The Third Circuit's ruling against a Wal-Mart Inc. shareholder that tried to force the retail giant's board to tighten oversight on sales of firearms and other potentially offensive products struck down activist shareholders' hopes that a precedential decision was on the horizon concerning what could be considered "ordinary business activity." Here, Law360 looks at three takeaways from the Third Circuit's decision.
An Ohio federal judge refused Friday to restart a paused malpractice suit against McDermott Will & Emery LLP over the firm's advice to former scrapbooking giant Antioch Co. LLC on employee stock payouts, despite the firm's insistence that no settlement is possible and that a Sixth Circuit ruling could add a year to the litigation.
The Supreme Court of Canada on Friday granted an appeal to pharmaceutical company Theratechnologies Inc., halting class action proceedings against the drug manufacturer and individual defendants accusing them of misleading investors about the side effects of a new drug aimed at reducing excess abdominal fat in HIV patients.
An Illinois federal judge on Thursday denied a motion to dismiss “spoofing” claims against a high-frequency commodities futures trader, saying the market veteran’s intent to cancel the large-volume orders he placed distinguished his trade strategy from other lawful trading practices.
The U.S. Securities and Exchange Commission asked a Florida federal judge Wednesday to order former investment manager Frank Preve to pay $1 million for his role in running the largest feeder funds for Scott Rothstein's $1.2 billion Ponzi scheme.
A California federal judge on Wednesday found that Wells Fargo & Co. had violated a provision of a class action settlement it struck in 2010, ruling that the bank hadn’t properly gauged homeowners’ risk of default when deciding whether to grant mortgage relief.
A suburban Philadelphia husband-and-wife pair of investors who allege that Boston-based investment adviser Family Endowment Partners LP gave them grossly negligent and unsuitable investment recommendations won a $48,456,61 arbitration award, which included treble damages and attorneys’ fees.
A U.S. Securities and Exchange Commission administrative law judge ruled Thursday that private equity manager David J. Montanino violated the Investment Advisor Act by deceiving clients but cleared him of more serious Securities Act and Exchange Act fraud allegations and declined to bar Montanino from finance.
A New York state appeals court on Thursday refused to toss New York Attorney General Eric Schneiderman’s civil charges against former American International Group Inc. CEO Maurice “Hank” Greenberg over allegedly fraudulent transactions, ruling the state’s disgorgement claim was legally viable.
A New York appellate court ruled Tuesday that the state courts have personal jurisdiction over a case involving a compensation claim stemming from contracts that established a foreign-investment program, finding that the cause of action arose from those agreements, which were negotiated and executed in-state.
Bank of America Corp. on Thursday became the third global bank to reach a settlement in an antitrust class action alleging that it was part of a conspiracy to rig the approximately $5 trillion-per-day foreign exchange market, attorneys for the plaintiffs announced.
Millennium Bank agreed to pay $75.5 million to resolve claims brought by the U.S. Securities and Exchange Commission in connection with a $130 million Ponzi scheme that bilked investors out of more than $75 million, the parties told a Texas federal judge on Wednesday.
A New York federal judge on Wednesday allowed the trustee winding down MF Global Inc. to return more than $480 million to unsecured creditors of the failed broker-dealer, a spokesman for the trustee confirmed to Law360.
A California judge held Wednesday that Axis Insurance Co. had no obligation to cover the criminal and civil defense of attorney Mitchell J. Stein over his role in a stock scheme run with ex-NFL player Willie Gault, four months after Stein’s conviction earned 17 years in federal prison.
Plaintiffs in a consolidated class action brought by InvenSense Inc. investors accusing the motion detection company of deceitfully hyping its earnings potential have agreed to hand the lead to Robbins Geller Rudman & Dowd LLP, though their agreement still requires a judge's approval.
As part of its June plea deal with prosecutors, French bank BNP Paribas SA was sentenced on Wednesday to pay $8.97 billion for illegally conducting business in U.S.-sanctioned countries, Manhattan District Attorney Cyrus R. Vance Jr. said.
The Second Circuit on Wednesday tossed a class action accusing the Royal Bank of Scotland PLC of lying about its exposure to residential mortgage-backed securities, finding that none of the bank’s allegedly misleading statements give rise to fraud claims.
Ernst & Young LLP will pay $10 million to settle a New York state court suit alleging it helped the now-defunct Lehman Brothers Holdings Inc. cook its books in the runup to the firm's collapse in 2008, New York Attorney General Eric. T. Schneiderman said Wednesday.
A federal judge was wrong to dismiss Federal Guaranty Insurance Co.’s suit claiming it lost $900 million due to Putnam Advisory Co. LLC’s decision to allow a hedge fund to manage a collateralized debt obligation the fund was shorting, the Second Circuit ruled Wednesday.
A New York federal judge on Wednesday refused to block a U.S. Securities and Exchange Commission in-house fraud proceeding against former Standard & Poor’s Ratings Services executive Barbara Duka, rejecting her argument that such cases are unconstitutional.
While all banks are in the same boat in that they have yet to fully operationalize their underwriting desk-level compliance programs, closing the implementation gap for underwriting Volcker compliance should be one of the few relatively easy wins for banks, says Dan Ryan, chairman of PricewaterhouseCoopers LLP’s financial services regulatory practice.
The government has recently stepped up its efforts to preclude government contractors from using overly restrictive confidentiality and nondisparagement clauses in employment contracts that might discourage employees from reporting waste, fraud and abuse, say attorneys with Dickstein Shapiro LLP.
The Eastern District of Virginia ― known as the “Rocket Docket” ― had the fastest trial docket in the country in 2014, for the seventh year in a row. The median time interval to trial was 12.5 months. That’s compared to a nationwide average of 24.9 months to try a case, says Robert Tata, managing partner of Hunton & Williams LLP's Norfolk, Virginia, office.
The ability of common stockholders in Delaware corporations to prospectively waive appraisal rights has been taken for granted. However, Halpin v. Riverstone National Inc., a case decided in the Delaware Court of Chancery, questions the effectiveness of such a waiver, say Brian Krob and Kimberly Rovtar of Nixon Peabody LLP.
The securitization process is complicated and does require an upfront investment, but the economic benefits to the equity owners of the platform sponsor or loan originator could be significant, say Thomas Gallagher and Richard Eckman of Pepper Hamilton LLP.
If we were developing a system to determine legal fees from a clean slate, we would price our professional services according to quality, efficiency and results — tasks and team would be agreed upon. Instead, we have an hourly system that discourages tight management, can lead to padded bills and includes time for work that may not have been necessary, says Gerald Knapton of Ropers Majeski Kohn & Bentley PC.
The Ninth Circuit’s recent decision in the case of Tristar Esperanza Properties LLC essentially says, “once a shareholder, always a shareholder,” and reminds us that Section 510(b)’s mandatory subordination rules impact entire categories of claims and make it extremely difficult to collect on any equity-like claim in bankruptcy, says Robert Eisenbach of Cooley LLP.
Taken together, three recent cases demonstrate the Ninth Circuit’s new fidelity to Congress’ stated intent that Class Action Fairness Act cases be heard in federal courts. However, they also confirm that, where Congress limited CAFA, the Ninth Circuit will not ignore that limitation, say attorneys at Paul Hastings LLP.
One of the more distinct litigation phenomena in recent years has been the rise of multijurisdiction litigation, particularly in connection with merger objection litigation. Recent developments in derivative litigation involving Wal-Mart and the scandal surrounding its Mexican operations show that multijurisdiction litigation is not just a problem for defendants — it can also be a serious problem for competing sets of plaintiffs la... (continued)
The success or failure of Regulation A-Plus will depend on the extent that issuers choose to use the new rules in place of other means of raising capital, whether through registered offerings or using other exemptions, particularly Rule 506, say David Schubauer and Eryca Schiffman of Bilzin Sumberg Baena Price & Axelrod LLP.