Securities

  • August 15, 2017

    FINRA Says Rep's ETF Trades Cost Customers $8.4M

    A former WFG Investments Inc. representative has agreed to be barred from the securities industry as a sanction for recommending trades in risky, nontraditional exchange-traded funds that caused $8.4 million in losses, according to a settlement filed Monday by the Financial Industry Regulatory Authority.

  • August 15, 2017

    Ex-Fed Gov. Tapped To Chair Scandal-Plagued Wells Fargo

    Wells Fargo & Co. said Tuesday that former Federal Reserve Gov. Elizabeth Duke will take over as chair of the embattled bank’s board next year, amid calls from lawmakers for the removal of all Wells Fargo board members in place during the fake-account scandal.

  • August 15, 2017

    Sheppard Mullin Adds Partners To Corporate Practice

    Sheppard Mullin Richter & Hampton LLP added two partners to its corporate practice earlier this month, signaling an expansion of its commercial transactions team, particularly in international mergers and acquisitions.

  • August 15, 2017

    Swiss Asset Manager Ducks Tax Fraud Charges With $5M Deal

    Swiss asset manager Prime Partners SA on Tuesday entered a deal in which the U.S. government agreed not to bring criminal charges for helping Americans dodge taxes after the firm opened its files on certain client accounts and agreed to pay $5 million.

  • August 15, 2017

    SIPC Recommends $32M Fee Approval For Madoff Trustee

    The Securities Investor Protection Corp. urged a New York bankruptcy court on Tuesday to approve a request by BakerHostetler for $32 million in legal fees for four months of discounted work managing the liquidation of Bernie Madoff's defunct investment firm, saying the firm has achieved substantial progress.

  • August 15, 2017

    CFTC Orders Sugar Trader To Pay $300K For Wash Trades

    A unit of a Brazilian sugar and ethanol giant that used improper wash trades to resolve account imbalances has agreed to pay $300,000 to end an investigation by the U.S. Commodity Futures Trading Commission, the regulator said on Tuesday.

  • August 15, 2017

    Ex-Stanford Advisers Want High Court To Force Arbitration

    Former financial advisers who sold investments in what turned out to be a $7 billion Ponzi scheme run by R. Allen Stanford have asked the U.S. Supreme Court to reverse the Fifth Circuit and order to arbitration the Ponzi scheme receiver’s attempt to claw back $215 million.

  • August 15, 2017

    Ex-Exec Claims Securities Fraudsters Can Legally Own Guns

    A Montana-based former technology company executive convicted of fraud has hired Attorney General Jeff Sessions' personal lawyer to bring a lawsuit on Monday arguing a ban on convicts owning guns contains an exemption for “securities and accounting offenses.”

  • August 15, 2017

    SeaWorld Says Investors Have No Right To Confidential Docs

    SeaWorld told a California federal court on Monday that investors in a securities suit are attempting to mislead the court by objecting to a confidentiality order, saying the theme park company's confidential documents are protected and have no bearing on the investors' bid for class certification.

  • August 15, 2017

    Mobile Shopping Tech Co. Can't Ditch Securities Fraud Claim

    A Texas federal judge rejected an attempt to throw out a securities fraud suit Monday in which a cloud-based mobile financial services company says it was duped into investing $6.5 million in a mobile wallet, coupon and rewards platform.

  • August 15, 2017

    $30M Settlement Floated In Sanchez Energy Investor Suit

    Representatives for Sanchez Energy Corp. and a group of shareholders proposed a stipulation in Delaware state court Monday that would end a yearslong derivative suit over the company’s acquisition of a mining tract the shareholders alleged was an insider transaction that caused Sanchez Energy to overpay for the assets.

  • August 15, 2017

    Ambry Genetics Investors Seek To Block $1B Sale To Konica

    Ambry Genetics Corp. investors sought a preliminary injunction late Monday to enjoin the company’s $1 billion sale to Konica Minolta Inc., immediately after filing a sealed putative class challenge to the deal and the company’s management in Delaware’s Chancery Court.

  • August 15, 2017

    Golf Club Maker Fights Bid To Enforce $19M Arbitral Award

    A golf club shaft manufacturer urged a California federal judge on Monday to reject a Korean investment fund’s bid to enforce an approximately $18.8 million arbitral award against the company, saying the court should vacate the ruling entirely or wait until the resolution of a related proceeding in South Korea.

  • August 15, 2017

    SEC Fines KPMG $6.2M Over Miller Energy Audit Failures

    KPMG LLP has agreed to pay more than $6.2 million in disgorgement and fines to settle the U.S. Securities and Exchange Commission’s allegations it failed to catch that now-defunct Miller Energy had overstated oil and gas assets by hundreds of millions of dollars, the SEC said Tuesday.

  • August 15, 2017

    Turkish Banker Denied Bail In Iranian Sanctions Case

    An executive at Istanbul-based Türkiye Halk Bankası AŞ accused of helping Turkish trader Reza Zarrab evade U.S. sanctions was denied bail Tuesday when a New York federal judge ruled there were no conditions or combination of conditions that would assure his appearance in court.

  • August 15, 2017

    SEC’s $104M Bid Is Too High, Penny Stock Manipulator Says

    The final defendant in a U.S. Securities and Exchange Commission case involving a “pump-and-dump” penny stock scheme for a Bob Marley-branded coffee company accused the SEC of overreaching in its $104 million bid for monetary relief, saying the proposed penalty is too high and doesn’t reasonably approximate his pecuniary gain.

  • August 15, 2017

    Arconic Investor Drops Suit Over Grenfell Tower Fire

    The Arconic Inc. investor who filed the first of three lawsuits against the company over alleged false statements related to the flammable exterior cladding materials it supplied for the construction of London’s Grenfell Tower — which caught fire — has dropped his case, according to a short filing in New York federal court on Monday.

  • August 15, 2017

    TransPerfect Mom Seeks Appeal Of Meeting Bid Rejection

    Shirley Shawe, the mother of one of TransPerfect’s embattled co-CEOs, asked the Delaware Chancery Court late Monday to allow an early appeal of the decision sinking her bid for a shareholder meeting she claims would have broken the deadlock that sparked a court-ordered sale of the legal translation firm.

  • August 15, 2017

    Reed Smith Asks Fed Court To Sit Out $6.8M SAC Fee Fight

    Reed Smith LLP has asked a New York federal judge who OK’d a $135 million insider trading class action settlement against SAC Capital Advisors to stay out of its state-court lawsuit against class counsel, saying its beef with Wohl & Fruchter LLP doesn’t fall under the judge’s purview.

  • August 15, 2017

    Feds Ease Capital Accounting For Some Derivatives

    U.S. banking regulators on Monday made changes to the way banks measure capital for margin payments on centrally cleared derivatives, potentially easing capital requirements for financial institutions.

Expert Analysis

  • A Closer Look At New Guidance On Bond Markup Disclosures

    Paul Eckert

    The Financial Industry Regulatory Authority and the Municipal Securities Rulemaking Board recently published new implementation guidance on the bond markup disclosure requirements set to take effect next spring. Here, attorneys with WilmerHale examine the guidance and the new questions it raises as dealers work to overhaul their systems.

  • How To Prioritize Your Law Firm's Crisis Response Plan

    Michelle Samuels

    If the media is going to cover your law firm’s crisis, they are going to cover it with or without your firm’s input. But your involvement can help shape the story and improve your firm’s image in the public eye, says Michelle Samuels, vice president of public relations at Jaffe.

  • Series

    15 Years Of SOX: A Whistleblower Promise Unfulfilled

    Jason Zuckerman

    Our practice consists primarily of representing whistleblowers under the Sarbanes-Oxley Act, and we have found that even at senior levels of a company, whistleblowers suffer swift and severe retaliation, say Jason Zuckerman and Matthew Stock of Zuckerman Law.

  • Possible Legal Precedents In TransPerfect Global

    Melvin Schweitzer

    In the aftermath of the judicially ordered sale of translation services company TransPerfect Global, much remains open regarding how much deference the Delaware Chancery Court should give to directors to resolve internal disputes, and when a directed sale is an appropriate remedy, says Melvin Schweitzer, former justice of the New York County Supreme Court now with Liddle & Robinson LLP.

  • Weekly Column

    Innovating For Wise Juries: Closing Argument

    Stephen Susman

    In the final article in this series on proposed innovations to the American jury trial, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project sum up the improvements they believe the U.S. jury system desperately needs.

  • A Light Regulatory Touch On Initial Coin Offerings

    Nicolas Morgan

    A recent report by the U.S. Securities and Exchange Commission makes clear that the commission intends to assert jurisdiction over some initial coin offerings, but it does not necessarily suggest that the agency will classify all cryptocurrencies or ICOs as securities. The SEC’s cautious approach may be just what’s called for on this rapidly evolving topic, say attorneys with Paul Hastings LLP.

  • Series

    15 Years Of SOX: It Is Time To Revisit The Burdens

    Adam Ingles

    The Sarbanes-Oxley Act — with Section 404 being its most burdensome mandate — was a regulatory “overcorrection” that many believe has stifled access to public capital markets and increased regulatory costs far more than any recent financial regulations ever will. The 15 years of post-SOX regulatory environment has been anything but favorable for new, entrepreneurial businesses, say Adam Ingles and Frank Gonzalez of MBAF.

  • 5 Questions All AFAs Should Answer Clearly

    Gregory Lantier

    While no particular form is required to establish a durable alternative fee arrangement, there are terms that should, for the benefit of both client and outside attorney, be expressly set forth in the agreement itself, but are often overlooked, say attorneys with WilmerHale.

  • Series

    15 Years Of SOX: The WorldCom And Enron Securities Cases

    Jeffrey Golan

    The private securities cases involving WorldCom and Enron, which were ongoing at the time the Sarbanes-Oxley Act was enacted 15 years ago, served notice on board members and corporate executives of the very real and costly consequences of being asleep at the switch, say Jeffrey Golan and Chad Carder of Barrack Rodos & Bacine.

  • Why The CFTC’s New Use Of NPAs Is Significant

    Rachel Cannon

    With its first-ever use of nonprosecution agreements in a spoofing case against Citigroup, the U.S. Commodity Futures Trading Commission is not sending smoke signals about its new enforcement strategy, but rather, is shouting through a bullhorn that it is shifting gears, say Rachel Cannon and Kristina Liu of Dentons.