The U.S. Commodity Futures Trading Commission said Wednesday that a Steptoe & Johnson LLP partner has been appointed to serve as director of the agency's Division of Swap Dealer and Intermediary Oversight.
A Manhattan judge was set on Thursday to order a default judgment against a former broker for subjecting unsophisticated clients to risky trades and spending client money on bar tabs, after the New York man sent a “rude and inappropriate” email to the U.S. Securities and Exchange Commission and skipped court.
The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.
Altor Bioscience Corp. shareholders challenging the merger with billionaire physician Patrick Soon-Shiong's NantCell Inc., purportedly valued at nearly $300 million, pushed the Delaware Chancery Court on Wednesday for a mootness fee award as the case remains running, arguing they've so far garnered valuable supplemental disclosures from the company.
The Internal Revenue Service announced Thursday it will issue rulings on tax questions regarding a corporation’s stock distributions under a section of the Internal Revenue Code that allows for tax-free distributions to shareholders in certain circumstances.
The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.
MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.
The Second Circuit on Thursday ordered the $6.2 million restitution that Duane Reade Inc.’s former CEO must pay in connection with his 2010 fraud conviction to be pared down, saying he doesn’t have to pay for legal fees billed by Duane Reade counsel Paul Weiss Rifkind Wharton & Garrison LLP and Cooley LLP for monitoring the criminal trial.
Swedish telecommunications giant Telia Co. AB on Thursday pled guilty in a New York federal court on behalf of a subsidiary to paying massive bribes to government officials in Uzbekistan to enter the market there as part of a worldwide deal that will cost Telia nearly $1 billion.
A Pennsylvania federal judge on Wednesday signed off on a $30 million settlement between payday lender DFC Global and a class of institutional investors who alleged that it violated securities laws by misrepresenting its financial health and quality of lending practices.
Sheppard Mullin Richter & Hampton LLP added a partner from Manatt Phelps & Phillips LLP with expertise in financial services to its corporate practice group in San Francisco this week.
The U.S. Commodity Futures Trading Commission sued a Brooklyn computer programmer on Thursday in Manhattan federal court for allegedly stealing $600,000 in bitcoin from dozens of investors in his company and claiming that he had been hacked in an effort to cover it up.
An Illinois federal judge refused Wednesday to grant a new trial for a Nebraska-based commodities pool operator found liable for fraud by a jury, and granted a highly dialed-back version of the monetary punishment requested by the Commodity Futures Trading Commission.
Brooklyn federal prosecutors pushed back Wednesday against a request by Martin Shkreli to get his hands on his $5 million bail following the controversial former pharmaceutical executive’s remand to custody, saying the funds should be held to satisfy potential financial penalties he faces at sentencing.
Caught short by a parent company’s failure to complete a $200 million post-confirmation Chapter 11 investment, Optima Specialty Steel Inc. on Wednesday launched a modified reorganization plan that erases the corporate parent’s equity.
A July government watchdog report warned the U.S. Securities and Exchange Commission that it had not fully put in place a system for monitoring cyber intrusions on its financial systems, even as the hack of a key electronic filing system for public company disclosures, which was revealed Wednesday, may have enabled insider trading.
The U.S. Securities and Exchange Commission’s electronic filing system for public company disclosures was hacked last year, and the agency last month learned that the cyber-intruders may have traded off the nonpublic information that was exposed, agency Chairman Jay Clayton said in a statement Wednesday night.
A New York federal judge dismissed a proposed shareholder class action against Eaton Corp. PLC on Wednesday, saying company officials didn’t defraud shareholders about their desire or ability to sell a major business unit in the wake of a controversial merger that moved its HQ to low-tax Ireland.
Keurig Green Mountain Inc. has urged a Vermont federal court to grant it and its former top officers a quick win in a securities class action that accuses them of misleading the market with a "false growth story," telling the court that the investors behind the suit can't connect their allegations to the losses they claim to have suffered.
The U.S. Securities and Exchange Commission on Tuesday pushed its fraud case against a former Washington, D.C., lawyer accused of helping with her brother’s $14.5 million Ponzi scheme, telling a Massachusetts federal court that her “attempt to minimize her conduct falls flat.”
Financial Crisis Anniversary
The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.
Financial Crisis Anniversary
Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.
The Second Circuit's recent Martoma decision potentially expands the category of persons that, upon the disclosure of confidential information without pecuniary or tangible benefit, may constitute tippers or tippees subject to insider trading liability, say attorneys with Cadwalader Wickersham & Taft LLP.
Insider trading allegations have surfaced at Equifax, where three executives sold nearly $2 million in shares of the company’s stock days after the cyberattack was discovered but before the news was announced. The situation raises a number of fundamental questions about Equifax’s insider trading policy, say Gary Tygesson and Cam Hoang of Dorsey & Whitney LLP.
The Private Securities Litigation Reform Act protects “forward-looking statements,” but what if a prediction is presented with, and based upon, statements of current fact? New opinions from the Ninth Circuit suggest that such juxtaposing has become risky, say Nathaniel Cartmell III and Bruce Ericson of Pillsbury Winthrop Shaw Pittman LLP.
Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.
The Equifax breach could trigger a shift in data breach class actions from potential harm to consumers to potential harm to businesses, says Eduard Goodman, chief privacy officer at CyberScout LLC.
The increasing attention to Libor's phaseout is sending a strong signal to derivatives markets and derivatives market participants to prepare for this major financial change. The phaseout will also raise intriguing regulatory issues, say attorneys with Skadden Arps Slate Meagher & Flom LLP.
The M&A litigation landscape was dramatically altered by the Delaware Chancery Court’s 2016 decision in Trulia. Here, Dan Toal and Geoff Chepiga of Paul Weiss Rifkind Wharton & Garrison LLP discuss the evolving impact of the case and what companies can expect when facing stockholder challenges.
Recent decisions in Reyher v. Grant Thornton and Boyle v. Evolve Bank indicate that courts are not persuaded by whistleblowers' arguments that defendants or their publicly traded clients are generally covered by the Dodd-Frank Act, says Harini Srinivasan of Katz Marshall & Banks LLP.