Securities

  • January 12, 2018

    2nd Circ. Reverses Class Cert. In Goldman Abacus Fraud Suit

    The Second Circuit on Friday reversed a lower court decision certifying a class of shareholders accusing Goldman Sachs of lying about its ethical compliance just before they lost $1 billion in the Abacus collateralized debt obligation, saying the earlier ruling may have held Goldman to a standard of proof that was too high.

  • January 12, 2018

    Paragon Seeks Sanctions For Meddlesome Equity Holder

    Reorganized debtor Paragon Offshore PLC asked a Delaware judge late Thursday to impose sanctions on a former shareholder of the company for filing motions making the same arguments that have been repeatedly denied by the court and causing the company to incur legal fees.

  • January 12, 2018

    Investor Claiming Phony EB-5 Project Settles $1.5M Suit

    A Chinese investor who was allegedly defrauded of $1.5 million as part of an investment scheme exploiting her desire to obtain U.S. residency through U.S. Citizenship and Immigration Services’ EB-5 visa program settled her suit Thursday.

  • January 12, 2018

    NJ Investors Launch $40M Suit Over Alleged Ponzi Scheme

    Three dozen investors have launched a more than $40 million lawsuit in New Jersey state court alleging that their money was used to repay other investors as part of a Ponzi scheme carried out by a fund administration firm and an investment manager who is facing related criminal charges.

  • January 12, 2018

    Ex-Stockbroker Gets 2 Years Over Microcap Manipulation

    One-half of a two-person team that allegedly pumped and then dumped for $1.6 million a waste-processing company's penny stock was sentenced Thursday to two years, according to court records.

  • January 12, 2018

    Gov't Misconduct Dooms Gambler's Conviction, 2nd Circ. Told

    Golf course developer, big-money sports gambler and convicted insider trader Billy Walters told the Second Circuit on Thursday that rampant misconduct by investigators building the case against him necessitates a post-hoc dismissal of the charges.

  • January 12, 2018

    Behavioral Health Co. Investors Seek Books And Records

    Two shareholders in behavioral health outcome assessment firm Outcome Referrals Inc. filed suit late Thursday in Delaware Chancery Court, seeking inspection of the company’s books and records to investigate alleged self-dealing by its president and controlling shareholder.

  • January 12, 2018

    $4.5M Settles Katzenberg DreamWorks-Comcast Merger Suit

    DreamWorks founder Jeffrey Katzenberg and his company’s successor have agreed to pay $4.5 million to settle a Delaware stockholder suit claiming that a Katzenberg side-deal shortchanged other shareholders during negotiation of the company’s $3.8 billion sale to Comcast Corp. in early 2016.

  • January 12, 2018

    9th Circ. Affirms Toss Of Suit Over HP's $11B Autonomy Buy

    The Ninth Circuit on Friday affirmed the dismissal of a putative class action accusing the retirement plan review committee of Hewlett-Packard Co. and others of failing to disclose problems relating to HP's disastrous $11 billion purchase of Autonomy Corp., finding that the concealed data presented by the class was inconsistent with the whistleblower information that ultimately altered the purchase price.

  • January 12, 2018

    Investors Want Abbott To Explain Delay In Alere Deal

    Abbott Laboratories must turn over documents related to its motive for balking at and then renegotiating its $5.3 billion purchase of Alere Inc., Alere investors said Thursday in Massachusetts federal court, arguing that Abbott’s reasoning is key to their stock drop lawsuit against Alere.

  • January 12, 2018

    Shkreli Hits Back At Feds' $7.3M Forfeiture Bid

    Controversial former pharmaceutical executive Martin Shkreli urged a New York federal judge Thursday to reject the government’s demands that he forfeit $7.3 million following his August conviction on securities fraud and conspiracy charges, arguing that he made no profit from the alleged crimes.

  • January 12, 2018

    7th Circ. Upholds CEO's Conviction In Biodiesel Tax Plot

    The Seventh Circuit on Friday upheld the conviction of the former CEO of an Indiana petroleum company charged in a tax fraud scheme based on the sale of biodiesel, saying prosecutors had more than enough evidence to prove he knew what was going on.

  • January 12, 2018

    Justices Will Review Rail Stock-Options Tax Case

    The U.S. Supreme Court on Friday said it will review a Seventh Circuit decision that found income from $13.3 million in stock options given to employees of a Canadian railroad company was taxable compensation.

  • January 12, 2018

    Final Dewey Cooperator Gets No Jail Time

    The final cooperator in the Manhattan district attorney's criminal case against former executives at the once prominent law firm of Dewey & LeBoeuf LLP was sentenced to unconditional release on Friday, presumably ending the saga that absorbed the legal industry.

  • January 12, 2018

    Supreme Court Agrees To Review SEC's In-House Judges

    The U.S. Supreme Court agreed Friday to consider whether the hiring of U.S. Securities and Exchange Commission administrative law judges violates the appointments clause of the Constitution, a case that could call into question the legitimacy of past rulings by the administrative judges.

  • January 11, 2018

    Breitburn Execs Defend Asset Valuations Tied To Ch. 11 Plan

    Breitburn Energy Partners LP initiated efforts Thursday to confirm a Chapter 11 plan that shareholders say undervalues its assets by more than $2 billion, as company executives testified that the proposed scheme, which hands the enterprise over to groups of note holders, is the best deal available.

  • January 11, 2018

    Oil Co. Escapes Securities Suit Claiming Knowledge Of Fraud

    A New York federal judge on Thursday dismissed a class action securities fraud suit against an energy firm whose CEO was fired after his involvement in a stock scam with another company was revealed, saying the shareholders hadn’t proven company officials knew of the scam when they released statements touting the CEO and their code of business conduct prior to his firing.

  • January 11, 2018

    Pipeline Entrepreneur Convicted Of Securities Fraud

    A Kentucky federal jury convicted the former CEO of U.S. Energy Partners Inc. on charges related to the solicitation of more than $1 million dollars of investment money for the purchase of a gas pipeline.

  • January 11, 2018

    Ex-State Street Exec Can Try To Depose Clifford Chance Atty

    A Massachusetts federal judge on Wednesday granted a former State Street Global Markets LLC executive’s motion to depose a Clifford Chance attorney in the Netherlands before his trial on securities fraud charges, agreeing with the executive that the attorney’s testimony could swing his defense.

  • January 11, 2018

    Support Grows For Updating Anti-Money Laundering Rules

    While lawmakers battle over big-picture changes to the rules that govern financial institutions, the need to update an anti-money laundering regime that many see as unwieldy is one area where experts say a bipartisan consensus is forming and banks could see dramatically lower compliance costs.

Expert Analysis

  • FCPA Enforcement Picks Up In 2nd Half Of 2017

    Michael Skopets

    The last few months have seen increased enforcement activity related to the Foreign Corrupt Practices Act. Since August, the U.S. Securities and Exchange Commission and the U.S. Department of Justice have resolved more than 15 cases against corporations and individuals, issued several declinations, and initiated at least five new investigations, say Michael Skopets and James Tillen of Miller & Chevalier Ltd.

  • Hearing The Need For More Women’s Voices In The Courtroom

    Carrie Cohen

    For many female attorneys, the results revealed in the New York State Bar Association’s recently adopted report on female litigators in the courtroom were not encouraging but not terribly surprising. Each stakeholder in the litigation process — judges, law firms and corporate clients — should contribute toward increasing female voices in the courtroom, says Carrie Cohen of Morrison & Foerster LLP.

  • How Not To File A Successful Rule 29 Motion

    Daniel Wenner

    A defendant in a federal prosecution who argues that he or she did what the government says, but that the actions weren't a crime, may then be able to pursue a motion under Federal Rule of Criminal Procedure 29. But a recent case in the First Circuit underscores the difficulty of this strategy, says Daniel Wenner, a partner at Day Pitney LLP and former federal prosecutor.

  • Roundup

    My Strangest Day In Court

    Logo

    Every seasoned litigator has his or her fair share of courtroom stories. Check out the strange experiences that captured reader interest in this popular 2017 series.

  • Bitcoin Futures: A Closer Look At CME's Contract Design

    Nicole Moran

    The CME Group created a bitcoin futures contract even though the U.S. regulatory infrastructure has not developed a uniform treatment of bitcoin, putting in place a structure that may provide some stability to a volatile market, say members of Cornerstone Research.

  • The Landscape Of Financial Exploitation Rules: Part 2

    Clifford Kirsch

    In the concluding part of this series, attorneys with Eversheds Sutherland dive deeper into recently adopted rules addressing financial exploitation and how they may impact other requirements applying to financial institutions.

  • Roundup

    40 Years Of FCPA

    FCPA

    ​Dec. 19 marked the 40th anniversary of the Foreign Corrupt Practices Act. Catch up on this series featuring reflections from attorneys who have played a role in the evolution of FCPA enforcement, defense and compliance.​

  • How 2 Devices And 1 Domain Changed My Practice In 2017

    Paul Kiesel

    The question I ask about new technology is how can it improve the quality of my practice — and my life? This year, the iPhone X, the Apple Watch Series 3 and a .LAW domain have proven to be great investments, for professional and personal reasons, says attorney Paul Kiesel of Kiesel Law LLP.

  • ERISA Litigation Trends In 2017

    Julie Goldsmith Reiser

    Developments this year in litigation under the Employee Retirement Income Security Act raise new issues for 2018 — such as whether state retirement plans will be hindered by ERISA preemption litigation and whether courts will develop a consistent approach to standing in defined benefit plan cases, say Julie Goldsmith Reiser and Jamie Bowers of Cohen Milstein Sellers & Toll PLLC.

  • Alternative Fees: My Experience At Bartlit Beck

    J.B. Heaton

    Bartlit Beck was a wonderful place to work for 18 years, and the lawyers there are not only excellent attorneys but also great people. That said, I can look analytically at the Bartlit Beck fee model and make some observations on its pros and cons, says J.B. Heaton, founder of investment analytics company Conjecture LLC.