Securities

  • January 09, 2020

    Swiss Trader's Trial Testimony Prompts Goldman Sachs Probe

    Goldman Sachs has opened a compliance investigation into one of its veteran bankers, the bank said Thursday, after a Swiss trader-turned-government witness told a Manhattan jury that he stole mining-sector merger secrets from the banker while he dated her in London in 2010.

  • January 09, 2020

    Fox Rothschild Beats Ponzi Scheme Suit At NJ High Court

    The New Jersey Supreme Court on Thursday nixed a lawsuit against Fox Rothschild LLP alleging the firm helped convicted Ponzi schemer Eliyahu Weinstein bilk a U.K.-based investor out of $2.4 million in a real estate scam, finding that the firm did not act unlawfully in following the fraudster's instructions.

  • January 08, 2020

    Dodd-Frank Architects Join Legal Challenge To SEC's Reg BI

    A challenge to new rules requiring broker-dealers to act in their clients' best interests now has the support of the Dodd-Frank Act’s top authors, who joined 10 past and present members of Congress urging the Second Circuit to scrap a rule they say doesn’t do enough to protect investors.

  • January 08, 2020

    Chancery's Forum Ruling Was 'Nonsense,' Del. Justices Told

    The Delaware Chancery Court “went astray” in multiple ways when it struck down three companies’ bylaws mandating federal court handling of Securities Act suits, a former chancellor representing two of the companies told the state Supreme Court on Wednesday.

  • January 08, 2020

    Investor Alleges Juul Executives Caused $20B Drop In Value

    Embattled e-cigarette maker Juul was hit with a proposed class action in California state court alleging the company’s founders have tanked its value by nearly $20 billion while enriching themselves with payouts that weren’t fairly shared with minority shareholders.

  • January 08, 2020

    Feds Say Trial Evidence Backs Hoskins' FCPA Conviction

    Federal prosecutors have urged a Connecticut federal judge not to overturn the conviction of former Alstom SA executive Lawrence Hoskins, saying a jury was given ample evidence that he was an "agent" of Alstom's U.S. industrial-boiler unit as it hired bribe-paying consultants to secure a power project in Indonesia.

  • January 08, 2020

    Prosecutors Urge 2nd Circ. To Revive Platinum Convictions

    Brooklyn federal prosecutors on Tuesday asked the Second Circuit to reinstate the securities fraud convictions of Platinum Partners co-founder Mark Nordlicht and former co-chief investment officer David Levy, saying a lower court overstepped its bounds by acquitting Levy and granting Nordlicht a new trial.

  • January 08, 2020

    Cooperator Tells Jury He Barely Knew Ariad Insider Suspect

    A cooperator who earned $70 million via a network of stock market informers said Wednesday that he only has tenuous ties to an entrepreneur on trial for allegedly passing Ariad Pharmaceuticals secrets, telling a Manhattan federal jury he only met the defendant once and never got tips directly from him.

  • January 08, 2020

    Ex-Mt. Gox Chief Seeks Win In Bitcoin Exchange Fraud Suit

    The former CEO of the now-defunct Mt. Gox bitcoin exchange moved Wednesday to shut down an Illinois proposed class action seeking to hold him liable for customer losses stemming from the exchange’s 2014 collapse, arguing that the remaining plaintiff in the case has failed to substantiate his case.

  • January 08, 2020

    Saxena White Scores Lead In Chemours Stock-Drop Suit

    Saxena White PA was named lead counsel Wednesday in a proposed consolidated class action in Delaware federal court accusing DuPont spinoff Chemours Co. of concealing the extent of its environmental liabilities from investors.

  • January 08, 2020

    Investors Say Chancery Wrong To OK $3.8B Ligand Note Fix

    An attorney for traders fighting over a disputed formula for cashing in Ligand Pharmaceuticals Inc. notes told Delaware’s Supreme Court on Wednesday that the Chancery Court disregarded multiple investor protections when it allowed Ligand to unilaterally fix its potential $3.75 billion blunder.

  • January 08, 2020

    SEC Wants Exchanges To Revamp Stock Market Data Policies

    A divided U.S. Securities and Exchange Commission on Wednesday proposed requiring stock exchanges to file a single plan that governs the dissemination of stock market quotes and related data, hoping to modernize current policies and prevent conflicts of interest, although dissenters panned the plan as weak.

  • January 08, 2020

    Exec Pay Rules May Make Private Cos. Hesitate To Go Public

    Private companies have a new reason to pause before going public due to recently proposed rules by the IRS that would eliminate the ability of newly public companies to deduct certain executive compensation from corporate income.

  • January 08, 2020

    Barclays Says Suit Can’t Tie It To US Or Bond Price-Fixing

    Barclays urged a Louisiana federal judge to eject it from a state lawsuit alleging that major banks rigged the price of bonds issued by government-sponsored entities such as Fannie Mae and Freddie Mac, arguing the state attorney general can’t tie it to the U.S. or the case’s specific allegations.

  • January 08, 2020

    Zohar Director Calls Tilton's Ch. 11 Sale Plan 'Backwards'

    The court-appointed director of the Zohar Funds is asking a Delaware bankruptcy judge to reject asset sale procedures proposed by Zohar founder Lynn Tilton, saying her sale timeline "seems precisely backwards."

  • January 08, 2020

    Rosenstein's Job Hunt Started And Ended At King & Spalding

    Former Deputy Attorney General Rod Rosenstein is entering private practice for the first time at King & Spalding, which he called “the only firm I looked at seriously” in an interview Wednesday.

  • January 07, 2020

    Argentina Dodges Hedge Fund's $84M Bond Suit, For Now

    A New York federal judge on Tuesday dismissed Aurelius Capital's $84 million lawsuit accusing the Argentine government of failing to make agreed-upon securities payouts, but gave the hedge fund a chance to amend its claims.

  • January 07, 2020

    SCANA Investors Reach $192M Deal In Nuke Plant Suit

    Investors in SCANA Corp. urged a South Carolina federal judge Tuesday to sign off on a $192 million settlement resolving class claims the company and its executives misled the public about long delays and massive cost overruns in a $9 billion nuclear reactor project.

  • January 07, 2020

    Sarepta Investors Sue In Delaware Over Drug Risk Disclosures

    A Sarepta Therapeutics Inc. investor launched a federal suit in Delaware Tuesday against the drug developer's board and top officers, seeking damages on behalf of the business for allegedly costly failures to disclose potential troubles with a new medication study.

  • January 07, 2020

    Crypto And Data Use Remain SEC Examination Targets In 2020

    The U.S. Securities and Exchange Commission said Tuesday that in 2020 it will continue to focus on developments in the fintech space, including the use of alternative data, digital currencies and robo-advisers, as it outlined its examination priorities for the upcoming year.

  • January 07, 2020

    SEC's Bank Secrecy Act Powers Challenged At 2nd Circ.

    A Utah penny stock broker has asked the Second Circuit to roll back its $12 million penalty for spotty reporting of suspicious transactions, arguing the U.S. Securities and Exchange Commission doesn’t have the authority to enforce federal anti-money laundering laws.

  • January 07, 2020

    Federal Investigators Can Intervene In Perrigo Takeover Row

    Federal prosecutors pursuing an antitrust probe of Perrigo Co. can intervene in securities lawsuits brought by hedge funds alleging that the company misled investors to stave off a hostile takeover bid by pharmaceutical competitor Mylan NV, according to an order filed Tuesday in New Jersey federal court.

  • January 07, 2020

    Telemed Startup Says Fraud Accuser Can't Avoid Arbitration

    A blockchain-based telemedicine platform is not backing down from pursuing arbitration in a dispute over another firm's claims that it was swindled out of more than $1 million in the platform's sham token venture.

  • January 07, 2020

    Tribune Investors Can't Pursue Suit Over Failed Sinclair Deal

    An Illinois federal judge on Monday dismissed shareholders' proposed class action alleging that broadcast giant Tribune Media Co. hurt its stock price by hiding signs that its $3.9 billion merger with Sinclair Broadcast Group Inc. was crumbling.

  • January 07, 2020

    3rd Circ. Urged To Rethink Bear Stearns' Securities Sale

    A Third Circuit panel wrongly affirmed a finding that Bear Stearns acted in "good faith" when it auctioned off — to itself — mortgage-backed securities that served as collateral on a defaulted loan to HomeBanc Mortgage, the Chapter 7 trustee for HomeBanc has asserted in a bid for en banc rehearing.

Expert Analysis

  • Del. M&A Case Clamps Down On MLP General Partner Liability

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    The Delaware Chancery Court’s recent decision in Dieckman v. Regency that a merger did not satisfy the required safe harbors, but did not necessarily breach good faith requirements, suggests general partners in master limited partnerships may face greater liability in approving conflicted transactions, say attorneys at Fried Frank.

  • SEC Proposals Could Be Game Changing For Proxy Process

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    Recently proposed rule amendments from the U.S. Securities and Exchange Commission could overhaul the proxy process by making it harder for proxy advisory firms to issue voting recommendations, and by changing the requirements for shareholders submitting proposals, say attorneys at V&E.

  • Warren Bill Presents Powerful Headwinds For Private Equity

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    If passed, Sen. Elizabeth Warren's private equity reform bill would protect companies being purchased by private equity, but impose significant restrictions on funds by eliminating the liability shield and favorable tax treatment they currently enjoy, say Jon Brose and Kevin Neubauer at Seward & Kissel.

  • Top Takeaways From The SEC's Banner Enforcement Year

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    The U.S. Securities and Exchange Commission's fiscal year 2019 enforcement report demonstrates the Division of Enforcement's focus on protecting Main Street; that self-reporting initiatives and sweeps are working; and several emerging settlement trends from a record year for penalties and disgorgement, says Kurt Wolfe at Troutman Sanders.

  • 7 Steps For Managing Private Equity Whistleblower Risk

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    In light of the U.S. Securities and Exchange Commission's report last week that whistleblower payouts have declined, private equity firms — which face unique risks — should shore up policies to encourage internal reporting and discourage retaliation, say attorneys at Kirkland.

  • How To Hire Lateral Partners More Effectively

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    Although lateral partner hiring is the preferred method of inorganic growth among law firms, the traditional approach to vetting does not employ sufficient due diligence by the hiring firm, says Michael Ellenhorn at executive search firm Decipher Competitive Intelligence.

  • Highland Filing Shows Benefits Of Ch. 11 For Hedge Funds

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    Highland Capital Management's Chapter 11 filing last month illustrates how a bankruptcy filing can provide additional advantages when investors are not a hedge fund’s only creditors, as in the aftermath of fraud allegations or market dislocations, say attorneys at Cleary. 

  • Justices Mull Interplay Of ERISA, Securities Laws In IBM Case

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    At recent U.S. Supreme Court arguments in IBM v. Jander, the justices grappled with the Employee Retirement Income Security Act’s difficult application and its intersection with federal securities laws in considering whether plan fiduciaries must disclose inside information about publicly traded companies, say attorneys at King & Spalding.

  • High Court's Pass On 1 SEC Case Offers Insight Into Another

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    The U.S. Supreme Court effectively recognized the U.S. Securities and Exchange Commission's extraterritorial reach in denying certiorari in Scoville v. SEC. The move may foreshadow the high court's eventual ruling in Liu v. SEC, which will determine the regulator's authority to seek disgorgement, say Adam Schwartz and Russell Koonin at Homer Bonner.

  • Record Spoofing Settlement Provides Guidance For Traders

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    A record $67.4 million settlement the U.S. Department of Justice and the Commodity Futures Trading Commission recently negotiated with Tower Research Capital over alleged futures market spoofing offers commodities traders enforcement and compliance guidance, and reflects increasing coordination among regulators, say Charley Mills and Matt Kulkin at Steptoe & Johnson.

  • SEC Relief For Digital Custody Co. Takes Guarded Approach

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    The U.S. Securities and Exchange Commission recently granted Paxos Trust Company limited no-action relief to settle securities using blockchain technology without registering as a clearing agency, demonstrating the regulator wants to better understand digital asset custody before allowing for broad adoption, say attorneys at Norton Rose.

  • 4 Months After Kisor V. Wilkie, Auer Deference Survives

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    Recent federal appellate and district court rulings suggest that the predicted radical curtailing of Auer deference in the wake of the U.S. Supreme Court's decision in Kisor v. Wilkie has not come to fruition, say Jeffrey Karp and Edward Mahaffey at Sullivan & Worcester.

  • Bill Would Bridge Digital Realty Whistleblower Protection Gap

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    The Whistleblower Programs Improvement Act's recent introduction in the Senate, along with overwhelming bipartisan support for a similar bill in the House, strongly indicates that Congress intends to extend whistleblower protections beyond the U.S. Supreme Court's 2018 Digital Realty decision, says Antuan Johnson at Katz Marshall.

  • Key Takeaways From Ex-Alstom Exec's FCPA Conviction

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    In U.S. v. Hoskins, a Connecticut federal court last week convicted a foreigner who did not work for a U.S. company of Foreign Corrupt Practices Act violations, presenting valuable lessons about the scope of FCPA liability and how to effectively withdraw from a bribery scheme, say Sunil Shenoi and Kim Nemirow at Kirkland.

  • Can State Laws One-Up SEC’s Regulation Best Interest?

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    Because the U.S. Securities and Exchange Commission has punted on whether Regulation Best Interest will preempt state broker-dealer conduct standards, state laws may face challenges under the doctrines of conflict preemption, as well as limitations from the federal securities laws, say attorneys at Williams & Jensen.

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