• March 23, 2018

    Citigroup ADR Holders Get Partial Class Cert. In FX Suit

    A New York federal judge granted class certification Thursday to holders of just three of the 35 American depository receipts originally named in a putative class action accusing Citigroup Inc. and its affiliates of manipulating the exchange rate when providing dividends from foreign companies to ADR holders.

  • March 23, 2018

    Justices May Take Narrow View Of Widening 'American Pipe'

    The U.S. Supreme Court on Monday is slated to consider whether its own doctrine should allow plaintiffs in certain instances to file new class actions after the deadline to do so has passed, an idea that some lawyers say may face a chilly reception from the bench.

  • March 23, 2018

    Deutsche Bank Plan Fiduciaries Push To Pare ERISA Suit

    Fiduciaries of a Deutsche Bank employee benefits plan accused of steering investments into underperforming proprietary funds that paid the bank high fees pressed their case for a partial quick win in New York federal court on Friday.

  • March 23, 2018

    Drugmaker's Investors Sue For Books On $885M In Sanctions

    AmerisourceBergen Corp. investors opened a books and records demand lawsuit Friday in Delaware Chancery Court, saying the company failed to provide requested information about unlicensed operations and regulatory violations that drew $885 million in fines last year.

  • March 23, 2018

    Breitburn Earns Court Approval Of Amended Ch. 11 Plan

    Breitburn Energy Partners LP on Friday overcame a final hurdle in its lengthy quest to reorganize in bankruptcy, receiving court approval of a modified Chapter 11 plan after bumping up the levels of recovery for retail bondholders and other unsecured creditors.

  • March 23, 2018

    Kids' Drink Co. Hit With Shareholder Suit Over Dissolution

    A group of investors in the children’s sugar-free drink maker Drink Blocks LLC launched a derivative action in Chicago federal court Friday over claims that the company’s old owners mishandled investor money and then sold its assets to a previously undisclosed lender who is still selling the company’s products.

  • March 23, 2018

    Up Next At High Court: Messy Rulings, Class Actions

    The U.S. Supreme Court will cover a wide variety of subjects when it returns to the bench this week to close out the penultimate oral argument session of the term, revisiting its American Pipe decision on class action deadlines and debating how lower courts should read its fractured rulings.

  • March 23, 2018

    Ala. High Court Says HealthSouth Must Face Stockholder Suit

    The Alabama Supreme Court revived a suit Friday brought by onetime employees and shareholders of the former HealthSouth Corp. who accused the health care giant of misrepresenting its financial health amid a multibillion-dollar accounting fraud scandal, reversing a decision that their claims should have been brought derivatively and were time-barred.

  • March 23, 2018

    American Realty Cooperator Dodges Prison For REIT Fraud

    The former chief accounting officer of American Realty Capital Properties Inc. on Friday was spared from serving any prison time for her role in inflating the publicly traded real estate investment trust’s numbers in regulatory filings, with the judge crediting her cooperation in a case against the REIT’s former chief financial officer.

  • March 23, 2018

    Beaufort, Loyal Bank Execs Face More Charges In $50M Fraud

    A New York federal grand jury has returned a superseding indictment slapping four banking executives at Beaufort and Loyal Bank with more charges related to allegations they engaged in a $50 million securities fraud and money laundering scheme, saying their actions constitute conspiracy to defraud the United States.

  • March 23, 2018

    $1.1B M&G Texas Plant Sale Pact Delayed As Cash Dwindles

    Talks on a reported $1.125 billion sale agreement for bankrupt M&G USA Corp.’s huge plastic resin-making complex in Texas bogged down in the home stretch Friday, with company representatives resetting a sale hearing for Monday and warning of a cash crunch.

  • March 23, 2018

    Brazilian Steakhouse Investor Wants More Info On $560M Deal

    A shareholder of Brazilian steakhouse chain Fogo de Chao Inc. filed a putative class action suit Thursday in Delaware state court seeking to halt a $560 million acquisition of the company by affiliates of Rhone Partners, saying the restaurant’s directors withheld information about its potential conflicts of interest in the deal.

  • March 23, 2018

    DC Circ. Tosses Penalties Against Ex-Ernst & Young Partner

    A D.C. Circuit panel on Friday overturned penalties against a former Ernst & Young LLP partner imposed by the SEC’s Public Company Accounting Oversight Board, saying the board violated the accountant’s rights by refusing his request to have an expert witness present during an interview.

  • March 23, 2018

    Ex-Linklaters Atty's Husband Deserves Prison, DOJ Says

    A Massachusetts Institute of Technology quantum computing whiz who traded on information he gleaned from his wife, a former Linklaters LLP associate, deserves prison for brazen insider trading, prosecutors told a Manhattan federal judge Friday.

  • March 23, 2018

    Incentives Get Weaker For Internal Whistleblower Reporting

    A record $83 million SEC whistleblower award has heightened concerns raised by a recent Supreme Court ruling that workers will increasingly forgo internal complaints and go directly to the SEC, a potentially harmful dynamic for U.S. companies and their shareholders, legal experts say.

  • March 23, 2018

    Ex-Oregon US Atty Suspended 90 Days For Lying About Affair

    The Oregon Supreme Court has suspended a former U.S. attorney for the state from practicing law for 90 days, following an investigation by the U.S. Department of Justice that found she improperly had a relationship with a subordinate while in office and lied to her supervisors about it.

  • March 23, 2018

    NY Fines BofA $42M Over Electronic Trading Practices

    Bank of America Merrill Lynch will pay a $42 million penalty after admitting to having misled institutional clients about how their stock orders were being handled, New York Attorney General Eric Schneiderman said on Friday.

  • March 23, 2018

    SFO's Expert Witness 'Debacle' Unlikely To Help Libor Appeals

    An English appeals court's recent decision dismissing a former Barclays trader’s bid to overturn a conviction for Libor-rigging bodes ill for similar appeals in connected cases that look to build arguments on a prosecution witness whose mistakes caused an “embarrassing debacle” for the Serious Fraud Office.

  • March 22, 2018

    HSBC, RBS Parents Beat Forex Suit, Others Still On Hook

    A New York federal judge on Thursday cleared HSBC Holdings PLC and The Royal Bank of Scotland Group PLC from a proposed class action accusing several big banks of a conspiracy to rig benchmark foreign exchange rates, finding that the court lacks personal jurisdiction over the two.

  • March 22, 2018

    Fed Examiner Didn't Oppose Wilmington Trust Loan Waivers

    A Federal Reserve examiner testified Thursday in Delaware court in the criminal trial of four Wilmington Trust executives that he conducted examinations of the bank’s loan programs in 2009 and 2010 that included issues with its alleged waiver of past due loans.

Expert Analysis

  • Series

    After Cyan: Some Prognostications

    Boris Feldman

    With the ink on the U.S. Supreme Court's decision in Cyan v. Beaver County barely dry, the plaintiffs bar is comfortably in the Section 11 saddle. They won. But history suggests that this may be victory of a battle, not the war, say Boris Feldman and Ignacio Salceda of Wilson Sonsini Goodrich & Rosati PC.

  • Top Tax Changes For Law Firms: What Lawyers Need To Know

    Evan Morgan

    For those structured as corporations, the decrease in the maximum corporate tax rate and the repeal of the corporate alternative minimum tax offer good news. But since many law firms are organized as pass-through entities, several limitations on deductions mean they won’t see as much benefit from the new tax law as some other industries, says Evan Morgan of CPA and advisory firm Kaufman Rossin PA.

  • Are Headwinds Hampering Delaware's Blockchain Initiative?

    G. Thomas Stromberg

    Despite the current cryptocurrency fervor, it remains to be seen exactly how, and how quickly, blockchain technology will be adopted by the broader corporate community, and whether Delaware will continue to lead the charge, say attorneys with Jenner & Block LLP.

  • Tax Reform Is Hurting Foreign Investors In The US

    Michele Alexander

    The Tax Cuts and Jobs Act has codified a previous revenue ruling in a fairly controversial area of partnership tax law, in a potential disappointment to non-U.S. investors in domestic partnerships and practitioners who questioned the authority for issuing the ruling in the first place, say Michele Alexander and Ryan Davis of Bracewell LLP.

  • Opinion

    Companies Should Avoid The BigLaw Bonus Structure

    Michael Moradzadeh

    Since passage of the Trump tax plan last year, companies have been touting bonuses they’ve handed down to rank-and-file employees. This highlights the trend of employers favoring bonuses over pay raises in the belief that variable, short-term rewards are less risky to the business than permanent increases in labor costs. But law firms have used this strategy for years — and there are dangers, says Michael Moradzadeh of Rimon PC.

  • Risk Of 'Below Deal Price' Appraisal Post-Dell: Part 2

    Gail Weinstein

    It remains uncertain whether the Delaware Chancery Court — when relying on the deal price to determine fair value, as prescribed in Dell — will now make a downward adjustment to exclude value arising from the merger itself, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Risk Of 'Below Deal Price' Appraisal Post-Dell: Part 1

    Gail Weinstein

    Despite the Delaware Supreme Court’s opinion in Dell that the deal price is generally the best “proxy” for appraised fair value, the Delaware courts have issued three appraisal decisions in 2018 that determined fair value to be below the deal price. This risk is likely to continue absent further clarification from the Supreme Court or legislative change, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Chief Innovation Officer — The New Star On Legal Teams

    Mark Williamson

    Over the past few years, forward-thinking law firms have expanded their talent pools to include a chief innovation officer, whose responsibilities include spearheading the implementation of technology. It is a smart move, says ​​​​​​​Mark Williamson, co-founder and chief technology officer at Hanzo Archives Ltd.

  • The First SEC Action Following Option-Grants Probe

    Michael Dicke

    The U.S. Securities and Exchange Commission’s recent action against Credit Karma — the first enforcement action to result from a sweeping investigation that began in 2016 — reinforces comments from various SEC leaders that the agency is concerned about option-granting practices of late-stage private companies. It also demonstrates the SEC’s continued interest in Silicon Valley companies' governance procedures, say Michael Dicke and... (continued)

  • Opinion

    National Lawyers Need National Licensing For National Courts

    EJ Hurst II

    Just last month, a number of legal groups asked the Northern District of California to strike its rule requiring that, before seeking federal court admission, attorneys first be licensed by the state of California. It is irrational to exclude seasoned federal practitioners from general admission due to state bar approval while allowing raw state lawyers who have never been inside a federal courtroom, says attorney EJ Hurst.