Securities

  • April 28, 2017

    Home Depot Settles Investor Suit Over Data Breach

    Investors in The Home Depot Inc. struck a deal to end their shareholder derivative suit against members of the retailer’s board of directors over a 2014 customer data breach, according to a proposed settlement filed in Georgia federal court Friday.

  • April 28, 2017

    Delfasco Can't Buy Bankrupt Conco Until 2019, 6th Circ. Says

    The Sixth Circuit on Friday rejected an appeal by shareholders of bankrupt military contractor Conco Inc. to allow its main competitor, Delfasco LLC, to purchase the company, affirming the findings of bankruptcy and district courts that the sale would violate a court-confirmed Chapter 11 reorganization plan.

  • April 28, 2017

    Seller In Stock Row Slams $20M Award In Federal Court

    A Canadian hedge fund founder urged a California federal court Friday to vacate a $20 million arbitration award he and others were ordered to pay a trading company that claims to have been the victim of a complex international stock scam, saying the Financial Industry Regulatory Authority tribunal exceeded its jurisdiction in granting it.

  • April 28, 2017

    US Investors In Chinese Online Lender Fight To Preserve Suit

    Shareholders in Chinese peer-to-peer lending company Yirendai Ltd. asked a California federal judge on Thursday to keep their securities fraud suit against the company and its executives alive, saying their request to dismiss the case rested on mischaracterizations and factual arguments the court couldn’t consider.

  • April 28, 2017

    Brazilian Fund Intermediary Wants $3.6M Award Confirmed

    A Brazilian intermediary for investment funds on Friday asked a New York federal court to confirm an arbitral award, now exceeding 11.4 million Brazilian reais ($3.6 million), against a broker after a tribunal found that the broker had failed to pay a bonus under the terms of the parties’ contract.

  • April 28, 2017

    Retrophin Waived Privilege Over Atty Docs, Shkreli Says

    Retrophin Inc.’s cooperation with the government in the criminal case against Martin Shkreli and the company’s separate action against its former CEO amounts to a “wholesale waiver” of privilege over communications key to Shkreli’s defense, his attorneys told a New York federal court.

  • April 28, 2017

    SEC Seeks $363K Secretly Owned By Jailed Fund Manager

    The U.S. Securities and Exchange Commission asked a California federal judge on Thursday to let it seize $363,000 in a frozen investment account, saying an investor from Monaco who claimed to own the account was coached to do so by convicted fund manager James Michael Murray.

  • April 28, 2017

    Flawed Analyses Undermine Gold Price-Fixing Suit, Banks Say

    Barclays Bank PLC and three other banks want another shot at tossing a proposed class action accusing them of manipulating a benchmark gold price, telling a New York federal court in a letter that they have discovered errors in the statistical evidence marshaled against them.

  • April 28, 2017

    4th Circ. OKs RJ Reynolds' Win In $50M ERISA Suit

    The Fourth Circuit on Friday upheld tobacco giant RJ Reynolds’ win in an Employee Retirement Income Security Act class action over $50 million allegedly lost to retirement plan mismanagement following its 1999 spinoff from RJR Nabisco Inc., saying that a hypothetical and prudent plan manager would have done the same thing.

  • April 28, 2017

    FINRA Charges Broker Over Misleading Offering Docs

    The Financial Industry Regulatory Authority filed charges Thursday against a broker who allegedly raised more than $1.6 million from his customers using misleading offering documents that omitted facts about his fund, including that the assets were actually controlled by a fraudster who lost $650,000 of the cash.

  • April 28, 2017

    Banking Giants Hit With Indirect Investors' Forex Rig Suit

    JPMorgan Chase & Co., Bank of America Corp. and several other major banks are facing yet another proposed class action for allegedly manipulating the foreign exchange market, after investors who indirectly bought the firms' products sued Friday.

  • April 28, 2017

    Paragon Offshore Pitches Another Ch. 11 Disclosure In Del.

    Paragon Offshore PLC positioned itself for a third Chapter 11 plan confirmation effort Friday, securing a Delaware bankruptcy judge’s approval for a revised disclosure and reorganization plan proposal that will give creditors control of the company and the oil driller's right to sue its corporate parent.

  • April 28, 2017

    Idaho Man To Pay Feds $8M For EB-5 Investment Fraud

    The U.S. Securities and Exchange Commission announced on Friday that an Idaho man has agreed to pay the federal government nearly $8 million for allegedly misappropriating money from Chinese investors for personal use instead of investing it in the EB-5 immigrant investor program.

  • April 28, 2017

    Some Expert Testimony Allowed In SEC Funds Transfers Suit

    An Illinois federal judge on Friday told the expert witnesses in the U.S. Securities and Exchange Commission’s funds tranfers suit against defunct investment advisory outfit The Nutmeg Group LLC that they can stay on the case if they keep their testimony in the lines.

  • April 28, 2017

    Delivery Agent Unsecured Creditors Seek To Probe Top Execs

    The unsecured creditors committee in the Delivery Agent Inc. Chapter 11 asked the Delaware bankruptcy court Friday for clearance to launch an investigation into the company’s top brass connected to securities fraud accusations the body claims could also imply alleged breaches of fiduciary duty.

  • April 28, 2017

    SEC Says Jail Could Still Prompt Kapur To Cough Up $2.2M

    The U.S. Securities and Exchange Commission asked a Manhattan federal judge Thursday to keep hedge fund founder Chetan Kapur jailed for contempt of $10 million in civil judgments, asserting that incarceration could still coerce the recalcitrant defendant to lead authorities to $2.2 million stashed in Switzerland.

  • April 28, 2017

    Friedman Kaplan Adds Ex-Prosecutor To White Collar Group

    Friedman Kaplan Seiler & Adelman LLP has reclaimed its former partner Mala Ahuja Harker, a onetime federal prosecutor who will join the firm's white collar and litigation practice groups as a partner in its Newark, New Jersey, and New York City outposts. 

  • April 28, 2017

    Ex-CFO 'Has No Remorse' For $300M Ponzi Scheme, Feds Say

    Federal prosecutors in Florida slammed a convicted real estate executive's bid for leniency Wednesday, saying that the onetime chief financial officer behind a $300 million Ponzi scheme "has no remorse" for his crimes, and reiterated their sentence recommendation for 93 years' imprisonment and hundreds of millions of dollars in restitution and fines.

  • April 28, 2017

    Dewey Execs' Fraud Prompted By 7-Figure Pay, State Says

    Two former executives at Dewey & LeBoeuf LLP were motivated by their multimillion-dollar paychecks to deceive the firm's financial backers, a prosecutor said during New York state's closing arguments Friday.

  • April 28, 2017

    SAC Trader Says 1st Circ. Upheld Newman After Salman

    Ex-SAC Capital Advisors manager Mathew Martoma encouraged the Second Circuit Thursday to follow its sister circuit’s lead in holding the U.S. Supreme Court’s Salman opinion didn’t flip the New York appellate court’s earlier finding that close relationships are necessary to sustain insider trading convictions.

Expert Analysis

  • In Congress: Stopgap Funding, Jay Clayton, North Korea

    Richard Hertling

    Lawmakers were able to avert a shutdown on Friday by passing a one-week stopgap funding bill to keep the government operational. This week, they are looking to finalize a broader spending package, as well as tackle other long-term legislative business, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • 2nd Circ. May Clarify 5th Amendment Issue In Libor Case

    Mark Racanelli

    A pending Second Circuit case raises an interesting constitutional question for practitioners whose clients are subject to parallel, cross-border white collar investigations: When someone gives compelled testimony to foreign law enforcement officials, does the Fifth Amendment bar U.S. prosecutors from using her statements, directly or indirectly, to criminally prosecute her? say Mark Racanelli and Michael Simeone of O’Melveny & Myers LLP .

  • The Mediator’s Proposal As A Tool For Litigants

    Dennis Klein

    Mediators’ proposals, which call for an unconditional and confidential acceptance or rejection, are resolving high-value disputes on a regular basis. Dennis Klein of Critical Matter Mediation examines why this is happening and the tactical implications for litigants in anticipating that a mediator’s proposal could resolve litigation.

  • Unocal Uncertainty, Other Takeaways From Paramount Gold

    Warren S. de Wied

    The Delaware Chancery Court's recent decision in Paramount Gold and Silver Stockholders Litigation highlights the open issue as to whether a post-closing challenge to deal protection devices under Unocal would survive if Corwin were applicable, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • 100 Days Of FCPA Under Trump: 10 Takeaways

    Meghan Hansen

    Since the presidential election, there has been uncertainty about the future of Foreign Corrupt Practices Act enforcement. The Trump administration's first 100 days have given some clues, say Meghan Hansen and Carolyn Wald of Latham & Watkins LLP.

  • Expectations After The Trump Administration's First 100 Days

    Jim Flood

    In its first 100 days, the Trump administration has had mixed results and may be behind where it wants to be. The biggest threat to President Donald Trump’s domestic policy agenda beyond the first 100 days is the difficulty of reconciling the Freedom Caucus Republicans, moderate Republicans and Democrats, say Jim Flood and Cari Stinebower of Crowell & Moring LLP.

  • FINRA’s Foray Into Insider Trading

    Benjamin Kozinn

    Based on a recent multiyear case against a distressed debt trader, the Financial Industry Regulatory Authority seems ready, willing and able to take a more prominent role in insider trading, say attorneys with Lowenstein Sandler LLP.

  • The Challenges For CEA Price Manipulation Plaintiffs

    Mark Young

    The recent contrasting outcomes of the regulatory and private actions against Total Gas illustrate at least one significant difference between public and private price manipulation enforcement under the Commodity Exchange Act — private plaintiffs have a difficult, and sometimes insurmountable, hurdle to overcome, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • Thinking Fast And Slow About Class Action Reform

    Michael Donovan

    Corporate interests lobbying for H.R. 985, the anti-class action bill recently passed by the U.S. House of Representatives, are the same ones that pushed the Class Action Fairness Act in 2005. That law caused most significant class actions to migrate to federal courts. Ironically, the new bill could return many class actions to state courts, says Michael Donovan of Donovan Litigation Group LLC.

  • The 9-Year Winning Streak Of Virginia ‘Rocket Docket’

    Bob Tata

    Out of 94 district courts, the Eastern District of Virginia has been the fastest civil trial docket in the country for nine straight years. Without micromanaging the process, the EDVA's judges, magistrate judges, and clerks and staff continue to perform at a stunningly efficient level, says Bob Tata of Hunton & Williams LLP.