Asset Management

  • November 20, 2017

    Blank Check Co. Highland Acquisition Pulls $250M IPO

    Highland Acquisition Corp., a blank check company formed by executives of hedge fund Highland Capital Management LP, withdrew plans Monday for a $250 million initial public offering intended to pursue an acquisition in the health care, media, telecommunications, entertainment or energy industries that was filed last year.

  • November 20, 2017

    SEC Judge Refuses To Bar Shkreli Without Tie To Adviser

    A U.S. Securities and Exchange Commission administrative law judge on Friday denied the agency's request to bar Martin Shkreli from the securities industry, saying the agency needs to show whether the so-called pharma bro was associated with an investment adviser at the time he allegedly committed fraud.

  • November 20, 2017

    3 Banks Mount New Effort To Slip 15-Year-Old Enron Suit

    Deutsche Bank, Credit Suisse and Merrill Lynch have asked a New York federal judge to rule in their favor and reject what remains of a 2002 lawsuit by Enron Corp. bond buyers that accuse the banks of helping Enron cook its books, saying they could not be made to pay for the energy giant’s collapse.

  • November 20, 2017

    LaSalle Investment Management Closes $1B Real Estate Fund

    LaSalle Investment Management has closed a real estate debt fund with £804 million ($1.06 billion) in aggregate commitments, surpassing the firm's target by more than £50 million, according to a Monday announcement from the company.

  • November 20, 2017

    Yahoo Tells 9th Circ. SEC Order Blocks Derivative Suit

    Yahoo Inc. shouldn’t have to face a shareholder derivative suit alleging that it failed to register as an investment company once its Alibaba Group Holding Ltd. stake outweighed its internet business, it told the Ninth Circuit on Friday, saying that an exemption order by the U.S. Securities and Exchange Commission cannot be reviewed by the court.

  • November 17, 2017

    CFTC Gets $4.5M Default Judgment In Investor Fraud Case

    The U.S. Commodity Futures Trading Commission said Friday it has obtained a default judgment requiring a California man and his company to pay more than $1.1 million in restitution and nearly $3.4 million in penalties over allegations that they duped investors and misappropriated their money as part of a commodity pool fraud.

  • November 17, 2017

    Tax Bill’s Ambiguity Increases Investors’ Litigation Risk

    The tax bill that recently passed the U.S. House of Representatives is missing key definitions and contains ambiguous terms relating to the use of so-called carried interest in the asset management business, which could result in investors taking risky positions on their tax returns to seek clarification from the courts.

  • November 17, 2017

    SEC Says F-Squared Founder Owes $13M

    The U.S. Securities and Exchange Commission asked a Massachusetts federal judge Friday to levy a $13 million penalty on the ex-CEO of defunct stock-picking company F-Squared after a jury found him liable for lying about his company’s flagship investment product’s actual track record.

  • November 17, 2017

    Del. Court Nails Down $12B Student Loan Trust Control

    Attorneys battling over control of $12 billion worth of investment trusts holding 800,000 securitized student loans moved Friday to settle a key ownership impasse that snarled disputes in multiple courts over slipshod loan management and unsupported default and collection lawsuits.

  • November 17, 2017

    Trader Wants SEC Attys DQ’d Over Alleged Privilege Breach

    A trading firm that the U.S. Securities and Exchange Commission sued for allegedly giving foreign fraudsters access to U.S. markets asked a federal court in Manhattan on Thursday to throw the SEC’s trial team off the case, saying it seems to have had access to privileged attorney-client emails for two whole years.

  • November 17, 2017

    Taxation With Representation: Andrews, Mayer, Jones, Delaby

    In this week’s Taxation With Representation, Marathon Petroleum dropped down $8.1 billion in assets to its master limited partnership, Caesars Entertainment acquired Centaur for $1.7 billion, Shanghai Pharma snapped up the China business of Cardinal Health for $557 million, and OMERS bought Trescal in a $788.6 million deal.

  • November 16, 2017

    Big Banks Face Wider Treasury Auction-Fixing Suit

    A lawsuit accusing 20 of the biggest Wall Street banks of rigging the $13 trillion market for securities sold by the U.S. Department of the Treasury was expanded late Wednesday night with the filing of an amended complaint that alleges two interrelated conspiracies.

  • November 16, 2017

    Broker-Dealer Can't Shake Bulk Of 'Hamilton' Resale Suit

    A New York federal judge kept most of investors' $1.8 million suit over losses tied to an alleged $95 million Ponzi scheme based on “Hamilton” ticket resales, agreeing Thursday to cut claims about price manipulation but letting the bulk of the suit stay alive.

  • November 16, 2017

    DOL, First Bankers Strike $16M Deal Settling 3 ERISA Suits

    First Bankers Trust Services Inc. has agreed to pay nearly $16 million to resolve a set of lawsuits alleging it breached its fiduciary duties under the Employee Retirement Income Security Act in purportedly letting three employee stock ownership plans overpay for their own companies’ stock, the U.S. Department of Labor said Thursday.

  • November 16, 2017

    Shkreli Auditor Says Investor Settlements Seemed Legit

    An auditor who did work for Martin Shkreli-founded Retrophin Inc. on Thursday told jurors in the trial of the controversial pharmaceutical executive’s former Katten Muchin attorney that he didn’t believe there was anything wrong with a series of settlements with investors in Shkreli's MSMB hedge funds that prosecutors say were fraudulent.

  • November 16, 2017

    ChinaCast Ch. 11 Confirmation Delayed Over Filing Issues

    The judge presiding over the bankruptcy case of ChinaCast Education Corp. abruptly adjourned the company's Chapter 11 plan confirmation hearing on Thursday, finding the debtor’s last-minute request for approval of a shareholder settlement and a post-petition financing adjustment troubling.

  • November 16, 2017

    PBGC Blasts Pilots' Fiduciary Breach Claims At DC Circ.

    The Pension Benefit Guaranty Corp. asked a D.C. Circuit panel Thursday to quash a breach of fiduciary duty claim from former Delta Air Lines Inc. pilots who say the government agency intentionally miscalculated their benefits when it took on their pension commitments as part of the airline’s 2016 bankruptcy.

  • November 16, 2017

    $120M Barclays Deal Attys Reduce Fee Request By $8M

    Lawyers who sought 30 percent of a $120 million settlement they struck with Barclays PLC for investors who accused the bank of manipulating the London Interbank Offered Rate told a New York federal judge on Wednesday that they’d accept just 20 percent of the settlement pot for now after she raised questions about the payout.

  • November 16, 2017

    UK Trust Spends £32M On New Maldron Hotel In Newcastle

    UK Commercial Property Trust Ltd. said Thursday it has made its first acquisition in the hospitality space with the £32 million ($42 million) purchase of a new 265-room Maldron hotel now under construction in Newcastle, England.

  • November 16, 2017

    Prosecutors, SEC Say Investor Conned $1.4M From Retiree

    A former investment adviser defrauded a retiree out of about $1.4 million and used the money to pay off clients and family and buy a Bentley, federal prosecutors and the U.S. Securities and Exchange Commission have each alleged.

Expert Analysis

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.

  • 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.

  • 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.

  • Financial Crisis Anniversary

    2 Pillars Of Commonsense Reform

    Norm Champ

    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.