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Securities

  • September 18, 2018

    Nixing Bonuses, Judge OKs Health Co.'s Ch. 11 Financing

    A New York bankruptcy judge gave health screening company Provant Health provisional approval for its debtor-in-place Chapter 11 financing Tuesday, but turned down its proposal to pay up to $650,000 in bonuses to be split among four top executives.

  • September 18, 2018

    Boston Scientific Faces Chancery Suit For Ending $275M Deal

    Medical technology developer Channel Medsystems Inc. sued Boston Scientific late Monday in Delaware's Chancery Court, claiming an unjustified breach of a $275 million agreement to buy Channel and its potential breakthrough device for treating heavy menstrual bleeding.

  • September 18, 2018

    Facebook Must Answer For Privacy Practices, Investors Say

    Investors urged a California federal judge on Monday to deny Facebook Inc.'s attempts to toss the suit filed against the social network's board of directors after the Cambridge Analytica data privacy scandal, arguing that the “barrage” of motions ignore and twist their allegations.

  • September 18, 2018

    Chancery Rejects Texas Forum For Quantlab Control Dispute

    A key dispute at the heart of a battle for control of high-speed trading firm Quantlab Financial LLC remained in Delaware’s Chancery Court Tuesday after a vice chancellor rejected a motion to dismiss or stay the action in deference to an earlier-filed lawsuit on the same issue in Texas.

  • September 18, 2018

    Labaton, Levi Vie For Lead Role In Prothena Stock-Drop Row

    Labaton Sucharow LLP and Levi & Korsinsky LLP threw their hats in the ring to be co-lead counsel in a proposed securities class action alleging Prothena cherry-picked drug trial results and lost investors more than $2 million, according to a Monday filing in New York federal court.

  • September 18, 2018

    7th Circ. Has Chance To Cut Off 'Mootness Fee' Merger Cases

    Against a backdrop of near-constant shareholder litigation challenging mergers, the Seventh Circuit is the first federal circuit that’s been asked to stop a burgeoning litigation strategy among plaintiffs attorneys that some view as extortion of the merging companies and their shareholders.

  • September 18, 2018

    CFTC Says Broker To Pay $50M Over ISDAfix-Rigging Claim

    The U.S. Commodity Futures Trading Commission said Tuesday that swaps broker Intercapital Capital Markets LLC will pay $50 million to resolve allegations that, for more than five years, it helped banks manipulate the ISDAfix benchmark to benefit their derivatives positions.

  • September 18, 2018

    White Collar Atty Rejoins Alston & Bird In DC After DOJ Stint

    Alston & Bird LLP has added a former federal prosecutor as a partner in its Washington, D.C., office, where he started out after law school and worked for eight years before leaving to become a government attorney specializing in white collar crime.

  • September 18, 2018

    Creditors Can't Put Stop To Puerto Rico GDB Restructuring

    A Puerto Rico federal judge denied on Tuesday a motion by unsecured creditors in its government’s bankruptcy proceedings to enforce a stay and prevent a proposed Government Development Bank restructuring, finding that neither the automatic stay nor the court’s stay order applies to moves made by the debtor.

  • September 18, 2018

    Ex-Deutsche Traders Rip Libor Fraud Claims As Trial Begins

    Two former Deutsche Bank AG traders on Tuesday urged a Manhattan federal jury to reject accusations of rigging the London Interbank Offered Rate, claiming prosecutors are attempting to hold them to an unfair standard which was nonexistent during the time in question.

  • September 18, 2018

    Clovis To Pay $20M To End SEC Claims Over Cancer Drug

    Biomedical firm Clovis Oncology Inc. and two of its executives will pay more than $20 million in penalties to resolve U.S. Securities and Exchange Commission claims that the company misled investors about the efficacy of its developmental lung cancer drug, the agency said Tuesday.

  • September 18, 2018

    Arent Fox Fights Early Win Bid In Malpractice Suit

    Arent Fox LLP told a New York federal court that investment firm Windsor Securities did not deserve a quick win for its legal malpractice claim in a suit alleging Arent Fox gave bad advice regarding life insurance policies Windsor seized as collateral for unpaid loans.

  • September 18, 2018

    UBS Investors Denied Cert. In Mutual Funds Dispute

    A New York federal judge on Monday declined to certify a class of investors alleging UBS and its subsidiaries violated agreements to analyze the suitability of their investments in closed‐end mutual funds, saying the appropriateness of certain investments will vary by individual.

  • September 18, 2018

    Investor Sues Energy Transfer Over Proposed $27B Merger

    An investor in Energy Transfer Partners LP filed a proposed class action in Texas federal court on Monday that aims to block a unitholder vote on the potential $27 billion acquisition of the gas and propane company by a subsidiary of its sister partnership.

  • September 18, 2018

    Thalhimer Execs Say Stock Plan Suit Just Misguided Rage

    Morton G. Thalhimer Inc. executives have urged a Virginia federal judge to toss a former colleague’s suit alleging they used the commercial real estate firm’s employee stock plan to enrich themselves, saying the suit doesn’t hold up despite its “unabashed rage.”

  • September 18, 2018

    Banc Of Calif. Investor Suit Mired In Director Deposition Row

    Banc of California is taking fire from two sides as it seeks to rein in the possibility of seven-hour depositions for four of its directors, with both a class of investors and the bank's former CEO arguing that it has no justification for limiting access to its directors in the class action over its ties to a notorious white collar fraudster.

  • September 18, 2018

    Elon Musk's Take-Private Tweet Draws Tesla Into DOJ Probe

    Tesla said Tuesday that the U.S. Department of Justice is investigating CEO Elon Musk's August tweet suggesting he was poised to take the electric-car maker private, a comment that caused an uproar and the company's stock to soar before Musk made an abrupt about-face under pressure. 

  • September 18, 2018

    Investor Wants Pomerantz, Holzer To Lead Stock-Drop Suit

    An investor claiming National Beverage Corp. misrepresented its financial situation and ethics, causing its stock price to tumble when a U.S. Securities and Exchange Commission investigation and harassment allegations against its top executive came to light, has asked a Florida federal court to appoint Pomerantz LLP and Holzer & Holzer LLC as co-lead counsel.

  • September 18, 2018

    SeaWorld, Ex-CEO Settle SEC 'Blackfish Effect' Fraud Suit

    SeaWorld Entertainment and its former chief executive settled a U.S. Securities and Exchange Commission suit accusing them of fibbing about the impact a critical 2013 documentary called “Blackfish” had on the Orlando, Florida-based aquatic park chain, agreeing to pay a total of $5 million to exit the litigation.

  • September 18, 2018

    SEC Settles With Alleged Chicago Penny Stock Fraudster

    A Chicago-area wellness company executive reached a deal to settle claims from the U.S. Securities and Exchange Commission he manipulated his company’s penny stock offerings, agreeing to pay a yet-to-be-determined penalty, the agency said Tuesday.

Expert Analysis

  • The Challenges Of Valuing Litigation-Driven Equities

    Alexander Berger

    Many eyes are on the Delaware Chancery Court to see whether it will compel Fresenius to close on a $4.5 billion acquisition of Akorn. The case, which completed post-trial briefing last week, presents an interesting question about the meaning of stock price as evidence in litigation, say Alexander Berger, an investment consultant, and J.B. Heaton, a lecturer at the University of Chicago Law School.

  • 2nd Circ. Restricts The FCPA's Reach

    Brad Karp

    The Second Circuit’s opinion last week in U.S. v. Hoskins limits the U.S. Department of Justice’s ability to prosecute foreign individuals or companies for Foreign Corrupt Practices Act violations. The opinion also flatly contradicts the U.S. Securities and Exchange Commission’s 2012 FCPA resource guide, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • LLC Derivative Claims In The Wake Of Wenske

    Adrienne B. Koch

    Many limited liability companies are formed in Delaware because of the state’s well-developed and business-friendly law in this area. But a recent decision in Wenske v. Blue Bell Creameries highlights the level of care with which an LLC's governing agreement must be drafted in order to maximize these ostensible advantages, says Adrienne B. Koch of Katsky Korins LLP.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    SEC Direction Unlikely To Shift Despite Agency Transitions

    Carol Gilden

    The recent decline in U.S. Securities and Exchange Commission enforcement activities suggests that Wall Street’s top cop is less focused on rooting out corporate fraud and more focused on regulatory matters seen as favorable to corporate America. This is unlikely to change with the upcoming commissioner transitions, says Carol Gilden of Cohen Milstein Sellers & Toll PLLC.

  • Delaware Decision Clarifies MFW's Ab Initio Requirement

    Gail Weinstein

    The Delaware Chancery Court's ruling last month in Olenik v. Lodzinski is notable for providing a substantial discussion of the difference between “negotiations” and “preliminary discussions” for determining whether a merger meets MFW's “ab initio requirement” and qualifies for review under the deferential business judgment rule standard, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.

  • How Blockchain Could Rescue 10b-5 Damages

    George Oldfield

    The current indirect share ownership system is not adequate for the way markets work today and creates the potential for inaccurate damages claims in 10b-5 settlements. Blockchain technology may provide a solution, but many problems must be solved first, say members of The Brattle Group.

  • Opinion

    Incorporating Docs By Reference: New 9th Circ. Law Is Flawed

    Brian Sutherland

    In Khoja v. Orexigen Therapeutics, the Ninth Circuit recently concluded that it needed to address “overuse” of documents incorporated by reference in securities cases. But the cure may be worse than the disease, say Brian Sutherland and James Martin of Reed Smith LLP.

  • The Year Of The Crypto Investigation

    Daniel Payne

    There has been a flurry of subpoenas and investigations into cryptocurrency trading and initial coin offerings in the first eight months of this year. These investigations, on the rise, are coming from both state and federal regulators, says Daniel Payne of Murphy & McGonigle PC.