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Securities

  • September 17, 2018

    Israeli Gov’t Contractor Settles Securities Suit With $3M Deal

    Ability Inc. agreed to pay $3 million to investors to resolve a securities suit accusing the Israeli government contractor of making misleading financial statements during its bid to buy Cambridge Capital Acquisition Corp., according to a deal approved by a New York federal judge on Monday.

  • September 17, 2018

    SEC Accuses Ex-Adviser Of Fraudulently Raising $6.8M

    The U.S. Securities and Exchange Commission filed a complaint in Texas federal court on Monday accusing the former owner of a now-defunct investment adviser and a since-sold franchise of an investment education business of fraudulently convincing investors to hand over $6.8 million through unregistered securities offerings.

  • September 17, 2018

    Ex-Equifax Exec Should Face Insider Trading Charges: Judge

    A Georgia magistrate judge recommended keeping alive two insider trading charges against a former Equifax Inc. executive accused of selling shares of the company before news of a massive hack broke last year, saying Monday that both charges are different and detailed enough to survive a dismissal bid.

  • September 17, 2018

    New Commissioner Could Help Clayton's SEC Agenda

    The arrival of Commissioner Elad Roisman to fill the U.S. Securities and Exchange Commission’s lone vacancy likely bolsters Chairman Jay Clayton’s agenda on certain deregulatory items, experts said, and could provide a critical voice to cryptocurrency matters facing the SEC.

  • September 17, 2018

    Hawk Systems Investor Fights For Control In Chancery

    An investor of biometric security firm Hawk Systems Inc. told a Delaware Chancery Court judge Monday that he is the majority stockholder of the company and its sole director after the company was abandoned by other board members following the alleged looting of investor funds.

  • September 17, 2018

    How Lehman's Bankruptcy Put SIPC In The Spotlight

    When Lehman Brothers filed for bankruptcy 10 years ago, one of the first outfits called in was one that traditionally operated under obscurity. But the Securities Investor Protection Corp. made a name for itself in the historic Chapter 11 case, restoring more than $90 billion worth of assets to Lehman’s brokerage customers.

  • September 17, 2018

    Mining Co.’s Involuntary Ch. 7 Draws Judge’s Skepticism

    A Delaware bankruptcy judge on Monday questioned a creditor’s use of an involuntary Chapter 7 action against a mining company that branded the case as an effort to neutralize its Chancery Court lawsuit against the same creditor, cautioning that the bankruptcy court is “not a collection court.”

  • September 17, 2018

    Trader In Beaufort-Linked Manipulation Case Cops To Fraud

    A man who allegedly worked with an undercover FBI agent to make manipulative penny-stock trades with the help of a corrupt broker at Beaufort Securities Ltd. pled guilty in Brooklyn federal court Monday to securities fraud, saying he knew his actions were illegal and morally wrong.

  • September 17, 2018

    Arizona $3.5M Settlement Approved In Woodbridge Ch. 11

    The Woodbridge Group of Companies received bankruptcy court approval Monday in Delaware to enter into a consent order with Arizona regulators calling for a $3.5 million restitution payment to investors in that state duped into investing in the company’s Ponzi scheme.

  • September 17, 2018

    Ex-Camelot Exec Must Pay $18.6M For Stealing From Fund

    A New York federal judge has fined the former manager of private equity fund Camelot Acquisitions Secondary Opportunities almost $9.3 million and ordered him to disgorge the same amount, using the dollar figure he pled guilty to stealing from the fund in a state criminal case years ago, according to a Friday filing.

  • September 17, 2018

    TelexFree Admits Massive Telecom Scam, Securities Abuses

    The scam corporations behind one of the world's largest pyramid schemes, TelexFree Inc. and TelexFree LLC, admitted Monday to securities fraud that federal agents believe swindled more than 1 million people, a move signaling the end of criminal charges and a lawsuit that halted the massive scheme in its tracks in 2014.

  • September 17, 2018

    15 Minutes With Robinhood Markets' General Counsel

    Archit Shah earned a degree in computer science and engineering from the Massachusetts Institute of Technology without any idea that he’d later apply to and graduate from Harvard Law School. Now, he draws on both degrees as the general counsel of financial services company Robinhood Markets Inc. Here, Shah explains how he came to realize he wanted to study law and the characteristics he looks for in potential in-house candidates.

  • September 17, 2018

    Teva Looks To Escape Proposed Price-Hike Class Action

    Teva Pharmaceutical Industries Ltd. has urged a Connecticut federal judge to let it escape a proposed class action accusing it of engaging in a price-hike scheme, saying it isn't unlawful to have a plan to increase product prices when the opportunity presents itself in the market.

  • September 17, 2018

    CFTC Seeks Quick Win For 2 Claims In Kraft Wheat Case

    The U.S. Commodity Futures Trading Commission on Friday asked an Illinois federal court for a quick win on two claims in its suit against Kraft Foods Group Inc. alleging that the food conglomerate manipulated the price of wheat commodities and futures.

  • September 17, 2018

    Valeant Must Face Deceptive Pricing Claims By Hedge Funds

    A New Jersey federal judge has refused to toss claims in a hedge fund group's lawsuit accusing Valeant Pharmaceuticals International Inc. of duping investors about the sustainability of its business model, ruling on Friday that the claim wasn't filed too late under federal securities law.

  • September 17, 2018

    Yahoo Successor Expects Data Breach Deals To Cost $47M

    Yahoo Inc. successor company Altaba Inc. believes that its settlements of consumer and shareholder litigation stemming from massive data breaches affecting billions of users will end up costing it about $47 million, according to a Monday securities filing.

  • September 14, 2018

    Split 9th Circ. Keeps Toss Of Northstar’s Schwab Fund Suit

    A Ninth Circuit panel on Friday agreed with the district court’s dismissal of Northstar Financial Advisors Inc.’s putative class action against Charles Schwab Corp. but said that Northstar should have another crack at amending its complaint claiming Schwab stepped outside of its own guidelines to make risky bond-fund bets.

  • September 14, 2018

    Supreme Court Cases Enviro Lawyers Should Watch This Fall

    The U.S. Supreme Court will consider in its latest term a diverse group of environmental law cases that address questions about whether the Clean Water Act permits the regulation of groundwater and how much power Congress intended to give the executive branch in a law that allows federal agencies to bypass environmental statutes in the name of border protection. Here, Law360 previews some of the biggest environmental law cases to watch in the new term.

  • September 14, 2018

    NY Fed Faker Gets 2 Years For $50M Investor Fraud

    A Manhattan federal judge on Friday sentenced a New Mexico woman to two years in prison for her role in what prosecutors say was a $50 million investment fraud tied to false claims that an urban revitalization project was backed by the Federal Reserve Bank of New York.

  • September 14, 2018

    2 Court Vets Emerge As Potential New Chancery Judges

    Delaware litigation boutique partner Joel E. Friedlander and court master Morgan Zurn have emerged as likely candidates for two new seats on the Chancery Court bench, but the job's demands and pay might have discouraged other prospects, according to several sources with knowledge of the process.

Expert Analysis

  • Calif.'s New Rules For Lawyers Move Closer To ABA Model

    Mark Loeterman

    The first comprehensive overhaul of California's Rules of Professional Conduct in nearly 30 years becomes operational on Nov. 1. Some of the new rules mirror the model language used by the American Bar Association, but many continue to reflect California’s unique approach to certain ethical questions, says Mark Loeterman of Signature Resolution LLC.

  • Analyzing Chancery Decisions On Long-Term Growth Rates

    Toby Reiff

    The selection of a long-term growth rate is one of the key assumptions made when performing a discounted cash flow analysis in business valuation cases. Decisions from recent years illustrate a consistent pattern in the Delaware Chancery Court's growth rate determinations, say Toby Reiff and Josh Reder of Stout Risius Ross LLC.

  • Stock Compensation Can Add Zing To Your Benefits Package

    Amy Bowler

    To attract talent in a competitive market, some employers may add creative stock and bonus compensation programs to thier benefits packages. They should keep in mind that adding stock options can trigger a multitude of legal rules and restrictions, say Amy Bowler and Beth Nedrow of Holland & Hart LLP.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • IRS Ruling On MBS Restructuring Should Encourage Investors

    Mark Leeds

    In June 2019, the Federal Housing Finance Agency will require Freddie Mac and Fannie Mae to begin issuing standardized mortgage-backed securities. Accordingly, the IRS last month encouraged Freddie Mac investors to convert their existing securities by stating that conversions won't trigger taxable gains or losses, say Mark Leeds and Steven Garden of Mayer Brown LLP.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Cayman Derivative Cases Brought Overseas Still Face Hurdles

    Peter McMaster

    Two court decisions within the past year have simplified the process for bringing derivative claims outside the Cayman Islands on behalf of Cayman companies, as shareholders no longer need permission from a Cayman court. However, such claims still face two difficulties, say Peter McMaster and Anna Snead of Appleby.

  • Opinion

    A Decade After Financial Crisis, Misconceptions Remain

    Edward Stringham

    Following the 2008 economic downturn, many observers blasted mortgage-backed securities and collateralized debt obligations. Today, we're hobbled with numerous regulations that stem from a fundamental misunderstanding of what these instruments were designed to do, says Edward Stringham of the American Institute for Economic Research.

  • Considerations For The 2019 Proxy Season

    Steve Quinlivan

    Given a number of changes to the regulatory landscape in recent months, public companies should consider planning for the upcoming proxy season early. The U.S. Securities and Exchange Commission has been particularly active adopting rules and regulations in areas that substantially impact annual reporting, say attorneys with Stinson Leonard Street LLP.

  • Examining The Role Of Market Price In Appraisal: Part 2

    Dirk Hackbarth

    In response to the Delaware Chancery Court’s invitation earlier this year seeking expert opinions on market efficiency, we propose several tests to empirically assess the reliability of market price in appraising fair value, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.