Securities

  • July 21, 2017

    Green Mountain Investors Win Cert. In Stock Drop Suit

    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.

  • July 21, 2017

    Puerto Rico Pension Law Spurs Bondholder Suit Against US

    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.

  • July 21, 2017

    CFTC Seeks Default Win Against No-Shows Over $13M Fraud

    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.

  • July 21, 2017

    Feds Look To Drop 'London Whale' Traders' Fraud Charges

    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.

  • July 21, 2017

    Investors Sue Tempur Sealy Over Mattress Firm Merger

    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.

  • July 21, 2017

    Attys For VW 3.0L Vehicle Owners Score $125M In Fees

    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.

  • July 21, 2017

    2nd Circ. Backs Trader’s $1.1M Unpaid-Wage Win, Adds Fees

    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.

  • July 21, 2017

    Chancery Appraisal Cuts Sprint-Clearwire Deal Price In Half

    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.

  • July 21, 2017

    Regulators Delay Volcker Enforcement For Foreign Funds

    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.

  • July 21, 2017

    Texas Judge Questions Arbitration For 'Indirect Customers'

    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.

  • July 21, 2017

    Investment Adviser Again Gets 20 Years In 2nd Circ. Remand

    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.

  • July 21, 2017

    Biz Groups Continue 5th Circ. Attack On DOL Fiduciary Rule

    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.”

  • July 21, 2017

    SEC Fights To Keep Alive Suit Over $17M Stock Scheme

    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.

  • July 21, 2017

    Investment Adviser Takes SEC Admin Judge Case To Justices

    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.

  • July 21, 2017

    Gov't Wants 'Serious' Prison Time For 26-Year-Old Fraudster

    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.”

  • July 21, 2017

    Ex-ArthroCare CEO Can't Escape Wire Fraud Charges

    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.

  • July 21, 2017

    Investors Say SeaWorld Can't Mark Every Doc Confidential

    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.

  • July 21, 2017

    Chinese Students Ask To Join $89M EB-5 Scam Suit

    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.

  • July 21, 2017

    CORRECTED: Ocwen Reaches $56M Deal In Investors' Suit

    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.

  • July 21, 2017

    UK Litigation Roundup: Here's What You Missed In London

    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.

Expert Analysis

  • Rebuttal

    The Future Of Litigation Finance Is Analytics

    Eva Shang

    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.

  • Series

    My Strangest Day(s) In Court: The Life Partners Bankruptcy

    Joseph Wielebinski

    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.

  • Petrobras Does Little To Clarify Class Ascertainability

    Jonah Knobler

    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.

  • When Del. Courts May Reject Corwin Cleansing: Some Clarity

    Gail Weinstein

    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.

  • Where AI Meets Cybersecurity And The Legal Profession

    Randy Sabett

    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.

  • New Audit Report Standard Requires New Risk Considerations

    Michael Braverman

    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.

  • Looking At The EU Market Abuse Regulation 1 Year Later

    Michelle Moran

    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.

  • Opinion

    Why 'Class Action Attorney Fees' Are Such Dirty Words

    Dan Karon

    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 SEC's New Enforcement Tool?

    David Axelrod

    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.

  • Investor Recovery Strategies Following ANZ Securities

    Serena Hallowell

    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.