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Securities
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May 14, 2025
Judge Orders Boeing To Share Disclosures, Allow Depositions
A Virginia federal judge has said Boeing must share disclosures about its "false-stamping" of aircraft testing with three state pension systems that accuse the company and its executives of putting profits over safety, and that some board members must sit for depositions.
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May 14, 2025
SEC To Have 'Sympathetic Ear' On Penalty Talks, Official Says
The U.S. Securities and Exchange Commission's deputy enforcement director told an audience of financial professionals on Wednesday that they can expect a "more sympathetic ear" from the now Republican-led commission when it comes to arguing down penalties, saying that it's possible that some cooperative firms will not have to hire an outside compliance consultant.
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May 14, 2025
CFTC's Mersinger Will Depart Agency To Lead Crypto Lobby
U.S. Commodity Futures Trading Commissioner Summer Mersinger is leaving the agency to lead cryptocurrency industry group the Blockchain Association, the organization announced Wednesday.
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May 13, 2025
Wells Fargo Asks 9th Circ. To Undo 'Sham' Hiring Class Cert.
Wells Fargo has asked the Ninth Circuit to intervene and undo the class certification granted to investors who have claimed that the bank's alleged practice of conducting "sham" interviews to meet diversity quotas harmed the bank's stock price when the truth came to light.
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May 13, 2025
Crypto Platform's Ex-Brass Plead Guilty To $150M Fraud
Two former executives behind bankrupt cryptocurrency investment platform Cred Inc. pled guilty Tuesday in California federal court to conspiracy to commit wire fraud, admitting they gave customers "an unreasonably positive" portrayal of the business ahead of a collapse that prosecutors say wiped out up to $150 million in customer crypto.
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May 13, 2025
FINRA Fines Goldman $1.4M Over Faulty CAT Data Reports
Goldman Sachs & Co. LLC has agreed to pay $1.45 million to settle Financial Industry Regulatory Authority claims that it failed to properly report data for billions of stock market trades, according to a filing posted by FINRA on Tuesday.
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May 13, 2025
Feds Say Crypto Developer's Money Transmitter Suit Isn't Ripe
The U.S. Department of Justice urged a Texas federal judge to cut through a lawsuit seeking to protect forthcoming crypto crowdfunding software from an enforcement action, arguing the software developer's purported business plan stands apart from the DOJ's crypto money transmission prosecutions.
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May 13, 2025
Colo. Justice Iffy On Tossing Rulings In Securities Fraud Case
A Colorado Supreme Court justice said he was a bit troubled that three decisions might be overturned if he accepts the state's argument that attorney advice isn't relevant to a securities fraud defendant's state of mind, musing that perhaps those previous courts "got it right."
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May 13, 2025
Nike Seeks Dismissal Of Investors' Sales Strategy Fraud Suit
Sportswear company Nike and several of its top executives have urged an Oregon federal judge to toss a proposed class action alleging the company's stock value declined as it continued to mislead investors on the success of a change in sales strategy, saying the suit improperly uses hindsight to claim fraud.
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May 13, 2025
Health Co. Elevance Faces Suit Over Post-COVID Costs Claims
Health insurance provider Elevance Health Inc. and some of its executives face a proposed investor class action alleging the company hurt shareholders by mismanaging expectations about its Medicaid business's costs amid the post-pandemic eligibility redetermination process in certain markets it served.
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May 13, 2025
Intel Schemed To Duck $1B In Mobileye Losses, Investors Say
Intel Corp. used its position as Mobileye Global's controlling shareholder and fiduciary to strategically offload $1.6 billion in stock ahead of an announcement that tanked stock prices, according to a shareholder derivative suit filed Monday in Delaware Chancery Court.
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May 13, 2025
Hooters Can Tap Full $40M DIP In Chapter 11
Restaurant chain Hooters can tap the last $30 million of its $40 million Chapter 11 debtor-in-possession loan after it agreed to escrow disputed royalty revenue to quell a creditor's objection during a Tuesday hearing in a Texas bankruptcy court.
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May 13, 2025
SEC Says Ex-Pot Co. CFO Can't Cite Atty Advice As Shield
The U.S. Securities and Exchange Commission told a New York federal judge that a former executive of cannabis company Acreage Holdings Inc. accused of falsifying the company's financials cannot allege he was relying on advice from attorneys without forgoing the attorney-client privilege that would shield those communications.
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May 13, 2025
SEC Inks Judgment In Telecom Execs' Inflated Revenue Suit
The former CEO and CFO of a bankrupt telecommunications software provider have cut a deal with the U.S. Securities and Exchange Commission that will ban them from ever again serving as head or officer of a public company.
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May 13, 2025
Cannabis Water Co. Escapes $10M Fraud Charges With DPA
A cannabis-infused beverage maker on Tuesday inked a deferred prosecution agreement to resolve charges over its alleged role in a $10 million pump-and-dump scheme, with the deal including compliance provisions but no monetary penalty.
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May 13, 2025
Fox Nabs Smartmatic Bribery Probe Docs In Defamation Case
A New York state appeals court on Tuesday ordered Smartmatic to give Fox News documents related to a federal investigation into allegations that executives of the election systems company bribed officials in the Philippines, ruling the materials are "plainly relevant" to the network's defense against defamation claims.
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May 13, 2025
Investment Firm Drops 2 Counts From $70M Client Poach Suit
Connecticut investment firm TJT Capital Group LLC has agreed to drop a Computer Fraud and Abuse Act count and a common-law trade secrets misappropriation claim from a lawsuit accusing a chief compliance officer of taking $70 million in assets under management with him when he left for a new job.
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May 13, 2025
Father-Son Duo Get Prison Terms In $100M Deli Fraud
A father and son were handed down federal prison sentences on Tuesday for their roles in a scheme that tricked investors into thinking a small, unprofitable Garden State deli was worth $100 million.
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May 13, 2025
SEC's Uyeda Encourages Opening 401(k)s To Private Assets
U.S. Securities and Exchange Commissioner Mark Uyeda said Tuesday that regulators should explore how retirement accounts could expand to include private equity investments, arguing that such a shift would put 401(k) plans on par with pension funds.
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May 13, 2025
CFTC Faces Sanctions For 'Bad Faith' Actions In Forex Case
The U.S. Commodity Futures Trading Commission is staring down sanctions in a case accusing a foreign exchange firm of fraud, with a special master recommending Tuesday that the agency pay the firm's legal fees for acting in bad faith in order to gain a "tactical advantage" in the case.
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May 13, 2025
SEC X Account Hack Conspirator Deserves 2 Years, Feds Say
Federal prosecutors are seeking a two-year sentence for an Alabama man who admitted to his role in last year's hack of the U.S. Securities and Exchange Commission's account on the social platform X to post a bogus development in the agency's cryptocurrency policy, while the man himself said Tuesday that a year and a day should suffice.
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May 13, 2025
4 Firms Build Robinhood's $178.9M Canadian Crypto Buy
Financial services giant Robinhood on Tuesday unveiled plans to acquire Canadian cryptocurrency platform WonderFi Technologies in a CA$250 million ($179 million) take-private deal built by four law firms.
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May 13, 2025
DOJ Criminal Division Head Dangles Self-Disclosure 'Carrot'
The U.S. Department of Justice unveiled a revised corporate enforcement policy Monday that offers companies a "clear path" to avoid criminal resolutions when they voluntarily self-disclose misconduct, a boon for American businesses that further scales back the scope of white collar enforcement under the Trump administration.
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May 13, 2025
Feds Nixing Crypto 'Property' Theft Charge Against Brothers
Prosecutors have told a Manhattan federal judge that they plan to drop a charge of conspiracy to receive stolen property against two Massachusetts Institute of Technology-educated brothers accused of stealing $25 million worth of cryptocurrency, after the defendants pointed to a U.S. Department of Justice memo limiting certain charges involving digital assets.
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May 13, 2025
Morgan Lewis Adds Ex-Dechert Registered Funds Pro In NY
Morgan Lewis & Bockius LLP has added a registered funds specialist who previously served over 20 years with Dechert LLP as a partner in its New York office, the firm announced Tuesday.
Expert Analysis
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Comparing 2 Pending Bills To Regulate Stablecoins
Alexandra Steinberg Barrage at Troutman analyzes the key similarities and differences between two payment stablecoin proposals currently pending in Congress — the STABLE and GENIUS acts — as both chambers are forming a working group to deliver a clear regulatory framework for digital assets and bipartisan agreement appears within reach.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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How Private Securities Suits Complement SEC Enforcement
U.S. Securities and Exchange Commission enforcement is vital to the healthy functioning of markets, but government enforcement alone is not enough to ensure meaningful monetary recoveries for investor losses due to securities law violations, say attorneys at Bernstein Litowitz.
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The Case For Compliance During The Trump Administration
Given the Trump administration’s shifting white collar enforcement priorities, C-suite executives may have the natural instinct to pare back compliance initiatives, but there are several good reasons for companies to at least stay the course on their compliance programs, if not enhance them, say attorneys at Riley Safer.
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Corp. Transparency Act's Future Under Treasury's Bessent
The Corporate Transparency Act’s ultimate fate faced uncertain terms at the end of 2024, but new U.S. Department of the Treasury Secretary Scott Bessent's statements and actions so far demonstrate that he does not intend to ignore the law, though he may attempt to make modifications, say attorneys at Taylor English.
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A Look At A Possible Corporate Transparency Act Exemption
Attorneys at Kirkland offer a deep dive into the application of the Corporate Transparency Act's reporting requirements specifically to U.S.-domiciled co-issuers in typical collateralized loan obligation transactions, and consider whether such issuers may be able to assert an exemption from the CTA's reporting requirements.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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What Banks Need To Know About Trump's Executive Orders
While the numerous executive orders and memos from the last few weeks don't touch on many of the issues the banking industry expected the Trump administration to address, banks still need to pay attention to the flurry of orders from strategic, compliance and operational perspectives, say attorneys at Arnold & Porter.
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How SDNY US Atty Nom May Shape Enforcement Priorities
President Donald Trump’s nominee for U.S. attorney in the Southern District of New York, former U.S. Securities and Exchange Commission Chair Jay Clayton, will likely shift the office’s enforcement priorities, from refining whistleblower policies to deemphasizing novel prosecutorial theories, say attorneys at Cohen & Gresser.
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4 Potential Effects Of 3rd Circ.'s Coinbase Ruling
The Third Circuit's recent landmark decision in Coinbase v. U.S. Securities and Exchange Commission that the SEC's refusal to engage in rulemaking to clarify its stance on crypto enforcement was "insufficiently reasoned" could have wide-ranging impacts, including on other cases, legislation and even the SEC's reputation itself, says Daniel Payne at Cole-Frieman.
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What Companies Should Consider During FCPA Pause
While waiting for updated guidance on Foreign Corrupt Practices Act criminal investigations after a Feb. 10 executive order froze FCPA enforcement, companies should consider the implications of several possible policy shifts, rather than relaxing internal oversight of questionable business practices, say attorneys at Simpson Thacher.
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Takeaways From CFTC's Private Fund Rule Amendments
The U.S. Commodity Futures Trading Commission's recently adopted amendments to Rule 4.7 of the Commodity Exchange Act ensure that investors in the complex derivatives markets receive relevant and comprehensive information, and further align suitability criteria for investors in private funds, says Rita Molesworth at Willkie.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Rethinking How To Engage Shareholders, Activists Via Proxies
This proxy season, companies should consider visually driven proxy statements that highlight the board's strengths, the alignment between executive compensation and performance, and a commitment to sustainability and risk management to earn the support of investors and fend off hostile acquirers, say Craig Clay and Ron Schneider at DFIN.