Securities

  • September 13, 2019

    Settlement Is A No Go In Challenge To Failed Xerox-Fuji Deal

    A New York judge refused to greenlight a proposed settlement in a case challenging Xerox Corp.'s abandoned merger with Fujifilm Holding Corp., which was once valued at $6.1 billion, saying the investors leading the suit aren't fit representatives for the proposed class.

  • September 13, 2019

    Ex-JPM Banker Jury Hear Recordings, But No Silver Platter

    A New York federal jury on Friday heard recordings of conversations between the father of former JPMorgan Chase & Co. and Perella Weinberg Partners investment banker Sean Stewart and the star cooperating witness in Stewart's retrial referring to their insider trading scheme, though there was no mention of the "silver platter" remarks that dominated the first trial.

  • September 13, 2019

    CFTC Fines Tullett Prebon $13M Over Swaps Desk Dishonesty

    New Jersey interdealer broker Tullett Prebon Americas Corp. will pay $13 million to settle two U.S. Commodity Futures Trading Commission claims, including an allegation that poorly supervised staff on a swaps desk gave false information to clients, the agency said Friday.

  • September 13, 2019

    Asset Managers, Ex-Official Charged In PDVSA Case

    Two Swiss asset managers and a former Venezuelan minister have been charged in a U.S. case alleging contractors paid bribes for business with state-owned oil company Petroleos de Venezuela SA, according to an indictment made public on Friday.

  • September 13, 2019

    Broker Ordered To Pay $12M Over Sloppy SEC Reporting

    A Utah penny stock broker that repeatedly failed to file timely and detailed reports of suspicious transactions to regulators must pay a $12 million penalty, about half the sum sought by the U.S. Securities and Exchange Commission in the bitterly fought case, a New York federal judge has ruled.

  • September 13, 2019

    Ex-COO Of Cognizant Cooperating With SEC In Indian Bribe Case

    The U.S. Securities and Exchange Commission said Friday that the former chief operating officer of Cognizant Technology Solutions Corp. will pay a $50,000 fine and cooperate with the agency in its suit over an alleged Indian bribery scheme.

  • September 13, 2019

    Robbins Geller Snags Lead In Suit Over Anheuser-Busch Debt

    Robbins Geller Rudman & Dowd LLP nabbed the role of lead counsel in New York federal court Thursday in a proposed class action accusing Anheuser-Busch of deceiving investors about the beer giant's ability to reduce its "mammoth debt level."

  • September 13, 2019

    Traders Ask 2nd Circ. To Revisit Energy Co. Antitrust Suit

    Derivatives traders that accused BP PLC and other energy companies of manipulating overseas oil prices asked the Second Circuit to revisit its decision to throw out their claims, arguing that the court made a factual mistake and that the Commodity Exchange Act allegations were wrongly dismissed.

  • September 13, 2019

    Lowey Dannenberg, Scott & Scott To Lead Spoofing Suit

    A New York federal judge on Friday appointed Lowey Dannenberg PC and Scott & Scott Attorneys at Law LLP to lead a consolidated shareholder lawsuit alleging banks including Bank of America Corp. engaged in spoofing in an effort to manipulate precious metals futures.

  • September 13, 2019

    France, Germany Move To Block Libra Cryptocurrency

    A day after the French finance minister said the Facebook-led Libra cryptocurrency should not be allowed to take root in the European Union, the government of Germany joined in, with both countries saying Libra threatens the inherent sovereignty of nation-states.

  • September 13, 2019

    AbbVie Investors Ask To Drop Ill. Humira Kickback Suit

    AbbVie Inc. shareholders have asked an Illinois federal court to dismiss their lawsuit claiming the pharmaceutical giant misled them over a stock buyback program and an alleged kickback scheme involving the popular drug Humira.

  • September 13, 2019

    Frayed Family IP Royalty Biz Gets Chancery Appraisal Look

    A small group of advisers has taken advantage of frayed family relations to gain control of a New Jersey-based venture that distributes royalty payments for patents, according to a stock appraisal petition filed by one of the family members in Delaware Chancery Court on Thursday.

  • September 13, 2019

    Chicago Merc Says 2 Cos. Clearly Used TM Post-License

    The Chicago Mercantile Exchange has told an Illinois federal court that two former licensees of its risk assessment software trademarks admitted infringement by acknowledging they used the mark after their license agreements with the CME terminated.

  • September 13, 2019

    Investors Pull Plug On BNY Mellon RMBS Trustee Suit

    Investors including funds of BlackRock Inc. and other asset managers have dropped derivative claims seeking to recover billions of dollars in alleged damages from the Bank of New York Mellon on behalf of more than 200 crisis-era residential mortgage-backed securities trusts that it allegedly mismanaged as their trustee, according to New York federal court filings.

  • September 13, 2019

    Centra Tech Can't Dodge Default Or Arbitrate Investor Suit

    A Florida federal judge said Thursday that shuttered cryptocurrency platform Centra Tech Inc. will not be able to arbitrate or set aside a default judgment in a securities suit over its allegedly fraudulent initial coin offering.

  • September 13, 2019

    Butler Snow Can't Push Timber Scam Claims To Arbitration

    Butler Snow LLP and its business development subsidiary can't head to arbitration to deal with accusations that they helped a now-imprisoned client pull off a massive timber business Ponzi scam, a Mississippi judge has ruled.

  • September 13, 2019

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

    The last week has seen a Russian state-owned bank drag the chairman of a former FIFA World Cup contractor to court, property developers sue Barclays over a swaps dispute and Kuwait's public pension hit its former director with a commercial fraud suit. Here, Law360 looks at those and other new claims in the U.K.

  • September 13, 2019

    Goldman Directors Say Fund Can't Tie Them To 1MDB Fraud

    Current and former directors of Goldman Sachs on Thursday said an amended shareholder derivative suit filed over the bank's involvement in the billion-dollar 1Malaysia Development Berhad fraud scandal is no better than its predecessor.

  • September 13, 2019

    LSE Snubs £30B Bid From Hong Kong Stock Exchange

    London Stock Exchange Group on Friday rejected a £29.6 billion ($36.86 billion) takeover offer from the Hong Kong Stock Exchange, saying there are “fundamental flaws” with the bid that leave no room for further discussions. 

  • September 12, 2019

    Ex-JPMorgan Banker Was Inside Info Source, Jury Hears

    Jurors in the retrial of Sean Stewart finally heard Thursday from the key cooperating witness in the insider trading case, who said he traded stock options based on inside information about health care company mergers — information the father of the former JPMorgan Chase & Co. investment banker said came from his son.

  • September 12, 2019

    SEC's Stance On No-Action Letters Raises Uncertainty

    The U.S. Securities and Exchange Commission's policy that it may respond orally to no-action requests from companies seeking to exclude shareholder proposals from proxy statements — or decline to take a view — is creating widespread confusion, with some arguing it could hurt shareholders and others predicting a lack of precedent to guide companies.

  • September 12, 2019

    Futures Firm Fined After Losing $1M To Phishing Email

    After cyber criminals breached Phillip Capital Inc.’s email systems, accessed customer information and withdrew $1 million in customer funds, the U.S. Commodity Futures Trading Commission announced a settlement Thursday with the registered futures commission merchant, requiring it to pay $1 million in restitution and a $500,000 penalty.

  • September 12, 2019

    CFTC Sanctions Ex-Compliance Chief For Lying To Regulator

    A former chief compliance officer for a commodity pool was ordered to pay $150,000 by the U.S. Commodity Futures Trading Commission on Thursday for allegedly participating in a fraudulent trading scheme and lying to the National Futures Association when it investigated his firm.

  • September 12, 2019

    DOJ Mulls New Guidance On Corporate Poverty Claims

    The U.S. Department of Justice may add more guidance for prosecutors on what to do when a company claims it can’t survive a big fine, a DOJ official said Thursday, suggesting the potential for yet another policy aimed at decreasing uncertainty for companies facing an enforcement action.

  • September 12, 2019

    Energy Finance Atty Joins Ex-Pillsbury Partners At Bracewell

    Bracewell LLP has snagged yet another partner from Pillsbury Winthrop Shaw Pittman LLP with the addition of veteran energy finance attorney Todd W. Eckland to its New York office, the firm announced Thursday.

Expert Analysis

  • To Defer Or Not To Defer: Kisor's Impact On Tax Controversies

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    Three recent federal tax cases show how the U.S. Supreme Court's June decision in Kisor v. Wilkie, substantially restricting agency deference, is affecting interpretation of the many regulations and guidance issued post-tax reform, say Andrew Roberson and Kevin Spencer at McDermott.

  • SEC's Shareholder Proposal Change May Muddle 2020 Proxies

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    Recent changes to the U.S. Securities and Exchange Commission staff's role as arbiter of shareholder proposals only add more complexity to the Rule 14a-8 process, which was already fraught with uncertainty for filers preparing to navigate the upcoming proxy season, say attorneys at Davis Polk.

  • The Factors Courts Consider In Deposition Location Disputes

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    In the absence of a federal rule governing deposition location, federal courts are frequently called on to resolve objections to out-of-state deposition notices. Recent decisions reveal what information is crucial to courts in making the determination, says Kevin O’Brien at Porter Wright.

  • High Court Snub Raises Foreign Issuer Economic Concerns

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    Foreign companies that issue securities stateside may face increased litigation risk in the wake of the U.S. Supreme Court’s denial of certiorari in Stoyas v. Toshiba, increasing the importance of economic considerations, such as price impact, market efficiency and aggregate exposure, say principals at Cornerstone Research.

  • What To Consider Before Filing For A Rule 57 Speedy Hearing

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    Federal Rule of Civil Procedure 57 and its state counterparts provide a method for expediting claims for declaratory judgment that warrants closer attention than it has historically received from litigants and courts, say attorneys at Gibson Dunn.

  • Proposed Rules Convey Shift In SEC's Disclosure Approach

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    Proposed changes to the way companies report risk factors and other information to the U.S. Securities and Exchange Commission under Regulation S-K give companies greater authority to decide whether requested information is significant, demonstrating the regulator's move toward principles-based disclosure requirements, say Robert Loesch and Daniel Schiau at Tucker Ellis.

  • Opinion

    Stakeholders Matter By Definition In Corporate Governance

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    The Business Roundtable's new corporate governance philosophy may seem like a novel paradigm asking companies to serve stakeholders at the expense of their shareholders, but successful companies thrive and earn long-term returns for their shareholders precisely because of these stakeholder investments, says Alex Dimitrief, former general counsel of GE.

  • Series

    Why I Became A Lawyer: Expanding The Meaning Of Diversity

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    My conservative, Catholic parents never skipped a beat when accepting that I was gay, and encouraged me to follow my dreams wherever they might lead. But I did not expect they would lead to the law, until I met an inspiring college professor, says James Holmes of Clyde & Co.

  • New Considerations For Confidentiality In SEC Filings

    Excerpt from Lexis Practice Advisor
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    The U.S. Supreme Court's interpretation of a Freedom of Information Act exemption in Food Marketing Institute v. Argus Leader Media will have an immediate effect on how the U.S. Securities and Exchange Commission processes requests for confidential treatment of information in publicly filed exhibits, says Richard Baltz at Arnold & Porter.

  • Fiduciary Lessons From DOL's Win In Employee Stock Case

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    In Acosta v. Vinoskey, a Virginia federal court ruled in favor of the U.S. Department of Labor's argument that an employee stock ownership plan trustee breached its fiduciary duties by overpaying for company stock, highlighting for fiduciaries and their advisers several due diligence considerations, say attorneys at Holland & Knight.

  • SEC Framework Complicates Digital Asset Secondary Trading

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    The U.S. Securities and Exchange Commission's recently released framework for determining when digital assets should be considered securities clashes with traditional investment contract analysis when applied to secondary market transactions, with devastating consequences for trading intermediaries, say Clara Krivoy and Edgard Alvarez at Brown Rudnick.

  • 7th Circ. Topples Precedent In Limiting FTC's Authority

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    The Seventh Circuit's decision in Federal Trade Commission v. Credit Bureau Center — rejecting judicial expansion of federal regulators' enforcement authority — will force federal courts to reckon with the U.S. Supreme Court's Meghrig and Kokesh opinions before seeking monetary awards in civil enforcement actions, say Ryan O’Quinn and Elan Gershoni at DLA Piper.

  • How The Wayback Machine Can Strengthen Your Case

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    The Wayback Machine, which archives screenshots of websites at particular points in time, can be an invaluable tool in litigation, but attorneys need to follow a few simple steps early in the discovery process to increase the odds of being able to use materials obtained from the archive, says Timothy Freeman of Tanenbaum Keale.

  • Opinion

    Mutual Funds Should Stay Out Of Shareholder Litigation

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    A forthcoming article in the University of Chicago Law Review argues that mutual funds should participate more aggressively in shareholder litigation to enhance fund returns, but ignores several practical realities, including that the opportunity costs of pursuing litigation are not always in the best interest of fund shareholders, say Amy Roy and Robert Skinner at Ropes & Gray.

  • Volcker Revisions Overhaul Proprietary Trading, Compliance

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    The Federal Deposit Insurance Corporation and U.S. Office of the Comptroller of the Currency's finalized Volcker Rule resolves the most controversial issues it previously proposed for banks by removing the so-called accounting prong for vetting trades, and by narrowing its application of compliance program requirements to institutions with the largest trading operations, say attorneys at Cleary.