Securities

  • September 20, 2017

    SEC Says Hackers Hit Its Database, May Have Traded Off Info

    The U.S. Securities and Exchange Commission’s electronic filing system for public company disclosures was hacked last year, and the agency last month learned that the cyber-intruders may have traded off the nonpublic information that was exposed, agency Chairman Jay Clayton said in a statement Wednesday night.

  • September 20, 2017

    Eaton Beats Investor Suit Over Tax Statement That Hurt Stock

    A New York federal judge dismissed a proposed shareholder class action against Eaton Corp. PLC on Wednesday, saying company officials didn’t defraud shareholders about their desire or ability to sell a major business unit in the wake of a controversial merger that moved its HQ to low-tax Ireland.

  • September 20, 2017

    Keurig Green Mountain Seeks Quick Win In Stock-Drop Suit

    Keurig Green Mountain Inc. has urged a Vermont federal court to grant it and its former top officers a quick win in a securities class action that accuses them of misleading the market with a "false growth story," telling the court that the investors behind the suit can't connect their allegations to the losses they claim to have suffered.

  • September 20, 2017

    SEC Says Ex-DC Atty 'Minimizes' Role In $14M Ponzi Scheme

    The U.S. Securities and Exchange Commission on Tuesday pushed its fraud case against a former Washington, D.C., lawyer accused of helping with her brother’s $14.5 million Ponzi scheme, telling a Massachusetts federal court that her “attempt to minimize her conduct falls flat.”

  • September 20, 2017

    Greenberg Traurig Pays $9.8M To Settle Lender's Claims

    Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.

  • September 20, 2017

    2nd Circ. Overturns Ex-DHB CEO's Restitution, Keeps Bail

    The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.

  • September 20, 2017

    White Collar 'Goes Dark' With Rise Of Secret Messaging Apps

    White collar suspects’ use of email and other electronic communications about their illicit activity has been a boon to prosecutors for decades, but the rise of encrypted messaging apps and other new technology may be a roadblock to Wall Street prosecutors accustomed to a run of successes.

  • September 20, 2017

    DOL's Proposed Fiduciary Rule Delay Draws 131 Comments

    The comment period on the U.S Department of Labor's proposal to delay parts of its fiduciary rule for retirement account advisers closed Friday, with a chorus of industry stakeholders, investor advocates and think tanks weighing in on what freezing key provisions of the rule until July 2019 might mean. Here, Law360 looks at what financial groups, politicians, individuals and others had to say.

  • September 20, 2017

    DOJ Says Madoff Victim Payouts To Begin By Year's End

    The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.

  • September 20, 2017

    Feds Say Platinum Fund Downfall Plays Into Union Graft Case

    Manhattan federal prosecutors on Tuesday said a jury deciding if Platinum Partners LP's founder bribed a union official for investments should hear evidence that Platinum's principal fund was losing investors at the time.

  • September 20, 2017

    US Warns Banks To Watch Out For Corrupt Venezuelan Cash

    A government financial crimes watchdog on Wednesday warned U.S. banks to be on the lookout for attempts by Venezuelan government officials to funnel illicit funds into American real estate and other markets.

  • September 20, 2017

    Yellen Says Fed Looking At Potential Wells Fargo Sanctions

    Federal Reserve Chair Janet Yellen on Wednesday warned that the central bank was looking closely at taking actions against Wells Fargo & Co. for its “egregious and unacceptable” sales practices and other problems.

  • September 20, 2017

    OvaScience Board Seeks Derivative Case Transfer To Mass.

    The directors of fertility treatment developer OvaScience Inc. on Tuesday asked a Delaware federal judge to transfer a derivative action filed in the First State to Massachusetts, where the company is headquartered and where similar suits over excessive director compensation have already been filed.

  • September 20, 2017

    Madoff Trustee Can Proceed With $2.2M Clawback Suit

    The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.

  • September 20, 2017

    Ex-Fiber Optics Boss Accused Of $2M Insider Trading Scheme

    The former CEO of a fiber optics company that was bought by Corning Inc. last year was arrested Wednesday after being criminally charged and sued by the U.S. Securities and Exchange Commission for allegedly using insider information and secret brokerage accounts to make $2 million.

  • September 20, 2017

    Insurer Still On Hook For Post-Merger Coverage In BCB Row

    A New Jersey federal judge Monday found the dissolution of the original policyholder in a merger did not relieve Progressive Casualty Insurance Co. of the duty to defend the post-merger bank from a stockholder suit.

  • September 20, 2017

    EXCLUSIVE: Boutique Tiber Hudson Forming In New York, DC

    Five lawyers are soon joining forces to open a boutique law firm — Tiber Hudson LLC — that will have offices in New York City and Washington, D.C., and will focus on real estate, securities, government contracts and banking, among other areas, one of the five attorneys told Law360 on Wednesday.

  • September 20, 2017

    KBC, Motley Rice To Lead Cloud Computing Co. Investor Suit

    A New York federal judge gave European investment firm KBC Asset Management NV and its lawyers at Motley Rice LLC the green light on Tuesday to lead a proposed securities fraud class action against cloud computing company Rackspace Hosting Inc.

  • September 20, 2017

    EU-US Regulators Close To Reaching Equivalence Decision

    A decision on the equivalence of securities and derivatives markets regulation in the U.S. and the European Union could be finalized in the next few months after intense negotiations between regulators on both sides of the Atlantic, a senior EU official said Wednesday.

  • September 20, 2017

    Marathon Oil To Pay $33.1M In Foreign Tax Settlement

    Marathon Oil told a Texas federal court Tuesday that it has agreed to pay a group of limited partners $33.1 million to settle claims that the company cheated them out of millions in foreign tax credits in connection with a gas processing plant in Equatorial Guinea.

Expert Analysis

  • When Can LLCs Appoint A Special Litigation Committee?

    Muhammad Faridi

    A New York state court’s recent decision in LNYC Loft v. Hudson Opportunity Fund regarding the authority of a limited liability company to appoint a special litigation committee represents a departure in the trend of courts using statutory and common law to address questions that are not directly addressed by an LLC operating agreement, say Muhammad Faridi and Elizabeth Quirk of Patterson Belknap Webb & Tyler LLP.

  • Applying Delaware Contract Law To LPA Safe Harbors

    Darren Kaplan

    The Delaware Chancery Court's opinion in Morris v. Spectra Energy provides a road map for the litigation of safe-harbor provisions in limited partnership agreements and invites close review by both private fund litigators and drafters of Delaware LPAs, says Darren Kaplan of Stueve Siegel Hanson LLP.

  • 'Per-Doc' Pricing Can Improve Document Review

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    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • When A SOX Whistleblower Claim Applies Extraterritorially

     Matthew LaGarde

    The recent decision from the U.S. Department of Labor's Administrative Review Board in Blanchard v. Exelis Systems is important because it makes clear that, so long as the misconduct reported by the employee affects the United States in “some significant way,” the Sarbanes-Oxley Act will apply extraterritorially, says Matthew LaGarde of Katz Marshall & Banks LLP.

  • The Regulatory Risks Of A Deregulatory Environment

    Mark Schonfeld

    Now that we are several months into an administration with an agenda of financial deregulation, one might reasonably believe financial institutions are in for several years of relative quiet from regulators. However, at least two factors raise the potential risk for a future wave of investigative activity, says Mark Schonfeld of Gibson Dunn & Crutcher LLP.

  • Financial Crisis Anniversary

    2 Pillars Of Commonsense Reform

    Norm Champ

    The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.

  • Financial Crisis Anniversary

    Trends In Credit Crisis Settlements

    Faten Sabry

    Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.

  • Insider Trading After Martoma: Benefits Without Friends?

    Nathan Bull

    The Second Circuit's recent Martoma decision potentially expands the category of persons that, upon the disclosure of confidential information without pecuniary or tangible benefit, may constitute tippers or tippees subject to insider trading liability, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Equifax Brings Early Lessons On Insider Trading Policies

    Gary Tygesson

    Insider trading allegations have surfaced at Equifax, where three executives sold nearly $2 million in shares of the company’s stock days after the cyberattack was discovered but before the news was announced. The situation raises a number of fundamental questions about Equifax’s insider trading policy, say Gary Tygesson and Cam Hoang of Dorsey & Whitney LLP.

  • In 9th Circ., Facts Can Doom Forward-Looking Statements

    Nathaniel Cartmell III

    The Private Securities Litigation Reform Act protects “forward-looking statements,” but what if a prediction is presented with, and based upon, statements of current fact? New opinions from the Ninth Circuit suggest that such juxtaposing has become risky, say Nathaniel Cartmell III and Bruce Ericson of Pillsbury Winthrop Shaw Pittman LLP.