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Securities

  • September 21, 2018

    Investment Firm Says Securities Law Keeps Suit In Fed. Court

    An investment firm facing claims it concealed conflicts of interest when transferring investor money into a mutual fund told an Illinois federal court on Friday the Securities Litigation Uniform Standards Act bars a proposed class of investors from moving the case back to state court.

  • September 21, 2018

    Class Alleges Genworth Is Sinking Own Long-Term Care Unit

    Insurance holding company Genworth Financial was hit with a putative class action in Delaware Chancery Court on Friday by holders of long-term care policies from one of its subsidiaries, who allege that the parent company is sabotaging their benefits by fraudulently transferring the subsidiary’s assets to its other units.

  • September 21, 2018

    Online Fundraisers Fraught With Criminal, Civil Risks

    Civil litigation, potential criminal charges and uncertain access for beneficiaries are among the risks of the relatively new concept known as crowdfunding, as highlighted by the the viral story chronicling the legal battle between a homeless veteran and a New Jersey couple. Here are three things attorneys should tell their clients about do-it-yourself fundraisers.

  • September 21, 2018

    High Court Case On ERISA Burden Ends In Settlement

    A U.S. Supreme Court case that could have resolved a circuit split over where the burden of proof falls in Employee Retirement Income Security Act fiduciary-breach cases ended Thursday, with the high court tossing a suit between Alerus Financial NA and an employee stock-ownership program after the parties settled.

  • September 21, 2018

    Ex-Platinum Partners Exec Dies Ahead Of $1B Fraud Trial

    Former Platinum Partners honcho Uri Landesman, charged for his role in a purported $1 billion securities fraud scheme, died, his lawyer said Friday, ahead of a January trial of hedge fund executives accused of duping bondholders of defunct offshore driller Black Elk.

  • September 21, 2018

    Regional Center, Affiliates Pay SEC $11.5M Over EB-5 Claims

    The U.S. Securities and Exchange Commission said in an order Friday that an Illinois regional center, its CEO and 37 affiliated partnerships have agreed to pay more than $11.5 million to settle claims that they offered unregistered securities under the EB-5 Immigrant Investor Program.

  • September 21, 2018

    Calif. Gov. Signs Wildfire Bills, Limiting PG&E Liability

    California Gov. Jerry Brown signed a package of bills Friday that aims to help the state prevent and recover from catastrophic wildfires, including a controversial bill that critics call a bailout for Pacific Gas and Electric Co. but that its author says is needed to save the liability-burdened utility from bankruptcy.

  • September 21, 2018

    Schwab, Ameritrade Say Goldman Can't Ditch IPO Deal

    Charles Schwab Corp. and TD Ameritrade Inc. have accused Goldman Sachs Group Inc. of unfairly trying to terminate an agreement allowing the brokerages to share Goldman securities offerings with their own customers, according to a complaint filed in New York state court Thursday.

  • September 21, 2018

    Barrick Gold Escapes Investor Class Action Over Mine Spill

    A New York federal judge granted Barrick Gold Corp.’s motion to dismiss a class action claiming the company misstated problems that led to a chemical spill at its Veladero mine in Argentina, finding the company’s allegedly misleading public statements were either forward-looking or not inherently false.

  • September 21, 2018

    Agrokor Gets Croatian Restructuring Recognized In US Court

    A New York bankruptcy judge on Friday granted Croatian food and beverage giant Agrokor U.S. bankruptcy protection while the company works through its restructuring deal in its home country.

  • September 21, 2018

    New EB-5 Fraud Suit Against Fla. Man Targets Condo Project

    A Florida man is once again facing accusations of EB-5 visa program fraud after a group of Chinese investors accused him of stealing their funds after throwing around promises for a condominium development that ultimately remained unimproved and empty, causing their petitions for U.S. residency to be denied.

  • September 21, 2018

    Ex-Brokers Say 'Punitive' Morgan Stanley Suit Lacks Evidence

    A group of former Morgan Stanley Smith Barney brokers who are accused of luring their former clients to a new firm asked an Illinois federal judge not to enter a temporary restraining order against them Friday, saying there is no evidence to support the bank's claims.

  • September 21, 2018

    Sentencing Delay In $1.6M Pump-And-Dump Frustrates Judge

    A Massachusetts federal judge on Friday vented her frustration as a man who copped to arranging a $1.6 million pump-and-dump scheme told her hours before he was set to be sentenced that he would not be flying up to Boston for the hearing because he wants to stay in Florida to be with his dying father.

  • September 21, 2018

    Chancery Agrees To Master For $15B Student Loan Trust

    Noting months of costly disagreements and litigation among parties to a troubled $15 billion fleet of student loan trusts, a Delaware vice chancellor agreed Friday to appoint a special master to handle disputes involving the trusts' owners, investors, agents and administrators.

  • September 21, 2018

    MabVax Stock Actions Stand Amid Pump-And-Dump Claims

    A Delaware vice chancellor on Thursday let stand a series of stock conversions that biotech company MabVax Therapeutics Holdings Inc. had worried were in question due to claims of a “well-planned” and “extensive” pump-and-dump scheme that is the subject of a recent federal lawsuit.

  • September 21, 2018

    Chancery Judge Says Goldman Settlement Makes No Sense

    A Delaware Chancery Court judge expressed confusion Friday over the nature of a settlement proposed among a shareholder of Goldman Sachs Group Inc. and the company's directors, saying the deal didn't make sense and didn't offer a balanced result because the board members weren't giving up the stock awards at the center of the excessive compensation complaint.

  • September 21, 2018

    Petrobras Can't Arbitrate Investors Bribery Row In Brazil

    A Netherlands court has denied Brazilian state-owned Petrobras' bid to arbitrate investors' securities fraud claims stemming from the oil giant's massive corruption scandal, ruling instead that shareholders can proceed with a collective action in Rotterdam.

  • September 21, 2018

    Gas Drilling Rights Holders Denied Cert. In Royalty Row

    An Arkansas federal judge has denied class certification in a lawsuit alleging Southwestern Energy Co. underpaid royalties to natural gas drilling rights holders, finding that the complex patchwork of wells, leases and integration orders involved does not make for a clearly definable group of plaintiffs.

  • September 21, 2018

    Ex-Deutsche Bank Euribor Trader Held In Italy, SFO Says

    A former Deutsche Bank trader who was allegedly involved in manipulating a key European interest rate benchmark has been arrested in Italy and could be extradited to the U.K., the Serious Fraud Office revealed on Friday.

  • September 20, 2018

    PayPal Investors Face Skeptical Judge In Hack Class Action

    A California federal judge seemed skeptical Thursday about whether a proposed class of PayPal shareholders’ data breach suit could move forward, saying his “biggest issue” was the suit’s reliance on confidential witnesses, whose allegations were “pretty amorphous,” especially when it came to showing the company knowingly hid the breach in an early press release.

Expert Analysis

  • Cloud Computing Clearly The Future For Small Firms

    Holly Urban

    While in-house technology investments on the scale and complexity needed to compete with large firms remain cost prohibitive for small and midsize law firms, cloud-based services offer significant cost savings and productivity gains with little to no capital investment, says Holly Urban of Effortless Legal LLC.

  • Signs Of Renewed SEC Interest In Key Performance Indicators

    Brooke Clarkson

    Key performance indicators have been a topic of concern for the U.S. Securities and Exchange Commission for some time, but enforcement actions have been less prevalent. Recent actions coupled with statements by commission officials, however, suggest that KPIs may become more of a focus for the current SEC, say Brooke Clarkson and Jessica Matelis of Foley & Lardner LLP. 

  • Leveraging Today's Lateral Associate Market

    Darin Morgan

    With the Milbank/Cravath pay scale once again equalizing compensation at many Am Law 100 firms, there is even more pressure for firms to differentiate themselves to top lateral associate candidates. This presents strategic considerations for both law firms and lateral candidates throughout the recruitment process, says Darin Morgan of Major Lindsey & Africa.

  • Opinion

    What I Learned As Lehman's Bankruptcy Lawyer

    Andrew Rossman

    I have spent nearly 10 years fighting in court for the rights of Lehman Brothers’ creditors. This arduous legal journey has yielded insights into weaknesses in our financial system and bankruptcy laws that could allow catastrophic losses to happen again, says Andrew Rossman of Quinn Emanuel Urquhart & Sullivan LLP.

  • Zaslavskiy Does Little To Encourage Clear Crypto Guidance

    Alexis Collins

    A New York federal judge's decision last week in Zaslavskiy relieves the government of a potentially significant pleading burden when bringing cryptocurrency actions, but does not encourage clarification of clear standards for application of the Howey test, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Q&A

    Back To School: Stanford's Jeff Fisher Talks Supreme Court

    Jeffrey Fisher

    In this series featuring law school luminaries, Stanford Law School professor Jeffrey Fisher discusses his motivation for teaching, arguing before the U.S. Supreme Court and what the court might look like if Judge Brett Kavanaugh is confirmed.

  • The Diminishing Role Of Agency Guidance

    David Freeman

    An interagency statement issued by several banking agencies last week — that supervisory guidance does not have the force and effect of law — reflects the current administration’s deregulatory agenda. But ultimately, the agencies’ newly stated position may have little practical impact, say attorneys with Arnold & Porter.

  • Where Have The SEC Enforcement Actions Gone?

    Kurt Wolfe

    There has been a dip in the number of enforcement actions from the U.S. Securities and Exchange Commission during Chairman Jay Clayton’s tenure, but this decline does not tell the whole story. The commission is still bringing a historically high volume of actions — they just happen to be in slightly different areas, says Kurt Wolfe of Troutman Sanders LLP.

  • Preparing For New Life Settlement Transactions Reporting

    Kristan Rizzolo

    Last year’s Tax Cuts and Jobs Act imposed a host of new information reporting requirements on participants in life settlement transactions. Those affected should put systems in place now to ensure they have the information they need when the filing requirements go into effect, say attorneys at Eversheds Sutherland LLP.

  • Opinion

    Orexigen Decision At Odds With High Court Jurisprudence

    Douglas Greene

    The Ninth Circuit's decision last month in Khoja v. Orexigen Therapeutics — placing constraints on the record a court may consider in deciding falsity and scienter under the securities laws — countermands the U.S. Supreme Court’s direction to courts in Omnicare and Tellabs, say attorneys with BakerHostetler.