Securities

  • January 8, 2018

    SEC Wants $1M Judgment For Chemical Co. Exec's Fraud

    The U.S. Securities and Exchange Commission urged an Ohio federal court on Monday to assess the most severe level of civil penalty against the former president of a now-bankrupt chemical company, accused of defrauding dozens of investors with at least $12 million in phony promissory notes.

  • January 8, 2018

    Defrauded Investors Must Arbitrate Under FINRA: 6th Circ.

    The Sixth Circuit on Monday affirmed a district court’s decision that a brokerage firm must engage in a Financial Industry Regulatory Authority arbitration with a couple that was persuaded to invest hundreds of thousands of dollars in low-quality investments, saying the investments in question happened in the context of the couple’s customer relationship with the firm.

  • January 8, 2018

    Bob Evans Investor Wants To Investigate $1.5B Sale To Post

    An investor in Bob Evans Farms Inc. launched a books and records demand in the Delaware Chancery Court on Monday, looking to investigate the proposed $1.5 billion sale of its packaged food and food-service lines to cereal giant Post on suspicion that directors may have fiddled with financial projections.

  • January 8, 2018

    IT Firm Chairman Sues To Compel Director Election Meeting

    The chairman of the board and largest shareholder of information technology firm Avande Inc. filed suit Monday in Delaware Chancery Court seeking to compel a meeting of shareholders to replace a director who died unexpectedly last year.

  • January 8, 2018

    Bogus Financial Consultant To Cop To $9.3M Fraud

    A sham North Carolina financial consultant accused of running a Ponzi scheme that cost investors, including some professional athletes, more than $9.3 million has agreed to plead guilty to a securities fraud and tax evasion scheme, according to documents filed on Friday.

  • January 8, 2018

    Simpson Thacher Gets Back Ex-Acting OCC Head As Partner

    Simpson Thacher & Bartlett LLP said Monday that one of its former partners is rejoining the firm after a six-month stint as the temporary head of the Office of the Comptroller of the Currency.

  • January 8, 2018

    High Court Tosses $10M Morgan Stanley Insider Trading Case

    The U.S. Supreme Court on Monday rejected an effort by an auto parts investor to revive a $10 million insider trading suit against Morgan Stanley, handing the bank a final victory in its long-running dispute with a company linked to Russian billionaire Oleg Deripaska.

  • January 8, 2018

    6th Circ. Won't Revive Eaton Workers' ERISA Suit

    A Sixth Circuit panel on Monday affirmed the toss of a proposed ERISA class action against fiduciaries of Eaton Corp.’s employee stock ownership plan, finding it was reasonable for the financial officers to presume that releasing details about the company’s merger with Cooper Industries PLC would have caused more harm than good.

  • January 8, 2018

    Ex-Bankrate Exec To Testify Against CFO, Asks For Leniency

    A former Bankrate Inc. vice president of finance who admitted he schemed to lie about the rate-shopping company’s finances asked a Miami federal judge Friday for leniency, citing his plan to testify against his former boss at an upcoming trial.

  • January 8, 2018

    Seattle Genetics Mounts 3rd Bid To Defeat Stock Fraud Suit

    Cancer-drug maker Seattle Genetics Inc. on Friday asked a Washington federal court for a third time to dismiss a proposed securities fraud class action against it, saying the latest complaint still doesn’t spell out how it supposedly knew it was engaged in wrongdoing.

  • January 8, 2018

    Thompson Hine Atty Fights DQ In $86M Pump-And-Dump Case

    A Thompson & Hine LLP attorney on Friday asked a Brooklyn federal judge to reconsider her disqualification from representing a broker charged with aiding an $86 million pump-and-dump scheme, saying there is no “substantial relationship” between her prior limited representation of a codefendant and the instant case.

  • January 8, 2018

    SEC Suspends Trading Of Hong Kong Blockchain Company

    The Securities and Exchange Commission on Monday temporarily suspended trading of a Hong Kong blockchain firm, citing questions about the accuracy of its disclosures and concerns about an "unusual" spike in trading that coincided with the recent mania over bitcoin.

  • January 8, 2018

    SEC Seeks Final Judgment For Texas Adviser In Fraud Suit

    The U.S. Securities and Exchange Commission on Friday asked a Texas federal court to sign off on a final judgment resolving the agency’s remaining claims against a disgraced investment adviser who admitted to stealing more than $1 million from clients in what prosecutors called a “scam within a scam.”

  • January 8, 2018

    Sentinel Liquidator’s $33M Fraud Suit Against MBF Survives

    Futures brokerage MBF Clearing Corp. failed to convince a Chicago federal judge to dismiss a $33 million fraud case brought by failed investment firm Sentinel Management Corp., with the court saying Friday that MBF’s concern about Sentinel’s change in legal strategy was “overblown.”

  • January 8, 2018

    ESMA Mulls Controls On Margin Moves During Market Stress

    The European Union's securities regulator said Monday it is weighing new rules to moderate margin requirements in securities trading that tend to rise in times of market stress to account for higher risk, as it aims to limit the potential for higher margins to worsen a financial crisis.

  • January 8, 2018

    FCA Fines, Bans Ex-RBS Libor Trader For 'Reckless' Conduct

    The Financial Conduct Authority said Monday it has banned another former interest rate derivatives trader from working in the regulated financial sector and fined him £250,000 ($338,600) for what it called his "reckless” part in manipulation of the London Interbank Offered Rate.

  • January 5, 2018

    2nd Circ. Won't Rethink Barclays Investors' Dark Pool Cert.

    The Second Circuit rejected a petition for en banc review on Friday by Barclays PLC seeking to undo class certification for investors suing the bank over losses tied to the bank’s alleged misrepresentations about oversight of its dark pool market.

  • January 5, 2018

    Zillow Investor Suits Over CFPB Probe Consolidated By Judge

    A Washington federal judge on Friday consolidated two putative class actions against Zillow Group Inc. claiming it withheld damaging information about a Consumer Financial Protection Bureau probe that later caused a stock drop, saying consolidation is proper and the proposed lead counsel is a solid choice.

  • January 5, 2018

    Hoteliers Accused Of Misleading Investors Can't Blame Banks

    Hotel companies sued by disgruntled investors after the hotels failed cannot turn around and allege the properties failed because of racketeering and corruption on the part of the bank that sold the properties to them and the bank's partners, an Illinois federal judge ruled Thursday.

  • January 5, 2018

    SEC's Ponzi Suit Against DC Atty Dumped As 'Thin Gruel'

    A Massachusetts federal judge on Friday tossed the U.S. Securities and Exchange Commission’s suit accusing a Washington, D.C., lawyer and real estate agent of aiding her brother’s $14.5 million Ponzi scheme, ruling the SEC’s evidence of her involvement within the statute of limitations period was “pretty thin gruel.”

Expert Analysis

  • D&O Insurance Coverage Tips For Financial Institutions

    Robert Long

    Directors and officers insurance coverage terms can be particularly important for executives in the heavily regulated financial services industry. Fortunately, in the midst of a very competitive insurance market, new and broader coverage features have appeared, say Robert Long and Nanci Weissgold of Alston & Bird LLP.

  • Series

    40 Years Of FCPA: The Siemens Lesson — Tillerson Is Right

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    Since its whopping $800 million Foreign Corrupt Practices Act settlement in 2008, Siemens cleaned up — and it has “cleaned up” in its long-standing competition with General Electric. How? As Secretary of State Rex Tillerson reportedly told President Donald Trump, you don’t need to pay bribes to succeed in international business, says Peter Y. Solmssen, former general counsel of Siemens.

  • Series

    40 Years Of FCPA: The Rise In International Enforcement

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    The 2008 Siemens matter — then the largest sanction ever imposed in a Foreign Corrupt Practices Act enforcement action — set the stage for future cross-collaboration in global anti-corruption enforcement, say Cheryl Scarboro, former chief of the FCPA Unit at the U.S. Securities and Exchange Commission, and Diana Wielocha of Simpson Thacher & Bartlett LLP.

  • Bringing Cayman Derivative Claims In NY Just Got Easier

    Robert Quirk

    The New York high court’s recent holding in Davis v. Scottish Re Group removes a significant practical hurdle to bringing derivative claims involving Cayman Islands corporations. With the Cayman leave-of-court rule out of the picture, shareholders need not arrive at the courthouse door already equipped with evidence to support their claim, say Rob Quirk and Stephen Younger of Patterson Belknap Webb & Tyler LLP.

  • Why Stock Prices Of Insolvent Firms Can Still Be Positive

    J.B. Heaton

    When Cumulus Media filed for Chapter 11 protection last week, its market capitalization fell to under $3 million, but $3 million is still greater than zero. Was Cumulus solvent when it filed bankruptcy? The answer is almost surely no, and it is important that lawyers have a good understanding of the reasons why, says attorney J.B. Heaton.

  • Navigating Whistleblower Protections Across The Atlantic

    Lynne Bernabei

    Both the Dodd-Frank Act in the U.S. and rules under the Financial Conduct Authority in the U.K. provide whistleblower protections for financial industry employees who report fraud and regulatory breaches. Whereas the specific protections in the U.S. and U.K. differ somewhat, many of the protection mechanisms are remarkably similar, say Lynne Bernabei and Kristen Sinisi of Bernabei & Kabat PLLC.

  • Top 10 Whistleblowing And Retaliation Events Of 2017

    Steven Pearlman

    The past year saw an aggressive approach to whistleblowing and retaliation actions by the plaintiffs bar and the U.S. Securities and Exchange Commission alike. Steven Pearlman and Edward Young of Proskauer Rose LLP examine the most impactful developments of 2017.

  • Series

    40 Years Of FCPA: Highlights From The 1st Corporate Trial

    Robert Feldman

    The Foreign Corrupt Practices Act case of U.S. v. Harris Corp. was tried in March 1991 — so long ago that pretty much only the parties and counsel remember it. With a smile, I’ve just about given up correcting people who say their case is "the only FCPA case ever to be tried,” says Robert Feldman of Quinn Emanuel Urquhart & Sullivan LLP.

  • Compliance Failures And The Resulting Risks For Directors

    Steven Haas

    The Delaware Chancery Court's recent decision in Kandell v. Niv illustrates one of the many potential pitfalls of compliance failures. Directors serving companies in heavily regulated industries should be diligent in trying to understand the regulatory environment, even though they are not expected to be experts in the law, says Steven Haas of Hunton & Williams LLP.

  • SEC Enforcement: Past, Present And Future

    Brian Rubin

    In Dan Brown’s latest best-seller "Origin," he explores where we come from and how we will evolve. The U.S. Securities and Exchange Commission's fiscal 2017 enforcement report is no "Origin," "The Da Vinci Code" or even "Inferno," but the SEC has raised "Origin"-like questions, say Brian Rubin and Gregory Amoroso of Eversheds Sutherland.