Securities

  • June 27, 2017

    SEC Accuses 3 Of Illicit Ariad Trades

    Two former Ariad Pharmaceuticals Inc. employees and the husband of an employee were sued this week by securities regulators for allegedly trading and tipping on inside information about a cancer drug.

  • June 27, 2017

    Wyly Estate, SEC Spar Over Whether Kokesh Ends Disgorgement

    The U.S. Securities and Exchange Commission and the estate of late business tycoon Charles Wyly Jr. shot off opposing briefs in the Second Circuit last week over whether the agency’s claims for disgorgement survive Wyly’s death or whether the U.S. Supreme Court’s recent Kokesh ruling puts his estate off the hook.

  • June 27, 2017

    Supreme Court Denies Cert In Transocean Investor Suit

    The U.S. Supreme Court said Tuesday it wouldn't hear an appeal of a Second Circuit decision that refused to revive a suit from Transocean investors who claimed they were deceived about company safety practices by the owner of the Deepwater Horizon drilling rig when Transocean merged with GlobalSantaFe Corp.

  • June 27, 2017

    Fed Fines BNY Mellon $3M For Improper Capital Calculations

    The Federal Reserve on Tuesday fined Bank of New York Mellon Corp. $3 million for incorrectly assessing the risks in one of its portfolios, allowing the bank to claim higher capital ratios than were actually in place.

  • June 27, 2017

    Monitorships In DOJ Deals Reached New Height, Study Finds

    The U.S. Department of Justice's imposition of corporate monitorships through deferred or non-prosecution agreements reached a high watermark last year, with more required than any year on record, according to a report released on Tuesday.

  • June 27, 2017

    Supreme Court To Review State Jurisdiction In Securities Suits

    The U.S. Supreme Court on Tuesday accepted network support products provider Cyan Inc.’s petition to review whether state courts have jurisdiction to hear investor suits over securities offerings, agreeing to resolve an issue that has divided lower courts.

  • June 26, 2017

    REIT Ex-CFO Tells Jury 'Absolutely' No Intent To Defraud

    The former chief financial officer of American Realty Capital Properties told jurors in his New York federal fraud trial Monday that he "absolutely" did not intend to defraud investors when he made a last-minute adjustment regarding a key earnings metric in a filing to the U.S. Securities and Exchange Commission.

  • June 26, 2017

    IAC Drops Stock-Shuffling Plans, Negating Class Action

    Barry Diller’s InterActiveCorp has dropped a plan to create a new class of nonvoting stock, immediately negating a consolidated class action that followed the company’s announcement last fall, according to filings submitted Friday to Delaware Chancery Court.

  • June 26, 2017

    Southern China Livestock Receiver Appeals Release Ruling

     A “newly appointed” vice chancellor in Delaware’s Chancery Court erred by tossing claims against the former executive of a Chinese livestock company on summary judgment, the company’s court-appointed receiver told the state’s Supreme Court in an appeal filed Friday, arguing the decision contradicted an earlier ruling by a chancellor who recently retired.

  • June 26, 2017

    BancorpSouth Investors Win Class Cert. In AML Probe Suit

    A Tennessee federal judge signed off on Monday on a bid by shareholders in BancorpSouth Inc. to unite as a class in their suit against the company for allegedly lying about its compliance with anti-money laundering laws, saying they met established legal standards.

  • June 26, 2017

    Puerto Rico Defends Methods To Resolve Bond Conflict

    The government of Puerto Rico and its federally appointed oversight board is defending a proposal to appoint independent agents to resolve competing claims over the territory’s sales tax revenues, saying in a Saturday court filing that objecting groups of creditors overlook the board’s neutrality and legal authority.

  • June 26, 2017

    Certainty For Defendants Will Burden Institutional Investors

    The U.S. Supreme Court's Monday ruling that suits over securities offerings are subject to time limits that can't be extended by class action filings will give public companies a measure of certainty against unexpected claims, experts said, but will require more legwork from institutional investors to preserve their claims and could gum up courts with premature opt-out litigation.

  • June 26, 2017

    FelCor Hit With Investor Suit Over Merger With RLJ Lodging

    A putative class of shareholders in FelCor Lodging Trust Inc. hit the company and RLJ Lodging Trust with a suit in Maryland federal court Monday, alleging that material information about the two real estate investment trusts’ plans to create the third-largest U.S. lodging REIT wasn’t adequately disclosed to shareholders.

  • June 26, 2017

    Harsh Words For Shkreli From Jurors As Selection Begins

    Jury selection began on Monday in the securities fraud trial of former Retrophin Inc. and Turing Pharmaceuticals boss Martin Shkreli, with roughly 20 potential jurors being excused for cause due to their opinions of the controversial pharma executive, who one juror called, “the most hated man in America.”

  • June 26, 2017

    Paul Hastings To Pay $46.5M In Deal To End ExamWorks Suit

    The Delaware Chancery Court is set to consider in September an $86.5 million deal settling the challenge to Leonard Green & Partners $2.2 billion purchase of ExamWorks Group Inc., with Paul Hastings LLP, accused of aiding and abetting alleged fiduciary duty breaches, responsible for $46.5 million of that amount.

  • June 26, 2017

    Madoff Trustee Inks $23M Deal With Fraudster's Sons' Estates

    The trustee overseeing the unwinding of Bernard Madoff’s investment firm struck a $23 million deal with the estates of Madoff’s two sons, according to court papers filed Monday in New York showing the estates of each brother will be left with $3.75 million combined.

  • June 26, 2017

    NJ Judge OKs $4M Deal Ending Investor Suit Over Travel Co.

    A New Jersey federal judge signed off Monday on a $4.1 million settlement ending a securities fraud class action brought against a Chinese online travel agency and its auditors, finding the investors behind the suit had secured a fair and reasonable deal that would avoid depleting the few assets they could realistically hope to recover.

  • June 26, 2017

    Bancorp Says Earlier Settlement Bars Derivative Claims

    Attorneys for The Bancorp Inc. argued Monday in Delaware Chancery Court that a books and records demand from a shareholder should not be granted because it is being made for the purpose of pursuing a derivative lawsuit barred by the settlement of another class action.

  • June 26, 2017

    The Supreme Court Term By The Numbers

    Despite a contentious confirmation hearing for Justice Neil Gorsuch, the U.S. Supreme Court term itself was mellow this year, with more unanimous cases and fewer controversial decisions. Still, there were a handful of business rulings that packed a punch.

  • June 26, 2017

    The Firms That Won Big At The Supreme Court

    One firm went undefeated at the U.S. Supreme Court this term. Another built on last year’s winning streak. And some high court powerhouses took their lumps. Here, Law360 breaks down how the firms most frequently seen at oral arguments performed this term.

Expert Analysis

  • Rules Of The Road For Accessing Capital In Europe

    Peter Astleford

    Despite the advances of the European single market, there remains a confusing combination of EU and nation-specific rules governing the sale of fund products in Europe. Attorneys with Dechert LLP answer some commonly asked questions and explain how to sell alternative investment funds in the European Economic Area.

  • FINRA Continues To Step Up Focus On Senior Investors

    Bruce Bettigole

    The Financial Industry Regulatory Authority recently introduced new sanction guidelines that allow FINRA staff to consider the vulnerability of customers in determining appropriate sanction levels. These guidelines are only one of many recent FINRA publications related to the protection of senior investors, say Bruce Bettigole and Sarah Razaq Sallis of Eversheds Sutherland.

  • An Interview With Floyd Abrams

    Randy Maniloff

    It was a privilege to spend a half-hour on the phone with the nation's foremost First Amendment lawyer. Floyd Abrams and I discussed his career, his new book and what he sees in his free-speech crystal ball. And he was a very good sport when I asked if it is constitutionally protected to yell inside a movie theater: “Citizens United is a terrible decision and should be set on fire,” says Randy Maniloff of White and Williams LLP.

  • Bucking Tradition: NewLaw And The Coming Millennials

    Jill Dessalines

    Recent surveys show that law firms won't be able to rely on the flood of associates their business model demands as long as they require them to dedicate all day, most nights, every weekend and all holidays to firm business, says Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former assistant GC at McKesson Corp.

  • State AGs Responding To Trump Policies: 3 Areas To Watch

    Michael Rossetti

    The federal government’s unfolding enforcement priorities have galvanized state attorneys general into action. We expect this trend to continue, say attorneys with Akin Gump Strauss Hauer & Feld LLP.

  • 2 Diverging Standards On Disclosing Interim Financial Info

    Kevin LaCroix

    With the Second Circuit's opinion in Stadnick v. Vivint Solar, we now have a situation where two federal appellate courts have promulgated differing standards to determine when companies making initial public offerings must disclose interim financial information. The question is whether we have a “split between the circuits” of the kind that might attract the attention of the U.S. Supreme Court, says Kevin LaCroix of RT ProExec.

  • Monthly Column

    Gray Matters: We Feel, We Decide

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    Despite legal education training and the focus on logic and reason by the courts, lawyers address emotional issues on a daily basis — albeit more indirectly. But a shift to consciously and strategically addressing emotions gives us a powerful tool to help our clients reach faster, better decisions, say dispute resolution experts Robert Creo and Selina Shultz.

  • Index Eligibility As Governance Battlefield

    Ethan Klingsberg

    The recently launched campaign by the Council of Institutional Investors, among others, to block Snap Inc.’s eligibility for S&P Dow Jones and other indices may be looked back on as a turning point in an expansion of the governance battlefield. Recent developments in the realm of dual-class issuers shed light on whether this potential movement of governance matters into index eligibility criteria is sensible, says Ethan Klingsberg ... (continued)

  • The Misconception About SWS Appraisal Decision

    Gail Weinstein

    The Delaware Chancery Court’s recent decision in SWS Group raises the question whether below-the-merger-price appraisal results will now become more common. A number of commentators have suggested that the answer is yes, but their conclusion follows what we believe to be a misconception, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.