Capital Markets

  • March 16, 2018

    Credit Suisse Investors Sue Over Inverse VIX Price Drop

    Two investors in Credit Suisse’s short-term notes inversely related to the stock market’s volatility index have filed putative class actions in New York federal court alleging the bank misrepresented the value of the notes during a critical time of steep price drops and substantial investor losses.

  • March 16, 2018

    Clearlake Closes Latest Fund With $3.6B In Commitments

    Private equity firm Clearlake Capital Group LP has closed its latest round of funding with more than $3.6 billion in commitments that will be invested in target sectors including technology and energy, the firm said Friday.

  • March 15, 2018

    Spotify Touts 'Transparency' Of Direct Stock Listing

    Music streaming giant Spotify Technology SA on Thursday touted its direct-listing plan as a transparent way of going public that is more democratic than a traditional initial public offering, marking the company’s first public discussion about its rationale for the unconventional strategy.

  • March 15, 2018

    Manager Of Fraudulent Hedge Fund Cops To $22M Scam

    A former hedge fund manager pled guilty to securities fraud in New York federal court on Thursday in the face of accusations that he’d basically run a $22 million Ponzi scheme, and that the investor money not lost in the market was spent on his own expenses.

  • March 15, 2018

    Big Banks Win Dismissal In Indirect Forex Manipulation Suit

    A New York federal judge on Thursday tossed an antitrust suit from small-time forex investors against more than a dozen big banks accused of rigging wholesale foreign exchange markets, ruling that the allegations are too vague.

  • March 15, 2018

    Gravel & Shea Seals First US Blockchain Real Estate Deal

    A condo in South Burlington, Vermont, recently traded hands, and documents for the deal were entered into the blockchain in a historic first for a U.S. real estate transaction, with Gravel & Shea PC helping lay the groundwork to make the deal possible.

  • March 15, 2018

    CFTC Commissioner Warns EU Clearing Reforms Defy US Deal

    Commodities and Futures Trading Commission member Brian Quintenz on Wednesday threatened retaliation against the European Commission if it proceeds with plans to revise an equivalence agreement regarding the regulation of central counterparties, saying that would damage trust between the United States and Europe.

  • March 15, 2018

    Illinois Futures Trader Charged With Defrauding Investors

    An Illinois futures trader with a long history of run-ins with regulatory agencies has been arrested and charged with criminal fraud in Chicago federal court for allegedly scheming to rip off investors by lying about his brokerage business and creating false financial statements.

  • March 15, 2018

    Yacht Sharing Club Exec Cops To Investment Fraud Scheme

    The head of a company that intended to launch a membership-based yacht sharing club pled guilty to a conspiracy to commit fraud charge in Connecticut federal court Thursday, admitting he lied to investors about how their money would be used to fund the now-sunk operation.

  • March 15, 2018

    Deals Rumor Mill: Alibaba, Bayer, BP

    Alibaba Group Holding Ltd. is reportedly laying the groundwork for a Chinese stock market listing, Department of Justice antitrust officials aren’t satisfied with Bayer’s divestment plans related to its Monsanto takeover, and BP is looking to sell its stake in an Egyptian joint venture.

  • March 15, 2018

    Weil's Breitburn Lienholder Work A 'Fee Issue,' Judge Says

    A New York bankruptcy judge on Thursday said the failure of Weil Gotshal & Manges LLP to disclose it had represented a Breitburn Energy Partners LP lienholder before taking on the company's bankruptcy case was a “fee issue” that could come into play when the firm tries to collect its pay.

  • March 15, 2018

    House Votes To Create Independent Review Board For Banks

    The House of Representatives passed a pair of measures altering financial institution rules Thursday, creating an independent board to review agency actions and altering Regulation A+ securities offerings.

  • March 15, 2018

    Consultant Co. Wants Out Of $1.76M Suit Over Alleged Scam

    A California attorney and her investment advisory company on Thursday moved to dismiss a suit brought by a medical device developer that claimed the attorney scammed it out of $1.76 million, arguing that Texas federal courts had no jurisdiction over either the attorney or her company.

  • March 15, 2018

    White & Case Adds Ex-Paul Hastings Latin America IPO Pro

    White & Case LLP has picked up a former Paul Hastings partner who represents financial institutions and securities issuers in cross-border offerings, including advising Morgan Stanley and JPMorgan in Jose Cuervo’s initial public offering in Mexico.

  • March 15, 2018

    Investors Can’t Peg ProNAi For Failed Cancer Drug

    Pharmaceutical maker ProNAi Therapeutics Inc. and two of its executives shed a proposed securities class action on Tuesday when a New York federal judge found most of the company’s statements about the success of a cancer treatment that investors claimed to be misleading could be chalked up to puffery.

  • March 15, 2018

    Ex-Deutsche Bank Trader Pleads Guilty To Rigging Euribor

    Ex-Deutsche Bank AG trader Christian Bittar has pled guilty to rigging a key European interest rate benchmark ahead of a trial scheduled for April, Britain’s Serious Fraud Office said Thursday.

  • March 14, 2018

    SEC Urged To Amend Rules Governing ICO Market

    A cryptocurrency lawyer told a House of Representatives committee on Wednesday that Congress should urge the Securities and Exchange Commission to amend its rules to improve clarity in the market for initial coin offerings, a nascent but booming field of capital raising.

  • March 14, 2018

    Bankruptcy Court's Block Of $1B Lehman Clawback Upheld

    A New York federal judge on Wednesday affirmed a bankruptcy court’s dismissal of a Lehman Brothers unit's bid to claw back $1 billion in swaps transactions, saying it correctly determined the safe harbor provision for swap agreements protects the distributions of the collateral.

  • March 14, 2018

    Warby Parker Picks Up $75M With Eye On Future Growth

    Warby Parker has received a $75 million capital injection from a group of private investors led by asset management firm T. Rowe Price, the eyewear retailer revealed on Wednesday, with plans to use the money to strengthen the company for the future, including through research and development.

  • March 14, 2018

    White House Names Kudlow New Top Economic Adviser

    The White House said Wednesday that Lawrence Kudlow, a conservative economic commentator, will replace Gary Cohn as President Donald Trump’s chief economic adviser following Cohn’s decision last week to resign as director of the National Economic Council.

Expert Analysis

  • Tax Reform Complicates Middle-Market CLOs

    Jason Schwartz

    The Tax Cuts and Jobs Act is causing concerns for advisers of middle-market collateralized loan obligation issuers as it potentially imposes new requirements. Advisers to MM CLOs must be creative and thoughtful in mitigating the potential adverse effects of Section 1446(f), say attorneys with Cadwalader Wickersham & Taft LLP.

  • Securitized Student Loans: The Next Crisis?

    Kevin O’Brien

    In light of the stress on the student loan market and the amount of money invested in securities backed by student loans, the likelihood of litigation regarding the marketing and securitizing of these assets is substantial. In addition, billions in defaulted student loans may be uncollectible, adding a further level of peril for investors, says Kevin O’Brien of Butler Rubin Saltarelli & Boyd LLP.

  • And The Award Goes To ... FINRA’s 2017 Restitution Program

    Brian Rubin

    We dissected the Financial Industry Regulatory Authority's 2017 disciplinary actions to see how it performed in different categories and found that rather than going for box-office gold, FINRA focused on a variety of “nuts and bolts” issues. However, FINRA did return a substantial amount of money to investors, say Brian Rubin and Adam Pollet of Eversheds Sutherland.

  • Digital Realty’s Victory Is A Loss For Corporate Compliance

    Stephen Kohn

    In Digital Realty Trust v. Somers, the U.S. Supreme Court undermined Wall Street’s advocacy of internal corporate compliance programs as an alternative to whistleblower reward laws. But the adverse impact of Digital’s Supreme Court victory can and should be mitigated, says Stephen Kohn of Kohn Kohn & Colapinto LLP.

  • A Broad Regulatory Push To Rein In Burgeoning ICO Market

    Christopher Conniff’s disclosure last week that its ongoing $250 million initial coin offering has been under investigation by the U.S. Securities and Exchange Commission appears to be part of a widespread probe pursuant to which “scores” of companies and advisers have reportedly received subpoenas. This underscores the SEC’s continued commitment to vigorous oversight in the virtual currency space, say attorneys with Ropes & Gray LLP.

  • 10 Tips For Working With IT To Preserve Data

    John Tredennick

    Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.

  • Considerations Before Self-Reporting Under SEC Initiative

    James Lundy

    Investment advisers need to understand that self-reporting under the new Share Class Selection Disclosure Initiative will undoubtedly result in a settled enforcement action, which will include the U.S. Securities and Exchange Commission’s typical terms. Assessing all of the issues and risks will be resource-intensive, say James Lundy and Mary Hansen of Drinker Biddle & Reath LLP.

  • ALJs Check Their Own Work, With Unsurprising Results

    Marc Fagel

    It is fair to say that the U.S. Securities and Exchange Commission’s directive that its administrative law judges reconsider the record in pending proceedings has not resulted in a groundswell of revised rulings. The ALJs, whose previous appointments have now been “ratified,” are not suddenly seeing these cases through a brand new lens, says Marc Fagel of Gibson Dunn & Crutcher LLP.

  • Protecting Privilege In Litigation Financing Negotiations

    Eric Robinson

    Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.

  • Commissioner Jackson's Take On Perpetual Dual-Class Stock

    Spencer Feldman

    Newly appointed member Robert Jackson of the U.S. Securities and Exchange Commission recently added an important voice to the continuing debate about perpetual dual-class stock. Using Jackson's patriotic and practical arguments, smart company founders will find the right balance in adopting dual-class stock structures with negotiated sunset provisions, says Spencer Feldman of Olshan Frome Wolosky LLP.