Asset Management

  • February 16, 2018

    Insmed Beats Stock-Drop Suit Over Lung Disease Drug

    A New Jersey federal judge on Thursday tossed a proposed class action alleging that Insmed Inc. misled investors over the likelihood that a lung disease drug would gain market approval in Europe, ruling that the biopharmaceutical company’s alleged misstatements and omissions didn’t meet the standards for securities law claims.

  • February 16, 2018

    Investor Groups Cheer Calls For Limiting Dual-Class Perks

    Investor advocates on Friday lauded SEC Commissioner Robert Jackson's call for sunset provisions on dual-class stock structures, which allow company founders to reserve extra voting power compared with public shareholders, calling it a pragmatic approach that could curb perceived abuses of the practice.

  • February 16, 2018

    Muni Market Shaken By Puerto Rico Special Revenues Ruling

    Municipal bonds secured by pledged special revenue streams have long been prized as safe bets, but a recent ruling in Puerto Rico’s restructuring cases that payment on those obligations is not required in bankruptcy has riled investors and left legal experts confounded over a largely untested Bankruptcy Code provision.

  • February 16, 2018

    Atty Botched Plea, Man Convicted Of Fraud Tells 2nd Circ.

    A man convicted in two separate multimillion-dollar fraud cases told the Second Circuit on Thursday that he suffered from ineffective counsel, saying his attorney never told him about a deal that would have consolidated his guilty pleas and potentially taken more than two years off his sentence.

  • February 16, 2018

    Health Care-Focused Blank Check Co. Prices $250M IPO

    Blank check company DFB Healthcare Acquisitions Corp., formed by investment firm Deerfield Management and led by a longtime health insurance CEO, said it raised $250 million in an initial public offering Friday to support the intended acquisition of a health care business.

  • February 16, 2018

    Former SEC Branch Chief Joins Dechert's DC Office

    Dechert LLP announced that it has acquired a former branch chief from the U.S. Securities and Exchange Commission’s division of investment management to work in the firm’s Washington D.C.-based corporate and securities practice group.

  • February 16, 2018

    Swindled Mass. Investors Blame Canadian Portfolio Managers

    An attorney for 16 wealthy investors conned by an admitted securities fraudster and his sham hedge fund asked a Massachusetts federal judge on Friday to let them continue to pursue claims against Canadian portfolio managers who handled their money on the fraudster’s behalf.

  • February 16, 2018

    Newswire Hacker Can’t Beat $30M Securities Fraud Case

    A Brooklyn federal court rejected a former Morgan Stanley fund manager's request to trim his indictment for allegedly scheming to make $30 million by trading on information from stolen press releases, with the judge finding Friday the charges were sufficiently specific.

  • February 16, 2018

    Real Estate Rumors: RBC, Gramercy, Virgo Business Centers

    Royal Bank of Canada has reportedly loaned $236.6 million for a New York office property purchase, Gramercy Property Trust is said to have sold a Florida corporate center for $43.16 million and Virgo Business Centers is reportedly subleasing more than 42,000 square feet in Manhattan.

  • February 16, 2018

    Boston Herald Cleared For $12M Ch. 11 Sale To MediaNews

    The Boston Herald on Friday secured court approval for the tabloid's $11.98 million sale to hedge fund-controlled MediaNews Group, under a business-saving deal expected to close by March 28.

  • February 16, 2018

    SEC Halts Trading In 3 Penny Stocks Tied To Cryptocurrency

    The U.S. Securities and Exchange Commission on Friday suspended trading in three penny-stock companies, questioning the accuracy of recent statements they all made claiming substantial acquisitions in assets tied to cryptocurrency and blockchain technologies.

  • February 16, 2018

    Sidley Austin Lures Proxy Pro From Vinson & Elkins

    Sidley Austin has hired a mergers and acquisitions partner who founded and led Vinson & Elkins’ shareholder activism team and has been involved in more than 20 proxy contests.

  • February 16, 2018

    Judge Iffy On Spiking Bank’s $45M Fraud Suit Against Tilton

    A New York state judge expressed uncertainty at a hearing on Friday about whether she could consider a new motion to dismiss a German lender’s $45 million fraud suit against Lynn Tilton and her companies over its investments in two of her funds.

  • February 16, 2018

    Ashford Hospitality Prime Buying Florida Ritz For $171M

    Ashford Hospitality Prime Inc. has reached an agreement to buy a Ritz-Carlton hotel in Sarasota, Florida, for $171 million, the Dallas-based real estate investment trust announced Friday.

  • February 15, 2018

    Puerto Rico Electric Co. Denied Bid For Emergency Loan

    Access to electricity in Puerto Rico may be in short-term peril after a New York federal judge on Thursday denied the territory’s insolvent power utility access to $1 billion in emergency financing offered by the island’s central government, finding the superpriority lien attached to the loan unjustified.

  • February 15, 2018

    6D Global Investors Say Derivative Suit Deal Is 'Worthless'

    Investors owning more than half of 6D Global Technologies Inc.’s stock have objected to a proposed settlement of derivative claims that the digital marketing company failed to stop a private equity firm’s CEO from manipulating its share price, telling a New York federal judge Wednesday that the corporate reforms spelled out in the deal are “utterly worthless.”

  • February 15, 2018

    SEC's Jackson Calls On Exchanges To Limit Dual-Class Stock

    New U.S. Securities and Exchange Commission member Robert Jackson on Thursday urged U.S. stock exchanges to enact policies that limit the advantages of dual-class stock structures that grant extra voting power for company insiders, calling for an end to “corporate royalty.”

  • February 15, 2018

    Real Estate Rumors: Union Investment, ADME, Braintree

    Union Investment is reportedly buying a New York retail condo leased to Lexus for $88 million, A.D.M.E. Real Estate is said to have sold a Miami Beach assisted-living facility for nearly $18 million and mobile payment software firm Braintree is reportedly in talks with landlord Vornado Realty Trust for 40,000 additional square feet in Chicago.

  • February 15, 2018

    Mass. Regulator Charges Scottrade Over Sales Contests

    The Massachusetts securities regulator on Thursday accused Scottrade Inc. of holding sales contests it knew flouted an internal impartial conduct standard it adopted to comply with the U.S. Department of Labor’s so-called fiduciary rule for retirement account advisers.

  • February 15, 2018

    SPACs Set For Another Strong Year, Fund Manager Says

    Coming off a record-breaking 2017, initial public offerings by special-purpose acquisition companies are poised for another robust year but may fall below last year’s torrid pace, a hedge fund founder told a gathering of business people and lawyers Thursday in New York.

Expert Analysis

  • How Emerging Sources Of ESI Will Impact Discovery

    Charles McGee

    Late last year, the Sedona Conference released the third edition of its principles addressing electronic document production, updated to account for innovations like Snapchat and Twitter. It may be necessary for these principles to be updated more often in order to keep pace with technology, says Charles McGee III of Murphy & McGonigle LLP.

  • Put The Brakes On Acceleration Bay Litigation Funder Ruling

    David Gallagher

    Last week, the District of Delaware raised eyebrows by ruling that documents provided to a litigation funder and its counsel in connection with their due diligence are categorically not attorney work product. Acceleration Bay v. Activision Blizzard seems to be a case of bad facts making bad law, says David Gallagher, investment manager and legal counsel for Bentham IMF.

  • Recent Trends In Structuring Risk Retention Vehicles

    Jason Schwartz

    In the wake of the financial crisis, the U.S. and Europe enacted “risk retention” rules that require sponsors of securitization vehicles to maintain a financial interest in those vehicles. Here, attorneys with Cadwalader Wickersham & Taft LLP look at the “capitalized management vehicle” structure that many collateral managers are using to comply with the rules, and the likely impact of a recent D.C. Circuit ruling.

  • The Impact Of Kokesh So Far, And What's Next: Part 2

    Carmen Lawrence

    Kokesh changed the paradigm for remedies in U.S. Securities and Exchange Commission enforcement actions, but the potential ramifications go well beyond what initially meets the eye. As we are starting to see, Kokesh's full impact will not be limited to disgorgement or the SEC, say attorneys with King & Spalding LLP.

  • Considerations For Attorneys Using Artificial Intelligence

    Ben Allgrove

    Artificial intelligence tools can empower attorneys to work more efficiently, deepen and broaden their areas of expertise, and provide increased value to clients, which in turn can improve legal transparency, dispute resolution and access to justice. But there are some common pitfalls already apparent in the legal industry, say Ben Allgrove and Yoon Chae of Baker McKenzie.

  • How A Recent Tax Case Offers Guidance To Family Offices

    Mark Leeds

    In a recent case, Lender Management LLC v. Commissioner, the U.S. Tax Court ruled against the Internal Revenue Service after it asserted that the costs of running a family office were not deductible for federal income tax purposes. The decision provides a road map for other family offices on how to structure their operations, says Mark Leeds of Mayer Brown LLP.

  • The Impact Of Kokesh So Far, And What's Next: Part 1

    Dixie Johnson

    The U.S. Supreme Court's decision last year in Kokesh had immediate effects on the U.S. Securities and Exchange Commission’s ability to seek disgorgement in enforcement actions. On the other hand, defendants have had little success when seeking to amend previously awarded disgorgement amounts, say attorneys with King & Spalding LLP.

  • Series

    Judging A Book: Duncan Reviews 'Justice And Empathy'

    Judge Allyson Duncan

    In "Justice and Empathy: Toward a Constitutional Ideal," the late Yale Law School professor Robert Burt makes a compelling case for the undeniable role of the courts in protecting the vulnerable and oppressed​. But the question of how the judiciary might conform to Burt’s expectations raises practical problems​, says U.S. Circuit Judge Allyson Duncan of the Fourth Circuit. ​

  • SEC, CFTC Whistleblowers Dodge A Devastating Tax Bullet

    Gary Aguirre

    Before the brief government shutdown last week, whistleblowers destined to receive bounties from the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission faced devastating tax liability. But the act that reopened the government vaporized the bullet about to strike this narrow class of whistleblowers, says Gary Aguirre, a former SEC staff attorney.

  • The Art Of The Litigation Funding Deal

    Julia Gewolb

    As litigation funding becomes more widespread, greater complexity and variability in funding deals are to be expected. All claimants should consider certain key questions on the economics of single-case funding when considering or comparing funding terms, says Julia Gewolb of Bentham IMF.