Securities

  • May 23, 2018

    Objectors Chafe At 18% Fee Request In $2.3B Forex Deal

    Major questions still dog the path to final approval of a $2.3 billion settlement of forex-rate-rigging claims by 15 major banks, a hearing Wednesday revealed, as a New York federal judge asked plaintiffs’ counsel for more data to support an 18 percent fee request and delved into the proper treatment of ERISA claims.

  • May 23, 2018

    CBS Seeks Approval Of Redstone Vote Dilution

    CBS Corp. and five directors asked the Delaware Chancery Court Wednesday to approve of a special committee decision to dilute CBS Corp.'s controlling shareholder Shari Redstone’s voting power at a meeting last week.

  • May 23, 2018

    Live Nation Inflated Income To Reward Execs, Investors Say

    An investor hit Live Nation Entertainment Inc. with a putative class action in New York federal court Wednesday, claiming the live entertainment giant falsely inflated its 2017 adjusted operating income to trigger $10.8 million in bonuses and stock awards to its top brass.

  • May 23, 2018

    Abbe Lowell Joins Winston Amid Norton Rose 'Conflicts'

    High-profile defense attorney Abbe Lowell is leaving Norton Rose Fulbright's investigations practice for a partnership at Winston & Strawn LLP and taking his clients, including Jared Kushner, with him, the firm announced on Wednesday.

  • May 23, 2018

    2nd Circ. Won't Review Cert. Denial In HSBC RMBS Suits

    A Second Circuit panel on Tuesday declined to review a New York federal judge’s decision against certifying two proposed classes of investors accusing HSBC Bank USA of failing to properly oversee an array of residential mortgage-backed securitization trusts.  

  • May 23, 2018

    CFTC Urges Markets To Keep Close Eye On Crypto Derivatives

    By urging exchanges to beef up their monitoring of cryptocurrency-based derivatives, lawyers say the U.S. Commodity Futures Trading Commission is seeking greater visibility into the underlying spot markets of virtual currencies in order to better fight market manipulation.

  • May 23, 2018

    'Dieselgate' Stalled Sales, VW Salespeople Say In Class Action

    News that Volkswagen rigged U.S. diesel emissions tests — a scandal sometimes referred to as “Dieselgate” — has harmed the “hardworking men and women who make their livelihood selling vehicles in the Volkswagen brand” and led to reduced sales, according to a consolidated class action filed in California federal court on Tuesday.

  • May 23, 2018

    Fried Frank Atty Who Left For SEC Rejoins Firm As Partner

    Fried Frank Harris Shriver & Jacobson LLP will bolster its corporate practice with a former U.S. Securities and Exchange Commission senior counsel who once worked at the firm as an associate, the firm announced Tuesday.

  • May 23, 2018

    Wall Street Banks Want Treasury Auction Rigging Suit Tossed

    A group of large Wall Street banks and a trading platform accused of rigging the $13 trillion market for securities sold by the U.S. Treasury Department have asked a New York federal judge to dismiss a lawsuit that alleges the scheme was conducted through two interrelated conspiracies, according to court filings entered Tuesday.

  • May 23, 2018

    Ex-State Street VP Wants Gov't Agreement Nixed From Trial

    Former State Street Corp. Vice President Ross McLellan asked a Massachusetts federal judge Tuesday to exclude the company’s deferred prosecution agreement from his trial, saying the corporate guilty plea was too prejudicial to be used as evidence that he swindled clients.

  • May 23, 2018

    IHeartMedia Gets OK To Secure Citibank Loan, Notes

    A Texas bankruptcy court Tuesday granted bankrupt radio giant iHeartMedia Inc. permission to secure its pre-Chapter 11 debt to priority noteholders and Citibank.

  • May 23, 2018

    Gibson Brands To Alter DIP Provisions After Court Comments

    Bankrupt guitar maker Gibson Brands Inc. told a Delaware judge on Wednesday that it will resume discussion with its senior lenders and noteholders on the terms of its debtor-in-possession financing package after the judge offered some insights as to how he would likely rule on certain provisions.

  • May 23, 2018

    Kickback Convictions Don’t Mean Valeant Is Off The Hook

    Valeant Pharmaceuticals International Inc. may have helped prosecutors secure a conviction for a former employee who took a $9.7 million kickback in exchange for pushing Valeant to buy a mail-order pharmacy, but that doesn’t mean the drugmaker won’t face liability over its ties to Philidor Rx Services, attorneys told Law360.

  • May 23, 2018

    Calif. 'Billionaire' Convicted For $3M Ponzi Scheme

    A Colorado federal jury has convicted a California man on multiple charges for his role in a scheme in which he and his co-conspirators duped investors into giving him $3 million to purportedly access billions of dollars he claimed were in an overseas bank account.

  • May 23, 2018

    Judge Chides Counsel Over 'Lack Of Candor' In Swaps Suit

    Investors can’t revive part of their suit accusing a slew of dealers of bullying competition in the interest rate swaps market, a New York federal judge said Wednesday, largely dismantling the putative class’ attempt to file a third amended complaint and rebuking its counsel for keeping the intended request under wraps.

  • May 22, 2018

    NY Lawmakers Tap Interim AG Underwood To Finish Term

    Acting New York Attorney General Barbara D. Underwood was tapped Tuesday by the state legislature to serve out the remainder of Eric Schneiderman’s term after he resigned earlier this month amid allegations of physical abuse by four women.

  • May 22, 2018

    Woodbridge Settles SEC Claims In $1.2B Investment Scheme

    The U.S. Securities and Exchange Commission has agreed to settle allegations against a slew of unregistered Florida-based funds called the Woodbridge Group of Cos. LLC, which the agency claimed were used in an alleged $1.2 billion scheme that duped more than 8,400 investors.

  • May 22, 2018

    SEC's Clayton Urges ICO Issuers To Reach Out To Agency

    U.S. Securities and Exchange Commission Chairman Jay Clayton on Tuesday encouraged all issuers of digital tokens to reach out to the agency he oversees with questions regarding whether their initial coin offerings are securities subject to SEC regulation.

  • May 22, 2018

    JPMorgan Brass Beat Derivative Suit Over Bank's RMBS Biz

    A shareholder derivative suit accusing a number of JPMorgan directors of having failed to properly oversee the bank’s subprime residential mortgage-backed securities business in the run-up to the financial crisis is too similar to another already-dismissed case to proceed, a New York federal judge said Monday.

  • May 22, 2018

    Hedge Fund Owner, Hotel Developer Resolve $2M Fraud Suit

    A hedge fund owner awaiting sentencing on related criminal charges has resolved civil claims in New Jersey federal court that he duped a hotel developer into giving him an almost $2 million investment — about half of which, he testified at trial, he thought he was permitted to spend on a residential mortgage for himself.

Expert Analysis

  • Trade Rep Hints At More CFIUS Scrutiny Of Biotech Deals

    Stephen Mahinka

    The Section 301 report issued in March by the United States Trade Representative highlighted foreign acquisitions and investments in the U.S. biotechnology industry. Counsel on both sides of a transaction in this sector should consider carefully whether involvement by foreign entities, especially from China, should be filed for review by CFIUS before closing, say Stephen Mahinka and Carl Valenstein of Morgan Lewis & Bockius LLP.

  • A Primer On Private Business Development Companies

    Cynthia Krus

    Financial sponsors and investors are seeking alternative investment products through which they can access the capital markets, and the private business development company is one such product that has recently been successful at raising capital. Here, Cynthia Krus and Kristin Hespos Burns of Eversheds Sutherland explain how private BDCs are formed and why they are desirable.

  • Kinross Settlement Highlights FCPA Risks For Mining Cos.

    Collmann Griffin

    In March, a Canadian gold and silver mining company agreed to pay nearly $1 million to the U.S. Securities and Exchange Commission over alleged violations of the U.S. Foreign Corrupt Practices Act. The case shows the risks faced by companies that fail to implement appropriate controls post-acquisition, particularly in the mining industry, says Collmann Griffin of Miller and Chevalier Chtd.

  • Electronic Roadshows: Why The Voice-Over Matters

    Steven Friend

    Recently, we have been involved in several registered Securities Act transactions in which the deal team considered posting slides to an electronic roadshow platform without a recorded voice-over from the issuer’s management. When confronted with this choice, members of the deal team are well-advised to think through the consequences, say attorneys with Hunton Andrews Kurth LLP.

  • Shareholder Arbitration Issue Isn't Going Away

    Kevin LaCroix

    In a recent letter to a member of Congress, U.S. Securities and Exchange Commission Chairman Jay Clayton said that he hasn't decided whether mandatory arbitration of shareholder disputes is appropriate, and that exploring the idea is not a priority for him. However, I believe the issue is going to require commission action sooner rather than later, says Kevin LaCroix of RT ProExec.

  • Introducing The Legal Industry To Millennial Business Owners

    Yaima Seigley

    ​The current business climate has produced vast opportunities for seasoned lawyers to create valuable connections with millennial business owners, but first lawyers must cleanse their palate of misconceptions regarding millennials, says Yaima Seigley of Isaac Wiles Burkholder & Teetor LLC.

  • How Not To Bungle Off-Cycle Engagements With Stockholders

    Ethan Klingsberg

    Many companies are now turning from annual meetings to off-cycle engagements with their institutional investors, but the risks are significant. On that account, we have compiled some guidelines and tips based on direct feedback from a spectrum of investors over the past six months, say Ethan Klingsberg and Elizabeth Bieber of Cleary Gottlieb Steen & Hamilton LLP.

  • 6 Ways To Manage International Regulatory Risk Under Trump

    Gregory Husisian

    Recent enforcement activity — including record-setting Foreign Corrupt Practices Act and economic sanctions penalties — confirms that the Trump administration is committed to the aggressive application of U.S. law abroad. Multinational companies need to prioritize managing the risks posed by laws governing U.S. exports and international conduct, say Gregory Husisian and Olivia Singelmann of Foley & Lardner LLP.

  • 5 Questions You Should Ask About Your Global Equity Awards

    William Woolston

    U.S. companies venturing into the world of global equity compensation confront a complex, cross-border web of rules and regulations. Victoria Ha and William Woolston of Covington & Burling LLP highlight five critical questions that can help U.S. companies navigate common legal pitfalls, with a focus on some of the most rapidly evolving areas of law.

  • Reaffirming Omnicare's Section 10(b) Protections

    Susanna Buergel

    In its recent decision in Martin v. Quartermain, the Second Circuit reiterated that meeting the Omnicare standard set forth by the U.S. Supreme Court in 2015 is no small task for investors. This strict application of Omnicare ensures that Section 10(b) jurisprudence remains focused on identifying truly fraudulent conduct, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.