Securities

  • February 17, 2017

    Jury Finds Man Traded On Inside Info About Sanofi Deal

    A Georgia federal jury found against one man and cleared another Friday after the Securities and Exchange Commission accused them of raking in $550,000 by trading on inside information about a pending acquisition by Sanofi Aventis SA in 2009.

  • February 17, 2017

    DOL Notches Win Against Insurer's Fiduciary Rule Challenge

    A Kansas federal judge on Friday sided with the U.S. Department of Labor in upholding a new fiduciary rule for retirement account advisers related to fixed indexed annuity sales, finding the agency did not exceed its authority in ushering it in.

  • February 17, 2017

    Auditor Reviewed Dewey's London Tax Docs, Jury Hears

    A defense attorney for ex-Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders on Friday questioned the firm's former overseas finance director’s assertion that certain accounting maneuvers Sanders had pursued were improper, showing a New York jury evidence that outside auditors had reviewed the transactions.

  • February 17, 2017

    Ex-HD Supply Managers Sue In Chancery Over Stock Awards

    Two high-ranking employees of HD Supply Holdings Inc.’s former Power Solutions unit launched a class action in Delaware Chancery Court late Thursday claiming their stock compensation did not fully vest as promised when the subsidiary was sold to Anixter International Inc.

  • February 17, 2017

    Ex-Neurostar Investors Say Buyer Is Holding On To Escrow

    Former securityholders of medical imaging device maker Neurostar Solutions Inc. said in a lawsuit unsealed Friday in Delaware Chancery Court that the company that bought the firm in 2014 is withholding more than $1.7 million of cash placed into escrow as part of the deal without justification.

  • February 17, 2017

    SEC, State Watchdogs To Share Info On Private Capital

    The U.S. Securities and Exchange Commission on Friday announced that it has signed an information sharing pact with a group of state securities regulators to monitor the effects of new rules for intrastate crowdfunding and regional offerings.

  • February 17, 2017

    Energy Co. To Pay $3.9M To End Suit Over CEO's Disclosures

    Clean energy company Energy Recovery Inc. agreed Thursday to pay almost $3.9 million in cash to end a putative shareholder class action alleging its former CEO inflated stock prices with misleading statements, including allegations that he marketed engineering prototypes as ready for sale.

  • February 17, 2017

    SEC Charges Houston Man For 'Success Club' Offering Fraud

    A Houston man agreed Friday to settle the U.S. Securities and Exchange Commission’s charges that he raised at least $4.7 million through an offering fraud targeting fellow members of a pyramid scheme “success club,” the agency said.

  • February 17, 2017

    FDIC Can Split Colonial Trials Against Crowe Horvath, PWC

    An Alabama federal judge agreed Friday to split trials for claims by the Federal Deposit Insurance Corp. alleging that Crowe Horwath LLP and PricewaterhouseCoopers LLP acted negligently by failing to catch a $1.8 billion fraud scheme involving defunct former client Colonial BancGroup Inc.

  • February 17, 2017

    Texas Justices Decline Ethanol Co.'s $1M Atty Fee Dispute

    The Texas Supreme Court on Friday denied requests from both an ethanol company and its investors to review a derivative suit in which the company, on appeal, successfully wiped out a $36 million judgment and was seeking to cut down a $1 million attorneys' fee award as well.

  • February 17, 2017

    Ex-JPMorgan Banker Gets 3 Years For Leaking Tips To Dad

    A former investment banker for JPMorgan Chase & Co. and Perella Weinberg Partners convicted of insider trading after he was accused of leaking confidential information about health care company mergers to his father was sentenced to three years in prison on Friday.

  • February 17, 2017

    Under Armour Hid Sports Authority Ch. 11's Impact, Suit Says

    Athletic gear maker Under Armour Inc. was slapped with a shareholder suit in Maryland federal court Thursday accusing the Baltimore-based company of concealing the impact of Sports Authority's bankruptcy from investors in order to artificially inflate its stock price.

  • February 17, 2017

    LA's Mark Geragos Preps NY Pension Whiz For $2B Bribe Trial

    Celebrity lawyer Mark Geragos parachuted into Manhattan federal court Friday to defend former New York pension strategist Navnoor Kang against charges that he took bribes to steer $2 billion of investment dollars toward a former Sterne Agee managing director, as U.S. District Judge J. Paul Oetken set a December trial date.

  • February 17, 2017

    PE CEO In Fraud Case Wants 'Bad Faith' Warrants Suppressed

    Scandal-plagued private equity CEO Benjamin Wey asked a New York federal judge Friday to suppress the fruits of two search warrants in a securities fraud and money laundering case, saying the warrants were defective and after the government seized more than it should have, it impermissibly searched electronic data years later.

  • February 17, 2017

    Kimberly-Clark Wants Investor Suit Over Gowns Tossed

    A short stock drop that occurred after the airing of an episode of "60 Minutes" that delved into a two-year old lawsuit against Kimberly-Clark Corp. over the effectiveness of its gowns during the 2014 Ebola virus breakout can’t serve as the backbone of a securities fraud suit, the company told a New York federal court Thursday.

  • February 17, 2017

    Cay Clubs Ex-CFO Fights Gov't Request To Clarify Order

    A former Florida real estate executive facing charges related to an alleged $300 million Ponzi scheme blasted the government’s request for clarity on a pretrial order, saying Friday he won’t be raising arguments the court has barred.

  • February 17, 2017

    El Paso Pipeline Stuck With $1M Appeal Bond Fee

    The Delaware Chancery Court on Thursday told El Paso Pipeline Partners LP that it will have to pay $1 million in appeal bond premiums it incurred after successfully challenging a $100 million class judgment in an investor dispute over a Kinder Morgan merger.

  • February 17, 2017

    Texas Justices Won't Review Morgan Keegan Securities Suit

    The Texas Supreme Court on Friday said it would not review wealth management and capital markets firm Morgan Keegan’s argument it was wrongly held liable for not telling investors the true risks of a mortgage-backed securities stake, leaving intact a $2.1 million judgment.

  • February 17, 2017

    SunEdison's Unsecured Creditors Grilled Over Fraud Suit

    SunEdison's unsecured creditors were challenged in New York bankruptcy court Thursday over the durability of their allegations that the energy giant’s secured lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask the company’s deteriorating finances, finding themselves forced to defend a lack of specific details.

  • February 17, 2017

    $3.9M Ends SEC's Stanford Ponzi Claims Against Ex-Exec

    A former executive at one of Ponzi schemer R. Allen Stanford’s financial firms has agreed to pay the U.S. Securities and Exchange Commission nearly $3.9 million to settle claims related to his role in the fraud, according to a Friday decision by the regulator.

Expert Analysis

  • For The Boardroom, Private Ordering Trumps Political Change

    Marc S. Gerber

    While the legal and regulatory changes envisioned under a new presidential administration may present real and substantial opportunities for companies, those changes may have little, if any, impact when it comes to corporate governance. The forces driving shareholder activism and board scrutiny remain present and may gain strength in a period of deregulation, says Marc Gerber of Skadden Arps Slate Meagher & Flom LLP.

  • Responding To A Politician’s Social Media Attack

    Arthur H. Kohn

    Rhetorical attempts by politicians to influence the conduct of private enterprise — commonly referred to as “jawboning” — are an old political tactic. But the nature and frequency of jawboning in the current environment makes this a serious issue for boards and management at a wide variety of public companies, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Anti-Money Laundering Expectations Under Trump

    Michael A. Mancusi

    We do not anticipate the new administration will ease anti-money laundering enforcement. In fact, it is more likely that enforcement of the Bank Secrecy Act is an area of supervision that will increase in the coming years, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • Cybercrime Insurance Case Trends In The 4th Quarter Of 2016

    David Bergenfeld

    Major cybercrime cases in the final quarter of 2016 indicate the courts are growing stricter in interpreting insurance policy provisions. In particular, they denied insurance coverage for forged government guarantees and denied coverage for a vendor theft involving emails, says David Bergenfeld of D'Amato & Lynch LLP.

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • Non-GAAP Reporting Lessons For Energy Companies

    Bill Nelson

    In 2016, numerous energy companies received comments from the U.S. Securities and Exchange Commission addressing their compliance with the SEC’s guidance on non-GAAP financial measures — metrics that adjust amounts calculated in accordance with U.S. generally accepted accounting principles. The comments make clear that companies must make more nuanced interpretations of the guidance, say attorneys with Haynes and Boone LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • Why The Reform Act Needs Reforming

    Douglas W. Greene

    Two provisions in the Private Securities Litigation Reform Act have grown to be problematic for public companies — the safe harbor for forward-looking statements and the lead-plaintiff procedures. Although these issues won’t make the legislative agenda anytime soon, we defense lawyers can make a difference, says Douglas Greene of Lane Powell PC.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • CFTC Enforcement Considerations For 2017

    Peter Y. Malyshev

    With all of the political appointments and personnel changes at the U.S. Commodity Futures Trading Commission, the big question is whether the CFTC will continue to aggressively pursue market participants for violations of the Commodity Exchange Act and related regulations. We believe it will, say attorneys with Reed Smith LLP.