Asset Management

  • June 22, 2017

    Investors Call Coworking Startup Bar Works A Ponzi Scheme

    Bar Works, a startup that purports to be in the shared-workspace business, is now the subject of at least two lawsuits from investors who call it a multimillion-dollar Ponzi scheme.

  • June 22, 2017

    REIT Ex-CFO's Bonus Could Hit 8 Times Salary, Feds Say

    Federals prosecutors on Friday showed jurors in the fraud trial of ex-American Realty Capital Properties Chief Financial Officer Brian S. Block a salary schedule that would grant him eight times his $500,000 salary in cash and equity as a bonus that depended in part on the value of a key earnings metric with which he is accused of fiddling.

  • June 22, 2017

    Deutsche Defends Loan Sample In $306M Mortgage Trust Suit

    A Deutsche Bank unit fired back Thursday at a Morgan Stanley subsidiary’s bid for a quick win against a $306 million contract suit over a residential mortgage trust, saying there is nothing wrong with using sampling to identify defective loans among more than 4,000 Deutsche Bank oversaw as trustee.

  • June 22, 2017

    JPMorgan Says Fee Complaint Compares The Uncomparable

    JPMorgan’s investment advisory arm urged a New York federal court on Wednesday to toss a suit over allegedly excessive fees charged to one of its mutual funds, saying the case is based on apples-to-oranges fee comparisons that don’t account for differing fund investment strategies and advisory roles.

  • June 22, 2017

    Clayton Laments IPO Decline At SEC Meeting

    U.S. Securities and Exchange Commission Chairman Jay Clayton called the decline in the number of initial public offerings and public companies on American markets a "great concern" on Thursday at a meeting of an SEC advisory committee, saying his agency is working to address the issue while protecting investors.

  • June 22, 2017

    Commercial REIT Prices $205M IPO To Fund Asset Deals

    Commercial real estate investment trust Safety, Income and Growth Inc. priced an initial public offering that raised $205 million late Wednesday and earmarked the money to acquire net lease assets, representing the first of three commercial REITS slated to debut on public markets this week.

  • June 22, 2017

    SEC Says NY REIT’s Charter Change Stiffed Shareholders

    New York REIT Inc., a real estate investment trust now in liquidation, agreed Wednesday to settle the U.S. Securities and Exchange Commission’s allegations that it failed to properly disclose that a change to its charter would substantively limit its shareholders’ rights in certain merger or acquisition events.

  • June 22, 2017

    Insurer Ordered To Pay MF Global Almost $1M In Attys' Fees

    A New York bankruptcy judge found Thursday that former MF Global excess insurer Allied World Assurance Co. Ltd. owes the defunct company $926,000 in attorneys' fees over Allied’s failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda.

  • June 22, 2017

    Willkie Farr Snags Stroock Fund Formation Atty

    Willkie Farr & Gallagher LLP has nabbed a veteran fund formation attorney who previously chaired the Stroock & Stroock & Lavan LLP private funds group to join the firm’s New York office as a partner in its asset management group.

  • June 22, 2017

    Puerto Rico Court Shouldn't Hear Tax Row, Stakeholders Say

    The board overseeing Puerto Rico’s financial restructuring Wednesday united with bondholders and retirees to oppose moving a key dispute over sales tax revenue from federal court to the territory’s Supreme Court.

  • June 22, 2017

    Wells Fargo Makes $3.25M Settlement Over Options Reporting

    Wells Fargo Securities LLC agreed to pay $3.25 million to end the Financial Industry Regulatory Authority’s allegations that it failed to report options positions in millions of instances after erroneously believing that the positions weren’t reportable, according to a settlement filed on Wednesday.

  • June 22, 2017

    UK Watchdog OKs £3.8B Standard Life-Aberdeen Tie-Up

    The U.K.’s competition watchdog said on Thursday it has cleared plans by Standard Life PLC to buy Aberdeen Asset Management PLC, which would create one of Europe's biggest asset management and insurance companies, worth £11 billion ($13.9 billion).

  • June 21, 2017

    Sheppard Mullin Beats Fraud Claims Over $8.5M Judgment

    A California appellate panel on Tuesday tossed a fraud case against Sheppard Mullin Richter & Hampton LLP accusing the firm of helping a client shirk an $8.5 million judgment in what the court described as a “legal saga” dating back to 2004.

  • June 21, 2017

    Justice Sotomayor On The Power Of Dissent

    Justice Sonia Sotomayor discusses her views on writing dissents and the change she hopes they inspire in the law, in the second of two articles based on an exclusive interview with the 111th justice.

  • June 21, 2017

    Azeri Bank's Restructuring Under Fire In Ch. 15 Hearing

    Azerbaijan’s largest commercial bank was left in a holding pattern Wednesday after a New York bankruptcy judge said he needs more time to mull a noteholder group’s complaint against granting the lender U.S. legal protections under Chapter 15 while it restructures $3.3 billion worth of debt in its home country.

  • June 21, 2017

    Genworth Agrees To $20M Settlement In Suit Over Unit's IPO

    Genworth Financial Inc. has agreed to pay $20 million to settle claims from a class of investors that it concealed poor market conditions prior to its Australian insurance unit’s initial public offering, according to documents filed in New York federal court on Wednesday.

  • June 21, 2017

    Junior Staffer OK'd REIT's Challenged Filing, Jury Hears

    The engagement partner at the firm responsible for auditing American Realty Capital Properties’s SEC filing was asleep while a 26-year-old staffer used his “professional judgment” to clear a last-minute $13 million unsupported adjustment, the jury heard Wednesday in the New York federal fraud trial of ARCP’s ex-Chief Financial Officer Brian Block.

  • June 21, 2017

    Arbitration Over $27M Tin Futures Trading Loss Rebooted

    An Illinois appellate court found that a commodities trading company had the right to arbitrate claims for $27 million in losses against its brokerage firm Tuesday, reversing a lower court’s decision staying the arbitration before the Financial Industry Regulatory Authority and the London Metal Exchange.

  • June 21, 2017

    Pebblebrook Hotel REIT Sells Dumont NYC For $118M

    Real estate investment trust Pebblebrook Hotel Trust said Tuesday it has closed on the sale of the “upper upscale” Affinia Dumont NYC in New York for $118 million to an unnamed buyer following an earlier agreement to divide a portfolio of hotels with joint venture partner Denihan Hospitality Group.

  • June 21, 2017

    Ex-Prosecutor Who Drafted Swiss Bank Plan Joins Jones Day

    A tax litigator who once brokered a deal with the government of Switzerland to resolve Swiss banks’ potential criminal liabilities has joined Jones Day as a partner in New York after a three-year stint at DLA Piper.

Expert Analysis

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    With the conclusion of this U.S. Supreme Court term just around the corner, the guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.

  • A Resurgence Of Synthetic Securitizations

    Daniel Budofsky

    After a major market contraction in the wake of the financial crisis, risk-pooling transactions show signs of gaining favor once more, says Daniel Budofsky of Pillsbury Winthrop Shaw Pittman LLP.

  • How Kokesh Will Impact The FTC And Other Agencies

    Benjamin Mundel

    The U.S. Supreme Court's recent decision in the Kokesh case limits not just U.S. Securities and Exchange Commission enforcement actions, but also monetary relief sought by other agencies, like the Federal Trade Commission. A faithful application of this decision should lead to courts rejecting these agencies' long-standing practice of seeking penal monetary relief under their equitable authority, say Benjamin Mundel and Lucas Crosl... (continued)

  • Weekly Column

    Innovating For Wise Juries: Juror-Posed Questions

    Roy Futterman

    One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Footnote In Kokesh Signals Bigger Changes On The Horizon

    Sean Casey

    The immediate effects of imposing a five-year statute of limitations on SEC disgorgement claims may be limited. A far more intriguing element of the Kokesh opinion is found in a footnote, which brings opportunities for real damage to the SEC’s toolbox, say attorneys with Walden Macht & Haran LLP.

  • Miners Find Themselves In The Spotlight Once Again

    John Tivey

    As mining companies continue on their rapid recovery path from the commodity price downturn, the perceived sins of the past return to haunt management teams soon to be swimming in cash, say John Tivey and Rebecca Campbell of White & Case LLP.

  • CLO Market Forges Path To Risk-Retention Compliance

    Deborah Festa

    When the U.S. risk-retention rules became effective for collateralized loan obligation transactions last December, market participants began a new period of adjustment. With the first few months of work behind us, approaches to compliance are becoming more standardized and best practices are beginning to emerge, says Deborah Festa of Milbank Tweed Hadley & McCloy LLP.

  • Tips For Complying With ABA’s New Encryption Guidance

    Nick Holda

    Last month, the American Bar Association published revised guidance regarding an attorney’s duty to protect sensitive client material in light of recent high-profile hacks. The first step in compliance is understanding how your data is being stored and accessed. There are three key questions you should ask your firm’s information technology staff and/or external solution vendors, says Nick Holda of PreVeil.

  • UK's Marex Ruling May Lead To New Tortious Cause Of Action

    Lincoln Caylor

    In Marex Financial Ltd. v. Carlos Sevilleja Garcia, the England and Wales High Court considered whether a claim in tort exists against a person who, anticipating a final judgment and freezing order, dishonestly asset-strips a corporation to ensure it cannot pay its judgment debt. This decision may lead to the creation of a valid tortious claim in asset dissipation, says Lincoln Caylor of Bennett Jones LLP.

  • 2 New Cases Highlight Scrutiny Of Univ. Retirement Plans

    Mark Brossman

    To date, there have been 12 proposed class actions brought against major universities with regard to their employee benefit plans. Recently, federal district courts in Georgia and North Carolina have issued two decisions on motions to dismiss, allowing many of the claims to proceed, say attorneys with Schulte Roth & Zabel LLP.