Securities

  • August 27, 2024

    Colo. Co. Deprived Analyst Of $58M Stock Deal, Judge Rules

    An Illinois federal judge has found that a Wall Street analyst and investor suffered damages worth nearly $58 million when a Colorado company and its president failed to compensate him with millions of shares as part of a consulting agreement.

  • August 27, 2024

    2nd Circ. Urged To Reject Preemption Defense In BofA Row

    The Second Circuit should join fellow federal courts in finding that a New York statute requiring all banks to pay at least 2% interest on mortgage-escrow accounts isn't preempted, a former Bank of America mortgage customer has told the appeals court following the U.S. Supreme Court's remand of the matter.

  • August 27, 2024

    Clark Hill Adds Atty In NYC From Schoeman Updike

    Clark Hill PLC said Tuesday that it is bringing a litigator to its New York City office as a member, one with a focus on financial services and business disputes as well as experience ranging from intellectual property to real estate issues.

  • August 27, 2024

    NFL Union Sues DraftKings Over Broken NFT Licensing Deal

    The NFL Players Association has accused DraftKings Inc. of failing to make good on a licensing agreement when the online sportsbook decided to cease payments after shuttering its nonfungible token marketplace in the wake of a civil suit that argued DraftKings' NFTs offended securities laws.

  • August 27, 2024

    SEC Says Adviser Touted AI Project, Phony IPO To Fleece $6M

    The U.S. Securities and Exchange is accusing a China-based asset management firm of absconding with $6 million in client funds after making a rash of false claims about investing the money with the aid of artificial intelligence and after attempting to drum up interest in an initial public offering that never materialized.

  • August 27, 2024

    New Jersey Man Gets 3 Years In Prison For Forex Fraud

    A New Jersey man deemed a "modern day snake oil salesman" by Philadelphia's top federal prosecutor has been sentenced to just over three years in prison for defrauding hundreds of investors out of more than $500,000.

  • August 27, 2024

    Treasury Asked To Scrap Stock Buyback Tax's Funding Rule

    Business groups urged the U.S. Treasury Department on Tuesday to remove what's known as the funding rule in forthcoming final regulations on the stock buyback tax, saying the provision would go beyond Congress' intentions for the levy, which aims to deter companies from giving outsize rewards to shareholders.

  • August 27, 2024

    Nasdaq Seeks SEC's Green Light To Launch Bitcoin Options

    The Nasdaq stock exchange said Tuesday it is seeking regulatory approval to allow the listing of an options tool that tracks the price of bitcoin, a move designed to expand institutional and retail trading of cryptocurrency-related assets.

  • August 27, 2024

    Wells Fargo Seeks To Scrap Ex-Worker's $22M ADA Verdict

    Wells Fargo urged a North Carolina federal court to upend a jury's $22.1 million verdict in favor of a former investment director who alleged he was laid off so the company wouldn't have to accommodate his paralyzed colon and bladder, arguing the evidence presented doesn't support jurors' conclusions.

  • August 27, 2024

    Colo. Startup Founder Disbarred For Conflicts, Dishonesty

    A Denver attorney who co-founded and provided legal services for a publicly traded software startup has been disbarred in Colorado for widespread misconduct including failing to inform the company that he issued stock in excess of what had been authorized, practicing law with a suspended license, and conversion of thousands of dollars in corporate funds.

  • August 27, 2024

    New Cigna CLO Vows To Help Co. Navigate 'Dynamic' Industry

    Cigna has promoted one of its in-house lawyers, who has spent her in-house and private practice career in the healthcare space, to chief legal officer, according to a LinkedIn post.

  • August 27, 2024

    Winston & Strawn Hires Morgan Lewis Healthcare Partner

    An attorney specializing in healthcare law recently moved to Winston & Strawn LLP's Houston office after practicing for nearly five years at Morgan Lewis & Bockius LLP.

  • August 27, 2024

    Global Payments' $3.6M Deal Gets Initial OK

    A Georgia federal judge has given preliminary approval to a $3.6 million deal between Atlanta-based Global Payments Inc. and investors who allege a subsidiary of the payment tech company "tricked" consumers into signing up for a program that had undisclosed fees.

  • August 27, 2024

    Gusrae Kaplan Says Suit Over 'Frivolous' Filing Rightly Tossed

    Gusrae Kaplan Nusbaum PLLC is urging the Delaware Supreme Court to affirm the dismissal of an Applied Energetics complaint alleging the firm and a former partner filed a frivolous securities fraud suit in order to hobble other litigation against a former CEO, accusing the laser-weapons maker of making "fanciful" arguments in its appeal.

  • August 26, 2024

    SEC Inks $946K Settlement In Unregistered Broker Case

    A trust and its co-owners have agreed to pay the U.S. Securities and Exchange Commission civil penalties totaling $946,000 to resolve allegations they operated as unregistered broker-dealers when helping to facilitate more than $1.2 billion in securities transactions by penny stock issuers. 

  • August 26, 2024

    SEC Fines Sound Point $1.8M Over Nonpublic Info Oversight

    The U.S. Securities and Exchange Commission announced Monday that private fund adviser Sound Point Capital Management LP will pay $1.8 million to settle charges that it failed to prevent the misuse of nonpublic information in certain collateralized loan trades.

  • August 26, 2024

    Zillow Investors Gain Class Cert. In Suit Over Home-Flipping

    A Washington federal judge has certified a proposed class of investors suing Zillow, alleging they were misled about the performance of the real estate marketplace's home-flipping program, and has appointed two firms as lead and local counsel.

  • August 26, 2024

    'Jarkesy 2.0': SEC Sees New Attack On In-House Courts

    A new lawsuit calling into question the U.S. Securities and Exchange Commission's ability to boot alleged lawbreakers from the securities industry follows a long line of attacks on the regulator's use of its in-house courts, including a recent U.S. Supreme Court ruling that limited the SEC's ability to litigate fraud cases via administrative proceedings.

  • August 26, 2024

    BNY To Pay $5M CFTC Fine Over Swap Reporting Issues

    The Commodity Futures Trading Commission and the Bank of New York Mellon reached a $5 million deal on Monday to resolve claims that the bank repeatedly failed to correctly report millions of swap transactions to a registered swap data repository and failed to properly supervise its swap dealer business.

  • August 26, 2024

    EV Maker Contests Del. Bid To Stall Stock Drop Suit In Calif.

    Counsel for electric-vehicle manufacturer Mullen, which is now tangled in a derivative lawsuit seeking damages in Delaware's Chancery Court, have pointed the court to a proposed $7.25 million settlement in an earlier-filed derivative case in California federal court to support the company's bid to stay the Delaware action.

  • August 26, 2024

    Funds Say Norfolk Southern Can't Ditch Derailment Fraud Suit

    Pension funds have told a Georgia federal judge that they've laid out in exacting detail their allegations that Norfolk Southern eroded safety standards by embarking on risky cost-cutting moves and slashing its workforce, culminating in last year's fiery derailment in East Palestine, Ohio, and ultimately backfiring on investors.

  • August 26, 2024

    US Trustee Raises Release Concerns With FTX Ch. 11 Plan

    The U.S. Trustee's Office has lodged an objection to FTX's Chapter 11 plan with 10 reasons why the proposed resolution for the mammoth crypto bankruptcy is flawed, including releases that are overbroad and don't carve out a high-profile data breach from their terms.

  • August 26, 2024

    11th Circ. Won't Revive JPMorgan Chase Whistleblower Suit

    The Eleventh Circuit on Monday refused to revive a whistleblower suit against JPMorgan Chase Bank NA for allegedly forging mortgage loan documents and submitting false reimbursement claims to Fannie Mae and Freddie Mac, finding the allegations had already been publicized prior to the lawsuit.

  • August 26, 2024

    SEC Claims Crypto Bros. Raised Millions With Lies

    The SEC on Monday filed suit against two brothers in Georgia federal court, claiming they ran a Ponzi scheme under the guise of a crypto asset lending pool and misspent millions of dollars of investors' money, including on vehicle purchases and a penthouse condo in Miami.

  • August 26, 2024

    Crypto Lender Abra Settles SEC's Unregistered Securities Suit

    The U.S. Securities and Exchange Commission announced Monday that it's settled with the business entity behind crypto lending platform Abra over alleged failures to register its lending product.

Expert Analysis

  • Deciphering SEC Disgorgement 4 Years After Liu

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    Since the U.S. Supreme Court’s 2020 decision in Liu v. U.S. Securities and Exchange Commission to preserve SEC disgorgement with limits, courts have continued to rule largely in the agency’s favor, but a recent circuit split over the National Defense Authorization Act's import may create hurdles for the SEC, say attorneys at Ropes & Gray.

  • Updates To CFTC Large Trader Report Rules Leave Questions

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    The U.S. Commodity Futures Trading Commission's updated large trader position reporting rules for futures and options is a much-needed change that modernizes a rule that had gone largely untouched since the 1980s, but the updates leave important questions unanswered, say Katherine Cooper and Maggie DePoy at BCLP.

  • Risks And Promises Of AI In The Financial Services Industry

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    Generative artificial intelligence has immense potential to revolutionize the financial services industry, but firms considering its use should first prepare to show their customers and the increasingly divided international regulatory community that they can manage the risks inherent to the new technology, say attorneys at Gibson Dunn.

  • Series

    Playing Chess Makes Me A Better Lawyer

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    There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.

  • Beware Shifting Provisions In Middle-Market Loan Documents

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    In recent years, many credit facility provisions previously considered to be market standard have been negotiated, often turning in favor of borrowers, demanding renewed diligence from workout officers and restructuring counsel operating in the middle market, say attorneys at Crowell & Moring.

  • How SEC Could Tackle AI Regulations On Brokers, Advisers

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    The U.S. Securities and Exchange Commission held an open meeting of its Investor Advisory Committee on June 6 to review the use of artificial intelligence in investment decision making, showing that regulators are being careful not to stifle innovation or implement rules that will quickly be made irrelevant after their passage, says Brian Korn at Manatt Phelps.

  • Litigation Inspiration: Attys Can Be Heroic Like Olympians

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    Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.

  • A Deep Dive Into The Evolving World Of ESG Ratings

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    Attorneys at Mintz discuss the salience of environmental, social and governance ratings in corporate circles in recent years, and consider certain methodologies underlying their calculation for professionals, as well as issues concerning the ESG ratings and products themselves.

  • What TikTok's Race Against The Clock Teaches Chinese Firms

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    The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.

  • Lean Into The 'Great Restoration' To Retain Legal Talent

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    As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.

  • What The NYSE Proposed Delisting Rule Could Mean For Cos.

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    The New York Stock Exchange's recently proposed rule would provide the exchange with discretionary authority to commence delisting proceedings for a company substantially shifting its primary business focus, raising concerns for NYSE-listed companies over the exact definition of the exchange's proposed "substantially different" standard, say attorneys at Winston & Strawn.

  • 9th Circ. Ruling Broadens Sweep Of Securities 'Solicitation'

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    The Ninth Circuit's recent revival of a putative securities fraud class action against Genius Brands for hiring a stock promoter to write favorable articles about it shows that companies should view "solicitation" broadly in considering whether they may have paid someone to urge an investor to purchase a security, say attorneys at Simpson Thacher.

  • Boeing Saga Underscores Need For Ethical Corporate Culture

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    In the wake of recent allegations about Boeing’s safety culture, and amid the U.S. Department of Justice’s new whistleblower incentives, business leaders should reinvigorate their emphasis on compliance by making clear that long-term profitability requires ethical business practices, says Maxwell Carr-Howard at Dentons.

  • Key Takeaways From 2024 Accountants' Liability Conference

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    At the recent annual Accountants' Liability Conference, regulators provided important commentary on new Public Company Accounting Oversight Board rulemaking and standard-setting initiatives, and emphasized regulatory priorities ranging from the tone at the top to alternative practice structures, say attorneys at Arnold & Porter.

  • A Closer Look At Feds' Proposed Banker Compensation Rule

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    A recently proposed rule to limit financial institutions' ability to award incentive-based compensation for risk-taking may progress through the rulemaking process slowly due to the sheer number of regulators collaborating on the rule and the number of issues under consideration, say attorneys at Troutman Pepper.

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