Securities

  • April 25, 2017

    DA Failed To Pin Fraud On Dewey's DiCarmine, Jury Hears

    An attorney for the former executive director of Dewey & LeBoeuf LLP on Tuesday made her final remarks to the jury in the retrial over a purported scheme to fraudulently prop up the now defunct law firm, telling a Manhattan jury no witness testimony or evidence implicates Stephen DiCarmine in a crime.

  • April 25, 2017

    Citibank Defends Trade Valuations To Open $2B Lehman Suit

    Lawyers for Citibank NA came out swinging Tuesday to open a bankruptcy court trial over the nearly $2 billion valuation of about 30,000 derivatives trades that went into default after Lehman Brothers’ 2008 collapse, saying Citibank used proper methods to determine the cost of replacing those trades.

  • April 25, 2017

    Calif. Broker Gets 6 Months In Pump-And-Dump Scheme

    A Florida federal judge sentenced a California-based stock promoter Monday to six months in prison for his role in an alleged pump-and-dump scheme in which he and several co-conspirators issued shares in fraudulent shell companies and sold them to investors at a profit.

  • April 25, 2017

    Southern Co. Investors Seek Board Shift Amid Project Woes

    Several investors in Southern Co. sent a letter Monday criticizing executive compensation at the utility company and urging fellow shareholders to vote against re-electing two board members at an upcoming meeting.

  • April 25, 2017

    Ex-Merrill Lynch Adviser Cops To Stealing $1M From Clients

    A former Merrill Lynch investment adviser pled guilty Tuesday to pocketing $1 million belonging to two of his clients by withdrawing the funds without the clients' permission and passing them through a Chicago-based chamber of commerce.

  • April 25, 2017

    CFTC Says Trade Advisers Can Use 3rd-Party Recordkeepers

    The U.S. Commodity Futures Trading Commission has agreed that commodity trading advisers can use offsite data centers and services to manage and store their books and records, potentially allowing them to lower costs and increase efficiency.

  • April 25, 2017

    House GOP's Dodd-Frank Overhaul Could Muzzle Regulators

    A bill by House Republicans seeking to rewrite the Dodd-Frank Act would bring major changes to the way primary banking regulators are funded and how much leeway they have in shaping the industry, ultimately making it harder to oversee Wall Street practices, attorneys and policy experts say.

  • April 25, 2017

    Expedia Tech Guy Who Traded On Hacked Emails Sentenced

    A former computer technician at Expedia Inc. who pled guilty last year to snooping on executives’ emails and trading on insider information about revenues to gin up $331,000 in illicit profits was sentenced to 15 months in prison by a federal judge in Washington state Tuesday.

  • April 25, 2017

    Swaps Buyers Say Morgan Stanley Slow-Walking ISDAfix Docs

    Investors who sued banks for rigging a benchmark swaps rate asked a New York federal judge on Monday to appoint an authority to make sure Morgan Stanley turns over all the files it was ordered to and to make the investment bank pay for it.

  • April 25, 2017

    SEC Hands Nearly $4M Award To Whistleblower

    The U.S. Securities and Exchange Commission on Tuesday handed over nearly $4 million, its 10th-highest whistleblower award to date, to an individual who alerted the agency about securities misconduct, bringing the program’s total endowment to approximately $153 million.

  • April 25, 2017

    Ex-Hunton Atty Seeks Retrial After Insider Trading Conviction

    The insider trading conviction of former Hunton & Williams LLP patent lawyer Rob Schulman was based on insufficient evidence that he meant to profit from tipping an investment adviser about Pfizer Inc.’s plans to acquire his drugmaker client, Schulman argued in a pair of filings Monday in New York federal court.

  • April 25, 2017

    Stock Is Taxable Despite Transactions, Tax Court Says

    The U.S. Tax Court ruled Monday that two former business partners are on the hook for about $46 million each, plus penalties, for structuring transactions involving the partners' shares in a distressed debt loan business so as to avoid reporting them as taxable compensation.

  • April 25, 2017

    Biotech Investors Seek Ruling On Jefferies Arbitration Fight

    Shareholders who bought stock in a since-failed biotech company urged a Texas federal court Tuesday to reject Jefferies LLC's attempt to enjoin arbitration before the Financial Industry Regulatory Authority, saying the investment firm’s requested preliminary injunction is identical to the end goal of its suit: to dodge arbitration.

  • April 25, 2017

    Ex-Pa. Judicial Ethics Panelist Gets 6.5 Years In $3M Fraud

    A former Pennsylvania stockbroker who at one point sat on the state’s Court of Judicial Discipline received six and a half years in prison Monday after pleading guilty to a $3 million fraud scheme that involved false promises of real estate investments and wine and olive oil imports.

  • April 25, 2017

    Texas AG Paxton Asks Harris County Directly For New Judge

    Defense lawyers in the felony securities fraud case against Texas Attorney General Ken Paxton on Monday directly asked Harris County to assign a new judge to the case, again arguing that without their consent, the original judge can no longer preside over the case after ordering a change in trial venue.

  • April 25, 2017

    SEC Says Del. Man Ran $1.7M Mortgage Investment Scheme

    The U.S. Securities and Exchange Commission filed a lawsuit Tuesday in Delaware federal court alleging a Delaware man raised more than $1.69 million from unsophisticated investors by falsely claiming he was running a highly successful mortgage business.

  • April 25, 2017

    Ex-Cay Clubs CFO Seeks Leniency In $300M Ponzi Sentence

    A Florida real estate executive convicted for bank fraud in an alleged $300 million Ponzi scheme repeated his opposition to prosecutors’ recommendation of a 93-year prison sentence and millions in restitution and fines on Monday, saying he has no prior arrests and has a low likelihood of recidivism.

  • April 25, 2017

    SEC Wants Default Judgment Over $4.8M Stock Sale Fraud

    The U.S. Securities and Exchange Commission has urged a Florida federal judge to enter default judgment against a Florida man regarding allegations he helped sell approximately $4.8 million in shares in a purported lottery business while misrepresenting how the funds were used.

  • April 25, 2017

    Air Methods Investors Seek Appraisial After $2.5B Deal

    A group of investment firms, including funds related to Water Island Capital and Litman Gregory Master Funds, asked Delaware’s Chancery Court on Monday to determine the fair value of private equity firm American Securities LLC’s buyout of helicopter medical transporter Air Methods Corp.

  • April 25, 2017

    Wells Fargo Board Re-Elected Despite Shareholder Anger

    Wells Fargo & Co. shareholders re-elected all 15 members of the embattled bank’s board of directors on Tuesday, but the results at the frequently raucous meeting showed discontent with Wells Fargo board members who were in place before revelations about fake account generation came to light.

Expert Analysis

  • What Act 170 Means For Shareholder Litigation In Pa.

    Michael Kichline

    Pennsylvania corporations should not overlook Act 170’s provisions concerning shareholder litigation, which differ from Delaware’s standards and procedures in several important respects. The newly effective law is more demanding of shareholders and deferential to the properly considered determinations of a corporation, say Michael Kichline and Stuart Steinberg of Dechert LLP.

  • Examining FINRA Plan To Liberalize Advertising Rules

    Matthew R. Silver

    A recent proposal by the Financial Industry Regulatory Authority to liberalize restrictions on certain types of performance projection materials may alleviate some of the conflict that has existed in performance advertising rules under the Investment Advisors Act and FINRA rules, says Matthew Silver of Drinker Biddle & Reath LLP.

  • Opinion

    Let's Talk About Half-Hearted Innovation

    Michael Moradzadeh

    Allowing attorneys to telecommute may seem like a great fix for law firms. But without significant changes to the firm's culture, telecommuting is just a patch applied to the problem of attrition, says Michael Moradzadeh, founding partner of Rimon PC.

  • A Closer Look At Financial CHOICE Act 2.0

    Rodgin Cohen

    The recently released amended version of the Financial CHOICE Act builds on and retains key features of the original act adopted in the House Financial Services Committee last year, including its targeted approach of amending, repealing or replacing individual provisions of the Dodd-Frank Act. There are, however, several key modifications in the revised legislation, say attorneys with Sullivan & Cromwell LLP.

  • Will Corporate Monitor Reports Become Public?

    John Wood

    If independent compliance monitorships are to remain an important part of how the U.S. government resolves corporate investigations, it is imperative that courts eliminate recent uncertainty and protect monitor reports from public disclosure, says John Wood, a partner at Hughes Hubbard & Reed LLP and former U.S. attorney for the Western District of Missouri.

  • 10 Tips For Creating Winning Trial Visuals

    Kerri Ruttenberg

    Effective visuals require effective design. In her new book, "Images with Impact: Design and Use of Winning Trial Visuals," published by the American Bar Association, trial lawyer and Jones Day partner Kerri Ruttenberg discusses how to design and use visuals to help viewers understand, believe and remember the messages being conveyed.

  • Roundup

    Counsel To Counsel: Insights From Law Firm GCs

    Icon

    General counsel at four law firms share the biggest issues they face in an increasingly complex legal environment.

  • Rebuttal

    In Support Of Delaware’s Merger Litigation Jurisprudence

    Andy Stern

    In a recent Law360 guest article, two members of the plaintiffs bar contended that Delaware’s materiality standard for corporate disclosure has become more corporate-friendly in recent years. But a closer inspection reveals that Delaware law remains focused on providing a fair balance between individual stockholder rights and the avoidance of frivolous litigation, say attorneys with Sidley Austin LLP.

  • Monthly Column

    Gray Matters: The Attorney-Client Team

    Robert Creo

    A 1979 study of attorney-client interactions revealed startling information: Despite years of education and training to hone their legal expertise, attorneys were not acting as independent counselors but rather allowing their clients to control them. Our experience is that this trend has accelerated, say dispute resolution experts Robert Creo and Selina Shultz.

  • Justices Skeptical Of SEC Disgorgement Without Time Limits

    Dan McCaughey

    The decision by the U.S. Supreme Court in Kokesh v. Securities and Exchange Commission could meaningfully limit the uncertainty, expense and evidentiary disadvantages faced by parties responding to SEC investigations into conduct dating back more than five years, say attorneys with Ropes & Gray LLP.