Securities

  • May 26, 2017

    BNC Bancorp Investor Sues Over $1.9B Pinnacle Merger Docs

    A putative class of BNC Bancorp shareholders slapped the bank and Pinnacle Financial Partners Inc. with a suit in North Carolina federal court on Thursday, alleging that key details of the bank holding companies’ proposed $1.9 billion merger weren’t adequately disclosed in shareholder materials.

  • May 25, 2017

    Qualcomm Socked With Investor Suit After Shares Dip 35%

    Investors in Qualcomm Inc. hit the semiconductor giant with a shareholder lawsuit in Delaware federal court Thursday, alleging its leadership dropped the ball by pushing hard-line policies that led to record-breaking antitrust fines and rushing a defective mobile chip to market that led to a major drop in sales.

  • May 25, 2017

    'Hedge Fund' Founder Pleads Guilty To Fraud Charges

    A would-be hedge fund founder pled guilty Thursday in New York federal court to a conspiracy charge tied to his alleged ploy to lure investors into a new fund by touting its great prior performance — performance that didn’t exist — prosecutors said.

  • May 25, 2017

    LendingClub Stock Drop Suit Moves Forward Mostly Intact

    A California federal judge allowed the bulk of a proposed class action accusing LendingClub Corp. of hiding defective internal controls to go forward on Thursday, but ruled that the investors behind the suit will need to tighten up some of their claims.

  • May 25, 2017

    7th Circ. Backs CFTC Dismissal Of $3.6M Trading Loss Suit

    The Seventh Circuit said Thursday that a family trust waited too long to bring claims over its $3.6 million loss in futures contracts trading, upholding a U.S. Commodity Futures Trading Commission ruling that the trust's arbitration of the claims did not pause their time limits.

  • May 25, 2017

    Broker Agrees To Deal Over Alleged REIT Violations

    A broker-dealer has agreed to pay $650,000 to resolve allegations that the business unlawfully sold units in non-publicly traded real estate investment trusts to unsuitable New Jersey investors and failed to make and keep adequate records for its sales, state officials announced Thursday.

  • May 25, 2017

    Billionaire Developer Peppers Judge Ahead Of UN Bribe Trial

    Chinese real estate billionaire Ng Lap Seng's legal team has lodged a flurry of letters ahead of the developer's Tuesday bribery trial, with the latest missive Thursday saying a key cooperating witness may have made undisclosed exculpatory statements during plea talks with prosecutors.

  • May 25, 2017

    Subprime Auto Loan Co. Execs Cop To $11M Fraud

    Two Massachusetts men pled guilty in Boston federal court Thursday to an $11 million fraud scheme in which they falsely told investors that their subprime auto loan company could accept tax-advantaged retirement account funds.

  • May 25, 2017

    Helicopter Service Co.'s $3.9M Deal Denied Preliminary OK

    A New York federal judge on Thursday refused to preliminarily approve a $3.9 million settlement that would resolve a proposed investor class action against helicopter services giant CHC Group Ltd., citing concerns that absent class members could think “the deck is stacked against them” before they can object to the deal.

  • May 25, 2017

    DOJ To Send Fraud Prosecutor To UK Financial Watchdog

    The U.S. Department of Justice expects to detail an anti-corruption prosecutor to Britain’s Financial Conduct Authority in the coming months in the first assignment of its kind, a high-ranking DOJ official said in a speech Wednesday.

  • May 25, 2017

    4 Investors Settle SEC's Coffee Co. Pump-And-Dump Claims

    A California federal judge gave the green light on Wednesday for four offshore investors to pay the U.S. Securities and Exchange Commission nearly $1.7 million in disgorgements and interest to settle allegations that they participated in a $78 million pump-and-dump scheme involving shares of Jammin’ Java Corp., a coffee company originally founded by Bob Marley’s son Rohan.

  • May 25, 2017

    9th Circ. Says Old Suits Make Investor Class Claims Timely

    The Ninth Circuit on Wednesday revived a proposed shareholder class action alleging fertilizer manufacturer China Agritech Inc. overstated its revenue numbers, allowing putative class claims to proceed despite the investors being unnamed members in two now-concluded, almost identical suits in which class certification was denied.

  • May 25, 2017

    SEC Says Unregistered Adviser Bilked $2.1M From Investors

    The U.S. Securities and Exchange Commission sued a former options trading instructor in North Carolina federal court on Wednesday, claiming that he raised $2.1 million for two investment funds without the proper registrations and then concealed how he was using and losing investors’ money.

  • May 25, 2017

    Top Pence Aide Wants Bank Creditors To Play Regulatory Role

    A top adviser to Vice President Mike Pence on Thursday said that the Trump administration’s main priority in changing financial regulation will be to help creditors and other market participants take a more active role in policing markets.

  • May 25, 2017

    Global Regulators Set FX Market Conduct Code After Scandals

    Central bankers and foreign exchange players on Thursday unveiled a voluntary global code of conduct establishing good practices for wholesale foreign exchange markets, hoping to restore faith in a $5 trillion daily market beset by several enforcement probes and antitrust litigation alleging manipulation.

  • May 24, 2017

    Feds Drop Charges In $30M Pump-And-Dump Row, Cite Ruling

    A federal prosecutor told a New Jersey federal judge Wednesday that the government is dropping criminal charges against an investment adviser in a more-than-$30 million stock market manipulation scheme in light of a ruling dismissing charges in a separate securities fraud case on statute of limitations grounds.

  • May 24, 2017

    8th Circ. Lets St. Louis Bank Out Of Sigillito Ponzi Claims

    The Eighth Circuit on Wednesday let St. Louis Bank off the hook in a suit by investors in a $56 million Ponzi scheme orchestrated by St. Louis attorney and Anglican bishop Martin Sigillito, finding the bank didn’t know the money moving through his accounts was being stolen.

  • May 24, 2017

    Theranos Dodges Investors’ ‘Boundless’ Docs Bid, For Now

    A California magistrate judge refused Wednesday to order Theranos to provide a putative shareholder class with all documents the beleaguered startup produced in similar, recently settled suits over claims it lied about the accuracy of its blood tests, saying he opened discovery, but “that doesn’t mean discovery is boundless.”

  • May 24, 2017

    Judge Won’t Wade Into Mich. Biopharma Co.’s Proxy Fight

    A Michigan federal judge on Wednesday rejected a request by biopharmaceuticals firm Rockwell Medical Inc. that he require several shareholders to register themselves as a group and curtail their contacts with other investors, saying he doesn’t want to chill shareholder activism.

  • May 24, 2017

    Sito Investor Says Voted-Out Board Is Squatting

    Five of targeted-ad company Sito Mobile Ltd.’s six board members were sued in Delaware Chancery Court on Wednesday by a shareholder who says they failed to relinquish their board seats after a vote that removed them.

Expert Analysis

  • FHFA Should Free Captive Insurer Capital

    Jeffrey Murphy

    The Federal Housing Finance Agency's ruling that prevents captive insurance companies from becoming members of the Federal Home Loan Bank system is forcing billions of dollars of private capital out of the U.S. residential mortgage market. Hopefully, the Trump administration and members of Congress will be able to convince FHFA Director Melvin Watt to reverse this ruling, says Jeffrey Murphy of Dentons.

  • UK Internal Investigations Are Taking An Ungainly Turn

    Matthew Herrington

    The London High Court's decision in Serious Fraud Office v. Eurasian Natural Resources Corporation has a lot to say on the vitality of legal professional privilege and the conduct of internal investigations in the U.K., but its flawed logic and lack of pragmatism feel like the latest installment in SFO Director David Green's pushback against U.S.-style investigation procedures, say Matthew Herrington and Tom Best of Steptoe & Johnson LLP.

  • Series

    Revisiting Affiliated Ute: Back In Vogue In The 9th Circ.

    Michele Johnson

    While there are still very few district court decisions within the Ninth Circuit to have analyzed the relationship between the Affiliated Ute and the fraud-on-the-market presumptions of reliance since the U.S. Supreme Court’s 2014 Halliburton decision, plaintiffs are increasingly attempting to plead both theories, as demonstrated by several recent decisions, say Michele Johnson and Colleen Smith of Latham & Watkins LLP.

  • Attorneys, Your Input Is Needed On Deposition Rule

    Frank Silvestri, Jr.

    Every lawyer who’s handled a civil case in federal court knows about Rule 30(b)(6), governing deposition procedures. But for many real-world deposition dilemmas, the rule offers little guidance. Last year, an Advisory Committee on Civil Rules subcommittee began considering whether the rule should be amended. Now attorneys must advise the subcommittee how to proceed, says Frank Silvestri Jr. of Verrill Dana LLP.

  • Fate Of The SEC In-House Court: Careful What You Wish For

    Matthew Solomon

    As the D.C. Circuit hears arguments on Wednesday regarding the constitutionality of the U.S. Securities and Exchange Commission’s administrative tribunals, Cleary Gottlieb attorneys consider whether the current strong movement away from using the administrative forum is universally positive for defendants.

  • Series

    Revisiting Affiliated Ute: Impact In The 7th Circ.

    Julie Goldsmith Reiser

    In the 45 years since the U.S. Supreme Court's ruling in Affiliated Ute, the Seventh Circuit has cited it 145 times. The most significant of these decisions was the court's rejection of the “fraud created the market” theory as an extension of Affiliated Ute, says Julie Goldsmith Reiser of Cohen Milstein Sellers & Toll PLLC.

  • The FX Global Code And Its Enforcement: What To Expect

    Matthew Kulkin

    With the second phase of the Foreign Exchange Global Code releasing this week, Matthew Kulkin and Micah Green of Steptoe & Johnson LLP analyze how U.S. courts have historically looked to or relied upon financial services global codes of conduct or industry best practices documents.

  • Why Insider Benefit Is Irrelevant To Criminal Insider Trading

    David Chaiken

    Lawyers and commentators have spilled oceans of ink analyzing what kind of insider benefit and what level of tippee knowledge of such benefit are sufficient to establish liability for insider trading. But what has been largely ignored is that in criminal insider trading cases, the U.S. Department of Justice is legally empowered to avoid those issues entirely, say David Chaiken of Troutman Sanders LLP and Paul Monnin of Paul Hastings LLP.

  • Series

    Revisiting Affiliated Ute: 4 Lines Of Cases In 3rd Circ.

    John Harnes

    Over the last 45 years, Affiliated Ute has, in the Third Circuit, spawned primarily four lines of cases, each addressing a distinct issue raised by that ruling. The most vexing issue, particularly in cases that involve misrepresentations and omissions, is when the presumption applies and when it does not, says John Harnes of Chitwood Harley Harnes LLP.

  • How Client Feedback Programs Benefit Law Firms And Clients

    Elizabeth Duffy

    Despite an increase in engagement with client feedback programs over the last 15 years, law firms — and their clients — have a way to go before realizing the maximum benefits such programs can deliver, says Elizabeth Duffy of Acritas US Inc.