Asset Management

  • 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.

  • January 12, 2017

    Platinum Execs Hid Funds After Raid, Feds Say

    Federal prosecutors said Thursday in Brooklyn that Platinum Partners founder Mark Nordlicht and another executive took steps to divert money invested in the distressed hedge fund for their own benefit, after authorities raided Platinum's offices over a purported $1 billion securities fraud scheme.

  • January 12, 2017

    Funds To Get Hearing Over Puerto Rico Pension System Debt

    The First Circuit has reversed a Puerto Rico federal judge’s refusal to lift an executive order stay for a group of investment funds seeking payments on their stakes in the commonwealth’s pension system, saying they are entitled to a hearing since future employer contributions are not certain.

  • January 12, 2017

    Global Regulators Want More Safeguards For Asset Managers

    Global financial regulators on Thursday released final guidelines that could see asset management firms forced to boost their liquidity, leverage and overall risk management frameworks.

  • January 12, 2017

    FINRA Fines TD Bank Unit Over 3M Undocumented Emails

    The Financial Industry Regulatory Authority on Thursday struck a deal with a TD Bank unit that it says dropped the ball on recording the required review of 3.1 million securities-related emails and messages sent both internally and to clients.

  • January 12, 2017

    SEC OKs Fund Commissions To Help Brokers With DOL Rule

    The U.S. Securities and Exchange Commission issued a no-action letter Wednesday agreeing that broker-dealers can set their own commissions for sales of certain mutual funds, relief that could help brokers and the fund industry adapt to the U.S. Department of Labor’s new fiduciary rule.

  • January 12, 2017

    Citi Pays Overcharged Customers $23M After NY AG Probe

    New York Attorney General Eric Schneiderman on Thursday closed the book on a four-year investigation into a Citigroup subsidiary that revealed over 47,000 customers were overcharged by more than $22.5 million in fees on their managed investment accounts.

  • January 12, 2017

    NY Bankruptcy Court Finds MF Global Insurers In Contempt

    A New York bankruptcy judge Thursday held Ironshore Insurance Ltd. and other insurers in contempt for seeking a Bermuda court’s help blocking litigation accusing them of wrongfully refusing to help pay a massive settlement in connection with MF Global's collapse. 

  • January 12, 2017

    Brokerage's Reporting Policy Lands It In Hot Water With FINRA

    The Financial Industry Regulatory Authority on Wednesday cut a deal with an investment firm that it says misunderstood the Dodd-Frank Act, which allegedly resulted in a lack of supervision over employees’ recommendations to customers to liquidate their securities in order to purchase equity-indexed annuities.

  • January 12, 2017

    ITG Pays $24M To SEC Over Handling Of Foreign Shares

    A unit of Investment Technology Group Inc. agreed to pay more than $24.4 million to the U.S. Securities and Exchange Commission to settle charges it obtained American securities of foreign companies without gaining the underlying foreign shares, the agency announced Thursday.

Expert Analysis

  • Salman Insider Trading Case A Hollow Win For Prosecutors

    Michael Guttentag

    The dominant narrative about Salman v. U.S., the first insider trading case decided by the U.S. Supreme Court in almost 20 years, is that it was a big win for federal prosecutors. That is only part of the story, says professor Michael Guttentag of Loyola Law School.

  • Reputation Management Tips For Asset Managers

    Greg Marose

    Traditional and alternative asset managers need to consider how they will navigate possible enforcement actions under a first-of-its-kind administration that will want to meet the expectations of an anti-establishment base. Now more than ever, mitigating the headline risk associated with regulatory issues is essential, says Greg Marose of Edelman.

  • Fund Liquidation Insurance: A Few Points To Consider

    Neil A. Torpey

    Some private equity and similar investment funds are using fund liquidation insurance rather than holdbacks during windups to cover back-end risks and to enable the efficient distribution of a fund’s proceeds to investors. Attorneys with Paul Hastings LLP offer a primer on such policies and some alternatives.

  • A Practical Assessment Of The 'Universal Proxy Card' Plan

    Gail Weinstein

    Adoption of the proposed rule changes that would require the use of “universal proxy cards” in contested director elections now appears improbable, and in any event, would not have a significant effect on contested proxy elections or activist situations, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Rules Of Civil Procedure Updates Affect E-Discovery

    Patrick Reilly

    On Dec. 1, 2016, the annual updates to the Federal Rules of Civil Procedure went into effect. Revisions include the end of the three-day “mail rule” extension for electronically served discovery, an amendment regarding service of internationally based corporate defendants, and a technical change regarding venues in maritime law actions, say Patrick Reilly and Eldin Hasic of Faegre Baker Daniels LLP.

  • The Path To The California Bench

    Judge George F. Bird

    Ever consider applying for a judicial appointment in California? Get the lay of the land from Judge George Bird of the Los Angeles Superior Court and Kimberly Knill, a senior appellate court attorney for the California Court of Appeal. Additionally, hear what several recent appointees to the LA Superior Court thought of the judicial selection process.

  • CFTC Rulemaking In The Waning Days Of The Obama Era

    Jason P. Gottlieb

    Like many other governmental bodies, the U.S. Commodity Futures Trading Commission may be headed for a shake-up under the new presidential administration in January 2017. Recent proposals in three different areas suggest that the Obama CFTC has decided that its time to act has run out, says Jason Gottlieb of Morrison Cohen LLP.

  • 3 Tips To Avoid Being On The Outs With In-House Counsel


    When trial lawyers fail to recognize the unique challenges faced by in-house counsel, it jeopardizes not only the outcome of the case, but also the opportunities for future representation. These few simple strategies are hardly rocket science, but they are too often neglected, says Matthew Whitley
 of Beck Redden LLP.

  • Restoring Some Certainty Post-Marblegate

    Miranda Schiller

    Following Marblegate, a number of actions have been filed challenging out-of-court restructurings under Section 316(b) of the Trust Indenture Act. Until the Second Circuit decides the pending Marblegate appeal, the Southern District of New York’s decision last week in Cliffs Natural is a useful guidepost, say Miranda Schiller and Agustina Berro of Weil Gotshal & Manges LLP.

  • 4th Circ. Affirms Sanctity Of FINRA Arbitration

    Cory Manning

    Although the case included the type of protracted, expensive and time-consuming judicial review that parties seek to avoid through arbitration before the Financial Industry Regulatory Authority, the Fourth Circuit’s opinion in UBS v. Padussis should dissuade parties from challenging arbitral awards, say Cory Manning and Adam Hegler of Nelson Mullins Riley & Scarborough LLP.