Securities

  • November 16, 2017

    NantKwest Investor Sues Insiders Over Restatements

    A NantKwest shareholder filed a derivative suit Thursday against company insiders, saying the board knew the company was misrepresenting tens of millions of dollars in compensation but hid it from shareholders and continued to try to cover it up afterward.

  • November 16, 2017

    Broker-Dealer Can't Shake Bulk Of 'Hamilton' Resale Suit

    A New York federal judge kept most of investors' $1.8 million suit over losses tied to an alleged $95 million Ponzi scheme based on “Hamilton” ticket resales, agreeing Thursday to cut claims about price manipulation but letting the bulk of the suit stay alive.

  • November 16, 2017

    House Panel Approves Bill Lifting Reg A+ IPO Limit To $75M

    A House of Representatives panel approved a bill Wednesday that would raise the limit on so-called Reg A+ offerings from $50 million to $75 million, a proposal that some securities attorneys say could broaden the appeal of the novel capital-raising method if it becomes law.

  • November 16, 2017

    Deutsche Bank Takes Hunt For Billionaire Vik To Delaware

    Deutsche Bank extended its hunt to recover roughly $300 million owed from a judgment against Norwegian investor Alexander Vik to Delaware on Thursday, launching a Chancery Court lawsuit alleging that his offshore private equity firm used First State-organized companies to transfer funds beyond the bank’s reach.

  • November 16, 2017

    DOL, First Bankers Strike $16M Deal Settling 3 ERISA Suits

    First Bankers Trust Services Inc. has agreed to pay nearly $16 million to resolve a set of lawsuits alleging it breached its fiduciary duties under the Employee Retirement Income Security Act in purportedly letting three employee stock ownership plans overpay for their own companies’ stock, the U.S. Department of Labor said Thursday.

  • November 16, 2017

    UK Prosecutors Name 3 Individuals In Unaoil Bribery Probe

    The U.K. Serious Fraud Office has charged two British residents who worked for Monaco-based Unaoil with conspiring to pay bribes to help a client win a contract in Iraq, and is seeking the extradition of a third man, the prosecutor's office said on Thursday.

  • November 16, 2017

    Ignition Interlock Co. Seller Is Withholding Escrow, Buyer Says

    The private equity firm that purchased ignition interlock device maker 1A Smart Start Inc. in 2015 filed suit in Delaware late Wednesday, saying the seller is trying to claim escrowed funds from the deal despite failing to achieve a favorable result in a tax dispute, as required in the escrow agreement.

  • November 16, 2017

    Shkreli Auditor Says Investor Settlements Seemed Legit

    An auditor who did work for Martin Shkreli-founded Retrophin Inc. on Thursday told jurors in the trial of the controversial pharmaceutical executive’s former Katten Muchin attorney that he didn’t believe there was anything wrong with a series of settlements with investors in Shkreli's MSMB hedge funds that prosecutors say were fraudulent.

  • November 16, 2017

    ICC Provider Says Salsa Co.'s Suit Belongs In Federal Court

    The International Chamber of Commerce’s North American arbitration provider said Wednesday it plans to urge a New York federal judge to keep a dispute over whether the provider must halt arbitration between an investor and a salsa company after a Mexican court ordered it stopped.

  • November 16, 2017

    ChinaCast Ch. 11 Confirmation Delayed Over Filing Issues

    The judge presiding over the bankruptcy case of ChinaCast Education Corp. abruptly adjourned the company's Chapter 11 plan confirmation hearing on Thursday, finding the debtor’s last-minute request for approval of a shareholder settlement and a post-petition financing adjustment troubling.

  • November 16, 2017

    Del. Court Says Riverstone Letter Key In $180M Suit

    A potential $180 million dispute over property management company Riverstone National Inc.’s sale to another firm in 2014 could largely turn on the intent of a two-page letter and a shareholder group’s failure to raise its losing bid for the company, a Delaware vice chancellor said Thursday.

  • November 16, 2017

    PBGC Blasts Pilots' Fiduciary Breach Claims At DC Circ.

    The Pension Benefit Guaranty Corp. asked a D.C. Circuit panel Thursday to quash a breach of fiduciary duty claim from former Delta Air Lines Inc. pilots who say the government agency intentionally miscalculated their benefits when it took on their pension commitments as part of the airline’s 2016 bankruptcy.

  • November 16, 2017

    $120M Barclays Deal Attys Reduce Fee Request By $8M

    Lawyers who sought 30 percent of a $120 million settlement they struck with Barclays PLC for investors who accused the bank of manipulating the London Interbank Offered Rate told a New York federal judge on Wednesday that they’d accept just 20 percent of the settlement pot for now after she raised questions about the payout.

  • November 16, 2017

    Pharma Trading Suspects Denied Bid To Trim Suit

    A Massachusetts federal judge on Thursday refused to trim a lawsuit alleging insider trading by two former employees of Akebia Therapeutics Inc. and Merrimack Pharmaceuticals Inc.

  • November 16, 2017

    Avenue Capital $6M MagnaChip Fraud Deal Tossed Again

    A California federal judge on Thursday refused for the second time to grant preliminary approval to a $6.2 million deal between MagnaChip Corp.'s majority shareholder Avenue Capital and the semiconductor products maker's common stock investors who sued for an alleged fraud scheme in which Avenue sold its shares at inflated prices.

  • November 16, 2017

    SEC Nears Deal With Jay Peak Owner In $350M EB-5 Suit

    The U.S. Securities and Exchange Commission indicated Thursday that it is close to a settlement with Jay Peak ski resort owner Ariel Quiros in its suit against him over his role in a $350 million EB-5 visa fraud suit.

  • November 16, 2017

    Zarrab Out Of Federal Lockup But Still In US Custody

    Reza Zarrab remains in federal custody, the U.S. government said Thursday, after news surfaced that the Turkish-Iranian businessman accused in Manhattan federal court of scheming to dodge American sanctions against Iran had been released from a detention facility on Nov. 8.

  • November 16, 2017

    Fisker Buyer Urges Del. Bankruptcy Court To Toss Stock Suit

    Wanxiang Clean Energy USA LLC and the firm it spun off after buying bankrupt electric carmaker Fisker Automotive urged the Delaware bankruptcy court Thursday to throw out a lawsuit from the liquidating trust challenging an equity sale it says was designed to dilute its stake in the spinoff.

  • November 16, 2017

    Prosecutors, SEC Say Investor Conned $1.4M From Retiree

    A former investment adviser defrauded a retiree out of about $1.4 million and used the money to pay off clients and family and buy a Bentley, federal prosecutors and the U.S. Securities and Exchange Commission have each alleged.

  • November 16, 2017

    Ex-Squire Patton Boggs Atty, Prosecutor Joins Nelson Mullins

    A former federal prosecutor and Squire Patton Boggs LLP attorney, who represents a client in the FIFA corruption scandal and has prosecuted New Jersey officials for public corruption, has joined Nelson Mullins Riley & Scarborough LLP.

Expert Analysis

  • Can The 'Remedial' Bar Survive Kokesh?

    Michael Weitman

    Although Kokesh concerned disgorgement, it is a potentially game-changing decision if its reasoning is extended to other sanctions previously viewed by the U.S. Securities and Exchange Commission as “equitable” or “remedial.” And in the case of an industry bar or suspension, there appears good reason to do so, says Michael Weitman of Seward & Kissel LLP.

  • Populist Pitchforks Come Out: Insider Trading And Equifax

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    Following the theft of data relating to about half the adult population of the United States, Kevin Coen, former securities and treasury counsel with Johnson Controls International, explores whether there is a basis to charge any of the Equifax executives with insider trading and highlights some lessons for practitioners.

  • Financial Crisis Anniversary

    Putting Our Nation’s Economy At Risk Again

    Phil Angelides

    Just a decade after financial disaster struck, the Trump administration, congressional Republicans and Wall Street are wantonly ignoring the lessons of history. The unknown is not if but when financial disaster will strike again, says Phil Angelides, who was chairman of the Financial Crisis Inquiry Commission.

  • How IT And Procurement Pros Can Inform Law Firm Budgeting

    Steve Falkin

    As law firms begin preparing for their annual budget review, Steve Falkin and Lee Garbowitz of HBR Consulting discuss why firm leaders should give their internal information technology and procurement teams a seat at the table.

  • What 2nd Circ. Did And Didn't Tell Us About RICO's Reach

    Robert Reznick

    The Second Circuit recently became the first court of appeals to address the "domestic injury" requirement for a private claim under the Racketeer Influenced and Corrupt Organizations Act. The Bascuñán v. Elsaca analysis appears to depart from RJR Nabisco in ways that other courts may ultimately confront, says Robert Reznick of Orrick Herrington & Sutcliffe LLP.

  • NY Regulator's Untenable Authority Over Confidential Info

    Pinchus Raice

    You may be surprised to learn that the New York State Department of Financial Services asserts that financial institutions are prohibited from disclosing confidential supervisory information, such as examination reports, to their outside counsel absent prior authorization. You may be even more surprised to learn that the source of DFS’ proclaimed authority does not appear to support the agency's contention, say Pinchus Raice and Du... (continued)

  • Getting Real About Artificial Intelligence At Law Firms

    Mark Williamson

    Artificial intelligence needs to be legally defensible in order to be useful to law firms. There are requirements for making this happen, says Mark Williamson, co-founder and chief technology officer of Hanzo Archives Ltd.

  • Perception Vs. Reality At Trial

    Martha Luring

    The long litigation life cycle for large, complex civil lawsuits provides ample time for clients and counsel to form strong opinions — often negative when based on adversarial exchanges — about the opposing trial team, their witnesses and their experts. Martha Luring of Salmons Consulting shares some common perceptions not always shared by jurors.

  • Countering Statutes Of Limitations With Equitable Estoppel

    David Newman

    There are only a few situations in which a New York plaintiff can avail itself of the discovery rule to delay the accrual of a cause of action. However, New York does offer parties a way to avail themselves of discovery-rule-like protections — the doctrine of equitable estoppel, say David Newman and Matthew Lippert of Sills Cummis & Gross PC.

  • Litigators, Wrangle That Data With Content Analysis

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    Content analysis offers scientific methods for making sense of large volumes of data generated by the internet. While content analysis is a nascent tool in litigation, its use by expert witnesses may transform the kinds of evidence considered by courts, say Lisa Tichy and Anna Shakotko of Cornerstone Research.