Securities

  • April 23, 2018

    Genetics Co. Hid Cancer Test Overbilling, Investor Says

    Myriad Genetics Inc. and its executives hid from shareholders that it was overbilling Medicare and Medicaid for a hereditary cancer test in a scheme that eventually drew the U.S. Department of Health and Human Services’ ire and caused the company's stock to slump, an investor in a proposed class action said in Utah federal court. 

  • April 23, 2018

    Investors Want Another Shot At Chipotle E. Coli Suit

    Investors on Friday asked a New York federal judge to let them file a third amended complaint alleging that Chipotle sunk its stock price by lying about the details of E. coli outbreaks, saying they have uncovered new information in the weeks since the suit was dismissed.

  • April 23, 2018

    Stanford Ponzi Scheme Receiver, Ex-GC Reach Settlement

    The receiver for victims of the Robert Allen Stanford Ponzi scheme has reached a confidential settlement in a clawback case against Stanford's onetime general counsel, and both parties asked a Texas federal judge Friday to pause the suit to give the attorney time to comply with the agreement.

  • April 20, 2018

    Orphaned By Feds, SEC Judges Find Ally In O'Melveny Advocate

    Administrative law judges at the U.S. Securities and Exchange Commission can no longer count on Solicitor General Noel Francisco to defend them in their upcoming fight before the U.S. Supreme Court, but they may not need him if an attorney invited by the court can convince the justices there was no constitutional foul in the way they were hired.

  • April 20, 2018

    Orbital ATK Ordered To Fork Over Docs In Securities Suit

    A Virginia magistrate judge has given Orbital ATK Inc. until May 1 to produce all of the documents that shareholders accused the company of withholding during discovery for their suit claiming they were misled by Orbital about losses incurred on a $2.3 billion U.S. Army ammunition deal.

  • April 20, 2018

    9th Circ. Splits From Similar Rulings On Tender Offer Suits

    Departing from circuit court rulings in five similar cases, the Ninth Circuit on Friday reversed a lower court's dismissal of a putative securities class action alleging Emulex Corp. concealed that Avago Technologies Ltd.'s $606 million acquisition offer was too low, holding that the investors’ claims require a showing of negligence rather than intentional wrongdoing.

  • April 20, 2018

    Windups, Jury Charge Loom In Wilmington Trust Trial

    Federal prosecutors and defense attorneys shipped 173 pages of jury-instruction proposals Friday to a federal judge hearing a criminal case in Delaware against four Wilmington Trust executives accused of hiding hundreds of millions of dollars in bad loans, with the words “past due” appearing 159 times.

  • April 20, 2018

    Disney Workers Urge 9th Circ. To Revive Valeant ERISA Suit

    Former Walt Disney Co. employees have urged the Ninth Circuit to revive their suit alleging their pension plan trustees breached a fiduciary duty by not monitoring a mutual fund’s investments in now-embattled Valeant, arguing the lower court incorrectly treated their allegations as stock-drop claims.

  • April 20, 2018

    2nd Circ. Affirms SEC’s $26M Win Over Ponzi Schemer

    The Second Circuit on Friday affirmed the lower court’s decision to grant the U.S. Securities and Exchange Commission’s summary judgment bid for a nearly $26 million judgment against convicted Ponzi schemer Francisco Illarramendi, saying the former hedge fund adviser’s claim he was denied the counsel of his choice was unevidenced.

  • April 20, 2018

    Puerto Rico Sales Tax Bond Fight Sparks Muni Market Anxiety

    Municipal bond investors are paying close attention to what happens in a pending court fight over the validity of bondholder liens on Puerto Rican sales tax, experts say, warning of widespread consequences should investments thought to be bankruptcy-proof turn out otherwise.

  • April 20, 2018

    Fitbit Investors' $8.25M Atty Fee Bid 'A Little Rich,' Judge Says

    A California federal judge on Friday approved a $33 million class action settlement resolving allegations that Fitbit Inc. hid problems with its fitness trackers and artificially inflated its stock price, but held off on awarding $8.25 million in attorneys’ fees, saying the amount “might be a little rich for this case.”

  • April 20, 2018

    Health Hires: Goodwin, Shook Hardy, Michael Best, Orrick

    The latest firms to expand their life sciences and health care abilities are Goodwin Procter LLP, Shook Hardy & Bacon LLP, Michael Best & Friedrich LLP, Orrick Herrington & Sutcliffe LLP, Harter Secrest & Emery LLP, Eversheds Sutherland and Cole Schotz PC.

  • April 20, 2018

    Third Person Charged With Fraud In $25M Crypto Card Plot

    Prosecutors charged a third Floridian on Friday in Manhattan federal court with defrauding investors out of more than $25 million using an initial coin offering, saying he and two others falsely touted the ICO as funding a cryptocurrency debit card linked to Visa and Mastercard.

  • April 20, 2018

    Ex-Aveo CFO Denied Quick Win In SEC’s Cancer Drug Suit

    A Massachusetts federal judge on Thursday denied a summary judgment bid from the only former Aveo Pharmaceuticals Inc. executive still fighting the U.S. Securities and Exchange Commission’s claims that the company misled investors about the likelihood of approval for its premier cancer drug.

  • April 20, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen a contract dispute erupt between Russia's Sberbank and a fellow state-controlled bank in Azerbaijan, Greece's Alpha Bank sue more than a dozen Lloyd's syndicates, and underwriters and Lit Securities take on Morgan Stanley.

  • April 20, 2018

    Dean Foods Wants $45M Disgorged By Gambler Billy Walters

    Dairy company Dean Foods Co. wants the disgorgement of nearly $45 million in profits it says prominent gambler Billy Walters earned in an insider trading scheme with the company’s former chair, Tom Davis, from whom Dean is also seeking millions in damages in a Texas state court suit.

  • April 20, 2018

    DeVry Board Must Face Bulk Of Investor's False Ad Claims

    A shareholder's claims against the former DeVry University Group’s directors alleging the company falsely advertised the employment rates of its graduates mostly survived a motion to dismiss Friday when a Delaware Chancery Court judge ruled the facts in the complaint supported the claims.

  • April 20, 2018

    Investor Suit Over GFI Merger Gets Judge's Heave-Ho

    A Manhattan federal judge on Friday tossed a suit claiming investors in brokerage GFI Group Inc. were duped into selling their shares on the cheap by news of a takeover bid by CME Group Inc. because top GFI brass never said a better offer was coming.

  • April 20, 2018

    FDIC Fights Citibank, Others' Exit From $695M RMBS Suit

    The Federal Deposit Insurance Corp. has urged a New York federal judge not to drop its suit alleging Citibank, U.S. Bank and Bank of New York Mellon mishandled residential mortgage-backed securities and cost a Texas bank $695 million, saying Citibank’s refusal to sign off on the claims out of its own self-interest shouldn’t prevent them from moving forward.

  • April 20, 2018

    Exxon Takes AG Climate Probe Fight To 2nd Circ.

    Oil giant ExxonMobil said Friday it will appeal to the Second Circuit a New York federal judge's dismissal of its suit claiming the attorneys general of New York and Massachusetts conspired to violate its free speech rights on climate change issues by investigating the company.

Expert Analysis

  • 5 Ways Law Firms Are Becoming More Like Hotels

    Bella Schiro

    One way law firms differentiate themselves from the competition to attract and retain top talent is through their real estate and workplace strategies. Taking a lead from the hospitality industry can help create a more inviting, welcoming and collaborative workspace environment, says Bella Schiro of Jones Lang LaSalle Inc.

  • A Setback For FCPA-Based Securities Class Actions

    Mauricio España

    The Southern District of New York's recent dismissal of a securities class action against Embraer provides hope that not every Foreign Corrupt Practices Act settlement will give rise to expensive private litigation, say attorneys with Dechert LLP.

  • Opinion

    Gorsuch's 1st Year Shows He Is A Conservative Activist

    Elliot Mincberg

    In his first year on the U.S. Supreme Court, Justice Neil Gorsuch has proven to be a narrow-minded elitist who consistently votes in favor of corporations and the powerful, acting to roll back protections for workers, consumers, LGBTQ individuals and other marginalized communities, says Elliot Mincberg of People for the American Way.

  • A Primer On Valuing Cryptocurrencies

    Simona Mola

    Not all cryptocurrencies are created equal from an economic standpoint, and understanding their differences has crucial implications on their valuation, say economists Simona Mola and An Wang of Bates White LLC.

  • How PACA And PSA Super Liens Impact Real Estate Sales

    Excerpt from Lexis Practice Advisor
    Spencer Compton

    Real estate practitioners should not underestimate the complexity and time involved in clearing a Perishable Agricultural Commodities Act or Packers and Stockyards Act exception from a loan policy, say Spencer Compton of First American Title Insurance Company and Diane Schottenstein.

  • The Right To Experts In PCAOB Hearings

    Andrew Morris

    The D.C. Circuit’s recent opinion in Laccetti establishes an important procedural right in investigations brought by the Public Company Accounting Oversight Board. The decision is also a rebuke to the PCAOB and casts uncertainty over many of the board’s ongoing matters, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Trump Tariffs May Violate Investment Treaty Protections

    Javier Rubinstein

    Foreign companies affected by the America First tariffs should consider the extent to which such tariffs may violate their rights under applicable investment treaties or free trade agreements, and thus may provide them with recourse in international arbitration for the harm they have suffered, say Javier Rubinstein and Lauren Friedman of Kirkland & Ellis LLP.

  • Regulators' Jurisdictional Overreach In Crypto Enforcement

    Jason Gottlieb

    The U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission both claim jurisdictional authority over cryptocurrency, yet no new legislation has been passed and very few court decisions have addressed the issue of who, if anyone, has regulatory authority, say attorneys with Morrison Cohen LLP.

  • Finance-Savvy Millennials Are Shifting Business Of Law

    Michael Perlich

    The impact of millennials has already been felt within the legal community by our eagerness to embrace new technologies. One way that we will have potentially even more impact lies in our willingness to embrace new ways of developing business and financing law, says Michael Perich of Burford Capital LLC.

  • Mass. Crackdown Reflects Increased State Regulation Of ICOs

    Christopher Conniff

    The top securities regulator in Massachusetts recently issued consent orders halting five initial coin offerings, reminding virtual currency market participants that they must be mindful of state regulators as well. This “sweep” is likely only the tip of the iceberg for ICOs in Massachusetts and in other states, say attorneys with Ropes & Gray LLP.