Asset Management

  • April 3, 2017

    $25M Settlement Sought In $2.5B Junk Bond Fund Meltdown

    Class attorneys for a consolidated lawsuit claiming the 2015 closing and attempted liquidation of Third Avenue Focused Credit Fund cost investors more than $2.5 billion on Friday asked the Delaware Chancery Court to approve a $25 million settlement.

  • April 3, 2017

    3 Firms Steer Marriott-Trinity-Oaktree $317M Hotel Deal

    Latham & Watkins LLP represented Marriott International on its roughly $317 million sale, announced Monday, of a long-term leasehold for the Westin Maui Resort & Spa in Ka'anapali Beach, Hawaii, to a venture of Trinity Investments LLC- and Oaktree Capital Management LP-managed funds that had counsel from Paul Hastings LLP and Gibson Dunn & Crutcher LLP.

  • April 3, 2017

    Biz Groups Tell 5th Circ. Fiduciary Rule Delay Not Enough

    A coalition of business groups suing over the U.S. Department of Labor’s fiduciary rule for retirement account advisers told the Fifth Circuit on Friday that the agency’s “patchwork relief plan” isn’t enough to forestall damage from the rule, and that staying the rule altogether would benefit the DOL as well.

  • April 3, 2017

    BlackRock, Others Back $2B Deal With Lehman Estate

    Fourteen institutional investors, including a unit of BlackRock Inc., said Monday that the estate of Lehman Brothers Holdings Inc. has offered to pay more than $2 billion to settle a suit over the defunct bank’s failure to repurchase dud mortgages that it sold to investors before the financial crisis.

  • April 3, 2017

    Baker Botts Welcomes Back Ex-FINRA Chief Of Enforcement

    The Financial Industry Regulatory Authority’s former chief of enforcement has returned to Baker Botts LLP’s white collar team after policing Wall Street for six years, the firm announced Monday.

  • April 3, 2017

    Highland Wants AT&T To Reveal Online Commenter's Identity

    Dallas hedge fund Highland Capital Management LP on Friday asked a state court to order AT&T Inc. to reveal the identity of one of its customers who Highland claims defamed it in online comments.

  • April 3, 2017

    Ex-Spurs Star's Adviser Pleads Guilty To Fraud

    Financial adviser Charles Augustus Banks IV pled guilty in Texas federal court Monday to a wire fraud charge over allegations that he duped former San Antonio Spurs player Tim Duncan into guaranteeing a $6 million loan to a sportswear company the adviser controlled.

  • April 3, 2017

    Fund Founder Calls Insider Trading Claim A 'Calculated Lie'

    Level Global Investors LP founder David Ganek again accused federal prosecutors of warping reality in his suit accusing them of using false information to obtain a search warrant against him, telling the Second Circuit on Friday that prosecutors' oral arguments falsely implicated him in an insider trading scheme.

  • April 3, 2017

    REIT LaSalle Hotel Sells 3 Properties For $219M

    LaSalle Hotel Properties has sold a pair of hotels and is under contract to dispose of a third property in California for combined proceeds of $218.9 million, according to an announcement on Monday from the Bethesda, Maryland-based real estate investment trust.

  • April 3, 2017

    Don't Overturn Longtime ALJ Practice, SEC Urges DC Circ.

    The U.S. Securities and Exchange Commission on Friday urged the full D.C. Circuit to reject a challenge to the constitutionality of the agency’s in-house judges, saying there’s no basis for overturning a decades-long administrative practice, after the appellate court agreed to rehear the case.

  • April 3, 2017

    SEC Fires Back In Ex-E&Y Partner's Challenge At DC Circuit

    The U.S. Securities and Exchange Commission pushed the D.C. Circuit on Friday to uphold the agency’s affirmation of penalties against a former Ernst & Young LLP partner, saying the Public Company Accounting Oversight Board’s structure was free of constitutional errors during the case’s original decision.

  • April 3, 2017

    Cowen Group To Expand Reach With $116M Convergex Buy

    New York financial services firm Cowen Group Inc. took another step toward expanding its reach globally on Monday, less than a week after receiving an investment from a Chinese company, with a proposed $116 million cash and stock purchase of trading services company Convergex Group LLC.

  • March 31, 2017

    T. Rowe Must Face Suit Over $388M In Mutual Fund Fees

    A Maryland federal judge on Friday said T. Rowe Price Associates Inc. must face claims that it charged disproportionately large fees to certain mutual funds, causing them to overpay $388 million more in fees on an annual basis, saying the funds asserted plausible allegations.

  • March 31, 2017

    Nomura Trader Says 'Litvak' Should Be Taboo At Trial

    A former trader at Nomura Securities International Inc. accused of secretly padding mortgage bond prices asked a Connecticut federal judge to ban mention of Jesse Litvak, the first trader to face similar charges, at an upcoming trial.

  • March 31, 2017

    Ex-JPMorgan Analyst Can't Duck Deadlock Charges, Feds Say

    Federal prosecutors on Thursday told a California court a former J.P. Morgan Securities analyst can’t escape four deadlocked counts from his January insider trading acquittal on double jeopardy grounds.

  • March 31, 2017

    IOSCO Enhances Int'l Cooperation Standards For Enforcement

    The International Organization of Securities Commissions, a global body of securities regulators, said Friday that it approved a new agreement enhancing the standards for cooperation between regulators fighting cross-border financial fraud and misconduct.

  • March 31, 2017

    Morgan Lewis Axed By Client Over Ties To Trump

    An investment fund has fired Morgan Lewis & Bockius LLP as its outside counsel over the law firm’s handling of President Donald Trump’s business divestitures, saying in a recent letter to chair Jami Wintz McKeon that the firm’s work has enabled and legitimized “ethical carnage.”

  • March 31, 2017

    Ex-Exec Ducked Cleanup Obligations In CERCLA Suit

    The former CEO of REM Investments Inc. can’t escape a Comprehensive Environmental Response, Compensation, and Liability Act lawsuit alleging he repeatedly shirked a court order to remove contaminants from one of REM’s former manufacturing sites sitting near a public drinking water well, an Ohio judge ruled on Thursday.

  • March 31, 2017

    Standard General Open To Settling Charney Coverage Suit

    After a California appeals court slapped down a bid by American Apparel Inc. founder Dov Charney to revive his defamation suit against hedge fund Standard General LP, the fund and Travelers Indemnity Co. told a New York federal judge on Friday of brightened prospects for settling their dispute over covering defense costs in the California action.

  • March 31, 2017

    Peabody Energy ERISA Case Gets Tossed By Missouri Judge

    A Missouri federal judge on Thursday tossed a putative class suit made up of participants and beneficiaries in three Peabody Energy Corp. retirement plans that invested in company stock that took a nosedive, saying that arguments that fiduciaries were negligent and behaved poorly didn’t meet the high bar set by the Employee Retirement Income Security Act.

Expert Analysis

  • Post-Spokeo Issues Emerge In The 5th Circ.

    Christopher Chorba

    Although the Fifth Circuit and its district courts have addressed Spokeo issues numerous times since the U.S. Supreme Court issued its decision, Spokeo’s future in the Fifth Circuit remains unclear. Recent opinions underscore that litigants should be prepared to argue not only about Spokeo’s significance for pre-existing case law, but also the scope of its applicability, say attorneys with Gibson Dunn & Crutcher LLP.

  • Law Firm Margin Improvement: The Long Game

    Jack Diggle

    For all the lessons learned since 2008, it's surprising that margin management remains so tactical, rather than an ongoing strategic endeavor, for law firms. The firms that will survive and thrive must invest in ongoing margin-improvement capability, which will combine enhanced business- and change-management skills and take a long-term view to drive out the more difficult changes, says Jack Diggle of Elevate Services Inc.

  • DOJ Criminal Division In 2016: Fraud Section Rising

    Kevin B. Muhlendorf

    A brief year-in-review document recently released by the U.S. Department of Justice provides a useful overview of what the Criminal Division’s largest litigating section accomplished in the last year and important hints at what the future holds for individuals and entities whose activities come within the Fraud Section’s broad reach, says Kevin Muhlendorf, a partner at Wiley Rein LLP and former federal prosecutor.

  • Inside The CFTC’s New Advisories On Cooperation

    David Meister

    The U.S. Commodity Futures Trading Commission’s recent advisories on cooperation indicate how enforcement priorities have changed over time. But for all the additional guidance that these new advisories give, one of the most important pieces of information to potential cooperators is still missing, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • 2017 Check-Up: Is Your Law Firm Positioned For Success?

    William G. Johnston

    Over the next few weeks, a slow trickle of news about one measure of law firm success — law firm financial results — will gradually become a flood as more firms open up about their performance in 2016. Law firm leaders would be wise to focus on nine factors that determine success, says law firm management consultant William Johnston.

  • The Missing Key To 3rd-Party Litigation Funding

    Tripp Haston

    Unlike other forms of commerce and unlike in other nations, litigation investment and funding in the U.S. is largely unregulated with few disclosure requirements. Where darkness exists, ignorance and mistrust breed. Disclosure and transparency in litigation investment and funding is the first and proper step to better understand this opaque dynamic in the U.S. civil justice system, says Tripp Haston of Bradley Arant Boult Cummings LLP.

  • Missing Pension Plan Participants: Gone But Not Forgotten

    Benjamin F. Spater

    There are many practical challenges associated with the timely payment of benefits to participants, especially when individuals are unresponsive and presumed missing. Last year, both the U.S. Department of Labor and the IRS showed an increased interest in this area and the Pension Benefit Guaranty Corporation recently proposed regulations expanding its missing participants program, say Benjamin Spater and Susan Quintanar of Trucker Huss APC.

  • The Short-Swing Profit Rule And Its Impact

    Video thumbnail

    In this short video, Eleazer Klein and Michael Swartz of Schulte Roth & Zabel LLP address how short-swing profit litigation is affecting hedge funds and talk about recent cases brought against fund managers.

  • FINRA Is Ready To Focus On 'Blocking And Tackling'

    Brian.Rubin.jpg

    The preliminary data for 2016 indicates that last year was a record-setting year for Financial Industry Regulatory Authority fines. To try to prevent 2017 from setting similar records, firms may want to adjust their defensive line, say attorneys with Eversheds Sutherland (US) LLP.

  • Hart-Scott-Rodino Considerations For 2017

    Alycia Ziarno

    Fiscal year 2016 ended with a record $12.85 million in civil penalties imposed for alleged violations of the Hart-Scott-Rodino Act, dwarfing the $3.8 million assessed the previous year. And companies and investors face the possibility of higher maximum civil penalties if they violate the HSR Act in FY 2017, say Alycia Ziarno and Brian Whittaker of Nixon Peabody LLP.