Securities

  • March 24, 2017

    Sidley, Deloitte Likely Still On Hook For $350M Ponzi Row

    An Oregon federal magistrate judge refused to free Sidley Austin LLP, Deloitte and others from a proposed class action claiming they aided an alleged $350 million Ponzi scheme, recommending Thursday that some claims be dismissed but saying the investors should have another crack at revising them.

  • March 24, 2017

    Sanctions Warning Shadows Oxbow, Investor Doc Fights

    Days after a Delaware vice chancellor warned of sanctions if excessive discovery battles continue in a fight over the future of William I. Koch's Oxbow Carbon LLC businesses, a new skirmish opened around an Oxbow call for Chancery Court clarification of its most recent document release rulings.

  • March 24, 2017

    Big Banks Dodge Currency Buyers' Forex-Rigging Suit

    Foreign currency buyers alleging they were charged falsely inflated prices as a result of a massive, ongoing price-fixing conspiracy by the world’s largest banks saw their latest complaint tossed out Friday by a New York federal judge, who said they failed to show how they suffered any antitrust injury.  

  • March 24, 2017

    AK Steel, Managers Turn To 2 BigLaw Firms For Refinancing

    U.S. metals company AK Steel Holding Corp. and a subsidiary turned to Weil Gotshal & Manges LLP for a recent debt offering that raised $400 million, with its managers and underwriters represented by Davis Polk & Wardwell LLP, according to securities filings.

  • March 24, 2017

    IRS, US Trustee Object To Fees In Wyly Bankruptcy

    The Internal Revenue Service and a U.S.-appointed trustee objected on Thursday to hundreds of thousands of dollars in fees requested by lawyers and consultants for time spent on Caroline Dee Wyly’s bankruptcy case, saying the work was done in bad faith and didn’t add to the value of the estate.

  • March 24, 2017

    Dewey Staffer Says She Didn't Think She Committed Crimes

    A former Dewey & LeBoeuf LLP finance staffer told a Manhattan federal jury Friday she did not think she was committing a crime by making improper accounting entries into the law firm’s books, and confirmed that former Executive Director Stephen DiCarmine never told her to do anything inappropriate.

  • March 24, 2017

    SunEdison Lenders Fight To Ax Fraudulent Transfer Suit

    Secured SunEdison Inc. lenders fought back Thursday against the solar company's unsecured creditors’ allegations that the lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask SunEdison's deteriorating finances, calling the claims rooted in dismay over the prospect of getting no return.

  • March 24, 2017

    Fla. Man Pays Nearly $3M Over Blank Check Co. Scheme

    The U.S. Securities and Exchange Commission on Thursday agreed to accept nearly $3 million in disgorgement and interest from a Florida man to settle charges he schemed to defraud investors by creating and selling blank check public companies he claimed were promising startups.

  • March 24, 2017

    2nd Circ. Referees Fund Founder's Suit Against Prosecutors

    Manhattan federal prosecutors told the Second Circuit on Friday they face an "enormous burden" if Level Global Investors LP founder David Ganek is allowed to take them to trial over search warrants obtained from allegedly false information, while Ganek's lawyer argued that the parade of horribles marches the other way.

  • March 24, 2017

    Bankrupt Studio Gets Nod For $4M Deal With Ex-Execs

    A California bankruptcy judge Thursday approved a $4 million settlement between Oscar-winning special effects studio Rhythm & Hues Studios Inc. and its former directors and executives in its Chapter 11 bankruptcy.

  • March 24, 2017

    Vegas Man Can't Shake $1.5B Ponzi Scheme Charges

    A Las Vegas man accused of a $1.5 billion fraud targeting Japanese investors lost a bid to dismiss charges against him Friday, five months after his defense attorneys quit when they couldn't unfreeze his assets to pay their bills.

  • March 24, 2017

    Paragon Investors Rip Del. Ch. 11 Disclosure, Projections

    Paragon Offshore PLC’s stockholders on Friday attacked what they characterized as manipulated projections of the bankrupt Houston company’s stability, outlook and ability to pay stockholder claims, and urged the U.S. trustee's office to form an official equity committee.

  • March 24, 2017

    HK Investor Agrees To Freeze In DreamWorks Trading Case

    A New York federal judge on Thursday extended an injunction freezing the assets of a Hong Kong private equity investor accused by the U.S. Securities and Exchange Commission of making $29 million by trading on insider information about Comcast's purchase of DreamWorks Animation.

  • March 24, 2017

    Tesla Investors Sue Elon Musk Over SolarCity Merger

    A pair of Tesla Inc. shareholders on Friday filed a putative class action alleging CEO Elon Musk and several other former directors and executives of the electric car maker made false statements about its $2.6 billion purchase of SolarCity Corp. last year.

  • March 24, 2017

    Fraud Claims Must Be Pulled After Smears In Pharma Co. Row

    A California federal judge ordered the founder of a pharmaceutical company on Thursday to withdraw his allegations of securities fraud against his investors and ordered both sides to pay a total of $1,250 in fines, upholding both sides’ claims that the other had disparaged it, but making no findings on a related property dispute.

  • March 24, 2017

    Shareholders Hit PayPal Directors With Suit Over Venmo

    PayPal Holdings Inc. shareholders hit the company and insiders with a derivative class action on Friday over claims that poor governance allowed subsidiary Venmo to play fast and loose with consumer information and practices.

  • March 24, 2017

    Piwowar Applauds Market Study, Plans Exchange Fees Pilot

    Acting U.S. Securities and Exchange Commission Chair Michael Piwowar on Thursday praised plans to launch an academic study of the U.S. securities markets as “long overdue” and revealed he has directed agency staff to propose their own plan to test the impact of altering the fees that exchanges charge for executing trades.

  • March 24, 2017

    Broker Gets 90 Days In $131M ForceField Stock Pump Case

    A former stockbroker was sentenced by a New York federal judge to 90 days in jail after pleading guilty to securities fraud over his part in a stock manipulation scheme that bilked investors of efficient lighting products maker ForceField Energy Inc. of roughly $131 million.

  • March 24, 2017

    SEC Wins Injunction In Calif. EB-5 Fraud Scheme Suit

    A California federal judge has granted a bid by the U.S. Securities and Exchange Commission for a preliminary injunction against an Oakland businessman accused of misusing funds from $107 million he raised from Chinese nationals through the EB-5 immigrant investor program.

  • March 24, 2017

    Fed, FDIC Seek Improvements In Northern Trust’s Living Will

    Federal banking regulators on Friday said that plans submitted by 16 U.S. regional banks outlining how they could be taken apart through bankruptcy were largely credible, but said that Northern Trust Corp. did not sufficiently address questions about how its international units could be taken apart.

Expert Analysis

  • A Straightforward Insider Trading Statute Is Overdue

    Jason P. Gottlieb

    As Judge Jed Rakoff observed in a recent speech, it would benefit prosecutors, the courts and investors to have a clearly drafted statute setting forth, to the most specific degree possible, exactly what about insider trading is illegal, and why, say Jason Gottlieb and Daniel Isaacs of Morrison Cohen LLP.

  • Google, NASA, Planes And A Stronger Legal Team

    Nicholas Cheolas

    Why did minor mechanical issues bring down two airplanes, while a catastrophic engine explosion did not bring down a third? The answers lie, in part, in research conducted by NASA in the wake of those crashes and, more recently, by Google. And those answers can help organizations build better teams to meet today’s legal industry challenges, says Nicholas Cheolas of Zelle LLP.

  • Madden Creates More Uncertainty For Marketplace Lenders

    Joseph Cioffi

    The Second Circuit's 2015 decision in Madden v. Midland Funding created significant risk for marketplace lenders that rely on a partner bank origination model to avoid state usury caps. Now, a district court decision in the case has seemingly added another layer of uncertainty, say Joseph Cioffi and Massimo Giugliano of Davis & Gilbert LLP.

  • 10 Tips For Better Legal Negotiations

    Marc J. Siegel

    Like everything else, the art of negotiation starts by having a conversation. It’s about being respectful, finding common ground, knowing what you want and, most importantly, listening. A conversation between two lawyers can be complicated at best, but by employing a few techniques and tactics, it doesn’t have to be that way, says Marc Siegel of Siegel & Dolan Ltd.

  • Monthly Column

    Gray Matters: Decision Error

    Gray Matters

    Lawyers make hundreds of decisions during the course of advising a client, consummating a transaction or litigating a case. In this new column, dispute resolution experts Bob Creo and Selina Shultz explore the theory, science and practical aspects of how decisions are made in the legal community.

  • Fair To Whom? Examining Delaware's Fair Summary Standard

    Miles D. Schreiner

    Under Delaware’s corporate-friendly disclosure regime, shareholders are entitled only to a fair summary of a financial adviser’s work. This standard, coupled with recent developments in Delaware law, leaves retail investors with no recourse to obtain truly fair consideration for their shares in connection with unfair mergers, say Miles Schreiner and Juan Monteverde of Monteverde & Associates PC.

  • MLP Agreement Lessons From Delaware High Court

    Matthew J. O’Toole

    Three Delaware Supreme Court decisions over the last year illustrate that the Delaware Revised Uniform Limited Partnership Act provides a master limited partnership sponsor and its counsel substantial flexibility to privately order the affairs of an MLP. The contractual freedom is subject, however, to the limited application of the implied covenant of good faith and fair dealing, say attorneys with Potter Anderson & Corroon LLP.

  • Law Schools And Law Firms: Seeking Common Ground

    Randy Gordon

    What we don’t know is whether the teaching and practice of law are undergoing massive structural changes or we’re still digging out from the worst economic collapse since the Depression. But what we do know is that the missions of the most forward-looking law schools and law firms are converging in ways that were unimaginable 10 years ago, says Randy Gordon, a partner at Gardere Wynne Sewell LLP and executive professor of law at Te... (continued)

  • D&O Insurance And The Conduct Exclusion

    Kevin M. LaCroix

    Most directors and officers insurance policies have conduct exclusions precluding coverage for fraudulent, criminal or willful misconduct, but mere allegations are insufficient to trigger this exclusion. A California state appeals court's recent decision in Heart Tronics v. Axis Insurance provides interesting insight into the operation of such an exclusion, says Kevin LaCroix of RT ProExec.

  • Why We Need The Fairness In Class Action Litigation Act

    Alexander R. Dahl

    The polarized reaction to H.R. 985 indicates that class action and multidistrict cases are in trouble. It was a good idea to revise Rule 23 of the Federal Rules of Civil Procedure and to create the Judicial Panel on Multidistrict Litigation in the 1960s, but now these mechanisms are exceeding their limits and should be reined in, says Alexander Dahl of Brownstein Hyatt Farber Schreck LLP.