• March 19, 2018

    SocGen Earmarks €1B To Handle US Probes Into Libor, Libya

    Societe Generale SA on Monday said it has set aside €1 billion ($1.23 billion) to deal with investigations by U.S. authorities into benchmark rate rigging and transactions between the French lender and Libya’s sovereign wealth fund.

  • March 19, 2018

    Justices Ask Gov't For Views On ERISA Causation Burden

    The U.S. Supreme Court on Monday asked the U.S. solicitor general to weigh in on a case asking when the burden of showing whether an Employee Retirement Income Security Act fiduciary caused an alleged loss shifts from the workers to the fiduciary.

  • March 19, 2018

    SEC Whistleblowers Net $83M In Largest Ever Bounties

    The U.S. Securities and Exchange Commission on Monday approved its largest ever whistleblower awards, agreeing to pay out roughly $83 million combined to three tipsters, who are represented by Labaton Sucharow LLP, according to the firm.

  • March 16, 2018

    Fla. Property Investors Urge Cert. In $157M Fraud Suit

    Investors urged a Florida federal court Friday to grant class certification in their suit claiming they lost nearly $157 million invested through Cabot Investment Properties LLC as a result of an embezzlement scheme run by its executives and allegedly supported by property manager CBRE Inc. and others.

  • March 16, 2018

    SEC’s Silicon Valley Scrutiny Comes To Bloom In New Cases

    Two years after the U.S. Securities and Exchange Commission put Silicon Valley on notice about complying with Wall Street’s rules, the agency has delivered a pair of enforcement actions that show its focus on the California region hasn’t lessened and may even heat up.

  • March 16, 2018

    Zohar Funds Say Manager's Bid To Lift Stay Isn't Urgent

    Bankrupt distressed investment vehicles the Zohar Funds hit back Friday against a bid by their collateral manager to lift the automatic litigation stay, saying the litigation it wants to move forward is not a pressing matter in the Chapter 11 cases.

  • March 16, 2018

    Alleged Ponzi Promoters Can't Nix $340M SEC Suit In Mass.

    A Massachusetts federal judge denied bids by two alleged former promoters of TelexFree LLC to escape a U.S. Securities and Exchange Commission lawsuit on Friday, saying the government had identified specific statements both had made to members of the state’s Dominican community urging them to invest in a company authorities have called a $340 million pyramid scheme.

  • March 16, 2018

    Va. Woman Gets 2½ Years For Microlender Investment Fraud

    A northern Virginia church member who admitted to helping her pastor and his wife run what federal prosecutors have alleged was an investment fraud disguised as an empowering, internationally oriented microlending firm was sentenced Friday in Alexandria federal court to serve 30 months in prison.

  • March 16, 2018

    Wilmington Trust Past Due Waivers Said To Run For Years

    A Wilmington Trust Corp. backlog of unacknowledged, past due commercial loans included 142 debts worth $177.3 million that were six months to three-and-a-half years past due when 2009 ended, a witness said Friday during a Delaware fraud and securities trial for four bank executives.

  • March 16, 2018

    IRS Says It's Protected From Trustee's $3.6M Clawback Suit

    The IRS is pushing back against the $3.6 million clawback suit brought by the bankruptcy trustee of doomed Ponzi vehicle DBSI Inc., telling an Idaho federal court the tax agency is merely a “conduit,” no different from a bank, and therefore immune to this type of avoidance action.

  • March 16, 2018

    SEC Affirms Bar Of Ex-FINRA Firm Rep Over Improper Conduct

    The U.S. Securities and Exchange Commission has affirmed the Financial Industry Regulatory Authority’s order barring a former FINRA-member firm representative over harassing, threatening and deceptive communications to his former coworkers, saying the bar was neither excessive nor oppressive.

  • March 16, 2018

    Morningstar, Prudential Flee RICO Claim Over Robo-Adviser

    Morningstar Inc. and two Prudential Financial Inc. retirement-focused subsidiaries escaped a racketeering suit claiming the three colluded to steer investors toward high-cost investment options with a robo-adviser, after an Illinois federal judge Friday said a plan participant who is lobbing those claims failed to allege that the companies were running an unlawful enterprise.

  • March 16, 2018

    BofI Gets Early Exit From Securities Class Action

    A California federal judge on Thursday tentatively dismissed with prejudice the latest attempt by investors to sue the holding company of BofI Federal Bank for allegedly making false or misleading statements to the public, finding the investors still hadn’t linked stock value losses to the alleged misrepresentations.

  • March 16, 2018

    House Passes Bill Raising Reg A+ Offering Limit To $75M

    The House of Representatives on Thursday passed a bill that increases the limit of so-called Reg A+ offerings to $75 million, potentially broadening the appeal of an exemption that allows companies to raise capital short of conducting a full-blown initial public offering.

  • March 16, 2018

    Patriarch Not Covered For SEC Probe, Axis Tells 2nd Circ.

    Axis Insurance Co. on Friday urged the Second Circuit to uphold a New York federal court's ruling that it doesn't owe Lynn Tilton's Patriarch Partners LLC $5 million to cover the costs of an SEC investigation and enforcement action, saying the lower court properly concluded that coverage is barred because the probe predated the insurer's policy.

  • March 16, 2018

    Enron Debt Investors Push Back On Banks' Quick Win Bids

    A group of investment funds seeking to hold Merrill Lynch, Deutsche Bank and Credit Suisse responsible for losses stemming from the infamous 2001 collapse of Enron Corp. have urged a New York federal judge to let their 15-year-old case proceed to trial, battling back against the banks’ latest efforts to slip the suit.

  • March 16, 2018

    Calif. Man Admits To $6.8M Investment Fraud Scams

    A purported California entrepreneur has admitted to bilking investors out of $6.8 million by falsely claiming that three different companies he controlled were developing technology that could dramatically increase gas mileage for any car, working on anti-counterfeiting technology and coming up with a method to convert used tires into oil.

  • March 16, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen the Force India Formula One team sue Santander, the Fiat Group launch an action against its longtime pension scheme administrator and Squire Patton Boggs, and a Scipion fund take on a commodities warehouser. Here, Law360 looks at those and other new claims in the U.K.

  • March 16, 2018

    DOL Direction Sought After Fiduciary Rule Nixed By 5th Circ.

    A Fifth Circuit ruling vacating the U.S. Department of Labor’s fiduciary rule for retirement account advisers has created confusion across a broad swath of the U.S. investment landscape that will only be resolved once the DOL decides whether to drop the case or pursue it on appeal, legal experts said Friday.

  • March 16, 2018

    Court Freezes Leaders' Assets In Cryptocurrency Schemes

    A Florida federal court has frozen the assets of four alleged scammers accused of telling investors that they could turn $100 of digital currency into $80,000 per month, while setting up a pyramid scheme that enriched only themselves.

Expert Analysis

  • FCPA Corporate Enforcement Policy: Pilot Program Redux

    Ryan Rohlfsen

    Criminal resolutions during the Foreign Corrupt Practices Act pilot program likely would not have come out differently under the new corporate enforcement policy, but the revised policy makes the impact of self-disclosing possible FCPA issues slightly more predictable, say attorneys with Ropes & Gray LLP.

  • Protecting Privilege In Litigation Financing Negotiations

    Eric Robinson

    Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.

  • Commissioner Jackson's Take On Perpetual Dual-Class Stock

    Spencer Feldman

    Newly appointed member Robert Jackson of the U.S. Securities and Exchange Commission recently added an important voice to the continuing debate about perpetual dual-class stock. Using Jackson's patriotic and practical arguments, smart company founders will find the right balance in adopting dual-class stock structures with negotiated sunset provisions, says Spencer Feldman of Olshan Frome Wolosky LLP.

  • No Relief For Whistleblowers In 7th Circ.

    Steven Pearlman

    A trifecta of recent decisions illustrate a trend of the Seventh Circuit rejecting whistleblower retaliation claims. These cases raise the bar for plaintiffs trying to establish that they engaged in protected activity, a welcome change for employer-defendants, say Steven Pearlman and Edward Young of Proskauer Rose LLP.

  • The Securities Law Questions Raised By #MeToo

    Deborah Birnbach

    Although companies often do not disclose internal or government investigations generally, and there are no cases obligating disclosure of sexual harassment investigations specifically, companies are not impervious to litigation for failing to disclose such information, or for breach of fiduciary duty in connection with tolerating sexual harassment, say attorneys with Goodwin Procter LLP.

  • Settlement Payment Considerations After Tax Reform

    Diana Wollman

    Since 1969, U.S. tax law has denied a deduction for settlement payments to regulators, but this limitation was significantly changed by the Tax Cuts and Jobs Act. However, in U.S. Securities and Exchange Commission enforcement actions, it will likely be difficult for defendants to characterize monetary payments in a way that satisfies the new law, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Why Machine Learning Should Matter To Lawyers

    Dan Puterbaugh

    Legal leaders who want to meet their clients' expanding expectations should start moving their documents to future-ready document management solutions now if they want to stay competitive in the next few years, says Dan Puterbaugh of Adobe Systems Inc.

  • The Volkswagen Scandal: Catalyst For Class Action Change?

    Noah Wortman

    The sheer scale and global nature of the Volkswagen diesel emissions scandal has led to discussions about how such high-volume consumer cases are handled, with some commentators suggesting that the case represents a turning point in how class action litigation is viewed and handled, particularly in Europe, say Noah Wortman, global head of class action services at Goal Group, and attorneys with Hausfeld LLP.

  • Is The VIX Fixed? A Look At Wall Street’s 'Fear Gauge'

    Paul Devlin

    Suspicions abound that the CBOE Volatility Index, or the “fear gauge,” has been manipulated by unscrupulous traders to the tune of hundreds of millions of dollars per month, and we can be sure that regulators are paying close attention. However, there are many basic questions about the looming VIX investigations that are surprisingly hard to answer, says Paul Devlin of Richards Kibbe & Orbe LLP.

  • Highlights From 'SEC Speaks' 2018

    Christopher Veatch

    A common theme throughout this year’s “SEC Speaks” conference was that market participants and the U.S. Securities and Exchange Commission would benefit if both were more accessible, flexible and transparent. 2018 will likely be a busy year for the commission and all that it regulates, say attorneys with Perkins Coie LLP.