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Securities

  • July 17, 2018

    Intervenors Accused Of 'Hijacking' EB-5 Fraud Estate Sale

    The receiver overseeing the estate related to the settlement of an EB-5 visa fraud scheme urged a California federal judge Tuesday to deny an attempt by intervenors in the case to sell one of the estate’s health care facilities, calling it an effort to “hijack” the proceedings.

  • July 17, 2018

    Judge Won't Ax Indictments In KPMG Revolving-Door Racket

    A New York federal judge refused Tuesday to dismiss the wire fraud and conspiracy counts in an indictment against two former members of the Public Company Accounting Oversight Board and three former top KPMG executives, finding the government’s allegations to be sufficient at this time.

  • July 17, 2018

    Investor Claims LaCroix Maker Hid Bogus Data, Harrassment

    National Beverage Corp., the manufacturer of LaCroix sparkling water and other brands, was hit with a putative stock-drop class action in Florida federal court on Tuesday relating to the firm's alleged hyping of bogus analytics numbers and the sexual harassment allegations against its top executive.

  • July 17, 2018

    China Trade War Leads Cos. To Disclose Tariff-Related Risks

    More companies are likely to disclose risks to their business stemming from U.S. tariffs on Chinese goods and vice versa amid the escalating trade war between the two countries, attorneys say, in an effort to mitigate vulnerability to investor lawsuits should their stocks plunge.

  • July 17, 2018

    Health Tech Co. To Pay $19M In Securities Class Action

    Quality Systems Inc. agreed to pay $19 million to settle a proposed securities class action alleging the health technology company misled investors about its projected sales and financial performance in 2011 and 2012, ending the suit Monday after five years of fighting in California federal court.

  • July 17, 2018

    Chinese Tutoring Co. Inflated Revenue Numbers, Suit Says

    An investor hit tutoring service TAL Education Group with a proposed class action Tuesday in New York federal court alleging that overstated profits and profit margins artificially inflated stock prices this year, until word spread about the alleged fraud and the stock price dropped nearly 10 percent.

  • July 17, 2018

    Santander Can't Dodge Tax Shelter Trial, Judge Says

    A Massachusetts federal judge ruled Tuesday that Santander Group cannot escape the fallout of a First Circuit opinion finding that the company formerly known as Sovereign Bancorp. appears to have operated a trust with the makings of a tax shelter in the U.K. from 2003 to 2005.

  • July 17, 2018

    BGC Financial Pays $1.25M To End SEC Record-Keeping Fight

    The U.S. Securities and Exchange Commission said in an order Tuesday that New York-based BGC Financial LP had agreed to pay $1.25 million to settle the agency’s claims that it deleted audio files sought by the SEC and failed to maintain accurate records for compensation, travel and entertainment expenses.

  • July 17, 2018

    Tippee Cops To Trading On Ex-BofA Consultant's Insider Info

    A Florida man on Tuesday copped to insider-trading charges before a Manhattan federal judge, admitting to taking roughly $2 million of profit on trades tied to tips from former Bank of America technology consultant Daniel Rivas.

  • July 17, 2018

    M&T, HCB $3.7B Deal Wasn't Vetted Properly, 3rd Circ. Told

    Investors in the former Hudson City Bancorp Inc. urged the Third Circuit on Tuesday to revive their proposed class action alleging the bank and M&T Bank Corp. hid regulatory problems that delayed their $3.7 billion merger, saying the bank’s directors failed to perform adequate due diligence prior to the deal.

  • July 17, 2018

    9th Circ. Revives Securities Suit Over Toshiba Accounting

    The Ninth Circuit on Tuesday reversed and remanded a California federal court ruling tossing a proposed investor class action alleging securities law violations based on Toshiba Corp.’s fraudulent accounting practices.

  • July 17, 2018

    Powell Defends Fed's Handling Of Big Bank Stress Tests

    Federal Reserve Chairman Jerome Powell told senators Tuesday that the central bank remains committed to using stress tests as part of its supervisory toolkit for the nation’s biggest banks, pushing back on criticism that the Fed is trying to weaken testing on his watch.

  • July 17, 2018

    Ex-Katten Atty Says Prison Unnecessary For Shkreli Fraud

    A former Katten Muchin Rosenman LLP attorney is seeking to evade prison time after a federal jury in Brooklyn convicted him on conspiracy charges last year, pushing more than 180 letters on the court Monday as a testament of his character and arguing that the losses suffered and his role in the conspiracy were minor.

  • July 17, 2018

    Lilis Energy Sues Another Ex-Exec To Get Back Compensation

    Lilis Energy Inc. filed a suit in the Supreme Court of New York on Tuesday to claw back benefits from its former chief operating officer, alleging that the executive purposefully hid from the company his personal financial interest in two of its vendors.

  • July 17, 2018

    5th Circ. Finds FHFA Structure Unconstitutional

    The Fifth Circuit ruled Monday that the Federal Housing Finance Agency, created in the wake of the 2008 financial crisis to oversee the government-sponsored mortgage entities Fannie Mae and Freddie Mac, is unconstitutionally structured because its oversight by a single director who is insulated from the president violates the Constitution’s separation of powers clause.

  • July 17, 2018

    Late Mistrial Bars Retrial, Former Corporate Advisers Argue

    A trio of former corporate executives at the proxy solicitation firm Georgeson LLC charged with bribing a shareholder representative for voting data told a Massachusetts federal judge Tuesday that double jeopardy prevents them from being tried again after the government refused to finish their first trial with a shorthanded jury the day before closing arguments.

  • July 17, 2018

    Tug Co. CEO Blasts New Del. Chancery Suit, Ouster Bid

    The founder and CEO of a Seattle-based, multicoast tug and marine service company who was sued in Delaware’s Chancery Court and targeted for ouster by a top investor earlier this month accused the dissident group of forum shopping in a court document made public Tuesday.

  • July 17, 2018

    Twitter Investors Sue In Del. Over Bogus Growth Data

    A putative Twitter Inc. investor class is seeking damages from the company's top officers and directors for losses allegedly caused by lies about negative performance data for about half of 2015, according to a Delaware Chancery Court complaint unsealed on Tuesday.

  • July 17, 2018

    Hemp-Focused PE Firm Faces Leadership Tussle In Chancery

    Two managers of a private equity firm focused on industrial hemp investments filed suit late Monday in Delaware Chancery Court saying a third manager removed them through an improper written consent action, and then appointed two new managers to replace them.

  • July 17, 2018

    Santander Investors Reach $9.5M Deal In Accounting Row

    A vehicle financing unit of Santander Bank has agreed to a $9.5 million settlement with investors ending allegations it flouted accounting regulations and kept its stock trading at artificially inflated levels, according to documents filed in Texas federal court on Monday.

Expert Analysis

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Advertising, Pay-To-Play Lessons From New SEC Settlements

    Jessica Forbes

    The U.S. Securities and Exchange Commission last week settled eight enforcement actions for violations of the advertising and pay-to-play provisions of the Investment Advisers Act. Attorneys with Fried Frank Harris Shriver & Jacobson LLP discuss takeaways for investment advisers.

  • California Decision Distorts Bank Liability Under FIRREA

    Ben Singer

    A California federal judge recently concluded in United States v. Bogucki that any action by a bank employee that incurs potential liability for the bank triggers the Financial Institutions Reform, Recovery, and Enforcement Act. This renders unwieldy the scope of banks’ potential FIRREA exposure, says Ben Singer of O'Melveny & Myers LLP.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • You're Hired! What Kavanaugh’s Nomination Means For SEC

    Brian Rubin

    A newly constituted U.S. Supreme Court, with the added intellectual firepower of Judge Brett Kavanaugh, could ultimately strike down many U.S. Securities and Exchange Commission rules and overturn enforcement actions through the dismantling of the Chevron doctrine, say attorneys with Eversheds Sutherland.

  • Recent Trends In Structuring CRE-CLOs

    Jason Schwartz

    Commercial real estate collateralized loan obligations are growing in popularity as a way to securitize mortgage loans. With careful tax planning, CRE-CLO structures can be powerful tools for securitizing pools of assets that are inappropriate for acquisition by a real estate mortgage investment conduit, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.

  • Claims Trading Lessons From Delaware Bankruptcy Court

    Michael Rupe

    The Delaware bankruptcy court's opinion last month in Woodbridge serves as a cautionary reminder that policy preferences for free claim assignability do not serve to nullify properly drafted anti-assignment provisions, say attorneys with King & Spalding LLP.

  • Series

    Judging A Book: Hood Reviews 'Lawyering From The Inside Out'

    Judge Denise Hood

    Law professor Nathalie Martin's new book, "Lawyering From the Inside Out: Learning Professional Development Through Mindfulness and Emotional Intelligence," can be of value to any lawyer aiming to achieve greater productivity, relieve the stress of the legal profession and focus on goals, says U.S. District Chief Judge Denise Page Hood of the Eastern District of Michigan.

  • Too Much Employer Stock? Don't Ignore Diversification

    Mark Poerio

    Despite recent warnings of the risks associated with executives feeling overly invested in their employer’s stock, some board members and compensation committees still turn a deaf ear to stock diversification programs that seem at odds with the idea of aligning executive interests with those of shareholders. Sometimes, however, the pendulum swings too far, says Mark Poerio of Wagner Law Group.