Expert Analysis

• Opinion

  Agentic AI And Securities Law: Steps Congress Should Take

  

  Agentic artificial intelligence technology doesn't fit comfortably into the existing securities regulatory landscape, so Congress should avoid repeating the mistakes that led to the legal uncertainty crypto companies and investors have faced over the past decade-plus by providing a legislative framework before AI fully matures, says Joseph A. Hall at Davis Polk.

• 3 Disgorgement Questions Linger After Justices' SEC Ruling

  

  While the U.S. Supreme Court’s recent decision in Sripetch v. U.S. Securities and Exchange Commission avoided placing new limits on the SEC’s disgorgement powers, it passed over several questions, including whether the commission can seek disgorgement when returning the money to investors isn't possible, says David Slovick at Kopecky Schumacher.

• Checking For AI Errors Is Now A Two-Way Street

  

  A handful of recent federal and state cases demonstrate the importance of checking for errors generated by artificial intelligence not only in your own court submissions, but also your opponent's, as well as when catching opposing counsel's AI mistakes could result in an award for attorney fees, says Tamara Barago at Hollingsworth.

• Opinion

  SEC Enforcement Reforms Must Address Post-Wells Limbo

  

  The U.S. Securities and Exchange Commission's recent changes to how it notifies companies of a potential enforcement action fail to address what happens after the Wells process is over, highlighting the need for meaningful process reform that includes a formal closure determination, says Kimble Cannon at Mahdavi Bacon.

• Lessons For Banks From Recent FCA Enforcement Trends

  

  While government relief programs rely on financial institutions in times of economic uncertainty, recent enforcement shows that a government partnership may not protect banks from liability involving False Claims Act missteps, say attorneys at O'Melveny.

• Series

  The Biz Court Digest: Shoring Up Corporate Law In Maryland

  

  Launched more than 20 years ago to improve complex corporate adjudication, Maryland's Business and Technology Case Management Program has been a solid success in some areas, but there always is room for improvement, says Bill Krulak at Miles & Stockbridge.

• How End Of SEC 'Gag Rule' Affects Free Speech Certiorari Bid

  

  The Securities and Exchange Commission's recent rescission of the so-called gag rule, which forbade defendants in settlements from denying the SEC’s allegations, may sway the outcome of a petition to the Supreme Court in a case challenging the rule on First Amendment grounds, say attorneys at Troutman.

• Banks Should Reassess Warehouse Lines Amid Credit Stress

  

  Growing stress in private credit markets means banks with warehouse lines to nonbank lenders should inventory exposures, revisit covenants and prepare for tougher regulator scrutiny, as repayment strains and weakening fund liquidity could turn seemingly indirect risks into material compliance concerns, say attorneys at Barack Ferrazzano.

• Citron Founder Verdict Tests Reach Of 'Half-Truth' Fraud

  

  A California federal jury's conviction this week of Citron founder Andrew Left may be remembered less as a conventional manipulation prosecution than as a case about how far the "half-truth" doctrine can reach when applied to modern market speech, says Elisha Kobre at Sheppard.

• Series

  Competing At Poker Makes Me A Better Lawyer

  

  Playing poker in male-dominated rooms taught me to treat skepticism as background noise when my opponents seem to underestimate me, to apply pressure when it matters and to adapt without losing strategic discipline — skills that are all indispensable in restructuring and insolvency matters, says Alexis Gambale at Pashman Stein.

• Private Lender Verification Lessons From Recent Fraud Cases

  

  Recent fraud allegations involving private credit borrowers raise compliance red flags for lenders, who must recognize that financial and collateral verification is an essential safeguard as failures in underwriting and monitoring infect the broader market, say Michael Bresnick at Venable and Brian Mich at Control Risks Group.

• 5 Things Associates Must Ask About Their Firm's Merger Plan

  

  The associates who navigate law firm mergers best ask the right questions early, such as inquiring about partners' plans, to assess how the merger could affect their workflow and career path, says Jackie Bokser-LeFebvre at Major Lindsey.

• Uncertainty Looms After Justices' Withdrawal Liability Ruling

  

  The U.S. Supreme Court's recent holding in M&K Employee Solutions v. Trustees of the IAM National Pension Fund increases the unpredictability of withdrawal liability assessments, so employers should prepare for a range of assessments and be equipped to challenge unreasonable ones, say attorneys at Winston Taylor.

• 2 'Rocket Dockets' And The Rules That Propel Them

  

  The fastest civil trial courts in the country are currently in the Eastern District of Virginia and the Southern District of Florida, and their chief judges provide insights into the court rules that keep them ahead, says Robert Tata at Hunton.

• Opinion

  SEC Must Clarify Crypto Guidance For Investment Advisers

  

  Until the U.S. Securities and Exchange Commission clarifies a conundrum created by recently issued guidance that classifies crypto tokens as digital commodities rather than securities, every registered investment adviser managing a digital commodity portfolio will be simultaneously compliant and exposed, says Nicole Trudeau at Wave Digital Assets.