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Securities

  • September 20, 2018

    HD Supply Must Face Investor Claims Over Stock Drop

    HD Supply Holdings Inc. cannot squash a securities suit accusing the company and executives of lying about inventory setbacks after a Georgia federal judge found that the proposed class presented enough evidence that the alleged lies caused a 20 percent drop in stock price.

  • September 20, 2018

    Rakoff Sanctions Petrobras Deal Atty For 'Kitchen Sink Brief'

    U.S. District Judge Jed S. Rakoff issued an order in New York federal court on Wednesday for a $10,000 sanction to be imposed against the attorney of an objector to the $3 billion Petrobras settlement, saying the attorney intended to “extort a payment” by delaying the settlement.

  • September 20, 2018

    Kokesh Defeats JPMorgan's $286M Coverage Award: NY Court

    A New York appeals court on Thursday reversed an order requiring a group of insurers to pay J.P. Morgan Securities Inc. $286 million for settlement costs that Bear Stearns shelled out in a deal with the U.S. Securities and Exchange Commission, saying coverage is precluded based on the U.S. Supreme Court's 2017 ruling in Kokesh that disgorgement is a penalty.

  • September 20, 2018

    Former SEC, FINRA Official Returns To King & Spalding

    King & Spalding LLP announced this week that a former partner will be returning to its Washington, D.C., office to rejoin the firm’s special matters and government investigations team, pulling from his near-decade of experience at the U.S. Securities and Exchange Commission and recent years with the Financial Industry Regulatory Authority.

  • September 20, 2018

    Labaton Sucharow Adds 'Ultimate SEC Insider'

    Labaton Sucharow LLP announced Tuesday that Richard Levine, longtime associate general counsel for legal policy at the U.S. Securities and Exchange Commission, has joined the firm as a partner in its whistleblower representation practice.

  • September 20, 2018

    IHeartMedia Gets OK To Solicit Creditor Votes On Ch. 11 Plan

    A Texas bankruptcy judge issued an order Thursday approving the disclosures and solicitation materials for iHeartMedia Inc.'s Chapter 11 plan, which is expressly opposed by the broadcast media giant's unsecured creditors and has faced challenges from federal authorities.

  • September 20, 2018

    Court Master, Corporate Atty Picked For New Chancery Seats

    Delaware Gov. John Carney announced his nomination of two candidates for the expanded bench of the Delaware Chancery Court on Thursday, choosing Chancery Master Morgan T. Zurn and Young Conaway Stargatt & Taylor LLP litigator Kathaleen S. McCormick to fill the newly created seats.

  • September 20, 2018

    3rd Circ. Won't Revive Securities Fraud Row Against Hertz

    The Third Circuit on Thursday refused to revive a putative securities class action against Hertz Global Holdings Inc. over allegedly false and misleading statements about its financial condition and internal controls, saying the explanation that former company executives engaged in mismanagement is more plausible than shareholders' claims of a systemic fraud.

  • September 20, 2018

    SEC Seeks $1M Sanctions From Ex-Brokerage Firm Execs

    The U.S. Securities and Exchange Commission has asked a New Jersey federal court to enforce $1 million in sanctions against two brokerage firm executives accused of using manipulative trading to create artificial demand, saying Thursday that they haven’t honored the four-year-old settlement.

  • September 20, 2018

    Alleged Aide In Sham Offerings Barred From Penny Stocks

    A woman whom the U.S. Securities and Exchange Commission accused of assisting in a scheme to create sham public companies has been barred from serving as an officer or director of a public company and trading penny stocks, a Florida federal judge announced Thursday.

  • September 20, 2018

    Dun & Bradstreet Hit With Securities Suit Over $6.9B Merger

    Shareholders of Dun & Bradstreet on Wednesday filed a proposed class action in Delaware federal court alleging that a proxy statement filed by the company's board in September is "materially incomplete," making shareholders unable to properly assess the fairness and financial implications of its potential $6.9 billion merger with a buying group led by CC Capital.

  • September 20, 2018

    Chicago-Based Trading Co. To Pay $1.5M Over 'Spoofing' Claims

    Chicago-based Geneva Trading USA LLC has agreed to shell out $1.5 million to the U.S. Commodity Futures Trading Commission to settle allegations that three of its traders used the disruptive practice of "spoofing" to manipulate the Chicago Mercantile Exchange, according to an order the agency filed Thursday.

  • September 20, 2018

    Del. Justices Uphold Duty Waiver In $43M LLC Sale

    Citing a fatal lack of specifics, Delaware’s Supreme Court declined Thursday to overturn the dismissal of a suit alleging unfair dealing in the $43 million sale of a limited liability company serving disabled children, despite facts “arguably” supporting impropriety claims.

  • September 20, 2018

    Morgan Stanley Says Ex-Brokers Tried To Woo Clients To Stifel

    Morgan Stanley alleged Wednesday in Illinois federal court that six financial advisers who previously managed $660 million for the bank attempted to take confidential information and clients when they left for competitor Stifel Nicolaus & Co.

  • September 20, 2018

    Ice Miller Adds Bankruptcy Pro From Wollmuth Maher

    Ice Miller LLP has brought in bankruptcy specialist John Giampolo to join the firm as a partner in its bankruptcy litigation group out of New York City.

  • September 20, 2018

    BHP Billiton To Pay $50M To End Investors' Dam Breach Suit

    BHP Billiton Ltd. and BHP Billiton PLC have agreed to pay $50 million in cash to end a consolidated investor suit in New York alleging the mining giant lied about lax safety standards at a Brazilian processing facility before a massive dam breach, according to documents filed Wednesday.

  • September 19, 2018

    Pension Fund Fights Ocwen Bid To Tank ERISA Mortgage Row

    A company accused of profiting by pushing homeowners into foreclosure after the housing bubble burst should have to face claims that its alleged actions violated the Employee Retirement Income Security Act, and companies that helped or watched should too, a pension fund told a New York federal judge Wednesday.

  • September 19, 2018

    DC Circ. Orders Redo For 'Big Short' Adviser’s SEC Hearing

    The D.C. Circuit on Wednesday remanded the U.S. Securities and Exchange Commission’s case against an investment adviser featured in the book "The Big Short” for a new hearing before a different administrative law judge or the commission, in accordance with the U.S. Supreme Court’s recent Lucia ruling.

  • September 19, 2018

    Inovalon Investor Class Certified In Suit Over IPO

    A New York federal court on Tuesday granted certification to a class of Inovalon Holdings Inc. investors that allege the technology company filed a prospectus ahead of its initial public offering that misled investors regarding the company's revenue stream, while also dismissing some claims on the grounds that the shares were not purchased during the offering.

  • September 19, 2018

    Newegg Wants Out Of Korean Bank Fraud Case

    Online computer retailer Newegg Inc. sought release from a fraud suit alleging the company helped procure $3 billion in loans from four South Korean banks, arguing in California federal court Wednesday that it is not directly liable for any alleged fraudulent activity.

Expert Analysis

  • Calif.'s New Rules For Lawyers Move Closer To ABA Model

    Mark Loeterman

    The first comprehensive overhaul of California's Rules of Professional Conduct in nearly 30 years becomes operational on Nov. 1. Some of the new rules mirror the model language used by the American Bar Association, but many continue to reflect California’s unique approach to certain ethical questions, says Mark Loeterman of Signature Resolution LLC.

  • Analyzing Chancery Decisions On Long-Term Growth Rates

    Toby Reiff

    The selection of a long-term growth rate is one of the key assumptions made when performing a discounted cash flow analysis in business valuation cases. Decisions from recent years illustrate a consistent pattern in the Delaware Chancery Court's growth rate determinations, say Toby Reiff and Josh Reder of Stout Risius Ross LLC.

  • Stock Compensation Can Add Zing To Your Benefits Package

    Amy Bowler

    To attract talent in a competitive market, some employers may add creative stock and bonus compensation programs to thier benefits packages. They should keep in mind that adding stock options can trigger a multitude of legal rules and restrictions, say Amy Bowler and Beth Nedrow of Holland & Hart LLP.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • IRS Ruling On MBS Restructuring Should Encourage Investors

    Mark Leeds

    In June 2019, the Federal Housing Finance Agency will require Freddie Mac and Fannie Mae to begin issuing standardized mortgage-backed securities. Accordingly, the IRS last month encouraged Freddie Mac investors to convert their existing securities by stating that conversions won't trigger taxable gains or losses, say Mark Leeds and Steven Garden of Mayer Brown LLP.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Cayman Derivative Cases Brought Overseas Still Face Hurdles

    Peter McMaster

    Two court decisions within the past year have simplified the process for bringing derivative claims outside the Cayman Islands on behalf of Cayman companies, as shareholders no longer need permission from a Cayman court. However, such claims still face two difficulties, say Peter McMaster and Anna Snead of Appleby.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Opinion

    A Decade After Financial Crisis, Misconceptions Remain

    Edward Stringham

    Following the 2008 economic downturn, many observers blasted mortgage-backed securities and collateralized debt obligations. Today, we're hobbled with numerous regulations that stem from a fundamental misunderstanding of what these instruments were designed to do, says Edward Stringham of the American Institute for Economic Research.

  • Considerations For The 2019 Proxy Season

    Steve Quinlivan

    Given a number of changes to the regulatory landscape in recent months, public companies should consider planning for the upcoming proxy season early. The U.S. Securities and Exchange Commission has been particularly active adopting rules and regulations in areas that substantially impact annual reporting, say attorneys with Stinson Leonard Street LLP.