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Securities

  • May 21, 2018

    Jury Convicts Calif. Atty In $1.5M Pump-And-Dump Scheme

    A federal jury in Boston convicted a California attorney Monday of assisting his two brothers and a handful of others in a 2012 pump-and-dump scheme that reaped at least $1.5 million.

  • May 21, 2018

    NJ Orders Cos. To Stop Offering Securities In 'Cryptosweep'

    New Jersey officials on Monday ordered three online cryptocurrency-related investment organizations to stop offering unregistered securities in the Garden State, issuing the directives as part of an international crackdown on bogus products.

  • May 21, 2018

    Woodbridge Noteholders Want To File Own Ch. 11 Plan

    Investors in the Woodbridge Ponzi scheme have asked the Delaware bankruptcy court overseeing Woodbridge's liquidation to let them propose their own Chapter 11 plan, which they say will address head-on “the $800 million question” of whether they are secured.

  • May 21, 2018

    Chicago Trader Admits Stealing $3M In Cryptocurrency

    A 24-year-old Chicago trader admitted Monday that he stole more than $3 million in bitcoin and litecoin from his firm and a group of investors, pleading guilty to one count of wire fraud in the city's first criminal prosecution involving cryptocurrency trading.

  • May 21, 2018

    Big Lots Agrees To $38M Settlement In Stock-Drop Case

    Big Lots Inc. has agreed to pay a class of investors $38 million to settle claims that its top brass misled shareholders in 2012 about the discount retailer’s performance and conducted insider trading, according to a settlement filed in Ohio federal court.

  • May 21, 2018

    Investors Battle Mining Co. Over Legal Docs In $207M Suit

    Investors have told a California federal court that a magistrate judge’s decision was “plainly correct” in requiring Silver Wheaton Corp. to produce legal documents it gave to PricewaterhouseCoopers and Deloitte to audit the company’s financial statements in a class action over $207 million in tax liability.

  • May 21, 2018

    Icahn Cries Foul On AmTrust's $2.7B Go-Private Deal

    Activist shareholder Carl Icahn hit AmTrust Financial Services Inc. with a suit in Delaware Chancery Court on Monday claiming its proposed $2.7 billion go-private deal undervalues the insurance giant while financially benefiting the family at its helm, saying the record backing the merger price has been manipulated.

  • May 21, 2018

    CFTC Partners With States, Gives Crypto Derivative Guidance

    The U.S. Commodity Futures Trading Commission is entering an agreement with state regulators aimed at slashing red tape and increasing coordination and has put out new guidance on how exchanges should handle cryptocurrency derivatives, the agency's head said on Monday.

  • May 21, 2018

    Accused ICO Fraudsters Deny $25M Crypto Card Scheme

    Two co-founders of cryptocurrency company Centra Tech Inc. on Monday denied charges of conning investors in a $25 million initial coin offering to fund a digital currency payment card they falsely claimed was backed by major payment processors including Visa Inc.

  • May 21, 2018

    Winston & Strawn Boosts PE Team With 2 Ex-Katten Partners

    Winston & Strawn LLP has hired two partners in California with strong private equity and mergers and acquisitions experience from Katten Muchin Rosenman LLP, including one who headed up that firm's Los Angeles corporate practice and previously presided over a private investment company, the firm announced.

  • May 21, 2018

    $309M In Deutsche, Barclays, HSBC Euribor Deals OK'd

    A Manhattan federal judge gave a final nod Friday to $309 million in investor settlements with Deutsche Bank AG, Barclays PLC and HSBC Holdings PLC over allegations they manipulated the Euro Interbank Offered Rate, earmarking $68.7 million of the amount for attorneys' fees.

  • May 21, 2018

    Finch McCranie Scores Ex-Director Of SEC’s Atlanta Office

    Former U.S. Securities and Exchange Commission regional director Walter Jospin is diving back into private practice with a new gig as of counsel at Atlanta boutique Finch McCranie LLP, and he’s excited to get back into the “nitty gritty” of practicing law.

  • May 18, 2018

    UnitedHealth Asks Del. High Court To Nix Investor Books Win

    UnitedHealth Group Inc. asked Delaware's Supreme Court on Thursday to reverse a Chancery Court decision allowing investors to inspect some of the company's documents to investigate Medicare overbilling allegations, saying the lower court didn't consider if there was a credible basis to infer wrongdoing.

  • May 18, 2018

    Wells Fargo Investor Sues Over 'Culture Of Lawlessness'

    A Wells Fargo & Co. shareholder has accused CEO Timothy Sloan, Chair Elizabeth Duke and other top brass of having enabled a “culture of lawlessness” at the bank in a derivative suit filed Thursday, the same day that new allegations emerged about a problem in the bank’s wholesale division.

  • May 18, 2018

    CFTC Tells Fraud Suit Judge It Can Regulate Cryptocurrency

    Cryptocurrency is a commodity that can be regulated by the U.S. Commodity Futures Trading Commission, the regulatory watchdog agency told a Massachusetts federal judge Friday as it fights a cryptocurrency company's bid to dismiss a $6 million fraud suit.

  • May 18, 2018

    IHeartMedia Seeks OK To Access $450M Ch. 11 Credit Facility

    Bankrupt radio giant iHeartMedia Inc. sought permission Thursday to access a $450 million debtor-in-possession credit facility, with an option to increase the amount by $100 million, to pay back its prebankruptcy asset-based lenders and fund its Chapter 11 case.

  • May 18, 2018

    2 Men Settle SEC's Life Time Fitness Insider Trading Claims

    The U.S. Securities and Exchange Commission asked an Illinois federal judge Thursday to sign off on settlements it reached with two men facing parallel criminal charges over alleged insider trading that occurred ahead of Life Time Fitness Inc.’s $2.8 billion private equity buyout in 2015.

  • May 18, 2018

    NantKwest Investors See Suit Over IPO Tossed Over Standing

    NantKwest Inc. investors in a derivative action against directors and officers had their suit thrown out Friday when a judge in Delaware Chancery Court found that they lacked standing to pursue claims over allegedly lax disclosures and insider dealings during and after the biotechnology company’s initial public offering.

  • May 18, 2018

    Feds Double Down On Union Boss' Graft Retrial

    Manhattan federal prosecutors on Thursday beefed up their case against New York City labor boss Norman Seabrook with a new fraud charge, ahead of a coming retrial over accusations that he took bribes from Platinum Partners in exchange for his union’s investment in the hedge fund.

  • May 18, 2018

    Energy Savings Co. Investors Allege $5M Push-Out Scheme

    The co-founder and an early investor of Energy Efficient Equity Inc., a company that provides financing for energy and water savings home improvements, have filed a suit against a venture capital fund and its officers alleging the company used a $5 million loan to push them out, according to a complaint made public Friday in Delaware state court.

Expert Analysis

  • Elbit Settlement Shows Breadth Of FCPA Accounting Rules

    Alice Hsieh

    In March, the U.S. Securities and Exchange Commission announced a settlement with Elbit Imaging Ltd. related to alleged violations of the Foreign Corrupt Practices Act. The lack of confirmation that fees were in fact given to a foreign official is an example of the broad reach of the FCPA's accounting provisions, says Alice Hsieh of Miller & Chevalier Chtd.

  • SEC Proposal Strikes At The Heart Of Broker-Dealer Model

    Steven Lofchie

    The U.S. Securities and Exchange Commission's proposed best-interest requirement for broker-dealers would likely discourage the offering of “full-service” brokerage and encourage alternatives, such as “discount” brokerage and fee-based advisory accounts, says Steven Lofchie of Cadwalader Wickersham & Taft LLP.

  • Data Breach Disclosure Lessons From SEC's $35M Yahoo Fine

    Michael Dicke

    The $35 million fine levied against Altaba, formerly known as Yahoo, marks the first time that the U.S. Securities and Exchange Commission has alleged that a company’s failure to disclose a data breach violated the federal securities laws. This enforcement action may also give breach-related securities class actions new life, say Michael Dicke and Alexis Caloza of Fenwick & West LLP.

  • Series

    State Tax After TCJA: Treatment Of International Income

    Jeffrey Friedman

    The Tax Cuts and Jobs Act made sweeping changes to the Internal Revenue Code. Its international tax provisions — including the transition tax, the foreign-source dividends received deduction, the tax on global intangible low-taxed income and others — have far-reaching implications for state tax systems that broadly conform to the IRC, and present significant compliance burdens for taxpayers, say attorneys with Eversheds Sutherland LLP.

  • Smarter, Faster, Stronger: A New Suite Of VC Model Docs

    Samuel Waxman

    For the first time in four years, the National Venture Capital Association recently updated its model legal documents. The latest drafts not only reflect the necessity for quick transactions and bespoke solutions to unique problems facing venture capital investors, but they anticipate needs that will arise in this ever-evolving industry, say attorneys with Paul Hastings LLP.

  • Safeguards Against State, Parallel Proceedings Post-Cyan

    Shayne Clinton

    With the U.S. Supreme Court's decision in Cyan v. Beaver County opening up more forums to securities class action plaintiffs, newly public companies or other registered offerors will face possible duplicative actions in state and federal courts. However, companies are not left without any weapons in the arsenal, say Shayne Clinton and Britt Latham of Bass Berry & Sims PLC.

  • Opinion

    SEC Needs To Better Understand Cryptocurrency Industry

    Harvey Kesner

    While subpoenas fly and much confusion surrounds unregistered initial coin offering sales, the U.S. Securities and Exchange Commission staff struggles to grasp the evolving businesses around blockchain. The staff is grinding out ill-fitted comments to issuers, relying on assumptions incompatible with this brand-new industry, says Harvey Kesner of Sichenzia Ross Ference Kesner LLP.

  • Series

    Judging A Book: Berzon Reviews 'We The Corporations'

    Judge Marsha Berzon

    My advice to prospective clerks will now include the suggestion that they read Adam Winkler's new book, "We the Corporations: How American Businesses Won Their Civil Rights," for the same reason I recommend taking a corporations course — appreciating the critical role of business corporations in American life and law, says Ninth Circuit Judge Marsha Berzon.

  • What ABA’s Position On Harassment Means For Employers

    Minjae Song

    In the #MeToo era, the American Bar Association’s recently passed Resolution 302 is a reminder of harassment policy best practices to all employers, and it should be of particular interest to employers in the legal industry, say attorneys with Hunton Andrews Kurth LLP.

  • Takeaways From 2nd Circ. Reversal Of Litvak Conviction

    Harry Sandick

    One wonders if the Second Circuit’s reversal of Jesse Litvak’s securities fraud conviction in the District of Connecticut, together with prosecutors’ recent loss at trial in United States v. Demos, will impact the government’s decision to prosecute further the other bond traders who are currently facing charges in the same courthouse, say Harry Sandick and Michael Schwartz of Patterson Belknap Webb & Tyler LLP.