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Securities

  • December 7, 2018

    Trump Picks Kirkland's William Barr For AG

    President Donald Trump named Kirkland & Ellis LLP attorney William Barr as his pick to replace former Attorney General Jeff Sessions Friday, setting Barr up to reprise the role he served under late President George H.W. Bush.

  • December 6, 2018

    S&P Analyst, Jeweler Can't Dodge Insider Trading Charges

    A New York federal court judge refused Thursday to dismiss an indictment against two men accused of insider trading stemming from Sherwin-Williams Co.'s plans to acquire Valspar Corp. in a case that's already seen a third man, a celebrity hairstylist, plead guilty to securities fraud conspiracy.

  • December 6, 2018

    Bitcoin Market 'Hijacking' Caused $4B Value Drop, Suit Says

    A lawsuit filed Thursday in Florida federal court by a Miami-based company accused several prominent players in the Bitcoin Cash cryptocurrency network of hijacking a software upgrade, leading to a "global capitalization meltdown" of more than $4 billion and harm to it and other U.S. bitcoin holders.

  • December 6, 2018

    $10M Pa. Investor Suit Adds To Bankrupt OneJet's Woes

    A group of investors in defunct airline startup OneJet are suing the company’s officers, saying the startup’s leadership enticed investors by falsely claiming the company was doing well despite it being on the brink of bankruptcy.

  • December 6, 2018

    Wall St. Lobby Fights State Action On 'Best Interest' Standard

    Wall Street’s top trade association and leading lobbyist plans to keep pressure next year on state officials who consider following Nevada in imposing a higher standard of care on broker-dealers.

  • December 6, 2018

    SEC Gives Up On Litvak Suit After Feds Drop Charges

    A Connecticut federal judge on Thursday agreed to dismiss the U.S. Securities and Exchange Commission’s civil suit against former Jefferies Group LLC bond trader Jesse Litvak in the wake of the end of his five-year criminal case in which he was convicted twice but saw those convictions overturned.

  • December 6, 2018

    Raydon Sued Over Employee Plan's $60.5M Share Buy

    Raydon Corp. and two of its executives were hit with a proposed Employee Retirement Income Security Act class action in Florida federal court Thursday, alleging that they wrongly let an employee stock ownership plan purchase all of the government contractor's stock for the inflated price of $60.5 million.

  • December 6, 2018

    Banks Look To Sink Millennium Trustee’s $35M Clawback Suit

    A group of banks that facilitated a $1.8 billion recapitalization dividend transaction for reorganized debtor Millennium Lab Holdings II LLC in 2014 told a Delaware bankruptcy judge Thursday that an estate trustee’s clawback action seeking recovery of $35.3 million in fees paid to the banks should be dismissed.

  • December 6, 2018

    Solar Co., Investors Seek End To Suit After Chancery Prod

    Opponents in an investor-led merger challenge and stock appraisal suit involving two solar power technology companies reported a settlement agreement late Thursday, potentially heading off litigation that Delaware's chancellor recently warned could burn any possible benefits.

  • December 6, 2018

    Saul Ewing Attorney Selected As Master In Del. Chancery

    Selena E. Molina, who has worked for the past year as an associate attorney in the litigation department of Saul Ewing Arnstein & Lehr LLP, has been appointed as a master in the Delaware Chancery Court.

  • December 6, 2018

    Genocea Beats Investor Claims It Hid Truth About Herpes Drug

    A Massachusetts federal judge dismissed a proposed investor class action Thursday against Genocea Biosciences Inc., saying accusations that the company hid negative test results before announcing it could not finance ongoing trials for a genital herpes immunotherapy were not sufficiently supported for the case to proceed.

  • December 6, 2018

    Ill. Woman Gets 4 Years For $5M Ticket Fraud Scheme

    A Chicago woman who promised investors she could buy and resell big-time concert tickets at a profit was sentenced to four years in prison on Thursday, federal officials announced, as the only house she ever filled was her own with luxury items paid for by the $5 million she stole from her victims.

  • December 6, 2018

    Investor Attys In Santander Accounting Row Deal Seek $3.2M

    Glancy Prongay & Murray LLP, The Rosen Law Firm PA and other counsel for investors seeking final approval of a $9.5 million settlement with the vehicle financing unit of Santander Bank asked a Texas federal judge for exactly one-third of the settlement fund — a little over $3.16 million — in attorneys' fees.

  • December 6, 2018

    Ex-Chimera CEO Pleads Guilty In Stock Inflation Scam

    The former CEO of Chimera Energy Corp. has entered a guilty plea before a Texas federal court for his role in a scheme to manipulate the price of the company's stock, agreeing to forfeit more than $240,000 and serve as a cooperating witness.

  • December 6, 2018

    Former Bank IT Contractor Shared Insider Info, SEC Says

    The U.S. Securities and Exchange Commission filed insider trading charges Thursday against a former information technology contractor for allegedly trading on and tipping his wife and father about confidential information about mergers and acquisitions that he gleaned while working at a prominent investment bank.

  • December 6, 2018

    Miami Investment Firms' CEO Arrested On Fraud Charges

    A Miami man was arrested Thursday on fraud and identity theft charges for allegedly misappropriating more than $5.5 million he solicited for two purported investment companies he established and also for attempting to deceive federal regulators by impersonating a victim-investor, the U.S. Department of Justice announced.

  • December 6, 2018

    Mass. Priest Can't Escape SEC's Short-Selling Suit

    A Greek Orthodox priest who is also a hedge fund manager lost his bid to duck a U.S. Securities and Exchange Commission short-selling suit after a Massachusetts federal judge said from the bench Thursday that she will keep at least one of the counts against him alive.

  • December 6, 2018

    AmTrust Says Switching Auditors Doesn't Equal Fraud

    AmTrust Financial Services urged a New York federal judge Wednesday to toss a second amended complaint alleging its 2017 financial restatements led to a stock price drop for which it is now responsible, saying switching auditors and adhering to the new auditor's accounting standards is not securities fraud.

  • December 6, 2018

    Proxy Firms Should Be Regulated, Senate Panel Hears

    A former U.S. Securities and Exchange Commission official and a business lobbyist on Thursday both told U.S. senators that proxy advisory firms should be scrutinized more closely given their influence over corporate elections, though a New York City assistant comptroller warned of overreach that could backfire against investors.

  • December 6, 2018

    Ex-Sears CEO's Fund Submits $4.6B Ch. 11 Purchase Bid

    The hedge fund run by Sears Holding Corp. chairman and former CEO Eddie Lampert has said it will make a $4.6 billion offer to buy the bankrupt retail giant that the fund says would preserve about 500 stores and 50,000 jobs across the country.

Expert Analysis

  • 5 Things You Should Know About New Rule 23 Amendments

    John Lavelle

    For the first time in 15 years, Federal Rule of Civil Procedure 23, governing class actions, has been amended. There are five key changes that will likely impact future federal class action litigation and settlements, say John Lavelle and Terese Schireson of Morgan Lewis & Bockius LLP.

  • Société Générale: Sanctions Enforcement Is Alive And Well

    Ama Adams

    The recent settlement between Société Générale and U.S. regulators illustrates that U.S. sanctions enforcement authorities may be shifting their attention back to large financial institutions after several years of relatively quiet enforcement across the financial services industry, say attorneys with Ropes & Gray LLP.

  • Opinion

    High Court Should Hold Securities Fraudsters Accountable

    Stephen Hall

    On Monday, the U.S. Supreme Court will hear oral argument in Lorenzo v. U.S. Securities and Exchange Commission. If the court rules that scheme liability doesn’t apply to cases involving false statements, the result will be more victims and more fraud that goes unpunished, says Stephen Hall of Better Markets.

  • Taberna Bankruptcy Ruling Brings Relief For CDO Investors

    James Bentley

    A New York bankruptcy court's recent dismissal of Taberna Preferred Funding's involuntary Chapter 11 case reinforces the accepted principle that contractual terms are the best means for liquidating a nonrecourse securitization vehicle — good news for those interested in the stability of the collateralized debt obligation model, says James Bentley of Schulte Roth & Zabel LLP.

  • Winklevoss Ruling Highlights Subjective Aspects Of SEC Mission

    Buddy Donohue

    A lot has been written about the U.S. Securities and Exchange Commission's decision this summer to deny Bats BZX Exchange's application to list and trade shares of the Winklevoss Bitcoin Trust. The debate that has ensued is really about the role of the SEC, says Buddy Donohue of Shearman & Sterling LLP.

  • Opinion

    Spearfishing Can Be Stopped Once You Remove The Bait

    Daniel Garrie

    A recent report from the U.S. Securities and Exchange Commission demonstrates that spearfishing email scams are rampant today, and that the current defenses are falling short. We have found one solution to be effective — remove the reply feature on employee email, say Daniel Garrie and Yoav Griver of Zeichner Ellman & Krause LLP.

  • Justices May Struggle To Agree On Rule 10b-5 Scope

    Arthur Greenspan

    Next week, the U.S. Supreme Court will hear argument in Lorenzo v. U.S. Securities and Exchange Commission, which could clarify the range of liability under Rule 10b-5. But Lorenzo will be decided by an eight-justice court — a circumstance that might significantly affect how the case gets resolved, say Arthur Greenspan and Jacob Taber of Richards Kibbe & Orbe LLP.

  • FCPA Compliance 1 Year After DOJ Revised Policy

    Jack Sharman

    It has been a year since the U.S. Department of Justice made its Foreign Corrupt Practices Act pilot program permanent. The policy and the government's expectations indicate that the FCPA doesn't always connote mystery and complexity, say attorneys with Lightfoot Franklin & White LLC​​​​​​​.

  • Examining A Post-Wildfire Securities Suit

    Kevin LaCroix

    A securities class action complaint against utility company Edison following the recent massive wildfires in California is the latest example of event-driven securities litigation, a phenomenon that represents a significant problem for directors and officers insurance underwriters, says Kevin LaCroix of RT ProExec.

  • Jurors Should Ask More Questions During Trials

    Matthew Wright

    Permitting jurors to submit written questions, or even to pose questions orally to witnesses on the stand, advances several important goals and promotes both fairness and efficiency, says Matthew Wright of McCarter & English LLP.