Securities

  • February 20, 2018

    Cohen Can't Seal Suit Over Alleged Harassment At Firm

    Steven A. Cohen’s investment firm lost a bid to seal a current employee’s lawsuit alleging widespread sexual discrimination Tuesday when a New York federal judge ruled there was no reason to keep the allegations confidential while the parties suss out whether the case should be arbitrated.

  • February 20, 2018

    State Securities Cops Filling In For Feds On Fiduciary Beat

    A high-profile complaint filed by Massachusetts' top securities cop against Scottrade for allegedly violating conflict-of-interest laws is a sign that state regulators will be stepping in to fill a perceived void in federal policing of retirement account advisers, legal experts said Tuesday.

  • February 20, 2018

    Wilmington Suit Over Ex-Chesapeake CEO's $464M Debt Stays

    A New York federal judge on Friday largely left intact a suit brought by Wilmington Trust National Association over a $464 million loan guaranty from the late Chesapeake Energy CEO and part-owner of the NBA's Oklahoma City Thunder, finding the court has jurisdiction to hear the case.

  • February 20, 2018

    NY Accountant Pleads Guilty In Stock Manipulation Scheme

    A Cedarhurst, New York, accountant on Tuesday copped to his role in a long-running stock market manipulation scheme that netted millions in illegal profits between 2014 and 2016, federal prosecutors said.

  • February 20, 2018

    Ex-Citadel Plastics CEO Demands Advancement Of Legal Fees

    The former president and CEO of Citadel Plastics Holdings LLC filed a complaint late Friday in Delaware seeking advancement of his legal fees incurred in relation to the $800 million acquisition of the company and a federal criminal investigation into alleged fraud.

  • February 20, 2018

    Judge Nixes LendingClub Investor Bid For Underwriter Docs

    Morgan Stanley, Goldman Sachs and the other underwriters of LendingClub Corp.'s $1 billion initial public offering for now don't have to produce roughly a thousand documents sought by a class of investors suing the peer-to-peer lending company for alleged stock fraud, a California federal judge ruled Tuesday.

  • February 20, 2018

    Woodbridge Ponzi Defendant Seeks Toss Of SEC Charges

    Ponzi-scheme suspect Robert Shapiro asked a Florida federal court Tuesday to dismiss the Securities and Exchange Commission’s case against him, saying the mortgage notes he sold were not securities.

  • February 20, 2018

    Swift Action Called For In Pacific Drilling Ch. 11 Case

    Turning down calls for mediation in the Chapter 11 case for Pacific Drilling, a New York bankruptcy judge on Tuesday questioned the company’s reorganizing efforts to date and said he expects quick signs of progress in its restructuring plan talks with creditors.

  • February 20, 2018

    High Court Turns Away Fannie, Freddie Investor Appeals

    The U.S. Supreme Court on Tuesday denied a plea from investors hoping for reconsideration of their case challenging the federal government’s conservatorship of Fannie Mae and Freddie Mac, reinforcing a lower court’s ruling that the Federal Housing Finance Agency cannot be sued over its role in managing the mortgage finance duo.

  • February 20, 2018

    One Count Survives In Regency, Energy Transfer Merger Suit

    A single claim for breach of a limited partnership against natural gas company Regency GP LLC survived a second dismissal try Tuesday after a Delaware Chancery Court determined the pleading was sufficient to show Regency’s board may have known its $11.2 billion merger with Energy Transfer Partners LP was not in its best interest.

  • February 20, 2018

    Del. Justices Revive Suit Over Diamond's $2B Sale To Apollo

    The Delaware Supreme Court on Tuesday revived a shareholder suit contesting Diamond Resorts International's $2.2 billion sale to Apollo Global Management, saying Diamond’s board should have disclosed why the company’s founder opposed the sale.

  • February 20, 2018

    Ex-UBS Trader Gets Spoofing, Fraud Counts Nixed Over Venue

    A Connecticut federal judge on Monday axed the criminal spoofing and commodities fraud counts facing a former UBS AG trader accused of scheming to manipulate the precious metals market, blasting the government’s handling of the case and refusing to scrap its remaining conspiracy charge in order to let federal prosecutors have a mulligan.

  • February 20, 2018

    United's $37M Deal For Fired Execs Hurt Co., Investor Says

    An institutional investor in the parent company of United Airlines filed an amended derivative suit Tuesday in Delaware Chancery Court alleging the company’s directors breached their fiduciary duties by awarding $37 million in severance packages to executives terminated for their roles in a bribery scandal.

  • February 20, 2018

    2nd Circ. Ruling Ends Exxon Free Speech Claims, Judge Told

    The Second Circuit’s recent decision that the First Amendment does not shield social welfare organizations from disclosing their donors should also undermine Exxon Mobil Corp.’s free speech claims against state climate change probes, New York Attorney General Eric Schneiderman’s office told a federal judge Friday.

  • February 20, 2018

    Ex-Katten Muchin Atty Says Jury Misconduct Tainted Trial

    Attorneys for former Katten Muchin Rosenman LLP partner Evan Greebel on Saturday gave the most detailed account to date of a raft of purported jury misconduct they say plagued the trial of the onetime attorney to Martin Shkreli, arguing that Greebel’s conviction should be quashed.

  • February 20, 2018

    $300M Emergency Loan Approved For Puerto Rico Electric Co.

    Puerto Rico’s ailing power utility on Monday was authorized to accept a $300 million unsecured loan from the commonwealth to stave off an imminent blackout, after the utility’s creditors successfully fought off an earlier $1 billion secured loan proposal.

  • February 20, 2018

    BP Says Some Claims In Deepwater Suits Are Time-Barred

    BP PLC has asked a Texas federal court to dismiss claims from two-thirds of the investor suits in multidistrict litigation related to the 2010 Deepwater Horizon spill, arguing that a recent U.S. Supreme Court case made clear that some claims based on company statements from before the spill should be barred by the statute of repose.

  • February 20, 2018

    Shuttered Texas Energy Co. Says Bribe Refusal Cost It $470M

    A Houston energy company says its refusal to pay a bribe to officials with Venezuela's state-run energy company Petroleos de Venezuela SA cost it $470 million and forced it out of business, according to a federal lawsuit filed in Houston on Friday.

  • February 20, 2018

    Railroad Cos. Tell High Court $13.3M In Options Not Taxable

    Subsidiaries of the Canadian National Railway Co. asked the U.S. Supreme Court on Friday to reverse a Seventh Circuit decision and conclude that $13.3 million in stock options given to their employees was not taxable income under a federal railroad law.

  • February 20, 2018

    SEC Settles Suits Over $1.8M Shell Company Scheme

    Three Israeli residents, a Washington, D.C., attorney and an Israeli accountant and his Baltimore-based firm have settled lawsuits with the U.S. Securities and Exchange Commission that alleged the group schemed to create numerous shell companies that made them more than $1.8 million in profits, agreeing to disgorgements and penny stock bars.

Expert Analysis

  • Series

    Judging A Book: Duncan Reviews 'Justice And Empathy'

    Judge Allyson Duncan

    In "Justice and Empathy: Toward a Constitutional Ideal," the late Yale Law School professor Robert Burt makes a compelling case for the undeniable role of the courts in protecting the vulnerable and oppressed​. But the question of how the judiciary might conform to Burt’s expectations raises practical problems​, says U.S. Circuit Judge Allyson Duncan of the Fourth Circuit. ​

  • SEC, CFTC Whistleblowers Dodge A Devastating Tax Bullet

    Gary Aguirre

    Before the brief government shutdown last week, whistleblowers destined to receive bounties from the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission faced devastating tax liability. But the act that reopened the government vaporized the bullet about to strike this narrow class of whistleblowers, says Gary Aguirre, a former SEC staff attorney.

  • D&O Insurance Coverage For Government Investigations

    Caroline Meneau

    Recent insurance decisions underscore the importance of understanding how directors and officers liability insurance applies in government investigations. Patriarch v. AXIS is particularly interesting because the insurer wanted to define "claim" more broadly than the policyholder, say Caroline Meneau and Brian Scarbrough of Jenner & Block LLP.

  • 2nd Circ. Ruling May Broaden Common D&O Policy Exclusion

    Kevin LaCroix

    A recurring directors and officers insurance issue is the question of whether or not coverage for a claim is precluded under the relevant policy’s professional services exclusion. The Second Circuit’s recent opinion in a coverage dispute arising out of the Facebook initial public offering could extend the exclusion’s preclusive effect far beyond the intended purpose, says Kevin LaCroix of RT ProExec.

  • Your Case Was Remanded By The MDL Court — Now What?

    Brandon Cox

    Multidistrict litigation is an ever-expanding driver of product liability litigation, but when the MDL process runs its course there is often still a trial to be had, and there are strategic and practical decisions to consider once a case has been remanded. Brandon Cox and Charissa Walker of Tucker Ellis LLP offer tips on how to navigate the remand process.

  • The Art Of The Litigation Funding Deal

    Julia Gewolb

    As litigation funding becomes more widespread, greater complexity and variability in funding deals are to be expected. All claimants should consider certain key questions on the economics of single-case funding when considering or comparing funding terms, says Julia Gewolb of Bentham IMF.

  • Pitfalls Of Voluntary Remediation By Investment Firms

    Robin Bergen

    With the U.S. Securities and Exchange Commission recently signaling that the asset management industry is a key priority, firms must consider voluntary remediation as part of any strategy for managing regulatory exposure. But remedial measures should be carefully tailored to avoid new problems, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • 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.