Securities

  • October 13, 2017

    Utah Man To Pay $9.1M To Settle SEC's Fraud Claims

    A Utah man has agreed to cough up more than $9.1 million to the U.S. Securities and Exchange Commission to settle the agency’s claims that he and his now-defunct company Silverleaf Financial LLC duped investors out of money raised to purchase defaulted loans on property in Florida and Colorado.

  • October 13, 2017

    Insulet Hit With Derivative Suit Over Lack Of Disclosure

    Executives at Insulet Corp., a manufacturer of insulin pumps, misrepresented the success of a new-product rollout, ultimately causing shares of the company to plunge, a shareholder claimed in a derivative suit filed Friday in Massachusetts federal court.

  • October 13, 2017

    BNY Mellon Loses 2nd Bid To Toss Commerzbank's RMBS Suit

    A New York federal judge won’t rethink his decision to give a green light to some of Commerzbank AG’s claims in its suit over the Bank of New York Mellon’s alleged bungling of duties to a slew of residential mortgage-backed securities trusts and a collateralized debt obligation, saying Thursday that he applied the right legal standard.

  • October 13, 2017

    IRS To Take Deeper Look At Tax-Free Distributions

    The Internal Revenue Service said Friday it will increase its scrutiny of certain stock distributions, mergers and liquidations and has begun reconsidering related issues that the agency has ruled favorably on in the past.

  • October 13, 2017

    Revolving-Door Roundup: Cravath, Hughes Hubbard, Sidley

    September saw several U.S. Department of Justice attorneys make mid-career moves, including accomplished appellate attorneys who joined Sidley Austin LLP and DLA Piper, a former Foreign Corrupt Practices Act enforcer who headed to Hughes Hubbard & Reed LLP, and the rare lateral hire of an ex-prosecutor by Cravath Swaine & Moore LLP.

  • October 12, 2017

    FERC, Barclays To End Fight Over $453M Manipulation Penalty

    The Federal Energy Regulatory Commission and Barclays PLC have brokered a settlement ending the banking giant's fight against the agency's bid to impose $453 million in market manipulation penalties, according to records filed in California federal court Thursday.

  • October 12, 2017

    Deputy AG Vows Policy Review In Lieu Of ‘Rosenstein Memo’

    Deputy Attorney General Rod Rosenstein recently said he aims not to be remembered for a single memo but instead will embark on a wide-ranging review of corporate charging policies with the input of corporate and other stakeholders, an effort experts say may bring a reboot.

  • October 12, 2017

    CFTC Says 3 Men Raised $3.1M In Commodity Pool Fraud

    The U.S. Commodity Futures Trading Commission said Wednesday that it has sued three men in California federal court over an alleged fraud that took in more than $3.1 million from dozens of investors in two commodity pools, accusing the men of fraudulent solicitation, misappropriation, fabricating records and other misconduct.

  • October 12, 2017

    Ex-HSBC Exec Defends Actions Over $3.5B Forex Deal

    A former HSBC foreign currency exchange executive took the witness stand in his own defense for a second day on Thursday in Brooklyn federal court, giving jurors his own version of events surrounding a $3.5 billion forex deal for oil and gas developer Cairn Energy PLC that prosecutors claim was fraudulent.

  • October 12, 2017

    Boston PE Fund Sues 2 Cos. For Diluting Securities, Fraud

    Boston-based Auctus Private Equity Fund LLC filed lawsuits against two companies in Massachusetts federal court on Wednesday, accusing both of breaches of contract involving default events that affected the fund’s securities purchase agreements with them.

  • October 12, 2017

    UK Ex-Traders Have Info They Need On Charges, Judge Says

    A New York federal judge said Thursday the government doesn’t need to hand over any more trading data than it has already promised to three British former foreign exchange traders scheduled to go on trial for conspiring to fix the price of U.S. dollars and euros in the foreign currency exchange spot market.

  • October 12, 2017

    Ex-ArthroCare CEO Can't Undo $750M Fraud Conviction

    A Texas federal judge denied a former ArthroCare Corp. CEO’s attempt to overturn his conviction after a second jury found him guilty of cheating investors out of roughly $750 million by inflating sales and revenue numbers.

  • October 12, 2017

    Deutsche Says It Can Fund Defense From Disputed Trusts

    Deutsche Bank National Trust Co. on Tuesday urged a New York federal judge to toss a proposed class action alleging that it’s improperly dipping into 10 residential mortgage-backed securities trusts it oversees to pay for its defense in a separate suit brought over its handling of those same trusts.

  • October 12, 2017

    Dimension Investor Sues To Block $151M Ultragenyx Merger

    A Dimension Therapeutics Inc. shareholder urged a Massachusetts federal court Wednesday to block Ultragenyx Pharmaceutical Inc.’s proposed $151 million acquisition of the company, alleging Dimension withheld material information from the U.S. Securities and Exchange Commission and is undercutting investors’ share of the profits.

  • October 12, 2017

    LendingClub Investors Poised To Win Cert. Over Objections

    A California federal judge Thursday said he will likely certify a class of LendingClub Corp. investors who allege the peer-to-peer lending company hid defects in its internal controls before and after its $1 billion initial public offering, over objections from both the company and investors pursuing separate state law claims.

  • October 12, 2017

    Saudi Oil Investor Wants $2M Palantir Shares Unfrozen

    Saudi Arabian energy businessman Tarek Obaid, whose company PetroSaudi is said by prosecutors to be tied up in the 1MDB embezzlement scandal, told a California federal judge Wednesday that his $2 million worth of shares in tech firm Palantir Technologies was not bought with laundered money and should be unfrozen.

  • October 12, 2017

    Fintech Expert Says U.S. Needs 'Sandbox' For Regulators

    The U.S. needs a "sandbox for regulators" that would encourage government agencies to explore blockchain and related technological innovations to avoid falling behind forces that are reshaping the markets they govern, an expert told a U.S. Securities and Exchange Commission panel on Thursday.

  • October 12, 2017

    Investors Want $152M In Libor Settlements Approved

    Exchange-based investors told a New York federal judge on Wednesday that they want approval of $151.9 million in settlements reached with several banks in multidistrict litigation that alleges a sprawling scheme to manipulate the London Interbank Offered Rate benchmark.

  • October 12, 2017

    Ex-Trader Asks 2nd Circ. To Renew Fight Against $20M Award

    A former Canadian securities trader has urged the Second Circuit to clear the way for his battle to overturn a $20 million arbitration award against him and his previous employer for allegedly tricking a trading company into buying doomed stock, arguing that the case must be remanded to a state court because he has dropped all federal claims.

  • October 12, 2017

    Barclays Urges 9th Circ. Not To Revive Dark Pool Suit

    Barclays Capital Inc. on Wednesday asked the Ninth Circuit not to revive a proposed class action from a broker-dealer that alleges it was misled about the risks of trading on a dark pool, saying that two lower court judges correctly concluded that Great Pacific Securities lacked a legal leg to stand on.

Expert Analysis

  • Technology Assisted Review Can Work For Small Cases

    john_tredennick_bg.png

    For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.

  • Financial Crisis Anniversary

    The Lasting And Evolving Role Of FSOC

    Amias Gerety

    The Financial Stability Oversight Council, created in the wake of the global financial crisis that caused so much human and economic damage over the last decade, has been a central point of controversy about the Dodd-Frank Act. But time will prove that the core purposes and duties of the council are important, say Amias Gerety and David Portilla, both formerly of the FSOC.

  • How Financial Services Companies Should Face E-Discovery

    Alison Grounds

    Financial service companies face unique e-discovery challenges caused by the complex systems used to run their businesses, the privacy concerns surrounding their data and the asymmetrical litigation in which they are frequently a party. Proactive planning, leveraging of applicable procedural rules and appropriate technology, and cooperation can help to reduce the costs and burdens incurred in the discovery process, says Alison Grou... (continued)

  • 4th Amendment And Shared Servers: Lessons From Shkreli

    Claire Johnson

    The prosecution of Martin Shkreli reveals some important lessons about the Fourth Amendment protections against search and seizure in the digital corporate context: Physical access to documents on a server may trump actual ownership of records, say Claire Johnson and Douglas Young of Farella Braun & Martel LLP.

  • New Sedona Principles Stress Information Governance

    Saffa Sleet

    The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.

  • Between Counsel And Class Members, Silence Is Golden

    Thomas Dickerson

    Prohibiting all unapproved communications from both plaintiffs and defense counsel to members of a class of plaintiffs ensures that the court can safeguard the interests of the class members. A recent decision in a California federal court reveals the wisdom of this principle, says retired New York State Supreme Court Associate Justice Thomas Dickerson.

  • 5 Takeaways From The Largest FCPA Resolution

    Abdus Samad Pardesi

    Beyond the stark lesson of the costs associated with bribing foreign officials, there are several key takeaways from Telia’s recent $965 million Foreign Corrupt Practices Act penalty, including the Trump administration’s continuing commitment to enforcing the FCPA and extracting significant settlements, say attorneys with Kirkland & Ellis LLP.

  • The Delaware Court Of Chancery: A 225-Year Retrospective

    Jack Jacobs

    The Delaware Court of Chancery is celebrating the 225th anniversary of its creation as that state’s court of exclusive equity jurisdiction. Although the court is viewed today as one of the world’s pre-eminent expositors of business enterprise law, that outcome would never have been envisioned when the court was constitutionally established in 1792, says former Delaware Justice Jack Jacobs, now with Sidley Austin LLP.

  • Opinion

    For More Value And Diversity In Outside Counsel, Go Small

    Sara Kropf

    Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.