameriprise favored its own underperforming subsidiary funds over investment plans with better performance records, the plaintiffs told a Minnesota federal court Thursday.

  • March 26, 2015

    Aetna Escapes Investor's Disclosure Suit

    A New York federal Judge on Thursday dismissed a lawsuit seeking multiple injunctions over Aetna Inc.’s alleged failure to fully and accurately disclose its political spending, ruling that the plaintiff didn’t adequately plead to the standards needed for injunctive relief.

  • March 26, 2015

    German Appeals Court Nixes Suit Over Axed Porsche-VW Deal

    A German appeals court on Thursday tossed a suit brought by a group of hedge funds claiming that they lost money in Porsche Automobil Holding SE after the company’s unsuccessful effort to acquire Volkswagen AG, finding that the plaintiffs failed to show that Porsche had intended to cause harm with the way it conducted the bid.

  • March 26, 2015

    UBS Settles With Client In Row Over $109M In Toxic MBS

    UBS Americas Inc. has agreed to a confidential settlement to end a lawsuit brought by Capital Ventures International alleging UBS subsidiaries sold it more than $109 million worth of risky mortgage-backed securities by billing them as safe investments, according to a stipulation filed Thursday.

  • March 26, 2015

    Former Dolan Co. Execs Sidestep Class Action Over BofA

    A Minnesota federal judge on Wednesday dismissed a proposed class action against former executives of business information provider Dolan Co. accusing them of misleading investors over the company’s deteriorating relationship with one of its largest customers, Bank of America Corp., ahead of its March 2014 bankruptcy.

  • March 26, 2015

    Presuit Missteps Free Credit Suisse From Defective Loan Spat

    A New York judge on Wednesday dismissed a suit against a Credit Suisse AG unit accused of standing behind dodgy loans, saying the loans’ trustee didn’t fulfill all the presuit hurdles in the unusual contract.

  • March 26, 2015

    Sports Drink Co. Execs Convicted Of $9M Fraud Scheme

    Two Ohio men accused of defrauding investors, including singer-songwriter Ne-Yo, of $9 million through a sports beverage company and using the money to purchase luxury items and weapons were convicted of fraud-related charges by a federal jury on Wednesday after an eight-day trial.

  • March 26, 2015

    SEC Fines 22 Broker-Dealers $6M For Failing To Register

    A group of 22 companies and individuals on Thursday agreed to pay nearly $5 million in disgorgement and $1 million in penalties to settle the U.S. Securities and Exchange Commission’s allegations that they regularly bought and sold securities on behalf of a suburban Chicago-based trading firm without registering with the agency.

  • March 25, 2015

    Jury Convicts Former UCB Exec. Of $1.1B Securities Fraud

    A California federal jury on Wednesday found the former chief operating officer of United Commercial Bank guilty of securities fraud in connection with a fraud scheme that allegedly cost the Federal Deposit Insurance Corp. and taxpayers $1.1 billion.

  • March 25, 2015

    11th Circ. Won't Revive Chinese Pharma Class Action Claims

    The Eleventh Circuit on Wednesday upheld a lower court’s dismissal of claims against the former chief financial officer of Chinese drugmaker Jiangbo Pharmaceuticals Inc. and a former auditing firm for the company from a securities class action, finding the plaintiffs’ theory of fraud was too vague.

  • March 25, 2015

    2nd Circ. Tosses Investor Suit Against Chinese Battery Co.

    The Second Circuit on Wednesday affirmed a lower court’s denial of leave to amend a complaint accusing auditors of a Chinese battery manufacturer of misleading investors by disregarding numerous “red flags” that should have alerted them to the company’s fraudulent financial statements.

  • March 25, 2015

    Zynga Can't Dodge Consolidated Suit Over IPO, Stock Dump

    A California federal judge on Wednesday rejected social-media game maker Zynga Inc.’s bid to toss a consolidated class action alleging it deliberately misled investors about Zynga’s business prospects in connection with its 2011 initial public offering and a subsequent secondary offering.

  • March 25, 2015

    Ariad, Execs Beat Fraud Suit Over Failed Leukemia Drug

    Ariad Pharmaceuticals Inc. beat a securities fraud action Wednesday after a Boston federal judge said allegations that the company and four officers hid evidence suggesting a promising leukemia drug would fail were insufficient despite a "cogent argument" from investor-plaintiffs that defendants including CEO Harvey Berger engaged in insider trading.

Expert Analysis

  • Biomet Again Underscores FCPA Risks In Life Sciences

    Gary Giampetruzzi

    While few details have been disclosed relating to the historic extension of Biomet Inc.'s deferred prosecution agreement, its warning is clear — where prosecutors question a company’s candor, cooperation or remediation of issues, the grip of formal oversight will not be easily released, say attorneys with Paul Hastings LLP.

  • A Closer Look At Madoff Victims' PwC, Citco Suit

    Christine Vargas Colmey

    A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.

  • What Experts Can Say About Inadmissible Facts During Trial

    Jason McDonell

    For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.

  • Determining ERISA Duties Post-Dudenhoeffer

    H. Douglas Hinson

    It is hard to imagine how a new, separate, distinct duty to disclose inside information about public companies under the Employee Retirement Income Security Act, along with the specter of ERISA fiduciaries becoming a new source of “material” information about public companies, would not cause more harm than good, say H. Douglas Hinson and Emily Costin of Alston & Bird LLP.

  • Lower Courts Missing The Point Of Halliburton II

    John S. Williams

    Defendants are being denied the full benefit of Halliburton II because courts are misunderstanding the import of the case, and in particular, how that decision requires a refined reading of Halliburton I and Amgen, say George Borden and John Williams of Williams & Connolly LLP.

  • Omnicare: Good News For Issuers But Questions Remain

    Brian T. Glennon

    The U.S. Supreme Court’s highly anticipated Omnicare decision provides much-needed clarification as to when a statement of opinion can give rise to Section 11 liability and, to the relief of securities issuers, when it cannot. But the court did not directly address important issues regarding how the Omnicare analysis will be applied, including when an omission may give rise to Section 11 liability, say attorneys with Latham & Watkins LLP.

  • Can I Advertise My Latest Winning Trade?

    In this brief video, Schulte Roth & Zabel LLP partners Jennifer Dunn and David Efron discuss the right and wrong ways to advertise a fund’s latest winning trade and provide an overview of the SEC’s regulations prohibiting “cherry-picking.”

  • High Court May Take On Corporate 5th Amendment Privilege

    Ramzi Abadou

    A festering but virtually unnoticed circuit split over a legal doctrine the U.S. Supreme Court first recognized early last century may provide the Roberts court with the opportunity to grant corporate persons privilege against self-incrimination for the first time in U.S. history, says Ramzi Abadou of Kahn Swick & Foti LLP.

  • Biomet’s DPA Proves An Inescapable Device

    Amy Riella

    As just the latest in a series of companies facing additional scrutiny from U.S. regulators following the settlement of an enforcement action involving violations of the Foreign Corrupt Practices Act, Biomet Inc.’s current plight highlights the risks of continuing reporting and disclosure obligations contained in most deferred and nonprosecution agreements, say Amy Riella and Carla Jordan-Detamore of Vinson & Elkins LLP.

  • Lessons From The Commerzbank Settlement

    Michael Volkov

    The headlines certainly caught everyone’s attention — Commerzbank was forking over $1.4 billion to the U.S. and New York governments for violating U.S. sanctions and Bank Secrecy Act/anti-money laundering requirements. If you take the time to read the settlement papers, the picture is not pretty. In fact, you might even think Commerzbank and a number of individuals were very lucky, says Michael Volkov of The Volkov Law Group LLC.