• March 20, 2018

    Investors Say Banks Seek To Limit Stakes Shortly Before Trial

    Bondholders in a bankrupt hospital who sued the Bank of New York Mellon Corp. and JPMorgan Chase & Co. for allegedly mishandling $36 million in debt asked a Pennsylvania federal judge on Monday to reject the banks’ effort to narrow the scope of the case less than a month before it goes to trial.

  • March 20, 2018

    FXCM Execs Hit With Another Shareholder Derivative Suit

    Foreign exchange brokerage FXCM’s top brass were slapped with a shareholder derivative suit Monday in New York federal court, where less than a month ago the same court threw out a proposed class action alleging investors were misled about FXCM’s purportedly conflict-free business model.

  • March 20, 2018

    House Moves To Trim Stress Tests For Nonbanks

    The U.S. House of Representatives passed a measure Tuesday that would restrict some of the stress tests placed on financial institutions, with the stated aim of limiting the tests to banks with more than $10 billion in assets.

  • March 20, 2018

    Feds Say Alleged Fraudster's Cryptocurrencies Are Securities

    Brooklyn federal prosecutors and the U.S. Securities and Exchange Commission on Monday pushed back against an alleged fraudster’s claim that his cryptocurrencies aren’t securities subject to federal laws, saying his purported initial coin offerings were clearly investment contracts governed by applicable securities statutes.

  • March 20, 2018

    Feds Defend Presentence Report In Ex-HSBC Exec Forex Case

    Federal prosecutors on Monday defended a presentence investigation report following the conviction of a former HSBC executive for defrauding client Cairn Energy PLC, disputing Mark Johnson’s objections and definitively saying Cairn suffered a loss after a billion-dollar currency exchange.

  • March 20, 2018

    McAfee's Tech Investment Biz Sees $47M Suit Trimmed

    A New York federal judge on Monday gutted a $47 million suit accusing a cybersecurity investment firm led by John McAfee of cheating investors out of shares, ruling that the only disputed claim still in contention is whether the firm failed to compensate its early backers.

  • March 20, 2018

    EXCLUSIVE: Behind The Downfall Of Latham's Chairman

    Before his sudden departure Tuesday, Latham & Watkins LLP Chair Bill Voge engaged in a pattern of reckless behavior starting with sexually explicit messages sent to a woman he approached on behalf of a Christian men’s group and culminating in threats to her husband to have her thrown in jail. This story has been updated to include more details.

  • March 20, 2018

    Justices Keep Securities Class Actions Alive In State Courts

    The U.S. Supreme Court on Tuesday ruled that state courts can continue to hear certain securities class actions brought under federal law, delivering a blow to underwriters and newly public companies that argued such claims belong only before federal judges.

  • March 19, 2018

    Valeant, Pershing Get Initial OK On $290M Investor Deals

    A California federal judge granted preliminary approval Monday to two settlements totaling $290 million from Pershing Square Capital Management LP and Valeant Pharmaceuticals International Inc. to resolve investor claims of an insider-trading scheme ahead of their failed takeover bid for Allergan Inc.

  • March 19, 2018

    Investor Claims Over Tanking Blackberry Z10 Sales Revived

    Three years after their initial claims were tossed, a putative class of investors accusing BlackBerry Ltd. of inflating the value of its stock by hiding poor performance of its Z10 smartphone saw their suit revived after a New York federal judge halted a dismissal attempt of their newly amended complaint, finding Monday that important information had emerged.

  • March 19, 2018

    Former NJ US Atty Joins Arnold & Porter

    New Jersey’s longest-serving U.S. Attorney in five decades, Paul J. Fishman, is taking his 35 years of experience on both sides of the private-public fence to Arnold & Porter’s crisis management and strategic response team, the firm announced Monday.

  • March 19, 2018

    SEC Chair Outlines Fiduciary Duty Proposal Goals

    The head of the U.S. Securities and Exchange Commission on Monday offered new snippets of what to expect from the agency's long-awaited plans to revise the fiduciary duty standard while also expressing exasperation with the slow rollout of the consolidated audit trail.

  • March 19, 2018

    Aon Hewitt Sheds Caterpillar Plan ERISA Suit

    Caterpillar Inc. retirement plan participants suing Aon Hewitt for allegedly violating the Employee Retirement Income Security Act through an advisory fees kickback scheme saw their proposed class action thrown out Monday, when an Illinois federal magistrate judge found the suit lacked evidence to support its claims.

  • March 19, 2018

    Investor Suit Against Target Won't Be Revived, Judge Says

    A Minnesota federal judge on Monday said she would not reconsider the dismissal of a proposed securities class action accusing Target of misleading investors amid its tumultuous expansion into Canada, saying public statements company executives had made during the expansion don't meet the standard for securities fraud.

  • March 19, 2018

    Ex-Autonomy Exec Who Took Plea Testifies Against Ex-Boss

    An ex-Autonomy Corp. executive who cut a deal with the government to testify against his former boss told a California federal jury Monday that the British company’s ex-chief financial officer approved sales tactics that misled investors about Autonomy’s worth ahead of its $11 billion acquisition by Hewlett-Packard Co.

  • March 19, 2018

    ETE Cites Williams' 'Trash Talk' In $1.5B Fee Reargument Bid

    Pipeline giant Energy Transfer Equity urged Delaware Chancery Court on Monday to allow reargument on dismissed counterclaims that the company deserves a $1.48 billion termination fee for The Williams Companies' alleged breaches of a $38 billion merger agreement that ETE itself abandoned in 2016.

  • March 19, 2018

    Former Georgeson Advisers Get Mistrial After Juror’s Exit

    A Boston juror’s family emergency led to a mistrial Monday in a bribery case against four former corporate advisers at Georgeson LLC, despite calls from both sides to move forward with a smaller panel.

  • March 19, 2018

    $9.3B Oracle-NetSuite Merger Row Survives Dismissal Bid

    A Delaware Chancery judge refused on Monday to toss stockholders' challenge to Oracle Corp.'s $9.3 billion acquisition of NetSuite Inc., finding there are enough potential conflicts between Oracle's directors and its founder Larry Ellison, who also controls NetSuite, that the investors didn’t have to take their legal challenge to the board before suing.

  • March 19, 2018

    Reinsurance Firm's Restructuring Implementation Deal OK'd

    A restructuring implementation agreement needed to integrate insolvency proceedings in multiple jurisdictions for bankrupt reinsurance firm Scottish Holdings Inc. received approval Monday in Delaware after the objections of creditors and the U.S. trustee were resolved.

  • March 19, 2018

    Akin Gump Reps Tippee Pro Bono In Insider Trading Case

    Akin Gump Strauss Hauer & Feld LLP has agreed to take up the defense of a computer analyst charged with trading on confidential merger information gleaned from a former Bank of America executive pro bono, according to notices filed Friday in New York federal court.

Expert Analysis

  • How Settling With The Gov't Is Costlier Under New Tax Law

    Marvin Kirsner

    A provision in the Tax Cuts and Jobs Act greatly expands the scope of the disallowance of deductions for fines and penalties paid to government agencies. This will make it costlier for a company to settle claims of violation of laws and regulations brought by federal, state or local agencies, or even foreign governments, says Marvin Kirsner of Greenberg Traurig LLP.

  • Securitized Student Loans: The Next Crisis?

    Kevin O’Brien

    In light of the stress on the student loan market and the amount of money invested in securities backed by student loans, the likelihood of litigation regarding the marketing and securitizing of these assets is substantial. In addition, billions in defaulted student loans may be uncollectible, adding a further level of peril for investors, says Kevin O’Brien of Butler Rubin Saltarelli & Boyd LLP.

  • Appraisal Takeaways From AOL

    Scott Barshay

    One lesson from the Delaware Chancery Court’s recent decision in the AOL appraisal case is that if the deal process, deal protections and informational disparities among potential purchasers sufficiently preclude the emergence of other bidders, deal price will not warrant deference in the court’s determination of fair value, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • And The Award Goes To ... FINRA’s 2017 Restitution Program

    Brian Rubin

    We dissected the Financial Industry Regulatory Authority's 2017 disciplinary actions to see how it performed in different categories and found that rather than going for box-office gold, FINRA focused on a variety of “nuts and bolts” issues. However, FINRA did return a substantial amount of money to investors, say Brian Rubin and Adam Pollet of Eversheds Sutherland.

  • 'IP Come Home!' How TCJA Incentivizes Asset Repatriation

    Robert Kiggins

    Two provisions of the Tax Cuts and Jobs Act aim to keep U.S. companies’ intangible assets from wandering the globe in search of shelter offshore. For affected taxpayers, one generally brings good news and the other brings bad, says Robert Kiggins of Culhane Meadows PLLC.

  • Where White Collar Enforcement Is Heading

    Gregory Morvillo

    Expect regulators and prosecutors to make cases in industries that are beginning to generate enormous amounts of new revenue, while using the same investigative tools they’ve used for decades, say Gregory Morvillo and Amy Walsh of Orrick Herrington & Sutcliffe LLP.

  • Digital Realty’s Victory Is A Loss For Corporate Compliance

    Stephen Kohn

    In Digital Realty Trust v. Somers, the U.S. Supreme Court undermined Wall Street’s advocacy of internal corporate compliance programs as an alternative to whistleblower reward laws. But the adverse impact of Digital’s Supreme Court victory can and should be mitigated, says Stephen Kohn of Kohn Kohn & Colapinto LLP.

  • A Broad Regulatory Push To Rein In Burgeoning ICO Market

    Christopher Conniff’s disclosure last week that its ongoing $250 million initial coin offering has been under investigation by the U.S. Securities and Exchange Commission appears to be part of a widespread probe pursuant to which “scores” of companies and advisers have reportedly received subpoenas. This underscores the SEC’s continued commitment to vigorous oversight in the virtual currency space, say attorneys with Ropes & Gray LLP.

  • Investing In Ground-Leased Or Net-Leased Real Estate

    Tzvi Rokeach

    When crafting a ground lease or any other form of triple net lease, special attention should be paid to the tensions that arise as a result of both tenant and landlord seeking to finance their respective positions, says Tzvi Rokeach of Kramer Levin Naftalis & Frankel LLP.

  • 10 Tips For Working With IT To Preserve Data

    John Tredennick

    Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.