• October 8, 2015

    CalSTRS Can’t Intervene In Yen Libor-Fixing Class Action

    The California State Teachers’ Retirement System cannot intervene as a plaintiff in a class action alleging yen-denominated Libor rate-fixing by banks including Deutsche Bank, HSBC and several Japanese banks, a New York federal judge ruled Thursday.

  • October 8, 2015

    SEC Takes $1M Bite Out Of Wolverine For Alleged Info Sharing

    Chicago-based Wolverine Trading and Wolverine Asset Management have agreed to pay more than $1 million to settle allegations that the affiliates shared inside information with each other about an exchange-traded note, the U.S. Securities and Exchange Commission said Thursday.

  • October 8, 2015

    Ex-Deutsche Trader Pleads Guilty To Role In Libor Plot

    A former Deutsche Bank currency trader pled guilty Thursday in New York federal court to charges alleging an eight-year plot to manipulate the published value of the key Libor interest rate, the U.S. Department of Justice said.

  • October 8, 2015

    Star Lehman Trader's $83M Bonus Claim Mostly Rejected

    A New York bankruptcy judge nixed the bulk of former Lehman Brothers Inc. star trader Jonathan Hoffman's $83 million claim for bonuses he said he was entitled to, ruling Wednesday that Hoffman was already paid what he was owed by Barclays PLC when the bank acquired Lehman's brokerage business in 2008.

  • October 8, 2015

    NY Trading Firm Pays $1M To End SEC Spoofing Claims

    A proprietary trading firm and its co-founder have agreed to pay just over $1 million to settle U.S. Securities and Exchange Commission claims that they began to engage in “spoofing” after their complaints about market manipulation went unanswered, the agency said Thursday.

  • October 8, 2015

    BNP Paribas Fined $2.4M Over Flawed Options Reporting

    BNP Paribas’ broker-dealer unit has agreed to pay a $2.4 million fine to settle a Financial Industry Regulatory Authority investigation that alleged it failed, in millions of instances, to accurately report trading positions that regulators use to monitor for signs of market manipulation.

  • October 7, 2015

    Lumber Liquidators To Pay $13.2M In DOJ Settlement

    Lumber Liquidators will pay $13.2 million to settle a Department of Justice investigation primarily related to hardwood flooring the company imported from foreign suppliers, including Eastern Russia, that harvested more timber than permitted, the company announced Wednesday.

  • October 7, 2015

    Stanford Receiver Scores $50M Win Against Ex-Treasurer

    A Texas federal jury said the former treasury manager for R. Allen Stanford’s $7 billion Ponzi scheme is liable for $50 million in damages for breaching her fiduciary duty to Stanford’s bank, the receiver for Stanford’s victims announced Wednesday.

  • October 7, 2015

    Underwriters Duck Out Of Mexican Airline IPO Class Action

    The underwriters for Mexican airline Volaris Aviation Holding Co.’s initial public offering ducked out of a putative securities class action accusing them of failing to disclose important financial information in the runup to the IPO, according to a New York federal court filing Tuesday.

  • October 7, 2015

    News Corp. Hacking Suit Lacks NY Connection, Judge Says

    A New York federal judge explained on Wednesday that he dismissed investors’ suit accusing Rupert Murdoch and other News Corp. executives of concealing a scandal over rampant phone-hacking because the court lacked jurisdiction over the foreign defendants.

  • October 7, 2015

    FINRA Bans Firm, CEO Over Cancer Drug Kickback Scheme

    The Financial Industry Regulatory Authority said Wednesday that it ousted New York-based Halcyon Cabot Partners Ltd. and two of its executives from the securities industry over allegations of widespread fraud, kickbacks and other violations, including a scheme involving a cancer drug development company.

  • October 6, 2015

    Ex-JPMorgan Execs Near Deal With SEC In Pay-To-Play Suit

    The U.S. Securities and Exchange Commission has reached a settlement with two former JPMorgan Securities directors it claims were part of an $8 million pay-to-play scheme to land underwriting funding from county officials, according to an order from an Alabama federal judge on Tuesday

  • October 6, 2015

    US Fire Freed From $10M Madoff Coverage On Appeal

    A New York appellate court on Tuesday freed U.S. Fire Insurance Co. from having to cover about $10 million that affiliates of a family investment office sunk into Bernard L. Madoff's Ponzi scheme, agreeing with the insurer that an exclusion in the relevant policy bars coverage for losses tied to Madoff's activities as a securities broker.

  • October 5, 2015

    High Court Won't Hear $24M Laundering Forfeiture Appeal

    The U.S. Supreme Court will leave standing the Fifth Circuit’s decision that U.S. Tours and Remittances and its law firm cannot recover funds that were forfeited as part of a $24 million money-laundering prosecution against the company’s owner, denying on Monday a petition for a writ of certiorari.

  • October 5, 2015

    SEC Fines Former Ocwen Unit HLSS $1.5M

    Home Loan Servicing Solutions Ltd. will pay $1.5 million to settle charges that it misrepresented its relationship with its former parent company Ocwen Financial Corp.,and misreported the value of billions of dollars' worth of mortgage servicing rights it bought from the embattled subprime mortgage loan servicer, the U.S. Securities and Exchange Commission said Monday.

  • October 5, 2015

    High Court Won't Revive Stanford Victims' Claims Against SEC

    The U.S. Supreme Court on Monday refused to consider an argument by victims of Robert Allen Stanford’s $7 billion Ponzi scheme that the Eleventh Circuit’s decision shielding the U.S. Securities and Exchange Commission from a negligence suit gives the agency blanket immunity.

  • October 5, 2015

    Schwab's Libor Claims Get No Supreme Court Traction

    The U.S. Supreme Court on Monday refused to consider Charles Schwab Corp.'s attempt to revive its antitrust claims in multidistrict litigation over alleged Libor manipulation by top banks.

  • October 5, 2015

    BNY Mellon Can't Dodge RMBS Suit Over Loan Docs

    A New York judge on Friday refused a bid by The Bank of New York Mellon Corp. to quash a lawsuit brought by banks, insurers and other investors against BNY Mellon as the trustee of pools of poor-performing residential mortgage-backed securities, saying dismissal would be premature.

  • October 5, 2015

    High Court Knocks Down Madoff Victims’ Appeal

    The U.S. Supreme Court on Monday denied a bid for review of a Second Circuit decision finding that early investors in Bernard Madoff's Ponzi scheme can’t collect inflation or interest on their losses, paving the way for a $1.2 billion payout to victims.

  • October 5, 2015

    Justices Snub Chesapeake Investor's Appeal In Fraud Suit

    The U.S. Supreme Court on Monday denied a petition by a pension fund seeking to revive its securities fraud class action claiming Chesapeake Energy Corp. omitted key details about a natural gas price hedging strategy. 

Expert Analysis

  • Delaware Affirms The Power Of A Stockholder Majority

    Martin Seidel

    In Corwin v. KKR Financial Holdings, the Delaware Supreme Court recently confirmed the reluctance of the state's courts to second-guess the disinterested stockholder majority’s determination of what is in their best interest, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Hitachi Underscores Need For Robust FCPA Due Diligence

    Mark Mendelsohn

    A recent action against Hitachi Ltd. is further evidence of the U.S. Securities and Exchange Commission’s ability to use its expansive reach under the Foreign Corrupt Practices Act’s accounting provisions to police bribery and bribery-related conduct that it may not be able to reach under the anti-bribery provisions, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • Calculating Damages In Securities Contract Breach Cases

    Marcia Kramer Mayer

    A Florida state court decision in Kozel v. Kozel, involving Gulf Keystone Petroleum founder Todd Kozel, joins a long line of authority developed in multiple states over the last 38 years that provides a predictable and objective method to compute damages for delayed delivery of stock, say members of NERA Economic Consulting and Fisher & Bendeck PL.

  • Clear Contractual Terms Beat Equitable Principles — Again

    Shmuel Vasser

    A Southern District of New York ruling in Lehman Brothers v. JPMorgan Chase Bank is in line with recent decisions where courts have been unwilling to find ambiguity in a contract in order to consider equitable arguments in bankruptcy cases regarding a creditor’s conduct, say Shmuel Vasser and Shana White of Dechert LLP.

  • Restocking The Buyer’s Private M&A Toolkit Post-Cigna

    Daniel L. Serota

    While there have been many suggestions about how buyers should address the issues raised by Cigna v. Audax, these solutions are often impractical. What is needed is an alternative approach that restores the economic risk allocation that was available pre-Cigna without imposing deal risk, timing delays or reducing value, say Daniel Serota and John-Alex Shoaff of Greenberg Traurig LLP.

  • 5 Things Clients Never Tell Their Lawyers


    Given the times we live in, it is almost inevitable that everyone will, sooner or later, need to consult with legal counsel. With that in mind, I thought it might be interesting to discuss a few things that clients just won't tell their lawyers, says Francis Drelling, general counsel of Specialty Restaurants Corp.

  • Lehman Ruling Offers Much-Needed Guidance On 'Loss'

    Fred Sosnick

    A Southern District of New York decision in a Lehman Chapter 11 suit, holding that Intel Corp.’s loss calculation resulting from a failed transaction was appropriate, is significant both because of the dearth of judicial interpretation of International Swaps and Derivatives Association closeouts, and because it affirms the general understanding that a nondefaulting party has broad discretion in calculating “loss,” say attorneys wit... (continued)

  • Disclosure-Only Settlements Face Continued Scrutiny

    Israel Dahan

    Vice Chancellor Sam Glasscock, in a stockholder case related to Riverbed Technology's go-private deal, recently expressed serious reservations about the broad releases provided to Riverbed’s directors in exchange for enhanced disclosures. This and other recent rulings highlight the Delaware Chancery Court’s efforts to ensure that meritorious merger challenges are litigated, say attorneys with King & Spalding LLP.

  • Inside National Futures Association Cybersecurity Guidance

    Heather Egan Sussman

    New cybersecurity guidance proposed by the National Futures Association is particularly noteworthy for firms that are not currently subject to the cybersecurity rules set forth by the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, say attorneys with Ropes & Gray LLP.

  • Lessons From Avon's FCPA-Related Settlements

    Riyaz Dattu

    When Avon Products Inc. first learned about potential Foreign Corrupt Practices Act problems in China, it simply directed that internal control measures be instituted at the subsidiary, with no follow-up on the compliance initiatives. By the time Avon began a full-blown internal investigation, much of the damage had been done, say Riyaz Dattu and Sonja Pavic of Osler Hoskin & Harcourt LLP.