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Securities

  • October 18, 2018

    Admitted Fraudster Faces Arrest After Multiple No-Shows

    A Massachusetts judge said Thursday she had no choice but to issue an arrest warrant for a Florida man who missed his repeatedly rescheduled sentencing hearing on his role in a $1.6 million pump-and-dump scheme after being admitted to the hospital, noting his multiple last-minute no-shows and poor communication with probation.

  • October 18, 2018

    Calif. VC Adviser Wins Nod For SEC Settlement

    A California federal judge signed off Wednesday on a deal cut by an investment advisory firm's founder with the U.S. Securities and Exchange Commission in a suit alleging he overcharged investors by $7 million to finance his own personal expenses and pet projects.

  • October 18, 2018

    CFTC Threatens To Block EU Banks From Markets Over Brexit

    The head of the U.S. Commodity Futures Trading Commission has threatened to deny Europe's financial services firms access to U.S. futures markets unless the European Union drops new plans for the oversight of foreign clearing houses after Brexit.

  • October 17, 2018

    Aceto Execs Hit With Derivative Suit Over Stock Drop

    A shareholder of pharmaceutical manufacturer Aceto Corp. filed a derivative suit in New York federal court Wednesday accusing company executives of misleading investors by failing to disclose an impending financial loss despite guidance in early 2018 predicting the opposite.

  • October 17, 2018

    Ex-Radio Host Convicted Of All Counts In $20M Ponzi Scheme

    A Maryland federal jury found a former financial adviser guilty Wednesday of running a $20 million Ponzi scheme and using investor funds to support a lavish lifestyle and arrange religious ceremonies in India meant to ward off federal investigators, prosecutors said.

  • October 17, 2018

    Musk, Tesla Board Face Chancery Suit Over 'Erratic' Conduct

    Pointing to unchecked, "erratic" behavior by Tesla founder Elon Musk and board failures to head off recent, costly consequences, a company shareholder launched a derivative suit in Delaware’s Chancery Court on Wednesday, seeking damages and governance reforms.

  • October 17, 2018

    Sen. Warren Demands Toys R Us Pay Worker Severance

    U.S. Sen. Elizabeth Warren is urging five hedge funds who hold Toys R Us debt to answer questions about their role in the liquidation of the toy retailer and contribute to a fund to provide severance pay for the chain's 30,000 former employees.

  • October 17, 2018

    5 Powerhouse Firms GCs Prefer For Securities Litigation

    General counsel have singled out five law firms with exceptional efficiency, follow-through rates and innovation in their securities and finance practices ahead of a year expected to see a slowdown in securities litigation but increase in spending, according to a recent survey of more than 350 legal decision makers.

  • October 17, 2018

    A High Court Milestone Stirs Hope Of Gender Parity

    After an emotionally fraught confirmation process with sexual misconduct allegations front and center, a new justice joins the Supreme Court bench and brings four female clerks with him. The hires bring gender parity to the court's clerkship ranks for the first time, but will the shift be long-lasting?

  • October 17, 2018

    SEC Fines Fraudster For Penny-Stock Resort Co. Scheme

    A New York federal judge on Wednesday imposed an $80,000 civil penalty on an admitted fraudster who has already consented to a judgment resolving the U.S. Securities and Exchange Commission’s charges that he orchestrated a pump-and-dump scheme through a penny-stock resort company.

  • October 17, 2018

    Platinum Partners Liquidators Seek Docs From Funds' Ex-Firm

    The Cayman Island-based liquidators of a pair of failed Platinum Partners hedge funds have asked a New York bankruptcy court to compel Schulte Roth & Zabel LLP, the funds’ former attorneys, to hand over documents stemming from before the funds went into bankruptcy.

  • October 17, 2018

    Calif. Law Firm Beats Malpractice Suit Over Altered Stock Deal

    A California appellate court has refused to revive a suit against a Silicon Valley law firm that allegedly changed details of a stock buyout agreement without client approval, resulting in an underlying suit by a creditor of the client’s company.

  • October 17, 2018

    Fund Manager Cops To Stealing Millions From Friends, Family

    A 70-year-old man admitted he stole millions from friends and family, among others, by taking money he was supposed to invest on their behalf and using it to travel, buy fancy cars and pay off his son’s mortgage, pleading guilty to a 10-count indictment Wednesday afternoon in Massachusetts federal court.

  • October 17, 2018

    Sultzer Law Adds 2 Class Action Pros From Wolf Haldenstein

    The Sultzer Law Group has nabbed two Wolf Haldenstein Adler Freeman & Herz LLP partners to bolster its New York City offerings with their extensive experience litigating class actions in areas such as product liability, cybersecurity and privacy, antitrust, employment and securities, the firm said Tuesday.

  • October 17, 2018

    2 Ex-Deutsche Traders Convicted Of Libor-Rigging

    A Manhattan federal jury on Wednesday convicted two former Deutsche Bank AG traders of rigging the London Interbank Offered Rate to benefit their trading positions, setting the stage for a protracted legal fight over whether or not the trial was tainted by compelled testimony.  

  • October 17, 2018

    Ex-State Street Exec Promises Precedent-Setting Appeal

    After being sentenced to 18 months in prison, a former State Street Corp. executive who was convicted of stealing millions from international clients asked a Massachusetts federal judge Wednesday for his freedom pending an appeal that he promises will include multiple issues that have not yet been addressed by the First Circuit.

  • October 17, 2018

    Attys From 2 Firms Seek $4.75M In Health Tech Co. Settlement

    Co-lead counsel Robbins Geller Rudman & Dowd LLP and Bernstein Litowitz Berger & Grossmann LLP asked a California federal court on Tuesday to award them $4.75 million in fees after securing a $19 million settlement for a class of investors who alleged that Quality Systems Inc. misled them about projected sales and financial performance.

  • October 16, 2018

    SEC Comes Up Short In Fraud Case Against RD Legal Capital

    A U.S. Securities and Exchange Commission administrative law judge on Monday shot down much of the agency’s case alleging that fund manager RD Legal Capital LLC and its owner misled investors about their hedge funds’ legal receivables investments, ruling that while some misrepresentations had been made, they hadn’t been made with fraudulent intent.

  • October 16, 2018

    Quick Chancery Appeal Sought For Rocky $4.8B Akorn Merger

    Warring pharmaceutical companies Akorn Inc. and Fresenius Kabi AG asked Delaware’s Chancery Court late Monday to clear the way for an immediate Akorn appeal from a recent ruling that Fresnius could terminate a $4.8 billion merger, putting off for now litigation over Fresenius’ damage claims.

  • October 16, 2018

    Del. Judge OKs $4.2M Award, Fees In Space Robot Tech Suit

    A federal judge in Delaware denied a new trial late Monday for a space vehicle company that landed on the dark side of a $4.2 million breach of contract and damage award in a suit over work for planned commercial robot moon landers and Earth re-entry vehicles.

Expert Analysis

  • Knowledge Management: An Unsung Hero Of Legal Innovation

    Rob MacAdam

    As technology evolves, law firms are increasingly looking for ways to improve communication, transparency and service for their clients. Firms should put knowledge management at the core of their value proposition to create a competitive advantage, says Rob MacAdam at HighQ.

  • A Canadian Perspective On The 'New NAFTA'

    Matthew Kronby

    Last week, Canada reached agreement with the United States and Mexico on what is essentially a revised North American Free Trade Agreement. The new U.S.-Mexico-Canada Agreement alters some provisions of NAFTA, maintains others and borrows a few ideas from the Trans-Pacific Partnership, say attorneys with Borden Ladner Gervais LLP.

  • Recent Trends In Shareholder Activism

    Warren de Wied

    Despite poor financial performance among activist funds, the number of public campaigns has increased sharply. Attorneys with Fried Frank Harris Shriver & Jacobson LLP explore the themes in this year's campaigns, the impact on M&A and board concentration, and how companies must respond.

  • Hurdles Ahead For California's Female Director Mandate

    Teresa Johnson

    Many believe that California's new law requiring a minimum number of female directors at public companies is necessary. But the law also faces a number of criticisms, and its implementation may well be delayed or even blocked by constitutional challenges, say attorneys with Arnold & Porter.

  • Identifying Investment Contracts, From Chinchillas To Crypto

    Rikard Lundberg

    Because of the broad reach of the Howey test, investment contracts can arise in essentially any circumstance. Three recent enforcement actions illustrate the pitfalls of failing to identify an investment venture as involving the sale of securities, say attorneys with Brownstein Hyatt Farber Schreck LLP.

  • Akorn Could Alter 'Material Adverse Effect' Law In Delaware

    J.B. Heaton

    The Delaware Chancery Court's opinion this week in the Fresenius-Akorn merger dispute will likely be appealed. That appeal will determine whether this case is destined to change the understanding of material adverse effect, or whether the Chancery Court overreached on the law and the facts, says J.B. Heaton of the University of Chicago Law School.

  • Can Defrauded Crypto Investors Hope To Recover Anything?

    Brett Theisen

    While insolvencies and fraud in the cryptocurrency space will create many issues of first impression for the courts, some valuable lessons can be found in more traditional fraud cases, such as the Bernie Madoff Ponzi scheme, says Brett Theisen of Gibbons PC.

  • Opinion

    Skip The New 'Civility Courses' And Think Like A Lawyer

    Alex Dimitrief

    As we watch what passes for political discourse in our nation’s capital, it’s understandable that universities are launching programs on how to cope with ideological disputes. But our country needs fewer people who profess to be open-minded and more people who engage in and honor the conclusions of reasoned debates, says Alex Dimitrief of General Electric Co.

  • A New Normal In Commodity Derivatives Enforcement Actions

    Brian Daly

    The U.S. Commodity Futures Trading Commission last year outlined a new enforcement initiative that focused on cooperation with other state, federal and international authorities. The fruits of this initiative became evident in the last three weeks of the CFTC’s 2018 fiscal year, say Brian Daly and Jacob Preiserowicz of Schulte Roth & Zabel LLP.

  • Beware Pitfalls In Private Equity Secondary Transactions

    Katherine Ashton

    The U.S. Securities and Exchange Commission's recent settlement with VSS Fund Management shows that secondary liquidity solutions for private equity funds can be rife with conflicts of interest, say attorneys with Debevoise & Plimpton LLP.