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Securities

  • February 15, 2019

    Puerto Rico Fed Board Was Illegally Appointed: 1st Circ.

    The federal board charged with overseeing Puerto Rico’s financial overhaul and addressing its debt crisis was unconstitutionally appointed and must either be confirmed by the U.S. Senate or replaced in accordance with the law within the next 90 days, the First Circuit ruled Friday.

  • February 15, 2019

    Sears Creditors May Probe Sale Of $900M In Debt To Cyrus

    Creditors of Sears Holding Corp. were given the green light on Friday to investigate the bankrupt retailer's sale of $900 million in intercompany debt to a major lender, with a New York bankruptcy court approving requests to issue a slew of subpoenas and conduct discovery.

  • February 15, 2019

    2nd Circ. Says Fraudster's DUIs Don't Merit Harsher Sentence

    The Second Circuit ordered a lower judge to resentence securities fraudster Scott Valente on Friday, saying the judge had put too much weight on Valente’s drunk driving-related offenses in his calculation of the sentencing guidelines before giving him 20 years in prison.

  • February 15, 2019

    Ex-Hedge Funder Avoids More Prison For KIT Digital Fraud

    An incarcerated former hedge fund boss was spared additional prison time Friday for his role in a multipronged securities fraud scheme involving KIT Digital Inc., with a Manhattan federal judge citing his cooperation in two trials that led to the convictions of the video technology startup's CEO and others.

  • February 15, 2019

    China Luxury Car Dealer Says Securities Suit Lacks Legal Heft

    The officers of an imported high-end vehicles dealership that does business in China asked a Nevada federal judge Friday to toss a shareholder's claims they're mismanaging their business at the investor's expense, arguing that the entire complaint is based on vague allegations that fall below legal standards.

  • February 15, 2019

    SEC Charges 4 In Elaborate Microcap Stock Fraud

    The U.S. Securities and Exchange Commission filed suit on Friday against four individuals and businesses in their control for allegedly conducting a pair of elaborate fraud schemes in which fake debt notes for microcap companies were converted into stock and then sold to the public at a profit.

  • February 15, 2019

    SEC Nudges Cos. Toward More Robust Diversity Disclosures

    The U.S. Securities and Exchange Commission is encouraging companies to reveal more about how they consider diversity when composing their boards of directors, a move that could shed more light on a topic that Congress and certain large shareholders are increasingly scrutinizing.

  • February 15, 2019

    Jurisdiction Key In 2nd Circ.'s Reviving Of US Bank-BofA Row

    The Second Circuit on Friday revived U.S. Bank's New York federal court suit seeking to make Bank of America buy back a $9 million mortgage loan from a commercial mortgage-backed securities trust, ruling that the case shouldn't be sent back to where it began in Indiana but should be decided under Hoosier state law.

  • February 15, 2019

    In Spending Plan, CFTC Gets Funding Boost, SEC Can Move

    Wall Street regulators fared well in Friday’s spending package, with the Commodity Futures Trading Commission securing its first budget increase in four years and the U.S. Securities and Exchange Commission receiving tens of millions of dollars more than it bargained for, including cash to relocate in Manhattan.

  • February 15, 2019

    Goldman Launches 2nd Appeal Of Class Cert. In 2nd Circ.

    A New York federal judge incorrectly recertified a class of investors who accused Goldman Sachs Group Inc. of lying about its ethical compliance efforts before it lost $1 billion in securities known as collateralized debt obligations, the Wall Street giant argued in its appeal to the Second Circuit on Friday.

  • February 15, 2019

    Investor Reaffirms Suit Accusing Akorn Execs Of Deceit

    An Akorn Inc. investor told an Illinois federal court the pharmaceutical company's executives should not be able to dodge a suit alleging they lied in public statements for their own benefit, concealed regulatory problems and sunk a major merger deal with their inept behavior.

  • February 15, 2019

    Bristow Hit With Stock-Drop Suit Over SEC Disclosures

    Bristow Group Inc., a Houston-based provider of aviation services for oil companies and search and rescue efforts, was hit with a lawsuit Thursday in Texas federal court alleging its stock price declined due to its failure to disclose deficiencies in its financial reporting procedures.

  • February 15, 2019

    Molson Coors Artificially Inflated Stock Price, Investor Claims

    An Illinois man claims Molson Coors Brewing Co. artificially inflated its stock price by misstating its tax liability by almost $248 million in documents filed during 2017 and 2018, and filed a class action Friday in Colorado federal court.

  • February 15, 2019

    Ex-Goldman Exec Agrees To Face 1MDB Charges In US

    Former Goldman Sachs Group Inc. managing director Roger Ng Chong Hwa has agreed to be extradited from Malaysia to the U.S. to face charges of conspiring to misappropriate more than $2.7 billion from Malaysia's sovereign wealth fund, 1Malaysia Development Berhad.

  • February 15, 2019

    Exec Used EB-5 Cash For BMW, Loans, Wash. Court Holds

    The head of a development company was “‘consciously’ reckless” when he diverted money raised from investors through the EB-5 visa program so he could make payments on his BMW and issue loans to relatives, misappropriating at least $6.5 million, a Washington federal judge held on Friday.

  • February 15, 2019

    Ex-Vinson & Elkins Atty Joins Pillsbury In NY

    Pillsbury Winthrop Shaw Pittman LLP has added a former Vinson & Elkins LLP commercial litigator to its New York City office as a partner.

  • February 15, 2019

    Judge OKs $3.5M Deal In Charter School Shareholder Suit

    K12 Inc. will pay $3.5 million to settle claims by investors that its top brass violated securities law by hiding inflated attendance figures and publishing false data about academic success, according to a deal signed Thursday.

  • February 15, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen the European arm of a Japanese investment bank sue a Saudi billionaire, the former prime minister of Qatar face action involving a pricey mansion and a Swiss bank file claims against executives of a defunct business group being investigated by the U.K.'s fraud watchdog. Here, Law360 looks at those and other new claims in the U.K.

  • February 15, 2019

    GoPro Will Pay $6.75M To End Stock Drop Suit

    A proposed class of investors suing GoPro Inc. for allegedly concealing missteps that caused its stock to drop have asked a California federal court to approve a $6.75 million settlement to put those claims to rest, calling the deal an "excellent result."

  • February 15, 2019

    Sprawling $1B Platinum Case Finally Going To Trial

    The $1 billion fraud case against four insiders at failed hedge fund manager Platinum Partners is going to trial in Brooklyn on Tuesday, setting up a courtroom showdown two years in the making.

Expert Analysis

  • Oxbow: Alignment Is Key In Put Valuation Processes

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    The recent Oxbow Carbon Unitholder Litigation demonstrated many common put valuation issues, but also how an alignment mechanism can foster cooperation despite a highly adversarial relationship, say Kyle Gann and Jason Osborn of Winston & Strawn LLP.

  • How Newly Broadened Venezuela Sanctions Affect Securities

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    The U.S. Treasury Department’s Office of Foreign Assets Control recently amended the general licenses that authorize dealings in bonds and securities otherwise prohibited by U.S. sanctions on Venezuela — apparently to target parties that would facilitate transactions between Petróleos de Venezuela SA securities holders and blocked individuals, say attorneys at Hunton Andrews Kurth LLP.

  • Maker-Taker Fees In A Fragmented Equity Market

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    Competing U.S. equity exchanges attract liquidity by offering rebates to orders that make liquidity, and charging fees to orders that take liquidity, which may distort brokers’ incentives against their fiduciary duty. Such maker-taker fees are likely to attract further scrutiny from regulators and courts, say Ilan Guedj and Zhong Zhang of Bates White LLC.

  • SEC Should Revisit Its Special Purpose Acquisition Co. Regs

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    Although the U.S. Securities and Exchange Commission has removed some roadblocks to capital formation, it has not taken a fresh look at special purpose acquisition companies in over a decade — leaving operating companies that go public by merging with SPACs saddled with unnecessary restrictions, says Carol Anne Huff of Kirkland & Ellis LLP.

  • PCAOB Enforcement Actions Decline As Board Faces Change

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    Along with the appointment of five new members and other personnel changes at the Public Company Accounting Oversight Board, last year saw fewer settled disciplinary orders made public by the board. The decline is consistent with the trend at the U.S. Securities and Exchange Commission, says Robert Cox of Briglia Hundley PC.

  • Fresh Takes On Seeking Costs And Fees Under Rule 45

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    Recent case law reveals that courts vary widely in their approaches to shifting the costs and fees incurred in responding to a Federal Rule of Civil Procedure 45 subpoena. Nonparties responding to such requests should consider certain district court trends, say attorneys at Pepper Hamilton LLP.

  • 10th Circ. Engages Superstorm Scalia With New 'Monsoon'

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    The Tenth Circuit's recent extraterritorial application of securities law against Traffic Monsoon LLC and its founder was arguably inconsistent with the statutory text being examined. This case could bring the crux of Justice Antonin Scalia’s opinion in Morrison v. National Australia Bank back to the U.S. Supreme Court, says Timothy Work of Steptoe & Johnson LLP.

  • Series

    Judging A Book: Smith Camp Reviews 'Echo Of Its Time'

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    "Echo of Its Time" is the story of Nebraska’s federal district court from statehood in 1867 to the demise of Prohibition in 1933. Professors John Wunder and Mark Scherer have written an objective, unsentimental and insightful history, layered with context and rich in character study, says U.S. District Judge Laurie Smith Camp of the District of Nebraska.

  • Securities Class Action Filings Show No Signs Of Abating

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    The number of securities class action filings has remained high over the last year, and this trend is likely to continue, particularly if the markets remain volatile. But the good news for corporate America is that the number of dismissals also appears to be increasing, say attorneys at Skadden Arps Slate Meagher & Flom LLP.

  • Momentive Disrupts Intercreditor Agreements And Reorgs

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    The Momentive decision in the Southern District of New York, which warned against allowing senior secured creditors to “completely disable debtors from restructuring” and “scavenge on all assets in bird’s-eye view,” may have the unintended consequence of doing just that, say Adam Shiff and Shai Schmidt of Kasowitz Benson Torres LLP.