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Securities

  • June 22, 2018

    Feds Can Use 'Material, Nonpublic Info' At Insider Trading Trial

    Two biostatisticians charged with insider trading cannot preclude prosecutors from saying “material, nonpublic information” at their imminent securities fraud trial in Boston, a federal judge ruled on Friday.

  • June 22, 2018

    BNY Mellon Slams ‘Broken' Atty Relationship In Cert. Fight

    The Bank of NY Mellon Corp. on Friday slammed a proposed class of trust beneficiaries’ bid for class certification in their suit accusing the bank of irresponsible investing and unauthorized tax preparation fees, claiming that lead counsel’s “irreconcilably broken” relationship with one of lead plaintiffs renders her an inadequate class representative.

  • June 22, 2018

    Deutsche Says Workers Rehashing Arguments In ERISA Suit

    Deutsche Bank has told a New York federal judge that a class of plan participants improperly attempted to rebut earlier arguments and exclude certain pieces of evidence on the eve of a July trial over their Employee Retirement Income Security Act claims that the bank wrongly invested their retirement savings in proprietary funds.

  • June 22, 2018

    High Court's Lucia Ruling Opens ALJs To Political Influence

    The U.S. Supreme Court’s finding that U.S. Securities and Exchange Commission administrative law judges need to be appointed by the president or the head of the agency potentially leaves the judges open to heightened political influence, legal experts said Friday.

  • June 22, 2018

    Investors Snap Back At Sunrun’s Exit Bid In Stock-Drop Suit

    Sunrun Inc. shareholders urged a California federal judge Thursday not to cast off their proposed class action alleging the company and two of its executives fudged customer cancellation numbers to keep stock trading high, saying the latest iteration of their complaint passes muster.

  • June 22, 2018

    Mud Slung In Conflicts Suit Against Madoff Victims’ Lawyer

    Disputes erupted in a New York courtroom Friday over a conflict-of-interest suit Bernie Madoff victims brought against their lawyer Helen Chaitman, with an attorney for the victims saying Chaitman is trying to dissuade her other clients from joining the case and her firms saying the victims' counsel should be disqualified because his mom and uncle are lead plaintiffs.

  • June 22, 2018

    CFTC Denies Brokerage's Claim It Flouted 'Norms' In Appeal

    The U.S. Commodity Futures Trading Commission urged the Ninth Circuit on Friday to revive a $290 million fraud case against metals brokerage Monex Credit Co., brushing aside the firm's claims that the agency skirted “professional norms” in its bid for a fast appeal.

  • June 22, 2018

    Labaton Asks For Judges' Communications In $75M Fee Fight

    Labaton Sucharow LLP, entangled in a messy fight over $75 million in attorneys' fees, asked a Massachusetts federal judge on Friday to compel a former judge to reveal ex parte communications between the two jurists, including those suggesting public corruption allegations that the firm has called “baseless.”

  • June 22, 2018

    Scottrade Seeks Fees For Litigating After Companion Suit Nix

    Discount brokerage firm Scottrade Inc. asked a Missouri federal court to award it attorneys’ fees for the past seven months of litigation in a proposed data-breach class action, which the company says should have been dropped after the Eighth Circuit upheld the dismissal of a companion suit.

  • June 22, 2018

    Ampal Looks To Curb Tax Liability From $1B Egypt Gas Award

    A trustee of bankrupt Ampal-American Israel Corp. urged a New York court to preserve the value of the company’s stake in a more than $1 billion arbitral award stemming from a terminated natural gas deal with Egypt, saying the court needs to halt transactions that could impact Ampal’s eventual tax liability.

  • June 22, 2018

    Mitel Investors Want More Info On $2B Searchlight Deal

    A pair of investors for business communications provider Mitel Networks Corp. have launched lawsuits against the company and its board of directors in New York federal court, accusing it of failing to disclose important information related to the company’s $2 billion acquisition by a Searchlight Capital Partners LP-led group.

  • June 22, 2018

    Relativity Media Investor Accuses CEO Of $12.5M Fraud

    A hedge fund investor ramped up his lawsuit against Ryan Kavanaugh, the CEO of the twice-bankrupt Relativity Media, in an amended complaint filed in California court Thursday, upping his damages request five-fold to $12.5 million and seeking punitive damages.

  • June 22, 2018

    Cohen Milstein, Levi & Korsinsky To Lead Credit Suisse Suit

    A New York federal judge on Thursday appointed Cohen Milstein Sellers & Toll PLLC and Levi & Korsinsky LLP to lead a putative class of Credit Suisse investors alleging the bank misrepresented the value of certain short-term notes during a critical time of steep price drops and substantial investor losses.

  • June 21, 2018

    Big Banks Could Keep Lending In Big Recession, Fed Says

    The latest round of supervisory stress testing shows the nation’s nearly three dozen biggest banks would see significant losses during a severe global recession but would be able to keep credit flowing to households and businesses, the Federal Reserve said Thursday.

  • June 21, 2018

    Merrill Lynch Lost-Stock Row May Not Be Revived In Court

    A California federal judge on Thursday seemed likely to toss a proposed class action alleging Merrill Lynch breached its fiduciary duty to its clients by losing their shares of various stocks, saying the named plaintiff had already arbitrated the same issue.

  • June 21, 2018

    Liberty Withdraws $1.16B Offer For 40% Of IHeartMedia

    Liberty Media has taken a much talked-about $1.16 billion offer for a 40 percent slice of iHeartMedia off the table, according to a Thursday court filing, leaving the bankrupt radio giant with no outside funding source as it seeks to cut $10 billion from its swollen balance sheet.

  • June 21, 2018

    LendingClub Says Del. Investor Suit Not Ready For Prime Time

    LendingClub Corp. asked the Delaware Chancery Court on Wednesday to dismiss or stay a stockholder derivative suit against the company pending resolution of other investor litigation, including a proposed $125 million class settlement in California.

  • June 21, 2018

    Narrow High Court Ruling In Lucia Raises Questions For SEC

    The U.S. Supreme Court’s “narrow” ruling that U.S. Securities and Exchange Commission administrative law judges are inferior officers subject to the appointments clause of the Constitution leaves open the question of how the SEC — and other federal agencies that use ALJs — will resolve cases handled by improperly appointed judges, legal experts said Thursday.

  • June 21, 2018

    HCR ManorCare Presents New Ch. 11 Plan with Better Deal

    Assisted living company HCR ManorCare Inc. returned to Delaware bankruptcy court Thursday to receive approval for an updated Chapter 11 plan that will increase recoveries for equity holders if the acquirer of the debtor’s assets closes a merger of its own.

  • June 21, 2018

    Breitling 'Frack Master' Arrested On $62M Fraud Charges

    The self-proclaimed “Frack Master,” who is the CEO of Breitling Energy Corp., has been arrested on charges he defrauded investors out of $62 million to fund a lavish lifestyle filled with luxury vehicles, private jets and expensive jewelry, according to a statement Thursday from U.S. Attorney Erin Nealy Cox.

Expert Analysis

  • A Survey Of LLC Director Obligations In Delaware: Part 1

    Gail Weinstein

    Recent cases suggest that Delaware courts extend a high degree of deference to limited liability company and partnership agreement provisions. But importantly, the facts and circumstances can also very much affect a court’s decision, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Checkbook IRAs And Digital Assets: A Bet Against The House

    Seth Pierce

    Since a 2014 tax ruling that permits holding digital currency in tax-deferred retirement accounts, investment companies have sprung up encouraging people to roll their traditional retirement investments into cryptocurrencies. But investment vehicles of dubious legality may lead to loss of tax deferral and penalties for early withdrawal, says Seth Pierce at Mitchell Silberberg & Knupp LLC.

  • Mid-2018 Sanctions Review: A Turbulent Year So Far

    Ama Adams

    No superlative could aptly describe the magnitude of U.S. sanctions developments through the first six months of 2018. The pace of change has been so intense and complex that, understandably, even the most sophisticated international companies and investors have been challenged to respond to policy and regulatory developments, say attorneys with Ropes & Gray LLP.

  • Opinion

    BigLaw's Associate Salary Model Is A Relic Of A Bygone Era

    William Brewer

    Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.

  • Opinion

    Nasdaq Blockchain Test Shows Regulators Need To Catch Up

    Harvey Kesner

    A Nasdaq executive recently said that the exchange is “all in” on using blockchain and that it is actively embracing the technology. But our immutable regulatory structure might very well prevent even Nasdaq from its goals, says Harvey Kesner of Sichenzia Ross Ference Kesner LLP.

  • When An Activist Designee Joins Your Board

    Melissa Sawyer

    It has become more common for companies approached by credible activists to ultimately provide the activist with a board seat. The extent to which that relationship can be constructive depends, to some degree, on whether the company used a scorched-earth approach to defend itself against the activist at the outset, say Melissa Sawyer and Marc Treviño of Sullivan & Cromwell LLP.

  • China Agritech: More Than Meets The Eye

    Erica Rutner

    There is no doubt that the U.S. Supreme Court’s decision in China Agritech v. Resh squarely precludes the viability of untimely successive class actions. But what impact might it have on the viability of timely filed successive class actions? Erica Rutner of Lash & Goldberg LLP explores the question.

  • Removing 'Control' From FINRA Quantitative Unsuitability

    Thomas Potter

    The Financial Industry Regulatory Authority recently proposed to remove a broker’s “control” of a securities account as an element that must be proven to demonstrate a “quantitative suitability” violation under Rule 2111. This proposal would return the suitability rules to their roots, says Thomas Potter of Burr & Forman LLP.

  • #MeToo At Law Firms And What We Can Do About It

    Beth Schroeder.JPG

    While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.

  • Managing Uncertainty In The SEC Fair Fund Process: Part 2

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    To cope with the uncertainty inherent in the U.S. Securities and Exchange Commission's complicated fair fund distribution process, respondents can take six actions that will reduce the organizational burden and ultimately shave time, maybe even years, off the distribution timeline, says Alan Friedman of Charles River Associates.