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Securities

  • July 13, 2018

    ESMA Details Plan To Fine-Tune Share Trading For Brexit

    Europe’s top securities regulator on Friday unveiled plans aimed at making sure European Union trading venues are not unfairly disadvantaged by the terms set by their competitors outside the bloc, which will have implications on U.K. trading venues after Brexit.

  • July 12, 2018

    Cybersecurity Firm CEO Says Merger Suit Lacks Facts

    An attorney for the CEO of cybersecurity technology firm Trustwave Holdings Inc. told a Delaware Chancery Court judge Thursday that a minority investor suit over the company’s $810 million merger did not include facts that support their claim that the executive exerted control over the company to push through the deal.

  • July 12, 2018

    Twitter Investors Seek Class Cert. In Stock-Drop Suit

    Twitter shareholders sought class certification Thursday for their claims the company inflated its stock price by lying about key user statistics, telling a California federal judge that according to one of his own past rulings, they could rely on contemporaneous market analyses to calculate damages.

  • July 12, 2018

    Pharmacy Tech Investors Say Board Gave Itself Cheap Stock

    Minority shareholders of pharmacy technology company KloudScript Inc. filed suit in Delaware Chancery Court accusing the company’s directors of secretly issuing themselves deeply discounted shares in the firm to dilute the voting power of other equity holders.

  • July 12, 2018

    Big3 Co-Founder Says Ex-Exec Funded App Through Fraud

    The co-founder of Ice Cube’s three-on-three basketball league has accused its former commissioner of fraud in California state court on Thursday, accusing Roger Mason of "sadistically preying" on his friends and the league’s players to raise $2.4 million for an app that’s in a "death spiral to inevitable financial ruin."

  • July 12, 2018

    SEC's Och-Ziff Bribery Suit Gets Axed As Untimely

    A New York federal judge on Thursday dismissed a U.S. Securities and Exchange Commission suit accusing two former Och-Ziff Capital Management Group LLC executives of bribing African government officials to secure investments, deeming it untimely.

  • July 12, 2018

    PREPA Board Members Resign Over Political Encroachment

    Leadership at Puerto Rico’s electric power company appears to be in turmoil as a majority of its governing board, including the newly named CEO, resigned from their positions Thursday, saying the task of running the utility continues to be complicated by interference from politicians.

  • July 12, 2018

    Ex-NY Pension Fund Official Gets Prison For Broker Bribes

    A former New York pension fund director on Thursday was sentenced to just under two years in prison for steering more than $3 billion in business from the New York State Common Retirement Fund to corrupt brokers in return for gifts that ranged from expensive meals to the services of prostitutes.

  • July 12, 2018

    Woodbridge Ponzi Victims Seek $215M Loan Fund

    Investors in the alleged Woodbridge Ponzi scheme asked the Delaware bankruptcy court Thursday to allow them to set up a $215 million loan facility to keep some of the noteholders afloat until the company’s bankruptcy is resolved.

  • July 12, 2018

    NJ Hedge Fund Owner Gets 6 Years For 'Brazen' $4M Fraud

    A hedge fund owner was slammed with a six-year prison sentence Thursday for duping two investors into giving him roughly $4 million and spending most of it on what prosecutors said was a lavish lifestyle, with a New Jersey federal judge referring to the crimes as “extraordinarily brazen frauds.”

  • July 12, 2018

    Twice-Charged Ex-Broker Gets Sentence He Bargained For

    A Brooklyn federal judge sentenced a former broker who pled guilty to two stock manipulation schemes to a little more than three and a half years in prison on Thursday, rejecting prosecutors' bid to put him away for five years.

  • July 12, 2018

    NY Tax Shelter's Promoter Found Liable For Penalty

    A New York federal court granted the government a partial victory Thursday by finding that a promoter of an illegal tax shelter could be penalized for his company’s actions while ruling that a new trial was needed to determine the penalty amount.

  • July 12, 2018

    Herbert Smith Freehills Nabs Litigation Partner In NY

    Herbert Smith Freehills LLP has added a former Curtis Mallet-Prevost Colt & Mosle LLP partner who brings a wide range of experience handling complex commercial litigation thanks to his work representing clients such as the Lehman Brothers estate.

  • July 12, 2018

    The Biggest Securities Decisions Of 2018: Midyear Report

    The U.S. Supreme Court’s rulings in Lucia and Digital Realty, which found that U.S. Securities and Exchange Commission administrative law judges must be appointed by the president or the head of the agency and narrowed the definition of "whistleblower," were among the most important securities law decisions handed down in the first half of 2018, legal experts said.

  • July 12, 2018

    Kohl's Escapes Investor Class Action Over Accounting Errors

    The Seventh Circuit on Thursday affirmed the dismissal of a proposed class action against Kohl’s Corp. over allegations the department store chain and its top executives defrauded investors ahead of revelations about some major accounting errors, saying the investors hadn’t shown that the company's leadership intended to do wrong.

  • July 12, 2018

    Ruling 'Fatal' For Objection To $2B Forex Deal, Court Told

    A Second Circuit refusal to revive retirement plan participants' claims accusing banks like Credit Suisse and Deutsche Bank of violating the Employee Retirement Income Security Act by rigging foreign exchange benchmarks fatally undermines an objection by those same plan participants to a $2.3 billion settlement with investors, the investors said.

  • July 12, 2018

    Chancery Nixes Most Of Suit Over $600M DAVA-Endo Merger

    The Delaware Chancery Court shut down all but one potential claim late Wednesday in a nearly four-year-old putative class suit over flawed approval warrants and deal disclosures issued in connection with DAVA Pharmaceuticals Inc.’s $600 million merger with Endo Pharmaceuticals Inc.

  • July 12, 2018

    Cemtrex Hit With Shareholder Derivative Suit Over Stock-Drop

    Industrial equipment manufacturer Cemtrex Inc. and its executive officers were hit with a shareholder derivative lawsuit in New York federal court Wednesday, claiming that information made public in a series of online articles caused stock values to plummet.

  • July 12, 2018

    Segal Roitman Can't Get Attys' Fees For Setting Precedent

    A Massachusetts federal judge ruled Thursday that partners at Segal Roitman LLP cannot recover attorneys' fees despite their precedent-setting 2014 U.S. Supreme Court victory that allowed a whistleblower retaliation suit to proceed against Fidelity Investments because the tipster ultimately lost her case.

  • July 12, 2018

    Yahoo Investors Can't Rouse Alibaba Stock Suit In 9th Circ.

    The Ninth Circuit refused Thursday to revive Yahoo Inc. investors' derivative shareholder suit alleging the company violated a deal with the U.S. Securities and Exchange Commission by purchasing stock in retail website Alibaba, saying the claims have no place in federal court.

Expert Analysis

  • New Stats On Millennial Attorney Disciplinary Actions

    Jean Edwards

    In this analysis of disciplinary action trends in the legal industry, Edwards Neils LLC managing member Jean Edwards examines data provided by bar organizations for 17 states and the District of Columbia.

  • Effective Securities Class Action Defense Post-Cyan

    Doug Greene

    Because of the U.S. Supreme Court's decision in Cyan earlier this year, key strategic and economic aspects of securities class action defense will take place in the uncharted territory of state court. And decisions defendants make in the first few days of the litigation will have a significant impact on their options for resolution, say Doug Greene and Jessie Gabriel of BakerHostetler.

  • Limiting Law Firms' Professional Liability Risks: Part 2

    Stuart Pattison

    With law firms increasingly exposed to professional liability risks associated with their corporate client relationships, firms must craft well-structured client engagement letters to help protect against malpractice claims. Two key elements of an engagement letter are how it defines the scope of engagement and how it handles conflicts of interest, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.

  • Series

    From Lawmaker To Lawyer: Prioritizing Is Always Key

    Joe Lieberman

    Today, members of Congress often seem able to blame colleagues of the other party for not getting anything done for their constituents. In law practice, you can’t really blame a bad result for your clients on the lawyers on the other side, says former Sen. Joe Lieberman, D-Conn., of Kasowitz Benson Torres LLP.

  • Opinion

    Long-Term Investors Must Bring Back The Staggered Board

    Neil Whoriskey

    It is time for long-term investors to recognize that aspects of the "good governance" movement have come at significant cost, to be more wary of partnerships with activists, and to actively create the conditions that will allow focus on the long term. The first step should be to bring back staggered boards, says Neil Whoriskey of Cleary Gottlieb Steen & Hamilton LLP.

  • ICOs As Exempt Securities Offerings: An Economic Analysis

    Simona Mola

    Assuming that initial coin offerings are securities offerings, issuers must register them with the U.S. Securities and Exchange Commission unless they rely on an exemption from registration. Among the available exemptions from registration, three look well-suited for ICOs, say members of Bates White LLC and Quinn Emanuel Urquhart & Sullivan LLP.

  • Limiting Law Firms' Professional Liability Risks: Part 1

    Stuart Pattison

    Corporate law departments are increasingly demanding more concessions from outside legal counsel, and presenting engagement letters that open the door to greater professional and cyber liability exposure for law firms — often beyond the scope of their insurance coverage. Firms must add their own language to engagement letters to limit liability, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.

  • SEC Administrative Proceedings After Lucia

    Daniel Walfish

    Because of the U.S. Supreme Court’s decision in Lucia, the U.S. Securities and Exchange Commission will have to redo a series of administrative cases, potentially straining resources and possibly prompting the agency to tap new administrative law judges, says Daniel Walfish of Walfish & Fissell LLP.

  • Series

    From Lawmaker To Lawyer: How Congress Affected My Career

    Yvonne B. Burke

    Being a former member of Congress put me in an advantageous position when I approached law firms in the late '70s, at a time when there were few female lawyers, and even fewer African-American lawyers, in major law firms, says former Rep. Yvonne B. Burke, D-Calif., a director of Amtrak.

  • Martoma — The Latest Critical Insider Trading Decision

    David Miller

    This week, the Second Circuit revisited its August 2017 insider trading decision in U.S. v. Martoma, walking back its personal-benefit definition and rejection of Newman. But this new ruling may achieve the same practical result as the first, say David Miller and Grant MacQueen of Morgan Lewis & Bockius LLP.