Capital Markets

  • April 30, 2018

    'Testing The Waters' Expansion Could Make IPOs Easier

    If the U.S. Securities and Exchange Commission relaxes restrictions on company communications prior to initial public offerings to a wider group of companies — a perk currently limited to smaller firms — capital markets attorneys say more large companies would welcome the freedom to test the IPO waters.

  • April 30, 2018

    Mass. Man Owes $1.3M For Med. Marijuana Stock Scheme

    The U.S. Securities and Exchange Commission nabbed a $1.26 million default judgment on Monday in Massachusetts federal court against a resident accused of orchestrating a two-part plot to secretly seize control of a medical marijuana marketing company and sell millions of its public shares that were restricted by securities laws.

  • April 30, 2018

    Glencore To Shell Out $2M To Settle Illegal Trading Claims

    The U.S. Commodity Futures Trading Commission on Monday fined units of Glencore PLC $2 million to settle claims that they violated positions limits on cotton futures contracts and engaged in illegal noncompetitive trading.

  • April 30, 2018

    Deals Rumor Mill: Tencent Music, CVC Capital, Volkswagen

    China’s Tencent Music is soliciting pitches from investment banks for a role in its planned multibillion-dollar IPO, CVC Capital Partners has interest in acquiring the market research division of British marketing and communications company WPP, and Volkswagen and Didi Chuxing are in talks about a potential joint venture.

  • April 30, 2018

    Supreme Court Won't Hear Barclays Dark Pool Cert Appeal

    The Supreme Court on Monday denied Barclays PLC's appeal of a Second Circuit ruling that upheld class certification for a group of investors in a suit over fraud allegations tied to Barclays' dark pool trading platform, keeping in place a decision that Barclays' attorneys have argued substantially lowered the burden of proof for plaintiffs in securities fraud cases.

  • April 30, 2018

    SEC Sues Securities Atty, 2 Others Over Microcap Schemes

    The U.S. Securities and Exchange Commission announced Monday that it has filed claims against a lawyer and two others in Florida federal court over a pair of microcap schemes involving undisclosed “blank check” companies.

  • April 30, 2018

    CFTC Demands $103M In Iraqi Currency Fraud Case

    The U.S. Commodity Futures Trading Commission said Monday an Illinois man and his Nevada-based foreign exchange currency companies should cough up $103 million in disgorgement and civil penalties after an Alabama federal judge found the trio orchestrated a forex trading scheme involving Iraqi dinars and Vietnamese dong.

  • April 27, 2018

    SEC's Clayton Hasn't Shut Door On IPO Arbitration Pacts

    U.S. Securities and Exchange Commission Chairman Jay Clayton has indicated he is undecided on whether companies should be allowed to impose arbitration agreements on investors in initial public offerings, telling a congresswoman that while exploring the idea isn't a priority, he is open to having people make their case.

  • April 27, 2018

    6 Firms Will Steer IPOs Totaling About $693M To Start May

    Six firms will guide seven issuers scheduled to price initial public offerings projected to raise $693 million during the week beginning April 30, kicking off May with a busy slate of small to midsize deals from the construction, technology, energy and life sciences industries.

  • April 27, 2018

    Ex-Barclays Trader Slams DOJ’s 'Futile' FIRREA Indictment

    A former Barclays PLC trader on Friday took aim at the U.S. Department of Justice’s latest version of an indictment accusing him of scheming to defraud Hewlett-Packard Co. in a £6 billion options transaction, calling its use of the Financial Institutions Reform, Recovery and Enforcement Act against him a “transparent and futile effort to salvage a time-barred prosecution.”

  • April 27, 2018

    Deals Rumor Mill: T-Mobile, Boeing, Ping An

    T-Mobile and Sprint are looking to finish talks to merge as soon as next week, Boeing is close to striking a deal to snap up KLX Inc., and Ping An’s online health care platform reaped $1.1 billion in its initial public offering.

  • April 27, 2018

    Ex-Trader's Acquittal Shines Spotlight On Evidence Of Intent

    The loss that a New Haven federal jury handed to the government in its case against a former UBS trader accused of scheming to manipulate the precious metals futures market illustrates the risks in prosecuting criminal spoofing cases without more direct evidence of intent, legal experts say.

  • April 27, 2018

    Venture-Backed DocuSign Leads 5 IPOs With $629M Deal

    Shares of DocuSign Inc. began trading Friday after the venture-backed electronic signature company priced a $629 million initial public offering above its forecasted range, topping a technology-heavy lineup of five IPOs that raised more than $1.4 billion total during the week.

  • April 27, 2018

    Precious Metals Co. Duped Buyers Out Of $16M, CFTC Says

    The U.S. Commodity Futures Trading Commission on Thursday socked the owner of a precious metals company who is already under criminal indictment with a suit in Texas federal court, saying he conned customers out of more than $16 million and used the funds to pay back other customers, cover expenses and invest in other businesses.

  • April 26, 2018

    Investor Wants To Trade Claims While On Creditor Committee

    An Aurelius Capital Management unit has asked that it be allowed to continue trading claims in the Nine West bankruptcy case, despite the fact that the hedge fund is serving on the Committee of Unsecured Creditors.

  • April 26, 2018

    AARP, AGs Fight Invalidation Of Fiduciary Rule At 5th Circ.

    AARP and the attorneys general of California, New York and Oregon urged the full Fifth Circuit on Thursday to overturn a panel decision that invalidated the U.S. Department of Labor’s 2016 fiduciary rule, saying the rule is necessary to protect the retirement savings of millions of workers.

  • April 26, 2018

    Ex-HSBC Banker Gets 2 Years In Prison For Forex Fraud

    Former HSBC foreign currency exchange executive Mark Johnson was sentenced to two years in prison on Thursday and immediately taken into custody following his conviction for defrauding Cairn Energy PLC by front-running a $3.5 billion currency swap in order to make millions of dollars for the bank at the expense of the Scottish oil and gas developer.

  • April 26, 2018

    Don't Revive $2.5B Offering Suit, Barclays Tells 2nd Circ.

    Barclays PLC asked the Second Circuit on Wednesday to uphold a lower court’s dismissal of a long-running securities class action alleging the bank misled investors before a $2.5 billion notes offering in 2008, saying the decision correctly found the banking giant did not knowingly hide material information from investors.

  • April 26, 2018

    Wall Street Groups Urge Reforms To Reverse IPO Decline

    Seeking to reverse a decline in initial public offerings, Wall Street trade group the Securities Industry and Financial Markets Association and several partners published a slew of reform recommendations Thursday aimed at making public markets more attractive to companies.

  • April 26, 2018

    Puerto Rican Unions Sue To Void Restructuring Proceedings

    A handful of nonprofits and labor unions have hit Puerto Rico’s embattled federal oversight board with a lawsuit that seeks to disband it, calling the board a “reckless, dictatorial and racist” entity that’s unconstitutional and riddled with conflicts of interest.

Expert Analysis

  • Lawyering A La Carte: Unbundled Dispute Resolution Services

    David Wallace

    There's no reason for limiting unbundled legal services to family law or even pro se litigants. Wider adoption, especially by litigators, presents an opportunity to correct law's distribution and pricing problem, to make justice practically available to all, and to dethrone litigation as the "sport of kings," says New York-based trial lawyer David Wallace.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 2

    John Reed Stark

    Coordinated federal initiatives scrutinizing cryptocurrency exchanges may be viewed as alarming by entrepreneurs and their advisers. But we believe such concerns are largely misguided, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • You’re Perfect, Now Change: Perfectionism Hurts Lawyers

    Peter Norman

    Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 1

    John Reed Stark

    Cryptocurrency exchanges must be prepared for a relentless U.S. regulatory onslaught. That seems to be the clear warning embodied in the confluence of three events last week involving three agencies that are no longer content with generating regulatory headwinds, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • Opinion

    Grassley, Feinstein Debate Judicial Vetting, Obstruction

    Sen. Chuck Grassley

    It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.

  • 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

    Overstock.com’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.