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Securities

  • July 20, 2018

    Acadia Hit With Securities Suit Over Drug Linked To Deaths

    An Acadia Pharmaceuticals Inc. shareholder slapped the biopharmaceutical company with a putative securities fraud class action in California federal court Thursday, claiming the company inflated its stock price by hiding safety risks and downplaying reports of deaths connected to its treatment for hallucinations and delusions.

  • July 20, 2018

    IT Firm Investor To Pay $450K In SEC Judgment Over Fraud

    An investor in a bankrupt Illinois information technology company agreed on Thursday to pay the U.S. Securities and Exchange Commission $450,000 after he allegedly aided former top company executives in a fraud scheme to embezzle $4.1 million.

  • July 20, 2018

    House Panel Wants To Grill Puerto Rico Gov. On PREPA Crisis

    The U.S. House Committee on Natural Resources asked the governor of Puerto Rico on Thursday to send an administration official to speak at an upcoming panel hearing on mismanagement at the island's troubled electric utility, the Puerto Rico Electric Power Authority, amid mass turnover at the top.

  • July 20, 2018

    Banks Say Firm’s Claims Don’t Belong In Swaps Antitrust MDL

    Eleven banks accused by fintech firm trueEX LLC of illegally boycotting its interest rate swaps platform and funneling business to an exchange they operated asked a Manhattan federal judge on Thursday to dismiss the suit, saying trueEX’s case is weaker than those of similar businesses in the multidistrict litigation.

  • July 20, 2018

    Chancery Court Tosses Investor Challenge To Energy Co. Deal

    A Delaware Chancery Court judge on Friday rejected a challenge by a shareholder in Earthstone Energy Inc. to the company’s acquisition of Bold Energy III LLC, saying the shareholder failed to show private equity firm EnCap Investments LP forced the company into a raw deal.

  • July 20, 2018

    Gov't To Pay Cenveo $5.5M Over Pulled Census Contract

    Bankrupt envelope and printed product manufacturer Cenveo has asked a New York bankruptcy court to approve a settlement that would see the federal government pay $5.5 million to terminate a contract related to the 2020 U.S. Census.

  • July 20, 2018

    Wells Fargo Suit Doesn't Fall Under ERISA, Judge Says

    A federal judge in Minnesota on Thursday dismissed Wells Fargo retirement plan participants' claims without a chance to revise, finding that their suit over losses the plans suffered after the bank copped to unethical sales practices doesn't fall under the Employee Retirement Income Security Act.

  • July 20, 2018

    Ex-UBS Trader, CFTC To Settle Spoofing Suit

    The former UBS AG trader being sued by the Commodity Futures Trading Commission for allegedly spoofing in precious metals futures markets has reached a tentative deal to settle the agency’s suit, according to a joint filing in Connecticut federal court on Friday.

  • July 20, 2018

    Canadian Regulator Spotlights Disclosure Deficiencies

    The Canadian Securities Administrators on Thursday released a biennial report that examines common deficiencies and best practices regarding the continuous disclosures filed by companies issuing securities, in an effort to assess and help provide a road map to compliance. 

  • July 20, 2018

    Keryx Trims, But Can’t Scrap Shareholder Stock-Drop Suit

    Keryx Biopharmaceuticals Inc.’s bid to escape a proposed shareholder class action claiming it inflated its stock price by hiding a drug’s supply chain problems was rejected by a Massachusetts federal judge, who however agreed to trim an allegation based on the company's statements about its financial prospects.

  • July 20, 2018

    Gramercy Says Peru Won't Resolve Bond Row, Now At $1.8B

    U.S. asset manager Gramercy Funds Management LLC has increased the amount it is seeking from Peru in a dispute over old government bonds from $1.6 billion to $1.8 billion, saying in an amended statement of claim that the South American country has rejected its efforts to resolve the issue.

  • July 20, 2018

    3 Plan Guilty Pleas In $5M BofA Insider Trading Case

    Three defendants accused of taking a total of $5 million in illegal profits from trades based on tips from a former Bank of America technology consultant are planning to plead guilty, a Manhattan federal judge heard on Friday, leaving one man on deck to stand trial.

  • July 20, 2018

    Deutsche Bank Units Will Pay $75M To Resolve SEC Claims

    The U.S. Securities and Exchange Commission said Friday that German banking giant Deutsche Bank will pay nearly $75 million to settle allegations it mishandled the pre-release of American depositary receipts, U.S. securities that represent shares in foreign companies.

  • July 20, 2018

    Sunrun Investor Suit Booted With Last Chance For Fixes

    The latest iteration of an investor suit claiming Sunrun Inc. fudged customer cancellation numbers to keep its stock afloat fared no better than the first two versions, a federal judge in California found Thursday in a pithy two-page opinion chucking the complaint.

  • July 19, 2018

    Carpenter Can't Save NGO Boss From FCPA Case

    A New York federal judge on Thursday rebuffed a bid by the head of a Chinese nongovernmental organization to parlay the U.S. Supreme Court’s recent Carpenter ruling into the suppression of evidence in his Foreign Corrupt Practices Act case, and further refused to dismiss the criminal action in its entirety.

  • July 19, 2018

    Cape Cod Financial Adviser Stole $3.3M From Clients: SEC

    A former investment adviser from Cape Cod, Massachusetts, stole more than $3.3 million from her clients through a variety of schemes, including forging withdrawal requests, forging wire and check requests and tricking a client into withdrawing money from a retirement account, the U.S. Securities and Exchange Commission said Thursday.

  • July 19, 2018

    No-Show Estonian Forex Dealer Must Pay $11M In CFTC Case

    A Utah federal judge has ordered nearly $10.3 million in restitution and a $681,000 civil penalty against an Estonian foreign exchange trader that has yet to make a showing in the suit accusing it of conducting unregistered trades with U.S. customers, the U.S. Commodity Futures Trading Commission announced Thursday.

  • July 19, 2018

    Fla. Battery Co. Exec Pays $50K To End SEC Suit

    A former executive at a lithium-battery manufacturer agreed Wednesday in Florida federal court to pay the U.S. Securities and Exchange Commission a $50,000 fine to end allegations that he and another executive made misleading financial statements in an effort to inflate stock prices.

  • July 19, 2018

    Big3 Hearing Gets Heated As Ex-Commish Calls For Sanctions

    A hearing on Big3’s motion to prevent ousted ex-commissioner Roger Mason from selling his shares of the three-on-three basketball league quickly devolved into a shouting match Thursday, as counsel for Mason accused Big3’s lawyers of lying to the court, wasting its time and then backing out like “cowards.”

  • July 19, 2018

    MFS Must Face ERISA Suit Alleging Self-Serving Investments

    A Massachusetts federal judge on Thursday allowed a former finance employee to pursue claims that MFS Investment Management put nearly every dollar of its workers’ retirement savings into the company’s own mutual funds, passing up nonproprietary alternatives to the participants’ detriment since 2011.

Expert Analysis

  • What Directors Need To Include In Appraisal Notices

    Christopher Chuff

    The Delaware Chancery Court's opinion in Cirillo Family Trust v. Moezinia is a stark reminder of both the required contents of an appraisal notice as well as the appropriate approach to take when communicating with stockholders, say attorneys with Pepper Hamilton LLP.

  • EB-5 Investor Withdrawal — Evaluating The Controversies

    Ronald Fieldstone

    As the EB-5 visa program becomes more cumbersome, many investors are requesting or demanding a return of their $500,000 capital contribution. There are several variations of such requests that will result in different consequences, says Ronald Fieldstone of Saul Ewing Arnstein & Lehr LLP.

  • Suddenly, ALJs Become Political Appointees

    Brian Casey

    Less than three weeks after the U.S. Supreme Court decided Lucia v. Securities and Exchange Commission, President Donald Trump signed an executive order applying the court’s rationale in Lucia to the hiring — and firing — of all administrative law judges in the federal government, making them entirely beholden to the heads of their agencies or the president for their jobs, says Brian Casey of Barnes & Thornburg LLP.

  • How To Avoid Liability For Halo Statements

    James Goldfarb

    When companies burnished their ethics codes to tout their reputations in the wake of Enron, the plaintiffs bar tried to use those “halo statements” to establish securities fraud liability. Given recent regulatory emphasis on corporate culture, let's look at the mixed success of the post-Enron culture-driven cases, say attorneys with Murphy & McGonigle PC.

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Lorenzo V. SEC: Will High Court Further Curtail Rule 10b-5?

    Roger Cooper

    In Lorenzo v. U.S. Securities and Exchange Commission, the U.S. Supreme Court will consider whether a misstatement claim that does not meet the elements set forth in the court’s 2011 Janus decision can be repackaged and pursued as a fraudulent scheme claim under Rule 10b-5. A number of possible outcomes present themselves, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • 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.