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Securities

  • September 19, 2018

    Investors Say Co. Faked HQ, Seek Cert. In Stock-Drop Suit

    Investors who accuse Wins Finance Holdings Inc. of lying its way onto a major stock index have asked a California federal court to certify them as a class, saying the investment firm’s misrepresentations over having a New York headquarters cost them dearly.

  • September 19, 2018

    Solar Merger Suit Can’t Be Put To Bed, Chancery Says

    A Delaware Chancery judge rejected dueling motions for summary judgment in an investor dispute over the merger of solar tech companies Banyan Energy Inc. and QuantPower Inc. on Wednesday, citing unsettled details or absent facts on matters at the heart of the dispute.

  • September 19, 2018

    Some Claims In BP Deepwater Suits Time-Barred, Judge Says

    A Texas federal judge on Tuesday dismissed some claims against BP PLC from more than a dozen of the investor suits in multidistrict litigation related to the 2010 Deepwater Horizon spill, finding that a 2017 U.S. Supreme Court ruling clarified that certain claims based on company statements from before the spill are time-barred.

  • September 19, 2018

    Tilton Asks To Keep Zohar Portfolio Financials Private

    Patriarch Partners LLC founder Lynn Tilton sought a protective order in the Chapter 11 cases of the Zohar Funds in Delaware bankruptcy court Wednesday, asking to keep private the financial information of companies owned by the funds to preserve the value of the portfolio companies in the event of a sale by Zohar.

  • September 19, 2018

    Award Caps Would Weaken Whistleblower Program, SEC Told

    Whistleblowers and their attorneys claim the U.S. Securities and Exchange Commission's proposal to reduce significant awards would give tipsters little reason to put their livelihoods at risk by exposing corporate wrongdoing, according to public comments submitted before a Sept. 18 deadline.

  • September 19, 2018

    SEC Accuses Breast Implant Maker's Ex-CEO Of Stock Fraud

    The U.S. Securities and Exchange Commission on Wednesday hit the founder and former owner of a breast implant manufacturer with a suit alleging he concealed potentially damaging information about the company's devices just days before its $61 million public offering in 2015. 

  • September 19, 2018

    Liquidators Seek Ch. 15 To Track Cayman Firm's Cash

    The liquidators of a bankrupt Cayman Islands-based investment advisory firm Tuesday asked a New York bankruptcy court to begin Chapter 15 proceedings, saying they need to act to find and protect the U.S. assets they believe the firm has.

  • September 19, 2018

    Mortgage Lenders Seek Appeal Over Venue In Lehman Fight

    Dozens of mortgage loan originators targeted by Lehman Brothers for $1.2 billion in settlement indemnification claims stemming from purchases of shoddy loans asked Tuesday for leave to appeal a decision keeping the adversary suits in New York bankruptcy court, arguing the jurisdictional issue “remains unresolved in the Second Circuit.”

  • September 19, 2018

    NJ Trader, Firm To Pay CFTC $2.3M Over Spoofing Claims

    The U.S. Commodity Futures Trading Commission filed two orders Wednesday saying that a New Jersey-based commodities trader and his former firm will pay a combined $2.3 million in civil penalties to settle claims they engaged in a spoofing scheme that affected copper, gold and crude oil futures markets.

  • September 19, 2018

    Feds Say $364M Consumer Debt Scam Duped Attys, Bankers

    Three men have been arrested for allegedly scamming investors including lawyers, bankers, investment advisers and professional athletes in a $364 million scheme offering high returns on consumer debt, federal prosecutors and securities regulators announced in Maryland on Wednesday.

  • September 19, 2018

    3rd Circ. Asked To Weigh In On Nuverra’s Ch. 11 ‘Gifting’

    A Nuverra Environmental Solutions Inc. noteholder who challenged the company’s confirmed Chapter 11 plan last year asked the Third Circuit on Wednesday to weigh in on claims that the plan did not treat unsecured creditors fairly and equitably by permitting “gifting” that led to more recovery for some.

  • September 19, 2018

    Chancery Orders $87.8M Bond Ahead Of Oxbow Sale Appeal

    Billionaire William I. Koch and his flagship company, Oxbow Carbon LLC, must post an $87.8 million bond before appealing a Chancery Court order to sell the company to pay minority unitholders that were denied a right to a buyout in 2016, a vice chancellor ruled early Wednesday.

  • September 19, 2018

    CFTC Fines Bank Of America $30M Over ISDAfix Rigging

    Bank of America NA agreed on Wednesday to pay a $30 million civil penalty to resolve the Commodity Futures Trading Commission's allegations that the bank's traders tried to manipulate the so-called ISDAfix benchmark for interest rate swaps to benefit the position of its derivatives.

  • September 19, 2018

    For-Profit Exchanges Harming Investors: SEC Commissioner

    U.S. Securities and Exchange Commissioner Robert Jackson on Wednesday called for regulators to take off the “kid gloves” and increase oversight of U.S. stock exchanges, arguing that for-profit exchanges are harming investors through practices that undermine fair competition.

  • September 19, 2018

    Under Armour Ducks Investors' Stock Price Manipulation Suit

    A Maryland federal judge on Wednesday dismissed all claims against Under Armour and its underwriters in a consolidated action alleging the sports apparel company deliberately misled investors to inflate its stock price, ruling that a pension fund's claims under the Securities Act were time-barred and that another fund failed to state claims under the Exchange Act.

  • September 19, 2018

    Mizuho Gets Bitcoin Buyer’s Mt. Gox Collapse Suit Tossed

    A Virginia federal judge on Tuesday dismissed a proposed class action against Mizuho Bank Ltd. over the collapse of the Mt. Gox bitcoin exchange, finding that the bitcoin buyer's residency in Virginia was not enough to give the district jurisdiction over the Japanese bank.

  • September 19, 2018

    Ex-Goldman Worker Cops To Insider Trading With NFL Player

    An ex-Goldman Sachs associate pled guilty in Pennsylvania federal court Wednesday to charges that he provided tips about corporate transactions that allowed current Seattle Seahawks linebacker Mychal Kendricks to make stock trades ahead of the deals.

  • September 19, 2018

    Labaton, ERISA Attys Reach Tentative Deal In $75M Fee Fight

    The special master appointed to investigate a $75 million attorneys' fee awarded in a $300 million settlement with State Street Corp. has reached a tentative agreement with the lead class counsel, Labaton Sucharow LLP, and Employee Retirement Income Security Act lawyers involved in the case, according to a filing late Tuesday in Massachusetts federal court.

  • September 18, 2018

    Firms Vie For Lead Counsel Spot In AmTrust Chancery Suits

    Major plaintiffs' firms including Grant & Eisenhofer PA and Kessler Topaz Meltzer & Check LLP sought the lead counsel spot Tuesday in putative class action suits against AmTrust Financial Services Inc. in Delaware Chancery Court over a $2.95 billion take-private proposal brought by the company's controlling shareholders.

  • September 18, 2018

    Looking Back On Lehman’s Decade In Bankruptcy

    Ten years after filing the largest bankruptcy in history, Lehman Brothers is still returning money to creditors as a staff of 80 administers what remains of the investment bank that collapsed with over $600 billion in assets. Here, Law360 recaps Lehman’s stay in bankruptcy and the lessons it taught.

Expert Analysis

  • Examining The Role Of Market Price In Appraisal: Part 2

    Dirk Hackbarth

    In response to the Delaware Chancery Court’s invitation earlier this year seeking expert opinions on market efficiency, we propose several tests to empirically assess the reliability of market price in appraising fair value, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • Time To Prepare For New Municipal Securities Disclosures

    Laura Kurtz

    Starting next year, municipal issuers will need to report the incurrence of certain financial obligations, if material. However, the U.S. Securities and Exchange Commission has offered little guidance on how to make a materiality determination, says Laura Kurtz of Eckert Seamans Cherin & Mellott LLC.

  • Examining The Role Of Market Price In Appraisal: Part 1

    Dirk Hackbarth

    Delaware Vice Chancellor J. Travis Laster recently cautioned that while courts are now giving greater deference to deal prices and market evidence in determining fair value, this approach does not elevate "market value" to the governing standard under the appraisal statute. His caveat begs at least three finance questions, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • The Courts’ Take On Obama-Era Regs: You Are Erased

    Andrew Oringer

    It is at this point axiomatic that the Trump administration is intent on reversing significant portions of the Obama administration's regulatory activity. Interestingly, it seems that courts may pose another major risk to the survival of some Obama-era initiatives, say Andrew Oringer and Samuel Scarritt-Selman of Dechert LLP.

  • There's No Such Thing As A Free Token

    Dan Nathan

    Digital tokens issued in exchange for services rather than money can still constitute a sale of securities, according to recent findings by the U.S. Securities and Exchange Commission in Tomahawk Exploration. The case represents a new application of a principle previously applied in at least three 1999 cases involving "free" securities, say Daniel Nathan and Angelo Aratan of Orrick Herrington & Sutcliffe LLP.

  • SEC Action Brings Lessons For Quantitative Fund Managers

    Brian Daly

    The U.S. Securities and Exchange Commission last week announced settlements with Aegon and several of its affiliates for alleged misconduct involving faulty quantitative investment models. The case illustrates the pitfalls of implementing an ambitious investment program poorly, say Brian Daly and Anna Maleva-Otto of Schulte Roth & Zabel LLP.

  • Good Fortune Shipping And The Withdrawn Altera Opinion

    Patrick Smith

    In the weeks since the Ninth Circuit and D.C. Circuit issued conflicting opinions in challenges to the validity of tax regulations, other developments have undercut the impact of the Ninth Circuit's Altera opinion. Meanwhile, the Good Fortune Shipping opinion's application of the reasoned decision-making standard provides a welcome addition to the body of case law, says Patrick Smith of Ivins Phillips & Barker Chtd.

  • Regulation Best Interest: The SEC Can't Please Everybody

    Mark Jensen

    The U.S. Securities and Exchange Commission has proposed a package of rules, including “Regulation Best Interest,” that is intended to raise the standard of care for investment professionals. Based on a sampling of the multitude of comments to the rule proposal, it is clear that the commission must weigh some bitterly opposed views about major details, say attorneys with Nutter McClennen & Fish LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • How Delaware Courts Are Approaching Appraisal Valuation

    Michael O'Bryan

    The Delaware Supreme Court has eschewed bright-line tests for determining the value of a company in an appraisal. Two recent Delaware Chancery Court decisions illustrate the ways that the courts are determining appraisal valuation in light of this guidance, say Michael O'Bryan and James Beha of Morrison & Foerster LLP.