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Securities

  • October 18, 2018

    Bitcoin Trader, CEO Ordered To Pay $2.5M For Ponzi Scheme

    Bitcoin trading outfit Gelfman Blueprint Inc. and its CEO Nicholas Gelfman have been ordered to pay nearly $2.5 million in restitution after stealing more than $600,000 from roughly 80 customers, in the first anti-fraud case involving bitcoin brought by the Commodity Futures Trading Commission.

  • October 18, 2018

    Proposed Volcker Rule Definition Change A No-Go, Banks Say

    Federal financial regulators are getting an earful about their proposal to revamp the trading account definition under the so-called Volcker rule, with industry players saying the change could actually make things worse for banks.  

  • October 18, 2018

    Last Tippee In $5M BofA Insider Trading Ring Takes Plea Deal

    A former Morgan Stanley vice president accused of trading on tips that came from a Bank of America technology consultant pled guilty to securities fraud conspiracy in Manhattan federal court on Thursday, making him the last of seven defendants in a $5 million insider trading ring to do so.

  • October 18, 2018

    Fund Takes 2nd Stab At Uber Fraud, Illicit Biz Practices Suit

    A Texas-based retirement fund took another stab at a proposed California class action alleging Uber Technologies Inc. and its ex-CEO Travis Kalanick's illicit business tactics, corporate bullying, institutionalized harassment and rampant flouting of the law cost investors billions.

  • October 18, 2018

    Freight Co., DOL Ink $2.5 Deal In Stock Transaction Suit

    The trustee of an Ohio freight company's employee stock ownership plan and his company agreed to a nearly $2.5 million judgment to settle the U.S. Department of Labor's claims they cost the plan $6 million through fiduciary breaches, according to filings in federal court.

  • October 18, 2018

    SEC Accuses Immigration Atty Of $10M EB-5 Fraud Scheme

    Federal securities authorities filed a civil complaint in California federal court Thursday accusing an immigration attorney and her husband of fraudulently making millions of dollars through a federal immigrant investor program.

  • October 18, 2018

    NY Trial Set To Determine Owner Of Contested Crypto Platform

    A business developer accused of sneaking her name onto corporate paperwork to steal control of a budding peer-to-peer cryptocurrency platform agreed Thursday to an expedited Nov. 5 trial in Manhattan to determine whether she rightfully owns the platform.

  • October 18, 2018

    Battle Brews Over Atty's Admission In Woodbridge Ch. 11

    A battle is brewing in the litigation over The Woodbridge Group of Companies’ Chapter 11 plan concerning the pro hac vice admission in Delaware of an attorney representing a group of noteholders who oppose the plan, as unsecured creditors claim he violated ethical rules by not properly disclosing conflicts that exist among his clients. 

  • October 18, 2018

    Oaktree Says Financial Docs Are Privileged In Fraud Suit

    Oaktree Capital Management is fighting a production request from defendants in its California security fraud suit against private equity company Warburg Pincus for communications between a noteholder committee in the Rural/Metro bankruptcy and its financial adviser, claiming attorney-client privilege.

  • October 18, 2018

    Nine West Files Amended Ch. 11 Plan With $105M Settlement

    Nine West Holdings Inc. has filed a revised Chapter 11 plan with a New York bankruptcy court that includes a $105 million settlement with company owner Sycamore Partners, releasing the latter of claims that it stripped Nine West’s assets and sent the company into bankruptcy.

  • October 18, 2018

    Facebook Seeks To Duck Suit Claiming It Inflated Ad Stats

    Facebook urged a California federal judge on Wednesday to toss an aromatherapy business owner’s putative class action alleging the social media giant bolsters its advertising revenue by inflating the potential reach of demographic figures provided to its clients, saying it expressly told advertisers the figures might not align with third-party calculations.

  • October 18, 2018

    Noble Group Seeks US Protection During $3.5B Restructuring

    Global commodity trader Noble Group Ltd. is asking a New York bankruptcy court to shield its U.S. assets while its plan to restructure $3.5 billion in debt works its way through English courts.

  • October 18, 2018

    Toshiba Tells High Court Stock-Drop Suit Doesn't Belong In US

    Japan's Toshiba Corp. has asked the U.S. Supreme Court to review the Ninth Circuit's revival of a proposed class action alleging misstatements made in the company’s home country caused the price of American depositary shares to fall, saying the supposed misconduct occurred entirely in the Asian country.

  • October 18, 2018

    Necco Trustee Says Director Suit Should Stay In Fed. Court

    The Chapter 11 trustee of bankrupt candy maker New England Confectionery Co. Inc. told a Massachusetts federal judge Thursday that his suit accusing the debtor’s directors and officers of prepetition breaches of fiduciary duty shouldn’t be moved to bankruptcy court because it isn’t a core proceeding to the Chapter 11 case.

  • October 18, 2018

    Fidelity's Foray Into Bitcoin Likely To Boost Crypto Appeal

    Fidelity Investments’ plans to form a stand-alone company that will enable hedge funds and other professional investors to store and trade cryptocurrencies like bitcoin could potentially pave the way for more institutional investment into the fledgling asset class.

  • October 18, 2018

    Fintech Cops Urged To Play Nice, But Sandbox Is A Hard Sell

    A recent Treasury Department report proposed a host of ideas for boosting development in America's financial technology sector and keeping it globally competitive, including a "sandbox" for experimenting with new products and services, but experts say a morass of regulatory agencies makes building such a playground difficult in the U.S.

  • October 18, 2018

    Miramar Finalizes Settlement Over Sientra Merger Suit

    Shareholders of medical technology firm Miramar Labs Inc. and eight of the company’s shareholders filed a stipulation of settlement Thursday in Delaware Chancery Court that calls for $118,500 in plaintiff attorneys' fees and expenses in a $410,000 settlement that seeks to bring an end to the investors’ suit over a $20 million merger with Sientra Inc. in 2017.

  • October 18, 2018

    Canadian Securities Watchdog Reveals Market Protection Plan

    The Canadian Securities Administrators on Thursday published a notice informing market participants about its method for handling a market disruption to Canadian capital markets, including instances related to a large-scale cybersecurity incident.

  • October 18, 2018

    Investor Sues Online Seller CafePress Over Snapfish Merger

    An investor in CafePress, an online retailer selling customized products, filed a proposed class action Wednesday in Delaware federal court alleging the company misled and ultimately may have shortchanged stockholders leading up to its recommended merger with online printing giant Snapfish.

  • October 18, 2018

    Timber Co. Receiver Seeks Injunction For Ponzi Recruiters

    The receiver for a purported timber company that actually acted as a Ponzi scheme asked a Mississippi federal judge on Wednesday for an injunction restraining two of the scheme's primary investment recruiters from burning through millions of dollars that should be used to repay victims.

Expert Analysis

  • What Akorn Teaches Us About Delaware MAC Clauses

    David Leinwand

    Until Vice Chancellor J. Travis Laster’s decision this month in Akorn v. Fresenius, no Delaware court had released a buyer from its obligation to close a transaction as a result of a material adverse effect or change. But we expect the conventional wisdom to continue to hold true — that it is extremely difficult for an acquirer to establish the occurrence of a MAC, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Deducting SEC Disgorgement In A Post-Kokesh World

    Pamela Johnston

    The U.S. Supreme Court's ruling last year in Kokesh has an unintended consequence — the IRS and state taxing authorities have been applying the decision to challenge deductions for disgorgement paid as a result of U.S. Securities and Exchange Commission settlements. However, a settling party can still qualify for a deduction, say attorneys with Foley & Lardner LLP.

  • Opinion

    The Supreme Court Should Become Boring

    Alexander Klein

    In the aftermath of Justice Brett Kavanaugh's confirmation, the U.S. Supreme Court should decline review of the nation's most polarizing political questions unless and until the questions become time-sensitive, says Alexander Klein, head of the commercial litigation group at Barket Epstein Kearon Aldea & LoTurco LLP.

  • Q&A

    Back To School: BC's Kent Greenfield Talks Corporate Law

    Kent Greenfield

    In this series featuring law school luminaries, Boston College Law School professor Kent Greenfield reflects on his corporate law theories, his legal battle with the Pentagon over free speech and gay rights, and important constitutional law issues to watch out for.

  • Investment Firms, Beware Changing Compliance Goal Posts

    Bart Schwartz

    Private equity and hedge funds are under greater compliance scrutiny and, as a result, increased regulatory and legal exposure. The responsibilities of board members are not limited to investment performance monitoring — regulators are moving up the corporate ladder to identify wrongdoing, says Bart Schwartz of Guidepost Solutions LLC.

  • The Rise In ESG Investing — And What Boards Can Do

    Peter Atkins

    Public companies are being bombarded with messages, requests and demands around environmental, social and governance matters. At least for companies incorporated in states such as Delaware, directors should consider whether there is a nexus between ESG issues and the pursuit of shareholder welfare, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • Inside The Petrobras FCPA Resolution

    Gayle Littleton

    The Operation Car Wash investigation that began in 2008 brought down numerous Brazilian politicians and Petrobras officials and led to one of the largest Foreign Corrupt Practices Act settlements last month. The resolution highlights the myriad ways in which Petrobras failed to implement a robust anti-corruption compliance program, say attorneys with Jenner & Block LLP.

  • 10 Questions The SEC Will Probably Ask Google: Part 2

    John Reed Stark

    Google reportedly opted not to disclose a cybersecurity vulnerability this past spring due to fears of drawing regulatory scrutiny and causing reputational damage. This fact will be a lightning rod for SEC enforcement attention, says John Reed Stark, former chief of the SEC's Office of Internet Enforcement.

  • Kavanaugh Cannot Be Compelled To Recuse Himself

    Donald Scarinci

    Whether Justice Brett Kavanaugh’s prior statements may be grounds for disqualification when it comes to judging certain cases is debatable, but there are no specific recusal guidelines for the U.S. Supreme Court. The justices themselves don’t even agree on where to draw the line when it comes to perceived political bias, says Donald Scarinci, a founding partner of Scarinci Hollenbeck LLC.

  • 10 Questions The SEC Will Probably Ask Google: Part 1

    John Reed Stark

    With the announcement this week that a previously undisclosed software bug potentially exposed up to 500,000 Google+ users' personal data, Google has a problem. And the U.S. Securities and Exchange Commission is probably investigating, says John Reed Stark, former chief of the SEC's Office of Internet Enforcement.