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Banking

  • May 9, 2018

    SEC Penalizes Paralegal In School District Muni Bond Fraud

    A Texas paralegal with limited experience in municipal bond offerings accepted hefty fees from a school district while holding himself out as a well-versed adviser, in violation of securities laws, the U.S. Securities and Exchange Commission said on Wednesday, ordering him and his advisory firm to pay more than $500,000 in disgorgement and civil penalties.

  • May 9, 2018

    Hedge Fund Fights $2.5M Settlement In Petters Ponzi Scheme

    Hedge fund Ritchie Capital Management told a Minnesota federal judge Tuesday the district court's lack of jurisdiction to approve a $2.5 million settlement between J.P. Morgan Chase & Co. and the receivership over the assets of fraudster Thomas Petters was one of several reasons to block the deal.

  • May 9, 2018

    3rd Circ. Upholds TD Bank Win In Currency Conversion Suit

    The Third Circuit on Tuesday upheld a win for TD Bank NA in a proposed class action alleging the bank charged an embedded fee when converting foreign currency, ruling nothing in its customer agreement specified which formula the bank would use and that the suit did not present any evidence the formula was intentionally withheld.

  • May 9, 2018

    VC-Backed Biotech, Louisiana Bank Price IPOs Raising $209M

    A venture-backed biotechnology startup and a private equity-backed Louisiana community bank saw shares debut Wednesday after raising a combined $209 million in initial public offerings that priced at the middle of their prospective ranges, kicking off a week with five scheduled IPOs.

  • May 8, 2018

    Split 7th Circ. Kicks Ex-Brokers' FINRA Suit To State Court

    A split Seventh Circuit panel on Tuesday vacated an Illinois federal court's dismissal of a suit against FINRA brought by two metals brokers fired from Jefferies & Co., finding the case should be remanded to state court because the suit presents no issue of federal law.

  • May 8, 2018

    FINRA Sanctions Fifth Third $6M On Variable Annuity Claims

    The Financial Industry Regulatory Authority on Tuesday ordered Fifth Third Securities Inc. to pay $6 million to settle claims about the way it has run its retail variable annuities business, including complying with the terms of an earlier settlement with the regulator over similar issues.

  • May 8, 2018

    Construction Firm Sued Over Unpaid Texas Apartment Bonds

    Surety and insurance provider The Guarantee Co. of North America USA slapped a Houston-area construction firm with a lawsuit in Texas federal court Tuesday, claiming it owes millions of dollars after failing to meet certain obligations under bonds associated with a residential building project.

  • May 8, 2018

    Bank Defends $1M Fee Award In Tribal Embezzlement Row

    A bank that the Paskenta Band of Nomlaki Indians accused of helping former tribal leaders carry out a wide-reaching, multimillion-dollar embezzlement scheme pushed back Monday at the tribe’s Ninth Circuit appeal of a lower court order granting the bank more than $1 million in attorneys’ fees.  

  • May 8, 2018

    Credit Union CEO's ATM 'Tests' Part of $7M Fraud, Feds Say

    The CEO of a New York City credit union billed millions of dollars for fake dental and insurance costs, and once claimed he was only testing the company’s ATMs when he withdrew thousands of dollars from them, prosecutors said Tuesday in charging him with perpetuating a $7 million fraud scheme.

  • May 8, 2018

    Bank Exec's Bias Complaints Got Her Fired, Suit Says

    A former top executive at China Merchants Bank claims she was illegally fired for raising internal concerns about the bank engaging in discriminatory practices, including limiting its participation in a Harlem real estate deal because of the area's African-American population, according to a New York federal court suit filed Tuesday.

  • May 8, 2018

    House Votes To Nix CFPB Auto-Lending Guidance

    Congress has sent a measure that would nix the Consumer Financial Protection Bureau’s 2013 guidance on discrimination in auto lending to President Donald Trump, following a vote in the U.S. House of Representatives on Tuesday.

  • May 8, 2018

    Sen. Brown Slams Banks For Cutting Jobs, Raising Exec Pay

    Sen. Sherrod Brown, D-Ohio, sent letters to the chief executive officers of six major banks, including Bank of America and JP Morgan Chase, asking them to provide the public with detailed plans to reinvest in American workers during “this golden age of profitability,” the lawmaker said Tuesday.

  • May 8, 2018

    Mass. Justices Ponder KPMG's Failure To Spot College Fraud

    The Massachusetts Supreme Judicial Court on Tuesday questioned whether Big Four auditor KPMG LLC should bear any responsibility for failing to catch a $6 million fraudulent loan scheme at a Bay State college.

  • May 8, 2018

    Liddle & Robinson Accused Of Botching HSBC Retaliation Suit

    A former HSBC executive whose bid to revive a retaliation suit against the banking giant was rejected by the Second Circuit earlier this year has hit New York employment firm Liddle & Robinson LLP and one of its attorneys with a $10 million New York state suit alleging they botched his case.

  • May 8, 2018

    Gov't Fights Foreclosure Law Firm’s Bid To Ax FCA Claims

    The government on Monday defended its False Claims Act claims against New York mortgage foreclosure law firm Rosicki Rosicki & Associates PC and two related companies over allegations that they caused Fannie Mae to pay millions of dollars in reimbursement claims for fraudulently inflated foreclosure expenses.

  • May 8, 2018

    Equifax Reveals 56K IDs Stolen In Breach That Hit 146M

    Credit reporting giant Equifax on Monday revealed more details about the consumer data stolen during a breach last year that affected 146.6 million consumers in the U.S., writing in a Securities and Exchange Commission filing that the hackers lifted 56,200 government-issued IDs from its online dispute resolution portal.

  • May 8, 2018

    Perkins Coie Adds Veteran Litigator To Dallas Office

    A name partner from the former Gruber Hail Johansen Shank LLP has joined Perkins Coie LLP’s Dallas office in the firm’s commercial litigation practice, where he’ll continue to represent financial services, health care, energy and real estate clients.

  • May 8, 2018

    Ex-Acting AG Sally Yates, Fired For Defying Trump, Joins K&S

    Sally Yates, the one-time second highest ranking official in the U.S. Department of Justice who defied President Donald Trump’s first iteration of an immigration ban during her brief stint as acting attorney general last year, is joining King & Spalding LLP’s government investigations team, the firm announced Tuesday.

  • May 7, 2018

    DOL Declines To Scrap Fiduciary Rule Despite Invalidation

    The U.S. Department of Labor announced on Monday that financial advisers are free to continue relying on its now-invalidated, Obama-era fiduciary rule for the time being, though they won't be penalized if they stop.

  • May 7, 2018

    SEC Republican Commissioner Michael Piwowar To Step Down

    Michael Piwowar, a Republican member of the five-person U.S. Securities and Exchange Commission, said Monday he will step down in July or earlier if his replacement is appointed and sworn in before then.

Expert Analysis

  • The Justices' Divergent Views On Class Action Tolling

    Steven Molo

    China Agritech v. Resh is an important U.S. Supreme Court case that will have significant repercussions for class actions of all kinds. During oral arguments, many of the justices' questions focused on the plaintiff diligence prerequisite for equitable tolling, say Steven Molo and Michelle Parthum of MoloLamken.

  • Prosecutors Should Be Wary Of Overreach After Marinello

    Stephen Cook

    The U.S. Supreme Court's rejection of the government’s broad interpretation of a criminal tax obstruction statute in Marinello may have implications for special counsel Robert Mueller’s indictments and the case involving alleged leaks from the Public Company Accounting Oversight Board, say attorneys with Brown Rudnick LLP.

  • Opinion

    BigLaw Doesn't Have A Diversity Problem

    Marlen Whitley

    Although the lack of racial and gender diversity among the ranks of the majority of both midsized and top law firms is a major issue, it’s past time to shed light on the real problem — inclusion, or lack thereof, says Marlen Whitley of Reed Smith LLP.

  • Credit Unions Face Website Accessibility Claims Under ADA

    Nancy Rigby

    Credit unions have seen a wave of litigation claiming their websites are inaccessible to blind or low-vision plaintiffs, allegedly in violation of the Americans with Disabilities Act. While two credit unions recently succeeded in defending against such claims, it does not appear they are going away anytime soon, says Nancy Rigby of Weinberg Wheeler Hudgins Gunn & Dial LLC.

  • Opinion

    Roman J. Israel, Esquire, Meet Donald J. Trump, POTUS

    Kevin Curnin

    Despite the Trump administration's desire to shut down the Legal Services Corp., thankfully the budget that Congress passed and the president signed into law last week has restored $410 million of funding to the legal aid organization. An unlikely brief for preserving LSC may be found in the quirky Denzel Washington film "Roman J. Israel, Esq.," says Kevin Curnin, immediate past president of the Association of Pro Bono Counsel.

  • Keys To Corporate Social Responsibility Compliance: Part 4

    Michael Littenberg

    Over the last few years, there has been a significant increase in litigation and investigations related to corporate social responsibility issues. Activity has increased not only in the United States at the federal, state and local level, but also in several other countries. Proceedings and investigations have involved many different statutes and theories of liability, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: A 'Problem' That Does Not Exist

    Adam Pulver

    Contrary to the hyperbole advanced by the defense bar, state courts are not flooded with frivolous securities lawsuits. And if there is a spike after the U.S. Supreme Court’s decision in Cyan v. Beaver County, there are likely other factors to blame, says Adam Pulver of the Public Citizen Litigation Group.

  • Opinion

    We Need A Cybersecurity Framework For Law Firms

    Shaun Jamison

    In order to enable lawyers to best meet cybersecurity challenges, state bars should pass rules that adopt a cybersecurity framework to be developed by a national committee, says Shaun Jamison, associate dean of faculty and professor at Purdue University's Concord Law School.

  • Keys To Corporate Social Responsibility Compliance: Part 3

    Michael Littenberg

    As the quantity and quality of corporate social responsibility disclosure increases, there is also movement toward greater comparability. Larger companies should benchmark their disclosures against global peers and evolving global standards, since over time, enhancements in foreign disclosure practices are likely to drive disclosures by many U.S. companies, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: Potential Trends In Section 11 Litigation

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    The U.S. Supreme Court's clear signal in Cyan v. Beaver County that Section 11 claims filed in state court can remain in state court causes the litigation chess game to evolve to a new phase. A reasonable hypothesis is that Section 11 filings in state court will increase nationwide and not just in California, say members of Stanford Law School and Cornerstone Research.