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Securities

  • December 14, 2018

    Rent-A-Center’s $11M Deal With Investors Gets Initial OK

    Rent-A-Center Inc.'s $11 million class action settlement offer to address stockholder claims that the company tried to hide known problems with a new sales transaction system has received conditional approval from a Texas federal judge.

  • December 14, 2018

    2nd Circ. Affirms Gerova Fraudster's 78-Month Sentence

    The Second Circuit affirmed Friday the damage calculations in a lower court ruling that sentenced a man to 78 months in prison for participating in a multimillion-dollar pump-and-dump scheme using the stock of a now-bankrupt NYSE-traded investment firm, Gerova Financial Group Ltd.

  • December 14, 2018

    Neiman Marcus Accuses Marble Ridge Of Smear Campaign

    Neiman Marcus Group Inc. filed counterclaims in Texas state court Friday against Marble Ridge Master Fund LP and its adviser, disputing the lawsuit the hedge fund lobbed earlier in the week and saying it has “waged a public campaign” against the luxury fashion retailer in an effort to extort value from it.

  • December 14, 2018

    Ex-Apollo Exec Can't Gag His Former Atty In SEC Probe

    A New York federal judge on Thursday overruled objections to the U.S. Securities and Exchange Commission's questioning of a former attorney for an ex-Apollo Management LP executive who stands accused of defrauding fund clients, saying there’s been no showing of common interest privilege. 

  • December 14, 2018

    PayPal Dodges Stock-Drop Suit Over Data Breach

    PayPal Holdings Inc. and its executives escaped a proposed shareholder class action accusing the company of concealing a data breach, which allegedly led to a stock drop when the hack was revealed, after a California federal judge dismissed the investors' complaint Thursday.

  • December 14, 2018

    Sears, Cyrus Blast Swap Bidder's Objection To Notes Sale

    Sears Holding Corp. and debtor-in-place lender Cyrus Capital Partners have asked a New York bankruptcy court to reject a call to vacate the sale of $900 million in intercompany medium-term notes to Cyrus, calling it a ploy by a failed bidder to change the results.

  • December 14, 2018

    Molina Escapes Investor's Suit Over Growth Misstatements

    A California federal court on Thursday dismissed an investor's proposed class action alleging shares of Molina Healthcare Inc. declined when it became apparent the health insurer wouldn’t achieve the growth executives had touted, saying the executives’ statements were forward-looking and inactionable.

  • December 14, 2018

    Ex-CEO Says He Earned Laser Co. Stock By Saving The Firm

    Attorneys for the former executive officer of laser weapons maker Applied Energetics Inc. told a Delaware Chancery Court judge that an injunction seeking to prevent him from selling 25 million shares of stock he gave himself in 2016 should be denied because he earned the stock compensation by saving the company from failure.

  • December 14, 2018

    $4.9M State Street Settlement Gets Initial OK From Judge

    A Massachusetts federal judge Friday granted preliminary approval of a $4.9 million settlement in a proposed class action filed by shareholders against State Street Corp., in which they claimed the bank overcharged clients and blew up revenue and profits in its financial statements.

  • December 14, 2018

    Adviser Who Took $1.2M From Athlete Agrees To SEC Deal

    A financial adviser who admitted to defrauding a professional athlete and his wife out of $1.2 million has agreed to enter into a consent judgment with the U.S. Securities and Exchange Commission, admitting to the agency’s civil claims and allowing a judge to determine his punishment accordingly.

  • December 14, 2018

    $385M Fitbit Insider Trading Suit Kept Alive In Chancery

    A Chancery Court on Friday kept alive a Delaware stockholder derivative suit that leveled insider trading and fiduciary duty breach claims against directors of fitness tracker maker Fitbit Inc., focused on $385 million in director stock sales in 2015, just before product troubles sank the company’s price.

  • December 14, 2018

    Fintech Conference Founder Wants Sanctions For Ex-Atty

    The co-founder of a major finance and technology conference has asked for sanctions against her former lawyer in a fees dispute, claiming that he repeatedly refused to admit during discovery that he threatened to quit multiple times while representing her in an underlying case.

  • December 14, 2018

    Investors Accuse Calif. Company Of Concealing Crypto Focus

    Investors in Sacramento, California-based Sunstock Inc. filed suit against the company Thursday in Boston federal court, saying it told the public it had a retail store, residential properties and a stockpile of silver when actually it was putting resources into crypto tokens.

  • December 14, 2018

    Ex-NJ Fire Chief Convicted In $10M Ponzi Scheme

    A New Jersey investment manager and former fire chief was convicted at trial for operating a Ponzi scheme that bilked hundreds of clients, including friends, family and associates, out of more than $10 million, federal prosecutors said Friday.

  • December 13, 2018

    Toys R Us Wins Ch. 11 Clearance For $760M Sale Of Asia Biz

    Toys R Us Inc. won approval from a Virginia bankruptcy court on Thursday to sell the majority stake of its business operations in Asia to a group of senior investors for $760 million as part of a Chapter 11 liquidation plan that provides creditor recoveries and releases potential claims between stakeholders.

  • December 13, 2018

    Arent Fox Nabs Ex-Shearman Atty For DC Tax Practice

    Arent Fox has announced a former Shearman & Sterling LLP partner is joining the firm’s tax practice in Washington, D.C., to assist clients with domestic and international transactional tax issues.

  • December 13, 2018

    Judge Denies Firm's Bid To Cut Kickback Claims In Report

    A Florida federal judge said Thursday that she would not delete references to allegations of a kickback scheme involving Bernstein Litowitz Berger & Grossmann LLP from her report and recommendation for a lead plaintiff in a class action against health care administration company Mednax.

  • December 13, 2018

    Former OU Football Player Gets 5 Years For $900K Fraud

    A former University of Oklahoma football player has been sentenced to five years in prison for defrauding victims out of $875,000 by convincing them to “invest” in sham apparel and nutrition companies and then pocketing the funds, prosecutors announced Thursday.

  • December 13, 2018

    NJ Health Care Co. Execs Indicted In $300M Investment Fraud

    Four former executives of the bankrupt Constellation Healthcare Technologies Inc. have been indicted for bilking investors out of $300 million in connection with a merger designed to take their publicly traded company private, New Jersey federal prosecutors said Thursday.

  • December 13, 2018

    Vereit Insurers Must Cover SEC Probe, Class Action Costs

    A Delaware state court judge has ruled real estate trust Vereit Inc.'s insurers must cover the costs the company's investment manager incurred defending against an investor class action and a U.S. Securities and Exchange Commission probe aimed at both companies.

Expert Analysis

  • How To Work With Regulators During Internal Investigations

    David Chaiken

    The recent courtroom battle over the admissibility of statements made by former Deutsche Bank traders shines a spotlight on a potentially recurring problem — excessive government entanglement in an internal investigation. Counsel conducting such investigations should take certain steps to minimize the risk, say attorneys with Troutman Sanders LLP.

  • Professional Athletes Should Beware Financial Fraud

    Kevin Muhlendorf

    Recent financial fraud cases brought by the U.S. Securities and Exchange Commission and federal prosecutors around the country can hopefully serve as a warning to professional athletes and encourage caution when working with financial advisers, say Kevin Muhlendorf and Colin Cloherty of Wiley Rein LLP.

  • Merely A Setback For CFTC Market Manipulation Cases

    Daniel Chirlin

    The U.S. Commodity Futures Trading Commission last month suffered a stunning blow to its expansive interpretation of market manipulation in its case against DRW Investments. But this does not quite spell the end for such cases, says Daniel Chirlin of Walden Macht & Haran LLP.

  • Guest Feature

    The Subtle Art Of Fred Fielding

    Fred Fielding

    He was White House counsel to two presidents. When Reagan was shot, he explained the chain of command to a four-star general. And until a few years ago, many people still thought he was Deep Throat during the Watergate scandal. Fred Fielding of Morgan Lewis & Bockius may be the quintessential Washington insider. White and Williams attorney Randy Maniloff learned more.

  • How Life Sciences Cos. Can Prepare For Legal And PR Crises

    Mark Goodman

    Life sciences companies are susceptible to a wide range of crises that could expose them to legal liability and destroy their reputations. Sometimes, however, the greatest risks will come not from the facts that led to a crisis, but from the company's response, say attorneys at Debevoise & Plimpton LLP.

  • Opinion

    Ohio's Risky Foray Into Bitcoin: Part 2

    John Reed Stark

    By interacting with a cryptocurrency institution for tax payments, Ohio is exposing its operations to a potential cyberattack. In addition, the noxious mix of federal and state regulatory requirements creates a foggy compliance labyrinth, even for a U.S. state, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Look At New IRS Guidance For Discounting Unpaid Losses

    Kristan Rizzolo

    The IRS recently proposed regulations for discounting unpaid losses under Internal Revenue Code Section 846. This necessary guidance, affecting both long- and short-tail insurers, removes obsolete regulations following the Tax Cuts and Jobs Act, say Kristan Rizzolo and Graham Greene of Eversheds Sutherland LLP.

  • 10 Tips For Law Firms To Drive Revenue Via Sports Tickets

    Matthew Prinn

    Many law firms have tickets or luxury suites at sporting events to host clients and prospects. Matthew Prinn of RFP Advisory Group and Matt Ansis of TicketManager discuss some of the ways that firms can use those tickets effectively.

  • Opinion

    Ohio's Risky Foray Into Bitcoin: Part 1

    John Reed Stark

    Last month, cryptocurrency hit yet another milestone when Ohio began accepting bitcoin payments for taxes. However, Ohio’s treasury, or any other state or federal government entity, should be the very last institutions to even consider accepting this dubious form of payment, says John Reed Stark of John Reed Stark Consulting LLC.

  • Inside Key ABA Guidance On Attorneys' Cybersecurity Duties

    Joshua Bevitz

    A recent opinion from the American Bar Association provides useful guidance on attorneys’ obligations to guard against cyberattacks, protect electronic client information and respond if an attack occurs, says Joshua Bevitz of Newmeyer & Dillion LLP.