A Bahraini bank and the investment arm of a Yemeni bank cannot avoid Chapter 11 clawback suits brought by creditors of Arcapita Bank BSC, a New York bankruptcy judge ruled Friday, saying the parties knowingly availed themselves of the U.S. court system by conducting transactions through domestic accounts.
A financial adviser that provided analysis to baby formula maker Synutra International Inc. in a $125 million take-private bid last year asked a Delaware Chancery Court judge on Thursday to be dismissed from the case because aiding and abetting claims lodged against it aren't backed up by any facts in a shareholder complaint.
Attorneys representing a shareholder of C&J Energy Services Inc. told a Delaware Chancery Court judge Friday that their efforts in a challenge to the $2.9 billion merger of C&J and Nabors Industries Ltd. justify a $5 million fee award because the suit led to a $250 million reduction in the cash paid by C&J in the deal.
The principal of an investment company pled guilty to commodities fraud in a New York federal court on Friday after taking in $400,000 of investors’ money and using it for personal expenses and to pay off previous investors instead of making promised off-exchange foreign currency transactions.
PricewaterhouseCoopers LLP fundamentally bungled its auditing responsibilities when it failed to scrutinize mortgage transactions and missed a fraud scheme that led to the downfall of the bank PwC was supposed to monitor, the Federal Deposit Insurance Corp. said in D.C. federal court Friday.
A Minnesota federal judge on Friday threw out a proposed class action alleging Polaris Industries Inc. concealed the true risks to its business resulting from defects in its off-road vehicles, finding that the investors behind the suit hadn’t backed up their securities fraud claims with any actionable misstatements or omissions.
Entwistle & Cappucci LLP and Susman Godfrey LLP on Friday nabbed the co-lead counsel spots in a consolidated proposed class action alleging Valeant Pharmaceuticals and billionaire investor Bill Ackman’s hedge fund engaged in an insider trading scheme that cost derivatives investors billions.
A recent Treasury Department report outlined recommendations for easing Dodd-Frank Act safeguards on the kinds of asset-backed securities that helped fuel the financial crisis, and critics say that could open the door to risky lending activity at banks.
The D.C. Circuit on Friday partially remanded a former Penn Mutual Life Insurance Co. broker-dealer’s appeal of a lifetime ban by the Financial Industry Regulatory Authority for filing false expense reports, asking the U.S. Securities and Exchange Commission to consider whether the punishment was excessive.
Citibank NA's agreement to return $1.74 billion to the Lehman Brothers estate and cut short a trial over closeout calculations for derivatives trades that went into default after Lehman's collapse is sealed, as the New York bankruptcy judge who oversaw the monthslong trial happily signed the deal on Friday.
The court-appointed receiver handling the Ponzi implosion of Stanford International Bank asked a Texas federal judge on Thursday to overturn a jury's decision keeping $88 million in Stanford cash in the hands of the cable and truck-racing magnate who received it shortly before Stanford collapsed.
Citing lack of jurisdiction under any theory, a Delaware court on Friday dismissed a potential $1.3 billion contract breach claim filed by enterprise software firm R3 HoldCo LLC against blockchain developer Ripple Labs and its XRP cryptocurrency subsidiary.
Media company iHeart Communications Inc. didn’t violate contracts with investment funds that lent it billions when it transferred $516 million in stock from one subsidiary to another, a Texas appellate panel ruled Wednesday, finding those contracts didn’t require the transfers to have a profit motive.
A Utah man has agreed to cough up more than $9.1 million to the U.S. Securities and Exchange Commission to settle the agency’s claims that he and his now-defunct company Silverleaf Financial LLC duped investors out of money raised to purchase defaulted loans on property in Florida and Colorado.
Executives at Insulet Corp., a manufacturer of insulin pumps, misrepresented the success of a new-product rollout, ultimately causing shares of the company to plunge, a shareholder claimed in a derivative suit filed Friday in Massachusetts federal court.
A New York federal judge won’t rethink his decision to give a green light to some of Commerzbank AG’s claims in its suit over the Bank of New York Mellon’s alleged bungling of duties to a slew of residential mortgage-backed securities trusts and a collateralized debt obligation, saying Thursday that he applied the right legal standard.
The Internal Revenue Service said Friday it will increase its scrutiny of certain stock distributions, mergers and liquidations and has begun reconsidering related issues that the agency has ruled favorably on in the past.
September saw several U.S. Department of Justice attorneys make mid-career moves, including accomplished appellate attorneys who joined Sidley Austin LLP and DLA Piper, a former Foreign Corrupt Practices Act enforcer who headed to Hughes Hubbard & Reed LLP, and the rare lateral hire of an ex-prosecutor by Cravath Swaine & Moore LLP.
The Federal Energy Regulatory Commission and Barclays PLC have brokered a settlement ending the banking giant's fight against the agency's bid to impose $453 million in market manipulation penalties, according to records filed in California federal court Thursday.
Deputy Attorney General Rod Rosenstein recently said he aims not to be remembered for a single memo but instead will embark on a wide-ranging review of corporate charging policies with the input of corporate and other stakeholders, an effort experts say may bring a reboot.
Beyond the stark lesson of the costs associated with bribing foreign officials, there are several key takeaways from Telia’s recent $965 million Foreign Corrupt Practices Act penalty, including the Trump administration’s continuing commitment to enforcing the FCPA and extracting significant settlements, say attorneys with Kirkland & Ellis LLP.
The Delaware Court of Chancery is celebrating the 225th anniversary of its creation as that state’s court of exclusive equity jurisdiction. Although the court is viewed today as one of the world’s pre-eminent expositors of business enterprise law, that outcome would never have been envisioned when the court was constitutionally established in 1792, says former Delaware Justice Jack Jacobs, now with Sidley Austin LLP.
Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.
While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.
Under the U.S. Supreme Court's decision in ANZ Securities, the statute of repose serves as an absolute time bar to individual class members’ institution of new, individual actions. But the decision also provides a clear directive to institutional investors and their fiduciaries to implement practices and procedures to ensure that valuable securities recoveries are not lost to the statute of repose, say Blair Nicholas and Dave Kapla... (continued)
The Wey prosecution in the Southern District of New York is a useful example of how government searches that appear to be proper based on the trappings of propriety — a warrant, an affidavit, good faith — can actually be far from it, says Daniel Wenner of Day Pitney LLP.
The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.
The U.S. Securities and Exchange Commission's amended rules of practice — which became effective one year ago — provide little added procedural benefits for respondents and suffer from a general lack of clarity, say Terence Healy and Elizabeth Solander of Hughes Hubbard & Reed LLP.
What makes the practice of law so stressful? Our thesis is that it comes from being terrible to each other. As a plaintiffs lawyer and a defense lawyer, we asked what we believed our opposition thought about us and how our opposition judged us — and then we compared notes, say Daniel Karon of Karon LLC and Philip Calabrese of Porter Wright Morris & Arthur LLP.
Most states have statutes that provide a detailed rescission offer process to cure securities laws violations. In the federal context, rescission offers have been made with consideration of Section 12 of the Securities Act. Here, Robert W. Pommer III and Darren J. Sandler of Kirkland & Ellis LLP discuss the remedy of rescission and its application to the sale of unregistered cryptocurrency tokens.