Securities

  • February 15, 2018

    Fiat Says Shares Were Unaffected By ‘Defeat Device’ Claims

    Fiat Chrysler has urged a New York federal court not to certify a class of investors accusing executives of falsely stating Chrysler vehicles didn’t contain “defeat devices” in an effort to inflate share prices, saying the alleged misrepresentations had no impact on the stock.

  • February 15, 2018

    A Chat With Hogan Lovells HR Chief Allison Friend

    In this monthly series, legal recruiting experts Amanda Brady and Amy Mallow of Major Lindsey & Africa interview law firm management from Am Law 200 firms about how they are navigating an increasingly competitive business environment. The second conversation is with Allison Friend, chief human resources officer for Hogan Lovells LLP.

  • February 14, 2018

    Puerto Rico Utility Creditors Unveil $534M Loan Offer

    Creditors of Puerto Rico’s ailing power utility on Wednesday offered a $534 million loan in a bid to head off the contentious $1 billion loan the utility is seeking from the Commonwealth, setting up a showdown over who will provide bridge funding ― and receive superpriority liens ― until federal aid dollars arrive.

  • February 14, 2018

    Trustee Fee Fight Prompts Ch. 11 Retroactive Closing Bid

    A bankruptcy successor to Millennium Lab Holdings II LLC urged a Delaware judge Wednesday to retroactively close its confirmed but under-appeal Chapter 11, arguing that inadequate notice of a sharp hike in U.S. trustee fees justified the move.

  • February 14, 2018

    Gold Sellers Say CFTC Order Shows UBS Helped Fix Prices

    A group of gold sellers told a New York federal judge Tuesday that a recent Commodity Futures Trading Commission sanctions order against UBS AG shows the Swiss bank should not be allowed to escape a suit accusing a group of international banks of manipulating the benchmark price of gold.

  • February 14, 2018

    Cascadian Investor Says $614M Deal Statement Omitted Info

    A shareholder of biopharmaceutical company Cascadian Therapeutics Inc. launched a class action on Tuesday in Delaware federal court alleging the company’s directors omitted material information from documents detailing a proposed $614 million merger deal with Seattle Genetics Inc.

  • February 14, 2018

    House Passes Changes To CFPB, SEC Disclosure Rules

    The House of Representatives passed a package of bills Wednesday altering CFPB mortgage disclosure rules, SEC oversight rules and companies’ disclosure requirements, with backers saying the legislation would help encourage growth in the markets.

  • February 14, 2018

    JP Morgan Beats Investor Suit Over Mutual Fund Fees

    A New York federal judge granted J.P. Morgan an early exit Wednesday from a proposed shareholder action over allegedly excessive fees charged to investors in one of its mutual funds, dismissing the case after finding the investor failed to show the fund's rates were disproportionately high.

  • February 14, 2018

    Credit Suisse Targeted In FCPA Probe Over Asia Hiring

    Credit Suisse Group AG revealed Wednesday that it is being investigated by the U.S. Department of Justice and the U.S. Securities and Exchange Commission for possible violation of the Foreign Corrupt Practices Act in relation to the bank's hiring practices in Asia.

  • February 14, 2018

    Insurer Needn't Cover Foods Co. In Ex-Leader's Fraud Suit

    A Washington federal judge found Tuesday that Cincinnati Insurance Co. needn’t cover Zaycon Foods Inc. for a fraud suit by a former co-leader of the company who claims he was ousted after investing millions, saying the suit doesn't contain any defamation claims and therefore isn't covered under advertising injury in the company's general liability policies.

  • February 14, 2018

    Mass. Regulator Accuses Adviser Of $1M Real Estate Scheme

    The Massachusetts securities regulator on Wednesday accused a North Shore investment adviser of running a real estate scheme over the past 26 years that has defrauded investors and clients, many of whom were elderly and some of whom have already died, out of more than $1 million.

  • February 14, 2018

    BNY Mellon Says Some ADR Investor Claims Are Time-Barred

    The Bank of New York Mellon on Monday sought to pare a proposed class action alleging it has been overcharging holders of American depositary receipts for converting their foreign-currency dividends and other cash distributions into U.S. dollars, telling a New York federal judge that a chunk of the investors’ claims are time-barred.

  • February 14, 2018

    ISN Investor Says Controllers Withheld Key Valuation Info

    A minority shareholder of ISN Software Inc. filed suit in Delaware Chancery Court on Wednesday, accusing the controllers of the company of withholding key information needed to adequately consider the fair valuation of its holdings and its rights to stock appraisal before a 2013 merger aimed at pushing out minority shareholders.

  • February 14, 2018

    Broker’s Bid For FINRA Docs On ‘Layering’ Rejected

    A New York federal judge on Tuesday rejected a broker’s request that the Financial Industry Regulatory Authority turn over its internal documents on a manipulative trading technique called layering, saying sharing them could undermine the regulator’s law enforcement work.

  • February 14, 2018

    3rd Circ. Snubs Fraudster Bar Owner’s Bid To Trim Sentence

    The Third Circuit on Tuesday affirmed the 6½-year sentence of a Philadelphia financial planner convicted of pilfering $400,000 from investors to buy a bar that later went bankrupt, saying the lower court was correct in finding he’d lied during the bankruptcy proceedings.

  • February 14, 2018

    Attorneys Predict Wave Of #MeToo Investor Suits

    The #MeToo reckoning unleashed last fall that has toppled an array of powerful American businessmen could trigger a wave of investor actions similar to a shareholder claim filed last week against Wynn Resorts for allegedly ignoring years of sexual misconduct complaints against its founder and CEO Steve Wynn, legal experts say.

  • February 14, 2018

    Pfizer Says Insurers Owe $30M For Off-Label Marketing Suit

    Pfizer Inc. is seeking $30 million in coverage from a trio of insurers for the settlement of a $400 million shareholder suit over off-label marketing, alleging the insurers are wrongly tying the dispute to unrelated cases, in a suit the insurers sought to remove to Delaware federal court Tuesday.

  • February 14, 2018

    Mayer Brown Grows With 2 New Partners In Finance Groups

    Mayer Brown LLP boosted its New York office with the addition of two new partners — a former Ropes & Gray LLP attorney specializing in private fund formation for its corporate and securities practice and the former global co-head of Allen & Overy LLP’s leveraged finance practice for its banking group.

  • February 14, 2018

    Ex-Simpson Thacher Clerk Upends Insider Trading Sentence

    The Third Circuit on Wednesday vacated a 46-month prison sentence for a former Simpson Thacher & Bartlett LLP managing clerk convicted over his role in a $5.6 million insider trading scheme, on the same day that a district court judge reduced the civil penalty sought by the U.S. Securities and Exchange Commission from $2 million to $25,000.

  • February 13, 2018

    SEC Initiative A More Efficient Fix For Adviser Conflicts

    A U.S. Securities and Exchange Commission program offering to waive financial penalties against investment advisers who self-report cases where they sold higher-priced funds to collect bigger fees could streamline efforts to clean up the industry and return money to overcharged clients, legal experts said Tuesday.

Expert Analysis

  • Power, Corruption And Lies: How Juries Are Responding

    Melissa Gomez

    The American public increasingly perceives that powerful people and institutions use their authority in selfish ways. And in the courtroom, jurors are homing in on where the power lies in a case story, and how that power is used. Those of us in litigation must heed the messages jurors are sending, says Melissa Gomez of MMG Jury Consulting LLC.

  • Smart Contracts Need Smart Corporate Lawyers

    Matthew O’Toole

    Given the operational and security risks involved, and the substantial digital asset values transacted, the rise of distributed ledger technology and smart contracts will create new opportunities and responsibilities for transactional lawyers, say attorneys with Potter Anderson Corroon LLP.

  • Reflections On 2017 FCPA Enforcement

    Mark Mendelsohn

    Despite significant Foreign Corrupt Practices Act enforcement activity in 2017, the Trump administration’s approach remains elusive and not readily characterized. The manner in which investigations are resolved in the coming year may help illuminate whether the current government will be more lenient toward U.S. companies than the Obama administration, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • How To Fix Your Broken Client Teams

    Mike O'Horo

    Law firms claim they create client teams to improve service. Clients aren’t fooled, describing these initiatives as “thinly veiled sales campaigns.” Until firms and client teams begin to apply a number of principles consistently, they will continue to fail and further erode clients’ trust, says legal industry coach Mike O’Horo.

  • Notable Trends In Foreign Securities Litigation

    Mark Willis

    In recent years, investors have been successful in securing significant recoveries overseas through group actions despite the fact that U.S.-style, opt-out class actions do not exist in most foreign forums. With the foreign securities litigation field now bustling, investors will increasingly need to navigate potential pitfalls, say Mark Willis and Rachel Avan of Labaton Sucharow LLP.

  • 10 Highlights From FINRA’s 2018 Priorities Letter

    Emily Gordy

    The Financial Industry Regulatory Authority's annual regulatory and examination priorities letter is a road map to areas on which FINRA will focus in the coming year. Firms must use this information to assess strengths, identify gaps and shore up weaknesses, says Emily Gordy, a partner at McGuireWoods LLP and a former senior vice president at FINRA.

  • Del. Walmart Ruling Might Bring New Derivative Strategies

    Jonathan Richman

    The Delaware Supreme Court's recent decision in a Walmart derivative suit should enhance defendants' ability to obtain dismissal of duplicative derivative actions on preclusion grounds. The ruling might also cause plaintiffs to take steps to appear in multiple forums to avoid preclusion risks, says Jonathan Richman, co-head of the securities litigation group at Proskauer Rose LLP.

  • 9th Circ. Decision Could Be Game-Changer For Investors

    Carol Villegas

    The Ninth Circuit on Wednesday issued an important decision in Mineworkers' Pension Scheme v. First Solar that serves to protect investor rights in securities class actions and will prevent companies that commit fraud from evading liability, say Carol Villegas and James Christie of Labaton Sucharow LLP.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.

  • DOJ Limitation On Agency Guidance Levels Playing Field

    Ronald Tenpas

    A new memo from the U.S. Department of Justice prohibiting DOJ litigators from treating any agency guidance document as binding offers needed relief to regulated parties, giving them a greater opportunity to push back against enforcement theories that rely on “clear” guidance regarding an underlying ambiguous or silent statute, say Ronald Tenpas and Gregory Etzel of Morgan Lewis & Bockius LLP.