A Vermont federal judge on Friday certified a class of investors in a long-running suit against Green Mountain for allegedly misstating its revenue and lying about single-cup coffee maker sales, while also shutting down the company’s bid to partially dismiss the case.
A group of investors with billions at stake in Puerto Rico public pension bonds has sued the United States, saying a federally appointed oversight panel played an outsize role in the passage of recent legislation that unconstitutionally diverts their secured collateral in employer pension contributions.
The Commodity Futures Trading Commission has asked an Arizona federal court for a default judgment in its suit accusing an Arizona man of tricking his family, friends, fellow Mormon church members and others into investing $13 million in a trading scheme that funded his personal expenses and Ponzi scheme payments.
Federal prosecutors told a New York federal judge on Friday that they want to dismiss fraud and conspiracy charges against two European former derivatives traders at JPMorgan Chase & Co. involved in the $6 billion “London Whale” debacle, because they can’t extradite the defendants and can’t rely on their star witness.
The world’s largest bedding manufacturer, Tempur Sealy International Inc., was hit Friday in Kentucky federal court with another putative shareholder class action over its failed dealings with a large U.S. mattress retailer, alleging Tempur Sealy’s directors and officers mismanaged agreements with the retailer after it was acquired by another company.
A California federal judge on Friday approved $125 million in fees and costs for attorneys who represented owners of Volkswagen AG’s pricier 3.0-liter engine vehicles with emissions-cheating devices, according to an order that noted the fees wouldn’t pull from the class recovery funds.
A bond trader fired by Odeon Capital Group LLC who won $1.1 million from his former employer over unpaid wages had his win confirmed by the Second Circuit on Friday, with the court tacking on attorney’s fees and rejecting Odeon’s claims that the decision was tainted by perjury.
A Delaware Chancery judge on Friday appraised the per-share value of Clearwire Corp. at $2.13 in its $3.6 billion buyout by Sprint Nextel Corp., lower than half of the market price, dealing a major blow to Aurelius Capital Management LP, which pushed for an appraisal roughly eight times higher.
U.S. regulators said Friday they would not enforce parts of the Volcker Rule on foreign banks as part of a review of treatment of foreign funds that should be exempt from the Dodd-Frank Act regulation.
A Texas federal judge on Friday questioned whether he can decide if investors who bought shares in bankrupt biotech firm Palmaz Inc. should be considered “indirect customers” of investment firm Jefferies LLC before determining whether the matter should be arbitrated.
A New York federal judge on Friday again imposed a 20-year prison sentence on an investment adviser who pled guilty to masterminding a large investment fraud scheme, despite the Second Circuit ruling in April that the judge originally bungled the adviser's first sentencing.
Several financial and insurance industry groups, including the U.S. Chamber of Commerce, urged the Fifth Circuit on Thursday to rule against the U.S. Department of Labor’s fiduciary rule for retirement account advisers, saying the rule’s definition of a fiduciary “defies centuries of precedent.”
The U.S. Securities and Exchange Commission told a New Jersey federal judge on Friday that injunctive relief sought against a broker-dealer alleged to have taken part in a $17.2 million pump-and-dump scheme is not a time-barred punishment but a remedy designed to protect the public.
An investment adviser seeking to overturn a lifetime industry ban imposed by a U.S. Securities and Exchange Commission administrative law judge on Friday asked the U.S. Supreme Court to weigh in on whether the use of those judges violated the Constitution’s appointments clause.
Federal prosecutors on Thursday told an Illinois federal judge that a 26-year-old Chicago man who copped to conning investors out of more than $1.7 million by touting the success of his nonexistent trading algorithm “richly deserves a serious sentence of imprisonment.”
A Texas federal judge on Thursday refused to toss wire fraud allegations against the former chief executive of ArthroCare, the medical device company that purportedly deceived investors by artificially inflating sales.
Investors in SeaWorld Entertainment Inc. claimed Thursday that the theme park operator is improperly shielding all of its discovery behind a confidentiality order in a suit accusing it of failing to tell shareholders that the 2013 documentary “Blackfish” caused an attendance drop at its theme parks.
Three Chinese college students asked an Illinois federal judge on Thursday for permission to join the Securities and Exchange Commission’s suit against an immigration attorney accused of funneling money from the nearly $89 million he collected from EB-5 visa holders into his own pockets.
Ocwen Financial Corp. announced in a filing with the U.S. Securities and Exchange Commission on Thursday that it has reached a $56 million settlement to resolve a stock-drop suit stemming from the company’s problematic servicing operations. Correction: An earlier version of this story incorrectly identified the case Ocwen was settling. The error has been corrected.
The last week has seen an arbitration dispute between ICBC Standard Bank and a Russo-Mongolian mining venture, Barents Re's suit against PDV Insurance, and a financial services spat between Walker Crips brokerage and ADM's U.K. investment services unit. Here, Law360 looks at those and other new claims in the U.K.
In a recent Law360 guest article, Christopher Bogart of Burford Capital LLC claimed that "while theoretically well designed to find the proverbial needle in a haystack, big data and AI currently lack the ability to do so usefully in a commercial litigation financing context." But AI can manage many of the tasks that litigation financiers would otherwise perform, says Eva Shang, co-founder of Legalist Inc.
The bankruptcy courtroom was filled with interested investors. They hung on every argument and every word of testimony. When Life Partners management argued that the allegedly fraudulent business model worked just fine, they cheered, recalls Joseph Wielebinski of Munsch Hardt Kopf & Harr PC.
In Petrobras, the Second Circuit purported to “clarify” its leading ascertainability decision, Brecher v. Republic of Argentina. In reality, however, it essentially rewrote Brecher, stretching it beyond recognition to revamp the law of ascertainability in the circuit, says Jonah Knobler of Patterson Belknap Webb & Tyler LLP.
Since Corwin was decided in 2015, the Delaware courts have found that the stockholder vote was fully informed and uncoerced in every case where the defendants were seeking Corwin "cleansing" — with the only exceptions being three recent decisions. These decisions establish five categories under which Corwin cleansing may not be available, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
Artificial intelligence and machine learning will continue to be a major focus for the legal community, whether as an isolated topic, as it intersects with cybersecurity, or within the legal profession itself. Each of these raises unique concerns for attorneys, says Randy Sabett, vice chair of Cooley LLP's privacy and data protection practice group.
The Public Company Accounting Oversight Board’s new audit report standard introduces many changes, but the disclosure of critical audit matters may present the most significant implications and may lead to litigation against auditors, say Michael Braverman and Christopher Ekimoff of Resolution Economics LLC.
The European Union's Market Abuse Regulation, which went into effect in July 2016, contains rules on insider dealing, unlawful disclosure of inside information and market manipulation. As a consequence of the increased burden on asset managers and bond issuers, the popularity of listing debt in European multilateral trading facilities has declined, say Michelle Moran and John Young of Ropes & Gray LLP.
What drives disdain for plaintiffs class action lawyers getting paid? While stupid class actions filed by feckless lawyers are a disgrace, good class actions are essential. Without risk-taking plaintiffs lawyers, there would be no defense lawyers, and corporate cheaters would run amuck, ravaging consumers and victimizing well-behaving companies, says Daniel Karon of Karon LLC.
The U.S. Securities and Exchange Commission’s recent suit against Alpine Securities Corp., alleging that the broker-dealer violated the Bank Secrecy Act by failing to file suspicious activity reports, is not an isolated event but rather appears to be part of a trend, say attorneys with Ballard Spahr LLP.
After the U.S. Supreme Court's decision in ANZ Securities, the rise in parallel individual suits is poised to go national. Securities defendants may come to regret the opinion, though it may feel like a victory today, say attorneys with Labaton Sucharow LLP.