Latham & Watkins LLP is bolstering its litigation team in the Los Angeles area, adding a pair of trial lawyers from Skadden Arps Slate Meagher & Flom LLP and Paul Hastings LLP with experience in securities disputes and other high-stakes trials for diverse clients including private equity firms, financial institutions and public companies and their executives, the firm said Wednesday.
Derivative lawsuits accusing Resource Capital Corp.'s directors of mishandling a Puerto Rico hotel loan portfolio that prompted a $41 million write-down in August 2015 continued to mount Wednesday, as a shareholder of the real estate investment trust filed the fourth case of its kind in New York.
An attorney convicted for conspiring with former NFL player Willie Gault to illegally inflate the stock of their heart monitor company told a California state appeals court Wednesday that an insurer wrongly denied defense coverage based on a fraud exclusion, saying his pending criminal appeal means there’s no final judgment of fraud.
The Ninth Circuit refused to revive a securities class action against DreamWorks Animation SKG Inc. alleging the animation studio misled investors about the profit potential of the 2013 cartoon flick “Turbo,” finding that the investors failed to show they were fraudulently deceived.
A New York federal judge on Wednesday largely kept intact a consolidated class action claiming game maker iDreamSky Technology Ltd. misled investors ahead of its $115.5 million initial public offering, saying generalized disclosures don’t shield the developer from its obligation to report issues with its popular mobile game “Cookie Run.”
A shareholder of specialty plastics maker A. Schulman Inc. filed suit Wednesday in Delaware Chancery Court, seeking to inspect books and records related to a stock award given to the company's former CEO in excess of what he was entitled to under a performance bonus plan.
The Second Circuit on Wednesday refused to quash an order that convicted Ponzi schemer Francisco Illarramendi pay $370.4 million in restitution for a scam described as the largest Ponzi scheme in Connecticut's history, saying a delay of over 10 months didn't amount to an abuse of the district court's discretion.
A Florida man who recently admitted to fraud and conspiracy charges in connection with the Coin.mx bitcoin exchange testified Wednesday that New Jersey pastor Trevon Gross and tech expert Yuri Lebedev were in on a plot to co-opt a small bank for use in a money-laundering operation.
The Eleventh Circuit on Wednesday said Wells Fargo did not lose its interest as a secured creditor in two properties in the wake of hedge fund manager Arthur Nadel's $168 million Ponzi scheme, saying a creditor’s property rights are granted under state law and a federal court can’t invalidate them for failure to submit a proof of claim.
Boies Schiller Flexner LLP and Kahn Swick & Foti LLC lawyers who reached a $100 million investor settlement with Halliburton over its asbestos liability disclosures told a Texas federal court Tuesday they would seek up to $40.8 million after a decade's litigation and two trips to the U.S. Supreme Court.
A Florida federal jury on Wednesday ruled against the former chairman and controlling shareholder of a San Antonio racetrack in the U.S. Securities and Exchange Commission’s suit accusing him of fraudulently obtaining millions of dollars in loans from a brokerage firm, following a six-day trial.
Shareholders in Wal-Mart Stores Inc. who sued corporate officers in Delaware for turning a blind eye to corruption in Mexico have argued that it would be a denial of due process to dismiss their case after a similar suit was tossed in Arkansas.
The Eighth Circuit affirmed Wednesday a lower court’s ruling that found a class of former Sea World employees are entitled to enhanced benefits under their Anheuser-Busch InBev Inc. pension plan, but ruled the district court erred in determining how those benefits should be calculated.
An embattled Canadian silver company on Tuesday asked a California federal judge to nix an attempt by a putative class of investors to obtain financial records from Deloitte LLP (Canada) created after the class period, saying the documents are irrelevant to the suit.
The U.S. Securities and Exchange Commission has accused a runaway man of defrauding investors out of $1.7 million by promising that his computer program would generate high returns on foreign exchange trades, despite using the investments to make Ponzi-like payments and fund exorbitant shopping sprees, according to a Tuesday statement.
A farming co-op hit back against MF Global Holding Ltd.’s demand for $1.7 million over derivatives trades that predate the firm's massive 2011 bankruptcy, saying on Monday that MF Global failed to preserve those claims in its Chapter 11 plan and therefore has no right to pursue them.
A Davis Polk & Wardwell LLP attorney's phone call to a Comcast executive about the potential representation of a financial adviser in a business transaction may have spawned the cable giant’s $3.8 billion deal for DreamWorks, according to documents from an insider trading suit against a Hong Kong investor.
Proteonomix Inc.'s CEO, who allegedly transferred shares of the biotech company to an entity he controlled without the proper securities filing disclosures, has asked a New Jersey federal judge to reinstate the guilty plea he’d withdrawn in the wake of alleged threats to his family and bad advice from his former attorney.
Investors in chipmaker InvenSense Inc. filed suit in California federal court on Tuesday to halt the company’s proposed $1.3 billion cash sale to TDK Corp., saying that the deal pads the pockets of InvenSense’s executives while lowballing the technology company’s financial potential.
Deutsche Bank AG asked a New York federal judge on Tuesday to throw out a suit that accuses it of misleading investors about its compliance with anti-money laundering laws even as regulators probed suspicious trades in its Moscow office, saying it made appropriate disclosures and can’t be held to “aspirational” pledges about ethical standards.
Detractors of litigation funding have strained to characterize a recent decision from a California federal court as significant headway in their crusade against the litigation funding industry. However, in truth, this is a victory for both the industry and those in need of capital to bring meritorious claims against wrongdoers in an often prohibitively expensive legal system, say Matthew Harrison and Priya G. Pai of Bentham IMF.
In the current environment, the risk of attacks on the fraud-on-the-market doctrine — established by the U.S. Supreme Court in Basic v. Levinson — seems high, and a general class action reform bill has already been introduced in the House. But Basic ballasts the system of securities law enforcement by protecting investors while providing companies with predictable procedures and finality upon settlement, says Douglas Greene of Lane Powell PC.
While President Donald Trump’s recent executive order reducing regulations may seem appealing in its simplicity, the White House has provided agencies with little guidance on its implementation, instructing them to call the Office of Management and Budget with questions. Yet the OMB's ability to provide answers will be impaired by a lack of clear legal standards, say Laurence Platt and Joy Tsai of Mayer Brown LLP.
Several areas of civil litigation appear poised for growth this year, including securities class action activity, which could outpace even the significant 2016 levels, and trade secret litigation, which could see further growth in the coming year under the Defend Trade Secrets Act. Meanwhile, as companies increasingly face the specter of data breaches, several developments in 2017 could bring greater clarity to this area of the law... (continued)
The Delaware Supreme Court's recent decision in Volcano Stockholders Litigation is consistent with the Delaware courts’ continued expansive interpretation of the seminal Corwin v. KKR Financial decision, which has resulted in a strong trend of early dismissal of post-closing damages actions challenging noncontroller M&A, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
While the legal and regulatory changes envisioned under a new presidential administration may present real and substantial opportunities for companies, those changes may have little, if any, impact when it comes to corporate governance. The forces driving shareholder activism and board scrutiny remain present and may gain strength in a period of deregulation, says Marc Gerber of Skadden Arps Slate Meagher & Flom LLP.
Rhetorical attempts by politicians to influence the conduct of private enterprise — commonly referred to as “jawboning” — are an old political tactic. But the nature and frequency of jawboning in the current environment makes this a serious issue for boards and management at a wide variety of public companies, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.
We do not anticipate the new administration will ease anti-money laundering enforcement. In fact, it is more likely that enforcement of the Bank Secrecy Act is an area of supervision that will increase in the coming years, say attorneys with Arnold & Porter Kaye Scholer LLP.
Major cybercrime cases in the final quarter of 2016 indicate the courts are growing stricter in interpreting insurance policy provisions. In particular, they denied insurance coverage for forged government guarantees and denied coverage for a vendor theft involving emails, says David Bergenfeld of D'Amato & Lynch LLP.
Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.