Securities

  • September 20, 2017

    Greenberg Traurig Pays $9.8M To Settle Lender's Claims

    Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.

  • September 20, 2017

    2nd Circ. Overturns Ex-DHB CEO's Restitution, Keeps Bail

    The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.

  • September 20, 2017

    White Collar 'Goes Dark' With Rise Of Secret Messaging Apps

    White collar suspects’ use of email and other electronic communications about their illicit activity has been a boon to prosecutors for decades, but the rise of encrypted messaging apps and other new technology may be a roadblock to Wall Street prosecutors accustomed to a run of successes.

  • September 20, 2017

    DOL's Proposed Fiduciary Rule Delay Draws 131 Comments

    The comment period on the U.S Department of Labor's proposal to delay parts of its fiduciary rule for retirement account advisers closed Friday, with a chorus of industry stakeholders, investor advocates and think tanks weighing in on what freezing key provisions of the rule until July 2019 might mean. Here, Law360 looks at what financial groups, politicians, individuals and others had to say.

  • September 20, 2017

    DOJ Says Madoff Victim Payouts To Begin By Year's End

    The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.

  • September 20, 2017

    Feds Say Platinum Fund Downfall Plays Into Union Graft Case

    Manhattan federal prosecutors on Tuesday said a jury deciding if Platinum Partners LP's founder bribed a union official for investments should hear evidence that Platinum's principal fund was losing investors at the time.

  • September 20, 2017

    US Warns Banks To Watch Out For Corrupt Venezuelan Cash

    A government financial crimes watchdog on Wednesday warned U.S. banks to be on the lookout for attempts by Venezuelan government officials to funnel illicit funds into American real estate and other markets.

  • September 20, 2017

    Yellen Says Fed Looking At Potential Wells Fargo Sanctions

    Federal Reserve Chair Janet Yellen on Wednesday warned that the central bank was looking closely at taking actions against Wells Fargo & Co. for its “egregious and unacceptable” sales practices and other problems.

  • September 20, 2017

    OvaScience Board Seeks Derivative Case Transfer To Mass.

    The directors of fertility treatment developer OvaScience Inc. on Tuesday asked a Delaware federal judge to transfer a derivative action filed in the First State to Massachusetts, where the company is headquartered and where similar suits over excessive director compensation have already been filed.

  • September 20, 2017

    Madoff Trustee Can Proceed With $2.2M Clawback Suit

    The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.

  • September 20, 2017

    Ex-Fiber Optics Boss Accused Of $2M Insider Trading Scheme

    The former CEO of a fiber optics company that was bought by Corning Inc. last year was arrested Wednesday after being criminally charged and sued by the U.S. Securities and Exchange Commission for allegedly using insider information and secret brokerage accounts to make $2 million.

  • September 20, 2017

    Insurer Still On Hook For Post-Merger Coverage In BCB Row

    A New Jersey federal judge Monday found the dissolution of the original policyholder in a merger did not relieve Progressive Casualty Insurance Co. of the duty to defend the post-merger bank from a stockholder suit.

  • September 20, 2017

    EXCLUSIVE: Boutique Tiber Hudson Forming In New York, DC

    Five lawyers are soon joining forces to open a boutique law firm — Tiber Hudson LLC — that will have offices in New York City and Washington, D.C., and will focus on real estate, securities, government contracts and banking, among other areas, one of the five attorneys told Law360 on Wednesday.

  • September 20, 2017

    KBC, Motley Rice To Lead Cloud Computing Co. Investor Suit

    A New York federal judge gave European investment firm KBC Asset Management NV and its lawyers at Motley Rice LLC the green light on Tuesday to lead a proposed securities fraud class action against cloud computing company Rackspace Hosting Inc.

  • September 20, 2017

    EU-US Regulators Close To Reaching Equivalence Decision

    A decision on the equivalence of securities and derivatives markets regulation in the U.S. and the European Union could be finalized in the next few months after intense negotiations between regulators on both sides of the Atlantic, a senior EU official said Wednesday.

  • September 20, 2017

    Marathon Oil To Pay $33.1M In Foreign Tax Settlement

    Marathon Oil told a Texas federal court Tuesday that it has agreed to pay a group of limited partners $33.1 million to settle claims that the company cheated them out of millions in foreign tax credits in connection with a gas processing plant in Equatorial Guinea.

  • September 20, 2017

    ESMA Gets New Supervision Powers In EU Regulator Overhaul

    The European Securities and Markets Authority will be handed a greater role in market abuse investigations under European Union plans to make the watchdog the direct supervisor for a range of capital markets, the bloc’s head of financial services said Wednesday.

  • September 19, 2017

    Equifax Probes Take Data Breach Scrutiny To Next Level

    The rash of investigations launched in the wake of Equifax's massive data breach signal a more open and aggressive approach to policing such incidents that is likely to leave companies rethinking their plans for responding to cyberattacks and cooperating with officials, attorneys say.

  • September 19, 2017

    CFTC Cuts University Slack On Billion-Dollar Endowment

    The U.S. Commodity Futures Trading Commission recently told a private university that it does not need to register as a commodity pool operator or commodity trading adviser, agreeing that limiting the regulatory risk of the university’s billion-dollar endowment is beneficial.

  • September 19, 2017

    Ex-Atty Gets 38 Months For Defrauding Investors Of $1.4M

    A New York federal judge on Tuesday sentenced a former attorney to 38 months in prison for scamming four victims out of $1.4 million in purported real estate investments while he was under judicial supervision on three different fraud-related indictments.

Expert Analysis

  • Founders Find Leverage In Investors’ Short Memories

    Les Trachtman

    The only rationale for why the capital markets have succumbed to the trendy scheme of dual-class stock is that economist John Kenneth Galbraith was right — when it comes to financial markets, we do have short memories. History is littered with well-meaning founders and chief executives who succumbed to the seduction of wealth and power, says Les Trachtman, CEO of The Trachtman Group.

  • Ransomware Issues Too Often Lost In The Shuffle: Part 2

    John Reed Stark

    Notification responsibilities relating to a ransomware attack can become complicated and may not precisely align with other cybersecurity-related notification obligations and triggers, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • Charting A Course To Business Judgment Review

    Stacy Nettleton

    The Delaware Chancery Court’s recent decision to dismiss a shareholder suit challenging the sale of Martha Stewart Living Omnimedia confirms that there is a path to business judgment rule review, at the pleading stage, of third-party mergers of controlled companies where disparate consideration creates a conflict for the controlling stockholder, say Stacy Nettleton and Christie Di Guglielmo of Weil Gotshal & Manges LLP.

  • Blockchain Cos. Must Beware SEC Intervention Risks

    Herbert Kozlov

    The U.S. Securities and Exchange Commission recently suspended trading in securities of three public blockchain-related businesses in a period of just over two weeks, highlighting the fact that the spot market for digital tokens is no longer the “Wild West,” say attorneys with Reed Smith LLP.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.

  • Recruit Or Resist? Corporate Culture And The Whistleblower

    Jordan Thomas

    While resisters remain hopeful that institutionalized bullying will silence and marginalize the whistleblower, they face a punishing reality when we walk our whistleblower clients into the safe house that is federal law enforcement, says Jordan Thomas, chairman of the whistleblower representation practice at Labaton Sucharow LLP.

  • OCC Takes The Lead In Establishing Deregulatory Agenda

    V. Gerard Comizio

    Under acting Comptroller Keith A. Noreika, the Office of the Comptroller of the Currency has staked out a position as the first of the federal banking agencies to take substantial steps to implement a new financial deregulatory agenda. However, agency turf battles could begin to slow the pace, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • Opinion

    Dealing With Difficult Lawyers

    Alan Hoffman

    Some lawyers tend to be overly aggressive, regarding law practice as a zero-sum game in which there are only winners and losers. The best response is to act professionally — separating the matter at hand from the personalities. But it is also important to show resolve and not be vulnerable to intimidation, says Alan Hoffman of Husch Blackwell LLP.

  • SEC Continues Efforts To Facilitate Capital Formation

    Leslie Silverman

    The U.S. Securities and Exchange Commission’s recent guidance regarding what financial information companies can omit from draft registration statements they submit confidentially addresses a difficulty that commonly arises in preparing for an initial public offering, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Don't Want To Be The Next Kodak? Embrace Blockchain

    Dario de Martino

    The opportunities presented by blockchain and cryptocurrencies are exciting. But failure to understand these technologies may trigger a Kodak moment, and put successful companies at the mercy of those that quickly pivoted, say Dario de Martino and Spencer Klein of Morrison & Foerster LLP.