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Securities

  • August 20, 2018

    Banco Bradesco Investors Seek Cert. In Bribery Suit

    Two institutional investors asked a New York federal court on Friday to certify a class of shareholders in a suit alleging that Banco Bradesco SA made a series of misstatements to conceal a tax bribery scheme, saying the Brazilian bank’s lies artificially inflated the price of its preferred American depositary shares.

  • August 20, 2018

    Unregistered Brokers Sold Woodbridge Securities, SEC Claims

    The U.S. Securities and Exchange Commission accused five people and four companies Monday with allegedly selling retail investors hundreds of millions of dollars in unregistered securities of the now-bankrupt Woodbridge Group of Companies LLC, which collapsed last year after the SEC charged it with running a $1.2 billion Ponzi scheme.

  • August 20, 2018

    Merrill Lynch Pays SEC $8.9M Over Conflict Of Interest Claims

    The U.S. Securities and Exchange Commission said Monday that Merrill Lynch has agreed to pay nearly $8.9 million to settle claims that it did not disclose a conflict of interest to its customers related to the offering of certain products managed by a third-party investment advisory firm.

  • August 20, 2018

    Sun Capital Pushes Del. Court To Throw Out RICO Suit

    Sun Capital Partners Inc. has asked a Delaware federal judge to toss a Racketeer Influenced and Corrupt Organizations Act suit filed by convenience store operator GPM Investments LLC, arguing the company failed to support its claims the private equity firm engaged in a scheme to pass off $60 million in pension fund liabilities.

  • August 20, 2018

    FINRA Fines Interactive Brokers $5.5 Million For Violations

    The Financial Industry Regulatory Authority has fined Connecticut-based Interactive Brokers LLC $5.5 million for failing to require that short-sale shares be delivered or closed out within legally required time frames and for the supervisory failures that allowed those transgressions to occur, the agency announced on Monday.

  • August 17, 2018

    Chancery Rejects Bid To Unwind $170M Furniture Co. Merger

    A Delaware Chancery judge on Friday sided with directors of furniture company Design Within Reach Inc. and its hedge fund backers at Glenhill Capital Management LP, and rejected investor claims that a roughly $170 million merger with Herman Miller Inc. should be voided because of a quickly fixed mistake.

  • August 17, 2018

    Cooley Adds Ex-Boies Schiller Trial Partner In NY

    Cooley LLP said Thursday that it has hired a former Boies Schiller Flexner LLP trial partner with experience representing financial institutions and sports and entertainment clients in securities and antitrust litigation, as well as in international and domestic arbitrations, bolstering its offerings in New York.

  • August 17, 2018

    US Takes Ex-HSBC Trader's Extradition Win To Top UK Court

    The U.S. is appealing the denial of extradition of a former HSBC foreign exchange trader to the U.K.'s highest court, prosecutors said Thursday, to face charges in New York alleging he and a colleague defrauded bank client Cairn Energy PLC by trading ahead of a $3.5 billion forex deal for the Scottish oil and gas developer.

  • August 17, 2018

    Trump Call For SEC To Study Reporting Rules Sparks Debate

    President Donald Trump on Friday called on the U.S. Securities and Exchange Commission to study ending quarterly reporting requirements for public companies and switch to a six-month system in order to cut costs and spur growth, a major policy shift that experts say would likely be embraced by many businesses but resisted by investors.

  • August 17, 2018

    Investors Must Arbitrate $3.2M Row With Burial-Alternative Co.

    A group of Texas investors who allege they were duped into sinking $3.25 million into a now defunct company that offered an eco-friendly alternative to cremation and burial were ordered by a federal judge on Friday to arbitrate their dispute with the company's Irish CEO.

  • August 17, 2018

    Class Counsel In $2B Forex Deal Awarded $22M In Expenses

    A New York federal judge awarded nearly $22.5 million to an investor class' counsel for litigation expenses incurred in a $2.3 billion settlement resolving claims that 15 banks colluded to rig benchmark exchange rates in the foreign exchange markets.

  • August 17, 2018

    Dutch National Gets 17 Years For $2.5M Investment Schemes

    An Illinois federal judge on Thursday sentenced a Dutch national to 17 years in prison in an international criminal fraud case that saw the man cop to procuring more than $2.5 million through fake investment schemes between 1998 and 2010.

  • August 17, 2018

    Ex-Lannett Execs Face Derivative Suit Over Antitrust Probes

    A shareholder of Lannett Co. Inc. has slapped several former executives at the generic-drug maker with a derivative lawsuit in Pennsylvania federal court, accusing them of orchestrating a damaging price-fixing scheme to artificially inflate the firm’s stock price.

  • August 17, 2018

    Ex-Constellation CEO Says He Is Victim In Stock Fraud Suit

    The ex-CEO of bankrupt Constellation Healthcare Technologies Inc. Thursday asked a New Jersey federal court to dismiss claims he engaged in securities fraud, alleging he is the victim of an investor’s takeover scheme.

  • August 17, 2018

    PG&E Fire Liability Has Calif. Considering Ch. 11 Alternative

    As wildfires again ravage swaths of California forests in what has become a deadly summer ritual, the threat of a Pacific Gas and Electric Co. bankruptcy looms over state lawmakers who are hastily debating how to apportion liability for billions of dollars' worth of damage stemming from last year's infernos.

  • August 17, 2018

    Fraudster's Ex-Wife Gets Email Hunt Paused In Atty Tryst Suit

    An Indiana federal court on Friday temporarily paused discovery for emails sent by the ex-wife of an incarcerated hedge fund manager in his suit claiming that his attorney had an affair with his wife while representing him in his criminal case, but refused to halt discovery all together. 

  • August 17, 2018

    Order Needed Now In Venezuela $1.2B Award Row, Miner Says

    Crystallex International Corp. pressed a Delaware judge to immediately issue an order allowing it to seize shares in Citgo Petroleum Corp. to enforce its $1.2 billion award against Venezuela, while the country's state-owned oil company angled for a pause during its pending appeal.

  • August 17, 2018

    Ex-Katten Atty Gets 18 Months In Prison For Shkreli Fraud

    Former Katten Muchin Rosenman LLP attorney Evan Greebel on Friday was sentenced to 18 months in prison over allegations that he aided now-imprisoned former pharmaceutical executive Martin Shkreli in defrauding Retrophin Inc.

  • August 17, 2018

    Scottrade To Face Mass. Securities Watchdog In State Court

    A Massachusetts federal judge said Thursday that the state securities division’s administrative complaint alleging Scottrade Inc. flouted its own internal impartial standard conduct should not have been removed to federal court, remanding the action to a state administrative court.

  • August 17, 2018

    2nd Circ. Won't Revive Madoff 'Feeder Fund' Class Action

    A three-judge panel of the Second Circuit rejected an effort by investors in two so-called feeder funds that were linked to Bernie Madoff’s fraudulent investment scheme to revive their class action against the funds’ managers, auditors, consultant and administrator, ruling Friday that a lower judge was right to dismiss the case.

Expert Analysis

  • 9th Circ. Criticism Of Judicial Notice Trend Is Significant

    Kevin LaCroix

    The Ninth Circuit's opinion this week in Khoja v. Orexigen Therapeutics makes clear that the court is concerned about the doctrines of judicial notice and incorporation by reference being applied loosely in securities cases. This could result in fewer dismissals, or at least fewer dismissals with prejudice, at the motion to dismiss stage, says Kevin LaCroix of RT ProExec.

  • Alternative Trading Systems Face New Regulatory Burdens

    Julian Rainero

    The U.S. Securities and Exchange Commission last month approved rule changes that would impose extensive new transparency requirements on alternative trading systems that effect transactions in National Market System stocks. Julian Rainero and William Barbera of Schulte Roth & Zabel LLP break down the new disclosure requirements and highlight areas that may prove particularly burdensome.

  • Rebuttal

    Judges Can Demand Diversity In Rule 23(g) Applications

    Kellie Lerner

    A recent Law360 guest op-ed criticized the judge in the Chicago Board Options Exchange antitrust litigation for requesting more diversity in plaintiffs’ lead counsel applications. The author’s argument misinterprets the Federal Rules of Civil Procedure and reinforces archaic misconceptions about women and minorities in the courtroom, say Kellie Lerner and Chelsea Walcker of Robins Kaplan LLP.

  • Distributors Expose Health, Life Sci Cos. To FCPA Risks

    Mimi Yang

    All companies operating abroad should be aware of potential liability under the Foreign Corrupt Practices Act and other anti-corruption laws, but health care and life sciences companies are at greater risk due to the nature of their products and their reliance on third-party distributors in international markets, say attorneys at Ropes & Gray LLP.

  • Interview Essentials For Attorneys On The Move

    Eileen Decker

    Across the country this fall, recent law school graduates, law firm associates and experienced professionals will interview for positions in private practice and government service. Sharing tips on how to stand out in this high-pressure, hypercompetitive process are Eileen Decker, former U.S. attorney for the Central District of California, and Keith Jacoby, co-chairman of Littler Mendelson PC’s class action practice group.

  • Companies Could Face Pressure Over Board Composition

    Arthur Kohn

    Companies should expect that the New York City Comptroller's Office, State Street Global Advisors and others will continue to seek dialogue, engagement and disclosure on diversity and other important social issues. Based on 2018 proxy season results, investors' votes may increasingly become a referendum on social concerns, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • What If The Auto Loan Securitization Market Crashes?

    Albert Fowerbaugh

    With memories of the Great Recession still fresh, fears that the auto loan securitization market is headed for a crash similar to the ill-fated residential mortgage backed securities market are on the rise. Albert Fowerbaugh and Julie Rodriguez Aldort of Butler Rubin Saltarelli & Boyd LLP consider the types of claims that various participants might assert if the market veers off course.

  • Roundup

    Clerking For Ginsburg

    Clerking For Ginsburg

    Justice Ruth Bader Ginsburg joined the U.S. Supreme Court 25 years ago and is not planning to retire anytime soon — she has hired clerks through 2020. What's it like to assist Justice Ginsburg? In this series, former clerks reflect on the experience.

  • 2nd Circ. Adds To Authority On Securities Law Preclusion

    Anthony Antonelli

    With its recent decision in Rayner v. E-Trade Financial — which unanimously affirmed the dismissal of a putative class action asserting state law best execution violations — the Second Circuit made a significant contribution to a collection of circuit court opinions on the Securities Litigation Uniform Standards Act, say attorneys with Paul Hastings LLP.

  • The SEC Thinks Most Tokens Are Securities, For Now

    Robert Rosenblum

    A common misconception in the cryptocurrency community has been the belief that because a token is intended to have utility in the future, it is not a security at the time it is issued. However, based on certain features of the tokens and how they are typically offered, the U.S. Securities and Exchange Commission has concluded otherwise, say attorneys with Wilson Sonsini Goodrich & Rosati PC.