Securities

  • April 12, 2018

    Avee Objects To Abbott Dismissal Move In $36M Escrow Suit

    Former shareholders in Avee Laboratories Inc. objected late Wednesday to Abbott Laboratories’ bid to shut down a fiduciary breach claim in a Delaware Chancery Court suit over a $36 million merger escrow allegedly tapped for disputed company settlements of fraudulent drug-testing claims against Avee.

  • April 12, 2018

    Attys Vie To Lead Challenge To Gas Partnership Conversion

    Two attorney groups argued Thursday for the lead counsel role in a Delaware Chancery Court class action challenging a natural gas well investment partnership’s plan to convert into a corporation, saying the deal could cost preferred unitholders more than $237 million.

  • April 12, 2018

    FisherBroyles Snags Blockchain Pro From Sheppard Mullin

    FisherBroyles LLP has hired a former Sheppard Mullin Richter & Hampton LLP attorney in Los Angeles and Silicon Valley with experience handling bitcoin technology development agreements, venture capital financing and other cutting-edge technology as a partner and co-chair of its financial technology and blockchain practice group.

  • April 12, 2018

    SIBOR-Rigging Suit Axed At Hearing, But Plaintiffs Get Redo

    A Manhattan federal judge dismissed the latest version of a suit against dozens of banks over an alleged conspiracy to manipulate the Singapore Interbank Offered Rate on Thursday, telling the plaintiffs to try again but to include specific details and clearly explain why they can sue.

  • April 12, 2018

    SunPower Investors’ Stock-Drop Suit May Be Thrown Out

    A California federal judge said Thursday he’s inclined to toss with leave to amend a putative securities class action claiming SunPower Corp. fraudulently overstated its financial projections, causing its stock to drop 30 percent, saying the fraud allegations are insufficient and “there’s nothing hidden from the public here.”

  • April 12, 2018

    Former Snap Employee Must Arbitrate Dispute Over His Firing

    A California federal judge on Wednesday sent to arbitration a suit brought by a former employee of Snapchat maker Snap Inc. who alleged he was fired for raising concerns about the social media company's user metrics, finding their contract was neither unconscionable nor ambiguous.

  • April 12, 2018

    Tallgrass Energy Investors Say Merger Plan Lacks Key Info

    A pipeline operator and its board of directors have violated the Exchange Act by omitting certain financial information from documents filed with the U.S. Securities and Exchange Commission relating to a merger agreement, says a proposed class action filed Thursday in Delaware federal court.

  • April 12, 2018

    Chubb Stiffed Ex-Exec On $600K In Stock Pay, Suit Says

    A top Sompo International executive has accused his former employer Chubb of illegally withholding $600,000 in deferred stock compensation while the parties are embroiled in litigation over whether he stole Chubb's trade secrets and helped poach key employees.

  • April 12, 2018

    CFTC Says NY Co., Execs Committed Commodity Pool Fraud

    The U.S. Commodity Futures Trading Commission slapped two traders and their investment firm with a suit Wednesday in New York federal court claiming they took in $300,000 in pooled futures trading investments and pulled the bulk of it out for personal and business expenses.

  • April 12, 2018

    NY Traders Charged With $1.1M Forex Fraud Scheme

    A federal grand jury accused two New Yorkers in an indictment unsealed Thursday of conning investors out of hundreds of thousands of dollars in foreign exchange trading schemes that drew the U.S. Commodity Futures Trading Commission’s ire in 2015, federal prosecutors said.

  • April 12, 2018

    True Value Investors Want More Info Before Vote On Buyout

    A putative class of investors in hardware retailer True Value Co. told a Delaware state court judge Thursday that a vote on a proposed sale of 70 percent of the company should be halted until the company makes additional disclosures about the process that led to the proposal.

  • April 12, 2018

    Visium Took Medicare Tips With 'Grain Of Salt,' Jury Hears

    Former Visium Asset Management trader Christopher Plaford took health spending policy tips from expert consultant David Blaszczak with “a grain of salt,” getting information from others alongside the man charged with feeding secret Medicare and Medicaid information to Wall Street, a Manhattan jury heard Thursday.

  • April 12, 2018

    Forex Trader Must Arbitrate 'Last Look' Claims, Judge Says

    A New York federal judge on Thursday granted the motions of three banks to compel arbitration in three proposed class actions challenging the banks’ purported “last look” practices in the foreign exchange market.

  • April 12, 2018

    Judge Rips Feuding Parties In NY Solar Co.'s Ch. 11

    Level Solar Inc. narrowly fended off a bid by its former CEO to liquidate the case, after a New York bankruptcy judge admonished both parties for “mudslinging nonsense” at a contentious hearing Thursday while saying she would give the debtor a few more weeks to get its act together.

  • April 12, 2018

    9th Circ. Judge Doubts Las Vegas Sands Shareholder Suit

    A Ninth Circuit judge appeared skeptical Thursday of reviving a certified securities class action alleging Las Vegas Sands Corp. and two executives misled investors about its development pipeline, saying during a hearing he doesn't think the investors can separate the company's stock drop from the 2008 global market crash.

  • April 12, 2018

    Ex-HSBC Exec Seeks No Prison Over $3.5B Forex Deal

    Former HSBC foreign currency exchange executive Mark Johnson on Wednesday asked a New York federal judge to sentence him to no prison time over his conviction for defrauding Cairn Energy PLC by front-running a $3.5 billion currency swap, calling the matter "one black mark" on an otherwise law-abiding life.

  • April 12, 2018

    Statoil, Ex-Employee Settle Wrongful Termination, Fraud Row

    A dispute between Statoil Gulf Services LLC and an accountant who alleged she was fired in retaliation after telling superiors she believed some in the company were committing shareholder and securities fraud in violation of federal law, has been settled, the parties told a federal judge in Texas on Wednesday.

  • April 12, 2018

    Securities Settlements In 2018 Exceed Value For All Of 2017

    The total value of securities class action settlements for 2018 has already far surpassed the total for all of 2017, according to recently released data, with legal experts saying the drop-off a year ago was mostly cyclical but also likely due to a dearth in high-profile fraud cases and a rising stock market.

  • April 12, 2018

    Adviser Who Ran $5M Fraud To Turn Over Assets, Profits

    A Chicago investment adviser due to be sentenced for stealing more than $5 million from his clients has agreed to turn over profits and assets stashed in Israel as part of a settlement reached with the U.S. Securities and Exchange Commission, according to a court filing.

  • April 12, 2018

    Ex-General Cable Execs Can't Skirt Claims In SEC Fraud Suit

    Two former General Cable Corp. executives can’t duck part of the U.S. Securities and Exchange Commission’s suit accusing them of concealing nearly $47 million in accounting errors, a Florida federal judge said, finding the commission had adequately alleged the pair contributed to and benefited from the fraud.

Expert Analysis

  • Chief Innovation Officer — The New Star On Legal Teams

    Mark Williamson

    Over the past few years, forward-thinking law firms have expanded their talent pools to include a chief innovation officer, whose responsibilities include spearheading the implementation of technology. It is a smart move, says ​​​​​​​Mark Williamson, co-founder and chief technology officer at Hanzo Archives Ltd.

  • The First SEC Action Following Option-Grants Probe

    Michael Dicke

    The U.S. Securities and Exchange Commission’s recent action against Credit Karma — the first enforcement action to result from a sweeping investigation that began in 2016 — reinforces comments from various SEC leaders that the agency is concerned about option-granting practices of late-stage private companies. It also demonstrates the SEC’s continued interest in Silicon Valley companies' governance procedures, say Michael Dicke and... (continued)

  • Opinion

    National Lawyers Need National Licensing For National Courts

    EJ Hurst II

    Just last month, a number of legal groups asked the Northern District of California to strike its rule requiring that, before seeking federal court admission, attorneys first be licensed by the state of California. It is irrational to exclude seasoned federal practitioners from general admission due to state bar approval while allowing raw state lawyers who have never been inside a federal courtroom, says attorney EJ Hurst.

  • SEC, CFTC Display United Front On Cryptocurrency

    Laura Anthony

    In a recent Senate committee hearing on virtual currencies, both Jay Clayton and Christopher Giancarlo confirmed that the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission are working together to ensure effective oversight. However, regulation and oversight need to be fashioned in a way that properly addresses the new technology, says Laura Anthony of Legal & Compliance LLC.

  • Can The SEC Enforce Securities Laws Abroad?

    James Goldfarb

    This week, the Tenth Circuit will hear a case with far-reaching consequences, literally, for the U.S. Securities and Exchange Commission's enforcement activity. If the commission has its way in its case against Traffic Monsoon, more aggressive overseas enforcement activity could be in store, say attorneys with Murphy & McGonigle PC.

  • Changes To Rule 23 Are Coming, Are You Prepared?

    Niki Mendoza

    Proposed amendments to the Federal Rules of Civil Procedure Rule 23, which governs class actions, are set to take effect on Dec. 1, 2018, pending approval. The amendments would significantly alter class action litigation procedure from notice to settlement, says Niki Mendoza of Garden City Group LLC.

  • Virtual Currency As Commodity: From Coinflip To McDonnell

    Douglas Arend

    Through a series of public statements and judicial opinions beginning with the 2015 Coinflip action and progressing to a New York federal court’s decision in McDonnell this month, the U.S. Commodity Futures Trading Commission has established itself as the primary regulator of virtual currencies, notwithstanding the absence of clear statutory authority, say Douglas Arend and Jeffry Henderson of Greenberg Traurig LLP.

  • An Update On Spoofing And Its Challenges

    Ilan Guedj

    Regulators have recently increased their efforts in cracking down on spoofing, yielding an increasing number of criminal indictments and civil settlements. However, an important challenge in identifying spoofing is separating legitimate calculations from those that were intended to manipulate the market, say Ilan Guedj and An Wang of Bates White LLC.

  • Are ICOs In The Crosshairs Of New York’s Martin Act?

    Daniel Alter

    Although much attention has been paid to the U.S. Securities and Exchange Commission’s actions in the initial coin offering space, little thought has been given to the applicability of New York’s own securities fraud statute. That could be a serious oversight, says Daniel Alter of Murphy & McGonigle PC.

  • Choice-Of-Law Takeaways From Dole Insurance Dispute

    Kevin LaCroix

    The insurance coverage litigation arising from the settlement of the shareholder claims filed in connection with Dole Food’s 2013 going-private transaction continues to grind on, and the latest ruling could be helpful for companies seeking to argue that Delaware law should govern the interpretation of their insurance policies, says Kevin LaCroix of RT ProExec.