Asset Management

  • January 11, 2017

    CFTC Hits JPMorgan With $900K Penalty Over Clearing Fees

    The U.S. Commodities Futures Trading Commission announced Wednesday that it has penalized J.P. Morgan’s securities division for failing to ensure customers weren’t being overbilled for clearinghouse fees on orders placed on the Chicago Mercantile Exchange and other exchanges.

  • January 11, 2017

    Visium GC Rips Lax Compliance At Outset Of Fund Fraud Trial

    Visium Asset Management LP general counsel David Keily told a Manhattan federal jury Wednesday that hedge fund brass made little or no effort to comply with guidelines for properly valuing debt securities during the years in which prosecutors say former portfolio manager Stefan Lumiere schemed to overvalue a $480 million debt fund.

  • January 11, 2017

    Hersha Closes On $62M DC-Area Hotel Sale

    Philadelphia-based real estate investment trust Hersha Hospitality Trust said Wednesday it has closed on its sale of two D.C. metro-area hotels, reaping $62 million, and has extended the closing period on three properties the company is selling in the western U.S.

  • January 11, 2017

    Funds Get OK On $4.2M Northern Trust Negligence Settlement

    An Illinois federal judge on Wednesday approved a $4.2 million settlement of a class action brought by retirement funds against Northern Trust Co., closing the door on nearly eight years of litigation over the company's investment of fund money in Lehman Brothers Holdings Inc. and CIT Group Inc. shares.

  • January 11, 2017

    Fisker Trustee Can’t Knock Down Investor Claims

    A Delaware bankruptcy judge said Tuesday that the trustee for Fisker Automotive cannot back-burner $14 million in claims by certain investors who owned membership stakes in the bankrupt electric-car maker, finding the investors' interests were not directly issued by the company and were outside its control.

  • January 11, 2017

    REIT Hospitality Properties Prices $600M In Bonds

    Hospitality Properties Trust said Tuesday that it has priced a $600 million underwritten public offering of senior notes with guidance from Sullivan & Worcester LLP, which the real estate investment trust will look to use to pay down debt.

  • January 11, 2017

    CFTC Gets Default Judgment Against ‘Flash Crash’ Firm

    An Illinois federal judge has granted the U.S. Commodity Futures Trading Commission’s motion for a default judgment against the firm run by a U.K. futures trader who pled guilty to charges over the 2010 Wall Street “flash crash,” putting the firm on the hook for the trader’s $38.6 million fine.

  • January 11, 2017

    RAIT Financial Sheds $109M In Residential Assets

    RAIT Financial Trust on Tuesday said that it has recently sold four apartment properties in separate deals totaling $109.2 million, as the real estate investment trust looks to focus on its lending business and reduce debt.

  • January 11, 2017

    Brookfield Outlines Handful Of TerraForm Takeover Proposals

    Brookfield Asset Management has laid out several alternative acquisition proposals for TerraForm Power, as the Canadian alternative asset manager continues its monthslong pursuit of bankrupt solar company SunEdison’s yieldco, according to a Tuesday regulatory filing.

  • January 10, 2017

    2nd Circ. Waves Off Cayman-Related Case Until Other Ruling

    The appeal of a summary judgment in favor of a woman accused of stealing her former employer’s customer database was ordered held in abeyance by the Second Circuit Tuesday until a related appeal of a case that has roots in the Cayman Islands is decided.

  • January 10, 2017

    Hotel Exec Must Face Suit Over $850K First Farmers Payment

    An Illinois federal judge on Tuesday refused to dismiss an offshoot of the $179 million First Farmers Financial fraud, in which the receiver managing the scam's aftermath accused a hospitality company executive of collecting an undeserved $850,000 from the loan company’s owner.

  • January 10, 2017

    NY High Court Says Oral Contract OK For Securities Trades

    New York State’s highest court has slapped down an earlier state appellate division ruling against investment firm Stonehill Capital Management that permitted parties to back out of agreed-upon securities trades without a written sales agreement, saying oral or emailed agreements are sufficient.

  • January 10, 2017

    Lehman Bros., US Reach Deal In $67M Foreign Tax Credit Row

    Lehman Brothers Holdings Inc. and the U.S. government have settled a dispute over a $67.1 million federal tax refund claimed by the bankrupt investment firm for United Kingdom taxes, with Lehman Brothers getting a tenth of that figure while dodging more than $18 million in related penalties.

  • January 10, 2017

    Prison Looms As 2nd Circ. Denies 'Mini-Madoff' Aide Bail

    The Second Circuit on Tuesday denied the bail pending appeal motion of a New York woman convicted in the Agape World Inc. Ponzi scheme run by a man dubbed the "mini-Madoff," dashing the woman’s hopes on the day before she was scheduled to report to federal prison.

  • January 10, 2017

    Forex Fraudsters Shell Out Nearly $12M In CFTC Case

    A New York federal court has ordered two alleged fraudsters, one already jailed over a separate scheme, to cough up more than $11 million in penalties after finding they spent investors’ currency trading funds on personal expenses, the U.S. Commodity Futures Trading Commission said on Tuesday.

  • January 10, 2017

    DTCC Embraces Bitcoin Technology For Credit Default Swaps

    Wall Street clearinghouse the Depository Trust & Clearing Corp. plans to rebuild its credit default swaps processing system with one based on blockchain — the same rapid technology that underpins digital currency bitcoin — and is hiring IBM and two startups to lead the project.

  • January 10, 2017

    Canadian Regulators Seek Input On Banning Embedded Fees

    The Canadian Securities Administrators on Tuesday called for comments on a proposal to ban the payment of embedded commissions to dealers by investment funds, a practice regulators say raises issues around investor protection and market efficiency.

  • January 10, 2017

    IRS Needs Clearer Guidance On Unconventional Assets: GAO

    The IRS needs to improve its guidance for managing unconventional assets invested in retirement accounts, including real estate and virtual currency, to help account owners avoid mistakes that could jeopardize their savings, according to a U.S. Government Accountability Office report released Monday.

  • January 9, 2017

    Hedge Fund Pares Movie Co. Founder’s $100M Fraud Suit

    A California judge Monday trimmed a $100 million suit brought by the founder of Modern VideoFilm alleging hedge fund Medley Capital Corp. fraudulently took over the Hollywood postproduction company, saying an aiding and abetting claim was “devoid of any factual allegations.”

  • January 9, 2017

    The Firms That Dominated In 2016

    Law360's Firms of the Year rose above the competition in 2016 by earning a combined 20 Practice Group of the Year awards on the strength of work that helped their clients attain game-changing judgments and close record deals.

Expert Analysis

  • The Horrible Conflict Between Biology And Women Attorneys

    Anusia Gillespie

    Women leave law firms for many of the same reasons men do, but also face challenges including headwinds with respect to assignment delegation and social outings, as well as potential disruptions if they choose to have children. Firms can increase investment in talent management and improve retention and engagement of women attorneys, says Anusia Gillespie of Banava Consulting.

  • 8 Things You Need To Know About EU's Insolvency Proposal

    Howard Morris

    The European Commission is going way beyond its previous Pan-European insolvency project of mutual recognition of insolvency procedures and entering the world of harmonizing laws. The U.K. has to keep pace — and must look west to the U.S., says Howard Morris, senior of counsel in the London office of Morrison & Foerster LLP.

  • Lawyer EQ: Finding Success In Every Interaction

    Judith Gordon

    American legal education relies almost exclusively on analytical thinking. But success in legal practice depends in large part upon an accurate emotional understanding of oneself and the human seated opposite us. Honing emotional intelligence skills can lead to greater success, and Judith Gordon of LeaderEsQ offers a few tools that can be implemented immediately to raise one’s emotional intelligence quotient.

  • Managing Intergenerational Differences Within Your Law Firm

    Najmeh Mahmoudjafari

    We are privileged to be part of an employment market that hosts employees from various generations. While “differences” may imply inherent conflict, intergenerational differences can actually be used to an advantage for organizations — especially law firms, say Najmeh Mahmoudjafari, founder of ImmigraTrust Law, and William Martucci of Shook Hardy & Bacon LLP.

  • 12 Things To Know About The SEC Whistleblower Program

    Jon Eisenberg

    Earlier this year, the U.S. Securities and Exchange Commission’s first chief of the whistleblower program jumped ship to a law firm that specializes in bringing whistleblower claims. The message was clear — SEC whistleblowing is a growing and lucrative area, say Jon Eisenberg and Vince Martinez of K&L Gates LLP.

  • Withholding Changes For Dividend Equivalent Amounts

    Philip Gross.jpg

    Last year, the IRS issued final and temporary regulations pertaining to Section 871(m) of the U.S. Internal Revenue Code, which imposes a 30 percent U.S. withholding tax on dividend equivalent amounts paid or deemed paid on certain swaps and equity linked instruments. Funds should carefully consider the implications, say attorneys from Kleinberg Kaplan Wolff & Cohen PC.

  • The Personal Benefit Test Post-Salman

    Daniel J. Kramer

    In its first opinion addressing the scope of insider trading liability in nearly 20 years, the U.S. Supreme Court limited its holding in Salman to gifts to friends or relatives, providing little clarity about the scope of the personal benefit requirement outside of that context, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • Philip Hirschkop: Quietly Making Noise For 50 Years

    Randy Maniloff

    The first paragraph of Philip Hirschkop’s obituary is going to contain the word "Loving." That’s undeniable. But many of Hirschkop’s other cases are just as groundbreaking in their own right. They aren’t household names like Loving, but they have affected millions in the nation’s households, says Randy Maniloff of White and Williams LLP.

  • SEC Oversight Of Asset Managers: A Decade In The Making

    Julie M. Riewe

    Why have asset managers — and private fund managers in particular — recently come under intense scrutiny? A review of the record suggests that today’s heightened scrutiny dates back to 2004, says Julie Riewe, partner at Debevoise & Plimpton LLP and former co-chief of the U.S. Securities and Exchange Commission's Asset Management Unit.

  • A $650,000 Lesson In Cybersecurity Shortcomings

    Glen Kopp

    Lincoln Financial Securities Corporation's recent settlement with FINRA over the exposure of confidential customer information highlights the need for firms to scrutinize carefully both their own security policies and those of their third-party vendors, say Glen Kopp and Laura Prebeck Hang of Bracewell LLP.