We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Securities

  • June 14, 2019

    Feds Can't Pause SEC's Civil Suit Against Ex-Theranos Exec

    A California federal judge on Friday refused the government's request to pause a civil suit against former Theranos executive Ramesh “Sunny” Balwani, finding that doing so would be "a gamble" that could unduly prejudice the former leader of the failed blood-test company.

  • June 14, 2019

    States' Model Payments Law May Ease Entry For Fintechs

    State banking regulators are collaborating on a uniform model payments law that would facilitate compliance with different state rules, and in the absence of federal government action, some attorneys say the effort could benefit fintech companies by providing multistate consistency.

  • June 14, 2019

    IAC, Match Must Face Tinder Founders' Trimmed $2B Suit

    A New York state court on Thursday pared back, but declined to dismiss, a $2 billion suit alleging online entertainment companies IAC and Match Group Inc. deliberately tanked the valuation of the Tinder dating app company, thereby lowering the value of employees’ stock options.

  • June 14, 2019

    Lone Star Laterals: Munck Wilson, Thompson Knight, SEC

    In our latest roundup of lateral moves across Texas, the U.S. Securities and Exchange Commission announced a new director will be leading its Fort Worth regional office starting in July, and Munck Wilson Mandala LLP picked up two partners who formerly practiced at their own litigation boutique.

  • June 14, 2019

    Investor 'Squeezed Out' By Stock Split, Chancery Told

    A stockholder filed a complaint in Delaware Chancery Court on Friday claiming construction material supplier Winsupply orchestrated an unfair reverse stock split in 2017 at a company it controls that "squeezed" her out as a minority shareholder at an unfair price.

  • June 14, 2019

    Indicted NY Real Estate Mogul Avoids SEC Asset Freeze

    Landlord Robert C. Morgan struck a deal with the U.S. Securities and Exchange Commission on Friday taking a potential asset freeze off the table that he said was hampering his ability to defend himself against allegations of systematic mortgage fraud.

  • June 14, 2019

    Digital Printing Co. Sued Over $1.7B Buyout's Terms

    Shareholders in Electronics for Imaging Inc. filed suit Thursday in Delaware federal court claiming the company’s planned sale to an affiliate of private equity firm Siris Capital Group is based on information that's missing key data, which shareholders need to make an informed decision on the $1.7 billion deal.

  • June 14, 2019

    BNY Mellon Must Face Pa. Class Suit Alleging Self-Dealing

    A Pennsylvania federal judge on Friday refused to throw out proposed class claims accusing the Bank of New York Mellon NA of engaging in self-dealing by moving money from a trust account into a poorly performing mutual fund operated by a corporate affiliate.

  • June 14, 2019

    Fraudsters' Kin, Cos. To Pay SEC $720K Over $3.6M Scam

    A Florida federal judge ordered relief defendants in a U.S. Securities and Exchange Commission suit against a company that bilked investors out of $3.6 million to pay a combined total of more than $720,000 in disgorgement after entering several default judgments Friday.

  • June 14, 2019

    DOI Fell Short In Tribal Investments: Fed. Claims Judge

    The U.S. Court of Federal Claims ruled Thursday that the U.S. Department of the Interior breached its duty to a group of Western Shoshone tribes by investing their money in short-term securities that didn't earn enough, as the tribes seek nearly $218 million in damages from the government.

  • June 14, 2019

    Elk Petroleum Investors Ask Court To Nix Ch. 11 Financing

    Stockholders who already filed suit over a stock-to-debt conversion prior to Elk Petroleum Inc.'s Chapter 11 are now taking aim at Elk's proposal for up to $10 million in post-petition financing, telling the Delaware bankruptcy court the financing has flawed terms and may not even be needed.

  • June 14, 2019

    Social Media Marketing Co. Director Seeks Corporate Docs

    A director and large shareholder of social media marketing firm Auviso Inc. filed suit Friday in Delaware Chancery Court demanding to inspect the corporate books and records of the company in order to value his holdings and to properly execute his duties as a member of the company’s board.

  • June 14, 2019

    Wall Street Lobbyists Slam New Jersey's Fiduciary Duty Plan

    Heavyweight trade associations in the financial services industry on Friday assailed New Jersey’s plan to hold broker-dealers to the same fiduciary duty as investment advisers, the same day Massachusetts launched its own fiduciary initiative with a call for comments.

  • June 14, 2019

    Chancery Keeps Alive Suit Over Repriced Anixa Stock Options

    Class claims that Anixa Biosciences Inc. directors down-priced stock options held by insiders in 2017 while delaying a new patent award announcement that bumped up option values survived a Chancery Court dismissal challenge late Thursday.

  • June 14, 2019

    Feds Say Centra Crypto Trio May See Attys As Shield

    Prosecutors asked a Manhattan federal judge on Friday to order three men accused of defrauding investors in their Centra Tech cryptocurrency payment platform to reveal whether they plan to argue at trial that their actions were blessed by lawyers.

  • June 14, 2019

    Convicted Ponzi Schemer To Pay $3M To Settle SEC Claims

    A Virginia federal judge on Thursday ordered an investment firm owner, who has been sentenced to spend the next 13 years in prison for running a Ponzi scheme of at least $5 million, to also shell out more than $3 million to settle U.S. Securities and Exchange Commission claims in the case.

  • June 14, 2019

    Banks Look To Deal Knockout Blow In Bond Price-Fix Suit

    Major banks accused of working together to fix bond prices for government-sponsored entities, including Fannie Mae and Freddie Mac, have urged a New York federal judge to throw out the lawsuit against them, saying investors bringing the suit cannot substantiate their "impossibly broad" conspiracy claims.

  • June 14, 2019

    Endo Fights Investor's Cert. Bid In Opioid Stock-Drop Suit

    Endo International PLC asked a Pennsylvania federal court Thursday to reject an institutional investor's class certification bid in a suit accusing the pharmaceutical company of hiding safety issues with an opioid drug, arguing the investor has little in common with the other stockholders.

  • June 14, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen Citibank, ING and a number of other banks sue Sudan and the country's central bank, a London derivatives broker file an appeal against a rival that's accused it of poaching employees and foreign exchange specialists Monex sue two former workers. Here, Law360 looks at those and other new claims in the U.K.

  • June 14, 2019

    China-Owned NY Broker-Dealer Admits To Antitrust Violation

    A broker-dealer owned by the Industrial and Commercial Bank of China Ltd. pled guilty Friday to rigging bids for American depositary receipts, agreeing to pay a $3.26 million fine after a Manhattan federal judge cited its "substantial assistance" in an ongoing antitrust investigation.

  • June 13, 2019

    Man Charged With $4.7M Sanofi Insider Trading Scheme

    A Swiss businessman has been charged in the U.S. with insider trading ahead of Sanofi SA's acquisition of Bioverativ Inc. last year in an alleged get-rich-quick scheme that netted cash and stock options worth $4.7 million, prosecutors announced on Thursday.

  • June 13, 2019

    SEC Concerned Over Maturity Of Cryptocurrency Markets

    Questions about market maturity are at the root of the U.S. Securities and Exchange Commission's concerns about cryptocurrency, not the nature of the digital currencies themselves, an SEC commissioner said Thursday during a fintech conference in New York.

  • June 13, 2019

    Shareholders Hit Kingstone Insurance With Stock-Drop Suit

    A proposed class of recent investors in Kingstone Insurance Co. filed suit in New York federal court Wednesday claiming careless internal financial controls and accounting methods led to some $5 million in unanticipated charges to the company's claims reserve.

  • June 13, 2019

    Credit Suisse Asks Appeals Court To Rein In $1B RMBS Trial

    Two Credit Suisse Group AG units on Thursday asked a New York appeals court to undo a lower court’s ruling in favor of the trustee for four pools of toxic residential mortgage-backed securities that allegedly caused over $1 billion in losses, saying it wrongly interpreted a sole remedy provision in the underlying contracts.

  • June 13, 2019

    Prosecutors Add More Execs, Claims In Abraaj Criminal Suit

    A New York federal judge unsealed an indictment Wednesday adding three Abraaj Group executives and more than a dozen new claims to a lawsuit over what prosecutors called the "largest collapse of a private equity firm in history."

Expert Analysis

  • How New IRS Rules Help Tribes Holding Special Benefit Bonds

    Author Photo

    Recent Internal Revenue Service guidance gives tribal economic development bond issuers more flexibility to alter bond terms without losing tax advantages and a greater opportunity to realize debt-service savings, say attorneys at Greenberg Traurig.

  • What To Expect When You're Expecting The End Of Libor

    Author Photo

    The significant adjustments that market participants need to make when Libor is phased out will be undertaken while replacement rates and fallback provisions remain unresolved. Now is the time to take stock of your company’s exposures and map a path forward, say Gregory Harrington and Arturo Caraballo at Arnold & Porter.

  • SEC Proposes Welcome Streamlining Of M&A Disclosures

    Author Photo

    The U.S. Securities and Exchange Commission recently proposed extensive changes to financial disclosure requirements under Regulation S-X for business acquisitions and dispositions. These changes should further simplify line-item disclosures with respect to capital formation, and reduce the time and expense associated with preparing them, say attorneys at Skadden. 

  • Opinion

    Retailers Should Stay Away From Cryptocurrency

    Author Photo

    A number of big-name retailers are reportedly poised to begin accepting bitcoin and other digital currency, but given cryptocurrency's complete and utter lack of oversight, these companies run a perilous gamut of legal, regulatory, financial, ethical and reputational dangers, says cybersecurity consultant John Reed Stark.

  • The SEC Is Cracking Down On Insider Trading By Lawyers

    Author Photo

    A recent series of actions brought by the U.S. Securities and Exchange Commission suggests that insider trading by lawyers may be on the rise. Legal departments and law firms should understand the four types of cases the SEC is pursuing in this area, says Daniel Hawke of Arnold & Porter.

  • Series

    Why I Became A Lawyer: A Fateful Phone Call

    Author Photo

    When I was growing up, my mother was always the more mild-mannered parent. But during a trans-Atlantic phone call in 1991, when I told her I wanted to go to culinary school instead of law school, she started yelling — at a volume I had never heard from her, says Jason Brookner of Gray Reed.

  • Law Firms Can Do Better With Their Mentoring Programs

    Author Photo

    There are a few practical, proactive steps law firms can take to create a mentoring program that pays dividends — instead of creating a mediocre program that both parties see as an obligation, says Kate Sheikh of Major Lindsey & Africa.

  • Opinion

    The SEC Should Let Broker-Dealers Unbundle Research Costs

    Author Photo

    The U.S. Securities and Exchange Commission has the tools to allow U.S. money managers to unbundle research from execution, and pay for research with hard dollars — a legally well-founded and common-sense policy outcome, say attorneys with Sidley Austin.

  • The Latest Developments In Criminal Cases Against Execs

    Author Photo

    This spring, there was some noteworthy news in white collar government investigations impacting executives, including the first successful prosecution in the opioid bribery scheme and the first criminal charges for failure to report under the Consumer Product Safety Act, say attorneys at Miller & Chevalier.

  • 'Rocket Docket' Justifies Its Name For 11th Straight Year

    Author Photo

    The U.S. District Court for the Eastern District of Virginia “rocket docket” is still the fastest federal civil trial court in the country despite some recent trends causing its median time to trial to grow to 13.2 months, says Robert Tata of Hunton.

  • Companies In Canada Must Prepare For Shareholder Activism

    Author Photo

    The trend of increased shareholder activism in Canada continues in 2019, with 10 public proxy contests launched since January. It is important that boards and management try to listen and understand the views of shareholders — including activists — in good faith, say Jonathan Feldman and Michael Partridge of Goodmans.

  • Managing ESG Consultants In Private Equity Transactions

    Author Photo

    Integration of environmental, social and governance factors is becoming mainstream in private equity investment. Jennie Morawetz at Kirkland provides a framework for legal counsel tasked with integrating an outside-consultant led ESG due diligence process into a client's other due diligence work streams.

  • What Securities Pros Need To Know About SEC Data Analytics

    Author Photo

    The U.S. Securities and Exchange Commission’s data analytics efforts have been repeatedly cited in SEC press releases announcing successful investigations and cases. Understanding the commission's work in this area is essential for compliance professionals at investment advisers and broker-dealers, say Charles Riely and Danielle Muniz of Jenner & Block.

  • What May Be Ahead For PE Infrastructure Investment In Asia

    Author Photo

    Despite some softening in Asian infrastructure deal volumes in 2018 and the first part of 2019, both fundraising targets and long-term investment prospects remain strong for private equity sponsors, say Scott Jalowayski and James Jackson at Gibson Dunn.

  • China's Amended Investment Law Leaves Some Details Vague

    Author Photo

    China's recently amended Foreign Investment Law promises outside investors a more stable, transparent and predictable investment environment in China. But concerns remain that the law was rushed through to ease trade tensions, and that some of its provisions are not clearly defined, says Yuanyou Yang of Duane Morris.