Securities

  • January 02, 2020

    Chancery Tosses Challenge To $1B Essendant-Staples Merger

    A stockholder challenge to last year's $1 billion merger of office supply giants Essendant Inc. and Staples Inc. came up short in a Delaware Chancery Court dismissal ruling that found fatal troubles in each of five counts against the sellers or buyers.

  • January 02, 2020

    Mass. Says Federal Court No Place For Exxon Climate Suit

    Massachusetts told a federal court there's no merit to ExxonMobil Corp.'s attempt to block a state court from deciding claims that the company deceived investors and consumers about climate change-related risk, saying the suit alleges violations of only state laws. 

  • January 02, 2020

    Crypto Biz Blames FaegreBD's Advice For $200K SEC Fine

    Faegre Baker Daniels LLP engaged in malpractice when it told two related cryptocurrency investment companies that their assets didn't qualify as securities, which led to a U.S. Securities and Exchange Commission investigation and a $200,000 fine, the companies' founder has claimed in Illinois state court.

  • January 02, 2020

    SEC Proposes To Ease Auditor Independence Rules

    The U.S. Securities and Exchange Commission wants to ease auditor independence rules in ways that would allow auditing firms more latitude in assessing conflicts of interest concerning the companies they audit, marking the first significant changes to rules enacted two decades ago.

  • January 02, 2020

    Charities Must Report Crypto Donations, IRS Says

    Charities that receive virtual-currency-based donations are obligated to report the donations to the Internal Revenue Service, the agency said in recent guidance on cryptocurrencies.

  • January 02, 2020

    Chancery Keeps $1.4B Fresh Market Sale Challenge Alive

    The Delaware Chancery Court is refusing to dismiss class claims that three former top officers of Fresh Market Inc. breached their fiduciary duties to the company during an allegedly flawed, $1.4 billion go-private sale to affiliates of Apollo Global Capital in 2016.

  • January 02, 2020

    ArQule Investor Wants More Detail On $2.7B Merck Sale

    An ArQule Inc. investor filed a proposed class action in Delaware federal court Thursday asserting stockholders need more information about Merck's $2.7 billion acquisition of the cancer-focused biopharmaceutical company to make an informed vote on the transaction.

  • January 01, 2020

    Fintech Litigation To Watch In 2020

    In 2019, the U.S. Securities and Exchange commission brought a pair of closely watched actions against Kik Interactive Inc. and Telegram Group Inc. for unregistered offerings of digital tokens, setting the stage for an intriguing 2020. Two other big names in fintech, Bitfinex and Tether, faced questions about potential market manipulation.

  • January 01, 2020

    Cannabis Cases To Watch In 2020

    As the cannabis industry has solidified its place in the country’s economy over the last year, it also has solidified its presence in the courts. The next year offers many opportunities to see where the cannabis industry is headed, through the lens of the country’s court systems. Here are some of the cases Law360’s cannabis team will be following in 2020.

  • January 01, 2020

    New York Cases To Watch In 2020

    New York courts are no stranger to high-profile matters, and 2020 will be no different. In the coming year, big-ticket items will include a legal headache for Rudy Giuliani that could morph into something worse, an international insider trading bust and charges against attorney Michael Avenatti.

  • January 01, 2020

    Benefits Regulations And Legislation To Watch In 2020

    Benefits and executive compensation attorneys should keep an eye on the U.S. Securities and Exchange Commission’s efforts to regulate proxy advisory firms, the U.S. Department of Labor’s plan to pass fiduciary guidance and Congress’ intent to save struggling multiemployer pension plans in 2020. Here, Law360 looks at the policy moves benefits attorneys should watch out for in the New Year.

  • January 01, 2020

    4 Financial Services Litigation Hot Spots To Watch In 2020

    Attorneys from across the financial services spectrum told Law360 that they’ll be paying close attention to the battle over the Consumer Financial Protection Bureau at the U.S. Supreme Court this spring, but the new year could also bring a rising tide of overdraft fee litigation and new developments around a controversial loan validity doctrine. Here are four hot spots of litigation that financial services attorneys said they will be watching in 2020.

  • January 01, 2020

    Delaware Cases To Watch In 2020

    After riding a multiyear flood of merger battles and a changing of the guard after Chief Justice Leo E. Strine Jr.'s recent retirement, Delaware's main business courts appear to be headed into calmer waters in 2020, court watchers say, although Chancery Court trial calendars are already full for the year and decisions in big cases lie just around the bend.

  • January 01, 2020

    Securities Litigation To Watch In 2020

    In 2020, securities attorneys will be following a U.S. Supreme Court case that will decide the scope of the U.S. Securities and Exchange Commission's disgorgement powers and an appeal before the Second Circuit concerning price maintenance theory.

  • January 01, 2020

    Banking Regulation To Watch In 2020

    Banks, lenders, debt collectors and more are in line for significant regulatory developments in 2020 as federal agencies push toward the finish line on rulemaking projects like overhauling the Volcker Rule and rolling back underwriting standards for payday loans.

  • January 01, 2020

    Opioid, Theranos Cases Among Key Trials To Watch In 2020

    Another showdown between municipalities and the opioid industry, more product liability cases over Roundup weedkiller, and high-stakes criminal proceedings for attorney Michael Avenatti and Theranos founder Elizabeth Holmes are sure to make headlines in the new year. Here, Law360 previews some of the more intriguing and significant trials expected in 2020.

  • January 01, 2020

    SEC And CFTC Regulatory Priorities To Watch In 2020

    Ahead of the 2020 presidential election, the nation’s securities and derivatives watchdogs expect to move ahead with heightened urgency on long-awaited rulemaking proposals that could shape the legacy of the chairmen of both agencies. Here, Law360 looks at regulatory matters to watch.

  • January 01, 2020

    White Collar Cases To Watch In 2020

    In 2020, defense attorneys will have their eye on a number of cases and trends, including the potentially game-changing U.S. Supreme Court review of convictions stemming from the Bridgegate scandal, a racketeering case against traders at JPMorgan Chase and a continued focus on sanctions enforcement.

  • January 01, 2020

    The Most Closely Watched Merger Reviews Of 2020

    U.S. antitrust enforcers have a lot on their plates in the new year, scrutinizing major technology platforms even as they weigh mergers involving massive companies not just in the online and privacy spaces but also in pharmaceuticals and investment brokerages. 

  • January 01, 2020

    Fintech Regulation To Watch In 2020

    Fintech regulation accelerated in 2019, with federal agencies focusing on the digital-asset enforcement front while also accepting a handful of digital token offerings. Countries also worked together to address many of the growing concerns around illicit activity in fintech. Here, Law360 looks forward to what might be afoot for fintech regulation in 2020.

  • December 23, 2019

    Ex-Calif. Oil Boss Charged Over Alleged $15M Ponzi Scheme

    The former head of Citadel Energy was indicted on Friday on allegations that he ran a $15 million Ponzi scheme, bilking investors in partnerships purportedly meant to fund water-related services to oil and gas companies in North Dakota.

  • December 23, 2019

    BlackRock Can't Get Chancery To Nix PennyMac Investor Suit

    A Delaware Chancery judge on Friday rejected a bid by investment management giant BlackRock Inc. to toss a derivative and proposed class action filed by a PennyMac Financial Services Inc. investor that claims a corporate reorganization of the mortgage company was unfair to certain stockholders while benefiting others such as BlackRock.

  • December 20, 2019

    5th Circ. Again Backs $133M Stanford Ponzi Scheme Deals

    The Fifth Circuit has stood by its decision to uphold receiver settlements resolving Stanford Ponzi scheme-related claims against two insurance brokers for a combined $133 million, a ruling that objectors argued contradicted an earlier rejection of a $65 million deal with a group of insurance underwriters.  

  • December 20, 2019

    CFTC Sues Ex-HSBC Exec Over Price-Manipulation Scheme

    A former HSBC executive was hit with a lawsuit Friday by federal regulators who claim he manipulated the price of an interest rate swap ahead of a client's $2 billion bond offering, according to a complaint filed in New York federal court.

  • December 20, 2019

    Baker Donelson Says It Doesn't Belong In Timber Scam Suit

    Any alleged wrongdoings committed by a Baker Donelson Bearman Caldwell & Berkowitz PC board member and a firm lobbyist involving a massive timber business Ponzi scam were unrelated to their work at the firm, Baker Donelson said Friday in a bid to shake off a receiver's Mississippi federal court complaint.

Expert Analysis

  • An Internal Investigation Playbook For Energy Cos.: Part 1

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    From corruption to data breaches, environmental catastrophes to human resource issues, energy companies regularly face challenges that may require internal investigations — and having guidelines in place for conducting such investigations can help general counsels prepare for whatever may come, say attorneys at King & Spalding.

  • Opinion

    Congress Must Step Up To Regulate Social Media Giants

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    Congress' recent hearing on Facebook's cryptocurrency Libra, which went well beyond cryptocurrency, reveals the need for laws and regulations that will hold social media giants accountable for data privacy violations and improve content moderation, says attorney Andrew Rossow.

  • Counseling Cannabis Cos. Requires A Holistic Approach

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    Cannabis-related businesses operate in one of the most challenging regulatory environments of any consumer sector, such that specialized legal services are required to avoid disastrous consequences to companies, principals and investors, say Ian Stewart of Wilson Elser and Garrett Graff of Hoban.

  • 4 Ways To Address Rising OFAC Cryptocurrency Oversight

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    The Office of Foreign Assets Control has demonstrated its interest in regulating cryptocurrency and may have begun collecting information from over a dozen digital currency exchange platforms, which means those with an interest in utilizing cryptocurrency or participating in an initial coin offering should proceed with caution, say Ryan Rohlfsen and Betsy Varnau at Ropes & Gray.

  • Trading Models Underestimate Securities Class Damages

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    In securities class actions, the discrepancy between trading model estimates of damaged shares and the actual number of valid damaged share claims reveals a need to account for recent changes in trading patterns and the claims process, say Narinder Walia and Adam Werner at Crowninshield Financial Research.

  • Opinion

    Securities Class Period Selection Deserves Greater Scrutiny

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    Over-inclusive class periods in securities litigation only make scienter and loss causation harder to prove, and can also artificially inflate potential classwide damages by attempting to allege the fraud began sooner, says Nessim Mezrahi of SAR.

  • FCPA Lessons On 3rd-Party Risks And Cooperation Credit

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    The Microsoft settlement, along with other recent Foreign Corrupt Practices Act enforcement actions, demonstrates the need to prioritize compliance resources in high-risk jurisdictions if third-party intermediaries are engaged and provides insight into how the U.S. Department of Justice voluntary disclosure policy operates, say attorneys at FaegreBD.

  • Where Law Firm Partners Go When Changing Jobs

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    We reviewed 177 law firm partners' job changes from the last seven years and discovered some migration patterns and gender dynamics, say James Bailey of the George Washington University School of Business and Jane Azzinaro of Cognizant.

  • SEC's Bitwise ETF Rejection Signals Bitcoin Market Distrust

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    The U.S. Securities and Exchange Commission recently rebuffed Bitwise Asset Management’s bitcoin exchange-traded fund, demonstrating the regulator's doubts over the market's integrity, and diminishing the chances that the SEC approves a bitcoin ETF this year, says Andrew Mount at Bressler Amery.

  • 3 Ways To Leverage Vulnerability For Lawyer Well-Being

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    Admitting to imperfection is an elusive construct in the legal industry, but addressing this roadblock by capitalizing on vulnerabilities can increase personal and professional power, says life coach and attorney Julie Krolczyk.

  • Enhanced Corporate Governance Requires Proactive Strategy

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    Independent compliance checks are necessary for boards to combat overreliance on internal watchdogs and third-party auditors to prevent corporate governance catastrophes, says Frederick Lipman at Blank Rome.

  • Navigating US-China Trade Amid New Era Of FinCEN

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    Following the launch of the U.S. Financial Crimes Enforcement Network's new Global Investigations Division, FinCEN’s enhanced powers should be on the radar of U.S. and Chinese companies engaging in cross-border transactions, says James Berger at Jia Law Group.

  • What Do Market Overreactions Mean For Securities Litigation?

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    The possible overreaction of stock prices to public company corrective disclosures could have implications on securities fraud litigation when it comes to proving reliance on that information, applying the fraud-on-the-market doctrine, and relying on market efficiency, say David Marshall and Roland Eisenhuth at Epsilon Economics.

  • New Data Shows BigLaw's True Profitability

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    Based on an analysis adjusting BigLaw operating income and revenue to account for equity partners and taxes, the profitability of firms is lower than commonly thought, says Madhav Srinivasan at Hunton.

  • Mylan Case Shows SEC Stance On Disclosing Investigations

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    The U.S. Securities and Exchange Commission's recently settled action against Mylan — for failing to promptly disclose an investigation into the drugmaker's EpiPen — provides insight for public companies weighing whether and when to disclose government investigations, say attorneys at Cleary Gottlieb.

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