Securities

  • May 25, 2017

    Top Pence Aide Wants Bank Creditors To Play Regulatory Role

    A top adviser to Vice President Mike Pence on Thursday said that the Trump administration’s main priority in changing financial regulation will be to help creditors and other market participants take a more active role in policing markets.

  • May 25, 2017

    Global Regulators Set FX Market Conduct Code After Scandals

    Central bankers and foreign exchange players on Thursday unveiled a voluntary global code of conduct establishing good practices for wholesale foreign exchange markets, hoping to restore faith in a $5 trillion daily market beset by several enforcement probes and antitrust litigation alleging manipulation.

  • May 24, 2017

    Feds Drop Charges In $30M Pump-And-Dump Row, Cite Ruling

    A federal prosecutor told a New Jersey federal judge Wednesday that the government is dropping criminal charges against an investment adviser in a more-than-$30 million stock market manipulation scheme in light of a ruling dismissing charges in a separate securities fraud case on statute of limitations grounds.

  • May 24, 2017

    8th Circ. Lets St. Louis Bank Out Of Sigillito Ponzi Claims

    The Eighth Circuit on Wednesday let St. Louis Bank off the hook in a suit by investors in a $56 million Ponzi scheme orchestrated by St. Louis attorney and Anglican bishop Martin Sigillito, finding the bank didn’t know the money moving through his accounts was being stolen.

  • May 24, 2017

    Theranos Dodges Investors’ ‘Boundless’ Docs Bid, For Now

    A California magistrate judge refused Wednesday to order Theranos to provide a putative shareholder class with all documents the beleaguered startup produced in similar, recently settled suits over claims it lied about the accuracy of its blood tests, saying he opened discovery, but “that doesn’t mean discovery is boundless.”

  • May 24, 2017

    Judge Won’t Wade Into Mich. Biopharma Co.’s Proxy Fight

    A Michigan federal judge on Wednesday rejected a request by biopharmaceuticals firm Rockwell Medical Inc. that he require several shareholders to register themselves as a group and curtail their contacts with other investors, saying he doesn’t want to chill shareholder activism.

  • May 24, 2017

    Sito Investor Says Voted-Out Board Is Squatting

    Five of targeted-ad company Sito Mobile Ltd.’s six board members were sued in Delaware Chancery Court on Wednesday by a shareholder who says they failed to relinquish their board seats after a vote that removed them.

  • May 24, 2017

    Scripts Unit Awarded $4.6M Refund Withheld By Co. Suing It

    The Delaware Court of Chancery on Tuesday ordered a health company to turn over to an Express Scripts unit that it’s suing for fraud a $4.6 million tax refund it owes based on the sale of a subsidiary, as the chancellor ruled that the lawsuit from the sale had nothing to do with the tax owed.

  • May 24, 2017

    Wells Fargo Fails To Escape Penalty In $1.25B Tax 'Sham'

    Wells Fargo couldn’t escape a 20 percent penalty for a $1.25 billion securities transaction, part of which has been deemed a tax-avoidance sham, but it won a partial victory to deduct interest paid on a foreign loan, under a Minnesota federal court’s ruling Wednesday.

  • May 24, 2017

    Atty Hits Back At Muzzling Motion In Chiquita MDL

    An attorney accused of improperly copying Chiquita Brands International Inc. on privileged communications in a suit claiming the company paid off a paramilitary group responded to the allegations Wednesday in Florida federal court, saying the issue arises from his attempts to sort out duplicate claims and retainer agreements.

  • May 24, 2017

    Nuverra Creditors Nix Ch. 11 Plan, Cite Priority Fouls

    A Nuverra Environmental Solutions Inc. noteholder trustee accused the bankrupt oil field services company on Wednesday of fielding an “impermissible and unconfirmable” Chapter 11 plan that fully pays general unsecured creditors without providing any cash to holders of $41 million in notes.

  • May 24, 2017

    Ponzi Schemer Who Faked Jamaican Biz Loans Gets 6 Years

    A man who ripped off investors in a multimillion-dollar Ponzi scheme, promising that he was investing in Jamaican businesses but really paying down other investors, was sentenced Wednesday in Massachusetts federal court to 70 months, or nearly six years, in prison.

  • May 24, 2017

    Ropes & Gray Draws Veteran Securities Atty From Fried Frank

    A 16-year Fried Frank Harris Shriver & Jacobson LLP securities veteran, whose clients have included a Deutsche Bank AG unit and a nonprofit backed by media mogul Barry Diller, has joined Ropes & Gray LLP.

  • May 24, 2017

    Fried Frank Grows NY Office With Finance, Litigation Hires

    Fried Frank Harris Shriver & Jacobson LLP has expanded its New York office with additions to its finance and real estate litigation practices from Cadwalader Wickersham & Taft LLP and Katten Muchin Rosenman LLP.

  • May 24, 2017

    Delivery Agent Execs Say Stearns Weaver Can't Rep Investor

    Executives of Delivery Agent Inc. have urged a California federal judge to disqualify Stearns Weaver Miller Weissler Alhadeff & Sitterson PA from representing an investor suing the bankrupt online retail club’s brass over allegations of securities fraud, saying a company executive previously sought legal advice from the firm. 

  • May 24, 2017

    Chipotle Shareholder Suits Over Food Safety Consolidated

    A Colorado federal judge on Wednesday consolidated two derivative suits brought by Chipotle Mexican Grill Inc. shareholders alleging officers’ and directors’ food safety failures resulted in costly outbreaks of food-borne illnesses at the restaurant chain starting in 2015.

  • May 24, 2017

    Dad-Son Duo Hit With Securities Suit Over $20M Turf Scheme

    An investor in a sports turf installation company has hit a father and son with an Illinois federal securities suit alleging they cheated investors out of $20 million through a scheme to boost the profits of another family-owned artificial turf supplier.

  • May 24, 2017

    Wastewater Co. CEO Fires Back, Claims Shareholder Sabotage

    The CEO of an Israeli-based wastewater treatment company told the Delaware Chancery Court that a group of shareholders suing him over alleged mismanagement sabotaged the company themselves for their own benefit.

  • May 24, 2017

    DC Circuit Focuses On SEC’s Powers Over ALJs

    Judges on the D.C. Circuit on Wednesday zeroed in on the key question of whether the U.S. Securities and Exchange Commission could overrule its administrative law judges in a case that could change the way in-house judges throughout the government are put in place.

  • May 24, 2017

    Feds Tell High Court To Rule On State Securities Suits

    The acting solicitor general told the U.S. Supreme Court on Tuesday to take up Cyan's petition over whether shareholders can bring claims over initial public offerings in state court, saying the issue has created "substantial confusion" in lower courts that is unlikely to be resolved soon.

Expert Analysis

  • Extending Omnicare Beyond The Section 11 Case

    William Sullivan

    With its recent decision in a securities suit against Align Technology, the Ninth Circuit joined the Second Circuit in applying Omnicare’s heightened falsity pleading standards to Section 10(b) and Rule 10b-5 fraud claims. Companies should therefore pay attention to the Omnicare standards as applied to all of their public statements, say attorneys with Paul Hastings LLP.

  • My Milkshake Is Better Than Yours: Part 1

    Jill Dessalines

    As I sat there listening, incredulous to learn that "Milkshake" was not only a real song but also a chart-topper, it reminded me of Harvard Business School Professor Clayton Christensen’s work on disruptive innovation — and how it pertains to mid-size law firms, says Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former assistant general counsel of McKesson Corp.

  • The Risk Of Liability After A Preferred Stock Redemption

    Gail Weinstein

    The Delaware Chancery Court's recent decision in Frederic Hsu Living Trust v. ODN highlights the potential liability that private equity sponsors and directors face when preferred stock held by the sponsor is redeemed. If future decisions intensify this risk, sponsors could consider alternative investment structures, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Series

    Revisiting Affiliated Ute: And Its Limits In The 5th Circ.

    Susanna Buergel

    Given the perceived higher hurdles to class certification, it is likely that counsel for plaintiffs in securities cases will seek to recharacterize their claims as omission claims to take advantage of the 45-year-old Affiliated Ute presumption. In the Fifth Circuit, that will be a challenging task, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • FHFA Should Free Captive Insurer Capital

    Jeffrey Murphy

    The Federal Housing Finance Agency's ruling that prevents captive insurance companies from becoming members of the Federal Home Loan Bank system is forcing billions of dollars of private capital out of the U.S. residential mortgage market. Hopefully, the Trump administration and members of Congress will be able to convince FHFA Director Melvin Watt to reverse this ruling, says Jeffrey Murphy of Dentons.

  • UK Internal Investigations Are Taking An Ungainly Turn

    Matthew Herrington

    The London High Court's decision in Serious Fraud Office v. Eurasian Natural Resources Corporation has a lot to say on the vitality of legal professional privilege and the conduct of internal investigations in the U.K., but its flawed logic and lack of pragmatism feel like the latest installment in SFO Director David Green's pushback against U.S.-style investigation procedures, say Matthew Herrington and Tom Best of Steptoe & Johnson LLP.

  • Series

    Revisiting Affiliated Ute: Back In Vogue In The 9th Circ.

    Michele Johnson

    While there are still very few district court decisions within the Ninth Circuit to have analyzed the relationship between the Affiliated Ute and the fraud-on-the-market presumptions of reliance since the U.S. Supreme Court’s 2014 Halliburton decision, plaintiffs are increasingly attempting to plead both theories, as demonstrated by several recent decisions, say Michele Johnson and Colleen Smith of Latham & Watkins LLP.

  • Attorneys, Your Input Is Needed On Deposition Rule

    Frank Silvestri, Jr.

    Every lawyer who’s handled a civil case in federal court knows about Rule 30(b)(6), governing deposition procedures. But for many real-world deposition dilemmas, the rule offers little guidance. Last year, an Advisory Committee on Civil Rules subcommittee began considering whether the rule should be amended. Now attorneys must advise the subcommittee how to proceed, says Frank Silvestri Jr. of Verrill Dana LLP.

  • Fate Of The SEC In-House Court: Careful What You Wish For

    Matthew Solomon

    As the D.C. Circuit hears arguments on Wednesday regarding the constitutionality of the U.S. Securities and Exchange Commission’s administrative tribunals, Cleary Gottlieb attorneys consider whether the current strong movement away from using the administrative forum is universally positive for defendants.

  • Series

    Revisiting Affiliated Ute: Impact In The 7th Circ.

    Julie Goldsmith Reiser

    In the 45 years since the U.S. Supreme Court's ruling in Affiliated Ute, the Seventh Circuit has cited it 145 times. The most significant of these decisions was the court's rejection of the “fraud created the market” theory as an extension of Affiliated Ute, says Julie Goldsmith Reiser of Cohen Milstein Sellers & Toll PLLC.