Securities

  • May 22, 2017

    Fed. Prosecutor To Join Cahill's White Collar Team In NY

    Cahill Gordon & Reindel LLP has expanded its New York office’s white collar practice with the addition of a new partner who has over a decade of experience prosecuting securities fraud, racketeering and bank fraud cases as an assistant U.S. attorney.

  • May 22, 2017

    $1.4B Virtu Acquisition Undervalues KCG, Shareholders Say

    A putative class of shareholders filed suit in New York federal court Friday seeking to stop trading firm KCG Holdings Inc.’s $1.4 billion acquisition by rival Virtu Financial, alleging the deal undervalued KCG stock and that omissions in related filings violated the Securities and Exchange Act.

  • May 22, 2017

    Arconic Gives Elliott 3 Board Seats To End Proxy Fight

    Arconic Inc. said on Monday that it will give three seats on its board of directors to activist hedge fund Elliott Management Corp., resolving a high-profile proxy fight that the metals manufacturer had at one point warned could bring about a costly change in control of its board.

  • May 22, 2017

    SEC Says Two Stole $11M From Hedge Fund Investors

    The U.S. Securities and Exchange Commission on Monday hit a hedge fund manager and his investment advisory business partner with a Massachusetts federal suit alleging they cheated more than 50 hedge fund investors out of $11.2 million.

  • May 22, 2017

    Investors Target NewLink Execs Over Failed Cancer Vaccine

    Investors in NewLink Genetics Corp. on Friday filed a derivative suit in New York federal court, accusing the company’s officers and directors of misleading shareholders about the integrity and prospective results of its clinical trials for a vaccine to treat pancreatic cancer.

  • May 22, 2017

    SEC Slams Retrial Bid In $22M Oil Investment Fraud Case

    The U.S. Securities and Exchange Commission scoffed Monday at a retrial request from a broker found to have sold $22 million in unregistered investment vehicles disguised as partnerships in oil and gas drilling, telling a Texas federal court he is merely repackaging an already-rejected reconsideration bid.

  • May 22, 2017

    Wife Of Fugitive Accused Fraudster Wins Round In SEC Fight

    A potentially friendly looming Supreme Court decision helped the wife of fugitive former Oak Investment Partners moneyman Iftikar Ahmed win more time Monday in her effort to keep millions of dollars the U.S. Securities and Exchange Commission says should fund a potentially large fraud judgment against her husband.

  • May 22, 2017

    Hacker Gets Time Served In $30M Press Release Scheme

    A New Jersey federal judge on Monday sentenced a Ukrainian hacker to time served for his role in a roughly $30 million plot to trade securities based on nonpublic information stolen from the servers of press release newswires, citing his cooperation with the criminal probe into the global scheme.

  • May 22, 2017

    Shkreli Wins Grand Jury Subpoenas In Securities Fraud Suit

    New York federal prosecutors must give Martin Shkreli copies of grand jury subpoenas that had been served to his former company, Retrophin Inc., as part of an upcoming securities fraud trial, a federal judge said Friday.

  • May 22, 2017

    2nd Circ. OKs Nixing Of Fund's $230M Madoff Claim Sale

    A New York bankruptcy court was right to scrap the sale of a $230 million claim by the liquidator for an offshore Bernard L. Madoff feeder fund to a hedge fund, the Second Circuit affirmed on Monday, saying offshore Chapter 15 sales are still subject to U.S. court review.

  • May 22, 2017

    Pharma Co. Says Rosen Firm’s Conflicted In Stock Drop Case

    An Israeli drug company accused of securities fraud told a New York federal judge Friday that the Rosen Law Firm shouldn’t be allowed to represent investors in the case because it represents a competing class of shareholders in a similar case.

  • May 22, 2017

    Citi Forfeits $97M For Banamex's Lax AML Oversight

    Citigroup Inc. agreed to forfeit $97.4 million as part of a federal nonprosecution agreement to resolve criminal allegations that Citi subsidiary Banamex USA violated the Bank Secrecy Act by willfully failing to maintain an effective anti-money laundering compliance program, officials said Monday.

  • May 22, 2017

    $100M Defamation Suit Against Bloomberg Tossed

    A Massachusetts federal judge on Friday dismissed a defamation suit against Bloomberg LP by a Greek Orthodox priest who runs a hedge fund, saying that while an article saying the Rev. Emmanuel Lemelson and his firm were under investigation for stock manipulation could be defamatory, its reporting did not cross the line because Lemelson is a public figure.

  • May 22, 2017

    Texas Driller ‘Death Spiral’ Suit Against Investor Dismissed

    A Texas federal judge on Monday dismissed oil and gas company Camber Energy Inc.'s suit against a key investor for allegedly forcing it to issue shares that drove down its stock value into a “death spiral” based on a strained interpretation of an “unconscionable” contract.

  • May 22, 2017

    CBO Says CHOICE Act Would Cut Deficit By $24B

    A government spending watchdog said Friday that primarily smaller banks would benefit from a Republican bill that would functionally repeal the Dodd-Frank Act, and that the bill would reduce the deficit by around $24 billion over 10 years.

  • May 22, 2017

    High Court Asked To Restore ERISA Suit Over Madoff Profits

    A New York engineers' union fund has petitioned the U.S. Supreme Court to revive its suit against the Bank of New York Mellon and Ivy Investment Management over decades-old Bernie Madoff investment advice, saying the Second Circuit violated bedrock principles of the Employee Retirement Income Security Act when affirming the case’s dismissal.

  • May 19, 2017

    NJ Drug Co. Dodges Class Action Over FDA Approval Claims

    A New Jersey federal judge on Friday tossed a proposed securities class action against Eagle Pharmaceuticals Inc., saying investors have failed to back up their claims that the company made false and misleading statements about the nature of a blood thinner and the chances of the drug receiving federal approval.

  • May 19, 2017

    SEC’s Cooperman Deal Gives Defense Bar New Tool

    Billionaire hedge fund founder Leon Cooperman and his firm Omega Advisors Inc. managed to avoid an industry bar in settling the U.S. Securities and Exchange Commission’s insider trading claims, and experts say their unusual compromise of retaining a compliance consultant gives the defense bar ammunition for negotiating future deals.

  • May 19, 2017

    Barclays, SocGen, Others Again Fail To Dodge Libor Suit

    Barclays PLC, Société Générale SA, and several other banks accused of rigging interbank loan rates had their latest bid to dismiss a putative class action rejected Friday by a New York federal judge, who said the banks' jurisdictional arguments still fell short.

  • May 19, 2017

    Stillwater Investors Seek Chancery Appraisal Of $2.2B Deal

    Investors in Colorado-based Stillwater Mining Co. petitioned the Delaware Chancery Court on Friday to appraise the value of its shares now that Sibanye Gold Ltd.'s $2.2 billion acquisition of the company closed earlier this month.

Expert Analysis

  • Opinion

    Chancery Should Reconsider Its Decision In Trulia

    Michael Maimone

    Since the Delaware Chancery Court’s decision in Trulia last year, courts in a variety of jurisdictions with less experience than the Chancery Court are adjudicating M&A actions, and parties and practitioners have less certainty that settlements will be approved, say Michael Maimone and Joseph Schoell of Drinker Biddle & Reath LLP.

  • Hedge Fund Settlement Shows Broad Reach Of New York FCA

    Douglas Baruch

    While the recent $40 million settlement based on taxes allegedly avoided by members of Harbinger Capital Partners was record-breaking, the underlying source of liability — the New York False Claims Act — was highly unusual as well. This action may usher in a whole new wave of potential liability against financial institutions, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Protecting Privilege, Work-Product During Investigations

    Eric Gorman

    Companies conducting investigations in cooperation with regulators must carefully balance the benefits of sharing certain types of information with the government against the risks — including the risk that privileged communications and attorney work product could fall into the hands of plaintiffs suing the company, says Eric Gorman of Skadden Arps Slate Meagher & Flom LLP.

  • Making Disclosures To Auditors Without Waiving Privilege

    Lisa Vicens

    Until courts have more uniformly agreed that disclosure of work product to auditors does not waive the work-product privilege, corporations must balance their auditors’ needs with the risk of waiver, say Elizabeth Vicens and Daniel Queen of Cleary Gottlieb Steen & Hamilton LLP.

  • Home Depot And Its Implications For Breach-Related Suits

    Kevin LaCroix

    The recent settlement that ended a data breach-related derivative lawsuit against Home Depot and certain of its directors and officers suggests that plaintiffs lawyers may have found a way to profit from filing these kinds of cases, says Kevin LaCroix of RT ProExec.

  • 13 FCPA Enforcement Actions Resolved In 2017 So Far

    Marc Bohn

    The first three weeks of 2017 served as a capstone to the flurry of Foreign Corrupt Practices Act enforcement activity that marked the end of 2016, while the remainder of the quarter saw little in the way of additional enforcement actions by the U.S. authorities. However, there are no significant indications that FCPA enforcement efforts will shift dramatically under the Trump administration, say attorneys with Miller & Chevalier Chtd.

  • Where Things Stand With Corwin: 7 Decisions In 2017

    Gail Weinstein

    In almost every Corwin-related decision issued in 2017, the Delaware courts continued their broad application of the seminal 2015 decision, making it extremely difficult for a shareholder-plaintiff to prevail in a post-closing challenge to a noncontroller stockholder-approved transaction, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • The Current State Of Renewable Energy Disputes: Part 4

    Justin Tschoepe

    In addition to disputes with governmental entities, or over the use of sovereign land, renewable energy companies frequently face disputes involving purely private parties. The final part of this series summarizes three common examples of such litigation, including shareholder litigation, consumer disputes and nuisance lawsuits, say Justin Tschoepe and William Wood of Norton Rose Fulbright.

  • A Reminder That Market Regulators Are Still Watching

    Clifford Histed

    It is clear that the Trump administration has no intention of relenting when it comes to pursuing complex market manipulation cases, and the U.S. Securities and Exchange Commission’s Lek Securities case is the first tangible example of that, say Clifford Histed and Gilbert Perales of K&L Gates LLP.

  • What Lawyers Should Know To Avoid Online Scams

    J. S. Christie Jr.

    Scams resulting in access to confidential information are probably a lawyer’s greatest technology and cybersecurity risk. But hackers are more likely to gain access to a lawyer’s computer systems through human error, usually responding to a scam, than a brute force attack, says J. S. Christie Jr. of Bradley Arant Boult Cummings LLP.