Securities

  • July 29, 2014

    Proskauer Rose Dodges Stanford Receiver's Malpractice Suit

    A District of Columbia federal judge has thrown out a lawsuit filed by convicted Ponzi schemer R. Allen Stanford's receiver against Proskauer Rose LLP, finding that shuttling the malpractice case back to Texas federal court, from where it was remanded in December, would not be in the interest of justice.

  • July 29, 2014

    SEC's FCPA Crackdown Looms Over Small-Cap Cos.

    As the U.S. Securities and Exchange Commission makes good on its promise to crack down on violations of the Foreign Corrupt Practices Act, small publicly traded companies like Smith & Wesson Holding Corp. — which paid $2 million Monday to settle bribery charges — are struggling to balance the draws of emerging market expansion with the costs of American regulatory compliance.

  • July 29, 2014

    Convicted CFO Agrees To Pay $1.7M Back To Bankrupt Co.

    The former chief financial officer of bankrupt Fair Finance Co., currently serving a 10-year prison sentence, has agreed to pay $1.76 million to the company's bankruptcy trustee after participating in a $200 million scam involving the CEO of movie company National Lampoon Inc.

  • July 29, 2014

    NY's Aging Fraud Case Against Ex-AIG CEO Headed For Trial

    The nearly decade-old fraud action brought against a former American International Group Inc. CEO is finally headed for trial, after a New York judge on Tuesday set a firm start date to resolve allegations that Maurice “Hank” Greenberg engaged in sham financial transactions.

  • July 29, 2014

    11th Circ. OKs $67M TD Bank Verdict Over Rothstein Fraud

    The Eleventh Circuit on Tuesday said that investors in jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme had standing to pursue claims against TD Bank NA and affirmed a $67 million verdict against the bank for aiding the scheme.

  • July 29, 2014

    2 KPMG Units Dodge Madoff Investor Suits

    A New York state judge has dismissed allegations that auditing houses KPMG International and KPMG U.K. committed derelictions of duty while working with Madoff Securities International Ltd., ruling on Monday that investors failed to convince him New York courts had any jurisdiction over the non-U.S. entities.

  • July 29, 2014

    Affinity Gaming Ends Shareholder Feud With Board Change

    Casino owner Affinity Gaming has agreed to reshuffle its board of directors in order to dismiss pending shareholder litigation over its implementation of alleged “poison pill” provisions to keep certain private equity shareholders from taking control, according to a Monday statement.

  • July 29, 2014

    Suit Over Deutsche Bank Takeover Bid To Get A Closer Look

    Deutsche Bank AG’s long-simmering bid to take over Deutsche Postbank AG hit a snag Tuesday when Germany’s high court declined to give it final approval and instead referred a lawsuit brought by an investor over the deal to an appeals court for further consideration.

  • July 28, 2014

    Flow Traders Software Theft Case Headed For Trial

    A New York judge on Monday found grand jury proceedings against a former trader for a Flow Traders BV affiliate and an associate of his were legally sound, setting the stage for a trial on charges that they schemed to steal the Dutch trading house’s proprietary software and set up their own shop.

  • July 28, 2014

    3 GE Units Settle Claims They Rigged W.Va. Muni Bond Bids

    Three General Electric Co. finance units have agreed to pay the state of West Virginia $950,000 to settle an antitrust lawsuit alleging they helped manipulate the market for municipal derivatives, the state announced Monday, bringing the number of banks the state has settled with in the multidistrict litigation to seven.

  • July 28, 2014

    Camelot Boss Can't Ax DA's $9M Investor Theft Action

    A New York judge on Monday shot down a challenge to the indictment of the managing director of private equity firm The Camelot Group for allegedly stealing about $9.3 million in investor funds, finding the grand jury proceedings were legally sound.

  • July 28, 2014

    Goldman Sachs In Talks To Settle FHFA Suit Over MBS Losses

    Goldman Sachs & Co. is in talks to settle a lawsuit brought by the Federal Housing Finance Agency alleging it knowingly sold billions of dollars of toxic residential mortgage-backed securities to Fannie Mae and Freddie Mac, a person familiar with the matter said on Monday.

  • July 28, 2014

    Latham Docs Off The Table In Weatherford Tax Spat

    A New York district court denied a motion by investors to force Weatherford International Ltd. and its auditors to produce documents related to its tax audit investigations, finding that they didn't point to any particular communications that could reasonably be said to be in furtherance of any fraud.

  • July 28, 2014

    Russia Must Pay Yukos Investors $50B, Hague Court Rules

    The Hague's arbitration court has ordered the Russian Federation to pay former shareholders of defunct Yukos Oil Co. $50 billion in damages over its 2007 dismantling of the oil giant, according to decisions announced Monday.

  • July 28, 2014

    Lloyds To Pay $370M In US, UK Libor-Rigging Deal

    Lloyds Banking Group PLC on Monday agreed to pay approximately $370 million to settle claims from U.S. and U.K. authorities that its traders manipulated the London Interbank Offered Rate in several different denominations both during and after the global financial crisis.

  • July 25, 2014

    Texas Court Kicks Deepwater Investor Suit To Switzerland

    A shareholder trying to sue the directors of Transocean Ltd. in a derivative suit in Texas over their alleged mishandling of the Deepwater Horizon explosion and its aftermath will have to take her case to Switzerland if she wants to continue, a Texas appeals court ruled on Thursday.

  • July 25, 2014

    Stock Trader Gets 1.5 Years For Microsoft Inside Trades

    A Seattle stock trader who pled guilty to trading on inside information from a friend at Microsoft Corp., including news of the company’s impending 18 percent stake in Barnes & Noble Inc.'s e-reader business, was sentenced on Friday to one and a half years in prison.

  • July 25, 2014

    5th Circ. Says Orders To Clarify Arbitration Awards Aren't Final

    The Fifth Circuit on Friday said a district court decision to send a case back to an arbitration panel for further clarification was not a final order that could be appealed, rejecting a Nuance Communications Inc. bid to enforce an arbitration award of zero dollars to investors challenging a $45 million merger.

  • July 25, 2014

    UK Fraud Office To Pay RE Mogul $5M Over Iceland Bank Sting

    The U.K.'s Serious Fraud Office has agreed to pay British real estate tycoon Vincent Tchenguiz and his businesses £3 million ($5.1 million) to settle Tchenguiz's civil damages claims over his arrest stemming from a botched 2011 investigation into the collapse of Iceland's Kaupthing Bank HF, the SFO said Friday.

  • 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.

Expert Analysis

  • And Now A Word From The Panel: Top 10 Venue Arguments

    Alan E. Rothman

    As the Judicial Panel on Multidistrict Litigation heads to the “Heart of America” for its July 31 hearing, this column will take a bit of a detour from its regular format and present a top 10 list of arguments — some strange, yet true — made in support of a particular MDL venue, says Alan Rothman of Kaye Scholer LLP.

  • No Breach Of Fiduciary Duty, No Atty Fees

    Stewart D. Aaron

    The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.

  • What's Next For US Financial Regulation

    Dan Ryan

    With the “too big to fail” debate about to hit the headlines again when the Government Accountability Office releases its long-awaited TBTF report, the rhetoric calling for the completion of outstanding regulations will once again sharpen. This rhetoric should not be confused with reality, however, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • Tips For Recovery Under Mandatory Victims Restitution Act

    Paul Monnin

    The Mandatory Victims Restitution Act is a valuable tool to recover the expenses of a costly, yet necessary, internal investigation into a former employee’s criminal wrongdoing. Anticipate and plan for a necessity showing under the MVRA as a potential criminal matter is being investigated and after government cooperation has commenced, say Paul Monnin and Zachary LeVasseur of DLA Piper LLP.

  • 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.