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Securities
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May 23, 2025
McMahon Tries To Limit Misconduct Docs In WWE Merger Suit
The former CEO of World Wrestling Entertainment Inc. has pushed back against efforts to force him to hand over documents relating to his alleged sexual misconduct and hush money payments in a class action over the company's merger with Ultimate Fighting Championship, telling the Delaware Chancery Court they are irrelevant to the shareholders' suit.
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May 23, 2025
Biotech Insider Traded On $3.5B Novartis Deal, Feds Say
A former board member at Chinook Therapeutics orchestrated an insider-trading scheme after learning about Novartis' plans to purchase the biotech company for $3.5 billion in 2023, according to an indictment announced Friday.
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May 23, 2025
2 Firms Tapped To Lead Visa Derivative Suits Over DOJ Claims
A California federal judge has combined lawsuits accusing Visa's executives and directors of allowing the company to understate the regulatory risk it faced by engaging in anticompetitive actions currently at the center of a lawsuit brought by the U.S. Department of Justice last year, and appointed two law firms to lead the litigation.
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May 23, 2025
Wrigley Scion Can't Avoid Fraud Claims, Pot Co. Ex-Execs Say
Former executives of troubled medical marijuana company Parallel said its former CEO, scion to the Wrigley gum fortune, shouldn't be allowed to escape a lawsuit accusing him of lying about share prices to lure executive talent, slamming his motion to dismiss.
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May 22, 2025
SEC Drops Dealer Suits In 'Astonishing' Move, Crenshaw Says
The U.S. Securities and Exchange Commission on Thursday dropped several suits targeting businesses for failing to register as securities "dealers" with the agency as required by law, a move that the SEC's sole Democratic commissioner called "astonishing."
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May 22, 2025
Lottery.com Execs Cop To Securities Fraud In SPAC Case
Two former Lottery.com executives pled guilty Thursday to their role in a scheme to fraudulently inflate reported revenues in a 2021 take-public deal involving the mobile and online lottery gaming platform company.
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May 22, 2025
EV Carmaker Lucid Gets Inflated Biz Suit Trimmed, Again
A California federal judge on Thursday again trimmed a proposed investor class action that alleges electric carmaker Lucid made misleading production forecasts, finding that the latest complaint still doesn't adequately allege the defendants knew some of the challenged statements were false when they were issued.
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May 22, 2025
Chegg Investors Get Final OK In $55M Student Cheating Deal
A California federal judge on Wednesday gave his blessing to a $55 million settlement resolving investor claims that educational technology company Chegg Inc. falsely attributed its "dramatic growth" during the COVID-19 pandemic to its sustainable business model, rather than to students using the platform to cheat.
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May 22, 2025
Fiber Optics Co.'s Leaders Sued Over Financial Restatements
Officers and directors of fiber optics technology company Luna Innovations Inc. are facing a shareholder derivative complaint after the company announced it would revise certain financial statements after prematurely recognizing certain revenue it hadn't actually earned yet.
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May 22, 2025
Proxy Proposal Omissions Rose Post-SEC Bulletin, Study Finds
There was a sharp drop in the total number of shareholder proxy proposals submitted this year and a rise in the number of submitted proposals that were omitted from corporate ballots following the U.S. Securities and Exchange Commission's rescission of past guidance, ISS Corporate Solutions Inc. said Thursday.
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May 22, 2025
7th Circ. Wary Of Crypto Fund Owner's Appeal Of $231M Fine
A Seventh Circuit panel on Thursday pressed counsel for a cryptocurrency fund operator challenging a $231 million judgment for running a Ponzi scheme to address whether he'd waived his argument that the digital tokens his funds invested in aren't "commodities" subject to regulation by the Commodity Futures Trading Commission by not raising it in the lower court.
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May 22, 2025
Gov't Presses High Court To Hear Activist Investor Suit
The federal government Thursday urged the U.S. Supreme Court to hear a case accusing a series of closed-end funds of shutting an activist investor out of its voting rights, arguing that the investor's lawsuit threatens to have an "unpredictable impact" on the private fund industry.
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May 22, 2025
Federal Gov't Backs States' BlackRock Coal Investments Suit
The federal government on Thursday threw its support behind a case from Texas and several other states that accuses investment groups including BlackRock Inc. of using their energy holdings to drive up coal prices under the guise of environmental concerns.
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May 22, 2025
Justices Allow Trump To Fire NLRB, MSPB Members, For Now
The U.S. Supreme Court on Thursday ruled two fired members of the National Labor Relations Board and the Merit Systems Protection Board cannot return to work while they challenge President Donald Trump's authority to fire them without cause, handing the president a win in his crusade against a 90-year-old precedent limiting his power to fire employees at independent agencies.
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May 22, 2025
Nuclear Power Co. Dodges Suit Over Contract Disclosures
Nuclear power company NuScale Power Corp. and its top brass have escaped, for now, a proposed investor class action alleging the company failed to disclose certain issues affecting two purportedly lucrative contracts it touted to shareholders, including one tied to crypto mining, with an Oregon federal judge finding the investors failed to plead any actionable misleading statements, among other things.
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May 22, 2025
Chancellor Wants Del. High Court To Review 'DExit' Corp. Law
Delaware's chancellor wants the state's high court to weigh in on a constitutional challenge of the controversial corporate law overhaul signed into law in March in an attempt to stave off more corporate charter relocations and protect the state's legal industry and $2 billion in annual corporate franchise fees.
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May 22, 2025
Silvergate Estate To Chip In For $37.5M Investor Settlement
Silvergate Capital and investors suing over its collapse have reached a $37.5 million deal with a "rare" source of partial funding to resolve claims that the failed crypto-focused bank misrepresented its safeguards against onboarding customers like FTX, the fraud-ridden crypto exchange that made up roughly a sixth of the bank's deposit base.
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May 21, 2025
Tech CEO Duped Investors, Faked Blockchain Deals, Feds Say
The co-founder and CEO of Amalgam Capital Ventures on Wednesday was charged with defrauding investors in the purported blockchain-based software startup by lying about sky-high revenue projections and partnerships with well-known businesses, including major league sports teams and top payment processing platforms.
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May 21, 2025
Fox Accuses Smartmatic Of Destroying 'Critical' Evidence
Fox News on Wednesday called for Smartmatic to be sanctioned, claiming that nearly two-dozen executives and other employees at the voting tech company destroyed "critical" evidence related to the company's defamation case against the television network, an accusation that comes a week after Smartmatic said Fox deleted relevant texts.
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May 21, 2025
CFTC Member Says Enforcement Needs More Transparency
The U.S. Commodity Futures Trading Commission's Christy Goldsmith Romero on Wednesday called on the agency to be more transparent about its enforcement decisions, while laying out the factors she weighs in crediting firms for self-reporting and cooperation.
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May 21, 2025
House Panel Advances Bills Easing Securities, Banking Regs
The U.S. House of Representatives Financial Services Committee this week approved 25 bills largely aimed at reducing capital markets and banking regulations, moving the deregulatory proposals forward for consideration by the full House.
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May 21, 2025
Title Insurance Co. Fights Treasury All-Cash Resi Deals Rule
A title insurance company and a subsidiary have filed suit in Florida federal court challenging new reporting requirements for all-cash real estate closings, saying the rule exceeds the U.S. Department of the Treasury's Financial Crimes Enforcement Network's authority.
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May 21, 2025
AbbVie Gets Victory In Allergan Shareholder Suit Upheld
An Illinois state appellate panel said Wednesday that a trial court properly dismissed a shareholder class action against biopharmaceutical company AbbVie Inc. that accused the drugmaker of issuing unregistered shares to investors after acquiring Irish pharmaceutical company Allergan.
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May 21, 2025
Chancery Orders Nominating Do-Over For Ionic Board Vote
Citing overwhelming trial evidence, a Delaware vice chancellor on Wednesday told bankrupt Celsius Network's Ionic Digital successor to reopen a board nomination window after finding that the company wrongly eliminated one of two director seats ahead of an election in a defensive move targeting dissident candidates.
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May 21, 2025
Intel Investors Say They Fixed Suit Over Chipmaking Woes
Intel Corp. investors say a California federal judge should reject the company's bid to dismiss a suit claiming it concealed problems in its domestic computer chipmaking business, arguing they have fixed all potential deficiencies in the suit that previously led to its dismissal.
Expert Analysis
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The OCC's Newly Relaxed Approach To Bank Crypto Activity
With the early March rescission of Biden-era interpretive guidance, the Office of the Comptroller of the Currency has loosened its approach to regulating national banks and federal savings associations' crypto-asset activities, possibly removing one barrier to banks engaging in such activities, say attorneys at Debevoise.
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Firms Must Embrace Alternative Billing Models Or Fall Behind
As artificial intelligence tools eliminate inefficiencies and the Big Four accounting firms enter the legal market, law firms that pivot from the entrenched billable hour model to outcomes-based pricing will see a distinct competitive advantage, says attorney William Brewer.
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Opinion
7 Ways CFTC Should Nix Unnecessary Regulatory Burdens
Several U.S. Commodity Futures Trading Commission regulations do not work efficiently in practice, all of which can be abolished or improved in order to comply with a recent executive order requiring the elimination of 10 regulations for every new one implemented, say attorneys at K&L Gates.
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How Attorneys Can Master The Art Of On-Camera Presence
As attorneys are increasingly presented with on-camera opportunities, they can adapt their traditional legal skills for video contexts — such as virtual client meetings, marketing content or media interviews — by understanding the medium and making intentional adjustments, says Kerry Barrett.
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What Del. Corporate Law Rework Means For Founder-Led Cos.
Although the amendments to the Delaware General Corporation Law have proven somewhat divisive, they will provide greater clarity and predictability in the rules that apply to founder-led companies navigating transactions concerning controlling stockholders and responding to books-and-records requests, say attorneys at Munger Tolles.
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Series
Baseball Fantasy Camp Makes Me A Better Lawyer
With six baseball fantasy experiences under my belt, I've learned time and again that I didn't make the wrong career choice, but I've also learned that baseball lessons are life lessons, and I'm a better lawyer for my time at St. Louis Cardinals fantasy camp, says Scott Felder at Wiley.
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Paul Atkins' Past Speeches Offer A Glimpse Into SEC's Future
Following Paul Atkins' Thursday Senate confirmation hearing, a look at his public remarks while serving as a commissioner at the U.S. Securities and Exchange Commission between 2002 and 2008 reveals eight possible structural and procedural changes the SEC may see once he likely takes over as chair, say attorneys at Covington.
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Series
Adapting To Private Practice: From Fed. Prosecutor To BigLaw
Making the jump from government to private practice is no small feat, but, based on my experience transitioning to a business-driven environment after 15 years as an assistant U.S. attorney, it can be incredibly rewarding and help you become a more versatile lawyer, says Michael Beckwith at Dickinson Wright.
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The Fund Finance Market Is In Its Transformative Era
The fund finance market is experiencing explosive growth as it develops into a mature and sophisticated industry, with several recent developments – such as an increase in net asset value lending and a shift toward borrower-friendly terms – reshaping the landscape of this rapidly evolving sector, say attorneys at Fried Frank.
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How Del. Supreme Court, Legislature Have Clarified 'Control'
The Delaware Supreme Court's January decision in In re: Oracle and the General Assembly's passage of amendments to the Delaware General Corporation Law this week, when taken together, help make the controlling-stockholder analysis clearer and more predictable for companies with large stockholders, say attorneys at Baker Botts.
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Service By Token Is Transforming Crypto Litigation Landscape
As the Trump administration advocates a new course of cryptocurrency regulation, courts in the U.S. and abroad are authorizing innovative methods of process service, including via nonfungible tokens and blockchain messaging, offering practical solutions for litigators grappling with the anonymity of cyber defendants, says Jose Ceide at Salazar Law.
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Opinion
SEC Shouldn't Complicate Broker-Dealers' AML Compliance
Recent U.S. Securities and Exchange Commission anti-money laundering enforcement actions show that regulators should not second-guess broker-dealers' reasonable judgment, or stretch the law or their jurisdiction to regulate through enforcement, lest they expect broker-dealers to vigorously defend their AML programs, say attorneys at WilmerHale.
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Executive Orders Paving Way For New Era Of Crypto Banking
Recent executive orders have already significantly affected the day-to-day operations of financial institutions that have an interest in engaging with digital assets, and creating informed strategies now can support institutions as the crypto gates continue to open to the banking industry, say attorneys at Spencer Fane.
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Retirement Plan Suits Show Value Of Cybersecurity Policies
Several data breach class actions that were recently filed against retirement plan administrator The Pension Specialists in Illinois federal court are a reminder that developing and following a good written cybersecurity policy provides a blueprint for compliance and may prevent lawsuits, says Carol Buckmann at Cohen & Buckmann.
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Explaining CFPB's Legal Duties Under The Dodd-Frank Act
While only Congress can actually eradicate the Consumer Financial Protection Bureau, the Trump administration has sought to significantly alter the agency's operations, so it's an apt time to review the minimum baseline of activities that Congress requires of the CFPB in Title X of the Dodd-Frank Act, say attorneys at Bradley Arant.