The judge presiding over Puerto Rico’s historic restructuring proceedings ruled Monday that the territory’s insolvent electric company will remain under local government control as it restructures $9 billion worth of debt and addresses operational weaknesses, blocking a federal panel from installing an emergency manager to run the utility.
A Booz Allen Hamilton investor on Monday sued the government contracting giant’s top brass in Delaware federal court after the company announced it was being investigated by the U.S. Department of Justice for its accounting and cost charging practices.
An overhaul of the swaps market proposed in the 2010 Dodd-Frank Act should be reviewed to ensure that the policies enhance rather than restrict market “vibrancy,” U.S. Commodity Futures Trading Commission Chairman J. Christopher Giancarlo said Monday.
Citing an increased risk from data breaches, the U.S. House of Representatives approved a bill Monday that would increase security requirements for market data held by the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
New York’s state banking regulator said Monday that Credit Suisse AG has agreed to pay a $135 million fine to settle allegations of improper conduct in its foreign exchange trading business, including that some of its traders used chat rooms to swap confidential information with other banks’ traders in an effort to juice their own profits at customers’ expense.
The U.S. Securities and Exchange Commission has filed a suit in Pennsylvania federal court accusing Philadelphia commercial real estate lender Singer Financial Corp. and its sole officer of raising roughly $4.5 million through an illegal unregistered offering of unsecured promissory notes.
A federal jury in Boston on Monday began deliberating a whistleblower’s claim that her colleagues at Fidelity Investments methodically bullied and pushed her toward the door after she voiced concerns that expense miscalculations appeared to bilk shareholders.
ImmunoCellular Therapeutics Ltd. urged a California federal court on Friday to toss a proposed class action accusing the biotech company of an illegal stock promotion scheme around one of its brain cancer drug candidates, arguing that the alleged scheme’s disclosure came too late to have caused the losses claimed by the investors behind the suit.
An Arizona foreign exchange trader and his company have agreed to pay $2.3 million to settle the U.S. Commodity Futures Trading Commission's claims that the trader misappropriated clients’ funds and resorted to a Ponzi-style scheme to cover trading losses, according to a consent order filed Monday in Arizona federal court.
Lenders to the failed production company behind “American Idol” who accuse 21st Century Fox and Apollo Global Management of siphoning off its assets and leaving creditors with scraps as part of a complex merger of production companies they controlled have filed a new suit in New York state court after similar litigation in Los Angeles was put on hold.
The Delaware Chancery Court threw out a books and records demand against specialty plastics maker A. Schulman Inc. on Monday, saying the shareholder who brought the suit merely served to rubber-stamp an action motivated by New York law firm Levi & Korsinsky LLP.
The Tenth Circuit on Monday declined to rehear a case that found the formal announcement of a U.S. Securities and Exchange Commission investigation didn’t trigger coverage for MusclePharm Corp. under a Liberty Insurance Underwriters Inc. policy, an outcome the sports nutrition company says will widen a circuit split over the “exceptionally important” issue.
The Chapter 11 trustee of F-Squared Investments Inc. on Friday said a pair of excess insurers owe it $7.7 million for the costs the firm ran up defending against the U.S. Securities and Exchange Commission action that bankrupted it, arguing the insurers are wrongly claiming the SEC probe started the day before the policies went into effect.
Residential solar energy firm Sunrun Inc. and two executives have asked a California federal judge to dismiss a proposed investor class action that accuses them of inflating the company's booking statistics in order to juice its stock price, saying they never made false statements, never admitted to doing so and had no incentive to do so.
Ballard Spahr LLP has added a former New Jersey federal prosecutor, who is also the former attorney-in-charge of the U.S. attorney's office's outpost in Camden, as a partner to the firm’s white collar and internal investigations practice group, the firm announced Monday.
A former technology company executive will have to answer to claims he defrauded investors after a Texas federal court on Thursday let stand a trimmed-down U.S. Securities and Exchange Commission suit accusing him of orchestrating a scheme to misrepresent the capabilities of a new server.
A bipartisan group of senators on Monday unveiled a narrow deal to ease bank rules, including raising the asset level at which banks are subjected to enhanced supervision and other measures aimed at easing compliance for community banks.
Magellan Health Inc. has urged a Brooklyn federal judge to reject a request by investors in a senior care company it controls to halt plans to merge the company with another Magellan subsidiary, saying the investors’ demands could result in “mass confusion” for thousands of elderly patients.
Shareholders suing OvaScience Inc. for allegedly misrepresenting the success of its fertility treatment have urged a Massachusetts federal court to keep their proposed class action alive, saying they have sufficiently detailed their claims.
Barclays Bank PLC is set to face an unprecedented legal claim in the High Court on Tuesday when a British couple become the first private individuals to sue a high street bank for allegedly misselling them complex interest rate hedging products.
A New York bankruptcy judge’s recent opinion in the Arcapita Bank Chapter 11 case is certain to have a dramatic impact in adversary proceedings involving foreign defendants. Unfortunately for those foreign defendants, it may now be much more difficult to escape from those proceedings, says Mark Salzberg of Squire Patton Boggs LLP.
To the extent that companies have tolerated predominantly male leadership in the past because it was deemed necessary for growth and prosperity, or viewed diversity and the underrepresentation of women strictly as human resources issues, a growing body of research suggests otherwise, say Andrea Mitchell and Valerie Hletko of Buckley Sandler LLP.
Within their first year, associates should make it a priority to take on a pro bono matter and approach a partner about supervising the project. By collaborating with a partner on a pro bono case, young associates can cultivate sponsorship relationships while simultaneously contributing to the public good, say Michael Scudder and Jay Mitchell of Skadden Arps Slate Meagher & Flom LLP.
The Financial Choice Act proposes changes to the Congressional Review Act’s process for disapproving regulations issued by certain financial agencies. By replacing a passive disapproval process with an active approval process, a significant amount of power to impose regulations will be retained by Congress, say Gregory Hesse and Abigail Storm of Hunton & Williams LLP.
As a new attorney, it was astonishing to realize how little I knew. I soon began to appreciate that everyone I met had a unique take or way of doing something. Many things I learned during that first year from my colleagues are still incorporated into my practice today, says Patrick Mendes of Tyson & Mendes LLP.
There are various barriers to corporate pro bono work, including lack of malpractice insurance coverage, limited resources, and the transactional nature of the majority of in-house legal work. But at the end of the day, we’ve overcome many of these barriers, says Ann Warren, associate general counsel of Duke Energy Corp.
The U.S. district court in Minnesota is considering the government’s recent motion to dismiss a case brought by Fannie Mae and Freddie Mac shareholders alleging that the structure and actions of the Federal Housing Finance Agency violate the Constitution. The case, Bhatti v. FHFA, raises interesting questions that are worth exploring, says Saikrishna Prakash of the University of Virginia School of Law.
Christopher Scalia and Edward Whelan have published an indispensable collection of the late Justice Antonin Scalia's best speeches. "Scalia Speaks: Reflections on Law, Faith, and Life Well Lived" puts on full display Justice Scalia’s skilled writing, quick wit and uncommon wisdom on a wide range of topics — from law to turkey hunting, says Judge William Pryor of the Eleventh Circuit.
Financial Crisis Anniversary
The role of the general counsel has significantly grown in importance, with the GC now often replacing the senior partner in the outside law firm as the primary counselor for the CEO and the board. This inside counsel revolution was given great impetus by the financial crisis that started 10 years ago, says Ben Heineman Jr., former general counsel of General Electric Co.
The U.S. Securities and Exchange Commission has not been shy about enforcing the Foreign Corrupt Practices Act globally. But a recent case against Mexican homebuilding company Desarrolladora Homex and its executives makes clear that the SEC will not hesitate to enforce against foreign companies other provisions of the federal securities laws as well, says Brian Neil Hoffman of Holland & Hart LLP.