The U.S. Securities and Exchange Commission’s electronic filing system for public company disclosures was hacked last year, and the agency last month learned that the cyber-intruders may have traded off the nonpublic information that was exposed, agency Chairman Jay Clayton said in a statement Wednesday night.
A New York federal judge dismissed a proposed shareholder class action against Eaton Corp. PLC on Wednesday, saying company officials didn’t defraud shareholders about their desire or ability to sell a major business unit in the wake of a controversial merger that moved its HQ to low-tax Ireland.
Keurig Green Mountain Inc. has urged a Vermont federal court to grant it and its former top officers a quick win in a securities class action that accuses them of misleading the market with a "false growth story," telling the court that the investors behind the suit can't connect their allegations to the losses they claim to have suffered.
The U.S. Securities and Exchange Commission on Tuesday pushed its fraud case against a former Washington, D.C., lawyer accused of helping with her brother’s $14.5 million Ponzi scheme, telling a Massachusetts federal court that her “attempt to minimize her conduct falls flat.”
Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.
The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.
White collar suspects’ use of email and other electronic communications about their illicit activity has been a boon to prosecutors for decades, but the rise of encrypted messaging apps and other new technology may be a roadblock to Wall Street prosecutors accustomed to a run of successes.
The comment period on the U.S Department of Labor's proposal to delay parts of its fiduciary rule for retirement account advisers closed Friday, with a chorus of industry stakeholders, investor advocates and think tanks weighing in on what freezing key provisions of the rule until July 2019 might mean. Here, Law360 looks at what financial groups, politicians, individuals and others had to say.
The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.
Manhattan federal prosecutors on Tuesday said a jury deciding if Platinum Partners LP's founder bribed a union official for investments should hear evidence that Platinum's principal fund was losing investors at the time.
A government financial crimes watchdog on Wednesday warned U.S. banks to be on the lookout for attempts by Venezuelan government officials to funnel illicit funds into American real estate and other markets.
Federal Reserve Chair Janet Yellen on Wednesday warned that the central bank was looking closely at taking actions against Wells Fargo & Co. for its “egregious and unacceptable” sales practices and other problems.
The directors of fertility treatment developer OvaScience Inc. on Tuesday asked a Delaware federal judge to transfer a derivative action filed in the First State to Massachusetts, where the company is headquartered and where similar suits over excessive director compensation have already been filed.
The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.
The former CEO of a fiber optics company that was bought by Corning Inc. last year was arrested Wednesday after being criminally charged and sued by the U.S. Securities and Exchange Commission for allegedly using insider information and secret brokerage accounts to make $2 million.
A New Jersey federal judge Monday found the dissolution of the original policyholder in a merger did not relieve Progressive Casualty Insurance Co. of the duty to defend the post-merger bank from a stockholder suit.
Five lawyers are soon joining forces to open a boutique law firm — Tiber Hudson LLC — that will have offices in New York City and Washington, D.C., and will focus on real estate, securities, government contracts and banking, among other areas, one of the five attorneys told Law360 on Wednesday.
A New York federal judge gave European investment firm KBC Asset Management NV and its lawyers at Motley Rice LLC the green light on Tuesday to lead a proposed securities fraud class action against cloud computing company Rackspace Hosting Inc.
A decision on the equivalence of securities and derivatives markets regulation in the U.S. and the European Union could be finalized in the next few months after intense negotiations between regulators on both sides of the Atlantic, a senior EU official said Wednesday.
Marathon Oil told a Texas federal court Tuesday that it has agreed to pay a group of limited partners $33.1 million to settle claims that the company cheated them out of millions in foreign tax credits in connection with a gas processing plant in Equatorial Guinea.
A New York state court’s recent decision in LNYC Loft v. Hudson Opportunity Fund regarding the authority of a limited liability company to appoint a special litigation committee represents a departure in the trend of courts using statutory and common law to address questions that are not directly addressed by an LLC operating agreement, say Muhammad Faridi and Elizabeth Quirk of Patterson Belknap Webb & Tyler LLP.
The Delaware Chancery Court's opinion in Morris v. Spectra Energy provides a road map for the litigation of safe-harbor provisions in limited partnership agreements and invites close review by both private fund litigators and drafters of Delaware LPAs, says Darren Kaplan of Stueve Siegel Hanson LLP.
Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.
The recent decision from the U.S. Department of Labor's Administrative Review Board in Blanchard v. Exelis Systems is important because it makes clear that, so long as the misconduct reported by the employee affects the United States in “some significant way,” the Sarbanes-Oxley Act will apply extraterritorially, says Matthew LaGarde of Katz Marshall & Banks LLP.
Now that we are several months into an administration with an agenda of financial deregulation, one might reasonably believe financial institutions are in for several years of relative quiet from regulators. However, at least two factors raise the potential risk for a future wave of investigative activity, says Mark Schonfeld of Gibson Dunn & Crutcher LLP.
Financial Crisis Anniversary
The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.
Financial Crisis Anniversary
Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.
The Second Circuit's recent Martoma decision potentially expands the category of persons that, upon the disclosure of confidential information without pecuniary or tangible benefit, may constitute tippers or tippees subject to insider trading liability, say attorneys with Cadwalader Wickersham & Taft LLP.
Insider trading allegations have surfaced at Equifax, where three executives sold nearly $2 million in shares of the company’s stock days after the cyberattack was discovered but before the news was announced. The situation raises a number of fundamental questions about Equifax’s insider trading policy, say Gary Tygesson and Cam Hoang of Dorsey & Whitney LLP.
The Private Securities Litigation Reform Act protects “forward-looking statements,” but what if a prediction is presented with, and based upon, statements of current fact? New opinions from the Ninth Circuit suggest that such juxtaposing has become risky, say Nathaniel Cartmell III and Bruce Ericson of Pillsbury Winthrop Shaw Pittman LLP.