• March 21, 2018

    SEC Defends Fraud Suit Against Rio Tinto, Former Execs

    The U.S. Securities and Exchange Commission has asked a Manhattan federal judge to keep its fraud suit against mining giant Rio Tinto and two former executives alive, saying they filed evidence the court can’t consider and invoked “far-fetched” and “absurd” arguments in their effort to have the suit dismissed.

  • March 21, 2018

    Electrical Co. Execs Reach $1.75M Deal To End ERISA Suit

    Participants in an electrical contractor's employee stock ownership plan asked a California federal court Tuesday to grant preliminary approval of a $1.75 million settlement that would end allegations the company's executives manipulated its stock price to the detriment of plan participants, flouting the Employee Retirement Income Security Act.

  • March 21, 2018

    Hubby Says He Spied On Linklaters Over Wife's WFH Weekend

    A Massachusetts Institute of Technology physicist who traded on information he gleaned from his wife, a former Linklaters LLP associate, claims he peeked at merger documents as she worked from home in 2016, according to a memo filed ahead of his sentencing in Manhattan federal court.

  • March 21, 2018

    ExxonMobil Says It Doesn't Belong In Investors' $73M Oil Row

    ExxonMobil Corp. asked a Texas federal judge on Tuesday for help staying out of arbitration proceedings launched by investors who dumped $73.2 million into a Singaporean company's botched oil exploration project in Papua New Guinea, telling the court it passed any liability on to a Canadian affiliate.

  • March 20, 2018

    Facebook Shareholders Sue Over Data Firm Tied To Trump

    Facebook investors hit the social media behemoth with a stock-drop suit in California federal court Tuesday, alleging that it made misleading claims about its use of user data, which blew up this month when its alleged relationship to a Trump-linked data firm was made public.

  • March 20, 2018

    Deutsche Bank, Morgan Stanley Want To Keep RMBS Suit Stay

    Attorneys on both sides of Deutsche Bank National Trust Co.’s suit accusing a Morgan Stanley unit of having put bad loans into a residential mortgage-backed securitization trust urged a New York federal judge on Tuesday to leave the case on pause while trust investors vote on a proposed $37.5 million settlement.

  • March 20, 2018

    Millennium Lab Ch. 11 Cases Closed, But Not Retroactively

    A request by reorganized debtor Millennium Lab Holdings II LLC to close its Chapter 11 cases received court approval Tuesday, but a Delaware bankruptcy judge declined to make the decision retroactive in an effort by the debtor to avoid increased fees.

  • March 20, 2018

    Feds Push Back On Exec's Search Bids In $30M Stock Case

    Minnesota federal prosecutors on Monday opposed an energy company co-founder’s pretrial requests for evidence in litigation over an alleged $30 million stock scheme, saying the underlying indictment is detailed and that they didn’t need to produce documents from the U.S. Securities and Exchange Commission.

  • March 20, 2018

    Justices Cut Through 'Gibberish' To Uphold Shareholder Suits

    The U.S. Supreme Court on Tuesday showed it could cut a direct path through difficult statutory language when it ruled that investors could keep bringing certain securities class actions in state courts — and issued a decision that defense attorneys warned will cause a flood of new shareholder suits before state judges around the country.

  • March 20, 2018

    Oil Co. Founder Must Face Stock Manipulation Fraud Suit

    A New York federal judge on Tuesday refused to dismiss a class action securities fraud suit filed against the founder of a now-bankrupt railroad oil shipper, saying the complaint backed up claims the executive and others participated in a complex scheme to rake in millions by manipulating the company’s stock price.

  • March 20, 2018

    Kodak ICO Seeks To Raise Up To $176.5M

    Wenn Digital Inc., a photo agency partnering with Kodak on a blockchain-based cryptocurrency project, intends to raise up to $176.5 million through a so-called initial coin offering, according to an amended filing submitted Monday to the U.S. Securities and Exchange Commission.

  • March 20, 2018

    CFTC Can Use Class Action Transcripts In Kraft Wheat Suit

    An Illinois federal judge said Tuesday he will allow the Commodity Futures Trading Commission to use transcripts from depositions in a proposed investor class action over Kraft Foods’ alleged manipulation of the wheat market in the trial for the regulator’s suit over the same claims.

  • March 20, 2018

    Ex-US Atty Strikes Deal With SEC To Settle Fraud Claims

    The U.S. Securities and Exchange Commission has reached a deal with former U.S. Attorney Stephen B. Pence that would settle claims that he fraudulently misled a well-respected auditing firm, according to a letter from the SEC made public in New York federal court Tuesday.

  • March 20, 2018

    Wilmington Trust Execs Say Fed Never Flagged Loan Reports

    An attorney for a former top Wilmington Trust Corp. executive noted Tuesday that Federal Reserve examiners never flagged seemingly "significant disparities" in Delaware bank loan reports in early 2009, despite later moves to charge the bank and four top officials for allegedly hiding past-due commercial loans.

  • March 20, 2018

    Ex-Pastor Must Pay $8.6M For Embezzling From Parishioners

    A Florida federal judge has ordered a convicted pastor and another man who duped churchgoers and their associates into investing $2 million in a fake fund to pay more than $8.6 million in restitution and civil penalties, the U.S. Commodity Futures Trading Commission said on Tuesday.

  • March 20, 2018

    Iranian Charged With Sneaking $115M Through US Banks

    A scion of the family behind Iranian conglomerate Stratus Group was arrested by U.S. authorities Monday and charged with evading sanctions, money laundering and bank fraud for funneling $115 million for a Venezuelan housing complex through the American financial system.

  • March 20, 2018

    Firms Clamor To Lead Cancer Drug Stock-Drop Suit In Boston

    Robbins Geller Rudman & Dowd LLP, Pomerantz LLP and several other law firms have jumped at the opportunity to lead a proposed securities class action in Massachusetts federal court against Tesaro Inc. in the wake of a national safety alert issued on its anti-nausea drug for cancer patients.

  • March 20, 2018

    F-Squared Founder Hit With Securities Ban, $12.4M Penalty

    A Massachusetts federal judge on Tuesday ordered the founder of defunct stock-picking company F-Squared Investments Inc. to pay the federal government more than $12.4 million and never again work in the securities industry after a federal jury decided he was liable for misleading investors.

  • March 20, 2018

    Wells Fargo Reaches Confidential Deal Resolving ERISA Suit

    Wells Fargo told a Minnesota federal judge on Tuesday that it’s reached a confidential settlement resolving pension law claims brought by a slew of institutional investors who accused the bank of mismanaging a multibillion-dollar securities lending program they participated in.

  • March 20, 2018

    Stocks Can Be Taxed Like Currency, Gov't Tells High Court

    The U.S. government urged the country’s highest court to affirm a Seventh Circuit ruling in a $13.3 million lawsuit that nonqualified stock options are taxable, saying in a brief Monday that stocks are the “practical equivalent” of currency.

Expert Analysis

  • Choice-Of-Law Takeaways From Dole Insurance Dispute

    Kevin LaCroix

    The insurance coverage litigation arising from the settlement of the shareholder claims filed in connection with Dole Food’s 2013 going-private transaction continues to grind on, and the latest ruling could be helpful for companies seeking to argue that Delaware law should govern the interpretation of their insurance policies, says Kevin LaCroix of RT ProExec.

  • How The Federal Reserve Might Approach Regulatory Reform

    George Madison

    The Federal Reserve’s new leadership has made clear that while it supports certain changes to Dodd-Frank and the related regulations, it broadly supports the post-crisis regulatory framework. With that background, we focus on the Fed’s anticipated views of five areas where reform is possible, say attorneys with Sidley Austin LLP.

  • Lawyering A La Carte: Unbundled Dispute Resolution Services

    David Wallace

    There's no reason for limiting unbundled legal services to family law or even pro se litigants. Wider adoption, especially by litigators, presents an opportunity to correct law's distribution and pricing problem, to make justice practically available to all, and to dethrone litigation as the "sport of kings," says New York-based trial lawyer David Wallace.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 2

    John Reed Stark

    Coordinated federal initiatives scrutinizing cryptocurrency exchanges may be viewed as alarming by entrepreneurs and their advisers. But we believe such concerns are largely misguided, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • You’re Perfect, Now Change: Perfectionism Hurts Lawyers

    Peter Norman

    Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.

  • The Rise Of Cyber-Related Securities Fraud Class Actions

    Cara Peterman

    After a number of prominent cyberattacks on publicly traded companies, the last year saw a corresponding flurry of substantial securities fraud class action filings. Cara Peterman of Alston & Bird LLP has several suggestions for companies to reduce the risk of securities fraud litigation in the wake of a breach.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 1

    John Reed Stark

    Cryptocurrency exchanges must be prepared for a relentless U.S. regulatory onslaught. That seems to be the clear warning embodied in the confluence of three events last week involving three agencies that are no longer content with generating regulatory headwinds, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • Opinion

    Grassley, Feinstein Debate Judicial Vetting, Obstruction

    Sen. Chuck Grassley

    It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.

  • Delaware Court Weighs In On Board Deliberation Disclosures

    Brad Davey

    The Delaware Supreme Court's decision in Appel v. Berkman represents the first time the court has reversed the Court of Chancery's dismissal based on stockholder approval of a transaction pursuant to Corwin v. KKR. This decision raises important questions regarding the required disclosure of board deliberations, say Brad Davey and Matthew Belger of Potter Anderson Corroon LLP.

  • Tax Reform Complicates Middle-Market CLOs

    Jason Schwartz

    The Tax Cuts and Jobs Act is causing concerns for advisers of middle-market collateralized loan obligation issuers as it potentially imposes new requirements. Advisers to MM CLOs must be creative and thoughtful in mitigating the potential adverse effects of Section 1446(f), say attorneys with Cadwalader Wickersham & Taft LLP.