Securities

  • July 24, 2014

    RBS Securities Can't Duck CUNA Mutual's MBS Suit

    A Wisconsin federal judge refused Wednesday to dismiss CUNA Mutual Group's suit against RBS Securities Inc., saying the insurer may have been justified in dragging its heels on some claims that the investment bank overhyped its mortgage-backed securities.

  • July 24, 2014

    Ex-Sentinel CEO Denied Acquittal, New Trial Request

    Former CEO Eric Bloom of the bankrupt Sentinel Management Group Inc.on Wednesday lost a bid to overturn a March guilty verdict that found he operated a $500 million securities fraud scheme, reached by a jury Bloom said made its decision out of laziness and a desire to be finished quicker.

  • July 24, 2014

    Ex-Merrill Chair Ducks Madoff Victims' $5M Investment Suit

    A Maine federal jury on Wednesday cleared former Merrill Lynch & Co. Inc. Vice Chairman John Steffens and his hedge fund Spring Mountain Capital LP from a Maine couple’s suit seeking to recover the up to $4.8 million they had lost in Bernie Madoff’s more than $17 billion Ponzi scheme.

  • July 24, 2014

    Former Deputy Gets 1 Year For Aiding Rothstein's Scheme

    A former Broward County sheriff's deputy was sentenced Thursday to one year in prison for agreeing to use his position in law enforcement to support convicted Ponzi schemer Scott Rothstein and his law firm Rothstein Rosenfeldt Adler PA in a $1.2 billion fraud.

  • July 24, 2014

    Orrick's Credit Suisse MBS Analysis Is Fair Game, Judge Says

    A New York judge on Wednesday said Credit Suisse AG must produce documents stemming from an analysis by Orrick Herrington & Sutcliffe LLP on repurchase demands for loans underlying $497 million worth of residential mortgage-backed securities, finding the study isn't protected by attorney-client privilege.

  • July 24, 2014

    Morgan Stanley Pays SEC $275M To Settle RMBS Claims

    The U.S. Securities and Exchange Commission on Thursday said it settled claims against three Morgan Stanley entities accused of misleading investors in a pair of residential mortgage-backed securitizations that were the last subprime deals the firms underwrote, sponsored and sold.

  • July 23, 2014

    Navistar Securities Class Action Too Vague, Judge Says

    An Illinois federal judge dismissed a securities class action against truck giant Navistar International Corp. on Wednesday, saying the complaint was too sparsely detailed to support fraud allegations in connection with the company's statements about its progress developing a U.S. Environmental Protection Agency-compliant clean engine.

  • July 23, 2014

    Quinn Emanuel, Berger & Montague To Helm Gold Fix Cases

    Quinn Emanuel Urquhart & Sullivan LLP and Berger & Montague PC were appointed as co-lead counsel for investors pursuing antitrust claims against Deutsche Bank AG, Barclays Bank PLC and others for allegedly plotting to manipulate gold prices, a New York federal judge said Monday.

  • July 23, 2014

    Wis. High Court Dismisses Challenge To $455M Permira Buy

    The Wisconsin Supreme Court on Wednesday dismissed a challenge to Permira Advisers LLC's $455 million purchase of education-technology company Renaissance Learning Inc., saying it had to assume Renaissance's principals were acting in good faith unless there was strong evidence to the contrary.

  • July 23, 2014

    Ex-Jefferies Trader Gets 2 Years For RMBS Fraud

    Jesse Litvak, a former Jefferies Group LLC trader convicted of defrauding a U.S. government program designed to aid mortgage-backed securities investors following the financial crisis, was sentenced on Wednesday to two years in prison.

  • July 22, 2014

    Del. Magistrate Pushes Dismissal Of Verizon Derivative Suit

    A Delaware magistrate on Tuesday recommended that the Chancery Court toss a double derivative complaint brought by a Verizon Communications Inc. shareholder over $77 million in payments subsidiary Verizon Wireless made to resolve a federal investigation into overbilling, finding the investor lacked standing to sue on their behalf.

  • July 22, 2014

    Citigroup Safe From FINRA Arbitration After $590M Settlement

    A New York federal judge ruled Tuesday that Citigroup Inc. is not subject to a Financial Industry Regulatory Authority arbitration over claims its stock plummeted after it concealed securitized-loan losses, saying the arbitration would violate an existing $590 million federal court settlement over the claims.

  • July 22, 2014

    Nomura Still On Hook Over $764M Of RMBS

    A New York state judge has refused to dismiss a suit against Nomura Credit & Capital Inc. over $764 million worth of failed mortgage-backed securities, saying a key clause in the purchase agreement supports damages claims Nomura had disputed.

  • July 22, 2014

    NY Judge Tosses $600M Empire State Building Class Action

    A New York state judge has tossed a $600 million class action alleging the Empire State Building's managers cheated investors by rolling up the building into a real estate investment trust, saying the suit is barred by a previous settlement agreement.

  • July 22, 2014

    Wells Fargo Loses Round In $164M IRS Refund Suit

    A special master on Monday denied Wells Fargo & Co.'s bid for summary judgment in its suit claiming the Internal Revenue Service owes it a $164 million tax refund because a complex transaction known as STARS was not a tax shelter, saying there is a clash in the factual record.

  • July 22, 2014

    Former JPMorgan Exec Settles UK Insider Dealing Case

    A former JPMorgan Chase & Co. banker agreed Tuesday to pay a £450,000 ($767,000) fine for allegedly breaking market rules in disclosing confidential information about an oil exploration company that was also a client of his.

  • July 21, 2014

    MBIA Loses Bid For 'Key' Docs In Credit Suisse RMBS Suit

    A New York judge on Friday denied MBIA Insurance Corp.'s bid to compel Credit Suisse Securities (USA) LLC to hand over "highly relevant" documents in a lawsuit claiming the bank lied about how it processed loans for mortgage-backed securities, saying MBIA has already received enough documents to litigate its case.

  • July 21, 2014

    Minn. Appeals Court Tosses UnitedHealth Exec's Fraud Claims

    A Minnesota appeals court on Monday ended a former UnitedHealth Group Inc. executive's bid to sue the company and former colleagues after his insider trading conviction, saying the executive waited years too long to file his claims that other executives falsely promised him aid.

  • July 21, 2014

    Ex-Taylor Bean Chair's 30-Year Fraud Sentence Upheld

    Former Taylor Bean & Whitaker Mortgage Corp. Chairman Lee Bentley Farkas on Monday lost his bid to vacate his criminal conviction and 30-year sentence for his role in a $2.9 billion fraud, with a Virginia federal judge ruling that Farkas failed to show that his trial and appellate lawyers were ineffective.

  • July 21, 2014

    Picard Can't Appeal 'Good Faith' Madoff Clawback Ruling

    U.S. District Judge Jed Rakoff refused on Monday to let the liquidating trustee for Bernard L. Madoff’s defunct firm seek appellate review of a decision weakening clawback suits against investors affected by the Ponzi scheme, saying the cases should not “languish” while the Second Circuit tackles a narrow question of law.

Expert Analysis

  • Your D&O Insurance Policy Post-Halliburton

    Roberta D. Anderson

    The U.S. Supreme Court decision in Halliburton Co. v. Erica P. John Fund may significantly increase defense costs at and prior to the class certification stage, so companies may wish to carefully consider their directors and officers insurance program and confirm that their policies would respond to cover expert witnesses and “event study” expenses, says Roberta Anderson of K&L Gates LLP.

  • 3 Takeaways From BofA's $16.5M Settlement With OFAC

    Michael V. Dobson

    Bank of America’s roughly $16.5 million settlement with the Office of Foreign Assets Control for alleged violation of OFAC sanctions is a treasure trove of sanctions compliance guidance, and carries important lessons for those preparing to submit voluntary self-disclosures, says Michael Dobson Jr. of Kelley Drye & Warren LLP.

  • Understanding The Investment Adviser Registration Process

    Excerpt from Lexis Practice Advisor
    Gretchen Passe Roin

    The Investment Advisers Act preempts most state regulation of a U.S. Securities and Exchange Commission-registered investment adviser and its supervised persons. However, states have the power to regulate the licensing and registration of an SEC-registered adviser’s “investment adviser representatives,” say James Anderson and Gretchen Passe Roin of Wilmer Cutler Pickering Hale and Dorr LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Fla. Sets Strict Standard For Direct Shareholder Claims

    Jeffrey W. Gutchess

    In Dinuro Investments v. Camacho, a Florida court clarified the limited circumstances under which a corporate shareholder or limited liability company member has standing to bring a direct claim for damages relating to the company — an issue that has become more and more unsettled, say Jeff Gutchess and Justin Brenner of Bilzin Sumberg Baena Price & Axelrod LLP.

  • High Court Will End Circuit Split With Libor MDL Case

    Stacey Slaughter

    The U.S. Supreme Court's acceptance of Gelboim v. Bank of America Corp. will resolve a circuit split on whether a plaintiff can immediately appeal the district court’s dismissal of a lawsuit that has been consolidated with other suits that are still pending, but it is merely the first of several steps needed to revive the bondholder plaintiffs' antitrust claim, say Stacey Slaughter and Thomas Berndt of Robins Kaplan Miller & Ciresi LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • Protections Remain In Place For Ga. Officers, Directors

    J. Timothy Mast

    The Georgia Supreme Court’s highly anticipated decision in Federal Deposit Insurance Corp. v. Loudermilk clarifies the protections afforded by the business judgment rule to directors and officers of banks and corporations, and proves that the “wisdom” of corporate decisions continues to be shielded from claims of ordinary negligence, say attorneys with Troutman Sanders LLP.