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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.