Securities

  • February 16, 2018

    UBS Says CFTC Order Doesn't Goose Gold-Fix Claims

    UBS AG has told a New York federal court that the U.S. Commodity Futures Trading Commission’s consent order fining the Swiss bank $15 million over alleged spoofing does not bolster gold sellers’ claims that UBS was part of a conspiracy to manipulate a benchmark price of gold.

  • February 16, 2018

    SEC Halts Trading In 3 Penny Stocks Tied To Cryptocurrency

    The U.S. Securities and Exchange Commission on Friday suspended trading in three penny-stock companies, questioning the accuracy of recent statements they all made claiming substantial acquisitions in assets tied to cryptocurrency and blockchain technologies.

  • February 16, 2018

    Sidley Austin Lures Proxy Pro From Vinson & Elkins

    Sidley Austin has hired a mergers and acquisitions partner who founded and led Vinson & Elkins’ shareholder activism team and has been involved in more than 20 proxy contests.

  • February 16, 2018

    Intel Says Chip Security Flaws Led To 30+ Suits Against It

    Intel said on Friday in a regulatory filing that it is facing more than 30 lawsuits, including proposed consumer and securities class actions, over the discovery in 2017 that security flaws, dubbed Spectre and Meltdown, make virtually every computer chip vulnerable to hacking.

  • February 16, 2018

    Insider Tips Case Shows 3rd Circ.'s Caution On Sentencings

    A recent Third Circuit opinion that scrapped a nearly four-year prison sentence for a former Simpson Thacher & Bartlett LLP managing clerk convicted in a $5.6 million insider trading scheme is consistent with a wider pattern by the appeals court of taking a hard look at sentencing overreaches, court watchers say.

  • February 16, 2018

    9th Circ. Won't Revive Investor Suit Over Hep B Drug Trials

    A California federal judge was right to dismiss a proposed investor class action accusing Arrowhead Research Corp. of overstating clinical trial results for its hepatitis B medication, as the company didn’t issue false or misleading statements, the Ninth Circuit said Thursday.

  • February 16, 2018

    Judge Iffy On Spiking Bank’s $45M Fraud Suit Against Tilton

    A New York state judge expressed uncertainty at a hearing on Friday about whether she could consider a new motion to dismiss a German lender’s $45 million fraud suit against Lynn Tilton and her companies over its investments in two of her funds.

  • February 16, 2018

    Texas Justices Won't Hear From Oil Exec DQ'd As Counsel

    The Texas Supreme Court declined Friday to intervene in a dispute in which a lawyer argued he was wrongly disqualified from acting as counsel in litigation against two oil and gas companies that he runs, which are facing a shareholder derivative lawsuit from his son, a former executive at both companies.

  • February 16, 2018

    Caterpillar's Tax Bill May Reach $2.3B After IRS Audit

    Caterpillar Inc. may owe the Internal Revenue Service $2.3 billion in taxes and penalties following the conclusion of field audits concerning its income tax returns and profits earned by its Swiss affiliate, according to the annual report the company filed Thursday.

  • February 16, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen Chubb bring an action against U.S. forestry giant Weyerhaeuser, Russia's Kapital Insurance lodge a claim against more than a dozen insurers and reinsurers, and the Financial Services Compensation Scheme sue Heritage Corporate Trustees for breach of fiduciary duty. Here, Law360 looks at those and other new claims in the U.K.

  • February 15, 2018

    Puerto Rico Electric Co. Denied Bid For Emergency Loan

    Access to electricity in Puerto Rico may be in short-term peril after a New York federal judge on Thursday denied the territory’s insolvent power utility access to $1 billion in emergency financing offered by the island’s central government, finding the superpriority lien attached to the loan unjustified.

  • February 15, 2018

    Ill. Trader Accused Of Embezzling $2M In Cryptocurrency

    A Chicago man was charged with the city’s first criminal prosecution involving the cryptocurrency trading industry on Thursday, as 24-year-old trader Joseph Kim was charged with fraud for allegedly misappropriating $2 million in Bitcoin and Litecoin.

  • February 15, 2018

    SEC Nixes Sale Of Chicago Exchange To Chinese Investors

    The U.S. Securities and Exchange Commission on Thursday rejected the politically sensitive sale of the Chicago Stock Exchange to a group of Chinese investors, citing “unresolved questions” over the proposed ownership structure and concerns for the regulatory agency’s ability to maintain oversight of the exchange after the sale.

  • February 15, 2018

    6D Global Investors Say Derivative Suit Deal Is 'Worthless'

    Investors owning more than half of 6D Global Technologies Inc.’s stock have objected to a proposed settlement of derivative claims that the digital marketing company failed to stop a private equity firm’s CEO from manipulating its share price, telling a New York federal judge Wednesday that the corporate reforms spelled out in the deal are “utterly worthless.”

  • February 15, 2018

    SEC's Jackson Calls On Exchanges To Limit Dual-Class Stock

    New U.S. Securities and Exchange Commission member Robert Jackson on Thursday urged U.S. stock exchanges to enact policies that limit the advantages of dual-class stock structures that grant extra voting power for company insiders, calling for an end to “corporate royalty.”

  • February 15, 2018

    Ex-Foley & Lardner Atty Should Get Prison Time, Feds Say

    Prosecutors on Thursday urged a New York federal judge to ignore a request from former Foley & Lardner LLP partner Walter “Chet” Little that he be sentenced to community service and time served after pleading guilty to an insider trading scheme using the firm’s client information.

  • February 15, 2018

    Chancery OKs TransPerfect Buyout By Shawe

    A Delaware Chancery judge on Thursday approved the $770 million sale of legal translation firm TransPerfect to Philip Shawe, rejecting his co-founder and bitter rival Elizabeth Elting’s opposition and ruling there was no indication the court-appointed custodian overseeing the process exercised poor judgment or wasn’t impartial.

  • February 15, 2018

    Mass. Regulator Charges Scottrade Over Sales Contests

    The Massachusetts securities regulator on Thursday accused Scottrade Inc. of holding sales contests it knew flouted an internal impartial conduct standard it adopted to comply with the U.S. Department of Labor’s so-called fiduciary rule for retirement account advisers.

  • February 15, 2018

    Senator Skeptical Of $31.5M Sought For CFTC 2019 Budget

    The chairman of an influential Senate committee on Thursday voiced strong opposition to user fees proposed by the Trump administration to supplement funding for the U.S. Commodities Futures Trading Commission, casting doubt on $31.5 million the agency is seeking above its 2018 funding level.

  • February 15, 2018

    Regulators To Review Enhanced Oversight Of Prudential

    U.S. financial regulators on Wednesday announced plans to review the designation of Prudential Financial Inc. for enhanced regulatory supervision, potentially paving the way for removing the insurer and asset manager from its designation as a systemically important financial institution.

Expert Analysis

  • Notable Trends In Foreign Securities Litigation

    Mark Willis

    In recent years, investors have been successful in securing significant recoveries overseas through group actions despite the fact that U.S.-style, opt-out class actions do not exist in most foreign forums. With the foreign securities litigation field now bustling, investors will increasingly need to navigate potential pitfalls, say Mark Willis and Rachel Avan of Labaton Sucharow LLP.

  • 10 Highlights From FINRA’s 2018 Priorities Letter

    Emily Gordy

    The Financial Industry Regulatory Authority's annual regulatory and examination priorities letter is a road map to areas on which FINRA will focus in the coming year. Firms must use this information to assess strengths, identify gaps and shore up weaknesses, says Emily Gordy, a partner at McGuireWoods LLP and a former senior vice president at FINRA.

  • Del. Walmart Ruling Might Bring New Derivative Strategies

    Jonathan Richman

    The Delaware Supreme Court's recent decision in a Walmart derivative suit should enhance defendants' ability to obtain dismissal of duplicative derivative actions on preclusion grounds. The ruling might also cause plaintiffs to take steps to appear in multiple forums to avoid preclusion risks, says Jonathan Richman, co-head of the securities litigation group at Proskauer Rose LLP.

  • 9th Circ. Decision Could Be Game-Changer For Investors

    Carol Villegas

    The Ninth Circuit on Wednesday issued an important decision in Mineworkers' Pension Scheme v. First Solar that serves to protect investor rights in securities class actions and will prevent companies that commit fraud from evading liability, say Carol Villegas and James Christie of Labaton Sucharow LLP.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.

  • DOJ Limitation On Agency Guidance Levels Playing Field

    Ronald Tenpas

    A new memo from the U.S. Department of Justice prohibiting DOJ litigators from treating any agency guidance document as binding offers needed relief to regulated parties, giving them a greater opportunity to push back against enforcement theories that rely on “clear” guidance regarding an underlying ambiguous or silent statute, say Ronald Tenpas and Gregory Etzel of Morgan Lewis & Bockius LLP.

  • A Big Step Toward Harmonizing Swap Trading Markets

    Stephen Humenik

    With a recent order from the U.S. Commodity Futures Trading Commission, swap trading market participants are now able to satisfy trading mandates in both the U.S. and the EU. Without this combined effort of regulators, swap dealers and traders would have faced a fragmented market this year, say Stephen Humenik and Uttara Dukkipati of Covington & Burling LLP.

  • Opinion

    Evolving Due Process In The Digital Age

    Stephen Kane

    Because courts have not modernized as quickly as companies like Amazon, Tesla and Apple, Americans are becoming increasingly dissatisfied, but technological innovations may be able to help Americans access their due process, says Stephen Kane of FairClaims.

  • Under New Tax Law, Time Is Running Out For Ponzi Victims

    Kevin Diamond

    Counsel representing victims of Ponzi schemes should note that the Tax Cuts and Jobs Act eliminates the theft tax loss provisions of the Internal Revenue Code for tax years after 2017. The time to act is now, before this important tax benefit goes away, says Kevin Diamond of Rico Murphy & Diamond LLP.

  • Series

    What I Learned In My 1st Year: A Judge's Example

    M.C. Sungaila

    Law school taught me how to think like a lawyer, but the district court judge I clerked for my first year out of law school taught me how to be a lawyer. This was the gift she gave to all of her law clerks, in one form or another, says M.C. Sungaila of Haynes and Boone LLP.