Securities

  • November 17, 2017

    Aluminum Recycler Hits Ch. 11 With $400M In Liabilities

    Aluminum recycler Real Alloy Holding Inc. hit Chapter 11 on Friday in Delaware with more than $400 million in debt after a challenging secondary metal market and a series of one-time operational setbacks strained its cash flow and made it difficult to satisfy its debt obligations.

  • November 17, 2017

    Treasury Advises FSOC Take 'New Approach' To Nonbanks

    The U.S. Department of the Treasury on Friday called for the Financial Stability Oversight Council to take a “new approach” to safeguarding the financial system, urging the Dodd-Frank Act-created panel to shift away from tagging nonbank financial firms for tougher regulatory scrutiny and instead take an industrywide view that looks at particular products and activities.

  • November 17, 2017

    SEC Settles Ponzi Scheme Suit Against Ex-NFLer, Biz Partner

    A Massachusetts federal judge greenlit a deal Friday resolving the U.S. Securities and Exchange Commission’s allegations that a former NFL player, his business partner and three companies they founded together ran a $31.7 million Ponzi scheme that involved convincing investors they were helping provide short-term loans to professional athletes.

  • November 17, 2017

    Trader Wants SEC Attys DQ’d Over Alleged Privilege Breach

    A trading firm that the U.S. Securities and Exchange Commission sued for allegedly giving foreign fraudsters access to U.S. markets asked a federal court in Manhattan on Thursday to throw the SEC’s trial team off the case, saying it seems to have had access to privileged attorney-client emails for two whole years.

  • November 17, 2017

    Lack Of SEC Enforcement Doesn't Mean PE Is Off The Hook

    The storm of U.S. Securities and Exchange Commission enforcement actions against private equity firms seems to have calmed, but industry players should beware that the regulator is still intent on policing improper practices throughout the financial world, meaning it could refocus on PE at any moment.

  • November 17, 2017

    'Long Siege' For Ex-Dewey Controller Ends With No Jail

    The former controller at Dewey & LeBoeuf LLP saw the end to what his attorney called a “long and arduous siege” on Friday when he was sentenced to 100 hours of community service after cooperating in the prosecution of his ex-colleagues for more than three years.

  • November 17, 2017

    Broadsoft Shareholders Sue To Block $1.9B Cisco Deal

    A proposed class of BroadSoft Inc. shareholders say Cisco Systems Inc.’s $1.9 billion bid for the company gives them a raw deal, accusing the telecommunications software company and its executives in Maryland federal court Thursday of keeping them in the dark ahead of a special vote on the proposed deal.

  • November 17, 2017

    3 Firms Guided Largest CMBS Loan In October

    Simpson Thacher & Bartlett LLP, Dechert LLP and Orrick Herrington & Sutcliffe LLP scored work on the largest commercial mortgage-backed securities loan in October, and that $955 million deal was one of numerous nine-figure loans that got done during the month.

  • November 17, 2017

    EU Tightens Endorsement Rules For Credit Rating Agencies

    Credit rating agencies based in the European Union starting in 2019 will have to explain to regulators why they are endorsing a rating by an agency based outside the EU, as Europe’s top securities regulator set out new requirements on Friday.

  • November 16, 2017

    Rice Energy Slips Proxy Actions After Mooting Disclosures

    Natural gas producer EQT RE LLC escaped several proposed class actions on Wednesday and Thursday over its acquisition by EQT Corp., two weeks after the company made disclosures designed to defang the investor lawsuits and shortly after the merger was completed.

  • November 16, 2017

    Big Banks Face Wider Treasury Auction-Fixing Suit

    A lawsuit accusing 20 of the biggest Wall Street banks of rigging the $13 trillion market for securities sold by the U.S. Department of the Treasury was expanded late Wednesday night with the filing of an amended complaint that alleges two interrelated conspiracies.

  • November 16, 2017

    You've Been Warned, SEC Head Says Of Cryptocoin Offerings

    Federal regulators have so-called initial coin offerings — cryptocurrency fundraising methods that have ballooned in popularity — squarely in their sights, the head of the U.S. Securities and Exchange Commission said Thursday.

  • 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.

Expert Analysis

  • Jury Persuasion In An 'Alt-Fact' World

    Shelley Spiecker

    Today's climate of “alternative facts” has jurors making decisions based on beliefs, emotions and social affiliations that often go unacknowledged or underappreciated. To present their case in the most persuasive manner possible, litigators should consider adapting to their audience when it comes to four psychological factors, say consultants with Persuasion Strategies, a service of Holland & Hart LLP.

  • Steps To Take As SEC Approves Audit Reporting Changes

    Stephen Quinlivan

    The new auditor reporting standard, recently approved by the U.S. Securities and Exchange Commission, will require more information with the stated intention of making audit reports more informative. However, the changes to the standard regarding disclosure of critical audit matters could do more harm than good, say attorneys with Stinson Leonard Street LLP.

  • Applying The Investors' Playbook To Legal Career Planning

    Howard Cohl

    Nothing has been more instrumental in my role as a legal recruiter than what I learned from a variety of hedge fund managers, venture capitalists and investment bankers — how to analyze a deal and make a decision quickly. It boils down to the traditional SWOT analysis, says Howard Cohl, director in Major Lindsey & Africa’s emerging markets group.

  • 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.