Securities

  • January 03, 2020

    Biz Partners' 'Nasty' NY Fraud Claims Spread To Kenya

    A New York state trial judge on Friday declined to stop onetime friends' crisscrossing fraud claims he once called a "nasty case" from spreading to an arbitration proceeding in Kenya, ruling that the plaintiffs hadn't met the high bar to block foreign proceedings.

  • January 03, 2020

    Telegram Calls SEC's Bank Requests A 'Fishing Expedition'

    Telegram Group Inc. hit back Friday at the U.S. Securities and Exchange Commission's request that a New York district court judge compel the messaging platform to hand over a full gamut of bank documents, saying they are not relevant to the allegations that its $1.7 billion digital token sale was an unregistered securities offering.

  • January 03, 2020

    Bulk Of Liquidator's Suit Against Ex-Platinum Exec Survives

    A New York federal judge largely left intact claims against a former Platinum Partners vice president brought in connection with purported fraud at the storied hedge fund and reinsurer Beechwood, according to an order filed Thursday, but narrowed the allegations against him.

  • January 03, 2020

    ProShares Wins Dismissal Of Investors' Suit Over Risky Fund

    Investment firm ProShares will not have to face a securities suit alleging it failed to warn investors of the risks associated with one of its funds, a New York federal judge has ruled.

  • January 03, 2020

    Contested Hearings On Zohar Sale Processes Delayed

    A heavily contested hearing scheduled to deal with sale process issues in the Chapter 11 case of The Zohar Funds will not go forward Jan. 10 after a Delaware judge agreed with the debtor Friday that more time is needed to complete discovery related to the motions.

  • January 03, 2020

    Lionbridge Asks Court To Make Travelers Cover Stock Suit

    Lionbridge Technologies Inc. hit Travelers Casualty and Surety Co. of America with a suit Friday in Massachusetts federal court, asking a judge to force Travelers to provide $10 million in coverage and participate in settlement discussions for a shareholder suit Lionbridge is facing.

  • January 03, 2020

    Real Estate Adviser's Attys Slam Sanctions Bid In Fraud Suit

    Counsel for a real estate adviser did not misrepresent the facts in their fraud suit defense and should not be sanctioned for their efforts to have their clients dismissed from the case, the attorneys have told a Utah federal court.

  • January 03, 2020

    Snell & Wilmer Faces DQ Bid In EB-5 Project Row

    Snell & Wilmer LLP should be disqualified from representing entities at odds with each other in litigation brought by dozens of Chinese investors seeking to recoup the $500,000 they each sunk into a Colorado condominium project as part of the EB-5 visa program, one set of investors has contended.

  • January 03, 2020

    Chancery Fast-Tracks Records Bid Over $400M Paper Mill Deal

    A Delaware vice chancellor on Friday fast-tracked an investor bid seeking documents from paper producer Verso Corp. detailing a proposed $400 million deal to sell two of its paper mills as a planned stockholder vote on the proposal approaches.

  • January 03, 2020

    Indicted Ex-Longfin CEO Will Pay $400K To End SEC Action

    The former CEO of shuttered cryptocurrency company Longfin Corp., still facing criminal charges in New Jersey, has agreed to pay $400,000 to escape the U.S. Securities and Exchange Commission's parallel civil charges of securities fraud in New York.

  • January 03, 2020

    Investors End Claims Against Golf Club For 2nd Circ. Appeal

    Investors behind a suit accusing the executives of Winged Foot Golf Club of allowing the exclusive New York golf course to lease the grounds for a fraction of its value in order to maintain artificially low dues have voluntarily dismissed their remaining claims to pursue an appeal to the Second Circuit, according to a Thursday preliminary order in federal court.

  • January 03, 2020

    9th Circ. Says Technicality Doesn't Kill $1.1M Visa Fraud Deal

    The Ninth Circuit has decided that a district court retained the authority to enforce a settlement agreement despite a magistrate judge's failure to explicitly state its jurisdictional claim in a dismissal order, paving the way for a Chinese investor to recoup $1.1 million after alleged visa fraud.

  • January 03, 2020

    Blank Rome Adds Partner In Chicago As It Eyes Expansion

    Blank Rome LLP’s new Chicago office has gained a partner in its corporate, mergers and acquisitions, and securities group who was previously a managing partner at McGuireWoods and played a critical role in launching and expanding that firm's Windy City office.

  • January 03, 2020

    'Pyrrhic' Win In Bank's Bid To Freeze Fund's Waning Assets

    A New York trial court judge on Friday shruggingly granted a request by Curaçao bank Girobank NV to examine the legal bills of a nearly broke hedge fund and its managers targeted by the bank and the U.S. Securities and Exchange Commission over an alleged multimillion-dollar fraud scheme.

  • January 03, 2020

    Banks Deny Trading Benefit In UK Forex Rigging Suit

    Barclays and other banking giants accused by institutional investors of conspiring to rig the foreign exchange market said while some employee communications violated competition laws they denied the conduct had an effect on trade in the European Union.

  • January 03, 2020

    Prickett Jones Partner Tapped For Chancery Court Seat

    The governor of Delaware nominated Prickett Jones & Elliott PA partner Paul A. Fioravanti Jr. on Friday to fill the Court of Chancery vacancy created by the elevation of Vice Chancellor Tamika Montgomery-Reeves to the state Supreme Court.

  • January 02, 2020

    Wall Street Insider Trading Just Got Easier To Prosecute

    A recent Second Circuit ruling makes it easier to prosecute selling and trading on inside information, giving prosecutors a potential escape hatch from the increasingly complicated requirements to prove insider trading under the Securities Exchange Act.

  • January 02, 2020

    Convicted 'Real Housewife' Stuck Behind Bars During Appeal

    Disbarred Maryland attorney and former "Real Housewives" cast member Brynee Baylor can't avoid prison while she appeals her fraud conviction, as a Maryland federal judge said late Thursday that she's not buying Baylor's claim that the government sabotaged her defense.

  • January 02, 2020

    SEC Seeks Full Telegram Bank Records By Next Week

    The U.S. Securities and Exchange Commission on Thursday asked a New York federal judge to compel Telegram Group Inc. to quickly hand over bank records in a case alleging the company's $1.7 billion digital token sale was an unregistered securities offering.

  • January 02, 2020

    Auditing Firm Skirts Suit Over Decade-Old Fraud

    A group of investment companies who lost money because of a Ponzi scheme waited too long to sue an auditing firm for failing to discover the fraud, an Illinois appellate court has ruled, saying no automatic stay provisions applied to toll the case during bankruptcy proceedings. 

  • January 02, 2020

    Swiss Co. Hit With Civil, Criminal Stock Plot Charges

    New York federal prosecutors on Thursday announced criminal charges against a Swiss asset management firm, its owner and a Danish accomplice, claiming the duo earned millions off an elaborate pump-and-dump securities fraud scheme spanning six years.

  • January 02, 2020

    Developers Want Out Of EB-5 Fraud Claims Over Fla. Hotel

    A group of companies behind a Miami hotel project urged a Florida federal judge Thursday to shield them from allegations that they helped scam Chinese investors and dashed their chances of winning a green card through the EB-5 visa program.

  • January 02, 2020

    Estate Can't Yet Bar Bitcoin 'Inventor' Wife's Trial Testimony

    A Florida federal judge has ruled that it is too early to bar the wife of Bitcoin's self-proclaimed inventor from testifying at trial in a dispute with his ex-partner's estate, but noted the married couple's obstinance in making her available for a deposition.

  • January 02, 2020

    5 Firms Agree To Share Duties In Sears Investor Suit

    Labaton Sucharow, Prickett Jones & Elliott and Andrews & Springer have agreed to serve as co-lead counsel for a proposed class action filed by Sears Hometown and Outlet Stores investors accusing the former Sears CEO of a years-long effort that stripped value from the retailer, according to a Thursday Delaware Chancery Court filing.

  • January 02, 2020

    US Steel Investors Win Cert. In Stock-Drop Suit

    A Pennsylvania federal judge has certified a class of United States Steel Corp. investors who claim that the company caused a decline in its stock price by hiding inefficiencies at its production facilities.

Expert Analysis

  • Opinion

    Flat-Fee Legal Billing Can Liberate Attorneys

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    Replacing hourly billing with flat-fee arrangements, especially for appellate work, will leave attorneys feeling free to spend as much time as necessary to produce their highest quality work, says Lawrence Ebner of Capital Appellate Advocacy.

  • Spoliation Rule Remains Ambiguous Despite Amendments

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    Although the Federal Rules of Civil Procedure were amended to provide a uniform standard of culpability for spoliation, cases with similar facts are still reaching differing results because the rule does not specify how a court should evaluate a party's intent, say attorneys at Pepper Hamilton.

  • Opinion

    End Attorney Fee Trophy Hunting In Securities Litigation

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    A Delaware federal court's recent decision not to award attorney fees in Scott v. DST Systems is an important win for shareholders, but halting abusive fee hunting in securities litigation should be a priority for Congress and the U.S. Securities and Exchange Commission, says former SEC Commissioner Paul Atkins, CEO of Patomak Global Partners.

  • SEC's Fraud Enforcement Shows Quality, If Not Quantity

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    Over the course of the U.S. Securities and Exchange Commission's recently ended fiscal year, the regulator's Division of Enforcement fulfilled its promise to emphasize quality over quantity in cases alleging misrepresentations of financial performance by covering a wide swath of accounting, disclosure, internal control and auditor independence issues, say attorneys at Perkins Coie.

  • 5 Trends Influencing RFPs For Law Firms

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    Requests for proposals, the standard tool of companies evaluating law firms, are becoming better suited to the legal industry, says Matthew Prinn of RFP Advisory Group.

  • 2 Del. Decisions Call Out Conflicted Controlling Stockholders

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    In Tornetta v. Musk and the BGC Partners Derivative Litigation, the Delaware Chancery Court has reaffirmed that concerns over controlling stockholders may be valid even when the controller didn't intend to exercise coercive influence, independent directors negotiated a transaction, or stockholders approved the transaction, say attorneys at Fried Frank.

  • MDLs Are Redefining The US Legal Landscape

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    With last week’s settlement of a bellwether case in the national prescription opiate multidistrict litigation as one example, a shift toward more expeditious and individualized MDLs is taking place, with the potential to effect profound change in the U.S. legal space, say Alan Fuchsberg and Alex Dang of the Jacob Fuchsberg Law Firm.

  • An Internal Investigation Playbook For Energy Cos.: Part 3

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    Energy companies should prepare for internal investigations with a plan that evaluates the scope of the problem and carefully considers the roles of all stakeholders, say attorneys with King & Spalding.

  • Night Of The Living SEC Injunction

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    Just in time for Halloween, the Third Circuit's opinion in U.S. Securities and Exchange Commission v. Gentile raises the specter of time-barred conduct returning to haunt securities industry defendants. The decision deepens a circuit split that could trigger U.S. Supreme Court intervention, say Matthew Newman and Lauren Randell at Buckley.

  • Series

    Why I Became A Lawyer: Being There For Families In Trouble

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    My parents' contentious, drawn-out divorce was one of the worst experiences of my life. But it taught me how to be resilient — and ultimately led me to leave corporate litigation for a career in family law, helping other families during their own difficult times, says Sheryl Seiden of Seiden Family Law.

  • Protecting Against Corruption In State Cannabis Licensing

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    As federal prosecution of cannabis business corruption continues to make headlines, companies that wish to ensure their local business partners are compliant with state licensing regimes should consider certain factors and red flags when evaluating potential cannabis investments, say Tom Firestone of Baker McKenzie and Tanya Hoke of Galen Diligence.

  • An Internal Investigation Playbook For Energy Cos.: Part 2

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    When engaged in the difficult process of an internal investigation, an energy company's general counsel must understand best practices for conducting witness interviews, compiling an investigation report and working with independent auditors, say attorneys at King & Spalding.

  • SEC's New ETF Rule Is A Win For Issuers, Investors

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    A new rule from the U.S. Securities and Exchange Commission streamlines the creation and operation of exchange-traded funds — reducing costs and fostering competition among ETF providers, and potentially leading to lower fees and better options for investors, says Kathleen Moriarty at Chapman and Cutler. 

  • DOJ Guidance Offers Needed Flexibility For Corporate Fines

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    The U.S. Department of Justice's recently announced multistep process for evaluating claims of inability to pay criminal penalties opens the door to more thoughtful negotiations between companies and prosecutors seeking to punish and deter misconduct while avoiding unnecessary collateral harm, say Ephraim (Fry) Wernick and Brittany Harwood of V&E.

  • SEC's Crypto Actions Reinforce Hard Line On Digital Assets

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    Recent cryptocurrency regulatory activity from the U.S. Securities and Exchange Commission — including an enforcement action, a joint regulatory statement and a fund launch rejection — is the latest example of the regulator's ascendance as an effective and outspoken cryptocurrency overseer, says cybersecurity consultant John Reed Stark.

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