Securities

  • January 18, 2017

    Ex-JPMorgan Analyst Tipped Pals To Tech Deals, Jury Told

    Former J.P. Morgan Securities LLC analyst Ashish Aggarwal tipped two friends to a Salesforce.com acquisition and another pending deal in a scheme that “cheated the market and lined their own pockets” with $600,000, a prosecutor told jurors Wednesday during opening statements in California federal court.

  • January 18, 2017

    SAC Trader, Feds Feud At 2nd Circ. Over Salman Impact

    Jailed ex-SAC Capital Advisors manager Mathew Martoma sparred with federal prosecutors Tuesday over the U.S. Supreme Court’s recent decision upholding the Salman insider trading case conviction, with the hedge funder saying a Second Circuit decision still carries weight.

  • January 18, 2017

    TransPerfect Workers To Push Del. To Curb Chancery Power

    As the Delaware Supreme Court considered an appeal Wednesday of Chancellor Andre G. Bouchard’s decision to order the sale of a legal translation firm, employees of TransPerfect protesting outside said they intend to push the First State to curb the Chancery Court’s power when appointing corporate custodians.

  • January 18, 2017

    EB-5 Update Could Pump The Brakes On Investor Numbers

    The U.S. Department of Homeland Security rolled out a rule last week aimed at updating the EB-5 visa program, and while it may combat gerrymandering in the program, attorneys say the regulation may also have a chilling effect on the number of immigrant investors who can apply for the visas.

  • January 18, 2017

    Fraud Conviction Stands, But Atty Wins $13M Penalty Review

    The Eleventh Circuit on Wednesday upheld an attorney's conviction for conspiring with former NFL player Willie Gault to inflate a heart-monitor company's stock but vacated $13.2 million in restitution in his sentence, finding the calculations were based on insufficient evidence and failed to consider intervening events.

  • January 18, 2017

    Bio-Rad’s Ex-GC Testifies CEO Resisted FCPA Investigation

    The former general counsel for Bio-Rad Laboratories Inc. took the stand in his retaliation suit accusing the life sciences company of firing him for reporting possible Foreign Corrupt Practices Act violations related to payments in China, testifying that Bio-Rad’s CEO resisted his attempts to investigate possible wrongdoing.

  • January 18, 2017

    Class Seeks Del. Supreme Court Rescue In Lululemon Case

    Attorneys for Lululemon Athletica Inc. stockholders told Delaware's Supreme Court on Wednesday that the Chancery Court wrongly shot down their challenge to a suspiciously timed $80 million stock sale by the sports clothing company's chairman.

  • January 18, 2017

    Dershowitz Scraps With Justice Strine Over TransPerfect Sale

    The question of whether the Delaware Chancery Court violated the U.S. Constitution when it ordered the sale of legal translation firm TransPerfect took center stage Wednesday before the state Supreme Court, with celebrity constitutional lawyer Alan Dershowitz engaging in a pointed exchange with Chief Justice Leo E. Strine Jr. 

  • January 18, 2017

    Indicted CEO Can't Escape Securities Fraud Charges

    A New York federal judge on Wednesday refused to toss criminal securities fraud and money laundering charges against private equity CEO Benjamin Wey, and said the court would rule on his effort to suppress evidence seized during government searches after a hearing next week.

  • January 18, 2017

    Oil Co. Directors Say Nigerian Assets Bought In Good Faith

    The directors of oil exploration firm Erin Energy Corp. argued Wednesday to have a derivative suit dismissed in Delaware Chancery Court, saying they acted in good faith when approving a pair of transactions to buy offshore assets in Nigeria.

  • January 18, 2017

    Jury Blocks Stanford Receiver's $88M Clawback Claim

    A Texas federal jury on Wednesday found billionaire Gary Magness acted in good faith when taking out $88.2 million in loans from a bank affiliated with R. Allen Stanford’s $7 billion Ponzi scheme, blocking a clawback claim by the receiver for the Stanford fraud.

  • January 18, 2017

    Med Device Co. Pays $14M Over Accounting, FCPA Violations

    Texas-based medical device company Orthofix International will pay $14 million in disgorgement and penalties and admit wrongdoing for improperly booking revenue and paying off Brazilian doctors to boost sales, the U.S. Securities and Exchange Commission said Wednesday.

  • January 18, 2017

    Del. Justices Kick Wal-Mart Investor Suit To Chancery

    The full Delaware Supreme Court on Wednesday criticized the lack of coordination between investors’ attorneys from two separate suits targeting an alleged Wal-Mart Mexico bribery scandal, ordering a lower court to contemplate whether one shareholder group’s rights were violated by the other’s case.

  • January 18, 2017

    Finance Pros Tell Fund Fraud Jury Visium Quotes Were Off

    A series of asset management professionals told Manhattan jurors Wednesday that price quotes procured by Stefan Lumiere from allegedly complicit brokers to overvalue a distressed-credit fund appeared to be inflated in value, as prosecutors closed their fraud case against the former Visium Asset Management LP portfolio manager. 

  • January 18, 2017

    Swaps Trading Is On New CFTC Chair's Radar

    Soon-to-be U.S. Commodity Futures Trading Commission acting chair and current commissioner J. Christopher Giancarlo on Wednesday outlined his plans and outlook for the near future, paying special attention to a swaps trading regime he said “has caused numerous harms.”

  • January 18, 2017

    Investor Gets 20 Months For Trades On GC Wife's Inside Info

    A Massachusetts man was sentenced Wednesday to 20 months in prison for passing along his general counsel wife's inside information about a tire company merger to two friends.

  • January 18, 2017

    2nd Circ. Revives $140M FDIC Mortgage Securities Suit

    A federal appeals court on Wednesday reinstated a Federal Deposit Insurance Corp. lawsuit against five banks, including Credit Suisse Group AG, over $140 million in mortgage-backed securities that led to the failure of two smaller banks, saying that the regulator’s complaint was not time-barred.

  • January 18, 2017

    Israel Issues Its Largest-Ever Euro Bond On London Exchange

    Israel issued its largest-ever euro-denominated bond at €2.25 billion ($2.4 billion) on the London Stock Exchange on Wednesday through 10- and 20-year notes, which were met with robust demand, marking a sizable deal for the U.K. with a non-European country coming just as Brexit talks begin to escalate.

  • January 18, 2017

    Stoel Rives Seeks Dismissal Of Claims It Aided Ponzi Plot

    Stoel Rives LLP asked a Florida federal court Tuesday to toss a proposed class action accusing the law firm of assisting in Tri-Med Corp.'s $17 million Ponzi scheme, saying the suit is based on “speculative and conclusory theories” and that Tri-Med's receiver has no standing to bring it.

  • January 18, 2017

    NJ Atty Escapes Default In Energy Co.'s Malpractice Suit

    A New Jersey attorney accused of negligently handling a financial deal for an Idaho energy company escaped a default judgment Tuesday when a federal judge ruled that although the lawyer may have been culpable for failing to appear in the case, the matter should still be decided on the merits.

Expert Analysis

  • Pay-To-Play Lessons From This Week's SEC Settlements

    Charles Borden

    The U.S. Securities and Exchange Commission’s settlements with 10 investment advisory firms relating to violations of the SEC’s pay-to-play rule may be a preview of things to come. Although none of the 10 cases announced Tuesday involved a major penalty, the real economic cost of the violations is likely to be much higher, say attorneys with Allen & Overy LLP.

  • It’s Time To Change The Law Firm Business Model

    Lucia Chiocchio

    Every year, statistics reveal very little change in the number of women and minorities in the ranks of partnership. So how do law firms change this painfully slow rate of progress? It takes more than adding a diversity policy or a women’s leadership program to the current law firm business model, says Lucia Chiocchio, co-chair of Cuddy & Feder LLP's telecommunications and land use, zoning & development groups.

  • The International Scope Of SEC’s Whistleblower Program

    Vincent H. Cohen Jr.

    Around the world, corporate insiders are taking note of the significant awards issued by the U.S. Securities and Exchange Commission's whistleblower program and are more willing than ever to report their perceptions of corporate misconduct. This is an unmistakable call to action for multinational companies, say attorneys with Dechert LLP.

  • Hague Convention’s Impact On Secured Transactions

    Edwin E. Smith

    Choice-of-law rules for the perfection and priority of a security interest in “securities credited to a securities account” will change on April 1, 2017, when the Hague Securities Convention comes into effect. Edwin Smith and Alan Beloff of Morgan Lewis & Bockius LLP describe what steps secured parties may need to take now for existing secured transactions and in planning for new ones.

  • Amended Rule 37(e): 1 Year Later

    Samantha Southall

    After a full year in effect, the amended Federal Rule of Civil Procedure 37(e) has been tested in a variety of district courts. A sampling of these decisions reveals that courts seem to be adhering closely to the amended rule and ordering adverse inference instructions only where there was intent to deprive another party of access to relevant information, say Carrie Amezcua and Samantha Southall of Buchanan Ingersoll & Rooney PC.

  • Avoiding The Hidden Costs Of Bargain-Priced E-Discovery

    Michael Cousino

    Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can all add up to a surprisingly large final cost, says Michael Cousino of Epiq Systems.

  • Why Anti-Corruption Due Diligence Is Important In M&A

    Video Thumbnail

    When acquiring and investing in companies, it is critical to evaluate and mitigate the risk of both previous and future violations of the Foreign Corrupt Practices Act. Mark Mendelsohn and Peter Jaffe of Paul Weiss Rifkind Wharton & Garrison LLP discuss unique challenges for investors and essential considerations for mergers and acquisitions.

  • Dabbing Into The Financial Side Of Marijuana

    Neda Ghomeshi

    Both the U.S. Department of Justice and the Financial Crimes Enforcement Network have provided guidance for brokers and firms doing business with the cannabis industry, concerning how to avoid prosecution for violating the law. However, even 100 percent compliance does not guarantee total safety from investigation, says Neda Ghomeshi of Hunter Taubman Fischer & Li LLC.

  • FINRA’s Most Significant 2016 Enforcement Actions

    Jon Eisenberg

    The Financial Industry Regulatory Authority brings about 1,500 enforcement actions a year, but often lost in the volume of actions are the ones that merit particular attention. Jon Eisenberg and Michael Dyson of K&L Gates LLP review the 2016 actions that resulted in fines of $1 million or more.

  • A Record FCPA Year For Pharma

    Melissa L. Jampol

    Teva's Foreign Corrupt Practices Act settlement last month — the largest-ever FCPA resolution involving a pharmaceutical company — was the capstone to a year of many significant FCPA settlements and resolutions with drug companies. This year, it is likely that enforcement will change given the new administration, say Melissa Jampol and Elena Quattrone of Epstein Becker & Green PC.