Securities

  • April 23, 2018

    Mass. Resident Stole $7M From Duped Investors, Jury Hears

    A Massachusetts man swindled would-be investors out of nearly $7 million in a desperate attempt to pay down a staggering pile of personal bills instead of putting their money into the market as he had promised, federal prosecutors told a jury Monday.

  • April 23, 2018

    Ex-BigLaw Atty Who Shot Wife Found Guilty Of Murder

    A former Fisher Phillips LLP partner who fatally shot his wife during a nighttime drive was convicted of felony murder on Monday, with an Atlanta jury rejecting the attorney’s contention that the shooting was an accident.

  • April 23, 2018

    Docufilm Maker Denied Access To Theranos Depo Videos

    Delaware’s Chancery Court on Monday refused to let Academy Award-winning documentarian Alex Gibney obtain the videotaped depositions of biotech venture Theranos Inc.’s executives in two now-settled securities suits, saying the videos were never filed with the court and thus cannot be handed over.

  • April 23, 2018

    Genetics Co. Hid Cancer Test Overbilling, Investor Says

    Myriad Genetics Inc. and its executives hid from shareholders that it was overbilling Medicare and Medicaid for a hereditary cancer test in a scheme that eventually drew the U.S. Department of Health and Human Services’ ire and caused the company's stock to slump, an investor in a proposed class action said in Utah federal court. 

  • April 23, 2018

    Investors Want Another Shot At Chipotle E. Coli Suit

    Investors on Friday asked a New York federal judge to let them file a third amended complaint alleging that Chipotle sunk its stock price by lying about the details of E. coli outbreaks, saying they have uncovered new information in the weeks since the suit was dismissed.

  • April 23, 2018

    Stanford Ponzi Scheme Receiver, Ex-GC Reach Settlement

    The receiver for victims of the Robert Allen Stanford Ponzi scheme has reached a confidential settlement in a clawback case against Stanford's onetime general counsel, and both parties asked a Texas federal judge Friday to pause the suit to give the attorney time to comply with the agreement.

  • April 20, 2018

    Orphaned By Feds, SEC Judges Find Ally In O'Melveny Advocate

    Administrative law judges at the U.S. Securities and Exchange Commission can no longer count on Solicitor General Noel Francisco to defend them in their upcoming fight before the U.S. Supreme Court, but they may not need him if an attorney invited by the court can convince the justices there was no constitutional foul in the way they were hired.

  • April 20, 2018

    Orbital ATK Ordered To Fork Over Docs In Securities Suit

    A Virginia magistrate judge has given Orbital ATK Inc. until May 1 to produce all of the documents that shareholders accused the company of withholding during discovery for their suit claiming they were misled by Orbital about losses incurred on a $2.3 billion U.S. Army ammunition deal.

  • April 20, 2018

    9th Circ. Splits From Similar Rulings On Tender Offer Suits

    Departing from circuit court rulings in five similar cases, the Ninth Circuit on Friday reversed a lower court's dismissal of a putative securities class action alleging Emulex Corp. concealed that Avago Technologies Ltd.'s $606 million acquisition offer was too low, holding that the investors’ claims require a showing of negligence rather than intentional wrongdoing.

  • April 20, 2018

    Windups, Jury Charge Loom In Wilmington Trust Trial

    Federal prosecutors and defense attorneys shipped 173 pages of jury-instruction proposals Friday to a federal judge hearing a criminal case in Delaware against four Wilmington Trust executives accused of hiding hundreds of millions of dollars in bad loans, with the words “past due” appearing 159 times.

  • April 20, 2018

    Disney Workers Urge 9th Circ. To Revive Valeant ERISA Suit

    Former Walt Disney Co. employees have urged the Ninth Circuit to revive their suit alleging their pension plan trustees breached a fiduciary duty by not monitoring a mutual fund’s investments in now-embattled Valeant, arguing the lower court incorrectly treated their allegations as stock-drop claims.

  • April 20, 2018

    2nd Circ. Affirms SEC’s $26M Win Over Ponzi Schemer

    The Second Circuit on Friday affirmed the lower court’s decision to grant the U.S. Securities and Exchange Commission’s summary judgment bid for a nearly $26 million judgment against convicted Ponzi schemer Francisco Illarramendi, saying the former hedge fund adviser’s claim he was denied the counsel of his choice was unevidenced.

  • April 20, 2018

    Puerto Rico Sales Tax Bond Fight Sparks Muni Market Anxiety

    Municipal bond investors are paying close attention to what happens in a pending court fight over the validity of bondholder liens on Puerto Rican sales tax, experts say, warning of widespread consequences should investments thought to be bankruptcy-proof turn out otherwise.

  • April 20, 2018

    Fitbit Investors' $8.25M Atty Fee Bid 'A Little Rich,' Judge Says

    A California federal judge on Friday approved a $33 million class action settlement resolving allegations that Fitbit Inc. hid problems with its fitness trackers and artificially inflated its stock price, but held off on awarding $8.25 million in attorneys’ fees, saying the amount “might be a little rich for this case.”

  • April 20, 2018

    Health Hires: Goodwin, Shook Hardy, Michael Best, Orrick

    The latest firms to expand their life sciences and health care abilities are Goodwin Procter LLP, Shook Hardy & Bacon LLP, Michael Best & Friedrich LLP, Orrick Herrington & Sutcliffe LLP, Harter Secrest & Emery LLP, Eversheds Sutherland and Cole Schotz PC.

  • April 20, 2018

    Third Person Charged With Fraud In $25M Crypto Card Plot

    Prosecutors charged a third Floridian on Friday in Manhattan federal court with defrauding investors out of more than $25 million using an initial coin offering, saying he and two others falsely touted the ICO as funding a cryptocurrency debit card linked to Visa and Mastercard.

  • April 20, 2018

    Ex-Aveo CFO Denied Quick Win In SEC’s Cancer Drug Suit

    A Massachusetts federal judge on Thursday denied a summary judgment bid from the only former Aveo Pharmaceuticals Inc. executive still fighting the U.S. Securities and Exchange Commission’s claims that the company misled investors about the likelihood of approval for its premier cancer drug.

  • April 20, 2018

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

    The last week has seen a contract dispute erupt between Russia's Sberbank and a fellow state-controlled bank in Azerbaijan, Greece's Alpha Bank sue more than a dozen Lloyd's syndicates, and underwriters and Lit Securities take on Morgan Stanley.

  • April 20, 2018

    Dean Foods Wants $45M Disgorged By Gambler Billy Walters

    Dairy company Dean Foods Co. wants the disgorgement of nearly $45 million in profits it says prominent gambler Billy Walters earned in an insider trading scheme with the company’s former chair, Tom Davis, from whom Dean is also seeking millions in damages in a Texas state court suit.

  • April 20, 2018

    DeVry Board Must Face Bulk Of Investor's False Ad Claims

    A shareholder's claims against the former DeVry University Group’s directors alleging the company falsely advertised the employment rates of its graduates mostly survived a motion to dismiss Friday when a Delaware Chancery Court judge ruled the facts in the complaint supported the claims.

Expert Analysis

  • Finance-Savvy Millennials Are Shifting Business Of Law

    Michael Perlich

    The impact of millennials has already been felt within the legal community by our eagerness to embrace new technologies. One way that we will have potentially even more impact lies in our willingness to embrace new ways of developing business and financing law, says Michael Perich of Burford Capital LLC.

  • Mass. Crackdown Reflects Increased State Regulation Of ICOs

    Christopher Conniff

    The top securities regulator in Massachusetts recently issued consent orders halting five initial coin offerings, reminding virtual currency market participants that they must be mindful of state regulators as well. This “sweep” is likely only the tip of the iceberg for ICOs in Massachusetts and in other states, say attorneys with Ropes & Gray LLP.

  • Opinion

    Attorney-Client Privilege Is Alive And Well

    Genie Harrison

    The FBI raid of the office of President Donald Trump’s personal lawyer set off a firestorm of controversy about the sanctity of the attorney-client privilege, epitomized by Trump's tweet that the "privilege is dead." But attorney-client privilege is never taken lightly — I have battle scars from the times I have sought crime-fraud exceptions, says Genie Harrison of the Genie Harrison Law Firm.

  • Money Laundering-Themed Securities Suits Are On The Rise

    Harry Dixon

    A recently settled shareholder suit against BancorpSouth was one in a series of securities class actions filed in the wake of money laundering-related enforcement actions. And this trend does not appear to be limited to the United States, says Harry Dixon of Taylor English Duma LLP.

  • Roundup

    Dissolving Practice

    Dissolving Practice

    In this series, experts discuss the unique aspects of closing a law firm, and some common symptoms of dysfunctionality in a firm that can be repaired before it's too late.

  • Series

    Dissolving Practice: How To Fix A Dysfunctional Law Firm

    Larry Richard

    I am often asked, “When there are one or more partner departures, what can a firm do to prevent this from escalating to a catastrophic level?” The short answer is “nothing.” Law firms need to adopt culture-strengthening lifestyles to prevent defections from occurring in the first place, says Larry Richard of LawyerBrain LLC.

  • Chicago Tax Revenue Scheme May Not Be Bankruptcy-Proof

    Raphael Janove

    Chicago has securitized its sales tax revenue to take advantage of the bankruptcy-remote mechanism and lower interest rates. However, an analysis of the transfer shows it may be classified as a financing, not a true sale, and may not be as bankruptcy-proof as hoped, says Raphael Janove of Eimer Stahl LLP.

  • What To Expect From The 2nd Criminal Spoofing Trial

    Jeffrey Brown

    Andre Flotron's upcoming criminal trial and the corresponding civil complaint demonstrate that regulators have the appetite to bring spoofing cases based largely on patterns observed in trade data. This data may be supplemented by the allegedly incriminating testimony of witnesses, say attorneys with Dechert LLP.

  • Insurers Cannot Rely On 'Absurd' Exclusion Applications

    Karthik Reddy

    An Indiana district court's recent decision in Emmis v. Illinois National illustrates the absurdity of broadly construing interrelated wrongful acts exclusions and reminds policyholders that they need not accept an insurer's broad application of policy exclusions that would result in nonsensical coverage determinations, say Karthik Reddy and Matthew Jacobs of Jenner & Block LLP.

  • Congressional Forecast: April

    Layth Elhassani

    As Congress returns to Washington for a three-week work period, President Donald Trump continues announcing new policy and personnel decisions. But with midterms looming, Congress is unlikely to make progress on legislation requiring compromise and bipartisanship, say Layth Elhassani and Kaitlyn McClure of Covington & Burling LLP.