Securities

  • February 24, 2017

    Cos., Others Must Pay Over $7M In Pyramid Scheme Case

    A Massachusetts federal judge on Thursday ordered several individuals and companies to fork over more than $7 million in a case with the U.S. Securities and Exchange Commission involving an alleged $23.5 million Ponzi and pyramid scheme that preyed on Latino immigrants in the Boston area.

  • February 24, 2017

    L3 Pressed On Secret Side Deal In $34.5M Fraud Settlement

    Military contractor L3 Technologies Inc. and shareholders leading a securities class action against the company have some explaining to do about a nonpublic supplemental deal folded into a proposed $34.5 million settlement, a New York federal judge said Friday.

  • February 24, 2017

    Feds Hit Back At UN Bribery Suspect's Discovery Grumbles

    Federal prosecutors on Thursday pushed back against complaints from Chinese real estate tycoon Ng Lap Seng that the government has been slow to produce key evidence in the case accusing him of trying to bribe United Nations officials, calling the gripes inaccurate.

  • February 24, 2017

    Share Gain Defended, Fee Disputed In Dell Appraisal Appeal

    Dell Inc. stockholder attorneys who won a 28 percent bump in share prices after a Delaware Chancery Court challenge to a $24.9 billion go-private buyout told Delaware’s Supreme Court late Thursday that justices should either uphold the price over Dell’s objections or take it higher.

  • February 24, 2017

    SEC Says Fortress Traders Used Inside Info On SoftBank Deal

    The U.S. Securities and Exchange Commission on Friday hit unknown traders of private equity firm Fortress Investment Group LLC securities with a lawsuit alleging they reaped about $3.6 million in profits based on inside information about Japanese telecommunications and internet giant SoftBank Group Corp.'s impending $3.3 billion acquisition of Fortress.

  • February 24, 2017

    11th Circ. OKs Rothstein Fund Manager's Safe Harbor Defense

    The Eleventh Circuit reversed a summary judgment ruling on a securities violation claim against a Florida fund manager who funneled investor money into Scott Rothstein's $1.2 billion Ponzi scheme, saying that he could use a safe harbor defense in a U.S. Securities and Exchange Commission enforcement action.

  • February 24, 2017

    Cynosure Investors Sue To Block $1.4B Hologic Merger

    Shareholders in medical aesthetics company Cynosure Inc. filed suit in Massachusetts federal court Friday to halt the company’s proposed $1.44 billion sale to Hologic Inc., saying they don’t have enough information to ensure the cash purchase is a good deal.

  • February 24, 2017

    1st Circ. Affirms Cocktail-Napkin Insider Trading Conviction

    The First Circuit on Friday affirmed the conviction of a Massachusetts man who got a tip about a bank acquisition on a country club cocktail napkin, finding the "surreptitious" manner of the tip was enough for a jury to conclude that he knew his tipper was spilling secrets.

  • February 24, 2017

    Okla. Ex-Lawmaker Must Pay $4.3M For Defaming CEO

    An Oklahoma jury on Wednesday ordered a former state legislator to pay $4.3 million for defaming an insurance company and its CEO after the executive was forced off the firm’s board of directors in 2013.

  • February 24, 2017

    LeapFrog Can't Ditch All Of Calif. Investors' Suit

    A California federal judge on Friday partially kept alive a proposed investor class action accusing children's educational game maker LeapFrog Enterprises Inc. and its brass of hiding demand and inventory problems, saying investors provided enough evidence to bring claims surrounding a $36.5 million asset write-down.

  • February 24, 2017

    Acting SEC Chair Sets Sights On Disclosure Avalanche

    Acting U.S. Securities and Exchange Commission Chair Michael Piwowar said Friday that the agency should focus on what he called the “forgotten investor” and take a second look at policies like disclosure requirements, high corporate penalties and accreditation rules he says have adversely impacted investors.

  • February 24, 2017

    Mediation Fails in MF Global's $1B PwC Malpractice Suit

    A last-ditch effort to avert trial in MF Global's billion-dollar professional malpractice suit against its accountants at PricewaterhouseCoopers has ended in failure, and a final fight has erupted over what the jury can be told about the firm’s collapse and PwC’s responsibilities, according to documents filed Friday in New York federal court.

  • February 24, 2017

    Pa. PE Firm's Pretrial Deal With Co. Minority Owners Fails

    A potential settlement that would have released the minority owners of a network infrastructure company from a lawsuit brought by one of Pennsylvania’s largest private equity firms alleging they misrepresented the value of their asset collapsed Friday, after a federal trial had been postponed because of the pending agreement.

  • February 24, 2017

    IBM Asks Judge To Toss 'Amorphous' Revamped ERISA Suit

    IBM on Friday urged a New York federal judge to throw out the second amended complaint in a putative class action by employees alleging that fraud involving the sale of its troubled microchip division made its stock plunge, saying the new filing merely repeated deficient claims from the earlier dismissed complaint.

  • February 24, 2017

    Brokers Fight To Keep $20M Botched Trade Award Suit In NY

    Brokers who facilitated an allegedly botched stock trade for BTIG LLC fought Thursday to keep their suit seeking to vacate a $20 million arbitral award in New York rather than California, telling a New York judge that BTIG's California suit was filed after the New York suit had already begun.

  • February 24, 2017

    THQ Execs Want 9th Circ. To Rethink Reviving UDraw Suit

    Two executives of now-bankrupt THQ Inc. have urged the full Ninth Circuit to rethink reviving class allegations that they misled investors leading up to the company's failed plan to expand its Nintendo Wii accessory to other platforms, saying the appeals court depended on facts absent from the complaint.

  • February 24, 2017

    SEC To Call Off Industry Bars On Pre-Dodd-Frank Offenses

    The U.S. Securities and Exchange Commission said Thursday it will not appeal a D.C. Circuit decision to strike down an industrywide bar the agency imposed for securities law violations that took place before the agency got the power to do so, saying it will rescind bars applied in similar cases.

  • February 24, 2017

    Lewis Brisbois Snags Litigator For New Miami Office

    Lewis Brisbois Bisgaard & Smith LLP has added an experienced litigator to its fledgling Miami office from Weinberg Wheeler Hudgins Gunn & Dial LLC, boosting the firm’s depth in its insurance, construction, securities and products liability practices.

  • February 24, 2017

    Trump's Vow To Reduce Regs Shouldn't Put PE Firms At Ease

    Though the Trump administration has made clear it intends to substantially reduce regulation across the board, experts say that won't necessarily apply to private equity clients, who should continue to focus on compliance efforts to boost investor confidence and avoid being the next industry player tripped up by a regulatory examination.

  • February 24, 2017

    Chevron Admits Risks Of Climate Change Probes, Litigation

    Chevron Corp. on Thursday acknowledged to investors that increasingly aggressive public efforts to combat climate change could eventually strand its oil and gas resources underground, as well as open the company up to governmental probes and litigation, a fate that has already befallen fellow energy giant ExxonMobil Corp.

Expert Analysis

  • What To Do If You Suspect Your EB-5 Project Is In Trouble

    Catherine DeBono Holmes

    Managers and investors in EB-5 investment funds should regularly monitor their investments and be ready to take action if they detect signs of trouble. There are several proactive steps they can take to discover potential problems before they become a crisis, say Catherine DeBono Holmes of Jeffer Mangels Butler & Mitchell LLP, Daniel Lundy of Klasko Immigration Law Partners LLP, and Jeffrey Brandlin of Brandlin and Associates.

  • What Lawyers Can Learn From Kellyanne Conway

    Michelle Samuels

    Presidential adviser Kellyanne Conway's TV appearances provide some examples of what lawyers should and shouldn't do when speaking to the media, says Michelle Samuels, a vice president of public relations at Jaffe.

  • Latest Twist In The Merger Objection Lawsuit Saga

    Kevin M. LaCroix

    A New York appellate court’s recent decision in Gordon v. Verizon presents a number of important suggestions on the future direction of merger objection lawsuits, and raises the question of whether New York will become an attractive forum for such cases, says Kevin LaCroix of RT ProExec.

  • Understanding Connecticut's Income Tax On Stock Options

    Marc Finer

    The Connecticut Supreme Court's recent holding in Allen v. Commissioner of Revenue Services shows how state tax considerations can play a significant role in executive compensation planning. The ruling particularly highlights the importance of analyzing the varying rules applied by each state to taxing stock options and other equity-based deferred income, say Marc Finer and James Brockway of Withers Bergman LLP.

  • Recapping A Record Year For The PCAOB

    Jonathan J. Walsh

    2016 was the busiest year ever for the Public Company Accounting Oversight Board’s Division of Enforcement. The types of proceedings made public last year are likely to remain staples of its enforcement agenda for the foreseeable future, say Jonathan Walsh and Robert Groot of Curtis Mallet-Prevost Colt & Mosle LLP.

  • Financial Services In The 1st Month Of Trump Presidency

    Matthew Cutts

    In the first 30 days of his administration, President Donald Trump issued more than two dozen executive orders, memoranda and proclamations, several of which significantly impact the financial services industry. In addition, policymakers are turning their time and attention to reforming the nation’s financial services laws, with a “Choice Act 2.0” likely to be introduced soon, say Matthew Cutts and James Sivon of Squire Patton Boggs LLP.

  • The Cyber Ecosystem: Evolving Tech And Risk Governance

    Sonja S. Carlson

    The volume and velocity of cyberattacks is increasing, and so is our interconnectedness, fueled by growing use of internet of things devices. Companies must find ways to adeptly and nimbly address cyberrisks in order to navigate a myriad of business and legal concerns, say Sonja Carlson of Sheppard Mullin Richter & Hampton LLP and Mingu Lee of Samsung SDS America.

  • The Mistakes Lawyers Make When Copying And Pasting

    Robert D. Lang

    We all recognize that cutting or copying text from earlier works and pasting it into new documents saves attorneys time. However, with this increase in speed comes an increased risk of making, or not catching, errors, says Robert Lang of D’Amato & Lynch LLP.

  • Upcoming Revenue Recognition Changes Will Affect M&A

    Frank A. Lazzara

    In 2018, the regulatory landscape surrounding revenue recognition will change for many companies. Deal makers will need to ensure they understand the impact of the new standard on historical results and that any purchase price mechanisms properly reflect the intentions of each party, say Frank Lazzara and John Sullivan of FTI Consulting Inc.

  • Opinion

    Calif. Court Gets Automatic Funding Disclosure Right

    Matthew D. Harrison

    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.