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Asset Management
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March 27, 2025
Russian Oligarch-Linked Firm Owner Can't Shake SEC's Claim
A New York federal judge has declined to toss claims brought by the U.S. Securities and Exchange Commission against an investment firm owner who allegedly managed a Russian oligarch's wealth in America without ever registering with the SEC as required.
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March 27, 2025
Standing Emerges As Key Front In ERISA Health Fee Battles
The recent dismissal of a suit brought by former Wells Fargo workers who claimed high prescription drug costs violated federal benefits law shows the ability to establish standing emerging as a key stumbling block for Employee Retirement Income Security Act suits alleging excessive health fees, experts say.
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March 27, 2025
Ex-Atty Ran $840M Tax Evasion Scheme, DOJ Says
A former tax and real estate attorney ran a nationwide scheme that helped his customers avoid paying taxes on as much as $840 million in capital gains, the federal government told an Idaho federal court Thursday.
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March 27, 2025
FINRA Improperly Acts As Government Agency, 6th Circ. Told
The owner of a consulting company has urged the Sixth Circuit to overturn a decision by the U.S. Securities and Exchange Commission affirming sanctions imposed by the Financial Industry Regulatory Authority for alleged securities fraud, arguing that FINRA never had jurisdiction over him.
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March 27, 2025
Atkins Suggests He May Open SEC's Doors To DOGE
Paul Atkins, President Donald Trump's pick to lead the U.S. Securities and Exchange Commission, on Thursday appeared to welcome the potential arrival of Elon Musk's Department of Government Efficiency at the agency, while also pushing back on suggestions that his earlier votes as a Republican commissioner exacerbated the 2008 financial crisis.
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March 27, 2025
CalSTRS, Mubadala Plug $215M Into Real Estate Lender
Alternative commercial real estate lender 3650 Capital, advised by Sidley Austin LLP, on Thursday announced that it has secured $215 million in fresh capital commitments from existing investors California State Teachers' Retirement System and Mubadala Investment Company.
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March 27, 2025
Align Capital Clinches Inaugural Collaborate Fund At $233M
Kirkland & Ellis LLP-led Align Capital Partners on Thursday announced that it closed its inaugural independent sponsor-focused fund after securing $233 million of investor commitments.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
Crypto Co. CEO Must Face Suit Alleging Refund Fraud
The CEO of Power Block Coin LLC, which does business as SmartFi, must face a suit accusing him and the company of refusing to fulfill their "buyback guarantee" of its SmartFi tokens, with a Pennsylvania federal court ruling that the plaintiffs have sufficiently alleged that the CEO promised SmartFi would refund investors their money.
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March 26, 2025
Standard General's $4.6B Bally's Buy Draws Del. Court Suit
Hedge fund Standard General LP and its founder Soohyung Kim pulled the strings on Bally's Corp.'s $4.6 billion sale, grabbed control of the post-transaction entity and ultimately hurt stockholders, investors claim in a proposed class action filed Monday in Delaware Chancery Court.
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March 26, 2025
Atty's Falsehoods In Key Docs Aided $23M Fraud, Suit Says
A pair of investment funds and two investors have hit a lawyer with professional malpractice and misrepresentation claims in Illinois federal court, accusing him of making false statements in solicitation documents to help their since-convicted managing member carry out a $23 million fraud.
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March 26, 2025
Atkins' Industry Ties To Be Under Scope At SEC Nom Hearing
President Donald Trump's pick to lead the U.S. Securities and Exchange Commission is expected to receive a friendly reception from Republican senators at his confirmation hearing on Thursday, but one leading Democrat has promised to press Paul Atkins on his ties to industry and the conflicts that could create.
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March 26, 2025
3 Firms Guide Nuclear Power Startup's $925M SPAC Merger
Nuclear power developer Terrestrial Energy Inc. plans to go public by merging with special purpose acquisition company HCM II Acquisition Corp. at a $925 million equity value under guidance from three law firms, both parties announced Wednesday.
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March 26, 2025
Ga. Judge Orders 3 To Pay $1.4M In SEC's Ponzi Scheme Suit
A Georgia federal judge has ordered three investment advisers to pay, in total, more than $1.4 million in monetary relief over their alleged roles in a Ponzi scheme involving a private equity fund named Horizon Private Equity III.
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March 26, 2025
Trump Pardons Ex-Hunter Biden Biz Pal For Tribal Bond Fraud
President Donald Trump pardoned a former business partner of Hunter Biden who was convicted of helping to execute a $60 million bond scam against a South Dakota tribal corporation, saying he believes the former venture capital and private equity fund investor was treated unfairly.
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March 26, 2025
NYC Property Cos. Hit With Security Deposits Class Action
A proposed class of residential tenants accused a property manager and a property owner in New York federal court on Wednesday of violating state law by not placing their security deposits in accounts that would accrue interest and paying security deposits without accrued interest after the tenants moved out.
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March 26, 2025
Court Holds On Tight To 'What I Like About You' Band's Row
A Michigan federal judge said Wednesday the lead singer of The Romantics must face a bandmate's demands for a detailed accounting of the band's finances and allegations the singer has been withholding royalties and revenue from performances from a shared company.
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March 26, 2025
Fintech Biz Hits $3.5B Valuation After $300M Funding Round
San Francisco-based fintech company Mercury, advised by Freshfields LLP, on Wednesday announced that it reached a $3.5 billion valuation after completing a $300 million Series C investment round led by venture capital giant Sequoia Capital.
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March 26, 2025
Toronto Exchange Says Court In Texas Can't Hear TM Suit
The Toronto Stock Exchange says a Texas federal court lacks jurisdiction over the Texas Stock Exchange's trademark lawsuit, telling the court it only submitted a cease-and-desist letter to stop the nascent stock exchange from using allegedly similar marks.
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March 26, 2025
Willkie Securities Enforcement Leader Joins Simpson Thacher
A former co-chair of Willkie Farr & Gallagher LLP's securities enforcement practice has moved to Simpson Thacher & Bartlett LLP in Washington, D.C., Simpson Thacher said Wednesday.
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March 26, 2025
Olympus Partners Raises $3.5B For 8th PE Fund
Connecticut-based private equity firm Olympus Partners on Wednesday announced that it has raised $3.5 billion for its eighth institutional private equity fund.
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March 26, 2025
Alerus Evades Challenge To $7.2M Employee Stock Plan Sale
A California federal judge cut employee stock ownership plan trustee Alerus Financial loose from a proposed class action brought by telecommunications company workers who claimed they got shortchanged when their shares were sold in a $7.2 million deal, saying they failed to connect Alerus to the sale.
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March 26, 2025
Enterprise Browser Co. Valued At $4.8B After Funding Round
Enterprise browser company Island on Wednesday revealed that it reached a $4.8 billion valuation after closing its most recent financing round with $250 million in tow.
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March 25, 2025
Amazon Slams 'Alternative Reading' Of ERISA In Worker Suit
Amazon on Monday urged a Washington federal court to throw out a worker's proposed class action alleging that Amazon used abandoned retirement plan funds to offset its own contributions, arguing that the suit's "alternative reading" of the Employee Retirement Income Security Act "flies in the face of" the well-established practice.
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March 25, 2025
Fix It Early, Do Your Homework: Bank Legal Chiefs Share Tips
Deutsche Bank's chief legal officer advised firms facing regulatory investigations to begin the remediation process sooner rather than later in a Tuesday panel featuring the legal chiefs for some of the world's biggest banks discussing lessons they've learned and their relationships with outside counsel.
Expert Analysis
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Nvidia Case's Potential Impact On Securities Class Actions
In Nvidia v. Ohman Fonder, the U.S. Supreme Court could strip lower courts of their long-standing ability and obligation to holistically weigh all relevant facts supporting plaintiffs' allegations of securities fraud, which would have a wide-ranging impact on securities fraud class actions in the U.S., say attorneys at Labaton Keller.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Short-Seller Implications Of 10th Circ.'s Overstock Decision
The Tenth Circuit's Oct. 15 decision in Overstock Securities Litigation provides clarity on the pleading standard for a market manipulation claim under the Exchange Act, and suggests that short sellers might not be able to rely on the fraud-on-the-market presumption typically invoked by securities plaintiffs, say attorneys at Paul Weiss.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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Why Diversity Jurisdiction Poses Investment Fund Hurdles
Federal courts' continued application of the exacting rules of diversity jurisdiction presents particular challenges for investment funds, and in the absence of any near-term reform, those who manage such funds should take action to avoid diversity jurisdiction pitfalls, say attorneys at Sher Tremonte.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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CFTC Anti-Fraud Blitz Is A Warning To Carbon Credit Sellers
With its recent enforcement actions against a carbon offset project developer and its senior executives for reporting false information about the energy savings of the company's projects, the Commodity Futures Trading Commission is staking out its position as a primary regulator in the voluntary carbon credit market, say attorneys at Morgan Lewis.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.