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Securities

  • October 16, 2018

    Paul Hastings A 3rd Party To Fraud, Cancer Center Exec Says

    The founder of a now-bankrupt cancer treatment center accused of making false statements to entice billionaire energy tycoon Kelcy Warren to invest urged a Texas judge Monday to block Paul Hastings LLP from being removed as a third party in the case, saying there's enough evidence to raise questions on the firm's involvement.

  • October 16, 2018

    Ex-Equifax Engineer Gets House Arrest For Insider Trading

    A former Equifax Inc. software development manager who pled guilty over the summer to making a nearly $76,000 profit on inside knowledge of the credit reporting giant's headline-grabbing data breach was sentenced in Georgia federal court on Tuesday to eight months of home confinement.

  • October 16, 2018

    K&L Gates Repped Both Tech Co. And Its Lenders, Suit Says

    K&L Gates LLP was hit with a lawsuit Tuesday in Texas state court by former client Quantum Materials Corp., which alleges the firm committed malpractice through its simultaneous representation of it and its lenders in a payment dispute.

  • October 16, 2018

    Royal Park Pushes For Sampling In Deutsche Bank RMBS Suit

    Royal Park Investments SA/NV has taken aim at a New York federal magistrate judge’s recent decision denying its request to allow loan sampling-related discovery in its suit over Deutsche Bank National Trust Co.’s alleged blunders as trustee for 10 residential mortgage-backed securities trusts, arguing that this rejection should itself be rejected.

  • October 16, 2018

    NY High Court Says Deutsche RMBS Claims Still Untimely

    New York state’s highest court on Tuesday upheld a trial judge’s dismissal of a Deutsche Bank trustee’s suit against Quicken Loans Inc. over the credit quality of securitized residential mortgage loans that held an initial balance of $33 million, agreeing with a lower appellate court that the breach of contract action was untimely.

  • October 16, 2018

    No Proof Potomac Hurt Investors In PLX Deal, Chancery Says

    Shareholders of semiconductor firm PLX Technology Inc. failed to prove that breaches of fiduciary duty by its directors caused them any financial harm, a Delaware Chancery Court judge ruled Tuesday, saying that activist investor Potomac Capital Partners LP was off the hook for claims of impropriety over its role in the acquisition of PLX.

  • October 16, 2018

    NYSE, Nasdaq Didn’t Justify Market Data Fees, SEC Says

    The U.S. Securities and Exchange Commission said Tuesday that NYSE Arca Inc. and Nasdaq Stock Market LLC have failed to justify the fees for their proprietary data products, but the securities regulator didn't rule that the prices were necessarily unreasonable.

  • October 16, 2018

    Hedge Fund Co-Founder Charged In $19M Ponzi Scheme

    Federal authorities arrested a Connecticut man Tuesday on charges that he ran a $19 million Ponzi scheme that defrauded investors who put their money into his hedge fund.

  • October 16, 2018

    CVR Takes Another Swing At Wachtell In Icahn Takeover Case

    Following the recent dismissal of a drawn-out malpractice suit against Wachtell Lipton Rosen & Katz, CVR Energy Inc. on Monday filed a modified complaint focused on allegedly faulty U.S. Securities and Exchange Commission disclosures prepared by the firm more than six years ago.

  • October 16, 2018

    Mayer Brown Adds NY Tax Partner For Fund Practice

    Mayer Brown LLP announced Monday that a tax attorney experienced in fund formation was joining the firm as a partner in its New York City office.

  • October 16, 2018

    Ex-Foley & Lardner Atty Suspended 2 Years For Faked Docs

    The Wisconsin Supreme Court on Tuesday suspended for two years a former partner at Foley & Lardner who admitted to falsifying backdated documents during an Internal Revenue Service audit of a client's trust.

  • October 16, 2018

    Fairfax Scores $11M In Jury Verdicts In NJ Stock Scheme Row

    Fairfax Financial Holdings Ltd. and its New Jersey subsidiary, Crum & Forster Holdings Corp., have scored state trial victories totaling nearly $11 million in damages against a defunct hedge fund and related parties over claims they took part in a scheme to lower the Canadian insurance company’s share price, the business announced Tuesday.

  • October 16, 2018

    Law Firm Barred From Contacting Madoff Clients About Suit

    A New York magistrate judge has ordered Chaitman LLP not to contact its clients who were victims of Bernie Madoff regarding a suit alleging Helen Chaitman had a conflict of interest in representing them, ruling it was inappropriate for her to urge those clients to decide whether to opt out of the proposed class this early in the process.

  • October 16, 2018

    Ex-Foley Partner Disbarred In Fla. For Insider Trading

    The Florida Supreme Court has disbarred Tampa attorney Walter “Chet” Little, who was sentenced to two years in prison earlier this year for insider trading after admitting he took advantage of confidential client information while serving as a partner at Foley & Lardner LLP.

  • October 16, 2018

    NY Appeals Court Ends Failed Xerox-Fuji Deal Litigation

    A New York state appeals court on Tuesday dissolved injunctions barring Fuji from pursuing its since-terminated $6.1 billion combination with Xerox and nixed litigation surrounding the failed deal, finding the business judgment rule applies and negates potential conflicts among the companies’ top brass.

  • October 16, 2018

    Monex Slams CFTC’s 'Jurisdictional Overreach' In 9th Circ.

    Metals brokerage Monex Credit Co. criticized the Commodity Futures Trading Commission on Monday for what it called “blatant and limitless” jurisdictional overreach in the agency’s attempt to have the Ninth Circuit reverse the dismissal of its $290 million fraud case against Monex based on arguments that Congress has expressly rejected.

  • October 16, 2018

    Trump's Rulemaking Agenda Aims To Cut $18B In Costs

    President Donald Trump's administration is set to launch another round of regulatory actions aimed at what it claims will cut costs for private industry across the country, previewing the fall unified agenda meant to cut an estimated $18 billion in costs from the marketplace that is set to be released Wednesday.

  • October 16, 2018

    Ex-KPMG Exec Admits Swiping Watchdog's Inspection Plans

    A public accountant admitted in New York federal court on Tuesday that she used her role at the nation's independent audit watchdog to tip KPMG LLP about plans to double-check its work, then continued to solicit inspection plans after taking an executive position at the Big Four audit firm.

  • October 16, 2018

    Investors Sue Keryx Over $1.3B Merger With Akebia

    Keryx Biopharmaceuticals Inc. misled investors about the company's financial future in documents related to its $1.3 billion acquisition by Akebia Therapeutics Inc., shareholders alleged in a proposed securities class action filed in Delaware federal court on Tuesday.

  • October 16, 2018

    Trevena Investors Sue Over Stock Drop Tied To Drug Trials

    Shareholders filed a proposed class action lawsuit against Trevena Inc. in Pennsylvania federal court Monday, alleging that the company and its officers misled investors about the U.S. Food and Drug Administration’s prospects for approving the company’s morphine alternative.

Expert Analysis

  • Why Law Firms Should Monitor The Dark Web

    Anju Chopra

    Dark web monitoring allows law firms to see what sensitive information may have made its way onto the thriving global underground marketplace where cybercriminals buy and sell exposed data. It can also help lawyers advise clients on a wide range of legal and business matters, say Anju Chopra and Brian Lapidus of Kroll.

  • Does Rule 45 Protect Nonparties From Undue Burden?

    Matthew Hamilton

    Interpretations of Rule 45 protections vary but what's clear is that "undue burden" does not mean no burden at all. To avoid the costs of compliance with a subpoena, a nonparty should be ready to demonstrate its disinterest in the litigation and the anticipated cost and burden of compliance, say attorneys at Pepper Hamilton LLP.

  • Crypto Exchanges Could Be Next Regulatory Target

    Sarah Auchterlonie

    A recent report from the New York state attorney general's office indicates that regulators have expanded their focus beyond initial coin offering fraud and violations to the businesses behind post-ICO trading. Attorneys with Brownstein Hyatt Farber Schreck LLP offer six recommendations to virtual currency exchanges based on the report.

  • Trends In FINRA's 2018 Disciplinary Actions

    Brian Rubin

    According to recent Financial Industry Regulatory Authority reports, there was an increase in fines and a decrease in the number of disciplinary actions during the first half of 2018 compared to the same period in 2017. Regardless of how 2018 finishes, however, FINRA’s actions show that firms should consider concentrating on issues as classic as apple pie, say Brian Rubin and Adam Pollet of Eversheds Sutherland.

  • How US And EU Sanctions Clash With Russian Antitrust Laws

    Stefan Weber

    U.S. and EU sanctions on Russia are forcing many international companies to carefully evaluate and restructure their contractual relationships with Russian counterparties. In this process, Russian antitrust law provides obstacles that may be difficult to overcome in some situations, say attorneys with Noerr Consulting AG.

  • Musk Case Signals New Era Of SEC Internet Enforcement

    John Reed Stark

    The U.S. Securities and Exchange Commission's complaint last week against Elon Musk and the settlement that followed seems like an obvious, routine and easy win for the government. But there is a lot more to the Tesla tweet debacle than meets the eye, says John Reed Stark of John Reed Stark Consulting LLC.

  • F-Squared And The Lingering Impact Of Kokesh

    Benjamin Mundel

    After the U.S. Supreme Court's ruling last year in Kokesh, a number of companies have tried to challenge government agencies' authority to seek disgorgement absent express statutory authority. While courts have not directly addressed the open question, a recent decision in the F-Squared bankruptcy litigation came close, say Benjamin Mundel and Mackenzi Siebert of Sidley Austin LLP.

  • SEC Case Brings Rarely Used Cyber Rules Into Limelight

    Erica Williams

    The U.S. Securities and Exchange Commission's settlement this week with Voya Financial Advisors represents the first SEC action involving the Identity Theft Red Flags Rule and only its third action involving the Safeguards Rule. The case provides a critical data point in evaluating how the SEC plans to enforce these two rules going forward, say Erica Williams and Sunil Shenoi of Kirkland & Ellis LLP.

  • The Principles Guiding FINRA Enforcement

    John Sikora

    Recent remarks by the head of enforcement at the Financial Industry Regulatory Authority offer valuable clues to regulated entities as to how FINRA decides whether to bring an enforcement action. This can be useful in guiding effective responses to FINRA actions, say attorneys with Latham & Watkins LLP.

  • SEC Fires Warning Shot Against 'Short And Distort' Schemes

    Perrie Weiner

    Unscrupulous short sellers who post false or distorted news have gone largely unchecked — until now. The U.S. Securities and Exchange Commission's recently filed case against a Massachusetts hedge fund adviser opens the way for civil claims, say attorneys with DLA Piper.