Securities

  • October 18, 2019

    BofA, Citizens Bank Defeat Investors' $102M Ponzi Suit

    A New York federal judge on Friday tossed out a suit brought by a proposed class of investors claiming Bank of America and Citizens Bank facilitated a $102 million Ponzi scheme, finding the investors hadn't plausibly alleged the banks knew about the scheme.

  • October 18, 2019

    Ex-Credit Suisse Exec Tells Of Hidden Ploy To Aid $2B Fraud

    A former Credit Suisse investment banker on Friday testified of how he continued in secret to push through a deal at the bank that prosecutors say was part of a $2 billion fraud and kickback scheme involving loans to Mozambican state-backed companies, even after he left the Swiss lender.

  • October 18, 2019

    McKesson Faces Uphill Fight To Toss Investor Price-Fix Suit

    A California federal judge appeared skeptical Friday of McKesson Corp.'s bid to toss investors' claims that they were misled as part of its alleged participation in an industry-wide conspiracy to drive up generic drug prices, saying the proposed class had adequately stated that the drug company's alleged lies caused them harm.

  • October 18, 2019

    Hertz Ex-CFO To Settle $70M Mismanagement, Exec Pay Suit

    Hertz’s former chief financial officer has struck a deal to exit a lawsuit accusing her and two other executives of refusing to give back $70 million in incentive bonus payments after an accounting scandal prompted a federal investigation and cost the company $200 million.

  • October 18, 2019

    Squire Patton Adds International Arbitration Partner In NY

    Squire Patton Boggs LLP has added a former Womble Bond Dickinson partner to its international dispute resolution practice group in New York, gaining an experienced attorney who works on both commercial and investment-treaty disputes.

  • October 18, 2019

    Landmark Exxon Climate Change Case Heads To Trial

    Exxon Mobil will go to trial in Manhattan on Tuesday to fight claims it deceived investors about climate change risks to its business, the culmination of a multiyear, publicly fought battle between New York state and the oil giant. Here's a cheat sheet on what to expect in one of the most significant corporate fraud trials in recent years.

  • October 18, 2019

    Investment Banks Can't Escape FDIC Suit Over RMBS

    A New York federal judge ruled Friday that investment banking units of Credit Suisse, Deutsche Bank and three other major European banks must face Federal Deposit Insurance Corp. claims over about $90 million in allegedly toxic crisis-era residential mortgage-backed securities bought by two now-failed community banks.

  • October 18, 2019

    US Trustee Asks Court To Reject Emerge Liability Releases

    The U.S. Trustee's Office has objected to the litigation releases in bankrupt fracking sand miner Emerge Energy Services LP's plan for Chapter 11, saying they release an excessively-broad range of parties without the affirmative consent of creditors.

  • October 18, 2019

    Dova Pharma Hit With Investor Suit Over $915M Sobi Tie-Up

    A Dova Pharmaceuticals Inc. investor filed a proposed class action Friday in Delaware federal court asserting the company has violated securities laws by not filing enough information about its proposed $915 million tie-up with biopharmaceutical company Swedish Orphan Biovitrum.

  • October 18, 2019

    Activision Escapes Suit Over Split With Game Developer

    Video game company Activision Blizzard Inc. ducked a suit Thursday over its breakup with longtime business partner Bungie LLC after a California federal judge reversed his previous decision to keep the proposed class action alive.

  • October 18, 2019

    SEC Delays Action on Nasdaq's Direct Listing Proposal

    The U.S. Securities and Exchange Commission on Thursday said it will take an additional 45 days to review a proposal by Nasdaq to change the direct listing requirements for companies that wish to go public.

  • October 18, 2019

    Crypto Co. Parent Seeks Own Exit From Market 'Hijacking' Suit

    Bitmain Technologies Holding Co. asked a Florida federal judge on Thursday to dismiss it from claims that its bitcoin mining subsidiaries hijacked a cryptocurrency software upgrade to wrest control of the Bitcoin Cash network.

  • October 18, 2019

    Robbins Geller Named Lead Counsel In FedEx Hacking Suit

    Robbins Geller Rudman & Dowd LLP will be lead counsel in a proposed shareholder class action over the financial effects of a massive cyberattack on FedEx Corp.'s European unit, a New York federal judge ruled Friday.

  • October 18, 2019

    3rd Stock Drop Suit Faults ‘Erratic' Overstock.com Founder

    A third suit filed this fall in Utah federal court aims to hold Overstock.com's departed founder and CEO and his former chief financial officer responsible for a major stock price tumble after a series of "erratic" choices by the CEO ended with his ouster and subsequent sell-off of his stake in the company.

  • October 18, 2019

    7 Questions For MarketAxess’ GC For Europe And Asia

    Miranda Morad, MarketAxess’ general counsel for Europe and Asia, talks to Law360 about the changing relationship between legal and compliance, the different career routes available to attorneys seeking senior positions, and the burgeoning role of technology in her sector.

  • October 18, 2019

    Welbilt Moves To Exit 'Fraud By Hindsight' Stock-Drop Suit

    Commercial food service equipment company Welbilt Inc. urged a Florida federal judge Thursday to toss a proposed class action accusing it of filing faulty reports to regulators, arguing its investors’ claims amount to “fraud by hindsight” regarding errors made over a decade ago.

  • October 18, 2019

    Highland Capital Under Fire To Have Ch. 11 Trustee Take Over

    An attorney overseeing a former Highland Capital affiliate's Texas insolvency told a Delaware bankruptcy judge Friday she will likely press for appointment of a Chapter 11 trustee for Highland's newly filed case, citing a litany of fraudulent transfer allegations involving the company in both states.

  • October 18, 2019

    Denmark Can Use UK Docs In Foreign Tax Fraud Litigation

    Denmark’s tax authority received permission from a London court Friday to use documents from its $1.9 billion fraud suit in England against over 70 individuals and companies to boost its case in parallel proceedings in the U.S., Denmark, Malaysia and Dubai.

  • October 18, 2019

    Barclays Fraud Trial Jury Told To Ignore Bankers' Bad Jokes

    Defense counsel urged jurors hearing fraud charges against former Barclays executives Friday not to be distracted by “poor taste humor” in which the bankers joked about the possibility of ending up in jail over plans to raise money from Qatar during the financial crisis.

  • October 18, 2019

    SFO Closes Libor-Rigging Probe Without More Charges

    The U.K.'s Serious Fraud Office said Friday it had ended its investigation into the manipulation of Libor without bringing any further charges in the far-reaching scandal over the key benchmark interest rate.

  • October 17, 2019

    Law360's The Term: Puerto Rican Debt Crisis, DC Sniper

    On this episode of The Term, the team takes a look at two of the last cases that the U.S. Supreme Court heard in October, one involving Puerto Rico's historic $125 billion debt crisis and the other about the younger D.C. sniper's bid to reduce his life sentence.

  • October 17, 2019

    Ex-Credit Suisse Exec Says He Cashed In On $2B Loan Fraud

    Jurors in the trial of Privinvest executive Jean Boustani, who’s accused of a $2 billion Mozambican government loan fraud scheme, on Thursday heard a former Credit Suisse managing director describe how he worked to pile more debt on state-backed companies, which fueled his stream of kickbacks.

  • October 17, 2019

    Ex-Biotech Exec Agrees To Penalty For Deceiving Auditors

    The U.S. Securities and Exchange Commission announced Thursday that the former business chief of Osiris Therapeutics Inc. has agreed to pay $40,000 to exit a case accusing him and other executives of duping an auditor into allowing the biotech company to book fake revenue.

  • October 17, 2019

    Gannett Investor Sues To Block $1.4B New Media Tie-Up

    A Gannett investor is looking to block an upcoming stockholder vote on the company’s proposed $1.4 billion merger with New Media, citing “misrepresentations and omissions” the company allegedly made in U.S. Securities and Exchange Commission filings, according to a suit filed Thursday.

  • October 17, 2019

    Libra, Facing Pressure, Urged To 'Persevere' By GOP Sen.

    Amid a barrage of criticism and defections, the Libra Association received a major show of support as Republican Sen. Michael Rounds of South Dakota applauded the Libra project’s goal of expanding access to banking services, urging members to “persevere” in a Thursday letter.

Expert Analysis

  • What Do Market Overreactions Mean For Securities Litigation?

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    The possible overreaction of stock prices to public company corrective disclosures could have implications on securities fraud litigation when it comes to proving reliance on that information, applying the fraud-on-the-market doctrine, and relying on market efficiency, say David Marshall and Roland Eisenhuth at Epsilon Economics.

  • New Data Shows BigLaw's True Profitability

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    Based on an analysis adjusting BigLaw operating income and revenue to account for equity partners and taxes, the profitability of firms is lower than commonly thought, says Madhav Srinivasan at Hunton.

  • Mylan Case Shows SEC Stance On Disclosing Investigations

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    The U.S. Securities and Exchange Commission's recently settled action against Mylan — for failing to promptly disclose an investigation into the drugmaker's EpiPen — provides insight for public companies weighing whether and when to disclose government investigations, say attorneys at Cleary Gottlieb.

  • SEC's Lax Crypto Settlement Marks Unexplained Policy Shift

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    The cryptocurrency markets could use clarity on why the U.S. Securities and Exchange Commission took such a lenient approach in its recent settlement over Block.one's unregistered coin offering, and what it means for crypto regulation going forward, say attorneys at Wilson Sonsini.

  • Why Trump's Orders On Agency Guidance Are Significant

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    ​Two recent executive orders ​​on the use of guidance documents by federal agencies​ represent a major change for virtually every executive agency ​and a historic assertion of the president’s authority under Article II to oversee the independent regulatory agencies, says Paul Noe, former counselor to the administrator of the White House Office of Information and Regulatory Affairs.

  • Will PCAOB's New Audit Rule Trigger Shareholder Litigation?

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    Shareholder litigation risk from the Public Company Accounting Oversight Board's new audit disclosure requirements hinges on whether critical audit matter reporting can cause a stock price decline, and whether the U.S. Supreme Court's Lorenzo opinion spurs more critical audit matter claims, say analysts at Cornerstone Research.

  • FX Fraud Decision Tests Limits Of Right-To-Control Theory

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    In United States v. Johnson, the Second Circuit’s decision affirming an ex-HSBC foreign exchange trader's wire fraud conviction highlights that the government and courts may not agree on the government's burden to prove tangible economic harm under the so-called right-to-control theory, say attorneys at White & Case.

  • Opinion

    Courts Keep Rejecting Litigation Funding Discovery Campaign

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    As shown by recent case law, including a New Jersey federal court holding last month in Valsartan Products Liability Litigation, there is no "shifting tide" in favor of disclosing litigation funding arrangements, say Matthew Harrison and Stephanie Southwick of Bentham IMF.

  • How Emotionally Intelligent AI Could Assist With E-Discovery

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    While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

  • FinCEN 'Travel Rule' Update Sets Challenges For Crypto Cos.

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    It is unclear how the virtual currency sector will find a practical way to comply with the recent expansion of the Financial Crimes Enforcement Network regulation known as the travel rule, but any solution is likely to have both unintended consequences and unintended benefits, say attorneys with King & Spalding.

  • Rebuttal

    Data Pinpoints Expert Valuation Differences In Del. Appraisals

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    A recent Law360 guest article called on experts in appraisal proceedings to present valuations closer to deal price, but an examination of 20 cases involving disinterested transactions of public targets indicates this call to action is more apt for petitioner valuations than those of respondents, says Michael Cliff at Analysis Group.

  • Preventable Risks Your Law Firm May Be Overlooking

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    Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

  • Data Privacy Compliance Best Practices For Asset Managers

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    An asset manager can more nimbly engage with the nuances of new data privacy legislation by following a best practices model, developed through universal protocols, that can more readily be adapted to comply with a variety of laws, say attorneys at Ropes & Gray.

  • 6 Ethics Tips For Attorneys Making Lateral Transfers

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    With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

  • Rebuttal

    Mutual Funds Should Consider Shareholder Litigation

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    A recent Law360 guest article attempts to dissuade mutual funds from engaging in shareholder litigation, but it ignores the practical realities of how, under the right circumstances, it often makes sense for mutual funds to participate, say attorneys at Labaton Sucharow.