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Securities

  • June 21, 2018

    Big Banks Could Keep Lending In Big Recession, Fed Says

    The latest round of supervisory stress testing shows the nation’s nearly three dozen biggest banks would see significant losses during a severe global recession but would be able to keep credit flowing to households and businesses, the Federal Reserve said Thursday.

  • June 21, 2018

    Merrill Lynch Lost-Stock Row May Not Be Revived In Court

    A California federal judge on Thursday seemed likely to toss a proposed class action alleging Merrill Lynch breached its fiduciary duty to its clients by losing their shares of various stocks, saying the named plaintiff had already arbitrated the same issue.

  • June 21, 2018

    Liberty Withdraws $1.16B Offer For 40% Of IHeartMedia

    Liberty Media has taken a much talked-about $1.16 billion offer for a 40 percent slice of iHeartMedia off the table, according to a Thursday court filing, leaving the bankrupt radio giant with no outside funding source as it seeks to cut $10 billion from its swollen balance sheet.

  • June 21, 2018

    LendingClub Says Del. Investor Suit Not Ready For Prime Time

    LendingClub Corp. asked the Delaware Chancery Court on Wednesday to dismiss or stay a stockholder derivative suit against the company pending resolution of other investor litigation, including a proposed $125 million class settlement in California.

  • June 21, 2018

    Narrow High Court Ruling In Lucia Raises Questions For SEC

    The U.S. Supreme Court’s “narrow” ruling that U.S. Securities and Exchange Commission administrative law judges are inferior officers subject to the appointments clause of the Constitution leaves open the question of how the SEC — and other federal agencies that use ALJs — will resolve cases handled by improperly appointed judges, legal experts said Thursday.

  • June 21, 2018

    HCR ManorCare Presents New Ch. 11 Plan with Better Deal

    Assisted living company HCR ManorCare Inc. returned to Delaware bankruptcy court Thursday to receive approval for an updated Chapter 11 plan that will increase recoveries for equity holders if the acquirer of the debtor’s assets closes a merger of its own.

  • June 21, 2018

    Breitling 'Frack Master' Arrested On $62M Fraud Charges

    The self-proclaimed “Frack Master,” who is the CEO of Breitling Energy Corp., has been arrested on charges he defrauded investors out of $62 million to fund a lavish lifestyle filled with luxury vehicles, private jets and expensive jewelry, according to a statement Thursday from U.S. Attorney Erin Nealy Cox.

  • June 21, 2018

    Feds Oppose Accused Cryptocurrency Fraudster's Travel Bid

    The federal government urged a New York federal judge Thursday to deny a request to travel to Ukraine from a Brooklyn businessman charged with securities fraud over two initial coin offerings allegedly marketed through his companies REcoin and Diamond Reserve Club.

  • June 21, 2018

    $17M Settlement Gets OK In Auction Co. Shareholder Suit

    A D.C. federal judge on Thursday granted preliminary approval of a $17 million settlement between online auctioneer Liquidity Services Inc. and shareholders who allege it misled them about its retail division’s growth.

  • June 21, 2018

    DOL's Fiduciary Rule's Demise Made Official By 5th Circ.

    The Fifth Circuit on Thursday closed the book on the U.S. Department of Labor’s controversial 2016 fiduciary rule, which required retirement advisers to act in the best interest of clients, issuing a mandate that officially vacates the rule three months after a divided panel invalidated it.  

  • June 21, 2018

    SEC Says Suit Alleging Microcap Schemes Not Time-Barred

    The U.S. Securities and Exchange Commission asked a Florida federal judge on Wednesday to strike the affirmative defenses of a securities lawyer accused of running a pair of microcap schemes with undisclosed “blank check” companies, rebuffing her assertions that the SEC’s claims are time-barred.

  • June 21, 2018

    Ex-State Street Exec Keeps Mum As Fraud Trial Nears End

    A former executive at State Street Corp. decided Thursday against taking the stand in his Boston fraud trial, resting his defense against charges that he directed colleagues to slip hidden fees into multibillion-dollar trades for overseas clients and setting up a final courtroom showdown next week.

  • June 21, 2018

    SEC Accuses Pa. Man Of Stealing $1.3M From Investors

    The U.S. Securities and Exchange Commission on Thursday accused a Pennsylvania insurance agent of running a $1.27 million Ponzi scheme, using funds taken from investors to pay his own expenses instead of putting them in an index fund as he’d promised.

  • June 21, 2018

    Trial Proved Ex-American Realty Exec's Fraud, 2nd Circ. Told

    Prosecutors urged the Second Circuit to uphold the securities fraud conviction of former American Realty Capital Properties Inc. CFO Brian Block on Wednesday, saying a jury was free to reject his explanation of a $13 million tweak to financial statements.

  • June 21, 2018

    Creditors Object To $750M Lehman-Credit Suisse Deal

    Two hedge funds threw a wrench into a massive proposed derivatives settlement between Lehman Brothers Holdings Inc. and Credit Suisse AG with an objection filed on Wednesday, sharply questioning Lehman's whiplash-inducing turn from demanding $75 million to agreeing to pay $750 million in the "black box" deal.

  • June 21, 2018

    Starbucks Again Exits Investor Suit Over EU Taxes

    Starbucks Corp. escaped a proposed class action from shareholders who sued the coffee giant over a European Commission probe into alleged tax-dodging corporate activity, with a Washington federal judge finding Wednesday that the amended complaint once again failed to show the company's directors acted improperly.

  • June 21, 2018

    Reg A+ Graded 'Incomplete' At Three-Year Mark

    Three years since the U.S. Securities and Exchange Commission approved revamped rules for Regulation A offerings, following a congressional mandate to revive a once-dormant capital-raising tool, dealmakers say these miniature-style initial public offerings remain a work in progress.

  • June 21, 2018

    Administrative Fees For $2.3B In Forex Deals Top $9.5M

    The cost of administering $2.3 billion worth of settlements with 15 banks accused of rigging foreign exchange rates reached $9.5 million on Wednesday, when a New York federal judge consented to investors’ request to dole out an additional $3 million from the settlement fund.

  • June 21, 2018

    Andeavor Investors Sue Over Disclosures In Marathon Deal

    A group of Andeavor shareholders has filed a lawsuit in Texas federal court to stop the planned $23.3 billion purchase of the company by Marathon Petroleum Corp., arguing filings with the U.S. Securities and Exchange Commission are incomplete and misleading, meaning shareholders can't make an informed vote on the deal.

  • June 21, 2018

    Labaton Sucharow Can’t Get Judge Recused In $75M Fee Row

    A Massachusetts federal judge on Thursday said he would not recuse himself after three firms, including Labaton Sucharow LLP, accused of misconduct in an ongoing $75 million attorneys’ fee fight asked him to step aside, pointing to potential conflicts and “inflammatory” statements made by the judge.

Expert Analysis

  • Checkbook IRAs And Digital Assets: A Bet Against The House

    Seth Pierce

    Since a 2014 tax ruling that permits holding digital currency in tax-deferred retirement accounts, investment companies have sprung up encouraging people to roll their safer, more traditional retirement investments into cryptocurrencies. But seemingly effortless investment vehicles of dubious legality may lead to loss of tax deferral and penalties for early withdrawal, says Seth Pierce at Mitchell Silberberg & Knupp LLC.

  • Mid-2018 Sanctions Review: A Turbulent Year So Far

    Ama Adams

    No superlative could aptly describe the magnitude of U.S. sanctions developments through the first six months of 2018. The pace of change has been so intense and complex that, understandably, even the most sophisticated international companies and investors have been challenged to respond to policy and regulatory developments, say attorneys with Ropes & Gray LLP.

  • Opinion

    BigLaw's Associate Salary Model Is A Relic Of A Bygone Era

    William Brewer

    Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.

  • Opinion

    Nasdaq Blockchain Test Shows Regulators Need To Catch Up

    Harvey Kesner

    A Nasdaq executive recently said that the exchange is “all in” on using blockchain and that it is actively embracing the technology. But our immutable regulatory structure might very well prevent even Nasdaq from its goals, says Harvey Kesner of Sichenzia Ross Ference Kesner LLP.

  • When An Activist Designee Joins Your Board

    Melissa Sawyer

    It has become more common for companies approached by credible activists to ultimately provide the activist with a board seat. The extent to which that relationship can be constructive depends, to some degree, on whether the company used a scorched-earth approach to defend itself against the activist at the outset, say Melissa Sawyer and Marc Treviño of Sullivan & Cromwell LLP.

  • China Agritech: More Than Meets The Eye

    Erica Rutner

    There is no doubt that the U.S. Supreme Court’s decision in China Agritech v. Resh squarely precludes the viability of untimely successive class actions. But what impact might it have on the viability of timely filed successive class actions? Erica Rutner of Lash & Goldberg LLP explores the question.

  • Removing 'Control' From FINRA Quantitative Unsuitability

    Thomas Potter

    The Financial Industry Regulatory Authority recently proposed to remove a broker’s “control” of a securities account as an element that must be proven to demonstrate a “quantitative suitability” violation under Rule 2111. This proposal would return the suitability rules to their roots, says Thomas Potter of Burr & Forman LLP.

  • #MeToo At Law Firms And What We Can Do About It

    Beth Schroeder.JPG

    While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.

  • Managing Uncertainty In The SEC Fair Fund Process: Part 2

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    To cope with the uncertainty inherent in the U.S. Securities and Exchange Commission's complicated fair fund distribution process, respondents can take six actions that will reduce the organizational burden and ultimately shave time, maybe even years, off the distribution timeline, says Alan Friedman of Charles River Associates.

  • New Clarity On SEC’s Approach To Crypto Regulation

    Peter Altman

    Remarks made last week by a U.S. Securities and Exchange Commission official ended long-standing speculation over whether the SEC would assert jurisdiction over ether and bitcoin. The remarks also leave no doubt that the SEC aims to remain active in the digital currency markets, focusing on initial coin offerings, say attorneys with Akin Gump Strauss Hauer & Feld LLP.