The U.S. Securities and Exchange Commission provided companies with a crash course in what to do — and what not to do — when it recently revealed that its electronic public document filing system had been hacked last year.
A former Hunton & Williams LLP patent partner who hinted to a friend about an upcoming Pfizer deal asked a New York federal judge to sentence him to probation for his securities fraud and conspiracy conviction, citing his kindhearted acts and restating his claim that he does not recall tipping off his friend, according to court documents made public Friday.
LendingClub Corp. asked a California federal judge Thursday not to certify a class of investors suing over the company hiding defective internal controls, saying the “lawyer-controlled” named plaintiff had an unusual investment history that made it ill-equipped to lead the class.
The U.S. Securities and Exchange Commission on Friday sued Colorado investment advisory firm Moses Investment Co. and its owner for lying about his trading experience, past performance and the riskiness of investing, saying investors lost nearly $1 million.
Bank of America Corp. and its Merrill Lynch Pierce Fenner & Smith Inc. broker-dealer unit agreed to pay a total of $5 million to settle allegations they misled prosecutors and regulators investigating former New York swaps traders for executing futures trades after learning big trades were in the pipeline, federal authorities announced Friday.
A Brooklyn, New York, computer programmer who was accused by the U.S. Commodity Futures Trading Commission on Thursday of embezzling $600,000 from his bitcoin trading enterprise has been arrested and charged with fraud by the Manhattan district attorney.
DLA Piper LLP will remain in its 119,000-square-foot East Palo Alto, California, office until at least 2023, striking a deal to renew its lease at the firm’s office in University Circle, according to a statement Thursday by real estate investment trust Columbia Property Trust Inc.
A joint venture of Singapore’s sovereign wealth fund GIC Private Ltd. and Japanese real estate investment trust Invincible Investment Corp. is buying a Sheraton hotel near the Disney Resort in Tokyo for $909.1 million, according to separate announcements from the buyers Thursday.
A Pennsylvania federal judge on Thursday dismissed every count in a sprawling proposed class action alleging that the University of Pennsylvania mismanaged its employees’ retirement plan, saying that the funds Penn offered, the fees it paid and the contracts by which it paid them were all on the level.
The U.S. Commodity Futures Trading Commission said Wednesday that a Steptoe & Johnson LLP partner has been appointed to serve as director of the agency's Division of Swap Dealer and Intermediary Oversight.
A Manhattan judge was set on Thursday to order a default judgment against a former broker for subjecting unsophisticated clients to risky trades and spending client money on bar tabs, after the New York man sent a “rude and inappropriate” email to the U.S. Securities and Exchange Commission and skipped court.
The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.
The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.
MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.
The U.S. Commodity Futures Trading Commission sued a Brooklyn computer programmer on Thursday in Manhattan federal court for allegedly stealing $600,000 in bitcoin from dozens of investors in his company and claiming that he had been hacked in an effort to cover it up.
A property fund of asset management shop BlackRock Inc. is selling a Singapore office and retail property to Singapore developer CapitaLand Commercial Trust for roughly S$2.12 billion ($1.57 billion), according to an announcement on Thursday from CapitaLand.
Brooklyn federal prosecutors pushed back Wednesday against a request by Martin Shkreli to get his hands on his $5 million bail following the controversial former pharmaceutical executive’s remand to custody, saying the funds should be held to satisfy potential financial penalties he faces at sentencing.
Real estate investment trust Four Corners Property Trust said Wednesday it has inked an agreement to acquire 41 restaurant properties from Washington Prime Group Inc. for a purchase price of about $67.2 million in cash.
A July government watchdog report warned the U.S. Securities and Exchange Commission that it had not fully put in place a system for monitoring cyber intrusions on its financial systems, even as the hack of a key electronic filing system for public company disclosures, which was revealed Wednesday, may have enabled insider trading.
The U.S. Securities and Exchange Commission’s electronic filing system for public company disclosures was hacked last year, and the agency last month learned that the cyber-intruders may have traded off the nonpublic information that was exposed, agency Chairman Jay Clayton said in a statement Wednesday night.
In the aftermath of Kokesh, the U.S. Securities and Exchange Commission has continued filing enforcement actions in federal district courts seeking disgorgement, as if the import of the decision is only that disgorgement is subject to a five-year statute of limitations. This overlooks two far more significant ramifications of Kokesh for SEC enforcement practice, say attorneys with WilmerHale.
The Third Circuit in North Sound Capital v. Merck became the first federal appellate court to extend the U.S. Supreme Court’s ruling in California Public Employees’ Retirement System v. ANZ Securities, applying it to claims brought under the Exchange Act. However, the decision's significance remains unclear, say attorneys with Schulte Roth & Zabel LLP.
During its upcoming term, in Digital Realty Trust v. Somers, the U.S. Supreme Court will decide whether employees who report violations internally are protected under Dodd-Frank. If the court requires whistleblowers to report violations directly to the U.S. Securities and Exchange Commission, internal corporate compliance programs will be crippled, says Stephen Kohn of Kohn Kohn & Colapinto LLP.
Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.
Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.
Although presidential intervention to block a planned acquisition is relatively rare, President Donald Trump’s executive order last week blocking Canyon from acquiring Lattice was not especially surprising in light of recent precedent, the cautious approach of the Committee on Foreign Investment in the United States, and public statements by the Trump administration regarding China, say attorneys with Ropes & Gray LLP.
Financial Crisis Anniversary
The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.
Financial Crisis Anniversary
Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.
The Second Circuit's recent Martoma decision potentially expands the category of persons that, upon the disclosure of confidential information without pecuniary or tangible benefit, may constitute tippers or tippees subject to insider trading liability, say attorneys with Cadwalader Wickersham & Taft LLP.
Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.