Securities

  • April 13, 2018

    SEC In-House Judges' Powers Unconstitutional, Justices Told

    A former investment adviser whose challenge of sanctions imposed by a U.S. Securities and Exchange Commission administrative law judge is now before the U.S. Supreme Court argued in a brief filed Friday that his rights were violated because the judge who heard his case wasn't constitutionally authorized to wield such power.

  • April 13, 2018

    SEC Charges Supplement Co. CEO With Penny Stock Fraud

    The CEO of a Chicago-area health supplements company that sold its shares as penny stocks has been charged with making false and misleading statements in the company's SEC filings and press releases and with manipulating the company's stock, the U.S. Securities and Exchange Commission announced Friday.

  • April 13, 2018

    Goldman Fights Investors' Cert. After 2nd Circ. Reversal

    Goldman Sachs urged a New York federal judge on Friday to reject a certification bid by a proposed class of shareholders who claim the bank’s misrepresentations caused its stock to drop, arguing that the statements didn't impact the stock's value based on the Second Circuit's “preponderance of evidence” standard.

  • April 13, 2018

    Faux Federal Reserve Scammers Cop To Fraud Conspiracy

    Two people charged with recruiting investors in a supposed economic development scheme that they claimed was backed by the New York Federal Reserve pled guilty to conspiracy to commit wire fraud in Manhattan federal court Friday and face up to three and a half years in prison.

  • April 13, 2018

    Ex-Investment Adviser Gets Nearly 5 Yrs. For Stealing $3M

    A New York federal judge on Friday sentenced a former Long Island investment adviser and hedge fund manager to nearly five years in prison and $5.3 million in restitution after he pled guilty to defrauding investors out of approximately $3 million to finance a lavish lifestyle.

  • April 13, 2018

    Russian Must Pay $302M In International Data Hacking Case

    A Russian national was ordered Thursday to pay $302 million in restitution to five corporate victims after he copped to his role in what officials have dubbed one of the world’s largest data breaches that targeted Nasdaq, Dow Jones Inc. and a slew of other companies, according to documents filed in New Jersey federal court.

  • April 13, 2018

    Firm Hit With Malpractice Suit Over Stock Plan Transaction

    A Pennsylvania-based law firm that specializes in employee stock ownership plan transactions was hit with a legal malpractice suit in Massachusetts federal court Friday by Boston-based cleaning and maintenance companies that claim the botched ESOP transaction cost the companies' owner a bundle.

  • April 13, 2018

    Zohar Ch. 11 Dismissal Hearing Procedures Set By Court

    Bankrupt distressed company investment vehicles the Zohar Funds are prepared to defend their Chapter 11 filings at hearings beginning Tuesday after a Delaware judge decided Friday on how those hearings should proceed.

  • April 13, 2018

    CSS, Rosenthal Will Lead Gas Partnership Conversion Suit

    Rosenthal Monhait & Goddess PA and CSS Legal Group PLLC were chosen Friday to lead a Delaware Chancery Court consolidated class action alleging a natural gas well investment partnership’s plan to convert into a corporation will deny preferred unitholders payments they are owed and depress the value of their holdings.

  • April 13, 2018

    Funds Fight Bids To Toss $80B Valeant Price-Gouging Suit

    A proposed class of Valeant Pharmaceuticals shareholders told a New Jersey federal judge Thursday that all of the claims against the company, its executives and several banks over a price-gouging scheme that cost shareholders $80 billion were adequately pled, contrary to a volley of partial dismissal bids pushed by the defendants.

  • April 13, 2018

    A Conversation With Baker Botts CMO Gillian Ward

    In this monthly series, legal recruiting experts at Major Lindsey & Africa interview law firm management about navigating an increasingly competitive business environment. Here we feature Gillian Ward, chief marketing officer at Baker Botts LLP.

  • April 13, 2018

    Brit Extradited To NYC For Alleged $37M Bitcoin Scam

    Renwick Haddow, a British businessman wanted in the U.S. for an alleged $37 million online bitcoin scam, was jailed Friday after he was arrested in Morocco in July and brought to New York City Thursday evening.

  • April 13, 2018

    True Value PE Buy-In Vote Beats Injunction To Move Ahead

    True Value Co. won Delaware Chancery Court clearance on Friday to move ahead with a stockholder vote on the sale of a 70 percent stake in the 4,400-store hardware cooperative, after a vice chancellor rejected a stockholder preliminary injunction motion.

  • April 13, 2018

    2nd Circ. Sides With Deutsche In Investors' Laundering Case

    A proposed class of investors can’t revive their suit accusing Deutsche Bank AG of ignoring shortcomings with its internal controls amid an alleged Russian money-laundering scheme, the Second Circuit said Friday, finding they failed to show the bank intended to deceive shareholders when it touted the success of those controls.

  • April 13, 2018

    Volcker Rule Changes Pass In House

    The U.S. House of Representatives on Friday approved changes to the Volcker Rule, including consolidating rulemaking under the Federal Reserve and exempting banks with less than $10 billion in assets from compliance, adding to a list of potential changes in an anticipated package altering the Dodd-Frank Act.

  • April 12, 2018

    Investors Say Pa. Vertical Farm Owner Bilked Them For $1M

    Calling him a “con artist” and a “career criminal,” investors of a vertical farming startup in Philadelphia say in a state suit that the company’s president defrauded shareholders of more than $1 million by secretly redirecting assets to himself and other enterprises, like a medical marijuana operation.

  • April 13, 2018

    ESMA Widens Scrutiny Of Op Risk For CCPs, Trading Venues

    Europe’s top securities regulator said on Thursday it is changing the way it identifies and monitors operational risks in the financial sector, by taking into account a wider range of quantitative indicators and producing more regular in-depth data reports.

  • April 13, 2018

    Mass. Top Court Won't Quash AG Climate Probe Of Exxon

    Massachusetts' top court on Friday upheld the dismissal of ExxonMobil's legal challenge of Massachusetts Attorney General Maura Healey's climate change probe, dealing the oil giant a second defeat within a month in its fight against her investigation into whether Exxon concealed its climate knowledge from investors.

  • April 12, 2018

    Fla. Firm Fights Sanctions In Billionaire Sex Offender Row

    Fowler White Burnett PA urged a Florida bankruptcy judge Wednesday not to hold it or convicted billionaire sex offender Jeffrey Epstein in contempt for allegedly retaining copies of confidential documents, saying the cited court order did not say what to do with a disc that is at issue.

  • April 12, 2018

    Cumulus Defends Valuation To Open Ch. 11 Plan Confirmation

    Bankrupt radio giant Cumulus Media Inc. began a trial Thursday to confirm a Chapter 11 restructuring plan that would reduce its bloated debt by just over $1 billion, squaring off against junior creditors who complain they are being shortchanged by a deal that undervalues the company's total worth.

Expert Analysis

  • Keys To Corporate Social Responsibility Compliance: Part 3

    Michael Littenberg

    As the quantity and quality of corporate social responsibility disclosure increases, there is also movement toward greater comparability. Larger companies should benchmark their disclosures against global peers and evolving global standards, since over time, enhancements in foreign disclosure practices are likely to drive disclosures by many U.S. companies, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: Potential Trends In Section 11 Litigation

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    The U.S. Supreme Court's clear signal in Cyan v. Beaver County that Section 11 claims filed in state court can remain in state court causes the litigation chess game to evolve to a new phase. A reasonable hypothesis is that Section 11 filings in state court will increase nationwide and not just in California, say members of Stanford Law School and Cornerstone Research.

  • Equity Partnership Isn’t What It Used To Be

    Jeff Liebster

    To many young attorneys, becoming an equity partner shows a firm's long-term commitment, meaning job security and a voice in important firm matters. However, the industry has changed and nowadays it may not be better to enter a new firm as an equity partner, says Jeffrey Liebster of Major Lindsey & Africa.

  • And Now A Word From The Panel: An Inconvenient MDL

    Alan Rothman

    By their nature, multidistrict pretrial proceedings will not be in the home district of all parties. The MDL transfer process necessarily centralizes actions from around the country into a single forum. The linchpin for the panel is balancing competing factors and determining whether transfer best serves the convenience of parties and witnesses, says Alan Rothman of Arnold & Porter.

  • Keys To Corporate Social Responsibility Compliance: Part 2

    Michael Littenberg

    Increasingly, corporate social responsibility must be on the radar screen of in-house counsel. Investors are paying more attention to environmental, social and governance issues, and a growing number of shareholder proposals on these subjects should be expected, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: Creative Lawyering Can't Displace Clear Statute

    Darren Robbins

    Prior to the U.S. Supreme Court’s decision last week in Cyan v. Beaver County, defense counsel often engaged in procedural maneuvering by interjecting jurisdictional challenges or removing cases to federal court. But defendants can no longer unilaterally override investors' clear statutory right under the Securities Act of 1933, say attorneys with Robbins Geller Rudman & Dowd LLP.

  • Series

    Judging A Book: Hardiman Reviews 'Without Precedent'

    Judge Thomas Hardiman

    In his new book, "Without Precedent: Chief Justice John Marshall and His Times," professor Joel Richard Paul ably explains more than a dozen of Marshall’s most significant opinions, which comes as no surprise​. ​What is a surprise — a pleasant one — is the book's readability, says Judge Thomas Hardiman of the Third Circuit.

  • The Rise In Event-Driven Securities Class Actions

    Steve Berman

    Securities class action filings in 2018 highlight a remarkable ongoing shift toward event-driven fraud cases, as well as the need for the law firms pursuing these cases to evolve, say Steve Berman and Mike Stocker of Hagens Berman Sobol Shapiro LLP.

  • Keys To Corporate Social Responsibility Compliance: Part 1

    Michael Littenberg

    2018 may be the year that corporate social responsibility compliance becomes a core duty of in-house legal departments. Not only have legal requirements proliferated in recent years, but new disclosure requirements and more regulation are on the horizon, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: Some Prognostications

    Boris Feldman

    With the ink on the U.S. Supreme Court's decision in Cyan v. Beaver County barely dry, the plaintiffs bar is comfortably in the Section 11 saddle. They won. But history suggests that this may be victory of a battle, not the war, say Boris Feldman and Ignacio Salceda of Wilson Sonsini Goodrich & Rosati PC.