Asset Management

  • January 15, 2017

    How Jed Rakoff, One-Man Circuit Split, Saved Bharara's Bacon

    BigLaw and the federal bench turned out in force Friday to witness history's first attempt to transform U.S. District Judge Jed Rakoff's West Coast end-run around the Second Circuit's Newman insider trading decision into the stuff of legend.

  • January 13, 2017

    Fund Manager Pleads Guilty To $23M Commodities Fraud

    An investment manager on Friday pled guilty in a New York federal court to one count of commodities fraud after losing about $20 million in investment funds, much of it from family, friends and fellow Harvard alumni, and then generating phony account statements to keep the investors sweet.

  • January 13, 2017

    6th Circ. Affirms Whistleblower Can't Sue Morgan Stanley

    The Sixth Circuit on Friday upheld the dismissal of a former Morgan Stanley employee's retaliation lawsuit against the company, finding that his “vague assertions” of working with law enforcement don’t afford him whistleblower protections.

  • January 13, 2017

    Cost-Benefit Bill Frees Industry By Tying SEC Down

    The bill passed Thursday in the U.S. House of Representatives requiring the U.S. Securities and Exchange Commission to perform a cost-benefit analysis on regulation could help the agency "drain the swamp" of burdensome regulation, experts said, but may bog SEC staff down in regulatory review and expensive litigation at the cost of investor protection.

  • January 13, 2017

    High Court To Hear CalPERS' Argument Over American Pipe

    The U.S. Supreme Court agreed Friday to hear an appeal of a Second Circuit decision that did not allow the California Public Employees' Retirement System to spin off its own claims from a larger class action because the claims were filed late.

  • January 13, 2017

    SEC Whistleblower Prodded On Misconduct At Fraud Trial

    U.S. Securities and Exchange Commission whistleblower Jason Thorell sparred Friday over the extent of his wrongdoing at Visium Asset Management LP with the counsel for Stefan Lumiere, a former portfolio manager at the hedge fund being tried on criminal charges of scheming to overvalue a $480 million debt fund.

  • January 13, 2017

    SEC Fines Morgan Stanley $13M For Overcharging Fees

    A Morgan Stanley investment advisement subsidiary on Friday agreed to dole out $13 million to end the U.S. Securities and Exchange Commission’s allegations that it charged about 150,000 clients inadvertently heightened advisory fees due to billing system and administrative errors.

  • January 13, 2017

    Taxation With Representation: Baker, Cleary, Paul, Kirkland

    In this week’s Taxation With Representation, The Williams Cos. Inc. is undertaking an $11.4 billion repositioning of its financial relationship with its master limited partnership, Japanese pharmaceutical company Takeda is purchasing an oncology-focused firm in Massachusetts for $5.2 billion, and a new partnership will buy controlling stakes in McDonald’s in China and Hong Kong for $2.08 billion.

  • January 13, 2017

    Supreme Court To Review Limitations On SEC Disgorgement

    The U.S. Supreme Court agreed Friday to review whether the U.S. Securities and Exchange Commission is subject to time limits when seeking ill-gotten gains, taking up a New Mexico investment adviser’s appeal of an issue that has split the circuits.

  • January 13, 2017

    Investors Say Forex Ruling Leaves Banks Luckless On Libor

    A group of investors urged a New York judge Thursday to ignore recent correspondence from bank defendants including Deutsche Bank AG over a London Interbank Offered Rate rigging scandal, arguing that the banks are fighting a losing battle following a recent landmark decision involving foreign exchange rates.

  • January 12, 2017

    Warburg Pincus Can’t Beat Rural/Metro Investors’ Fraud Suit

    A California federal judge on Thursday tentatively ruled that Warburg Pincus can’t escape a securities fraud suit brought by Oaktree Capital Management-owned funds claiming the private equity firm misrepresented the financial health of now-bankrupt Rural/Metro Corp., saying the funds had raised a strong inference that a managing director’s statement was meant to deceive.

  • January 12, 2017

    Fifth Street Investors Seek OK Of $14M Class Action Deal

    A class of investors asked a New York federal judge Thursday to approve their $14 million settlement with Fifth Street Finance Corp., ending claims that the investment group made false representations to its shareholders.

  • January 12, 2017

    Del. Theranos Suit Docs OK'd For Use In Other Actions

    Investors seeking a refund of their $96 million stake in troubled biotech venture Theranos Inc. won a recommendation Wednesday for extended use of documents collected in their Delaware Chancery Court lawsuit, but lost a bid to limit demands for records involving Walgreen Co., another Theranos lawsuit opponent.

  • January 12, 2017

    Investors Accuse Trading Co. Execs Of Rampant Misbehavior

    Five former executives of the parent company of the now-defunct online stock trading company Ditto Trade Inc. were hit with a shareholder complaint on Thursday, accusing the five of essentially using the company as a personal bank account, among other things, in the wake of investigations from the Securities and Exchange Commission and the Financial Industry Regulatory Authority.

  • January 12, 2017

    Real Estate Rumors: Wells Fargo, Jia Shu Xu, JMB Realty

    Wells Fargo is reportedly in talks to upsize its lease at a New York tower owned by real estate investment trusts Vornado and SL Green to 40,000 square feet, Jia Shu Xu is looking to get $60 million for a Queens development site, and JMB Realty is said to be in talks to add a food court to a Chicago mall.

  • January 12, 2017

    Feds Want Leader Of $11M Fraud Jailed Ahead Of Sentencing

    Federal prosecutors told an Illinois federal judge Thursday that the convicted ringleader of an $11 million investment scheme can’t be trusted to remain free ahead of his sentencing in April, saying they fear he could flee the country using money collected from another suspected venture. 

  • January 12, 2017

    Airbus Settles Arbitral Row In $4.5M Fund Manager Dispute

    Global aerospace giant Airbus Group SE on Wednesday told a New York federal judge that it has reached a tentative settlement in its case to halt a $4.5 million arbitration claim brought against it by a former Andreessen Horowitz partner who led its Silicon Valley venture capital arm.

  • January 12, 2017

    House Passes Bills Aimed At SEC, CFTC Rulemakings

    The House of Representatives pushed through a pair of bills aimed at the breadth of authority of the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission, as Republicans said the bills would relieve investors and end users in the derivative markets.

  • January 12, 2017

    SEC To Focus On 'Robo-Advisers,' Senior Abuse In 2017

    The U.S. Securities and Exchange Commission announced its exam priorities for the year on Thursday, saying the agency's examiners will be reviewing how firms use "robo-advisers," identify financial exploitation of senior investors, and comply with new money market fund rules.

  • January 12, 2017

    SEC Whistleblower Enticed Visium Fraud Trial Target To Talk

    U.S. Securities and Exchange Commission whistleblower Jason Thorell said that he was out for a bounty — and to “damage” former bosses at hedge fund Visium Asset Management LP — when he secretly recorded criminal fraud defendant Stefan Lumiere saying a fund boss was “egregiously” mismarking debt values, a Manhattan federal jury heard Thursday.

Expert Analysis

  • Avoiding The Hidden Costs Of Bargain-Priced E-Discovery

    Michael Cousino

    Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can all add up to a surprisingly large final cost, says Michael Cousino of Epiq Systems.

  • FINRA’s Most Significant 2016 Enforcement Actions

    Jon Eisenberg

    The Financial Industry Regulatory Authority brings about 1,500 enforcement actions a year, but often lost in the volume of actions are the ones that merit particular attention. Jon Eisenberg and Michael Dyson of K&L Gates LLP review the 2016 actions that resulted in fines of $1 million or more.

  • Saving Lawyers 1 Breath At A Time: Mindfulness In The Law

    Jennifer Gibbs

    As critical as lawyers are to society, they are reported to be the most frequently depressed occupational group in the United States. In response to the inherently stressful nature of the practice of law, more and more lawyers are turning to an ancient contemplative practice called “mindfulness,” says Jennifer Gibbs of Zelle LLP.

  • Long-Arm Jurisdiction In A Post-Daimler Era

    Muhammad U. Faridi

    A New York state court’s recent decision in Ace Decade Holdings v. UBS, dismissing a $500 million fraud suit against Swiss bank UBS, highlights the nuanced issues involved in personal-jurisdiction disputes and demonstrates that Daimler has significantly limited general “doing business” jurisdiction over out-of-state defendants, say Muhammad Faridi and Jordan Engelhardt of Patterson Belknap Webb & Tyler LLP.

  • Understanding How Blockchain Could Impact Legal Industry

    R. Douglas Vaughn

    Blockchain is essentially a computerized public ledger that can apply to almost anything that a person might save into a database or spreadsheet. This versatile technology may enhance the legal industry by providing an improved record keeping system, setting up "smart contracts" and tracking intellectual property and land records, say R. Douglas Vaughn and Anna Outzen of Deutsch Kerrigan LLP.

  • The Incoming SEC Chairman As I Know Him

    Kevin J. Lavin

    The natural tendency of Democrats will be to criticize President-elect Donald Trump's nominee for U.S. Securities and Exchange Commission chairman as a “Wall Street insider” who won’t be sensitive to regular working-class Americans. I’m a registered Democrat and would enjoy being able to criticize Trump’s selection, but I’ve known Jay Clayton since 1995 and he is no ideologue, says Kevin Lavin of Arnold & Porter Kaye Scholer LLP.

  • 'Fair Value' Takeaways From Merion V. Lender Processing

    Gail Weinstein

    The Delaware Chancery Court relied entirely on the merger price to determine “fair value” in Merion Capital v. Lender Processing Services, confirming that an appraisal award likely will not exceed the merger price in a nonaffiliated transaction where there was a pre-signing market check with “meaningful competition,” say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Curbing The Power Of Pari Passu Clauses

    Sergio J. Galvis

    The New York courts’ interpretation of the pari passu clause in Argentine bonds to provide a basis for a powerful injunctive remedy was widely viewed as novel. But a new ruling out of the Southern District of New York will likely limit the precedential effect of the earlier rulings on sovereign debt restructurings for the large number of still-outstanding securities that contain pari passu clauses, say attorneys with Sullivan & Cromwell LLP.

  • Be Prepared For Law Firm Data Breach Litigation

    Scott Vernick

    The April 2016 leak of "Panama Papers" documents from law firm Mossack Fonseca removed any doubt that the threat of cyberattacks against the legal industry is more than hypothetical. While the case law on law firm data breach litigation has largely yet to be written, there are certain fundamental tenets worth reviewing, say Scott Vernick and Peter Buckley of Fox Rothschild LLP.

  • 7 Legal Industry Predictions For 2017

    Haley Altman

    Since 2008, the legal relationship dynamic has consistently evolved, leading clients to demand more "value" for services received. In 2017, investment in and adoption of new technology and prioritizing cybersecurity will lead to an increase in billable hours and shifts in realization rates, says Haley Altman of Doxly.