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Securities

  • December 17, 2018

    Ex-SocGen Exec In Libor-Rigging Row Disputes Fugitive Label

    Attorneys for a former Société Générale SA executive accused of falsifying the Paris bank's submissions to the London Interbank Offered Rate argued Monday that living in France doesn't make their client a fugitive and urged a New York judge to consider the case's constitutionality.

  • December 17, 2018

    Facebook Data Suit Paused To Allow Chancery Records Trial

    A derivative suit targeting Facebook CEO and Chairman Mark Zuckerberg and other leaders of the social media empire for allowing user data breaches related to the Cambridge Analytica scandal will be paused after a Delaware Chancery Court judge said Monday that a books and record suit should be completed first to help prepare the best possible breach of fiduciary duty complaint.

  • December 17, 2018

    Bank Exec Seeks Time Served After FATCA Conviction

    The former CEO of the offshore Loyal Bank Ltd. asked a Brooklyn federal judge on Monday to let him avoid prison after he admitted helping a purported fraudster hide income from United States authorities in the first conviction under the Foreign Account Tax Compliance Act of 2010.

  • December 17, 2018

    Fordham Prof. Seeks $575K Fee For Goldman Pay Objections

    An activist investor and Fordham University School of Law professor asked the Delaware Chancery Court to approve a $575,000 attorneys' fee bid for having raised fairness objections that helped sink a settlement agreement in a stockholder suit challenging the pay of Goldman Sachs Group Inc.'s nonemployee directors.

  • December 17, 2018

    DOJ Faults McKinsey Disclosures In Westmoreland Ch. 11

    The U.S. Trustee’s Office has asked a Texas bankruptcy court to turn down Westmoreland Coal Co.’s request to hire McKinsey Recovery and Transformation Services as a Chapter 11 adviser, saying the consulting firm’s disclosures are insufficient.

  • December 17, 2018

    SEC Fines Santander Unit $1.5M Over Auto Loan Accounting

    The U.S. Securities and Exchange Commission said Monday that a vehicle finance arm of Spanish banking giant Santander will pay a $1.5 million fine to settle agency claims over alleged errors in its accounting for subprime auto loan losses.

  • December 17, 2018

    Ex-Pres Of Energy Co. Gets 3.5 Years For $2.3M Lease Scam

    A Texas federal judge on Monday denied a bid from the former president of an oil and gas company to withdraw his guilty plea to fraud charges, rejected his argument that no investors were actually defrauded in a lease scam and sentenced him to 42 months in prison.

  • December 17, 2018

    BNY To Pay $54M To Settle Claims It Mishandled ADRs

    Bank of New York Mellon has agreed to pay more than $54 million to settle U.S. Securities and Exchange Commission charges that the bank improperly handled thousands of “pre-released” American depositary receipts in violation of the Securities Act of 1933, the agency said Monday.

  • December 17, 2018

    Facebook Says Cambridge Analytica Episode Is Old News

    Facebook Inc. has urged a California federal court to dismiss investors’ claims that the value of their stock declined following reports that it hadn’t ensured Cambridge Analytica deleted user data it harvested, saying the public had known about the data harvesting for years.

  • December 17, 2018

    UBS Fined $15M For Weak Money Laundering Detection

    Three U.S. regulatory bodies hit two American units of Swiss banking giant UBS Group AG with $15 million in fines Monday for not investing in resources necessary to combat money laundering since at least 2004, the agencies said in coordinated announcements.

  • December 17, 2018

    Stock Fraudster Finally Appears In Court After 5 No-Shows

    A man who pled guilty to a $1.6 million fraud scheme and then failed to show up five times for sentencing finally appeared in Boston federal court Monday, albeit in handcuffs and an orange jumpsuit after he was arrested in North Carolina last month.

  • December 17, 2018

    Malaysia Hits Goldman, Bankers With Criminal 1MDB Charges

    Malaysian prosecutors filed criminal charges Monday against units of Goldman Sachs Group Inc. and several individuals for their alleged roles in a multibillion-dollar fraud on Malaysia's sovereign wealth fund, 1Malaysia Development Berhad.

  • December 17, 2018

    Ex-Linkwell Execs Face Sanctions For Deposition No-Shows

    A Florida federal judge said Monday she would recommend sanctions against two former Linkwell Corp. executives for refusing to show up for depositions in an investor suit accusing them of conspiring with Sidley Austin LLP to craft two mergers that allowed them to abscond with Linkwell’s main moneymaker while freezing out shareholders.

  • December 17, 2018

    Credit Suisse Loses Bid To Send Ala. Inverse VIX Suit To NY

    An Alabama federal judge said Saturday he will not transfer a locally filed lawsuit, which accuses Credit Suisse of misrepresenting the value of certain short-term notes during a critical time of steep price drops, to New York’s Southern District, nor will he put the suit on pause while a similar action in Manhattan plays out.

  • December 17, 2018

    Health Care Co. Hid $1B Tax Debt Before Merger: Investors

    A pair of pension funds investing in health care company Centene sued the company Friday, claiming it concealed financial problems with its $6.8 billion acquisition of Health Net, including Health Net’s liability for over $1 billion in California taxes.

  • December 17, 2018

    Apparel Retailer J. Jill Says Investor Suit Lacks Substance

    Investors have no grounds to bring three consolidated suits against women's apparel company J. Jill, the retailer argued Monday in Boston federal court, suggesting they were reading too much into a conference call statement by the company's chief financial officer in an attempt to say he failed to disclose warning signs of a downturn after an initial public offering.

  • December 17, 2018

    Investors Sue Over Fake Crypto Investment Club Scheme

    A cryptocurrency investment club operated by a father and son team sold fake digital assets and then used the proceeds for their own personal exploits, according to four investors who claim they were scammed out of tens of thousands of dollars in a suit filed in Illinois federal court Friday.

  • December 17, 2018

    Wilmington Trust Execs Get 6-Year Prison Terms For Fraud

    Two former Wilmington Trust Corp. executives were ordered to prison for six years by a U.S. District Court judge in Delaware on Monday, the first of four bank officials to be sentenced after their conviction for a Great Recession securities fraud scheme that effectively broke the regional financial institution.

  • 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.

Expert Analysis

  • A Series Of 1st-Time Crypto Actions For The SEC

    David Zaslowsky

    November was an especially aggressive month for the U.S. Securities and Exchange Commission in terms of cracking down on unauthorized digital activities. Three enforcement actions described as "firsts" demonstrate that the SEC will be using all of the tools in its toolkit, say attorneys with Baker McKenzie.

  • Series

    Judging A Book: Mills Reviews 'Mississippi's Federal Courts'

    Judge Michael Mills

    ​​David M. Hargrove's​ new book​,​ "Mississippi’s Federal Courts: A History," is a remarkably candid portrait of the characters and courts serving the state's federal judiciary from 1798 on, and contributes new scholarship on how judges were nominated during the civil rights era, says U.S. District Judge Michael Mills of the Northern District of Mississippi.

  • 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.