Securities

  • September 21, 2017

    Marvell Waived Privilege Handing Report To SEC, Judge Says

    A California federal judge Thursday ordered Marvell Technology to give a putative class of investors the underlying work papers used to prepare an investigatory report that Marvell commissioned on its accounting practices, saying such reports are “suspect” and that tendering it to the U.S. Securities and Exchange Commission waived any privilege.

  • September 21, 2017

    Wolf Haldenstein Nabs Top Spot In Zoompass Investor Suit

    Wolf Haldenstein Adler Freeman & Hertz LLP will serve as lead counsel for a proposed class of Zoompass Holdings Inc. investors in a suit alleging the Canadian financial technology company concealed its involvement in a scheme to promote its stock, a New Jersey federal judge said on Wednesday.

  • September 21, 2017

    SEC Unveils Guidance On Pay-Ratio Rule Compliance

    The U.S. Securities and Exchange Commission released guidance Thursday advising companies on how to comply with controversial new pay-ratio rules designed to illustrate difference between the pay of chief executives and median employees in a manner the agency says is flexible and less costly.

  • September 21, 2017

    SEC Seeks No Penalty From IT Firm Over Execs' Alleged Fraud

    A bankrupt information technology company whose former top executives face criminal fraud charges for allegedly plundering their company’s accounts and trying to hide it won’t have to pay a cent under a settlement filed by the U.S. Securities and Exchange Commission in Illinois federal court on Wednesday.

  • September 21, 2017

    Steptoe & Johnson Partner Tapped To Head CFTC Division

    The U.S. Commodity Futures Trading Commission said Wednesday that a Steptoe & Johnson LLP partner has been appointed to serve as director of the agency's Division of Swap Dealer and Intermediary Oversight.

  • September 21, 2017

    Ex-Broker Skips Court After Telling SEC 'Just Die. Please'

    A Manhattan judge was set on Thursday to order a default judgment against a former broker for subjecting unsophisticated clients to risky trades and spending client money on bar tabs, after the New York man sent a “rude and inappropriate” email to the U.S. Securities and Exchange Commission and skipped court.

  • September 21, 2017

    Lehman Faulty-Mortgage Suit Must Wait, FDIC Says

    The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.

  • September 21, 2017

    Investors Seek Fees While Altor-NantCell Deal Suit Goes On

    Altor Bioscience Corp. shareholders challenging the merger with billionaire physician Patrick Soon-Shiong's NantCell Inc., purportedly valued at nearly $300 million, pushed the Delaware Chancery Court on Wednesday for a mootness fee award as the case remains running, arguing they've so far garnered valuable supplemental disclosures from the company.

  • September 21, 2017

    IRS To Issue Letter Rulings On Tax-Free Distributions

    The Internal Revenue Service announced Thursday it will issue rulings on tax questions regarding a corporation’s stock distributions under a section of the Internal Revenue Code that allows for tax-free distributions to shareholders in certain circumstances.

  • September 21, 2017

    Rothstein Feeder Fund Slaps Insurance Broker With $63M Suit

    The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.

  • September 21, 2017

    MF Global Asks To Appeal Arbitration Order In Insurer Row

    MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.

  • September 21, 2017

    Ex-CEO Dodges Paying Full Fees Billed By Paul Weiss, Cooley

    The Second Circuit on Thursday ordered the $6.2 million restitution that Duane Reade Inc.’s former CEO must pay in connection with his 2010 fraud conviction to be pared down, saying he doesn’t have to pay for legal fees billed by Duane Reade counsel Paul Weiss Rifkind Wharton & Garrison LLP and Cooley LLP for monitoring the criminal trial.

  • September 21, 2017

    Swedish Telecom Telia To Pay $1B In FCPA Settlement

    Swedish telecommunications giant Telia Co. AB on Thursday pled guilty in a New York federal court on behalf of a subsidiary to paying massive bribes to government officials in Uzbekistan to enter the market there as part of a worldwide deal that will cost Telia nearly $1 billion.

  • September 21, 2017

    $30M Settlement In Investors' Suit Against Lender Wins OK

    A Pennsylvania federal judge on Wednesday signed off on a $30 million settlement between payday lender DFC Global and a class of institutional investors who alleged that it violated securities laws by misrepresenting its financial health and quality of lending practices.

  • September 21, 2017

    Sheppard Mullin Adds New Corporate Partner To SF Office

    Sheppard Mullin Richter & Hampton LLP added a partner from Manatt Phelps & Phillips LLP with expertise in financial services to its corporate practice group in San Francisco this week.

  • September 21, 2017

    CFTC Accuses Brooklyn Programmer Of $600K Bitcoin Scam

    The U.S. Commodity Futures Trading Commission sued a Brooklyn computer programmer on Thursday in Manhattan federal court for allegedly stealing $600,000 in bitcoin from dozens of investors in his company and claiming that he had been hacked in an effort to cover it up.

  • September 21, 2017

    No New Trial For Commodities Pool Chief In Fraud Case

    An Illinois federal judge refused Wednesday to grant a new trial for a Nebraska-based commodities pool operator found liable for fraud by a jury, and granted a highly dialed-back version of the monetary punishment requested by the Commodity Futures Trading Commission.

  • September 21, 2017

    Feds Fight Shkreli Bid To Release $5M In Bail Funds

    Brooklyn federal prosecutors pushed back Wednesday against a request by Martin Shkreli to get his hands on his $5 million bail following the controversial former pharmaceutical executive’s remand to custody, saying the funds should be held to satisfy potential financial penalties he faces at sentencing.

  • September 21, 2017

    Optima Steel Submits Last-Minute Changes To Ch. 11

    Caught short by a parent company’s failure to complete a $200 million post-confirmation Chapter 11 investment, Optima Specialty Steel Inc. on Wednesday launched a modified reorganization plan that erases the corporate parent’s equity.

  • September 21, 2017

    SEC Failed To Heed Warnings Of Weak Cyber Defenses

    A July government watchdog report warned the U.S. Securities and Exchange Commission that it had not fully put in place a system for monitoring cyber intrusions on its financial systems, even as the hack of a key electronic filing system for public company disclosures, which was revealed Wednesday, may have enabled insider trading.

Expert Analysis

  • Why Kokesh Really Matters

    Matthew Martens

    In the aftermath of Kokesh, the U.S. Securities and Exchange Commission has continued filing enforcement actions in federal district courts seeking disgorgement, as if the import of the decision is only that disgorgement is subject to a five-year statute of limitations. This overlooks two far more significant ramifications of Kokesh for SEC enforcement practice, say attorneys with WilmerHale.

  • Extending CalPERS V. ANZ Securities To Exchange Act Cases

    Alan Glickman

    The Third Circuit in North Sound Capital v. Merck became the first federal appellate court to extend the U.S. Supreme Court’s ruling in California Public Employees’ Retirement System v. ANZ Securities, applying it to claims brought under the Exchange Act. However, the decision's significance remains unclear, say attorneys with Schulte Roth & Zabel LLP.

  • Opinion

    Digital Realty Trust V. Somers May Kill Corporate Compliance

    Stephen Kohn

    During its upcoming term, in Digital Realty Trust v. Somers, the U.S. Supreme Court will decide whether employees who report violations internally are protected under Dodd-Frank. If the court requires whistleblowers to report violations directly to the U.S. Securities and Exchange Commission, internal corporate compliance programs will be crippled, says Stephen Kohn of Kohn Kohn & Colapinto LLP.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • When Can LLCs Appoint A Special Litigation Committee?

    Muhammad Faridi

    A New York state court’s recent decision in LNYC Loft v. Hudson Opportunity Fund regarding the authority of a limited liability company to appoint a special litigation committee represents a departure in the trend of courts using statutory and common law to address questions that are not directly addressed by an LLC operating agreement, say Muhammad Faridi and Elizabeth Quirk of Patterson Belknap Webb & Tyler LLP.

  • Applying Delaware Contract Law To LPA Safe Harbors

    Darren Kaplan

    The Delaware Chancery Court's opinion in Morris v. Spectra Energy provides a road map for the litigation of safe-harbor provisions in limited partnership agreements and invites close review by both private fund litigators and drafters of Delaware LPAs, says Darren Kaplan of Stueve Siegel Hanson LLP.

  • 'Per-Doc' Pricing Can Improve Document Review

    file folder

    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • When A SOX Whistleblower Claim Applies Extraterritorially

     Matthew LaGarde

    The recent decision from the U.S. Department of Labor's Administrative Review Board in Blanchard v. Exelis Systems is important because it makes clear that, so long as the misconduct reported by the employee affects the United States in “some significant way,” the Sarbanes-Oxley Act will apply extraterritorially, says Matthew LaGarde of Katz Marshall & Banks LLP.

  • The Regulatory Risks Of A Deregulatory Environment

    Mark Schonfeld

    Now that we are several months into an administration with an agenda of financial deregulation, one might reasonably believe financial institutions are in for several years of relative quiet from regulators. However, at least two factors raise the potential risk for a future wave of investigative activity, says Mark Schonfeld of Gibson Dunn & Crutcher LLP.

  • Financial Crisis Anniversary

    2 Pillars Of Commonsense Reform

    Norm Champ

    The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.