Securities

  • February 20, 2018

    Railroad Cos. Tell High Court $13.3M In Options Not Taxable

    Subsidiaries of the Canadian National Railway Co. asked the U.S. Supreme Court on Friday to reverse a Seventh Circuit decision and conclude that $13.3 million in stock options given to their employees was not taxable income under a federal railroad law.

  • February 20, 2018

    SEC Settles Suits Over $1.8M Shell Company Scheme

    Three Israeli residents, a Washington, D.C., attorney and an Israeli accountant and his Baltimore-based firm have settled lawsuits with the U.S. Securities and Exchange Commission that alleged the group schemed to create numerous shell companies that made them more than $1.8 million in profits, agreeing to disgorgements and penny stock bars.

  • February 20, 2018

    Supreme Court Rejects Investor's Claims On Tax Shelter

    The U.S. Supreme Court on Tuesday rejected an investor’s appeal contesting the Internal Revenue Service’s disallowance of tax benefits being claimed from a tax shelter known as “BLIPS” that was promoted by KPMG.

  • February 20, 2018

    Digital Currency Co. Says CFTC's Suit Is Political

    A digital currency consultant has asked a New York federal judge to toss a federal regulator's suit accusing him and his company of scamming customers looking to invest in bitcoin and other virtual currencies, arguing that the "trumped-up" dispute is being driven by politics and not the law. 

  • February 20, 2018

    London Trumps NY As Citi's €290M Securities Dispute Venue

    A High Court judge ruled Tuesday that a claim filed by Citibank NA over the status of €290 million ($356 million) of debt securities will be decided in the English courts, dismissing the arguments from several defendants that New York would be a more appropriate jurisdiction.

  • February 16, 2018

    Rehab To Pay $25M To End Investor Suit Over Murder Probe

    Investors in AAC Holdings Inc. announced Friday that they have reached a $25 million settlement with the publicly traded substance abuse treatment center over their securities class action, which accused it and its top executives of covering up an active murder investigation in violation of the Exchange Act.

  • February 16, 2018

    Insmed Beats Stock-Drop Suit Over Lung Disease Drug

    A New Jersey federal judge on Thursday tossed a proposed class action alleging that Insmed Inc. misled investors over the likelihood that a lung disease drug would gain market approval in Europe, ruling that the biopharmaceutical company’s alleged misstatements and omissions didn’t meet the standards for securities law claims.

  • February 16, 2018

    Investor Groups Cheer Calls For Limiting Dual-Class Perks

    Investor advocates on Friday lauded SEC Commissioner Robert Jackson's call for sunset provisions on dual-class stock structures, which allow company founders to reserve extra voting power compared with public shareholders, calling it a pragmatic approach that could curb perceived abuses of the practice.

  • February 16, 2018

    Muni Market Shaken By Puerto Rico Special Revenues Ruling

    Municipal bonds secured by pledged special revenue streams have long been prized as safe bets, but a recent ruling in Puerto Rico’s restructuring cases that payment on those obligations is not required in bankruptcy has riled investors and left legal experts confounded over a largely untested Bankruptcy Code provision.

  • February 16, 2018

    Atty Botched Plea, Man Convicted Of Fraud Tells 2nd Circ.

    A man convicted in two separate multimillion-dollar fraud cases told the Second Circuit on Thursday that he suffered from ineffective counsel, saying his attorney never told him about a deal that would have consolidated his guilty pleas and potentially taken more than two years off his sentence.

  • February 16, 2018

    Pharma Co. Chiasma Can't Escape Investor Suit, Judge Rules

    A Massachusetts federal judge on Thursday ruled that biopharmaceutical company Chiasma Inc. must face a proposed class action alleging investors in its 2015 initial public offering were misled about the prospects for regulatory approval of its product candidate Mycapssa, an oral treatment for a rare hormonal disorder known as acromegaly.

  • February 16, 2018

    Takata Wins Nod For Ch. 11 Plan Confirmation, $1.6B Sale

    A Delaware bankruptcy judge agreed Friday to confirm Takata’s Chapter 11 plan that centers on a $1.6 billion sale to Key Safety Systems Inc. and uses proceeds to pay victims of Takata's dangerously defective air-bag inflators, after hearing that the major creditor groups were all on board.

  • February 16, 2018

    Former SEC Branch Chief Joins Dechert's DC Office

    Dechert LLP announced that it has acquired a former branch chief from the U.S. Securities and Exchange Commission’s division of investment management to work in the firm’s Washington D.C.-based corporate and securities practice group.

  • February 16, 2018

    FCC Halts Bitcoin Miner For Cell Network Interference

    The Federal Communications Commission said it has been forced to come down on a New York man whose operation of a bitcoin transaction monitor was interfering with T-Mobile’s cellular network.

  • February 16, 2018

    Swindled Mass. Investors Blame Canadian Portfolio Managers

    An attorney for 16 wealthy investors conned by an admitted securities fraudster and his sham hedge fund asked a Massachusetts federal judge on Friday to let them continue to pursue claims against Canadian portfolio managers who handled their money on the fraudster’s behalf.

  • February 16, 2018

    Newswire Hacker Can’t Beat $30M Securities Fraud Case

    A Brooklyn federal court rejected a former Morgan Stanley fund manager's request to trim his indictment for allegedly scheming to make $30 million by trading on information from stolen press releases, with the judge finding Friday the charges were sufficiently specific.

  • February 16, 2018

    Weil's Role Part Of Probe Of Breitburn Conflict Claims

    A New York bankruptcy judge Friday said he would hold a hearing to address a Breitburn Energy Partners LP bondholder’s claim of conflicts of interest between a prospective stalking horse bidder, a Breitburn lienholder and Breitburn bankruptcy counsel Weil Gotshal & Manges LLP.

  • February 16, 2018

    Kindred Investors Seek To Stop Humana's $4.1B Acquisition

    A proposed class of Kindred Healthcare Inc. shareholders filed a memorandum Friday in Delaware federal court supporting their motion to halt the progress of a $4.1 billion acquisition of the company by Humana Inc. and two private equity firms until alleged deficiencies in a proxy statement are cured.

  • February 16, 2018

    Lion Biotech Gets Some Claims Trimmed In Investor Dispute

    A California federal judge has dismissed two of six claims in a proposed class action against Lion Biotechnologies Inc., leaving in place allegations that it artificially inflated its stock price by secretly commissioning news stories but ruling the lead investor hadn’t traced his stock purchases to one of Lion’s allegedly misleading statements.

  • February 16, 2018

    Convicted Dewey Exec's SEC Deal Hinges On Criminal Appeal

    A settlement between the U.S. Securities and Exchange Commission and former Dewey & LeBoeuf LLP chief financial officer Joel Sanders, who was convicted of fraud, rests on the outcome of Sanders' criminal appeal, a Manhattan federal judge heard Friday.

Expert Analysis

  • DOJ Limitation On Agency Guidance Levels Playing Field

    Ronald Tenpas

    A new memo from the U.S. Department of Justice prohibiting DOJ litigators from treating any agency guidance document as binding offers needed relief to regulated parties, giving them a greater opportunity to push back against enforcement theories that rely on “clear” guidance regarding an underlying ambiguous or silent statute, say Ronald Tenpas and Gregory Etzel of Morgan Lewis & Bockius LLP.

  • A Big Step Toward Harmonizing Swap Trading Markets

    Stephen Humenik

    With a recent order from the U.S. Commodity Futures Trading Commission, swap trading market participants are now able to satisfy trading mandates in both the U.S. and the EU. Without this combined effort of regulators, swap dealers and traders would have faced a fragmented market this year, say Stephen Humenik and Uttara Dukkipati of Covington & Burling LLP.

  • Opinion

    Evolving Due Process In The Digital Age

    Stephen Kane

    Because courts have not modernized as quickly as companies like Amazon, Tesla and Apple, Americans are becoming increasingly dissatisfied, but technological innovations may be able to help Americans access their due process, says Stephen Kane of FairClaims.

  • Under New Tax Law, Time Is Running Out For Ponzi Victims

    Kevin Diamond

    Counsel representing victims of Ponzi schemes should note that the Tax Cuts and Jobs Act eliminates the theft tax loss provisions of the Internal Revenue Code for tax years after 2017. The time to act is now, before this important tax benefit goes away, says Kevin Diamond of Rico Murphy & Diamond LLP.

  • Series

    What I Learned In My 1st Year: A Judge's Example

    M.C. Sungaila

    Law school taught me how to think like a lawyer, but the district court judge I clerked for my first year out of law school taught me how to be a lawyer. This was the gift she gave to all of her law clerks, in one form or another, says M.C. Sungaila of Haynes and Boone LLP.

  • The Meaninglessness Of 'Disinterested'

    Richard Roth

    The Black Elk bankruptcy — related to the criminal indictment and upcoming trial of seven former Platinum Partners and Black Elk executives — involved a claimed disinterestedness that seems to indicate that the Bankruptcy Code’s disinterested requirement is something seasoned counsel can work around, says Richard Roth, a corporate and securities attorney.

  • Centers Of Influence Are Key To Small Law Firm Rainmaking

    Frank Carone

    In a national survey of 378 small law firms, partners ranked client referrals as the most important means of business development. Yet studies reveal that while professional services providers obtain most new clients from existing client referrals, their best new clients — the ones providing the largest pool of investable assets — overwhelmingly come from “centers of influence,” says Frank Carone, an executive partner at Abrams Fensterman.

  • Beware ICO Lawyers, You're The Next Target

    John Reed Stark

    Chairman Jay Clayton of the U.S. Securities and Exchange Commission recently gave an extraordinary speech reiterating his concerns about initial coin offerings while also adding a new twist. It's gatekeeper liability redux at the SEC, and lawyers connected to ICOs should be watching their backs, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • Recent Trends In Books And Records Demands

    Matthew Solum

    While stockholders of Delaware corporations have the right to inspect nonpublic corporate records, that right is not endless or unbounded. Courts are trending toward restricting what constitutes a proper purpose, and are allowing various conditions on the production of these documents, say Matthew Solum and Vera Esses of Kirkland & Ellis LLP.

  • Feature

    From Law Firm To Newsroom: An Interview With Bob Woodruff

    Randy Maniloff

    Lawyers who have left the traditional practice for perceived greener pastures are many. But the circumstances surrounding broadcast journalist Bob Woodruff’s departure are unique. Like none I’ve ever heard, says Randy Maniloff of White and Williams LLP.