Securities

  • August 29, 2014

    Carlyle Group To Pay $115M To Settle PE Collusion Row

    Carlyle Group LP has agreed to pay about $115 million to settle a long-running proposed class action brought against it and several other private equity firms for allegedly teaming up to depress prices in leveraged buyouts leading up to the financial crisis, according to media reports on Friday.

  • August 29, 2014

    Exxon Ruling Gives Employers More Leeway In Bonus Plans

    The Texas Supreme Court on Friday upheld an Exxon Mobil Corp. plan that stripped a top executive of $5 million in nonvested stock rights when he joined a rival energy firm, paving the way for more employers to use incentive plans to keep top talent in place without running afoul of the state's noncompete laws.

  • August 29, 2014

    Ex-Heartland Exec Beats SEC Insider Trading Suit

    A Wisconsin federal judge dismissed an insider trading case Friday brought against a former investment firm executive, three years after ruling in favor of the Securities and Exchange Commission, on grounds that the agency's arguments before appellate court had not been raised in district court.

  • August 29, 2014

    Ex-Mutual Benefits CEO Gets 20 Years For $837M Fraud

    Ailing former Mutual Benefits Corp. CEO Joel Steinger received a 20-year sentence Friday in Miami federal court for masterminding an $837 million insurance investment scam that the prosecutor said ranks among the country's worst frauds, alongside Bernie Madoff's and Scott Rothstein's Ponzi schemes.

  • August 29, 2014

    ALJ Says SEC Must Cough Up Docs In Wedbush Action

    The administrative law judge overseeing the U.S. Securities and Exchange Commission's case against Wedbush Securities Inc. and two company officials denied the SEC's request to withhold 200,000 pages of documents from the respondents, saying Friday that the argument the documents are irrelevant falls flat.

  • August 29, 2014

    BofA Works Out $447M Countrywide MBS Row With Insurer

    Bank of America Corp.’s mortgage lending unit reached a deal Thursday to end a lawsuit over an insurer's $447 million purchase of mortgage-backed securities from Countrywide Financial Corp., according to filings in California federal court.

  • August 28, 2014

    SynQor Shareholder Suit Nixed Over Buyout Deal

    A Delaware Chancery judge on Wednesday tossed a putative class action by SynQor Inc. shareholders who claimed senior management's buyout deal shortchanged minority stockholders of the power conversion company, ruling the transaction was an appropriate exercise of business judgment.

  • August 28, 2014

    Dallas Tech Execs To Pay SEC $675K For Revenue Inflation

    Two executives at a Dallas-based information technology company have agreed to pay the U.S. Securities and Exchange Commission $675,000 to settle claims they mischaracterized a deal with an equipment manufacturer in order to inflate their company’s reported revenue, the SEC said Thursday.

  • August 28, 2014

    Ex-Barclays Rep Gets SEC's 'Credibility' Filing Axed

    A U.S. Securities and Exchange Commission judge won't consider a filing by SEC enforcement attorneys purporting to show discrepancies in the testimony of a former Barclays Capital Inc. bond trader accused of a fraudulent "parking" scheme, ruling the filing includes legal argument and belonged in the attorneys' post-hearing brief.

  • August 28, 2014

    Halliburton Case Returns To District Court For 'Price Test'

    The Fifth Circuit on Thursday ordered the landmark securities class action against Halliburton Co. back to the Texas district court now that the U.S. Supreme Court has rejected its attempt to quash the claim but gave the energy giant the power to challenge the impact of its alleged misstatements on its share price.

  • August 28, 2014

    DOL Take On SOX Getting Fed. Court Deference, Lawyers Say

    Employers will have a tougher time getting Sarbanes-Oxley Act whistleblower claims thrown out because of a string of federal court rulings — including one involving Fannie Mae — that have deferred to the U.S. Department of Labor's worker-friendly Sylvester v. Parexel ruling from 2011, lawyers say.

  • August 28, 2014

    BofA's Japanese Brokerage Must Pay $140M To Takefuji

    A Japanese court ordered Bank of America Corp.'s Merrill Lynch Japan Securities Co. and others to pay more than 14.5 billion yen ($140 million) in damages to failed credit company Takefuji Corp., now TFK, over losses it suffered in a bond transaction with the brokerage, TFK said Tuesday.

  • August 27, 2014

    PwC Stuck With $1B MF Global Euro Debt Malpractice Suit

    A New York federal judge on Wednesday paved the way for the MF Global Holdings Ltd. bankruptcy administrator to take a $1 billion malpractice suit against longtime auditor PricewaterhouseCoopers LLP to trial, ruling it isn't barred by MF Global's liquidation plan.

  • August 27, 2014

    9th Circ. Keeps SEC's $10M Win Against Ex-Brookstreet CEO

    The Ninth Circuit on Wednesday refused to reverse a $10 million securities fraud ruling against Brookstreet Securities Corp.’s former CEO, deciding the U.S. Securities and Exchange Commission could hold him liable for the actions of brokers he hired who sold risky investments.

  • August 27, 2014

    2nd Circ. Says No Bias In Fuel Cell Fraudster's Trial

    The Second Circuit on Wednesday affirmed a New York man's conviction for scamming $485,000 from investors who were told they were investing in the assets of a bankrupt fuel cell company, saying alleged government misconduct did not “permeate” the trial and was mostly harmless.

  • August 26, 2014

    Proskauer, Greenberg Traurig Duck $18M Facebook Fraud Suit

    A New York judge on Tuesday freed Proskauer Rose LLP and Greenberg Trauring LLP from an $18.2 million suit brought by investors allegedly duped into buying bogus shares of pre-IPO Facebook Inc., ruling the suit did not closely tie the firms to the fraud.

  • August 26, 2014

    Nasdaq's SEC Docs Shielded In Facebook IPO MDL

    A New York federal judge said it won’t force Nasdaq OMX Group Inc. to produce documents it provided to the U.S. Securities and Exchange Commission in an investigation surrounding Facebook Inc.’s $16 billion initial public offering, ruling Tuesday that Nasdaq’s immunity is currently on appeal.

  • August 26, 2014

    Bitcoin Again Found Subject To Securities Laws In Scam Suit

    A Texas federal judge on Tuesday reconsidered but refused to reverse his year-old ruling that Internet-traded bitcoin is a form of currency subject to federal securities laws, preserving the United States’ claims accusing the founder of Bitcoin Savings & Trust of running a Ponzi scheme.

  • August 26, 2014

    2nd Circ. Won't Rehear Pemex's Tossed $160M Bribery Suit

    The Second Circuit on Monday declined to grant a panel rehearing to Petroleos Mexicanos and Pemex-Refinacion over the court's dismissal of a $160 million lawsuit alleging Siemens AG and SK Engineering & Construction Co. Ltd. bribed Mexican government officials to secure a refinery construction contract.

  • August 26, 2014

    Burkle Drops Bid For New Morgans Hotel Board Election

    Billionaire Ron Burkle on Tuesday voluntarily dismissed his lawsuit against OTK Associates LLC that accused the investment firm of tainting a Morgans Hotel Group shareholder election by issuing misleading proxy statements, apparently ending a more than year-long legal feud among several parties.

Expert Analysis

  • 5 Reasons Large Companies Are Turning To Boutique Firms

    David M. Levine

    The departure of attorneys from large firms is a trend that has increased as a result of the Great Recession and its aftermath, and boutique firm partners who previously worked at large firms understand the potential large-firm pitfalls, say attorneys with Levine Kellogg Lehman Schneider & Grossman LLP.

  • High Court Should Review Scope Of Crime-Fraud Exception

    Matthew D. Lee

    Given the significant differences among the circuits in examining the crime-fraud exception, and the Third Circuit’s recent erosion of the attorney-client privilege, U.S. Supreme Court review is necessary to ensure the consistent treatment of litigants and to protect the privilege, say attorneys with Blank Rome LLP.

  • 2nd Circ. Has Made Morrison Standard Even More Arbitrary

    J. Robert Brown Jr.

    The Second Circuit was appropriately concerned with the implications of the Section 10(b) test set forth by the U.S. Supreme Court in Morrison v. National Australia Bank. But in ParkCentral Global Hub Ltd. v. Porsche Automobile Holdings, the court developed a test only used to deny the availability of Rule 10b-5, says J. Robert Brown Jr. of Sturm College of Law at the University of Denver.

  • Del.’s Adoption Of Garner — And Practical Ways To Respond

    Bruce A. Ericson

    A Delaware Supreme Court decision in a Wal-Mart shareholder suit connected to alleged bribery may breathe new life into the Garner doctrine and serves as a reminder of the fragility of the attorney-client privilege, say Bruce Ericson and Dorothy Kaslow of Pillsbury Winthrop Shaw Pittman LLP.

  • Should Bank Directors’ Fiduciary Duties Be Expanded?

    Kevin M. LaCroix

    A recent speech by a Federal Reserve Board governor has once again raised the issue of whether bank boards should face “broadened” fiduciary duties, but creating a liability regime that would encourage further litigation and expand the potential liabilities of bank directors would accomplish little, says Kevin LaCroix of RT ProExec.

  • From The Book Of Jargon: Accelerated Share Repurchase

    In this short video — the latest installment from the "Book of Jargon" — Latham & Watkins LLP partner Rafal Gawlowski defines "accelerated share repurchase."

  • Russia's Commitment To Int'l Law Will Be Tested By Yukos

    Emmanuel Gaillard

    Whether the Russian Federation complies with the Permanent Court of Arbitration's final award — $50 billion — for its destruction of Yukos Oil Company will demonstrate the extent of the country's commitment to honoring international obligations and the rule of law, say Emmanuel Gaillard and Yas Banifatemi of Shearman & Sterling LLP.

  • Corp. Governance Politics: Much Ado About Symbolic Change

    Edward B. Rock

    The rhetoric used by shareholder activists on all sides should be taken with a large pinch of salt — most issues described as momentous generally are not — and these symbolic battles may divert attention from more meaningful reform, say professors at the New York University School of Law and the University of Pennsylvania Law School.

  • 4th Circ. RJR Pension Case Could Change ERISA Landscape

    Myron D. Rumeld

    If the Fourth Circuit's reasoning in Tatum v. RJR Pension Investment Committee is adopted elsewhere the case could substantially impact the future conduct of fiduciary breach litigation as well as plan practices in administering stock funds, say Myron Rumeld and Russell Hirschhorn of Proskauer Rose LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.