Securities

  • June 21, 2017

    Junior Staffer OK'd REIT's Challenged Filing, Jury Hears

    The engagement partner at the firm responsible for auditing American Realty Capital Properties’s SEC filing was asleep while a 26-year-old staffer used his “professional judgment” to clear a last-minute $13 million unsupported adjustment, the jury heard Wednesday in the New York federal fraud trial of ARCP’s ex-Chief Financial Officer Brian Block.

  • June 21, 2017

    Ex-Swisher Execs Convicted Of Securities Fraud Conspiracy

    Two former executives at dissolving cleaning company Swisher Hygiene Inc. were found guilty of conspiracy to commit securities fraud by a North Carolina federal judge Tuesday after a nearly three-week bench trial held earlier this year.

  • June 21, 2017

    Altor Bioscience Suit Claims Insiders Lowballed Merger

    Two Altor Bioscience Corp. investors sued billionaire physician Patrick Soon-Shiong, NantCell Inc. and others in Delaware's Chancery Court on Wednesday, seeking to block what they said was an insider-led, lowball deal to sell Altor to NantCell for a fraction of its value.

  • June 21, 2017

    Liberty Media Beats Insider Suit Over $400M Live Nation Buy

    A New York federal judge dismissed an insider trading suit Tuesday against Liberty Media, one of Live Nation’s largest shareholders, over a $400 million purchase of Live Nation stock, ruling the allegations didn’t support a claim that Liberty made an illegal “short swing” trade in violation of securities laws.

  • June 21, 2017

    NJ Biz Owner Charged In $1M 'Pump-And-Dump' Scheme

    Federal prosecutors on Wednesday announced that they charged a New Jersey man who ran what appeared to be a business consulting firm with participating in a $1.1. million scheme to inflate the stock of a health supplements company he controlled.

  • June 21, 2017

    Arbitration Over $27M Tin Futures Trading Loss Rebooted

    An Illinois appellate court found that a commodities trading company had the right to arbitrate claims for $27 million in losses against its brokerage firm Tuesday, reversing a lower court’s decision staying the arbitration before the Financial Industry Regulatory Authority and the London Metal Exchange.

  • June 21, 2017

    Feds Seek To Oust Texas Politico's Atty Over Client Conflict

    Federal prosecutors said in a motion unsealed Tuesday that the lawyer defending Texas state Sen. Carlos Uresti in a securities fraud case tied to a fracking sand company should be disqualified because he previously represented a client whom Uresti, also an attorney, allegedly defrauded.

  • June 21, 2017

    Fed Change Should Make Tests Less Stressful For Most Banks

    A change in the way the Federal Reserve will evaluate most banks’ ability to withstand a financial shock should make the central bank’s stress testing process for this year much less harrowing than in previous years, experts say.

  • June 21, 2017

    Inotek Investor Wants Look At Drug Test Statement Records

    An Inotek Pharmaceuticals Corp. shareholder asked the Delaware Chancery Court on Tuesday to open the company’s books, saying she is seeking proof that company officials failed to keep shareholders apprised of the poor results its glaucoma drug was showing at trial.

  • June 21, 2017

    Cattle Futures Traders To Pay CFTC $5.5M For Flouting Limits

    A Memphis trading company, two of its executives and a consultant will pay the U.S. Commodity Futures Trading Commission $5.5 million to resolve claims that they used straw buyers to sneak around limits on how many cattle futures contracts the company could hold, the agency said Wednesday.

  • June 21, 2017

    2nd Circ. Says 1st Circ.'s Materiality Test Is Unsound

    The Second Circuit on Wednesday declined to adopt the First Circuit’s standard for assessing the materiality of companies’ alleged omissions in their interim financial information, saying its sister court’s test can be “analytically counterproductive” and unsound.

  • June 21, 2017

    SEC Wants Briefs On CBOE Reviews Of Disciplinary Actions

    The U.S. Securities and Exchange Commission asked Tuesday for the Chicago Board Options Exchange Inc. and member clearing firm ABN AMRO Clearing Chicago LLC to weigh in on whether a deferential standard of review should apply in internal appeals of disciplinary actions.

  • June 21, 2017

    4 Firms Fight For Lead Counsel In Ocwen Investor Suit

    A battle broke out in Florida federal court Tuesday over which firm will be named lead counsel in a proposed class action accusing Ocwen Financial Corp. of assuring investors it was diligently working to comply with mortgage servicing regulations despite the Consumer Financial Protection Bureau claiming it failed "every stage of the mortgage servicing process."

  • June 21, 2017

    China Shares Finally Added To Key Emerging Markets Index

    Stocks benchmark provider MSCI Inc. said Wednesday it will add mainland Chinese shares on its emerging markets index — after three previous rejections —  a big step toward validating China’s efforts to gain credibility with global investors and open its capital markets abroad.

  • June 21, 2017

    Marblegate Picks New Fight With EDMC After 2nd Circ. Loss

    Marblegate Asset Management LLC, a lender to Education Management Corp. whose challenge to the troubled for-profit education firm’s restructuring plan was thwarted by the Second Circuit, has filed a new suit to make the borrower pay its debts under an alternate legal theory.

  • June 21, 2017

    Adviser Gets 2 Years In $1.3M ‘Cherry-Picking’ Scheme

    A Massachusetts investment adviser who admitted he kept lucrative trades for himself while pawning off unprofitable ones to his clients was sentenced to two years in prison Wednesday.

  • June 21, 2017

    Plaintiffs Bar Perspective: Grant & Eisenhofer's Michael Barry

    Being a plaintiffs lawyer requires you to be entrepreneurial in addition to just being a good lawyer. You need to find and develop the cases, protect your clients’ interests, and always look ahead, says Michael Barry of Grant & Eisenhofer PA.

  • June 21, 2017

    Besieged By Scandals, Uber Boss Kalanick Steps Down

    Uber Technologies Inc. CEO Travis Kalanick has stepped down as head of the company he helped create, a representative of the ride-share giant confirmed Wednesday, amid a growing storm of reports alleging rampant sexism and misconduct at the company under his leadership.

  • June 20, 2017

    Ex-Faruqi Atty Seeks to 'Rewrite' Fee Deal, Firm Tells 2nd Circ.

    A former partner at Faruqi & Faruqi LLP trying to revive claims on a piece of a $4 million settlement for clients she brought to the firm wants to "rewrite the terms" of an alleged fee commission deal, according to a brief the firm filed Monday with the Second Circuit.

  • June 20, 2017

    Surgical Co. Investors Nab $7M Settlement In Stock-Drop Suit

    Staar Surgical Co., accused by investors of wrongly downplaying the U.S. Food and Drug Administration's concerns about its manufacturing practices, has reached a $7 million deal to end the litigation, according to a proposal filed in California federal court Tuesday.

Expert Analysis

  • 'Materialization Of Risk' In Securities Class Actions: Part 2

    Dorothy Spenner

    In the final installment of this two-part series, attorneys with Sidley Austin LLP discuss litigants’ and courts’ treatment of the "materialization of risk" theory at the class certification, summary judgment, and trial phases of a securities class action.

  • Opinion

    Big Business Lobby Tries To Hobble Litigation Finance, Again

    Allison Chock

    In its most recent petition advocating mandatory disclosure of litigation finance, the U.S. Chamber of Commerce simply rehashes the same arguments from its previous failed efforts to convince the Committee on Rules of Practice and Procedure of the dire implications of undisclosed funding relationships, say members of IMF Bentham Ltd.

  • 'Materialization Of Risk' In Securities Class Actions: Part 1

    Dorothy Spenner

    In this two-part series, attorneys with Sidley Austin LLP discuss how the "materialization of risk" theory plays out at the various phases of a securities fraud class action.

  • Tools To Remedy Defective Corporate Acts In Delaware

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    Sections 204 and 205 of the Delaware General Corporation Law can be effective tools for corporations and their counsel to remedy defective corporate acts or provide clarity on issues that, while not necessarily defective, may be causing corporate uncertainty, say Jenness Parker and Kaitlin Maloney of Skadden Arps Slate Meagher & Flom LLP.

  • A Review Of Recent Cases Against Execs: Part 2

    Lauren Briggerman

    In the second half of their summary of major government investigations affecting corporate executives this spring, attorneys with Miller & Chevalier Chtd. highlight key developments that affect executives beyond the investigation phase, including noteworthy sentencings, judicial rulings, and government policies and guidance.

  • A Review Of Recent Cases Against Execs: Part 1

    Lauren Briggerman

    Several recent developments in significant government investigations highlight the aggressive tactics prosecutors are deploying and the risks faced by corporate executives. However, there have been relatively few charges brought against corporate executives in major government investigations this spring, say attorneys with Miller & Chevalier Chtd.

  • 4 Cybersecurity Considerations To Minimize D&O Exposure

    Richik Sarkar

    Courts have historically set a high threshold for finding directors and officers personally liable for breaches of fiduciary duties. However, the standards with respect to director and officer liability for damages resulting from cyberattacks are evolving, and the personal exposure will increase, says Richik Sarkar of McGlinchey Stafford PLLC.

  • New Wave Of Lehman Litigation Appears To Be Imminent

    Philip Stein

    Thousands of mortgage lenders across the country either recently received, or will soon be receiving, from Lehman Brothers Holdings Inc. a document that may seem innocuous but likely presages a future lawsuit by LBHI against the recipient, says Philip Stein of Bilzin Sumberg Baena Price & Axelrod LLP.

  • How PSD2 Is Revolutionizing Payments In Europe

    Scott McInnes

    The revision to the EU Payment Service Directive, known as PSD2, is part of a wave of legislation currently transforming the European Union's payment industry. Some of the new provisions may affect U.S. companies, whether they are involved as merchants or card issuers, says Scott McInnes of Bird & Bird LLP.

  • A Case For Shareholder-Approved Limits On Director Pay

    James Earle

    The Delaware Chancery Court's decision in Investors Bancorp strongly validates the use of specific shareholder-approved limits on nonemployee director pay as an effective defense against shareholder claims challenging director compensation decisions, say attorneys with K&L Gates LLP.