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Securities

  • October 2, 2018

    NC Recycling Co. Founder Gets 10 Years For $27M Fraud

    A North Carolina federal judge has sentenced the founder of a now-defunct electronics waste recycling company to 10 years in prison for fraudulently obtaining millions of dollars by lying to investors, franchisees and lenders and spending the money on personal luxuries, according to authorities.

  • October 2, 2018

    Fla. Man Pleads Guilty To $6.1M Fraud Scheme, Tax Evasion

    A Florida man who had passed himself off as a Harvard-educated investment adviser pled guilty in North Carolina federal court Tuesday to wire fraud and tax evasion for having engaged in a scheme that defrauded lenders, his father's company and his wife out of more than $6.1 million that he either spent or lost through risky trading.

  • October 2, 2018

    Investors Call On SEC To Require Tax Reporting Transparency

    A group of investors and academics have called on the U.S. Securities and Exchange Commission to institute rules that would require publicly traded companies to provide greater transparency when reporting their tax obligations.

  • October 2, 2018

    Investors Hit Broker With Class Action Over 1 Global Sales

    A new proposed class action in Illinois federal court accuses a stockbroker of selling illegal securities in 1 Global Capital, a payday lender now charged with running a $287 million fraud scheme.

  • October 2, 2018

    Kraft Wheat Buys Hurt Hundreds Of Investors, Court Told

    A group of investors asked an Illinois federal judge Monday to certify a class in their suit alleging that Kraft Foods Inc. and a snack-food spinoff hurt commodity traders by manipulating wheat prices in 2011.

  • October 2, 2018

    2nd Circ. Says Lost Financial Stake Shouldn't Doom Suit

    A Second Circuit panel revived Tuesday a derivative suit alleging investors that owned more than a 10 percent stake in software company Qlik Technologies Inc. inappropriately profited from buying and selling company stock within a six-month period, saying the plaintiff could be swapped out to solve a jurisdictional issue.

  • October 2, 2018

    Claims Trimmed In ERISA Suit Against Allina Health System

    A Minnesota federal judge has decided to trim a proposed Employee Retirement Income Security Act class action against Allina Health System and multiple related entities, but stopped short of agreeing to toss the entire suit, which was filed by various former employees.

  • October 2, 2018

    Attys In ISDAfix Antitrust Suit Request $151M In Fees

    Attorneys for a group of investors have asked a New York federal court for $151 million in fees for their work in an antitrust lawsuit brought by their clients alleging that a group of financial firms manipulated global swaps and options benchmark ISDAfix.

  • October 1, 2018

    Supreme Court Passes On Review Of Walmart Derivative Suit

    The U.S. Supreme Court on Monday denied a petition to review a derivative shareholder suit against the directors of Walmart Inc. that was originally tossed by Delaware’s Chancery Court because its claims were already dismissed in an earlier-filed suit in Arkansas.

  • October 1, 2018

    Scammer Get Your Gun: Court To Let Securities Felon Carry

    A Washington, D.C., federal judge appears to have become the first jurist to find that people convicted of securities fraud and bookkeeping violations are exempt from a law prohibiting felons from owning guns, rejecting a bid by the U.S. Department of Justice to dismiss a former CEO's Second Amendment suit on Friday.

  • October 1, 2018

    GOP Reps Push Fed To Free Some Banks From SIFI Regs

    As top federal banking officials head to Capitol Hill on Tuesday to testify on their progress in implementing this spring’s package of bank rule rollbacks, a group of nearly 30 House Republicans has urged the Federal Reserve to stop regulating banks of a certain size as systemically important financial institutions.

  • October 1, 2018

    Restoration Hardware Investors Win Cert. In Stock-Drop Suit

    Investors won class certification Monday in their suit claiming Restoration Hardware misrepresented its luxury home collection's success, with a California federal judge saying that if the case didn't satisfy classwide damages requirements, she wasn't sure what would.

  • October 1, 2018

    Investment Adviser Gets 6.5 Years For $1.6M Ponzi Scheme

    A federal judge on Monday sentenced a New Jersey man who pled guilty to running a Ponzi scheme that bilked $1.6 million from his clients to support his luxury lifestyle to six and a half years in prison.

  • October 1, 2018

    Musk Twitter Gaffe Shows Need For Stronger Board Oversight

    Tesla Inc. CEO Elon Musk and his company’s settlement with the U.S. Securities and Exchange Commission to resolve accusations that Musk made misleading tweets regarding his plans to take Tesla private shows the need for company boards to enact stringent disclosure policies across all communications channels, according to legal experts.

  • October 1, 2018

    3 Big Banks Can't Dodge Enron Debt Investor Suit

    A New York federal judge has ruled that Credit Suisse, Deutsche Bank and Merrill Lynch must go to trial over many of the claims brought against them by a group of investment funds seeking to hold them responsible for losses stemming from Enron Corp.’s 2001 collapse.

  • October 1, 2018

    Ex-Life Partners Atty, CEO Ordered To Pay $7M In Fines

    A Texas federal judge on Friday adopted the bulk of a magistrate judge’s recommendation as to penalties for two former insiders of bankrupt life settlement trader Life Partners Holdings Inc., saying that nearly $7 million in individual punishments is appropriate.

  • October 1, 2018

    Lion Biotech Strikes $3.3M Deal In Stock-Drop Suit

    A proposed investor class told a California federal court on Friday that it has inked a $3.25 million settlement with Lion Biotechnologies Inc. to resolve allegations that the company artificially inflated its stock price by secretly commissioning news stories.

  • October 1, 2018

    KBR Board Escapes Derivative Suit Over Financial Reporting

    A Delaware federal judge on Sunday dismissed a shareholder derivative suit that accused KBR Inc.'s board of directors of faltering in its oversight of the company’s financial reporting, saying the complaint did not adequately allege that the directors disregarded “red flags” about problems with KBR's internal controls.

  • October 1, 2018

    CFTC Chief Aims To Alter Agency’s Cross-Border Swap Role

    The head of the Commodity Futures Trading Commission on Monday unveiled a plan to overhaul the agency's role in reviewing cross-border swaps, proposing a new system that would hand more control over to "competent" regulators outside the U.S. with comparable regulatory frameworks.

  • October 1, 2018

    Investors Can't Prove Cybersecurity Firm Fraud, Judge Says

    An Illinois federal judge has tossed a proposed class action from investors who accused a cybersecurity company of propping up its stock with inflated sales forecasts before executives cashed out and left shareholders suffering.

Expert Analysis

  • How Delaware Courts Are Approaching Appraisal Valuation

    Michael O'Bryan

    The Delaware Supreme Court has eschewed bright-line tests for determining the value of a company in an appraisal. Two recent Delaware Chancery Court decisions illustrate the ways that the courts are determining appraisal valuation in light of this guidance, say Michael O'Bryan and James Beha of Morrison & Foerster LLP.

  • New Pass-Through Deduction Will Pass Over Many Lawyers

    Evan Morgan

    A few weeks ago, the IRS proposed regulations related to the Tax Cuts and Jobs Act's 20 percent deduction on qualified business income for pass-through entities. The guidance offers long-awaited clarity, but is mostly bad news for many law firms, says Evan Morgan of Kaufman Rossin PA.

  • How Reckless Judicial Impeachments Threaten Rule Of Law

    Jan van Zyl Smit

    Judicial impeachment fever seems to be spreading through the states, with West Virginia legislators recently voting to remove their state's entire Supreme Court, and lawmakers in Pennsylvania and North Carolina threatening the same. These actions are a serious threat to judicial independence, says Jan van Zyl Smit of the Bingham Centre for the Rule of Law.

  • Series

    Judging A Book: Fogel Reviews 'Good Judgment'

    Judge Jeremy Fogel

    In this time of partisan conflict over judicial selection, a new book by Canadian jurist Robert J. Sharpe —​ "Good Judgment" — represents a refreshing, deeply thoughtful departure from binary arguments about how and why judges make decisions, says U.S. District Judge Jeremy Fogel, director of the Federal Judicial Center.

  • A Look At SEC Enforcement Against Unregistered Finders

    Joe Edmondson

    In recent years, there has been an increased interest from the U.S. Securities and Exchange Commission in enforcing Section 15(a)(1) against unregistered finders and other solicitors in private placement offerings. These violations are easy to prove, especially since no culpable state of mind is required, says Joe Edmondson of Foley & Lardner LLP.

  • 10 Ways To Prevent E-Discovery Woes

    Debbie Reynolds

    E-discovery is not easy, but employing these 10 strategies may help minimize future headaches, say Debbie Reynolds and Daryl Gardner of EimerStahl Discovery Solutions LLC.

  • 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.