Securities

  • April 19, 2018

    Margaritaville Developer Dodges Some Investor Claims

    A Louisiana federal court partly granted a restaurant developer's bid to toss a real estate investment firm's $3.4 million suit accusing it of lying about the potential profitability of two new Margaritaville restaurants in New Orleans and Minneapolis, letting the developer off the hook on two claims but keeping the other eight.

  • April 19, 2018

    Investors Say Live Nation’s Iffy Compliance Made Stock Drop

    The entertainment behemoth created by the $2.5 billion merger of Live Nation and Ticketmaster failed to tell shareholders that it may have violated a consent decree with the U.S. Department of Justice that greenlighted the deal by bullying venues into exclusive contracts, an investor said in a proposed class action filed Wednesday in California federal court.

  • April 19, 2018

    SEC Can Review Expert Docs In Camelot Exec's Fraud Case

    A New York federal judge said Wednesday that the U.S. Securities and Exchange Commission is entitled to review documents provided to experts who were retained to provide testimony in the fraud case against a former Camelot Group executive, even though they will no longer be testifying.

  • April 18, 2018

    Mediation Progress Pushes Zohar Dismissal Trial One Week

    Attorneys for bankrupt investment vehicles the Zohar Funds told a Delaware judge Wednesday afternoon that their efforts to mediate issues in the cases had progressed far enough that the parties were comfortable adjourning a motion to dismiss the Chapter 11 filings until next week to allow for further talks.

  • April 18, 2018

    CEO Leveraging Under Armour For Personal Gain, Suit Says

    Under Armour Inc.’s CEO Kevin Plank and two of its directors were hit with a shareholder derivative suit in Maryland federal court claiming Plank stands to make a big payday using the sports apparel company as the anchor for a multibillion-dollar Baltimore development project his real estate firm is spearheading.

  • April 18, 2018

    SEC Unveils Plans For 'Best Interest' Standard For Brokers

    A divided U.S. Securities and Exchange Commission on Wednesday proposed holding brokers to a higher standard of care if they are giving advice to retail investors, kicking off a likely contentious fight to finalize the long-awaited new rules that have already met with skepticism at the agency.

  • April 18, 2018

    HD Sale Never Triggered Stock Awards, Del. Justices Told

    One of the country’s largest industrial suppliers told three Delaware Supreme Court justices Wednesday that contract terms leave no room for former employees of a sold business unit to claim unvested equity awards, despite the appearance of an allegedly triggering event.

  • April 18, 2018

    Investment Fund Looks To Get $27M Golf Club Co. Award OK'd

    A Korean investment fund asked a California federal court on Wednesday to confirm a nearly $27 million award that arose from its investment in a golf club shaft manufacturer that later admitted it was facing tax evasion issues, saying a challenge to the award has come up short.

  • April 18, 2018

    Judge Rips Ex-Autonomy CFO’s Defense In HP Fraud Trial

    A California federal judge criticized a defense offered by Autonomy's ex-financial chief as the government’s months-long fraud trial neared its conclusion Wednesday, saying his attorneys can’t tell a jury that Hewlett-Packard Co.’s own internal turmoil caused it to overvalue the British software company, because “even somebody dysfunctional can’t be lied to.”

  • April 18, 2018

    IPOs Reach Market More Quickly As SEC Comments Dwindle

    Companies saw their initial public offerings move through the Securities and Exchange Commission review process more quickly in 2017, data show, facing fewer comments from regulators as the SEC shifts toward a more capital-formation friendly stance under Chairman Jay Clayton.

  • April 18, 2018

    NuStar GP Investor Seeks To Halt $7.9B Restructuring Deal

    Two months after reaching a merger agreement to restructure Texas-based NuStar Energy LP, an investor in NuStar’s holding company asked a Delaware federal judge on Tuesday halt the deal, claiming a proposed class of investors are still in the dark about how the $7.9 billion partnership was reached.

  • April 18, 2018

    Jurisdiction Gives NY Judge Pause In Trust Atty Fee Suit

    A New York state judge expressed concern at a hearing Wednesday about whether she has jurisdiction to hear a suit from law firm Chaitman LLP and a slew of securitized student loan trusts faulting their trustee Wilmington Trust Co. and administrator GSS Data Services Inc. for the trusts’ unpaid legal bills.

  • April 18, 2018

    Trustee Slams Patriot National Ch. 11 Plan On Ghost Releases

    The U.S. Trustee’s Office objected Wednesday to the latest version of insurance company servicer Patriot National Inc.’s Chapter 11 plan, saying it contains unjustified legal releases and goes too far in blocking late claims.

  • April 18, 2018

    Dickinson Wright Wins Hearing On Malpractice Suit Evidence

    A Florida appeals court ruled Wednesday that a trial court should have held an evidentiary hearing on Michigan-headquartered law firm Dickinson Wright PLLC’s motion to dismiss a suit accusing it of participating in a conspiracy involving a fraudulent recapitalization.

  • April 18, 2018

    No Quick End To Relativity Co-Founder Fraud Claims: Judge

    A New York bankruptcy judge is refusing for now to shut down fraud claims against Relativity Media LLC co-founder Ryan Kavanaugh, demanding briefing Wednesday on whether a litigation release that applies to board members also applies to the plaintiff — who was indeed a board member — when he's wearing another hat.

  • April 18, 2018

    Golf-Course Stock Tipper Gets Supervised Release Slashed

    A former stone salesman who spent about a year in prison for passing around nonpublic stock tips during rounds of golf can get out of a second year of supervised release to pursue a new career in Florida real estate, a federal judge in Massachusetts ruled Wednesday.

  • April 18, 2018

    Texas Sets Pace In State Cryptocurrency Crackdowns

    Texas is at the forefront of using its state securities laws to go after allegedly fraudulent cryptocurrency investment schemes, and as digital currency offerings grow more popular, more states are expected to follow suit, experts say.

  • April 18, 2018

    Exxon Climate Probes Greenlighted By Courts: What's Next

    Now that state and federal courts have slammed the door on efforts by Exxon Mobil to block climate change probes launched by attorneys general from New York and Massachusetts, experts say the battleground for prosecutors and the oil giant will shift to exactly what information Exxon has to turn over and whether that information is enough to justify formal litigation. Here's an overview of where the investigations stand and where they could go from here.

  • April 18, 2018

    Del. Justices Asked To Nix 57% Clearwire Appraisal Plunge

    Clearwire Corp investor Aurelius Capital Management LP on Wednesday told Delaware's Supreme Court that "compounding" legal errors last year led Chancery Court to set Clearwire's stock price 57 percent below the amount Sprint Nextel Corp. paid in a $3.6 billion buyout in 2013.

  • April 18, 2018

    Murphy & McGonigle Nabs CFTC Atty For Securities Team

    A chief trial attorney at the Commodity Futures Trading Commission who helped litigate market manipulation claims against Arcadia Petroleum and nabbed nearly $4 million in disgorgement from a Ponzi schemer in Hawaii has left to join the securities team at Murphy & McGonigle PC, the firm announced this week.

Expert Analysis

  • Series

    Dissolving Practice: The Unfinished Business Doctrine

    Thomas Rutledge

    There has been, of late, significant dispute as to the application of the unfinished business doctrine, particularly with respect to hourly rate matters of now-dissolved large law firms. And the California Supreme Court’s recent decision in Heller Ehrman, like others as to similar points, is highly questionable, says Thomas Rutledge of Stoll Keenon Ogden PLLC.

  • Comparing Anti-Corruption Guidance In France, UK And US

    Philippe Bouchez El Ghozi

    France's corporate compliance guidelines are “inspired by the best international standards” and are generally similar to those outlined by authorities in the U.S. and U.K. But the 15,000-word French guidelines provide far more precise recommendations for certain compliance program elements, say Philippe Bouchez El Ghozi and Morgan Heavener of Paul Hastings LLP.

  • Senate Regulatory Relief Bill Would Benefit Community Banks

    Joan Guilfoyle

    The Dodd-Frank rollback bill recently passed by the Senate is not as sweeping as the House’s Financial Choice Act, but for community bankers, there are a number of provisions to like, says Joan Guilfoyle of Jones Walker LLP.

  • Should We Trust The Fiduciary Rule Is Gone?

    Robert Stone

    The U.S. Department of Labor's fiduciary rule has been challenged in court by various organizations on grounds that the agency exceeded its authority in promulgating it. Those challenges culminated in a recent decision by the Fifth Circuit to vacate the rule in U.S. Chamber of Commerce v. DOL, say Robert Stone and Shannon Smith of Katten Muchin Rosenman LLP.

  • Antiquated FINRA Rules Stifle Small Co. Capital Formation

    Laura Anthony

    If OTC Markets' recently suggested changes to two Financial Industry Regulatory Authority over-the-counter rules are implemented, more small companies would access the public markets, better information would be made available to investors and the marketplace, and secondary market liquidity would improve, says Laura Anthony of Legal & Compliance LLC.

  • Applying The Business Judgment Rule To Director Pay Claims

    Robert Quirk

    When assessing a corporate board’s response to a shareholder’s “demand” to take “all necessary actions” to correct alleged compensation-related misconduct by its directors, what legal standard applies? A New York state judge's recent decision in Solak v. Fundaro helps to answer this question, say Robert Quirk and Muhammad Faridi of Patterson Belknap Webb & Tyler LLP.

  • Board Oversight Of Cybersecurity: 8 Considerations

    Jamie Gorelick

    With recent guidance from the U.S. Securities and Exchange Commission, we are at an inflection point for boards of directors in assessing how they oversee cybersecurity risks, say attorneys with WilmerHale.

  • New SEC Case Bucks The Valuation Trend

    Jesse Morton

    The U.S. Securities and Exchange Commission investigation into Deer Park Road Management’s alleged practice of undervaluing assets has many wondering why the investment manager would want to undervalue its assets. In fact, there are several incentives for a fund manager to do so, say Jesse Morton and Matt Rogers of Stout Risius Ross LLC.

  • Tax Reform’s Impact On Private Equity

    Sean Clancy

    The Tax Cuts and Jobs Act significantly changed income tax laws for individuals and business entities. Attorneys at Nixon Peabody LLP map out the provisions that will impact the private equity industry, including managers, investors and portfolio companies.

  • Rebuttal

    Crypto Developments Are Indeed Alarming

    John Reed Stark

    A recent rebuttal to our earlier Law360 guest columns asserts that cryptocurrency financiers are at no greater risk today than they have been over the last few years. But rarely in its 84-year history has the U.S. Securities and Exchange Commission been so explicit and so recurring in the public expression of its warnings and rebukes, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.