A New York man on Friday was sentenced to over 10 years in prison for running a $26 million Ponzi scheme through a purported paving stone company, in a case that has also ensnared a former U.S. Securities and Exchange Commission attorney accused of aiding the scheme.
A Second Circuit panel Friday declined a trader’s bid to revive proposed class actions accusing the New York Stock Exchange, Nasdaq and others of breaching contracts with investors by giving high-frequency traders early access to market data, saying the claims are preempted.
The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme asked a Florida bankruptcy court Thursday to approve a $1.3 million settlement with Hutchison & Steffen LLC and its liability insurer, releasing the Las Vegas firm from a malpractice suit.
Advantage Futures LLC, its CEO and a former officer on Wednesday agreed to pay the Commodity Futures Trading Commission $1.5 million for failing to act against a customer suspected of spoofing the markets.
A Delaware Chancery judge on Wednesday approved a $24 million settlement between former Caris Life Sciences employees and Caris' successor company, ending a battle over an alleged undervaluation of the workers’ stock options in a 2011 merger.
An affiliate of Texas oil and gas company Breitling Energy Corp. saw an agreed judgment entered against it in a Texas court Wednesday on claims it was part of an $80 million fraud scheme.
A New York federal judge has issued a $3.1 million default judgment against an energy company that failed to respond to the U.S. Securities and Exchange Commission’s suit alleging the company made misrepresentations to hype its penny stock.
A New York federal judge favored currency investors in a $2 billion foreign exchange manipulation class action Tuesday, granting a motion by certain banks to dismiss antitrust claims only in part and finding sufficient evidence that the financial institutions had engaged in a conspiracy.
A Connecticut federal judge gave an early nod Tuesday to Fifth Street Asset Management’s $30 million settlement with shareholders of a fund maintained by the asset manager who claim that FSAM lied about the fund’s performance to stoke stockholder interest leading up to its initial public offering.
A New York federal judge on Tuesday declined to revive a dismissed investors’ lawsuit accusing Rupert Murdoch and other News Corp. executives of concealing a scandal over rampant phone-hacking, finding the group had not met the standard for reconsideration.
A New York judge on Tuesday approved a settlement that significantly reduces a $1.3 billion claim brought by insurer Syncora Guarantee Inc. against the Lehman Brothers bankruptcy estate over faulty residential mortgage-backed securities originating from GreenPoint Mortgage Funding Inc.
The U.S. Securities and Exchange Commission on Tuesday awarded yet another whistleblower for providing information that led to a successful enforcement action, bringing the program’s total endowment to more than $111 million.
In reaching more than $9 million in settlements with Ernst & Young on Monday, the U.S. Securities and Exchange Commission is sending a stern reminder that cozy relationships between audit partners and clients are off the table, while also demonstrating that its focus on accounting isn’t limited to the content of financial reports, experts said.
The U.S. Commodity Futures Trading Commission said Monday that Russian state-backed lender JSC VTB Bank and a U.K. subsidiary have agreed to pay $5 million to settle accusations of executing fictitious and noncompetitive trades in Russian ruble-U.S. dollar futures contracts.
A Texas federal judge transferred a suit accusing Deutsche Bank AG of improperly withholding nearly $1 million in funds from its Texas asset management partner in a doomed swap deal to New York federal court, ruling a forum selection clause in one of two governing contracts requires disputes be heard in Manhattan.
The U.S. Securities and Exchange Commission announced on Monday that Ernst & Young LLP agreed to pay a total of $9.3 million to settle separate claims that two of its audit partners got too personal with top officers at two client companies, violating auditor independence rules.
An administrative law judge for the U.S. Securities and Exchange Commission denied private equity magnate Lynn Tilton’s bid to toss claims that she defrauded investors in three distressed-debt investment funds, saying Friday that Tilton hadn’t used undisputedly factual evidence in her motion.
A Delaware Chancery judge threw out an Advanced Micro Devices Inc. investor’s challenge to CEO Lisa T. Su’s stock compensation on Friday, ruling that the board’s move to change her reward structure and bring it in line with company rules was not an “exchange” requiring stockholder approval.
The former chief executive officer of an Atlanta-based brokerage has reached a settlement with the Financial Industry Regulatory Authority that bars him from the industry over allegations he stole money from the brokerage’s clearing firm.
The U.S. Securities and Exchange Commission filed a cease-and-desist settlement agreement Wednesday with energy-focused private equity firm First Reserve Management LP for $3.5 million on charges that the group held conflicts of interest in its funds that it failed to disclose to investors, including legal fees.
Six years ago, the U.S. Supreme Court in Morrison v. National Australia Bank definitively rejected the plaintiffs bar’s request to permit foreign securities claims with tenuous U.S. connections to be litigated here. Yet, filings of U.S. securities suits against foreign companies are on track to increase for the third year in a row. It should come as no surprise that the application of Morrison continues to be ironed out, says Matth... (continued)
Given the plaintiffs bar’s heightened focus on conflict allegations against target directors premised on merger agreements, boards of target corporations, when reviewing the protections they are granting themselves, should pay attention to not only the guidance of Riverstone National, but also the arguable legacy of CVS-Caremark, says Ethan Klingsberg of Cleary Gottlieb Steen & Hamilton LLP.
With the recent amendments to Regulation A and the adoption of Regulation Crowdfunding, companies have now become more acutely focused on broadening their investor base by soliciting interest in offerings of their securities from their customers. In this article, Ze’-ev Eiger and David Lichtstein of Morrison & Foerster LLP discuss the history of direct-to-consumer offerings, current approaches and considerations for companies.
Because of Newman, prosecutors in the Southern District of New York are required to show that a tipper of inside information received a personal benefit “that is objective, consequential, and represents at least a potential gain of a pecuniary or similarly valuable nature” to trigger liability. The Sean Stewart case now helps define that standard, say attorneys with Orrick Herrington & Sutcliffe LLP.
As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.
While entities regulated by the U.S. Securities and Exchange Commission are familiar with their compliance obligations, many of them haven't gone through the inventory-mapping process that banking regulators are signaling is now needed. To serve as a useful compliance tool rather than a laundry list of rules and regulations, the obligations inventory must be tailored to the financial institution’s business and risk profile, say for... (continued)
New York's recently proposed cybersecurity regulations for financial institutions are very broad and expose senior officers and board members to all manner of penalties. One can expect that other states will follow with similar regulations, says Brian Finch, co-chairman of Pillsbury Winthrop Shaw Pittman LLP's privacy practice.
The U.S. Securities and Exchange Commission's recent complaint against RPM International and its general counsel for failure to disclose litigation loss contingencies is a reminder that the SEC continues to pursue contested matters under anti-fraud provisions that only require a showing of negligence — a lower burden than that of scienter-based charges, say Joshua Newville and Russell Kostelak of Proskauer Rose LLP.
Advances in information storage and transmission technology have made financial services companies increasingly susceptible to the misappropriation or theft of critical proprietary assets. With the click of a mouse, rogue employees from the C-suite to the mailroom can download and disseminate hundreds of thousands of documents, lines of computer code, and other data containing a company’s most prized trade secrets. Mark Sidoti and ... (continued)
The U.S. Commodity Futures Trading Commission’s extensive new recovery and resolution planning guidance for central counterparty clearinghouses goes materially beyond comparable bank guidance. Planning under the new rules holds the potential to unearth the need for CCPs to hold more capital or liquidity, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.