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Securities

  • June 13, 2018

    Immigration Atty Urges Court To Rethink DQ In EB-5 Suit

    A Chicago-based immigration attorney accused by the U.S. Securities and Exchange Commission of pocketing money from foreign investors seeking EB-5 visas urged an Illinois federal court Tuesday to rethink a decision barring him from representing several supplemental defendants in the case, rebutting contentions that there is a conflict of interest.

  • June 13, 2018

    Insys Can't Duck Investor Suit Over Opioid Spray's Financials

    Insys Therapeutics Inc. and its top brass largely lost their bid to boot an investor's fraud suit Tuesday when a New York federal judge found the complaint had adequately tied the company's alleged misstatements to a concrete loss, allowing the proposed shareholder action accusing Insys of overstating its fentanyl spray's financial strength to move forward.

  • June 13, 2018

    At SFO Trial Defense Claims Euribor Rig Was Honest Mistake

    A former Barclays PLC trader accused of illegally manipulating a key interest rate benchmark made an honest mistake when he asked colleagues to submit rates that would benefit the bank, his lawyer told a jury at a London crown court during closing arguments Wednesday.

  • June 12, 2018

    Guess Exec Resigns After Glaser Weil's Misconduct Inquiry

    Guess? Inc. has announced that co-founder Paul Marciano has resigned as executive chairman of the lifestyle brand after Glaser Weil LLP found he exercised “poor judgment” when communicating with models and photographers, adding that he and the company agreed to settle five individuals’ allegations of inappropriate conduct for $500,000.

  • June 12, 2018

    3rd Circ. Unconvinced Hertz Execs' 'Bad Tone' Indicated Fraud

    A Third Circuit panel on Tuesday pressed two pension funds to show why Hertz Global Holdings Inc.’s misrepresentations about its financial status were intentionally misleading, as they alleged in their securities fraud class action, and not merely the result of mismanagement.

  • June 12, 2018

    Puerto Rico Investors Cry Foul Over Sales Tax Revenue Deal

    Investors holding general obligation debt issued by Puerto Rico's government are pushing for tweaks to a pending settlement proposed to resolve a bitter fight between creditors over billions worth of sales tax collections, saying the currently proposed split is unacceptable.

  • June 12, 2018

    Ex-Morgan Stanley VP Traded On Hacked Co. Info, Jury Told

    A Brooklyn federal jury on Tuesday heard of how a former Morgan Stanley vice president and an ex-broker were allegedly part of a $30 million insider trading scheme that utilized hacked corporate press releases to trade ahead of earnings announcements and other company news, as an expected month-long trial kicked off.

  • June 12, 2018

    Investors Slam Fiat Chrysler's 'Bait And Switch' Discovery Bid

    Fiat Chrysler investors asked a New York federal judge Monday to reject the automaker’s request for a three-month extension of discovery in a stock-drop suit alleging the company lied about using emissions-cheating devices in vehicles and complying with safety recalls, calling it a "bait and switch" move.

  • June 12, 2018

    Consultant In SEC's Illicit Stock Sale Suit Nabs Early Deal

    A media advertising consultant in California will disgorge several thousand dollars to shake the U.S. Securities and Exchange Commission's suit alleging he funneled proceeds from the sale of unregistered securities to insiders at a company that manufactures hemp health products, according to a consent judgment filed Tuesday in federal court.

  • June 12, 2018

    Reg A+ Is Becoming A Popular Path To Pursue ICOs

    More companies are preparing initial coin offerings by using the so-called Reg A+ exemption, a streamlined initial public offering often dubbed a “mini-IPO,” though such campaigns face regulatory hurdles and other obstacles, capital-raising experts said at various talks Tuesday in New York.

  • June 12, 2018

    Attys Defend $16M LendingClub Fee Bid That 'Shocked' Judge

    Attorneys seeking $16 million for representing LendingClub Corp. investors in securities class actions against the peer-to-peer lending company defended their fee bid Monday to a California federal judge who previously said the amount “shocked” him, saying their work produced an “outstanding result under any measure.”

  • June 12, 2018

    GoPro Investors Seek Cert. In Undersupply, Defect Suit

    A proposed class of investors who say they overpaid for shares of GoPro Inc. because the company concealed shortages of its cameras and drones as well as a design defect asked a California federal court Monday for class certification.

  • June 12, 2018

    Watchdog Says DOL Is Stalling On OT, Fiduciary Rule Info

    A government watchdog that last year sued the U.S. Department of Labor seeking records related to its overtime and fiduciary rules told a Washington, D.C., federal judge Monday that it’s “concerned” the agency hasn’t been as forthcoming about its record searches as it should be.

  • June 12, 2018

    Ex-Oil Co. VP Fights SEC Disgorgement Bid Over EB-5 Scam

    A former official at Luca International Group LLC accused of helping perpetrate a $68 million Ponzi-esque scheme involving the EB-5 immigrant investor program told a California federal judge on Monday that she doesn’t owe authorities disgorgement and civil penalties, saying she was clueless as to the alleged securities violations.

  • June 12, 2018

    Pharma CEO Cops To $2M Drug Investment Fraud

    An Illinois man accused of pocketing about $2 million from investors in his Wisconsin pharmaceutical company by lying about his work surrounding an experimental drug pled guilty to a single count of wire fraud Tuesday.

  • June 12, 2018

    CFTC Says Fla. Woman Stole $870K In Precious Metals Fraud

    The Commodity Futures Trading Commission filed a civil enforcement action in Florida federal court on Tuesday alleging that the sole officer of a Boca Raton-based company defrauded three customers out of $870,000 in illegal, off-exchange retail commodity transactions for precious metals that they never received.

  • June 12, 2018

    SEC Claims Fla. Couple Defrauded Investors In Shopping App

    The U.S. Securities and Exchange Commission has obtained a temporary restraining order and emergency asset freeze to stop an allegedly ongoing investment fraud scheme purportedly carried out by a South Florida couple who claimed to be developing an internet shopping application, the agency announced Monday.

  • June 12, 2018

    Locke Lord Adds FINRA Arbitrator, Greenberg Traurig Alum

    Locke Lord LLP has added a former Greenberg Traurig LLP shareholder and Financial Industry Regulatory Authority arbitrator and mediator with nearly 30 years of securities industry experience as a partner in its West Palm Beach, Florida, office.

  • June 12, 2018

    Hospital Plaza Transfer Sank PE Firm's Deal, 3rd Circ. Told

    A private equity firm on Tuesday urged the Third Circuit to revive its $5 million case against a New Jersey hospital over the firm's would-be acquisition of a medical plaza under foreclosure, arguing that an ownership transfer that sank the sale ran afoul of the purchase deal.

  • June 12, 2018

    Pet Pharma Co. Sidesteps Investor Suit Over Dog Drug Delays

    A veterinary pharmaceutical company likely didn't mislead investors about the timeline for bringing an appetite stimulant for dogs to market, a New York federal judge said in dismissing a proposed securities class action alleging that a delay in the drug's availability caused the company's stock to nosedive.

Expert Analysis

  • Officials Must Note Financial Conflict Of Interest Law

    Adam Raviv

    The director of the U.S. Centers for Disease Control was forced to resign earlier this year after her investment manager purchased stock in tobacco and pharmaceutical companies on her behalf, creating a conflict of interest with her official role. The incident highlights how important it is for public officials to understand the conflict of interest statute and structure their investment arrangements accordingly, say attorneys with WilmerHale.

  • Crypto Market Surveillance Has Arrived

    Sharon Brown-Hruska

    The recent wave of spoofing and manipulation enforcement actions washing over cryptocurrency markets, aided by increasing market surveillance, may cause concern in some quarters. However, precedents in established futures and spot markets suggest that, in the long run, the market will likely see benefits from increased surveillance, say members of NERA Economic Consulting.

  • Opinion

    OFAC Digital Currency Plan Will Hurt Business, Not Terrorists

    Clif Burns

    The U.S. Department of the Treasury's Office of Foreign Assets Control's plan to add digital currency addresses to the specially designated nationals list will do little to advance OFAC's goals. However, it will impose additional and pointless screening duties on digital currency transactions for both U.S. and non-U.S. companies and financial institutions, says Clif Burns of Bryan Cave Leighton Paisner LLP.

  • With States' Crypto Regulation, Problems Multiply

    Jason Gottlieb

    State securities agencies are increasingly regulating the cryptocurrency space through administrative proceedings and summary cease-and-desist orders. But the uncertainties and ambiguities in current cryptocurrency regulation mean that multistate action — even if coordinated — will create a real risk of splintered authority, says Jason Gottlieb of Morrison Cohen LLP.

  • Trade Rep Hints At More CFIUS Scrutiny Of Biotech Deals

    Stephen Mahinka

    The Section 301 report issued in March by the United States Trade Representative highlighted foreign acquisitions and investments in the U.S. biotechnology industry. Counsel on both sides of a transaction in this sector should consider carefully whether involvement by foreign entities, especially from China, should be filed for review by CFIUS before closing, say Stephen Mahinka and Carl Valenstein of Morgan Lewis & Bockius LLP.

  • A Primer On Private Business Development Companies

    Cynthia Krus

    Financial sponsors and investors are seeking alternative investment products through which they can access the capital markets, and the private business development company is one such product that has recently been successful at raising capital. Here, Cynthia Krus and Kristin Hespos Burns of Eversheds Sutherland explain how private BDCs are formed and why they are desirable.

  • Kinross Settlement Highlights FCPA Risks For Mining Cos.

    Collmann Griffin

    In March, a Canadian gold and silver mining company agreed to pay nearly $1 million to the U.S. Securities and Exchange Commission over alleged violations of the U.S. Foreign Corrupt Practices Act. The case shows the risks faced by companies that fail to implement appropriate controls post-acquisition, particularly in the mining industry, says Collmann Griffin of Miller and Chevalier Chtd.

  • Electronic Roadshows: Why The Voice-Over Matters

    Steven Friend

    Recently, we have been involved in several registered Securities Act transactions in which the deal team considered posting slides to an electronic roadshow platform without a recorded voice-over from the issuer’s management. When confronted with this choice, members of the deal team are well-advised to think through the consequences, say attorneys with Hunton Andrews Kurth LLP.

  • Shareholder Arbitration Issue Isn't Going Away

    Kevin LaCroix

    In a recent letter to a member of Congress, U.S. Securities and Exchange Commission Chairman Jay Clayton said that he hasn't decided whether mandatory arbitration of shareholder disputes is appropriate, and that exploring the idea is not a priority for him. However, I believe the issue is going to require commission action sooner rather than later, says Kevin LaCroix of RT ProExec.

  • Introducing The Legal Industry To Millennial Business Owners

    Yaima Seigley

    ​The current business climate has produced vast opportunities for seasoned lawyers to create valuable connections with millennial business owners, but first lawyers must cleanse their palate of misconceptions regarding millennials, says Yaima Seigley of Isaac Wiles Burkholder & Teetor LLC.