Securities

  • July 20, 2017

    SEC Fines Seattle Firm Over Conflicts Of Interest

    The U.S. Securities and Exchange Commission on Wednesday announced that a Seattle-based investment adviser and brokerage firm agreed to pay disgorgement and a civil fine to settle allegations it failed to disclose a conflict related to a financial incentive to favor certain mutual funds.

  • July 20, 2017

    Health Data Co. Owner Gets 10 Years For Investor, Tax Frauds

    The CEO and founder of health care data company VitalSpring Technologies Inc. will serve 10 years in prison and hand over nearly $58 million in restitution and back taxes after pleading guilty to defrauding his investors and not paying employment taxes, prosecutors said Wednesday.

  • July 20, 2017

    UK Sets Out New Framework For Insurance-Tied Securities

    The U.K. Treasury released details Thursday of a new regulatory and tax regime to help Britain break into the surging global trade in insurance-linked securities, which could be worth £87 billion ($113 billion) by 2019.

  • July 20, 2017

    Financial Sector Tweaks Made To EU Whistleblower Measures

    Members of the European Parliament have proposed changes to a legislative motion for a European Union-wide whistleblowing protection framework, including new text that highlights the role of the financial sector in previous scandals.

  • July 19, 2017

    SEC Reduces Disgorgement Ask For $4M Pyramid Schemer

    The U.S. Securities and Exchange Commission asked a Texas federal judge on Wednesday to make a man and his company pay $3.1 million for defrauding fellow members of his pyramid scheme with a phony stock offering, saying a recent U.S. Supreme Court decision required the agency to scale back its disgorgement request.

  • July 19, 2017

    Chancery Tosses Suit Over Swift Founder's Borrowing

    A Delaware Chancery judge on Wednesday threw out derivative claims alleging Swift Transportation Co.’s board failed to control founder and retired CEO Jerry Moyes' practice of borrowing against his stake in the company, ruling that “at bottom” the suing shareholder simply disagrees with the directors’ business judgment.

  • July 19, 2017

    Trump Banking Noms To Get Senate Hearing Next Week

    The Senate banking committee on Wednesday said it would hold confirmation hearings next week for nominees to fill two key bank regulatory positions and hasten the pace of the Trump administration’s planned rollback of bank rules.

  • July 19, 2017

    Arconic Didn't Disclose Panel Sales Risks In IPO Docs: Suit

    Arconic Inc. was hit with another shareholder suit in New York federal court on Tuesday over its disclosures related to its sales and marketing of flammable exterior cladding panels that reportedly contributed to the rapid spread of the deadly June 14 blaze at London's Grenfell Tower.

  • July 19, 2017

    VW Bondholders Can Press On In Emissions Scandal MDL

    Bondholders can continue to bring a putative class action against Volkswagen alleging inflated bond values caused by the 2015 diesel emissions scandal, a California federal judge ruled Wednesday, though he trimmed some claims against corporate and individual defendants.

  • July 19, 2017

    Madoff Trustee Gets 2nd Crack At 2nd Circ. RBS Case Appeal

    A New York bankruptcy judge unwound his own decision refusing to let the Bernie Madoff bankruptcy trustee take an RBS clawback case dismissal to the Second Circuit, finding Wednesday that because the judge issued his decision too late, he hadn’t had the jurisdiction to make it.

  • July 19, 2017

    Shkreli Trial On Hiatus Over Gov't Evidence Gambit

    A Brooklyn federal judge on Wednesday put the securities fraud trial of Martin Shkreli on hold after prosecutors sought to introduce a host of investor documents without calling those witnesses to testify, sounding skeptical about the government's tactic. 

  • July 19, 2017

    NY Atty Charged Over Pump-And-Dump Scheme

    Federal prosecutors in Florida charged a New York attorney on Wednesday over his alleged role in a pump-and-dump scheme in which several co-conspirators issued shares in fraudulent shell companies and sold them to investors at a profit.

  • July 19, 2017

    Fla. Court Misconstrued FINRA Code, Trusts Tell 11th Circ.

    Two offshore trusts have asked the Eleventh Circuit to let them pursue a $100 million Financial Industry Regulatory Authority arbitration against Canadian brokerage Pictet Overseas Inc., saying the Florida federal court that blocked their claims misinterpreted FINRA's code when determining whether the trusts could be considered customers of the firm.

  • July 19, 2017

    Brit Charged In $37M Bitcoin, Office Co. Scam Skips Court

    A British man on the lam from the FBI and the U.S. Securities and Exchange Commission who stands accused of raising $37 million from investors in fraudulent schemes involving a bitcoin trading company and a co-working startup on Wednesday skipped a hearing on the New York federal civil case, surprising no one.

  • July 19, 2017

    SEC Settles Insider Trading Claims From Apple’s $355M Deal

    A former IT administrator of AuthenTec Inc. has settled the U.S. Securities and Exchange Commission’s claims that he traded on nonpublic information ahead of the fingerprint sensor maker’s $355 million sale to Apple Inc.

  • July 19, 2017

    MF Global Insurer Loses Appeal Bid Over Bermuda Suit

    A New York federal judge has denied a bid from defunct brokerage MF Global’s excess insurer Allied World to challenge bankruptcy court orders issued after the insurer failed to obtain permission before seeking to arbitrate a coverage dispute in Bermuda, finding the orders unripe for appeal.

  • July 19, 2017

    SEC Sues 2 Men Over $3.8M 'Matched Trading' Scheme

    The U.S. Securities and Exchange Commission sued two men with checkered pasts in the securities industry in San Diego federal court Wednesday for an alleged $3.8 million scheme to manipulate the prices of two companies' shares by making it appear as if third parties where trading in them.

  • July 19, 2017

    Fintech Co. Wins Court-Ordered Access To Swap Servicer

    Financial technology firm trueEX LLC won a preliminary injunction on Tuesday from a New York federal court granting it access to the interest rate swap trading network of MarkitSERV Ltd. while an antitrust lawsuit between the pair plays out.

  • July 19, 2017

    Trump To Nominate Hester Peirce As SEC Commissioner

    The Trump administration is nominating Hester M. Peirce to the U.S. Securities and Exchange Commission, nearly two years after the research fellow and former Senate aide was first tapped for the vacant Republican seat, the administration announced Tuesday.

  • July 19, 2017

    Panera Shareholders Drop Remaining Merger Suits

    Three more Panera Bread Co. shareholders have agreed to drop proposed class actions in Missouri and Delaware federal court accusing the fast-casual restaurant chain of providing insufficient disclosures related to its $7.5 billion acquisition by JAB Holding, saying a June supplemental filing by the company addressed their concerns.

Expert Analysis

  • Where AI Meets Cybersecurity And The Legal Profession

    Randy Sabett

    Artificial intelligence and machine learning will continue to be a major focus for the legal community, whether as an isolated topic, as it intersects with cybersecurity, or within the legal profession itself. Each of these raises unique concerns for attorneys, says Randy Sabett, vice chair of Cooley LLP's privacy and data protection practice group.

  • New Audit Report Standard Requires New Risk Considerations

    Michael Braverman

    The Public Company Accounting Oversight Board’s new audit report standard introduces many changes, but the disclosure of critical audit matters may present the most significant implications and may lead to litigation against auditors, say Michael Braverman and Christopher Ekimoff of Resolution Economics LLC.

  • Looking At The EU Market Abuse Regulation 1 Year Later

    Michelle Moran

    The European Union's Market Abuse Regulation, which went into effect in July 2016, contains rules on insider dealing, unlawful disclosure of inside information and market manipulation. As a consequence of the increased burden on asset managers and bond issuers, the popularity of listing debt in European multilateral trading facilities has declined, say Michelle Moran and John Young of Ropes & Gray LLP.

  • Opinion

    Why 'Class Action Attorney Fees' Are Such Dirty Words

    Dan Karon

    What drives disdain for plaintiffs class action lawyers getting paid? While stupid class actions filed by feckless lawyers are a disgrace, good class actions are essential. Without risk-taking plaintiffs lawyers, there would be no defense lawyers, and corporate cheaters would run amuck, ravaging consumers and victimizing well-behaving companies, says Daniel Karon of Karon LLC.

  • The SEC's New Enforcement Tool?

    David Axelrod

    The U.S. Securities and Exchange Commission’s recent suit against Alpine Securities Corp., alleging that the broker-dealer violated the Bank Secrecy Act by failing to file suspicious activity reports, is not an isolated event but rather appears to be part of a trend, say attorneys with Ballard Spahr LLP.

  • Investor Recovery Strategies Following ANZ Securities

    Serena Hallowell

    After the U.S. Supreme Court's decision in ANZ Securities, the rise in parallel individual suits is poised to go national. Securities defendants may come to regret the opinion, though it may feel like a victory today, say attorneys with Labaton Sucharow LLP.

  • Shareholders Want More Climate Change Risk Disclosure

    Jane Montgomery

    Shareholders recently voted for more disclosure of future climate change impact on ExxonMobil's business outlook. This raises two questions, say Jane Montgomery and David Loring of Schiff Hardin LLP: What climate risks do investors want to know about? And how can a business disclose them?

  • Weekly Column

    Innovating For Wise Juries: Interim Arguments

    Roy Futterman

    By allowing attorneys to summarize what has just occurred in testimony and how it fits into the wider case narrative, courts can substantially improve juror comprehension through every step of a trial. Yet interim arguments are not practiced regularly, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Unstructured Data Is Just The Tip Of The Iceberg

    David Turner

    Recent amendments to the Rules of Civil Procedure mean issues like spoliation, sanctions and adverse impacts are focus areas for many attorneys, providers and clients. David Turner of FTI Consulting Inc. discusses the technological best practices regarding preservation and proportionality, as well as the challenges associated with clients' structured data.

  • Petrobras Strikes Heavy Blow Against Use Of Event Studies

    J.B. Heaton

    In Petrobras, the Second Circuit rejected the practice of using statistically unreliable event studies to establish — without consideration of other evidence — that alleged securities fraud had no impact on the stock price of the accused fraudster, says J.B. Heaton of Bartlit Beck Herman Palenchar & Scott LLP.