A pension fund stockholder of DeVry University Group sued the for-profit educational organization, six directors and its former CEO in Delaware state court Friday, saying the defendants had breached their financial duties by allowing deceptive marketing that cost the organization more than $100 million in regulatory penalties.
The former Snap Inc. employee who claims he was fired for raising concerns about the social media company’s user metrics ahead of its initial public offering fired back at the Snapchat maker’s attempt to force arbitration of his whistleblower suit, telling a California federal court Friday that the arbitration agreement he signed at hiring was unconscionable.
After a $3.2 million arbitral award was confirmed in its favor in a dispute with a dolphin park operator, a financial consulting company asked a California federal judge to award it more than $50,000 in attorneys' fees, saying it is entitled to them based on a contract between the parties.
The sides in the lawsuit over Providence Service Corp.’s $400 million purchase of Matrix Medical Group told the Delaware Chancery Court on Friday they’d resolved the dispute with a settlement that would see $10 million, minus attorneys’ fees and expenses, paid to the investor class that challenged the deal.
AbbVie Inc., the biopharmaceuticals giant fending off lawsuits over its failed, $55 billion merger with Shire PLC, urged an Illinois federal judge on Thursday not to send a fraud case brought by a group of hedge funds back to state court, saying the case involves federal law.
The former head of operations at an Investment Technology Group Inc. unit has settled the U.S. Securities and Exchange Commission's allegations that he failed to properly supervise a securities lending desk that allegedly obtained American securities of foreign companies without gaining the underlying foreign shares.
Prosecutors asked a Florida federal judge on Thursday to order four people convicted of lying to banks and investors in the Cay Clubs Resorts and Marinas to pay the victims $180 million, setting the stage for those who have filed claims to get some of their money back.
A Walter Investment Management Corp. investor sued the mortgage lender’s board of directors in Pennsylvania federal court on Thursday over allegations they knew about but did not disclose the company’s weak internal controls and involvement in potentially fraudulent practices.
A couple charged by the U.S. Commodity Futures Trading Commission in a civil suit in Washington federal court with lying to potential investors and fleecing them out of more than $11 million consented to orders issued Friday that bars them from trading in commodities.
A request from shareholders of bomb detection hardware maker Implant Sciences to retain a solicitation agent for the company’s proposed Chapter 11 plan failed to receive court approval Friday in Delaware because the court determined the services were unnecessary.
Robert Schulman, the former Hunton & Williams LLP patent lawyer convicted of insider trading on a Pfizer deal, has tapped a Proskauer Rose LLP appellate partner for his post-verdict defense, a Thursday filing said.
Fox Rothschild LLP has boosted its Morristown, New Jersey, office with a new litigation partner from Greenbaum Rowe Smith & Davis LLP with more than 20 years of experience representing real estate companies, technology firms and other businesses in court.
A Minnesota federal court on Friday refused to give Best Buy shareholders another chance at certifying their stock-drop class action after the Eighth Circuit ruled last year that the retailer’s share price wasn’t impacted by its executives’ statements on a conference call.
Clovis Oncology Inc. has agreed to pay $142 million in cash and stock to settle a proposed class action that claimed the company inflated its stock price by misleading investors about the efficacy of a cancer drug, shareholders told a Colorado federal court Thursday.
The newly elected Harris County district judge who is now overseeing the felony securities fraud case against Texas Attorney General Ken Paxton is in store for a “trial by fire” that will force the rookie jurist to navigate choppy political waters and unclear law on the charges at hand, experts say.
A New York federal court on Thursday selected Labaton Sucharow LLP to serve as lead counsel for a proposed class of Tempur Sealy International Inc. investors who say the mattress manufacturer misled them before its relationship with the largest U.S. mattress retailer dissolved.
The founder and former CEO of Pokeware on Thursday pled guilty in a New York federal court to defrauding investors of more than $6 million, kiting checks to dupe them into believing the company had more assets than it did and then converting investors’ money for her personal use, prosecutors said.
The European Central Bank made a bid for greater powers to supervise clearing operations for euro-denominated securities on Friday, in a move that would tighten its authority over London-based clearing houses once Britain leaves the European Union.
A federal prosecutor on Thursday told a New York federal judge that a relative of former pharmaceutical executive Martin Shkreli had contacted a witness and implied they should not testify, while Shkreli's lawyers warned that the government may be scaring off defense witnesses from the securities fraud trial.
A Georgia federal judge ordered an insurance broker who made $500,000 from a tip about a Sanofi-Aventis SA acquisition to pay $1.6 million in disgorgement and penalties on Thursday, saying his “greed was overwhelming” but did not justify the maximum penalty of triple his profits.
The recently launched campaign by the Council of Institutional Investors, among others, to block Snap Inc.’s eligibility for S&P Dow Jones and other indices may be looked back on as a turning point in an expansion of the governance battlefield. Recent developments in the realm of dual-class issuers shed light on whether this potential movement of governance matters into index eligibility criteria is sensible, says Ethan Klingsberg ... (continued)
The Delaware Chancery Court’s recent decision in SWS Group raises the question whether below-the-merger-price appraisal results will now become more common. A number of commentators have suggested that the answer is yes, but their conclusion follows what we believe to be a misconception, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.
What protections are available under the Dodd-Frank Act’s whistleblower law if an employee reports securities fraud within the company? Courts have pointed to two separate definitions of “whistleblower” under the law to justify their differing positions. However, a more careful review of its history should resolve this prolonged dispute, says Stephen Kohn of Kohn Kohn and Colapinto LLP.
After a major market contraction in the wake of the financial crisis, risk-pooling transactions show signs of gaining favor once more, says Daniel Budofsky of Pillsbury Winthrop Shaw Pittman LLP.
The U.S. Supreme Court's recent decision in the Kokesh case limits not just U.S. Securities and Exchange Commission enforcement actions, but also monetary relief sought by other agencies, like the Federal Trade Commission. A faithful application of this decision should lead to courts rejecting these agencies' long-standing practice of seeking penal monetary relief under their equitable authority, say Benjamin Mundel and Lucas Crosl... (continued)
The U.S. Securities and Exchange Commission has brought about significant changes to the procedures contemplated by the original Securities Act of 1933, but it is surprising how little the overall scheme has changed. On the other hand, conditions in the securities markets have changed dramatically since 1933, says Joseph McLaughlin of Sidley Austin LLP.
Statutory damages guarantee a minimum recovery in each individual case where a violation may cause only nominal damage. But aggregated statutory damages in class actions can create a risk of staggeringly large awards, which may not be tax-deductible. Companies must know the law and take steps to minimize tax consequences, says Peter Robbins of Corbett & Robbins LLP.
One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.
A new standard that will require companies to generally change the way they account for equity investments of less than 20 percent has largely flown under the radar, but the changes from past practice are significant. The new accounting standard could have a ripple effect on a company’s balance sheet and results of operations, say Leslie Silverman and Andrea Basham of Cleary Gottlieb Steen & Hamilton LLP.