• February 21, 2018

    Bitfunder Boss Charged With Lying About $70M Bitcoin Heist

    Alternative currency purveyor Jon E. Montroll lied to the U.S. Securities and Exchange Commission after hackers stole 6,000 bitcoins, today worth nearly $70 million, from his WeExchange and businesses in 2013, according to criminal charges unsealed Wednesday in Manhattan federal court.

  • February 21, 2018

    Tops Supermarkets Opens $1.2B Ch. 11, Plans Debt Rework

    Regional supermarket chain Tops Markets LLC opened a nearly $1.2 billion Chapter 11 restructuring in New York bankruptcy court on Wednesday, saying it needs to reduce its debt load, optimize supply and lease agreements and “constructively engage” with its labor unions.

  • February 21, 2018

    Lifetime Fitness Exec Cops To Insider Trading Scheme Role

    A former Lifetime Fitness executive accused of tipping friends about the gym chain’s planned private equity buyout in exchange for a cut of trading profits pled guilty on Wednesday to a count of conspiracy to commit securities fraud he faced over the scheme.

  • February 21, 2018

    Supreme Court Narrows Definition Of Whistleblower

    The U.S. Supreme Court on Wednesday ruled in favor of a narrow definition of the term "whistleblower," a decision that will significantly limit the scope of anti-retaliation measures meant to protect whistleblowers under the Dodd-Frank Act.

  • February 20, 2018

    Stanford Ponzi Deal Wrongly Bars Claims, 5th Circ. Hears

    Hundreds of investors in the Stanford Ponzi scheme urged the Fifth Circuit on Monday to overturn a $120 million deal settling claims that broker Willis Ltd. fraudulently induced their investments, arguing that the settlement funds inexplicably go to the Stanford receiver and the terms of the deal indefensibly bar further claims against Willis.

  • February 20, 2018

    ETE's Warren Defends Fairness Of $1B Private Unit Issue

    Energy Transfer Equity LP Chairman Kelcy Warren rejected claims Tuesday that self interest drove a $1 billion private securities initiative effectively closed to nearly 70 percent of ETE’s unitholders in 2016, during a trial in Delaware on a class call for damages and cancellation of the terms.

  • February 20, 2018

    Cohen Can't Seal Suit Over Alleged Harassment At Firm

    Steven A. Cohen’s investment firm lost a bid to seal a current employee’s lawsuit alleging widespread sexual discrimination Tuesday when a New York federal judge ruled there was no reason to keep the allegations confidential while the parties suss out whether the case should be arbitrated.

  • February 20, 2018

    State Securities Cops Filling In For Feds On Fiduciary Beat

    A high-profile complaint filed by Massachusetts' top securities cop against Scottrade for allegedly violating conflict-of-interest laws is a sign that state regulators will be stepping in to fill a perceived void in federal policing of retirement account advisers, legal experts said Tuesday.

  • February 20, 2018

    Wilmington Suit Over Ex-Chesapeake CEO's $464M Debt Stays

    A New York federal judge on Friday largely left intact a suit brought by Wilmington Trust National Association over a $464 million loan guaranty from the late Chesapeake Energy CEO and part-owner of the NBA's Oklahoma City Thunder, finding the court has jurisdiction to hear the case.

  • February 20, 2018

    NY Accountant Pleads Guilty In Stock Manipulation Scheme

    A Cedarhurst, New York, accountant on Tuesday copped to his role in a long-running stock market manipulation scheme that netted millions in illegal profits between 2014 and 2016, federal prosecutors said.

  • February 20, 2018

    Ex-Citadel Plastics CEO Demands Advancement Of Legal Fees

    The former president and CEO of Citadel Plastics Holdings LLC filed a complaint late Friday in Delaware seeking advancement of his legal fees incurred in relation to the $800 million acquisition of the company and a federal criminal investigation into alleged fraud.

  • February 20, 2018

    Judge Nixes LendingClub Investor Bid For Underwriter Docs

    Morgan Stanley, Goldman Sachs and the other underwriters of LendingClub Corp.'s $1 billion initial public offering for now don't have to produce roughly a thousand documents sought by a class of investors suing the peer-to-peer lending company for alleged stock fraud, a California federal judge ruled Tuesday.

  • February 20, 2018

    Woodbridge Ponzi Defendant Seeks Toss Of SEC Charges

    Ponzi-scheme suspect Robert Shapiro asked a Florida federal court Tuesday to dismiss the Securities and Exchange Commission’s case against him, saying the mortgage notes he sold were not securities.

  • February 20, 2018

    Swift Action Called For In Pacific Drilling Ch. 11 Case

    Turning down calls for mediation in the Chapter 11 case for Pacific Drilling, a New York bankruptcy judge on Tuesday questioned the company’s reorganizing efforts to date and said he expects quick signs of progress in its restructuring plan talks with creditors.

  • February 20, 2018

    High Court Turns Away Fannie, Freddie Investor Appeals

    The U.S. Supreme Court on Tuesday denied a plea from investors hoping for reconsideration of their case challenging the federal government’s conservatorship of Fannie Mae and Freddie Mac, reinforcing a lower court’s ruling that the Federal Housing Finance Agency cannot be sued over its role in managing the mortgage finance duo.

  • February 20, 2018

    One Count Survives In Regency, Energy Transfer Merger Suit

    A single claim for breach of a limited partnership against natural gas company Regency GP LLC survived a second dismissal try Tuesday after a Delaware Chancery Court determined the pleading was sufficient to show Regency’s board may have known its $11.2 billion merger with Energy Transfer Partners LP was not in its best interest.

  • February 20, 2018

    Del. Justices Revive Suit Over Diamond's $2B Sale To Apollo

    The Delaware Supreme Court on Tuesday revived a shareholder suit contesting Diamond Resorts International's $2.2 billion sale to Apollo Global Management, saying Diamond’s board should have disclosed why the company’s founder opposed the sale.

  • February 20, 2018

    Ex-UBS Trader Gets Spoofing, Fraud Counts Nixed Over Venue

    A Connecticut federal judge on Monday axed the criminal spoofing and commodities fraud counts facing a former UBS AG trader accused of scheming to manipulate the precious metals market, blasting the government’s handling of the case and refusing to scrap its remaining conspiracy charge in order to let federal prosecutors have a mulligan.

  • February 20, 2018

    United's $37M Deal For Fired Execs Hurt Co., Investor Says

    An institutional investor in the parent company of United Airlines filed an amended derivative suit Tuesday in Delaware Chancery Court alleging the company’s directors breached their fiduciary duties by awarding $37 million in severance packages to executives terminated for their roles in a bribery scandal.

  • February 20, 2018

    2nd Circ. Ruling Ends Exxon Free Speech Claims, Judge Told

    The Second Circuit’s recent decision that the First Amendment does not shield social welfare organizations from disclosing their donors should also undermine Exxon Mobil Corp.’s free speech claims against state climate change probes, New York Attorney General Eric Schneiderman’s office told a federal judge Friday.

Expert Analysis

  • Looking Closer At A Record Year For Securities Cases

    Stefan Boettrich

    The pace of securities class action filings, settlements and dismissals in 2017 each reached levels not seen in at least a decade — and 2018 is already looking up. Last year also saw record low settlement metrics, but they do not necessarily portend low aggregate settlements in 2018 and beyond, says Stefan Boettrich of NERA Economic Consulting.

  • A New Era In Global Securities Litigation: Part 3

    David Kistenbroker

    In addition to the Netherlands, the U.K. and Germany have also experienced rapid proliferation of collective actions in the recent past. As collective action vehicles in Europe develop, issues with enforcement and implementation have emerged, say attorneys with Dechert LLP.

  • Observations On Delaware Appraisal In A Post-Dell World

    John Hughes

    It is too early to assess the full reach that Dell will have on appraisal in Delaware. But the Delaware Chancery Court's ruling last week in Verition Partners v. Aruba Networks provides a first look, say John Hughes and Jack Jacobs of Sidley Austin LLP.

  • A New Era In Global Securities Litigation: Part 2

    Joni Jacobsen

    Shareholder plaintiffs barred from U.S. courts post-Morrison are looking to foreign jurisdictions. The Netherlands in particular is the European Union member state at the forefront of this sea change in securities litigation, say attorneys with Dechert LLP.

  • Understanding Texas Mechanic's Liens And Bonds: Part 1

    Excerpt from Lexis Practice Advisor
    David Tolin

    Texas is home to relatively complex statutory frameworks for liens and bonds used to secure payment for services rendered. Statutory and constitutional liens provide powerful remedies for nonpayment, but only if the proper guidelines are strictly observed, says David Tolin of Cokinos Young.

  • Delaware May Be The Right Jurisdiction For 'Smart' Orgs

    Matthew O’Toole

    As distributed ledgers and blockchains emerge as means for processing and recording corporate and commercial transactions, the Delaware LLC may become an attractive organizational form for next-generation "decentralized autonomous organizations," say attorneys with Potter Anderson Corroon LLP.

  • A New Era In Global Securities Litigation: Part 1

    David Kistenbroker

    Shareholder plaintiffs barred from U.S. courts are looking to courts in foreign jurisdictions to litigate alleged securities fraud and seek redress. To understand and prepare for this sea change, multinational defendants should be aware of jurisdictions in which they could be sued, as well as those in which they may be able to obtain global relief, say attorneys with Dechert LLP.

  • How Emerging Sources Of ESI Will Impact Discovery

    Charles McGee

    Late last year, the Sedona Conference released the third edition of its principles addressing electronic document production, updated to account for innovations like Snapchat and Twitter. It may be necessary for these principles to be updated more often in order to keep pace with technology, says Charles McGee III of Murphy & McGonigle LLP.

  • Put The Brakes On Acceleration Bay Litigation Funder Ruling

    David Gallagher

    Last week, the District of Delaware raised eyebrows by ruling that documents provided to a litigation funder and its counsel in connection with their due diligence are categorically not attorney work product. Acceleration Bay v. Activision Blizzard seems to be a case of bad facts making bad law, says David Gallagher, investment manager and legal counsel for Bentham IMF.

  • 3 Securities Enforcement Developments You May Have Missed

    Kurt Wolfe

    Over the past year, the U.S. Securities and Exchange Commission investigations and enforcement space has seen a number of developments that are likely to have transformative effects, some of which have garnered a great deal of commentary. Kurt Wolfe of Allen & Overy LLP highlights three issues that have received less attention.