Asset Management

  • January 17, 2017

    Zohar Funds Sue Lynn Tilton’s Patriarch Partners

    Three collateralized loan obligation funds created by Patriarch Partners LLC magnate Lynn Tilton have gone after their founder, accusing her in a fraud suit filed Monday in New York federal court of mismanaging the Zohar funds and stealing more than $1 billion from them, putting them at risk of default.

  • January 17, 2017

    SEC Fines Pershing Square, Others For Pay-To-Play Violations

    Billionaire investor Bill Ackman’s hedge fund Pershing Square is one of 10 firms that agreed on Tuesday to settle the U.S. Securities and Exchange Commission’s allegations of “pay-to-play” violations concerning campaign contributions and investment advisory work.

  • January 17, 2017

    Linkwell Investor Says Sidley Can't Dodge 'Covert' Merger Row

    A Linkwell Corp. investor accusing certain subsidiaries and Sidley Austin LLP of securities misconduct asked a Florida federal court on Friday to deny an attempt by Sidley to dismiss the allegations against it, saying the firm designed and implemented the “covert” go-private merger.

  • January 17, 2017

    Deutsche Bank Finalizes $7.2B MBS Settlement

    The U.S. Department of Justice finalized a $7.2 billion deal with Deutsche Bank AG on Tuesday, releasing new details about how Germany’s largest bank misled investors in selling subprime mortgage-backed securities that led to the 2007 financial crisis.

  • January 17, 2017

    Visium Trial Witness Describes Illegal Health-Sector Trades

    Former Visium Asset Management LP portfolio manager Christopher Plaford told a Manhattan federal jury Tuesday that he used information about falling government health care reimbursement rates from David Blaszczak, a former Centers for Medicare & Medicaid Services employee, to bet against home health-sector stocks.

  • January 17, 2017

    Tragic Juror Issues Delay Litvak Deliberations

    Deliberations have halted in the retrial of former Jefferies & Co. trader Jesse Litvak after an alternate juror died over the weekend and another was involved in a serious car accident, a spokesman for the Connecticut federal prosecutor's office confirmed Monday.

  • January 17, 2017

    Mary Jo White Says SEC Must Remain An Independent Agency

    Outgoing U.S. Securities and Exchange Commission Chair Mary Jo White said Tuesday the agency must remain independent in the face of “partisan tides” and constricting legislation in order to fulfill its mission of protecting investors.

  • January 17, 2017

    Elliott, Bluescape Mull NRG Energy Proxy Fight

    Elliott Management and Bluescape Energy revealed Tuesday that they together hold a 9.4 percent stake in NRG Energy and are considering nominating directors, marking the first time a hedge fund and a private equity firm joined forces on an activist campaign.

  • January 17, 2017

    Trump Adviser Sells Firm, Talks Russia-US Biz At Summit

    SkyBridge Capital has been sold, and founder Anthony Scaramucci, an adviser to President-elect Donald Trump who recently met with the head of Russia’s sovereign wealth fund to discuss potential future business relations, has severed all ties with the New York private investment firm.

  • January 17, 2017

    SEC Settles With BlackRock Over Whistleblower Waivers

    The U.S. Securities and Exchange Commission on Tuesday announced a settlement with BlackRock Inc. over allegations that the asset manager made departing employees forgo their right to collect whistleblower awards.

  • January 17, 2017

    2 Disputes Lawyers Move To Covington Amid KWM Collapse

    Covington & Burling LLP on Monday announced that it has hired two top financial disputes lawyers formerly with King & Wood Mallesons LLP for its London office, making it the latest firm to recruit arbitration and litigation professionals from KWM as the firm’s European branch enters administration.

  • 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.

Expert Analysis

  • Mediating E-Discovery Disputes Can Save Time And Money

    Daniel Garrie

    A primary driver of increasing litigation costs is the explosion of electronic discovery in recent years. Electronic data is not only increasing dramatically in volume, it is also growing in complexity. One way parties can save time and money is to use a neutral, technically skilled mediator, to ensure that e-discovery is both robust and cost-effective, says Daniel Garrie of JAMS.

  • Some Considerations As Fed Provides Volcker Rule Relief

    David F. Freeman Jr.

    The Federal Reserve Board recently released guidance clarifying how banking entities may request additional time to divest or conform their investments in certain illiquid funds to the Volcker Rule. However, the timing of the guidance presents specific challenges and considerations, say attorneys with Arnold & Porter LLP.

  • Avoid Inadvertent Tipping This Holiday Season

    Dixie L. Johnson

    The U.S. Supreme Court's Salman decision and a few other 2016 cases provide us an opportunity to remind well-meaning directors, executives, lawyers, consultants and others privy to confidential business developments of just how important it is to talk about something else during the holidays, say attorneys with King & Spalding LLP.

  • Building Momentum For The Pay Equity Movement In BigLaw

    Stephanie A. Scharf

    A decade’s worth of multiple bar association initiatives, conferences, corporate law summits, detailed research reports and opinion pieces on the pay gap has seemingly fallen on the deaf ears of BigLaw. However, recent events presage substantial movement toward pay equity in law firms, say Stephanie Scharf of Scharf Banks Marmor LLC, Michele Coleman Mayes, general counsel for the New York Public Library, and Wendi Lazar of Outten & Golden LLP.

  • SEC Actions Against Investment Advisers In 2016: Part 3

    Jon Eisenberg

    In the final installment of this three-part series discussing the U.S. Securities and Exchange Commission’s enforcement actions against investment advisers in 2016, Jon Eisenberg of K&L Gates LLP reviews actions involving custody violations, safeguarding client information, business continuity, the Foreign Corrupt Practices Act, and firm procedures and individual supervision.

  • Keeping Pro Se Litigants At Bay

    Michael Walden

    Pro se litigation can be a time-consuming cost of doing business, particularly for large, well-known companies. Though pro se cases occasionally include interesting, even amusing, claims, like all litigation, they must be taken seriously. In this article, attorneys from Shook Hardy & Bacon LLP detail several practical approaches to dealing with the problems posed by pro se litigants.

  • SEC Disgorgement Issue Ripe For High Court Review

    Nicolas Morgan

    The U.S. Securities and Exchange Commission recently joined in on a request that the U.S. Supreme Court review a long-simmering issue: Does the Section 2462 five-year statute of limitations apply to SEC disgorgement claims? The lack of clarity poses a substantial risk for litigants on both sides of an SEC enforcement action, say attorneys with Paul Hastings LLP.

  • SEC Actions Against Investment Advisers In 2016: Part 2

    Jon Eisenberg

    In the second installment of this three-part series, Jon Eisenberg of K&L Gates LLP discusses nine different types of enforcement actions brought against investment advisers in 2016, including those related to best execution, principal trades and agency cross trades, and insider trading.

  • SEC Actions Against Investment Advisers In 2016: Part 1

    Jon Eisenberg

    In the first part of this three-part series, Jon Eisenberg of K&L Gates LLP discusses the U.S. Securities and Exchange Commission's 2016 enforcement actions related to conflicts of interest, fees and expenses, and trade allocations.

  • Are Courts In The Discovery Driver’s Seat?

    Cristin K. Traylor

    I recently asked a panel of four federal court judges whether they expect courts to start taking a more active role in e-discovery. They answered with a resounding yes. However, their responses left me wondering whether courts are actually taking a more active role in discovery since the Federal Rules of Civil Procedure amendments took effect in December 2015, says Cristin Traylor of McGuireWoods LLP.