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Securities

  • October 18, 2018

    Bitcoin Trader, CEO Ordered To Pay $2.5M For Ponzi Scheme

    Bitcoin trading outfit Gelfman Blueprint Inc. and its CEO Nicholas Gelfman have been ordered to pay $2.5 million in restitution after stealing more than $600,000 from roughly 80 customers, in the first anti-fraud case involving bitcoin brought by the Commodity Futures Trading Commission.

  • October 18, 2018

    Proposed Volcker Rule Definition Change A No-Go, Banks Say

    Federal financial regulators are getting an earful about their proposal to revamp the trading account definition under the so-called Volcker rule, with industry players saying the change could actually make things worse for banks.  

  • October 18, 2018

    Last Tippee In $5M BofA Insider Trading Ring Takes Plea Deal

    A former Morgan Stanley vice president accused of trading on tips that came from a Bank of America technology consultant pled guilty to securities fraud conspiracy in Manhattan federal court on Thursday, making him the last of seven defendants in a $5 million insider trading ring to do so.

  • October 18, 2018

    Fund Takes 2nd Stab At Uber Fraud, Illicit Biz Practices Suit

    A Texas-based retirement fund took another stab at a proposed California class action alleging Uber Technologies Inc. and its ex-CEO Travis Kalanick's illicit business tactics, corporate bullying, institutionalized harassment and rampant flouting of the law cost investors billions.

  • October 18, 2018

    Freight Co., DOL Ink $2.5 Deal In Stock Transaction Suit

    The trustee of an Ohio freight company's employee stock ownership plan and his company agreed to a nearly $2.5 million judgment to settle the U.S. Department of Labor's claims they cost the plan $6 million through fiduciary breaches, according to filings in federal court.

  • October 18, 2018

    SEC Accuses Immigration Atty Of $10M EB-5 Fraud Scheme

    Federal securities authorities filed a civil complaint in California federal court Thursday accusing an immigration attorney and her husband of fraudulently making millions of dollars through a federal immigrant investor program.

  • October 18, 2018

    NY Trial Set To Determine Owner Of Contested Crypto Platform

    A business developer accused of sneaking her name onto corporate paperwork to steal control of a budding peer-to-peer cryptocurrency platform agreed Thursday to an expedited Nov. 5 trial in Manhattan to determine whether she rightfully owns the platform.

  • October 18, 2018

    Battle Brews Over Atty's Admission In Woodbridge Ch. 11

    A battle is brewing in the litigation over The Woodbridge Group of Companies’ Chapter 11 plan concerning the pro hac vice admission in Delaware of an attorney representing a group of noteholders who oppose the plan, as unsecured creditors claim he violated ethical rules by not properly disclosing conflicts that exist among his clients. 

  • October 18, 2018

    Oaktree Says Financial Docs Are Privileged In Fraud Suit

    Oaktree Capital Management is fighting a production request from defendants in its California security fraud suit against private equity company Warburg Pincus for communications between a noteholder committee in the Rural/Metro bankruptcy and its financial adviser, claiming attorney-client privilege.

  • October 18, 2018

    Nine West Files Amended Ch. 11 Plan With $105M Settlement

    Nine West Holdings Inc. has filed a revised Chapter 11 plan with a New York bankruptcy court that includes a $105 million settlement with company owner Sycamore Partners, releasing the latter of claims that it stripped Nine West’s assets and sent the company into bankruptcy.

  • October 18, 2018

    Facebook Seeks To Duck Suit Claiming It Inflated Ad Stats

    Facebook urged a California federal judge on Wednesday to toss an aromatherapy business owner’s putative class action alleging the social media giant bolsters its advertising revenue by inflating the potential reach of demographic figures provided to its clients, saying it expressly told advertisers the figures might not align with third-party calculations.

  • October 18, 2018

    Noble Group Seeks US Protection During $3.5B Restructuring

    Global commodity trader Noble Group Ltd. is asking a New York bankruptcy court to shield its U.S. assets while its plan to restructure $3.5 billion in debt works its way through English courts.

  • October 18, 2018

    Toshiba Tells High Court Stock-Drop Suit Doesn't Belong In US

    Japan's Toshiba Corp. has asked the U.S. Supreme Court to review the Ninth Circuit's revival of a proposed class action alleging misstatements made in the company’s home country caused the price of American depositary shares to fall, saying the supposed misconduct occurred entirely in the Asian country.

  • October 18, 2018

    Necco Trustee Says Director Suit Should Stay In Fed. Court

    The Chapter 11 trustee of bankrupt candy maker New England Confectionery Co. Inc. told a Massachusetts federal judge Thursday that his suit accusing the debtor’s directors and officers of prepetition breaches of fiduciary duty shouldn’t be moved to bankruptcy court because it isn’t a core proceeding to the Chapter 11 case.

  • October 18, 2018

    Fidelity's Foray Into Bitcoin Likely To Boost Crypto Appeal

    Fidelity Investments’ plans to form a stand-alone company that will enable hedge funds and other professional investors to store and trade cryptocurrencies like bitcoin could potentially pave the way for more institutional investment into the fledgling asset class.

  • October 18, 2018

    Fintech Cops Urged To Play Nice, But Sandbox Is A Hard Sell

    A recent Treasury Department report proposed a host of ideas for boosting development in America's financial technology sector and keeping it globally competitive, including a "sandbox" for experimenting with new products and services, but experts say a morass of regulatory agencies makes building such a playground difficult in the U.S.

  • October 18, 2018

    Miramar Finalizes Settlement Over Sientra Merger Suit

    Shareholders of medical technology firm Miramar Labs Inc. and eight of the company’s shareholders filed a stipulation of settlement Thursday in Delaware Chancery Court that calls for $118,500 in plaintiff attorneys' fees and expenses in a $410,000 settlement that seeks to bring an end to the investors’ suit over a $20 million merger with Sientra Inc. in 2017.

  • October 18, 2018

    Canadian Securities Watchdog Reveals Market Protection Plan

    The Canadian Securities Administrators on Thursday published a notice informing market participants about its method for handling a market disruption to Canadian capital markets, including instances related to a large-scale cybersecurity incident.

  • October 18, 2018

    Investor Sues Online Seller CafePress Over Snapfish Merger

    An investor in CafePress, an online retailer selling customized products, filed a proposed class action Wednesday in Delaware federal court alleging the company misled and ultimately may have shortchanged stockholders leading up to its recommended merger with online printing giant Snapfish.

  • October 18, 2018

    Timber Co. Receiver Seeks Injunction For Ponzi Recruiters

    The receiver for a purported timber company that actually acted as a Ponzi scheme asked a Mississippi federal judge on Wednesday for an injunction restraining two of the scheme's primary investment recruiters from burning through millions of dollars that should be used to repay victims.

Expert Analysis

  • A State Of Flux For Derivative Actions In Florida

    Andrew Polenberg

    While the Florida Revised Limited Liability Company Act allows LLC members to bring a derivative action without first making a demand, the same cannot be said of the Florida Business Corporation Act. And a recent proposal to amend the FBCA doesn't do enough to create a uniform demand futility rule, says Andrew Polenberg of Becker & Poliakoff PA.

  • Crypto As Commodity, And The Bankruptcy Implications

    Joanne Lee Molinaro

    With the recent ruling in My Big Coin Pay that bitcoin and other cryptocurrencies are “commodities,” bankruptcy courts will likely have greater discretion regarding how to treat the valuation of cryptocurrencies in a variety of contexts, say Joanne Lee Molinaro and Susan Poll Klaessy of Foley & Lardner LLP.

  • A Holistic Approach To Client Retention

    Dan Tacone

    In an era when law firms are fighting for business and clients can dictate the terms of the relationship, "value" has become a moving target. Firms that take a proactive approach by using strategies designed to articulate value over time will gain the competitive advantage, says Dan Tacone at Intapp Inc.

  • Q&A

    A Chat With Allens Pricing Chief Pier D'Angelo

    Pier D'Angelo

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Pier D'Angelo, chief pricing and practice officer at Allens.

  • Studying The Reactions To SEC's Whistleblower Proposals

    Kathleen Massey

    Earlier this year, the U.S. Securities and Exchange Commission proposed amendments to the rules governing its whistleblower incentive and protection program. Kathleen Massey of Dechert LLP examines the key issues raised by the public comments filed in response, and what to expect from the final rules.

  • Fortress Ruling Helps Temper Overzealous SEC Enforcement

    Perrie Weiner

    The insider trading action against certain Fortress securities traders is one more example of the U.S. Securities and Exchange Commission relying upon analytical data to pursue what may be suspicious activity. But a New Jersey federal court's recent decision in the case reinforces that suspicious trades are not enough, say attorneys with DLA Piper.

  • Opinion

    Blockchain Cos. Should Welcome Regulation — Here's Why

    Anna Fridman

    A clearly delineated regulatory framework would go a long way in providing the certainty necessary for the digital asset economy to thrive, analogous to the stabilizing effect the formation of the U.S. Securities and Exchange Commission had on the stock market after the 1929 crash, says Anna Fridman of Spring Labs.

  • Opinion

    The ABA Was Dead Wrong About Model Rule 8.4(g)

    Bradley Abramson

    In the two years since the American Bar Association's controversial anti-discrimination and harassment rule, only one state has adopted it, while numerous state supreme courts, state attorneys general and legal groups have correctly rejected Model Rule 8.4(g) as a threat to lawyers' First Amendment rights, says Bradley Abramson, an attorney with Alliance Defending Freedom.

  • What Akorn Teaches Us About Delaware MAC Clauses

    David Leinwand

    Until Vice Chancellor J. Travis Laster’s decision this month in Akorn v. Fresenius, no Delaware court had released a buyer from its obligation to close a transaction as a result of a material adverse effect or change. But we expect the conventional wisdom to continue to hold true — that it is extremely difficult for an acquirer to establish the occurrence of a MAC, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Deducting SEC Disgorgement In A Post-Kokesh World

    Pamela Johnston

    The U.S. Supreme Court's ruling last year in Kokesh has an unintended consequence — the IRS and state taxing authorities have been applying the decision to challenge deductions for disgorgement paid as a result of U.S. Securities and Exchange Commission settlements. However, a settling party can still qualify for a deduction, say attorneys with Foley & Lardner LLP.