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Securities

  • October 12, 2018

    SEC Reopens Comment Period For Years-Old Swaps Proposal

    The U.S. Securities and Exchange Commission on Thursday voted to reopen the comment period for margin and capital requirements for securities-based swaps transactions mandated by Dodd-Frank, signaling renewed interest in regulations proposed as long as six years ago.

  • October 12, 2018

    Biotech Co. Slapped With Stock-Drop Suit Over Patent Failure

    A biotechnology firm's executives misled investors about patent rejections for its star product, which sent its stock into free fall when the news went public, according to a derivative suit filed on behalf of the company in Utah federal court.

  • October 12, 2018

    Tenet Brass Knock Back Derivative Suit Over FCA Settlement

    Current and former Tenet Healthcare Corp. board members have won a Texas court ruling that sends shareholders back to the drawing board on claims that the company leaders shirked their fiduciary duties by not stopping a kickback scheme that led to a $513 million False Claims Act settlement.

  • October 12, 2018

    K2M Shareholders Move To Block $1.4B Stryker Merger Vote

    A pair of investors in K2M Group Holdings filed separate suits in Delaware federal court on Friday seeking to block a shareholder vote on the company's $1.4 billion merger with Stryker Corp., both saying K2M's proxy statement regarding the proposed transaction lacks material information about its financial projections.

  • October 12, 2018

    2 Fraud-Convicted Pharma Analysts Denied Acquittal Bids

    A Massachusetts federal judge on Friday rejected a plea for acquittal and a new trial by two pharmaceutical statisticians awaiting sentencing for securities fraud, denying their argument that prosecutors improperly presented evidence of two separate stock tip conspiracies to a jury after saying they would present just one.

  • October 11, 2018

    Stock Heir Asks 9th Circ. To Revive $100M Lost Shares Row

    A New York man asked the Ninth Circuit on Thursday to revive litigation alleging Franklin Resources Inc. owes him more than $100 million in shares that went missing on the company's watch, saying a lower court erred in finding he knew of his rights more than 20 years before filing suit.

  • October 11, 2018

    Fidelity Asks 1st Circ. To End Decade-Old Whistleblower Case

    Fidelity Investments has asked the First Circuit to uphold a jury verdict absolving the company of terminating a finance director who won whistleblower protections from the U.S. Supreme Court then lost her claims of retaliation at trial, calling for the end of the former employee’s decade-old lawsuit.

  • October 11, 2018

    NY Judge Stays Deposition In Madoff Victims' Law Firm Suit

    A New York federal magistrate judge on Thursday granted Chaitman LLP and Becker & Poliakoff LLP's motion for a stay on deposition discovery in a suit by victims of Bernie Madoff against their former attorney, saying it is appropriate given the costs of the deposition and the firms' pending motions to dismiss.

  • October 11, 2018

    Lieff Cabraser Balks At Paying More In State Street Fee Fight

    Lieff Cabraser Heimann & Bernstein LLP told a Massachusetts federal judge late Thursday it should not have to continue paying for a multimillion-dollar probe into a $75 million attorney fee awarded following a settlement with State Street Corp., arguing much of the money has been spent looking into conduct tied to its fellow class counsel, Labaton Sucharow LLP.

  • October 11, 2018

    Crypto Is 'Father Of All Scams,' Economist Tells Senate

    An economist panned cryptocurrency and its related blockchain technology as overhyped scams before the Senate Banking Committee on Thursday, offering testimony that was countered by an advocate who praised these innovations as on par with the birth of the internet.

  • October 11, 2018

    Wells Fargo Workers Fight To Revive 401(k) Row In 8th Circ.

    A group of current and former Wells Fargo workers asked the Eighth Circuit on Wednesday to revive a proposed Employee Retirement Income Security Act class action accusing the bank of improperly investing employees’ retirement savings in company stock even as share prices tumbled amid a fraud scandal.

  • October 11, 2018

    Stitch Fix Hit With Stock-Drop Suit Over Q4 Client Growth

    An investor in Stitch Fix Inc. filed a proposed class action in California federal court Thursday alleging that the online retail fashion company concealed a flagging fourth-quarter active client growth rate, leading to an artificially inflated stock price that took a hit when the company released its financials this month.

  • October 11, 2018

    Ex-Newsweek Owner Denies $10M Fraud, Blames DA Vance

    A former co-owner of Newsweek and people and entities linked to him who are charged in a $10 million bank fraud scheme pled not guilty in a New York courtroom Thursday, claiming the case was retribution by Manhattan District Attorney Cyrus Vance Jr. for negative news coverage.

  • October 11, 2018

    Tablet Co. Execs Ink $2.5M Deal Over Pump-And-Dump Claims

    The trustee of bankrupt children’s tablet maker Fuhu Inc. has asked the Delaware bankruptcy court to approve a $2.5 million settlement to end a lawsuit in which the trustee alleged the company’s co-founder and its CEO drove it into Chapter 11 with a pump-and-dump scheme.

  • October 11, 2018

    Trader Can't Sway 7th Circ. To Revive Suit Over Firing

    A former Jefferies LLC metals trader didn't do enough to maintain a suit alleging his supervisor encouraged him to pursue trades the firm wouldn't approve, which then led to his firing, the Seventh Circuit held Thursday.

  • October 11, 2018

    Bharara Group To Explore Changing Insider Trading Law

    An insider trading task force of the sort proposed by former Manhattan U.S. Attorney Preet Bharara earlier this week could bring much-needed clarity to the law by defining key aspects such as personal benefit and materiality, experts say.

  • October 11, 2018

    Sinovac Investors' Stock Injunction Bid Faces Skeptical Judge

    A Massachusetts federal judge Thursday questioned the merits of a shareholder's demand that he halt corporate restructuring by the biopharmaceutical firm Sinovac amid a dispute over an alleged hostile takeover of the company's board of directors on the Caribbean island of Antigua.

  • October 11, 2018

    SEC Halts ICO, Says Company Faked Regulatory Approval

    The U.S. Securities and Exchange Commission has blocked an upcoming initial coin offering after alleging in California federal court that the company behind it falsely claimed it received regulatory approval from not only the SEC but also a fictitious agency called the Blockchain Exchange Commission.

  • October 11, 2018

    Laser Co. Zapped With Stock-Drop Suit Over Alleged Defects

    A fiber optics and laser company purposely misled shareholders and concealed flaws in its devices, which led to a significant drop in stock prices when the information became public knowledge, an investor alleged in a proposed class action filed in Texas federal court.

  • October 11, 2018

    Fugitive Ex-Fla. Atty Pleads Guilty To $21M Fraud Scheme

    A former Florida attorney who was apprehended in Mexico this summer pled guilty in federal court on Wednesday to a fraud charge related to his role in an investment scheme that duped 770 investors out of more than $21 million.

Expert Analysis

  • Stock Compensation Can Add Zing To Your Benefits Package

    Amy Bowler

    To attract talent in a competitive market, some employers may add creative stock and bonus compensation programs to thier benefits packages. They should keep in mind that adding stock options can trigger a multitude of legal rules and restrictions, say Amy Bowler and Beth Nedrow of Holland & Hart LLP.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • IRS Ruling On MBS Restructuring Should Encourage Investors

    Mark Leeds

    In June 2019, the Federal Housing Finance Agency will require Freddie Mac and Fannie Mae to begin issuing standardized mortgage-backed securities. Accordingly, the IRS last month encouraged Freddie Mac investors to convert their existing securities by stating that conversions won't trigger taxable gains or losses, say Mark Leeds and Steven Garden of Mayer Brown LLP.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Cayman Derivative Cases Brought Overseas Still Face Hurdles

    Peter McMaster

    Two court decisions within the past year have simplified the process for bringing derivative claims outside the Cayman Islands on behalf of Cayman companies, as shareholders no longer need permission from a Cayman court. However, such claims still face two difficulties, say Peter McMaster and Anna Snead of Appleby.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Opinion

    A Decade After Financial Crisis, Misconceptions Remain

    Edward Stringham

    Following the 2008 economic downturn, many observers blasted mortgage-backed securities and collateralized debt obligations. Today, we're hobbled with numerous regulations that stem from a fundamental misunderstanding of what these instruments were designed to do, says Edward Stringham of the American Institute for Economic Research.

  • Considerations For The 2019 Proxy Season

    Steve Quinlivan

    Given a number of changes to the regulatory landscape in recent months, public companies should consider planning for the upcoming proxy season early. The U.S. Securities and Exchange Commission has been particularly active adopting rules and regulations in areas that substantially impact annual reporting, say attorneys with Stinson Leonard Street LLP.

  • Examining The Role Of Market Price In Appraisal: Part 2

    Dirk Hackbarth

    In response to the Delaware Chancery Court’s invitation earlier this year seeking expert opinions on market efficiency, we propose several tests to empirically assess the reliability of market price in appraising fair value, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • Time To Prepare For New Municipal Securities Disclosures

    Laura Kurtz

    Starting next year, municipal issuers will need to report the incurrence of certain financial obligations, if material. However, the U.S. Securities and Exchange Commission has offered little guidance on how to make a materiality determination, says Laura Kurtz of Eckert Seamans Cherin & Mellott LLC.