Asset Management

  • October 13, 2017

    Susman, Entwistle To Lead Valeant Insider Trading Suit

    Entwistle & Cappucci LLP and Susman Godfrey LLP on Friday nabbed the co-lead counsel spots in a consolidated proposed class action alleging Valeant Pharmaceuticals and billionaire investor Bill Ackman’s hedge fund engaged in an insider trading scheme that cost derivatives investors billions.

  • October 13, 2017

    Citibank's $1.74B Settlement With Lehman Gets Court's OK

    Citibank NA's agreement to return $1.74 billion to the Lehman Brothers estate and cut short a trial over closeout calculations for derivatives trades that went into default after Lehman's collapse is sealed, as the New York bankruptcy judge who oversaw the monthslong trial happily signed the deal on Friday.

  • October 13, 2017

    IHeart Investors Lose Texas Appeal Over $516M Stock Move

    Media company iHeart Communications Inc. didn’t violate contracts with investment funds that lent it billions when it transferred $516 million in stock from one subsidiary to another, a Texas appellate panel ruled Wednesday, finding those contracts didn’t require the transfers to have a profit motive.

  • October 13, 2017

    Utah Man To Pay $9.1M To Settle SEC's Fraud Claims

    A Utah man has agreed to cough up more than $9.1 million to the U.S. Securities and Exchange Commission to settle the agency’s claims that he and his now-defunct company Silverleaf Financial LLC duped investors out of money raised to purchase defaulted loans on property in Florida and Colorado.

  • October 13, 2017

    BNY Mellon Loses 2nd Bid To Toss Commerzbank's RMBS Suit

    A New York federal judge won’t rethink his decision to give a green light to some of Commerzbank AG’s claims in its suit over the Bank of New York Mellon’s alleged bungling of duties to a slew of residential mortgage-backed securities trusts and a collateralized debt obligation, saying Thursday that he applied the right legal standard.

  • October 13, 2017

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen a new fraud suit against German entrepreneur Lars Windhorst, a Financial List claim from an asset financing firm and a suit against the London unit of Indian asset manager IIFL Wealth. Here, Law360 looks at those and other new claims in the U.K.

  • October 12, 2017

    CFTC Says 3 Men Raised $3.1M In Commodity Pool Fraud

    The U.S. Commodity Futures Trading Commission said Wednesday that it has sued three men in California federal court over an alleged fraud that took in more than $3.1 million from dozens of investors in two commodity pools, accusing the men of fraudulent solicitation, misappropriation, fabricating records and other misconduct.

  • October 12, 2017

    Del. Justices Nix Revival Of $1B IHeartMedia Debt Suit

    Delaware's Supreme Court refused Thursday to revive an investor's derivative claim that Clear Channel Outdoor Holdings' directors breached their duty to the company by failing to seek repayment of $1 billion in debts owed by majority owner iHeartMedia.

  • October 12, 2017

    ERISA Time Limits Can Be Waived, 11th Circ. Says

    The Eleventh Circuit on Thursday ruled that a limitations period for bringing claims under the Employee Retirement Income Security Act for a breach of fiduciary duty can be waived.

  • October 12, 2017

    Deutsche Says It Can Fund Defense From Disputed Trusts

    Deutsche Bank National Trust Co. on Tuesday urged a New York federal judge to toss a proposed class action alleging that it’s improperly dipping into 10 residential mortgage-backed securities trusts it oversees to pay for its defense in a separate suit brought over its handling of those same trusts.

  • October 12, 2017

    8th Circ. Panel Hands US Bank Win In ERISA Suit

    The majority of an Eighth Circuit panel on Thursday backed a lower court’s dismissal of a suit from two U.S. Bank retirees challenging the management of a defined benefit pension plan, saying the plan has become overfunded.

  • October 12, 2017

    LendingClub Investors Poised To Win Cert. Over Objections

    A California federal judge Thursday said he will likely certify a class of LendingClub Corp. investors who allege the peer-to-peer lending company hid defects in its internal controls before and after its $1 billion initial public offering, over objections from both the company and investors pursuing separate state law claims.

  • October 12, 2017

    Saudi Oil Investor Wants $2M Palantir Shares Unfrozen

    Saudi Arabian energy businessman Tarek Obaid, whose company PetroSaudi is said by prosecutors to be tied up in the 1MDB embezzlement scandal, told a California federal judge Wednesday that his $2 million worth of shares in tech firm Palantir Technologies was not bought with laundered money and should be unfrozen.

  • October 12, 2017

    Investors Want $152M In Libor Settlements Approved

    Exchange-based investors told a New York federal judge on Wednesday that they want approval of $151.9 million in settlements reached with several banks in multidistrict litigation that alleges a sprawling scheme to manipulate the London Interbank Offered Rate benchmark.

  • October 12, 2017

    Ex-Trader Asks 2nd Circ. To Renew Fight Against $20M Award

    A former Canadian securities trader has urged the Second Circuit to clear the way for his battle to overturn a $20 million arbitration award against him and his previous employer for allegedly tricking a trading company into buying doomed stock, arguing that the case must be remanded to a state court because he has dropped all federal claims.

  • October 12, 2017

    Barclays Urges 9th Circ. Not To Revive Dark Pool Suit

    Barclays Capital Inc. on Wednesday asked the Ninth Circuit not to revive a proposed class action from a broker-dealer that alleges it was misled about the risks of trading on a dark pool, saying that two lower court judges correctly concluded that Great Pacific Securities lacked a legal leg to stand on.

  • October 11, 2017

    9th Circ. Hears Round 3 In Northstar Suit Over Schwab Fund

    Northstar Financial Advisors Inc. went before the Ninth Circuit on Wednesday for its third appeal in a putative class action claiming Charles Schwab Corp. broke its own rules for making risky bond-fund bets, arguing that a lower court erred in finding the class claims were barred by the federal Securities Litigation Uniform Standards Act.

  • October 11, 2017

    Investors Seek Del. Revival Of iHeartMedia Debt Challenge

    Investors in a subsidiary of debt-burdened iHeartMedia Inc. told Delaware’s Supreme Court Wednesday that the Chancery Court had erred when it dismissed their challenges to using the unit as a cash cow to help out the parent company on the grounds the issue had already been decided.

  • October 11, 2017

    SEC Says Attys Sent Fraudulent Penny Stock Opinion Letters

    The U.S. Securities and Exchange Commission sued two lawyers Wednesday, including one who was arrested and criminally charged, saying they wrote dozens of fraudulent opinion letters that enabled a ring of criminals to set up and flip public companies for use in pump-and-dump scams.

  • October 11, 2017

    Columbia Property Trust Grows With $935M In Acquisitions

    Columbia Property Trust Inc. on Wednesday said it has acquired four properties in New York and Washington, D.C., for a total of $935 million, following on the heels of its joint venture with the real estate arm of German insurance giant Allianz SE announced earlier this year.

Expert Analysis

  • Protecting Securities Fraud Recoveries Post-ANZ

    Blair Nicholas

    Under the U.S. Supreme Court's decision in ANZ Securities, the statute of repose serves as an absolute time bar to individual class members’ institution of new, individual actions. But the decision also provides a clear directive to institutional investors and their fiduciaries to implement practices and procedures to ensure that valuable securities recoveries are not lost to the statute of repose, say Blair Nicholas and Dave Kapla... (continued)

  • Top 3 Political Law Risks For Investment Firms

    Robert Kelner

    Rules governing political activities are often not intuitive, and failure to comply can result in big penalties, loss of business, and debilitating reputational consequences. Here, attorneys with Covington & Burling LLP describe three sometimes-overlooked risk areas for investment firms and steps firms can adopt to avoid these common compliance traps.

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.

  • A Look At SEC’s Rules Of Practice, A Year After Amendments

    Terence Healy

    The U.S. Securities and Exchange Commission's amended rules of practice — which became effective one year ago — provide little added procedural benefits for respondents and suffer from a general lack of clarity, say Terence Healy and Elizabeth Solander of Hughes Hubbard & Reed LLP.

  • Why Kokesh Really Matters

    Matthew Martens

    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.

  • Extending CalPERS V. ANZ Securities To Exchange Act Cases

    Alan Glickman

    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.

  • Opinion

    Digital Realty Trust V. Somers May Kill Corporate Compliance

    Stephen Kohn

    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.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    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.

  • 'Per-Doc' Pricing Can Improve Document Review

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    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.

  • CFIUS Continues To Present Obstacle To Chinese Acquisitions

    Brendan Hanifin

    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.