Asset Management

  • February 23, 2017

    Protected Doc Use Flagged In Merrill Bid To Block Arbitration

    A federal judge in Delaware pressed an attorney for jailed businesswoman Gigi Jordan on Thursday on use of confidential documents from past court actions to launch an arbitration demand against Merrill Lynch Pierce Fenner & Smith Inc., during arguments on a Merrill bid for a preliminary injunction to block the move.

  • February 23, 2017

    InspireMD Beats Finder's Fee Bid Over $24M, For Now

    A New York federal judge dismissed without prejudice on Thursday a breach of contract suit brought by startup investment company Microbanc Inc. against medical device maker InspireMD Inc., finding that InspireMD never agreed in writing to pay Microbanc a finder's fee for a $24 million investment.

  • February 23, 2017

    Ex-Goldman VP Takes Code Theft Case To NY High Court

    Former Goldman Sachs & Co. programmer Sergey Aleynikov on Wednesday asked New York’s highest court to review his conviction for purported theft of source code for the financial giant’s high-speed trading platform, saying he is being held responsible under a 50-year-old law for conduct it wasn’t intended to punish.

  • February 23, 2017

    Former IMF Head Sentenced To 4.5 Years For Embezzlement

    Former IMF Managing Director Rodrigo Rato was sentenced by a Spanish court on Thursday to four-and-a-half years in prison for his role in widespread embezzlement by employees at a national lending bank.

  • February 23, 2017

    Tilton, Patriarch Fail To Shake $45M Fraud Suit

    A New York state appeals court on Thursday affirmed a decision that left a fraud claim by a German bank in play against Lynn Tilton and her investment firm Patriarch Partners LLC, saying early signs that the funds in question were not what they appeared didn’t start the clock on the statute of limitations.

  • February 23, 2017

    Investcorp Drops $400M On 3 US Residential Properties

    Bahrain-based investment firm Investcorp said Thursday that its real estate arm has completed the purchase of multifamily properties in New York, California and Nevada for a total of $400 million, saying it believes the U.S. market is poised for growth.

  • February 23, 2017

    Firm To Pay $3.4M Over Broker's Commissions From Tribe

    The Financial Industry Regulatory Authority said Wednesday that an Albany, New York-based investment firm has agreed to pay almost $3.4 million to a Native American tribe to settle claims the firm failed to properly supervise one of its brokers accused of taking millions in undisclosed commissions on the tribe’s investments.

  • February 23, 2017

    Robo-Advisers Must Be Mindful Of Advisers Act, SEC Says

    The U.S. Securities and Exchange Commission on Thursday said that “robo-advisers” should be mindful of how the Investment Advisers Act applies to them and their relationship with clients since their services are unique from traditional investment advisers.

  • February 23, 2017

    Real Estate Rumors: Blackstone, Lexington, Pace Editions

    A Blackstone venture has reportedly sold a New York building for $52 million, Lexington Realty is said to have bought an Illinois cold storage facility for nearly $53 million and fine art publisher Pace Editions is said to be staying put in its 33,250 square feet in New York.

  • February 23, 2017

    Faruqi Beats Ex-Partner's Suit Over Client Commissions

    Faruqi & Faruqi LLP beat a former partner’s suit alleging the firm didn’t pay her for work for a client she brought in when a New York federal judge ruled Thursday her oral agreement with the firm principals at a 2007 dinner wasn’t enforceable under state law.

  • February 23, 2017

    Firms Fight Over $2M Probe Of Overbilling $75M Fee Pot

    Divisions have sprung up among plaintiffs' firms that planned to share a $75 million fee award as part of a settlement between State Street Corp. and foreign exchange traders in the wake of a $2 million billing probe the court proposed after three firms said they accidentally overstated the value of their work, documents filed Wednesday in Massachusetts federal court show.

  • February 23, 2017

    L3 To Pay $34.5M To Settle Accounting Fraud Class Action

    Military contractor L3 Technologies Inc. will pay $34.5 million to settle accusations by shareholders that its statements leading up to the disclosure of an $84 million accounting error amounted to securities fraud, and their lawyers will seek up to a quarter of that amount in fees, according to papers filed in New York federal court on Wednesday.

  • February 23, 2017

    Jones Day, Dechert Steer StepStone Real Estate's $700M Fund

    Jones Day represented StepStone Real Estate in connection with the close of its $700 million fund and Dechert LLP provided Luxembourg counsel, according to an announcement on Wednesday from the real estate and private equity shop.

  • February 22, 2017

    Grant Thornton, EisnerAmper Near KO Of $100M Fraud Claims

    Accounting firms EisnerAmper LLP and Grant Thornton LLP are one step closer to killing claims against them in a pair of suits by Louisiana pension funds alleging they were complicit in fraud by Fletcher Asset Management that cost them $100 million, after a federal judge found Tuesday the funds skipped a step in filing their claims.

  • February 22, 2017

    Feds Seek To Reduce Rothstein Fund Manager's Sentence

    Federal prosecutors asked a Florida federal court on Wednesday to shave time off the 42-month prison sentence of former investment manager Frank Preve, who ran the largest feeder funds for Scott Rothstein's $1.2 billion Ponzi scheme, for cooperating extensively with the government.

  • February 22, 2017

    Resource Capital Dealt Another Shareholder Suit Over Loans

    Derivative lawsuits accusing Resource Capital Corp.'s directors of mishandling a Puerto Rico hotel loan portfolio that prompted a $41 million write-down in August 2015 continued to mount Wednesday, as a shareholder of the real estate investment trust filed the fourth case of its kind in New York.

  • February 22, 2017

    Conn. Ponzi Schemer Still Must Pay $370M, 2nd Circ. Says

    The Second Circuit on Wednesday refused to quash an order that convicted Ponzi schemer Francisco Illarramendi pay $370.4 million in restitution for a scam described as the largest Ponzi scheme in Connecticut's history, saying a delay of over 10 months didn't amount to an abuse of the district court's discretion.

  • February 22, 2017

    Real Estate Rumors: Jeff Sutton, Tenet Healthcare, Compass

    Retail developer Jeff Sutton has reportedly raised $233 million through a bond sale on the Tel Aviv Stock Exchange, Tenet Healthcare is said to have bought a Florida hospital from HCP and Compass is said to be taking another 25,000 square feet on Fifth Avenue in New York.

  • February 22, 2017

    Jana Scores Board Seats At Tiffany & Co., Bristol-Meyers

    Activist investor Jana Partners LLC locked down boardroom representation in separate deals with Tiffany & Co. and Bristol-Meyers Squibb Co. on Tuesday, clinching a total of six director nominees at the jewelry retailer and the pharmaceutical company.

  • February 22, 2017

    11th Circ. Affirms Wells Fargo Property Interest In Nadel Case

    The Eleventh Circuit on Wednesday said Wells Fargo did not lose its interest as a secured creditor in two properties in the wake of hedge fund manager Arthur Nadel's $168 million Ponzi scheme, saying a creditor’s property rights are granted under state law and a federal court can’t invalidate them for failure to submit a proof of claim.

Expert Analysis

  • What Lawyers Can Learn From Kellyanne Conway

    Michelle Samuels

    Presidential adviser Kellyanne Conway's TV appearances provide some examples of what lawyers should and shouldn't do when speaking to the media, says Michelle Samuels, a vice president of public relations at Jaffe.

  • Financial Services In The 1st Month Of Trump Presidency

    Matthew Cutts

    In the first 30 days of his administration, President Donald Trump issued more than two dozen executive orders, memoranda and proclamations, several of which significantly impact the financial services industry. In addition, policymakers are turning their time and attention to reforming the nation’s financial services laws, with a “Choice Act 2.0” likely to be introduced soon, say Matthew Cutts and James Sivon of Squire Patton Boggs LLP.

  • The Mistakes Lawyers Make When Copying And Pasting

    Robert D. Lang

    We all recognize that cutting or copying text from earlier works and pasting it into new documents saves attorneys time. However, with this increase in speed comes an increased risk of making, or not catching, errors, says Robert Lang of D’Amato & Lynch LLP.

  • Opinion

    Calif. Court Gets Automatic Funding Disclosure Right

    Matthew D. Harrison

    Detractors of litigation funding have strained to characterize a recent decision from a California federal court as significant headway in their crusade against the litigation funding industry. However, in truth, this is a victory for both the industry and those in need of capital to bring meritorious claims against wrongdoers in an often prohibitively expensive legal system, say Matthew Harrison and Priya G. Pai of Bentham IMF.

  • How The Obiang Case Exposes Limits Of Forfeiture Efforts

    Stéphane Bonifassi

    The case against Vice President Teodorin Nguema Obiang is severing diplomatic relations between France and Equatorial Guinea for no benefit to the Equatorial Guinea people. Along the way, France seems to be lecturing the rulers of a formal colonial country, while not cleaning its own house, says Stéphane Bonifassi of Bonifassi Avocats.

  • Anti-Money Laundering Expectations Under Trump

    Michael A. Mancusi

    We do not anticipate the new administration will ease anti-money laundering enforcement. In fact, it is more likely that enforcement of the Bank Secrecy Act is an area of supervision that will increase in the coming years, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • What You Need To Know About 'Unrestricted Subsidiaries'

    Michael Friedman

    Investments in “unrestricted subsidiaries” are an exception to investment covenants and are being increasingly used in restructuring a company’s capital structure. Before purchasing any debt, distressed investors need to be mindful of what unrestricted subsidiaries are and how they may affect the overall credit of a company or debt recoveries, say attorneys with Chapman and Cutler LLP.