Securities RSS

  • April 18, 2014

    Impax Can't Shake Drug Quality-Control Securities Action

    A California federal judge on Friday refused to toss a securities fraud class action against Impax Laboratories Inc. that alleges the pharmaceutical company hid serious quality-control deficiencies while exaggerating its progress toward fixing them.

  • April 18, 2014

    Solicitor General Can Argue In Pom, 8 Other High Court Cases

    The U.S. Supreme Court said Friday that the U.S. solicitor general can participate as amicus curiae next week in oral arguments in nine cases, including Pom Wonderful LLC's suit accusing competitor Coca-Cola Co.'s juice label of misleading consumers.

  • April 18, 2014

    NY Times Needn't Cough Up Docs For Hospital Investor Spat

    A New York federal judge ruled Thursday that The New York Times Co. doesn't have to produce documents sought by a pension fund for an underlying investor suit accusing a health care operator of performing unnecessary, highly profitable cardiac procedures.

  • April 18, 2014

    JPMorgan Thwarts Jury Trial In Hedge Fund Revenue Row

    JP Morgan Securities Inc. beat out hedge fund Hayground Cove Asset Management LLC's bid for a jury trial, after a New York judge ruled Thursday that Hayground's claims weren't enough to undo a jury waiver in the parties' heavily disputed revenue-sharing agreement.

  • April 18, 2014

    Judge Trims German Bank's $160M MBS Suit Against UBS

    A New York state judge on Thursday largely trimmed a suit brought by Germany's fourth-largest bank against UBS AG and its subsidiaries over $160 million worth of mortgage-backed securities, leaving intact two fraud claims against them.

  • April 18, 2014

    Lululemon Beats Investors' Too-Sheer Yoga Pants Suit

    A New York federal judge on Friday granted final dismissal to a consolidated securities class action against Lululemon Athletica Inc. and two principals over the fallout from its costly March 2013 recall of too-sheer yoga pants, finding claims of purportedly false statements by the company to be mere puffery.

  • April 18, 2014

    JPMorgan To Pay Madoff Victims $218M After Judge's OK

    A New York federal judge on Thursday finalized a $218 million settlement between JPMorgan Chase & Co. and victims of Bernard Madoff, ending a class action suit that accused the bank of turning a blind eye to the decadeslong Ponzi scheme.

  • April 17, 2014

    Prudential's $2B RMBS Suit Against BofA Mostly Survives

    Most of the claims lodged by Prudential Insurance Co. alleging Bank of America Corp. sold it $2 billion in fraudulent residential mortgage-backed securities survived a motion to dismiss Thursday in New Jersey federal court.

  • April 17, 2014

    State Street Bank Escapes GM Workers' ERISA Class Action

    A Michigan federal judge threw out an Employee Retirement Income Security Act suit brought by General Motors Corp. workers who alleged State Street Bank & Trust Co. continued to offer GM stock after it became imprudent, saying the plaintiffs didn’t meet their burden to show that the actions were unreasonable.

  • April 17, 2014

    Bear Stearns Workers Duck Claims Over Billionaire Stock Buy

    A New York federal judge has dismissed claims that two former Bear Stearns Cos. LLC employees duped billionaire Roger Wang and his wife into buying stock in the bank shortly before it collapsed in 2008, according to a Wednesday ruling.

  • April 17, 2014

    Gupta To Surrender For 2-Year Prison Term In June

    Former Goldman Sachs Group Inc. director Rajat Gupta has two months to surrender himself for his two-year prison sentence on criminal charges of insider trading, a New York district judge ordered Thursday.

  • April 17, 2014

    11th Circ. Grounds Ex-Delta Worker's ERISA Appeal

    A lower court correctly applied a previous appellate decision and nixed a proposed Employee Retirement Income Security Act class action brought by a former Delta Air Lines Inc. worker who said Delta stock was an imprudent retirement plan investment option, the Eleventh Circuit ruled Thursday.

  • April 17, 2014

    Player In $11M Ponzi Scheme Gets 25-Year Sentence

    A Texas federal judge on Wednesday handed down a 25-year prison sentence to a key player in an $11 million investment fraud scheme and ordered he pay $6.5 million in restitution, the U.S. Department of Justice announced.

  • April 17, 2014

    5 Suits Over $45B Comcast-TWC Merger Consolidated

    A New York state judge on Tuesday ordered the consolidation of five shareholder class actions against Time Warner Cable Inc. and Comcast Corp. in New York Supreme Court that seek to halt the mammoth $45.2 billion merger that would reshape the cable industry.

  • April 17, 2014

    $16M Settlement In Monster Beverage Securities Suit

    Monster Beverage Corp. agreed in California federal court Wednesday to pay more than $16 million to settle a class action that accuses it of overstating the benefits of a distribution deal with Anheuser-Busch Co., causing the stock to climb artificially high.

  • April 17, 2014

    Rajaratnam Tax Shelter Firm Can't Get Help Paying $5M Award

    A New York judge on Wednesday tossed a lawsuit by tax firm Diversified Group Inc. that had hoped to force accountants and tax attorneys to help pay a $5 million arbitration award against Diversified for selling illegal tax shelters to notorious inside trader Raj Rajaratnam.

  • April 17, 2014

    Executors Of BMS CEO's Estate Can't Shake $6M Tax Suit

    A New York judge refused to allow two relatives of former Bristol-Myers Squibb Co. CEO Richard L. Gelb to ditch a $6 million lawsuit filed against them by a Deutsche Bank AG subsidiary last week, saying a future legal proceeding will likely find they owe the subsidiary almost $900,000 in tax preparation expenses. 

  • April 16, 2014

    Morgan Stanley Can't Shake Oligarch's Securities Action

    A New York federal judge has refused to dismiss an insider trading and market manipulation lawsuit brought against Morgan Stanley and affiliates by a Russian oligarch-owned firm, ruling the issues raised in the case are not identical to those decided by a related arbitration, according to court documents unsealed Wednesday.

  • April 16, 2014

    UK Court Rejects Madoff Feeder Fund's Clawback Suit

    A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.

  • April 16, 2014

    MF Global Brass Must Face Some Customer Claims

    An MF Global Inc. customer seeking at least $100 million in damages over the brokerage firm’s collapse may pursue some claims against Jon Corzine and five other top executives, a New York federal judge ruled Wednesday.

Expert Analysis

  • Conflict Minerals Law — Will The SEC Take It To The Banc?

    J. Robert Brown Jr.

    Given that the D.C. Circuit struck down a small aspect of the conflict minerals rule on First Amendment grounds, the U.S. Securities and Exchange Commission will have to decide its next step. To the extent that the agency opts to seek en banc review, it will presumably need to give some thought to the possible change in the pool of judges that could result from the suggested consolidation with another case, and the impact of this change on the outcome of a critical issue, says J. Robert Brown Jr. of Sturm College of Law at the University of Denver.

  • Activist Investors — Brace Yourselves For 13D Changes

    Perrie Michael Weiner

    The U.S. Securities and Exchange Commission is turning more aggressive attention toward shareholder activists, and the issue of revising the Schedule 13D timetable is alive once again, largely due both to a recent media report and its confluence with another event — the news that such a measure has the support of perhaps the preeminent juridical voice in American corporate law, Delaware Supreme Court Chief Justice Leo E. Strine Jr., say Perrie Michael Weiner and Patrick Hunnius of DLA Piper.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Roadblocks To D&O Coverage For Subpoena Response Costs

    Benjamin D. Tievsky

    While it must be emphasized that a policyholder’s entitlement to coverage is dependent upon the precise language of the policy at issue and the specific facts of each case, the recognition by many courts that a subpoena is a “claim” under D&O policies opens the door for potential recovery in a variety of circumstances, says Benjamin Tievsky of Orrick Herrington & Sutcliffe LLP.

  • Good News For South Fla. Ponzi Schemers?

    Lawrence A. Kellogg

    In its effort to protect public companies and legitimate businesses in general, the U.S. Supreme Court appears to be overlooking the effect its rulings are having on those for whom the fraud provisions of the securities laws were designed to protect. Should the court ring the death knell on class action securities cases, the South Florida climate for Ponzi schemers and other fraudsters will become better than ever, says Lawrence Kellogg, a founding partner of Levine Kellogg Lehman Schneider & Grossman LLP.

  • CFTC Data Will Be A Powerful Tool For FERC Enforcement

    Terry S. Arbit

    The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission recently signed two long-awaited memoranda of understanding, the lower-profile information-sharing one, which provides FERC with “large trader data” in the CFTC’s possession, being the more significant. Regulators achieved a significant victory by including surveillance purposes in the memo — it was a long time coming and provides FERC with a potent tool for surveilling the natural gas and power markets, say attorneys at Norton Rose Fulbright.

  • The 6 Most Important Changes To Russian Pledge Rules

    Alexey Kukharev

    Among the most significant changes being made to the Russian Civil Code is the introduction of the security trustee concept, which will strengthen syndicated lending and asset-backed security structures involving Russian collateral, and will bring the Russian legal system into harmony with the most developed legal systems in the world in this area, says Alexey Kukharev of Orrick Herrington & Sutcliffe LLP.

  • What Will Gov't Seek To Prove In Rajaratnam Brother Case?

    Michele Adelman

    More courts than not have found that the government bears the burden of proving that a remote tippee knew that the tipper received some form of personal benefit, so the inevitable question is whether the government will reverse course and seek to prove that Rajarengan Rajaratnam knew that his brother Raj's tippers received a personal benefit, rather than running the risk of having a reversal of any conviction of Rajarengan, says Michele Adelman of Foley Hoag LLP.

  • Fog May Be Lifting Around Finders

    Kenneth G.M. Mason

    The regulatory world of when and whether a U.S. person can raise capital and receive transaction-based compensation without registering as a broker-dealer has been murky. But the U.S. Securities and Exchange Commission’s aggressive stance on when finders have to register as broker-dealers has recently encountered judicial disavowal by courts, which has helped clarify certain compensation issues, say Kenneth Mason and Sharon Obialo of Kaye Scholer LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.