Securities

  • November 21, 2017

    DOJ Cleared To Split Up $350M Shire Deal For Whistleblowers

    A Florida federal judge signed off Monday on the U.S. Department of Justice’s apportionment plans for payouts from a $350 million False Claims Act settlement with biotech company Shire, with two of six whistleblower suits getting more than 95 percent of the proceeds, which must still be tabulated.

  • November 21, 2017

    Puerto Rico Board Says Bond Insurer Can't Fight Fiscal Plan

    The federal board charged with guiding Puerto Rico through its watershed debt restructuring reasserted Tuesday that it must remain unfettered from bondholder litigation to certify fiscal budgeting plans for the territory and ultimately come up with debt readjustment proposals, tamping down complaints of alleged constitutional violations.

  • November 21, 2017

    Oncor Stakeholder Goes After NextEra For $72M Breakup Fee

    A minority shareholder in Texas utility Oncor Electric Delivery Co. LLC told the Delaware Chancery Court on Monday that NextEra Energy owes it $72 million as a breakup fee for a merger shot down by state regulators.

  • November 21, 2017

    6D Global Settles Suit Over PE CEO's Stock Scheming

    Digital marketing company 6D Global Technologies Inc. will implement new training programs to settle claims that it failed to stop a private equity firm's CEO from manipulating its share price, the company and shareholders have told a New York federal judge.

  • November 21, 2017

    Judge Suggests Anonymous Jury In Iran Sanctions Trial

    A New York federal judge on Tuesday suggested using an anonymous jury in the upcoming trial of Turkiye Halk Bankasi AS executive Mehmet Hakan Atilla on charges of scheming to dodge U.S. sanctions against Iran, following reports that “third parties” have contacted people involved in the case.

  • November 21, 2017

    9th Circ. Kills Yelp Investor Action Over FTC Complaints

    The Ninth Circuit on Tuesday backed a lower court judge’s decision to dismiss a shareholder suit against Yelp Inc., saying the plaintiffs can’t rest their fraud case on the fact that the company’s stock price fell after the FTC disclosed it was the subject of over 2,000 regulatory complaints.

  • November 21, 2017

    AIG Unit Needn't Cover $17M Ponzi Loss, 5th Circ. Affirms

    An American International Group Inc. unit doesn't have to cover Cooper Industries Ltd.'s $17 million loss to a Ponzi scheme, the Fifth Circuit affirmed on Monday, agreeing with a lower court that the electrical products manufacturer didn't own the money for coverage purposes because it invested in the scheme via loans.

  • November 21, 2017

    FINRA Fines JPMorgan $1.25M For Faulty Background Checks

    A JPMorgan Chase & Co. securities subsidiary on Tuesday agreed to pay $1.25 million in a settlement alleging that the firm did not perform adequate background checks on around 95 percent of its support staff.

  • November 21, 2017

    CFTC Grants Relief To Swaps Execution Compliance Chiefs

    The Commodity Futures Trading Commission on Monday granted relief for chief compliance officers of swap execution facilities, allowing them an additional 30 days to submit annual compliance reports after their fiscal year ends in order to cope with budget constraints.

  • November 21, 2017

    FDIC Chair Says Raising Oversight Thresholds Risks Fund

    Federal Deposit Insurance Corp. Chair Martin Gruenberg on Tuesday said that a Senate proposal to raise the asset level that qualifies banks for enhanced regulations and capital requirements could potentially put the federal deposit insurance system at risk.

  • November 21, 2017

    EU Securities Regulator Clarifies Insider Trading Laws

    Europe’s securities watchdog moved Tuesday to clear up confusion in the financial sector about insider trading laws governing transactions made by senior staff and trading carried out by their firm as it is prepares to announce its results.

  • November 20, 2017

    Shawe Forges Deal To Buy TransPerfect After Bitter Fight

    TransPerfect co-founder Philip Shawe is slated to buy out the shares of his rival Elizabeth Elting, according to letter Monday from the court-appointed custodian overseeing the sale process, potentially resolving what has been a maelstrom of bitter disputes in Delaware Chancery Court over control of the legal translation firm.

  • November 20, 2017

    21st Century Fox Pens $90M Investor Deal Over Scandals

    Twenty-First Century Fox Inc. has reached a $90 million deal to settle derivative claims stemming from a series of workplace harassment incidents at Fox News, according to an agreement filed Monday in Delaware state court that also requires the media outlet to create a new advisory council on improving workplace culture.

  • November 20, 2017

    Court Skeptical Of All In Koch, Oxbow Post-Trial Argument

    A Delaware vice chancellor cautioned Monday that he remained “skeptical of both sides” after post-trial arguments over a private equity investor’s bid to cash out or force a sale of billionaire William I. Koch’s Oxbow Carbon LLC.

  • November 20, 2017

    NY Justices Won't Hold NY Derivative Claims To Cayman Rule

    New York’s highest court said Monday that a minority investor in Scottish Re Group Ltd. did not have to get permission from a Cayman Islands court to pursue derivative claims on behalf of the Cayman-incorporated reinsurer, reversing a state appeals court ruling that stood to limit New York courts’ ability to hear derivative suits involving Cayman companies.

  • November 20, 2017

    Ex-Galleon Trader Details Shkreli Vendetta At Ex-Katten Atty Trial

    A Deutsche Bank project manager and former Galleon Group trader on Monday told the jury weighing the fate of Martin Shkreli’s former Katten Muchin attorney of how the now-incarcerated former pharmaceutical executive harassed his family over a stock ownership dispute, but came under fire on cross-examination over a trade he made on inside information while at Galleon.

  • November 20, 2017

    DigitalGlobe Investors Seek Share Appraisal In $2.4B Deal

    Shareholders of satellite imaging company DigitalGlobe Inc. filed a petition in Delaware state court late Friday seeking appraisal of their shares in the firm following a $2.4 billion cash-and-stock merger with MacDonald Dettwiler and Associates Ltd. that closed last month.

  • November 20, 2017

    RMBS Trustees Open Court Fight For $11.4B Lehman Claim

    Bankruptcy court scrutiny of Lehman Brothers’ sale of residential mortgage-backed securities in the years preceding the 2008 financial crisis got underway Monday as counsel for several RMBS trusts argued that the shuttered investment bank is responsible for $11.4 billion in damages for securitizing misrepresented loans.

  • November 20, 2017

    Snap Investor Class Action Could Bounce Back To State Court

    A California federal judge on Monday said she’s inclined to send back to state court a putative class action from Snap Inc. investors accusing the company of understating the stock-based compensation incurred as part of its initial public offering by $300 million, while the tech giant urged her to retain jurisdiction for the purpose of sending a certified question to the Delaware Supreme Court.

  • November 20, 2017

    Ex-Fund Manager Must Pay SEC Disgorgement: Judge

    A Texas federal judge on Monday said the criminal restitution ordered for a former hedge fund manager who copped to ripping off investors in his Lobo Volatility Fund LLC doesn't preclude him from having to pay the disgorgement he previously agreed to in settling the U.S. Securities and Exchange Commission's related civil case.

Expert Analysis

  • What A Solar Eclipse Has To Do With Market Efficiency

    Daniel Bettencourt

    A common criticism of the event study methodology for testing market efficiency is that the number of events is insufficient and that the results cannot be generalized for the entire class period. That's where Albert Einstein and the 1919 total solar eclipse come in, say Daniel Bettencourt and Steven Feinstein of Crowninshield Financial Research.

  • An Interview With Former DHS Secretary Jeh Johnson

    Randy Maniloff

    Jeh Johnson, the former secretary of homeland security, was kind enough to let me visit him to reflect on his diverse career. He told stories that left me speechless. And yes, the man who was responsible for the Transportation Security Administration removed his shoes when going through airport security. You bet I asked, says Randy Maniloff of White and Williams LLP.

  • MiFID II Research Unbundling — Crisis Averted?

    Rob Moulton

    Recent guidance from key securities regulators on both sides of the Atlantic reflects a coordinated effort to address the incompatibilities between the U.S. regulatory regime and the European Union's new MiFID II rules on research unbundling. However, that the problem arose at all points to a much larger issue, say attorneys with Latham & Watkins LLP.

  • Why Securities Lawyers Are The New Employment Lawyers

    Christopher Regan

    Whistleblower retaliation claims have a unique securities law slant and involve sensitive, unresolved areas that should cause all stakeholders to consider whether the typical employment lawyer is equipped to handle these cases, say attorneys with Buckley Sandler LLP.

  • Series

    Judging A Book: Gilstrap Reviews 'Alexander Hamilton'

    Judge Rodney Gilstrap

    While Alexander Hamilton is the subject of a hit Broadway musical and renewed biographical examinations, professor Kate Brown takes us down a road less traveled in her book "Alexander Hamilton and the Development of American Law" — showing Hamilton as first, last and foremost an American lawyer, says U.S. District Judge Rodney Gilstrap of the Eastern District of Texas.

  • ICO Token Purchasers May Be Entitled To A Refund

    John Reed Stark

    Purchasing an investment is not like buying a pair of shoes at Zappos. You can’t return the investment for a refund if you don’t like the fit — unless you bought tokens in an initial coin offering, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • The Case For Creating A Mediation Department At Your Firm

    Dennis Klein

    There are at least four reasons supporting the need for some form of a mediation group within a law firm, especially in firms with larger practices, according to Dennis Klein, owner of Critical Matter Mediation and former litigation partner at Hughes Hubbard & Reed LLP.

  • A New, Relaxed Standard For Class Cert. In Securities Cases

    Brian Headshot.jpg

    After the Second Circuit’s decision last week in Waggoner v. Barclays, it should be easier for securities fraud plaintiffs to win class certification when their cases involve securities that are not listed on national exchanges, says Brian Lehman of The Lehman Law Group.

  • Intermediate Transfers May Be Safe From 546(e) Safe Harbor

    Meaghan Gragg

    In Merit Management v. FTI Consulting, the U.S. Supreme Court is reviewing the Seventh Circuit’s decision that the Section 546(e) safe harbor does not protect from avoidance a transfer that is conducted through a financial institution where the institution acts merely as a conduit. Based on the justices’ questions at oral argument last week, the odds are good that the Supreme Court will agree with the Seventh Circuit, says Meaghan ... (continued)

  • Financial Crisis Anniversary

    Dodd-Frank And Deregulation: Some Lessons From History

    Dennis Kelleher.jpg

    The Dodd-Frank Act, while imperfect, addressed what actually did cause the financial crisis: unreasonable risk-taking, low capital and high leverage, shadow banking, and much more. The evidence is overwhelming that financial reform is working, that the risk of a crash in the U.S. is greatly reduced, and that banks are highly profitable, says Dennis Kelleher, president of Better Markets Inc.