Securities

  • December 9, 2016

    Chancery Taps Grant & Eisenhofer To Lead Rouse Appraisal

    A Delaware Chancery judge on Friday picked Grant & Eisenhofer PA as lead counsel in the judicial appraisal of the $2.8 billion buyout of Rouse Properties Inc., rejecting a proposal from Ashby & Geddes PA's client to run a parallel case that he said "smacks of free riding."

  • December 9, 2016

    Ex-Cantor Fitzgerald Trader Charged With Securities Fraud

    An ex-Cantor Fitzgerald trader is facing six counts of securities fraud for allegedly charging customers inflated prices for residential mortgage-backed securities bonds and fraudulently deflating sale prices to reap extra profits, federal prosecutors announced Friday.

  • December 9, 2016

    FINRA Bars Crowdfunding Portal In 1st JOBS Act Settlement

    The Financial Industry Regulatory Authority has expelled a Virginia-based crowdfunding portal over allegations that it failed to screen for potential fraud by companies using its services, marking the agency's first settlement connected to a 2012 law that regulates online crowdfunding.

  • December 8, 2016

    UBS Dodges Fraud Suit In NY Over $500M Chinese Investment

    A New York judge on Thursday tossed Ace Decade Holdings Ltd.’s suit blaming Swiss bank UBS AG for its $500 million investment loss in a Chinese company, saying the British Virgin Islands-incorporated company's subsequent move to New York didn’t establish jurisdiction in the state.

  • December 8, 2016

    Hemispherex Investors Put Anti-Fatigue Drug Suit To Rest

    Hemispherx Biopharma Inc. shareholders have settled a consolidated Pennsylvania derivative suit alleging the company’s directors and officers misrepresented the safety and efficacy of the anti-fatigue drug Ampligen and overstated its prospects for federal approval.

  • December 8, 2016

    Forexware Can't Duck Former Exec's Breach Of Contract Suit

    A New York state judge on Thursday tossed a motion by Forexware LLC, a software company serving foreign exchange broker-dealers, to dismiss a breach of contract suit by a former executive whose companies it purchased.

  • December 8, 2016

    2nd Circ. Won't Revive ERISA Suit Over Madoff Profits

    The Second Circuit on Thursday refused to revive a suit by a New York engineers' union fund that kept nearly $33 million in fake Bernie Madoff profits, rejecting the fund’s stance that it lost potential profits over its asset manager’s failure to recommend a full withdrawal from Madoff's investments.

  • December 7, 2016

    Chipotle Directors Duck Fat-Bonuses Suit

    A Delaware Chancery Court judge tossed an investor suit alleging fiduciary duty breaches by the board of Chipotle Mexican Grill Inc., saying Wednesday that the business judgment rule covered the restaurant chain directors' award of generous stock-based incentive bonuses to executives and the board.

  • December 7, 2016

    UBS, Banco Popular Unit See $5M Investor Suit Pared

    A Manhattan federal judge on Wednesday largely pared a $5 million proposed class action alleging that UBS AG and a Banco Popular subsidiary steered older investors into risky and volatile mutual funds, finding many claims to be time-barred.

  • December 7, 2016

    CFTC Hits SocGen With $450K Penalty For Unreported Swaps

    The U.S. Commodity Futures Trading Commission on Wednesday announced that it has ordered French financial services firm Societe Generale SA to pay $450,000 for failing to properly report certain swap transactions in 2014 and 2015 due to a software error.

  • December 7, 2016

    Software Co. Honcho Can't Claim $112M In 'Wizardry' Losses

    A U.S. Tax Court judge refused Tuesday to let a software company co-founder claim some $112 million in losses attributed to “tax wizardry” structured via a transaction meant to free up his business gains without selling a lot of stock or paying much in taxes.

  • December 6, 2016

    Insider Trading Law Remains Murky After High Court Ruling

    The U.S. Supreme Court’s decision Tuesday upholding the government's insider trading case against Bassam Salman is a victory for prosecutors hampered by the Second Circuit’s Newman decision, experts said, but the justices' narrow holding won't resolve the long-standing question of who qualifies as a friend under the court's insider trading precedent.

  • December 6, 2016

    GE Share Conversion Fight Survives Bid To Toss In Del.

    A Delaware vice chancellor on Tuesday declined to toss a proposed class action alleging that General Electric Co. misled stockholders who sold their involuntarily converted shares days before the company offered an exchange for a better price, saying that the investors have standing to sue.

  • December 6, 2016

    FINRA Fines Wells Fargo Units $1M Over Reports

    Two Wells Fargo subsidiaries have agreed in a settlement on Monday to pay $1 million to end the Financial Industry Regulatory Authority’s allegations that they failed to supervise their brokers’ use of a reporting system, which led to questions of whether financial reports were actually sent to consumers.

  • December 6, 2016

    High Court Hands Prosecutors Victory On Insider Trading

    In its first insider trading case in nearly two decades, the U.S. Supreme Court on Tuesday unanimously upheld a man’s conviction for insider trading on tips from his brother-in-law, agreeing with federal prosecutors that traders can be held liable even if the insider didn’t receive a financial benefit for passing the tip as long as the trader and insider are friends or relatives.

  • December 5, 2016

    Zynga Shareholder Suit Over Directors' Biases Revived

    A shareholder of online game maker Zynga Inc. saw his derivative suit revived by the Delaware Supreme Court on Monday when a panel found several Zynga directors couldn’t impartially hear his concerns over a secondary offering before the filing of a lawsuit.

  • December 5, 2016

    Expedia Tech Pleads Guilty, Settles Insider Trading Suit

    A former Expedia and Hotwire IT technician pled guilty to securities fraud and settled a suit by the U.S. Securities and Exchange Commision against him for hacking into computers of executives to look at pre-earnings reports and using that information to make $350,000 in profits by trading on the company secrets, officials and his attorney said Monday.

  • December 5, 2016

    FINRA Fines UBS $2.5M Over Options Reporting

    UBS Securities LLC on Friday agreed to shell out $2.45 million to end the Financial Industry Regulatory Authority’s accusations that it submitted millions of inaccurate reports of unlisted options positions over a five-year period.

  • December 5, 2016

    PCAOB Fines Deloitte Brazil Record $8M For Audit Cover-Up

    The Public Company Accounting Oversight Board on Monday snagged a record $8 million fine and certain rare admissions of wrongdoing from a Brazilian unit of Deloitte, including that senior management tried to thwart a PCAOB investigation into its accounting for a Brazilian airline.

  • December 5, 2016

    SEC Hands Out $3.5M Award To 36th Whistleblower

    The U.S. Securities and Exchange Commission on Monday awarded one of its top 10 awards to a whistleblower for providing information that led to a successful enforcement action, bringing the program’s total endowment to approximately $135 million.

Expert Analysis

  • The Horrible Conflict Between Biology And Women Attorneys

    Anusia Gillespie

    Women leave law firms for many of the same reasons men do, but also face challenges including headwinds with respect to assignment delegation and social outings, as well as potential disruptions if they choose to have children. Firms can increase investment in talent management and improve retention and engagement of women attorneys, says Anusia Gillespie of Banava Consulting.

  • Interpreting The 1st Hong Kong Disclosure Obligations Ruling

    Denis Brock

    Three years after Hong Kong’s disclosure obligations for listed companies went into effect, Hong Kong’s Market Misconduct Tribunal just ruled on its first violation, finally shedding some light on how the provisions might be applied, say Denis Brock and Amanda Beattie of O'Melveny & Meyers LLP.

  • Think Twice Before Settling With An Activist

    Kai Haakon Liekefett

    Kai Haakon Liekefett and Lawrence Elbaum of Vinson & Elkins LLP explain why many companies have “buyer’s remorse” after settling with an activist, and why a proxy fight is not the only alternative.

  • How Latin America Is Stepping Up Anti-Corruption Efforts

    Morgan Miller

    For much of 2015 and 2016, barely a day went by without an anti-corruption-related headline involving Latin America, as companies operating throughout the region have and continue to become well acquainted with a growing appetite to root out corruption, say attorneys with Paul Hastings LLP.

  • Lawyer EQ: Finding Success In Every Interaction

    Judith Gordon

    American legal education relies almost exclusively on analytical thinking. But success in legal practice depends in large part upon an accurate emotional understanding of oneself and the human seated opposite us. Honing emotional intelligence skills can lead to greater success, and Judith Gordon of LeaderEsQ offers a few tools that can be implemented immediately to raise one’s emotional intelligence quotient.

  • Managing Intergenerational Differences Within Your Law Firm

    Najmeh Mahmoudjafari

    We are privileged to be part of an employment market that hosts employees from various generations. While “differences” may imply inherent conflict, intergenerational differences can actually be used to an advantage for organizations — especially law firms, say Najmeh Mahmoudjafari, founder of ImmigraTrust Law, and William Martucci of Shook Hardy & Bacon LLP.

  • 12 Things To Know About The SEC Whistleblower Program

    Jon Eisenberg

    Earlier this year, the U.S. Securities and Exchange Commission’s first chief of the whistleblower program jumped ship to a law firm that specializes in bringing whistleblower claims. The message was clear — SEC whistleblowing is a growing and lucrative area, say Jon Eisenberg and Vince Martinez of K&L Gates LLP.

  • Proxy Advisory Firms In The Regulatory Spotlight

    Bonnie A. Barsamian

    We anticipate that a new U.S. Securities and Exchange Commission will build on the dialogue and focus facilitated by its predecessor commission and consider regulation in light of growing attention on proxy advisory firms, say Bonnie Barsamian and Marc Leaf of Drinker Biddle & Reath LLP.

  • Withholding Changes For Dividend Equivalent Amounts

    Philip Gross.jpg

    Last year, the IRS issued final and temporary regulations pertaining to Section 871(m) of the U.S. Internal Revenue Code, which imposes a 30 percent U.S. withholding tax on dividend equivalent amounts paid or deemed paid on certain swaps and equity linked instruments. Funds should carefully consider the implications, say attorneys from Kleinberg Kaplan Wolff & Cohen PC.

  • 'Rep and Warranty' Insurance: Claims Study Analysis

    Mitchell L. Griffith

    Despite the rise of liability insurance in the United States, little information has been provided regarding claims under transaction liability insurance products. Mitchell Griffith of Thompson & Knight LLP and John McNally and Adam Wilhite of JLT Specialty USA discuss claims data and shed some light on the transaction liability insurance market.