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Securities

  • March 21, 2019

    Omnicare's $20M Settlement With Investors Gets Initial OK

    A Kentucky federal court granted preliminary approval on Thursday to a settlement in which Omnicare Inc. agreed to pay $20 million to resolve a 13-year-old securities suit that at one point made its way to the U.S. Supreme Court.

  • March 21, 2019

    $240M Wells Fargo-Investor Deal Missing Key Factor: Judge

    A California federal judge on Wednesday told investors he needed more information to evaluate their proposed $240 million settlement with Wells Fargo & Co. executives over how the bank's fabricated accounts scandal affected its reputation, finances and stock prices.

  • March 21, 2019

    17 Alleged Misstatements Cut From Dr. Reddy’s Investor Suit

    A New Jersey federal judge told a pension fund on Wednesday that it only has standing to pursue securities claims against Dr. Reddy's for five alleged misstatements it made immediately prior to the fund's purchase of the pharmaceutical company's stock.

  • March 21, 2019

    Investor Wants Civitas Records To Probe $1.4B Sale

    A pension fund that invested in Civitas Solutions filed a complaint in Delaware Chancery Court on Thursday seeking access to records related to the health company’s $1.4 billion sale, saying the deal was seemingly inadequate and served as a needed quick cash-out for the company’s controlling private equity fund.

  • March 21, 2019

    Potential Accounting Flaws Don't Faze IPO Market

    More companies are going public with admitted flaws in their internal controls — essentially yellow flags that could require potentially embarrassing corrections to financial statements — but such warnings don’t appear to be scaring off investors.

  • March 21, 2019

    Trader-Pastor Gets 5 Years For Hack-Based Insider Trading

    A former hedge fund manager turned Slavic Baptist pastor on Thursday was sentenced to five years in prison, following his conviction at trial for a purported $30 million scheme to trade on nonpublic information gleaned from hacked, unpublished press releases.

  • March 21, 2019

    Two Advisers 'Gambled Away' $11M On High-Risk Investments

    Two Massachusetts investment advisers and their firm "gambled away" more than $11 million of their clients' money on high-risk oil and gas investments, according to state regulatory authorities who launched an enforcement action against the men and their company Wednesday.

  • March 21, 2019

    Record £28M Fine For UBS Puts Compliance Staff On Guard

    This week’s record £27.6 million ($34.8 million) fine against UBS for misreporting 136 million transactions has underlined the need for banking compliance teams to focus on their trading desks if they hope to avoid falling foul of Europe’s formidable securities rules.

  • March 21, 2019

    Victims Decry $38M Fraud As Fund Manager Gets 14.5 Years

    A Boston-based fund manager who pled guilty to a scheme the government says cost investors $38 million was sentenced to about 14 years in prison Thursday as his victims wept and vented their anger during an emotional hearing in federal court.

  • March 21, 2019

    IRS Suspends 1957 Guidance Requiring Income In Spinoffs

    In a rare move, the Internal Revenue Service on Thursday suspended two 1957 revenue rulings that restricted businesses’ ability to undertake tax-free distributions of stock or securities in light of a recently launched study focused on research and development projects.

  • March 21, 2019

    FDIC's $695M Mortgage-Backed Securities Suit Tossed

    A New York federal judge dumped the Federal Deposit Insurance Corp.'s $695 million residential mortgage-backed securities suit against three banks Wednesday, finding for the second time that the agency lacked standing to bring claims of improper conduct against trustees of the bundled mortgages.

  • March 21, 2019

    Investor Wants Medley Capital Merger Vote To Proceed

    A Medley Capital Corp. investor filed a proposed class action Wednesday seeking to have the Delaware Chancery Court bar further delay of a stockholder vote on a proposed merger with Sierra Income Corp., even though the court ruled last week a vote can't be held until more information is disclosed.

  • March 21, 2019

    Firms Contest Class Counsel Bid In Trevena Investor Suit

    Citing alleged misstatements made by an investor represented by rival attorneys, Block & Leviton LLP and Kaufman Coren & Ress LLP have urged a Pennsylvania federal judge to name them class counsel in litigation accusing Trevena Inc. of artificially inflating its share value.

  • March 21, 2019

    Kraft Execs Knew Stock Due For A Fall, ERISA Suit Claims

    Kraft Heinz Food Co. executives knew the company’s stock was overvalued before revelations of a $15.4 billion writedown and a U.S. Securities and Exchange Commission probe caused the stock to plummet, retirement plan participants have claimed in an Employee Retirement Income Securities Act suit.

  • March 21, 2019

    Crypto Bank CEO Faces 5 Years After Copping To $4M Fraud

    Federal prosecutors have agreed to seek a five-year prison sentence for the CEO of now-shuttered AriseBank in exchange for his guilty plea in Texas federal court Wednesday to fraudulently raising $4.25 million through an unregistered initial coin offering for the bank’s proprietary digital currency, AriseCoin.

  • March 21, 2019

    New Testimony Can't Save Suit Against Madoff Associate

    A New York federal judge has shot down another attempt by Bernie Madoff’s former investors to go after his associate Jeffry Picower, ruling that new testimony in their latest complaint is not enough to get around a 2011 injunction against duplicating claims related to the Ponzi scheme.

  • March 20, 2019

    SEC Trims Company Disclosure Requirements

    The U.S. Securities and Exchange Commission on Wednesday voted to pare and streamline certain disclosure requirements of public companies, marking the agency's latest effort to prune its regulatory tree after decades of adding branches.

  • March 20, 2019

    Tesla Investor Wants Records On Handling Of Musk's Tweets

    An investor filed a complaint Wednesday in Delaware Chancery Court seeking access to records detailing Tesla Inc.’s handling of CEO Elon Musk's "false and misleading statements" including his Twitter posts.

  • March 20, 2019

    Ex-CPA In Calif. Cops To $29.3M Ponzi Scheme

    The U.S. Securities and Exchange Commission and California federal prosecutors say a former certified public accountant has admitted to orchestrating a $29.3 million Ponzi scheme over the past decade while operating as an unregistered investment adviser for her clients.

  • March 20, 2019

    What’s In A Judgeship? More Than Meets The Eye

    Figuring out what constitutes a manageable workload for the nation’s district judges is no simple task. Getting the judiciary the resources it needs is even harder.

Expert Analysis

  • Lenders Score Major High Court Victory In Foreclosure Case

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    The U.S. Supreme Court's unanimous ruling on Wednesday in Obduskey v. McCarthy & Holthus LLP removes nearly all activities taken by creditors seeking nonjudicial foreclosure of liens and mortgages from the ambit of the Fair Debt Collection Practices Act, says John Baxter of Nelson Mullins Riley & Scarborough LLP.

  • How The SEC Eased In-Person Director Voting Rules

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    Last month, U.S. Securities and Exchange Commission staff issued a no-action letter permitting fund and company boards of directors to meet and take certain actions by telephone or video conference when directors cannot meet in person. But the validity of contracts entered into in such circumstances is unclear, say attorneys with Proskauer Rose LLP.

  • Tech Trends From SXSW Pose Unique Questions For Lawyers

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    These days, a popular theme in media is that lawyers' jobs will be taken by robots. However, based on the tech issues discussed at the South by Southwest technology conference in Austin, Texas, last month, robots may in fact need lawyers, says Nick Abrahams of Norton Rose Fulbright.

  • Liability For CEO Misconduct Expands After #MeToo

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    The Nevada Gaming Commission's recent $20 million fine against Wynn Resorts for failing to act after reports of its former CEO's alleged sexual misconduct demonstrates how #MeToo has altered the classic economic assessment for harassment claims, says Dove Burns of Obermayer Rebmann Maxwell & Hippel LLP.

  • In Bar Admissions Process, It's Candor Or Bust

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    You passed the bar exam and are ready for the character and fitness committee interview. Time to think about how to discuss that minor incident in college, that misdemeanor in high school or that mental health issue that you have totally under control, says Richard Maltz of Frankfurt Kurnit Klein & Selz PC.

  • High Noon For Cryptocurrency Offerings In Texas?

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    A consent order entered by Texas securities regulators last month illustrates how Texas’ willingness to police crypto offerings — even when few state residents may have participated — will continue to complicate the regulatory environment, say Philip Bezanson and David Springer at Bracewell LLP.

  • The Post-Cyan­ Spike In State Securities Act Filings

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    One year ago, the U.S. Supreme Court, in Cyan Inc. v. Beaver County Employees Retirement Fund, upheld concurrent state and federal jurisdiction over Securities Act class actions. Predictions that plaintiffs would inundate state courts with such claims now appear to be coming true, say James Goldfarb and Gaurav Talwar of Murphy & McGonigle PC.

  • Series

    Judging A Book: Bashant Reviews 'Doing Justice'

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    My initial reaction to "Doing Justice" was that author Preet Bharara may have bitten off more than he could chew — an accusation leveled against him when he served as U.S. attorney for the Southern District of New York — but I found the book full of helpful gems, says U.S. District Judge Cynthia Bashant of the Southern District of California.

  • 4-Person SEC May Shift Away From Corporate Penalties

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    A Democratic member's recent departure from the U.S. Securities and Exchange Commission likely means that for the foreseeable future corporate penalties will not be imposed in cases where a company did not obtain any benefit from its misconduct, say attorneys at Debevoise & Plimpton LLP.

  • Firms Can Leverage Communications When Economy Is Slow

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    Though most experts believe that an imminent recession is unlikely, slowdown fears are increasing. Now is the time for firms to consider how to best leverage their communications and marketing teams to lessen impacts from a potential economic slowdown, says Tom Orewyler of Tom Orewyler Communications LLC.