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Capital Markets

  • June 7, 2018

    Ex-Nomura RMBS Trader Looks To Split Suit Amid New Trial

    A former managing director on Nomura's residential mortgage-backed securities desk asked Wednesday to separate the government’s case against him and another trader, telling a Connecticut federal judge that trader’s new trial is likely to put off a timely resolution in his own case.

  • June 7, 2018

    Investor Groups Take On SEC Paperless Reporting Rule

    Investor advocates on Thursday vowed to press forward with opposition to a plan approved earlier this week by the U.S. Securities and Exchange Commission that allows mutual fund companies to release most shareholder reports online and send out paper documents only upon request.

  • June 7, 2018

    Mt. Gox Customer's Testimony Sinks Cert. Bid, Judge Says

    An Illinois federal judge on Thursday declined to certify a class of Mt. Gox customers who deposited money in the bitcoin exchange through the Japanese bank Mizuho, saying testimony from a plaintiff hoping to represent the class in a suit over the exchange's collapse showed he was too vulnerable to unique defenses.

  • June 7, 2018

    Lehman's Bid For Preferred Stock Swap Comes Under Fire

    Seeking to block Lehman Brothers Holdings Inc. from issuing preferred stock as a substitute for potentially more valuable creditor interests in U.K.-based debt instruments, attorneys for Barclays Bank and Deutsche Bank argued Thursday that Lehman’s bankruptcy court request is a bid to rewrite history.

  • June 7, 2018

    Plaintiff Linked To $75M Attys' Fees Flap Wants To Stay On

    The lead plaintiff in a class action settlement at the heart of a $75 million attorneys' fees dispute involving allegations of lawyer misconduct defiantly told a Massachusetts federal judge that he wants to stay on as class representative, a week after the judge grilled him on whether stepping aside was the right move.

  • June 7, 2018

    Investors Blast FXCM Owner’s Bid To Toss Securities Suit

    Investors lobbing securities fraud claims against the company behind online foreign exchange broker FXCM on Wednesday blasted an attempt to nix their proposed class action, telling a New York federal court their latest amended complaint clearly alleges the company lied about its stakes in trades made on one of its platforms.

  • June 6, 2018

    Fintech-Focused Blank Check Co. Upsizes IPO To $500M

    Far Point Acquisition Corp., a special purpose acquisition company backed by hedge fund Third Point LLC and run by former NYSE Group President Tom Farley in order to buy a fintech company, on Wednesday increased the funding target of its initial public offering to $500 million.

  • June 6, 2018

    Agreement Reached In Puerto Rico Sales Tax Revenue Fight

    A long and contentious battle between municipal bondholders and other creditors over claims to more than $17 billion in pledged Puerto Rico sales tax collections may have reached an end, as representatives for the warring groups filed court papers Tuesday saying they’ve come to an agreement in principle.

  • June 6, 2018

    Failing Calif. Leasing Co. An $80M Ponzi Scheme, SEC Says

    The U.S. Securities and Exchange Commission on Tuesday accused the owner of a California-based equipment leasing company of bilking $80 million from investors through a Ponzi scheme that misrepresented the company's financial health and funneled millions in discretionary bonuses to the owner’s personal accounts.

  • June 6, 2018

    Nasdaq Withdraws Proposal To Ease SPAC Listing Rules

    Nasdaq Stock Market has withdrawn a proposal to ease its listing rules for special purpose acquisition companies, which are increasingly popular vehicles that conduct initial public offerings to fund acquisitions, the U.S. Securities and Exchange Commission said on Tuesday.

  • June 6, 2018

    Platinum Receiver Fights Firm’s $489K Fee Bid

    The receiver in the U.S. Securities and Exchange Commission’s case against hedge fund Platinum Partners is seeking to block a law firm’s bid for roughly $489,000 in fees it says it incurred while working for her predecessor, telling a New York federal judge Tuesday the firm was never retained and has defied the receivership.

  • June 6, 2018

    BNY Fights Investors' Bid For Cert. In ADR Overcharge Suit

    The Bank of New York Mellon on Tuesday told a Manhattan federal judge that the American depositary receipt holders alleging the bank overcharged them for the conversion of foreign currency dividends to U.S. dollars do not have standing to represent an entire class of ADR holders because each contract and conversion was unique.

  • June 5, 2018

    SocGen Cops To FCPA Charge For Libyan Bribery Scheme

    A Société Générale SA subsidiary on Tuesday admitted to conspiring to violate the Foreign Corrupt Practices Act, one day after the bank said it had agreed to pay more than $1.3 billion for a multiyear bribery campaign in Libya and benchmark interest rate manipulation.

  • June 5, 2018

    SEC Scores $36.4M Judgment Against Oil and Gas Fraudsters

    A Texas federal judge on Monday entered a $36.4 million order against two California companies, their owner and two of his sales associates to resolve the U.S. Securities and Exchange Commission’s allegations that they duped investors into buying interests in oil and gas limited partnerships.

  • June 5, 2018

    VC-Backed Verrica Pharmaceuticals Joins June IPO Parade

    Verrica Pharmaceuticals Inc., a venture-backed medical technology company developing treatments for skin diseases and warts, launched an estimated $75 million initial public offering on Tuesday, joining at least five companies lining up offerings to price next week.

  • June 5, 2018

    Funko Bobbled IPO, Investor Says In Stock-Drop Suit

    Bobblehead and figurine maker Funko's misleading statements during a $116 million initial public offering last year led its stock to tank soon after it started trading, an investor claimed in Washington federal court on Monday, accusing the toymaker in a proposed securities class action of fudging its financial strength and the sustainability of its business.

  • June 5, 2018

    Former Boston Exec Devised State Street Fraud, Jury Hears

    Federal prosecutors pinned a post-recession hidden fee scandal at State Street Corp. on an executive at the bank’s Boston headquarters, telling jurors on Tuesday that it was his idea to add pennies to the individual trades within multibillion-dollar transactions to conceal massive, illegal commissions in 2010 and 2011.

  • June 5, 2018

    Ex-Nomura RMBS Trader Scores New Trial After Litvak Ruling

    A Connecticut federal judge on Tuesday granted a new trial to a former Nomura Securities International Inc. residential mortgage-backed securities trader accused of padding transactions with secret commissions, citing the Second Circuit’s Litvak ruling.

  • June 5, 2018

    2nd Circ. Wary Of Dead CEO's $194M Cash-For-Stock Tax Win

    Two Second Circuit judges looked unhappy Tuesday with a U.S. Tax Court decision letting the estate of deceased Monster.com founder Andrew McKelvey avoid liability on $194 million that two banks gave him in exchange for an obligation to turn over chunks of his lode of the employment website's stock.

  • June 5, 2018

    Nine West Creditors Can Probe $2.2B Sycamore Takeover

    A New York bankruptcy court Tuesday granted a request by the unsecured creditors of Nine West Holdings Inc. to investigate whether Sycamore Partners' $2.2 billion takeover of the women’s shoe and apparel company enriched the private equity firm at the debtors’ expense.

Expert Analysis

  • A General Counsel's Tips For Succeeding As A New Associate

    Jason Idilbi

    Based on his experience as a BigLaw associate for six years and now as general counsel for a tech startup, Jason Idilbi of Passport Labs offers some best practices for newer associates — whether they are serving external clients or senior attorneys within their firms.

  • SEC Proposal Strikes At The Heart Of Broker-Dealer Model

    Steven Lofchie

    The U.S. Securities and Exchange Commission's proposed best-interest requirement for broker-dealers would likely discourage the offering of “full-service” brokerage and encourage alternatives, such as “discount” brokerage and fee-based advisory accounts, says Steven Lofchie of Cadwalader Wickersham & Taft LLP.

  • Safeguards Against State, Parallel Proceedings Post-Cyan

    Shayne Clinton

    With the U.S. Supreme Court's decision in Cyan v. Beaver County opening up more forums to securities class action plaintiffs, newly public companies or other registered offerors will face possible duplicative actions in state and federal courts. However, companies are not left without any weapons in the arsenal, say Shayne Clinton and Britt Latham of Bass Berry & Sims PLC.

  • Opinion

    SEC Needs To Better Understand Cryptocurrency Industry

    Harvey Kesner

    While subpoenas fly and much confusion surrounds unregistered initial coin offering sales, the U.S. Securities and Exchange Commission staff struggles to grasp the evolving businesses around blockchain. The staff is grinding out ill-fitted comments to issuers, relying on assumptions incompatible with this brand-new industry, says Harvey Kesner of Sichenzia Ross Ference Kesner LLP.

  • Series

    Judging A Book: Berzon Reviews 'We The Corporations'

    Judge Marsha Berzon

    My advice to prospective clerks will now include the suggestion that they read Adam Winkler's new book, "We the Corporations: How American Businesses Won Their Civil Rights," for the same reason I recommend taking a corporations course — appreciating the critical role of business corporations in American life and law, says Ninth Circuit Judge Marsha Berzon.

  • What ABA’s Position On Harassment Means For Employers

    Minjae Song

    In the #MeToo era, the American Bar Association’s recently passed Resolution 302 is a reminder of harassment policy best practices to all employers, and it should be of particular interest to employers in the legal industry, say attorneys with Hunton Andrews Kurth LLP.

  • Takeaways From 2nd Circ. Reversal Of Litvak Conviction

    Harry Sandick

    One wonders if the Second Circuit’s reversal of Jesse Litvak’s securities fraud conviction in the District of Connecticut, together with prosecutors’ recent loss at trial in United States v. Demos, will impact the government’s decision to prosecute further the other bond traders who are currently facing charges in the same courthouse, say Harry Sandick and Michael Schwartz of Patterson Belknap Webb & Tyler LLP.

  • Practical Considerations For Litigating Proportionality

    Elizabeth McGinn

    By incorporating an explicit requirement that discovery must be “proportional to the needs of the case,” the 2015 amendments to the Federal Rules of Civil Procedure garnered much speculation as to their impact on courts’ decision-making processes. Now that the rules have been implemented for over two years, several themes have emerged, say attorneys with Buckley Sandler LLP.

  • The Regulatory Concerns Of Crypto Exchange Registration

    Jennifer Connors

    If cryptocurrency exchange Coinbase completes a recently initiated regulatory process and becomes a registered exchange, it may herald a wave of registration with the U.S. Securities and Exchange Commission. In this event, exchanges should take note of the regulatory requirements and concerns and decide which registration option fits best with their business model, say attorneys with Holland & Knight LLP.

  • Supporting Nontraditional Data Types In E-Discovery

    Jason Paroff

    The advancement in connected technologies and software has created an explosion of nontraditional data sources that present challenges to e-discovery practitioners. Many tools and techniques used to process traditional data may not be practical for these new data types, say Jason Paroff and Sagi Sam of Epiq.