Securities

  • September 19, 2017

    Kessler Topaz To Lead Consolidated Snap Investor Suit

    A proposed class of investors accusing Snapchat maker Snap Inc. of misleading them about the app's user growth will be led by Kessler Topaz Meltzer & Check LLP in a securities fraud suit that was consolidated by a California federal judge on Monday.

  • September 19, 2017

    Veon Must Face Investor Class Action, With Some Limits

    A New York federal judge on Tuesday ruled that European telecommunications company Veon Ltd., which admitted to paying bribes in Uzbekistan, can’t escape a proposed class action for failing to disclose its crimes to investors, finding that the suit was “in large part” strong enough to survive dismissal.

  • September 19, 2017

    Paxton Prosecutors Appeal Pay Ruling To Top Criminal Court

    Prosecutors in the felony securities fraud case against Texas Attorney General Ken Paxton on Tuesday asked the state’s highest criminal court to enforce a trial judge’s order they should be paid $300 an hour for their work, saying a lower appellate ruling threatens the fair administration of justice.

  • September 19, 2017

    AOL Seeks 10.3% Share Price Trim In Verizon Merger Suit

    AOL Inc. attorneys argued Tuesday for a 10.3 percent lower payment to stockholders who challenged the $50 per share terms of AOL’s sale to Verizon Communications Inc. in 2015, during a final round of arguments in a Delaware Chancery Court stock appraisal case.

  • September 19, 2017

    Feds Seek 51-Plus Months For Ex-Hunton Atty's Tipping

    Federal prosecutors are calling a former Hunton & Williams LLP patent partner’s hints about an upcoming Pfizer deal an “inexcusable breach of trust” by someone professionally tasked with protecting corporate secrets, and asked for a sentence of at least 51 months following the lawyer’s March conviction in New York federal court.

  • September 19, 2017

    Arent Fox Presses For Ex-Client's Communications With Attys

    Arent Fox LLP has urged a New York federal court to snub a magistrate judge’s recommendation to deny it access to communications between a former client suing for malpractice and the client’s other attorneys, saying the messages can’t be used “as both a sword and a shield.”

  • September 19, 2017

    Primary Insurers Must Cover Investor Claims, 9th Circ. Told

    Lloyd's of London Friday asked the Ninth Circuit not to revive a suit seeking to force it to pay $5 million on an excess policy into a shareholder settlement with a bankrupt subprime lender, saying the actual amount paid in the settlement does not exceed the policy limits.

  • September 19, 2017

    Dodd-Frank Rollbacks May Lead To Bank Failures, Panel Says

    A panel of former top financial regulators, policymakers and academics warned the Trump administration on Tuesday that some of the recommendations it's made for rolling back bank rules under Dodd-Frank and other laws could make it harder to prevent the collapse of global financial firms and mitigate the damage.

  • September 19, 2017

    VC Group Sues Over Delay Of Entrepreneur Immigration Rule

    The National Venture Capital Association filed a lawsuit Tuesday alleging the U.S. Department of Homeland Security and U.S. Citizenship and Immigration Services failed to follow proper procedures when they delayed a rule that would have allowed foreign entrepreneurs to live in the U.S. just a week before it was set to take hold.

  • September 19, 2017

    KIT Fraud Suspect's Trial Delayed To Review Late Laptop Docs

    A New York federal judge Tuesday pushed back the looming fraud trial of now-defunct video technology firm KIT Digital Inc.'s ex-CEO, blaming both sides for the confusion over documents stored on a laptop that was glancingly disclosed to the defense, which in turn never responded to an offer to examine it.

  • September 19, 2017

    King & Spalding Picks Up Deutsche Bank GC, SEC Vet

    King & Spalding LLP has hired the former Deutsche Bank general counsel who oversaw the bank's legal affairs during an array of scandals in the financial crisis era, who is also a former U.S. Securities and Exchange Commission enforcement czar and former SEC general counsel, it said on Tuesday.

  • September 19, 2017

    US Bank Wants Ambac RMBS Suit To Yield To State Actions

    U.S. Bank NA has asked a New York federal court to stay or dismiss a lawsuit by insurer Ambac Assurance Corp. that claims U.S. Bank failed to prevent losses on billions of dollars’ worth of residential mortgage-backed securities, saying there’s no reason for the court to weigh in on a dispute that has been working its way through state courts for several years.

  • September 19, 2017

    Securities Cases To Watch In Massachusetts

    Although Massachusetts may not have the securities law pedigree of states with Wall Street firms or Silicon Valley startups, a bevy of biopharmaceutical companies and some interesting state court decisions have securities practitioners keenly watching a number of cases. Here, Law360 looks at some of the hottest securities cases to follow in Massachusetts.

  • September 18, 2017

    Madoff Trustee Blasts Merkin's 'Double Recovery' Claims

    The trustee for Bernie Madoff's defunct investment firm on Friday slammed efforts to prevent him from both seeking $280 million from disgraced financier J. Ezra Merkin and subordinating Merkin's claims against the estate at an upcoming trial over Ponzi scheme proceeds, saying this “double recovery” concern is off-base and premature.

  • September 18, 2017

    Ex-Dewey CFO Says It's Only Fair He Doesn't Serve Time

    Former Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders urged a New York judge on Monday to impose a no-jail sentence, arguing the prosecution's request for a four-year sentence is turning "a blind eye to reality" in comparing Sanders with major Ponzi schemers.

  • September 18, 2017

    Wilmington Trust Seeks Fed Reserve Docs Before Fraud Trial

    Wilmington Trust Corp. has told a Delaware federal court that the Federal Reserve is in possession of documents that could help the bank defend against charges it hid hundreds of millions of dollars’ worth of overdue loans from investors and regulators.

  • September 18, 2017

    ChinaCast Bankruptcy Can't Stop Insurance Payout: Creditors

    ChinaCast Education Corp. creditors asked a New York bankruptcy judge on Monday to find that their $66 million securities class action judgment against the company the day before its bankruptcy filing must be paid out by insurers despite a bankruptcy litigation stay.

  • September 18, 2017

    Fraudster Who Used Slick Wall St. Video Pitch Gets 12 Years

    A Peruvian national who pled guilty to fraud after prosecutors accused him of scamming $1.2 million out of investors he solicited with the help of an office in Wall Street’s Trump Building and a slick online video set to Frank Sinatra’s “New York, New York” was handed a 12-year prison sentence in New York federal court on Monday.

  • September 18, 2017

    SAC Trader Seeks To Withdraw Insider Trading Guilty Plea

    An ex-portfolio manager at SAC Capital Advisors LP who admitted to insider trading and agreed to help the government asked a New York federal judge on Monday to let him withdraw his guilty plea after prosecutors shared evidence that he said significantly changes the calculus.

  • September 18, 2017

    CFTC Wins Sanctions Against 2 Jailed In $40M Ponzi Scheme

    A North Carolina federal judge on Monday ruled the U.S. Commodity Futures Trading Commission can have some but not all of the additional sanctions it wanted for two men who are doing time in federal prison for their roles in what prosecutors alleged was a $40 million Ponzi scheme involving a nonexistent currency trading platform.

Expert Analysis

  • When IPO Companies Stumble Out Of The Blocks

    Kevin LaCroix

    Snap Inc. was hit with a securities suit two months after its initial public offering earlier this year. More recently, Blue Apron Holdings was hit with a securities suit just seven weeks after its IPO. These cases underscore the securities litigation vulnerability of newly public companies, says Kevin LaCroix of RT ProExec.

  • A Very Active Year For The CFTC So Far

    Anne Termine

    Despite the lack of appointed commissioners until recently and the turnover of leadership, the U.S. Commodity Futures Trading Commission has announced more than 20 enforcement actions, proposed four rules and launched two new initiatives this year. The agency has been particularly active in bringing enforcement actions against individuals for fraud, misappropriation and false statements, say attorneys with Covington & Burling LLP.

  • DOJ Offshore Bank Resolution Offers Cooperation Road Map

    Matthew Lee

    The U.S. Department of Justice's nonprosecution agreement with Swiss asset management firm Prime Partners is a signal to other foreign financial institutions that the voluntary disclosure “window” remains open, says Matthew Lee of Fox Rothschild LLP.

  • 2 Del. Decisions Bring Practice Points For MLP Planners

    Thomas Mullen

    Two recent decisions by the Delaware courts — Brinckerhoff v. Enbridge Energy and Morris v. Spectra Energy — underscore the importance for a master limited partnership sponsor to avail itself fully of the latitude provided by the Delaware Revised Uniform Limited Partnership Act to privately order the affairs of the MLP, say attorneys with Potter Anderson & Corroon LLP.

  • An Emerging Patchwork Of Cybersecurity Rules

    Michael Bahar

    With the recent adoption of cybersecurity regulations governing broker-dealers and investment advisers registered in Colorado and Vermont, the landscape of cybersecurity regulation continues to evolve. For businesses not yet covered by cyber regulations, these latest moves indicate that the day of reckoning may be coming, say attorneys with Eversheds Sutherland.

  • Experts Must Investigate Materials They Rely On

    Jeffrey Klenk

    Experts are accorded wide latitude in terms of the materials they can rely upon in forming their opinions, but they must independently investigate those materials. Federal courts in New Jersey and Pennsylvania recently excluded expert testimony because the materials being relied upon had not been fully vetted, says Jeffrey Klenk of Berkeley Research Group LLC.

  • The Upside And (Possible) Downside Of IPO Filing Flexibility

    Keith Higgins

    Recent guidance that allows companies to submit registration statements to the U.S. Securities and Exchange Commission for confidential review and to omit certain information from the filings has been well-received. Initial public offering participants should consider, however, whether taking full advantage of these accommodations makes sense, says Keith Higgins of Ropes & Gray LLP.

  • Practicing Law In The Era Of 3rd-Party Litigation Funding

    David Silver

    The growth of third-party litigation funding has added a distinct variable to the world of civil litigation. Such funding has and will continue to change the calculus for many corporations and their defense counsel as to the tipping point between settling or pursuing a case to a court decision, says David Silver of Silver Public Relations.

  • Self-Collection In E-Discovery — Risks Vs. Rewards

    Alex Khoury

    As judges become better educated about the complexities of collecting electronically stored information, in particular the inefficacy of keyword searching, they are increasingly skeptical of self-collection. And yet, for many good reasons (and a few bad ones), custodian self-collection is still prevalent in cases of all sizes and in all jurisdictions, says Alex Khoury of Balch & Bingham LLP.

  • 2nd Circ. Has New Test For Determining 'Personal Benefit'

    Geoffrey Chepiga

    The Second Circuit in U.S. v. Martoma altered the standard for determining whether the “personal benefit” element of insider trading has been satisfied. If the decision survives a potential en banc review, it will be up to the lower courts to ensure the test has real teeth, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.