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Securities

  • May 24, 2019

    3 Less Common PE Compliance Issues The SEC Is Watching

    The U.S. Securities and Exchange Commission is focused on compliance for private equity firms and their portfolio companies, and while attorneys know the usual red flags, they must also must be prepared to handle less common problems such as money laundering, fraud and sexual misconduct. Here, Law360 explores three compliance issues that could trip up a private equity client.

  • May 23, 2019

    Japanese Exec Gets 50 Years For $1.5B Ponzi Scheme

    The former president and CEO of a Japanese investment company was slapped Thursday with a 50-year sentence in federal prison for his role in a Las Vegas Ponzi scheme that swindled $1.5 billion from 10,000 Japanese victims, the U.S. Department of Justice announced.

  • May 23, 2019

    Levi & Korsinsky Snags Lead In Investor's Trade Secrets Suit

    New York City-based law firm Levi & Korsinsky LLP has been named lead counsel in a stock-drop suit against Taiwanese semiconductor manufacturer United Microelectronics Corp., according to an order issued Thursday by the New York federal court overseeing the case.

  • May 23, 2019

    Investors Bancorp Says New Equity Awards Dilute Settlement

    Investors Bancorp argued Thursday that new equity awards it recently approved for two top officers negate most of the benefit that suing shareholders said they brought to the company with an earlier lawsuit and rollback settlement, derailing what was expected to be a standard fee hearing in Delaware’s Chancery Court.

  • May 23, 2019

    SEC Set For June Vote On 'Best Interest' Standard For Brokers

    The U.S. Securities and Exchange Commission is set for a final vote on June 5 to decide whether to adopt a new rule that would hold brokers to a higher standard of care if they are giving advice to retail investors, the agency said Thursday.

  • May 23, 2019

    Ex-Platinum CFO Troubled By Business Methods, Jury Hears

    A former chief financial officer of Platinum Partners on Thursday told a New York federal jury weighing the fate of the hedge fund manager's former top executives of his unease with the company's problematic business practices and lack of cash to fund operations and pay back investors.

  • May 23, 2019

    Prosecutors Get More Time In Ng's 1MDB Fraud Case

    A New York federal judge Thursday gave prosecutors more time to prepare for the trial of former Goldman Sachs banker Roger Ng on charges of orchestrating a multibillion-dollar fraud on a Malaysian sovereign wealth fund, after the government said it was busy copying millions of digital documents onto hard drives and sending them to Ng's lawyers.

  • May 23, 2019

    BioChemics Can't Revive SEC Probe Coverage Bid At 1st Circ.

    The First Circuit affirmed a district court ruling Thursday that Axis Insurance Co. had no duty to cover BioChemics' costs to defend against an investigation and enforcement action by the U.S. Securities and Exchange Commission, saying the grounds for an insurance claim kicked in before BioChemics was covered.

  • May 23, 2019

    Hollander Gets Interim Access To $90M Ch. 11 DIP Package

    Bankrupt mattress retailer Hollander Sleep Products LLC received preliminary approval to tap a $90 million debtor-in-possession loan Thursday, after a New York bankruptcy court initially rejected the proposed order because it locked in too many perks for the lenders.

  • May 23, 2019

    2 Ex-Venezuelan Oil Co. Officials Sentenced In Bribery Ploy

    Two former Petroleos de Venezuela SA officials who admitted taking bribes in exchange for putting certain companies on bidding panels to secure contracts with the Venezuelan state-owned oil giant were sentenced by a federal judge in Houston on Thursday.

  • May 23, 2019

    2nd Circ. OKs $2.7M In Fees From BioScrip Investor Deal

    The Second Circuit on Thursday said Bernstein Litowitz Berger & Grossmann LLP could collect $2.7 million in attorney fees from a $10.9 million deal inked between BioScrip Inc. and shareholders who accused the specialty pharmacy of lying about fraud tied to Novartis AG's iron-reducing drug Exjade.

  • May 23, 2019

    Crypto Co. Founder Says Investor Suit Must Be Arbitrated

    A co-founder of shuttered cryptocurrency company Centra Tech says investors who claim they were misled about digital tokens they bought from Centra agreed to arbitrate any claims arising from the purchase.

  • May 23, 2019

    Sears Creditors Say Ch. 11 Plan Lacks Legal Basis

    Multiple Sears creditors have asked a New York bankruptcy court to reject the company’s Chapter 11 plan, claiming the proposal has a shakier legal and financial foundation than Sears would have creditors believe.

  • May 23, 2019

    Moody's Cites Cyberattack In Downgrading Equifax Outlook

    Credit ratings agency Moody's has lowered its rating outlook for Equifax Inc. in what it is calling its first-ever downgrade stemming from a cyberattack.

  • May 23, 2019

    SEC Adds Sales Agent To Woodbridge Ponzi Scheme Suit

    A Massachusetts-based sales agent of the Woodbridge Group is among the perpetrators of a $1.2 billion Ponzi scheme involving a complex network of phony real estate investments and unregistered Florida-based funds, the U.S. Securities and Exchange Commission has alleged.

  • May 23, 2019

    Chemical Co. Misled Investors Before IPO, Investor Suit Says

    A Philadelphia-based chemical manufacturer was hit Wednesday with a shareholder lawsuit in federal court alleging that documents it filed in advance of its initial public offering last year omitted key facts about its business operations, resulting in missed sales targets and tumbling stock values.

  • May 23, 2019

    SEC Calls Online Instructional Co. A $26.5M Pyramid Scheme

    The U.S. Securities and Exchange Commission filed suit Wednesday against the founder and sole member of IPro, a purported purveyor of online instructional materials and cryptocurrency that it claims was actually a $26.5 million pyramid scheme.

  • May 23, 2019

    Elk Petroleum Opens Ch. 11 To Rework $270M In Debt

    Elk Petroleum Inc. and three affiliates sought Chapter 11 protection in Delaware late Wednesday, proposing a reorganization of some $270 million in secured and unsecured debt under a private equity-led plan approved by two secured debtor groups one day earlier.

  • May 23, 2019

    Feds Say Firm Can't Intervene In Texas Ponzi Scheme Case

    The government has asked a Texas federal court to remove a San Antonio law firm from a dispute over the assets of a businessman convicted of helping to run a Ponzi scheme, saying the firm has no direct claim over the property at issue in the case.

  • May 23, 2019

    Endo Investors Seek Class Cert. In Opioid Stock-Drop Suit

    Endo International PLC investors have asked a Pennsylvania federal court to grant them class certification in their suit claiming the pharmaceutical company knowingly misrepresented the safety of its opioid drug Opana, leading to a significant stock drop when it was forcibly removed from the market.

  • May 23, 2019

    $3.5M Settlement Approved in Eaton Vance 401(k) Case

    A Boston federal judge has granted preliminary approval to a $3.45 million deal to settle claims that investment management company Eaton Vance stuffed its own poorly performing, expensive mutual funds into its 401(k) plan even though better funds were available.

  • May 22, 2019

    Lawyered-Up Suspect Says Taped Calls Violated Ethics Rule

    A former financial adviser charged with bribing PetroEcuador officials said on Tuesday prosecutors violated a Florida legal ethics rule by having a cooperator record conversations with him after he had lawyered up and that those calls can't be used as evidence. 

  • May 22, 2019

    Jay Peak's Ex-Developers Indicted Over Failed EB-5 Project

    Federal prosecutors in Vermont unsealed an indictment Wednesday charging the former owner of ski resort Jay Peak and three of his associates with skimming funds from immigrant investors in an alleged EB-5 visa fraud scheme.

  • May 22, 2019

    Landlord Indicted, Sued By SEC Over 'Ponzi-Like' Con

    A major landlord and his associates are facing a 114-count criminal indictment and a civil suit from the U.S. Securities and Exchange Commission for their alleged roles in a “Ponzi-like" mortgage fraud scheme that caused millions in losses, according to Wednesday New York federal court filings.

  • May 22, 2019

    Chancery Finds Ex-CEO In Contempt In Biopharma IP Suit

    A biopharmaceutical company physician-investor was ruled in contempt Wednesday for failing to maintain the Delaware Chancery Court-ordered status quo in a suit challenging his transfer of all intellectual property from a venture he directed to one he created and purportedly controlled.

Expert Analysis

  • Real-Life Lessons For Lawyers From 'Game Of Thrones'

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    What lessons can the various hands, maesters, council members and other advisers in "Game of Thrones" impart to real-life lawyers? Quite a few, if we assume that the Model Rules of Professional Conduct were adopted by the Seven Kingdoms, says Edward Reich of Dentons.

  • The True Definition Of A Whistleblower Claim

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    Whistleblower is often misused as a generic term, but it actually has a specific meaning with specific implications that companies must understand when crafting programs to handle both actual and purported whistleblower complaints, says Neil Rosolinsky, deputy general counsel at Citizens Financial Group.

  • 5 Tips To Help Your Summer Associates Succeed

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    There are a number of ways that attorneys can ensure their summer associates successfully manage critical writing assignments and new types of professional interactions, says Julie Schrager of Schiff Hardin.

  • Challenges To Trump's '2 For 1' Order Face Difficult Road

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    Shortly after President Donald Trump took office, he issued an executive order directing agencies to eliminate two existing regulations for every new regulation adopted. Multiple lawsuits challenging this order are ongoing, but federal courts are poorly equipped to adjudicate claims that involve an agency’s failure to regulate, says Steven Gordon of Holland & Knight.

  • Keys To Communicating A Law Firm's Mission

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    Today’s law firm leaders are pretty good at developing a strategic vision for the enterprise, but there is often a disconnect between that road map and the marketing department’s rank and file, leading to a deliverable that does little to differentiate the firm, says José Cunningham, a legal industry consultant.

  • New Views On Statistical Significance Affect Expert Testimony

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    In light of recent criticism concerning the use of statistical significance in scientific inquiry and expert witness practice, researchers and legal practitioners should recognize statistical significance as just one factor among many that guide the analysis of scientific data and confidence in tested hypotheses, say attorneys at Alston & Bird.

  • Tips For Using DOJ Guidance In A Compliance Program

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    The U.S. Department of Justice's new corporate compliance guidance includes useful questions but should not be used simply as a checklist in assessing a compliance program — the real key is understanding the purpose behind the questions, say Hui Chen, author of the DOJ's 2017 compliance guidance, and Pam Davis, a former DOJ corporate monitor.

  • Opinion

    How Lawyers Can Help Save The Planet

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    Over a dozen major law firms have joined our effort to overcome the legal obstacles that states, cities and businesses face in fighting climate change. But more lawyers are needed, say Michael Gerrard of Columbia Law School and John Dernbach of Widener University Commonwealth Law School.

  • Potential Effects Of SEC Financial Reporting Proposal

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    The U.S. Securities and Exchange Commission recently proposed eliminating the requirement for auditor attestation regarding internal control over financial reporting at certain companies. This would save eligible companies money on audit fees and other costs, but could result in less accurate financial reporting, say attorneys at Stinson.

  • 2 Key 10th Circ. Holdings In Western Union Derivative Suit

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    The Tenth Circuit’s recent opinion in City of Cambridge Retirement System v. Ersek — concerning shareholders’ allegations against officers and directors of Western Union — was a little-noticed decision, but it has broad implications for shareholder derivative actions, say Chris McCall and Luke Ritchie of Moye White.

  • Revisiting When — And When Not — To Seek Appraisal

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    After a string of recent Delaware Supreme Court decisions, it appears that seeking a court's independent appraisal of a deal price may be relevant only in the context of certain limited factual scenarios, say Michael Maimone and Joseph Schoell of Drinker Biddle.

  • Directors Must Heed SEC On Cybersecurity And Social Media

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    The U.S. Securities and Exchange Commission has made clear that it expects companies to take action to avoid and remediate cybersecurity breaches, and to carefully review information disclosed via social media. But many officers and directors remain underprepared for SEC enforcement in these areas, say attorneys at Vinson & Elkins.

  • Reducing The Regulatory Risk Of Merchant Cash Advances And Factoring

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    Courts and regulators have reached different conclusions on whether merchant cash advances and unpaid invoice purchases constitute loans subject to state lender licensing and usury regulations. Attorneys at Buckley discuss how to minimize the chances of these transactions being recharacterized as loans.

  • Q&A

    A Chat With Gilead Sciences Legal Ops Leader Gary Tully

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    In this monthly series, legal recruiting experts from Major Lindsey & Africa interview legal industry leaders about the increasingly competitive business environment. Here, Rod Osborne talks with Gary Tully, head of legal operations at Gilead Sciences.

  • DC Circ.'s Chance To Clarify 'Should Have Known' Liability

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    With its upcoming decision in Thaddeus North v. U.S. Securities and Exchange Commission, the D.C. Circuit should articulate a clear legal standard for when a compliance officer “should have known” about reportable events. Without such guidance, compliance officers cannot do their jobs without fearing unintended consequences, say Brian Rubin and Michelle McIntyre of Eversheds Sutherland.