Securities

  • April 18, 2018

    GE Board Accused Of Misstating Insurance, Power Financials

    General Electric Co. officers and directors falsely stated the finances of the company's power and insurance segments, ultimately causing share prices to drop as it halved annual dividend payments and lowered its financial forecasts, a shareholder claimed in a derivative suit filed Tuesday in New York federal court.

  • April 18, 2018

    Miami Auditor's Battle With City Not Over Even After Verdict

    Despite winning a nearly $1 million jury award earlier this week, a former city of Miami independent auditor who says he was fired for reporting securities violations will still have to battle the city on whether he should have gone to Miami’s Civil Service Board with his retaliation claim before filing suit.

  • April 18, 2018

    Broker Stole $5.7M From Pension Fund, Say Prosecutors, SEC

    A securities broker was hit with a U.S. Securities and Exchange Commission suit in Tennessee federal court Tuesday on top of criminal fraud charges over an alleged scheme to steal $5.7 million from the pension plan of an acquaintance’s company and transfer it to an investment group he benefited from and companies he controlled.

  • April 18, 2018

    SFO Plans Changes To Witness Preparation After Libor Case

    Britain’s Serious Fraud Office said Wednesday it will change the way it instructs expert witnesses after a panel of U.K. Court of Appeal judges said mistakes made by a banking expert who testified in the SFO’s Libor-rigging prosecutions caused an embarrassing debacle for the crime agency.

  • April 17, 2018

    Equipment Co.'s Stocks Didn't Lose Value In Sale, Judge Says

    A Virginia federal judge quashed Labor Secretary Alex Acosta’s claim that a manufacturing equipment provider illegally allowed its shares to lose value by selling stocks to a pension plan for twice their worth, saying Tuesday there wasn’t enough proof to say the shares actually did lose value.

  • April 17, 2018

    2nd Circ. Cool On Saving Funds’ Suit Against DLA Piper

    A panel of three judges considering a request by two Cayman investment funds to revive their dismissed suit against DLA Piper over its alleged role in helping a fund director misappropriate $36 million put tough questions to the funds on Tuesday about what, exactly, the lower courts did wrong.

  • April 17, 2018

    Investment Funds Hit Ocwen With Stock-Drop Suit

    A group of investment funds sued Ocwen Financial Corp. on Tuesday in Florida federal court seeking to recover investment losses they say they suffered after being induced to buy company stock through false and misleading statements from its top executives.

  • April 17, 2018

    Defense Wraps Wilmington Trust Exec Fraud Case In A Day

    A “massively complex” federal trial of four Wilmington Trust executives on fraud and conspiracy charges raced into the home stretch Tuesday, after defense attorneys opened and closed their side of the Delaware case in a matter of hours.

  • April 17, 2018

    Gannett Looks To Spike ERISA Suit Over 401(k)’s Tegna Stock

    Gannett Co. Inc. on Monday urged a Virginia federal judge to toss a proposed Employee Retirement Income Security Act class action accusing it of causing about $135 million in losses for its 401(k) plan and the plan’s participants by concentrating investments in its ex-parent company’s common stock.

  • April 17, 2018

    Koch Calls For Oxbow Carbon Valuation, No Price Guarantees

    A newly unsealed brief on terms for a potential Delaware Chancery Court-ordered sale of William I. Koch’s Oxbow Carbon LLC, filed by Koch and his allies, called Monday for a new company valuation and no price guarantees for investors whose cash-out demands led to the exercise.

  • April 17, 2018

    Twitter Fights Investors' Class Cert. In User Metrics Suit

    Twitter Inc. urged a California federal judge Monday to deny class certification for investors who are suing the company for allegedly inflating its stock price by lying about key user statistics, saying the investors have yet to show how they would calculate damages for the entire proposed class.

  • April 17, 2018

    Atty's Ex-Buddy Who Decoded Insider-Trade Texts Ducks Jail

    Andrew M. Berke, a wealthy former friend of ex-Foley & Lardner LLP partner Walter “Chet” Little who traded on Little's illicit stock tips, avoided prison Tuesday after a prosecutor cited Berke's work to recover damning text messages and help the government decipher them.

  • April 17, 2018

    Google Investors Can't Revive Suit Over Anti-Poaching Deals

    A California appeals court on Monday upheld a lower court’s decision to dismiss a shareholder derivative suit accusing Google Inc. executives of entering into illegal “gentleman’s agreements” pledging not to poach other Silicon Valley companies’ engineers, saying the statute of limitations had run out.

  • April 17, 2018

    Bitcoin 'Founder' Slams $10.2B Suit As A 'Shakedown'

    The Australian computer scientist who once claimed to be Satoshi Nakamoto, the pseudonymous inventor of bitcoin, urged a Florida federal court on Monday to throw out a $10.2 billion lawsuit accusing him of stealing hundreds of thousands of bitcoins and related intellectual property from his now-deceased business partner, calling the suit a "shakedown."

  • April 17, 2018

    CSX Board Misled Investors On CEO Hire, Suit Claims

    CSX’s board of directors duped shareholders into hiring former CEO E. Hunter Harrison to turn around the railroad with an “outrageous,” $300 million compensation package, a reckless move that backfired when Harrison died nine months after taking the helm, according to a suit made public Tuesday.

  • April 17, 2018

    NY AG Wants Info From Crypto-Exchanges In Industry Inquiry

    New York Attorney General Eric T. Schneiderman asked 13 virtual currency trading platforms on Tuesday to disclose information on their operations, policies and internal controls as part of a “fact-based inquiry” that he touted as an effort to increase transparency and accountability in the cryptocurrency industry.

  • April 17, 2018

    Wells Fargo Defeats Class Cert. Bid In Royal Park RMBS Suit

    A New York federal judge rejected Royal Park Investments' bid for class certification on Tuesday in its suit accusing Wells Fargo Bank of mismanaging two residential mortgage-backed securitization trusts, taking up a magistrate judge's recommendation that found there were too many differences in the proposed group of investors to warrant a class approach.

  • April 17, 2018

    Wells Fargo Fights Inside Trading Row Over Account Scandal

    Wells Fargo urged a California judge to toss class allegations that its top brass traded on insider information about the bank's yearslong illegal creation of customer accounts, arguing Tuesday that the investors waited too long to sue and have not alleged the accounts scandal drove the trades.

  • April 17, 2018

    Barclays To Pay $29M To Settle Electric Rate Manipulation Suit

    A California irrigation district has settled its putative antitrust class action against Barclays Bank PLC over alleged manipulation of western U.S. electricity prices for $29 million and asked a New York federal court to approve the mediation-facilitated deal.

  • April 17, 2018

    Ill. Adviser Gets 12.5 Years For $5M Investment Scheme

    A Chicago investment adviser who pled guilty in January to stealing about $5.2 million of his clients’ and in-laws’ money while lying about their investments was sentenced Tuesday to 12.5 years in prison and ordered to pay the same amount in restitution for the crime.

Expert Analysis

  • Senate Regulatory Relief Bill Would Benefit Community Banks

    Joan Guilfoyle

    The Dodd-Frank rollback bill recently passed by the Senate is not as sweeping as the House’s Financial Choice Act, but for community bankers, there are a number of provisions to like, says Joan Guilfoyle of Jones Walker LLP.

  • Should We Trust The Fiduciary Rule Is Gone?

    Robert Stone

    The U.S. Department of Labor's fiduciary rule has been challenged in court by various organizations on grounds that the agency exceeded its authority in promulgating it. Those challenges culminated in a recent decision by the Fifth Circuit to vacate the rule in U.S. Chamber of Commerce v. DOL, say Robert Stone and Shannon Smith of Katten Muchin Rosenman LLP.

  • Antiquated FINRA Rules Stifle Small Co. Capital Formation

    Laura Anthony

    If OTC Markets' recently suggested changes to two Financial Industry Regulatory Authority over-the-counter rules are implemented, more small companies would access the public markets, better information would be made available to investors and the marketplace, and secondary market liquidity would improve, says Laura Anthony of Legal & Compliance LLC.

  • Applying The Business Judgment Rule To Director Pay Claims

    Robert Quirk

    When assessing a corporate board’s response to a shareholder’s “demand” to take “all necessary actions” to correct alleged compensation-related misconduct by its directors, what legal standard applies? A New York state judge's recent decision in Solak v. Fundaro helps to answer this question, say Robert Quirk and Muhammad Faridi of Patterson Belknap Webb & Tyler LLP.

  • Board Oversight Of Cybersecurity: 8 Considerations

    Jamie Gorelick

    With recent guidance from the U.S. Securities and Exchange Commission, we are at an inflection point for boards of directors in assessing how they oversee cybersecurity risks, say attorneys with WilmerHale.

  • New SEC Case Bucks The Valuation Trend

    Jesse Morton

    The U.S. Securities and Exchange Commission investigation into Deer Park Road Management’s alleged practice of undervaluing assets has many wondering why the investment manager would want to undervalue its assets. In fact, there are several incentives for a fund manager to do so, say Jesse Morton and Matt Rogers of Stout Risius Ross LLC.

  • Tax Reform’s Impact On Private Equity

    Sean Clancy

    The Tax Cuts and Jobs Act significantly changed income tax laws for individuals and business entities. Attorneys at Nixon Peabody LLP map out the provisions that will impact the private equity industry, including managers, investors and portfolio companies.

  • Rebuttal

    Crypto Developments Are Indeed Alarming

    John Reed Stark

    A recent rebuttal to our earlier Law360 guest columns asserts that cryptocurrency financiers are at no greater risk today than they have been over the last few years. But rarely in its 84-year history has the U.S. Securities and Exchange Commission been so explicit and so recurring in the public expression of its warnings and rebukes, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • PCAOB Case Expands Legal Exposure For Audit Failures

    Robert Cox

    The defense that an audit engagement partner cannot be liable for deficient work the partner did not personally perform is no longer viable after a recent decision by the Public Company Accounting Oversight Board in Koeppel. An engagement partner therefore can no longer insulate herself by delegating audit work to subordinates, says Robert Cox of Briglia Hundley PC.

  • How Senate Bill Would Change Compliance For Midsize Banks

    Christopher Allen

    The U.S. Senate last month passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, which makes modest reforms to the Dodd-Frank Act. Here, attorneys with Arnold & Porter look at the bill's notable provisions for community and midsized banks and the prospects for enactment.