Securities

  • December 5, 2017

    Investors Say AmTrust's Reported Metrics Weren't Opinions

    Investors in insurer AmTrust Financial Services Inc. have pushed back against bids to dismiss their proposed class action stemming from accounting problems that led the company to restate a number of its quarterly and annual results earlier this year, telling a New York federal court the company can’t claim its allegedly misstated financial metrics were just opinions.

  • December 5, 2017

    SEC Atty Joins Perkins Coie In Calif. As Partner

    Perkins Coie LLP added a U.S. Securities and Exchange Commission attorney to its San Francisco office as a partner with a focus on blockchain technology, the firm announced Monday.

  • December 5, 2017

    Overseas Tipster Nets $4.1M SEC Whistleblower Award

    The U.S. Securities and Exchange Commission on Tuesday said it would be paying out $4.1 million to an overseas tipster who helped the agency bust vast and long-running securities violations at their former company.

  • December 5, 2017

    ITT Educational Execs Can't Ditch Investor Fraud Row: SEC

    The U.S. Securities and Exchange Commission on Monday fired back at a bid by two former executives of bankrupt ITT Educational Services Inc. to toss allegations that they hid widespread student loan defaults from investors, saying there is plenty of evidence to take to a jury beyond allegedly misleading statements.

  • December 5, 2017

    Dodd-Frank Rollback Bill Moves Out Of Committee Unchanged

    A Senate panel on Tuesday advanced a bipartisan package of changes to the Dodd-Frank Act, rejecting a slew of amendments from more liberal Democrats that could have altered the delicate framework that allowed lawmakers from both parties to produce the compromise bill.

  • December 5, 2017

    2nd Circ. Revives Alibaba Securities Class Action Over IPO

    The Second Circuit on Tuesday reinstated a putative securities class action against Alibaba Group Holding Ltd. and several executives after finding that a lower court judge improperly dismissed the suit tied to the company's $25 billion initial public offering.

  • December 5, 2017

    Investor Sues HIG, Bain Capital Over $760M Facility Deal

    A Surgery Partners Inc. shareholder on Monday told the Delaware Chancery Court that Bain Capital Private Equity was allowed to work both sides of a deal and get favorable terms to finance the $760 million acquisition of a surgery facility owner this year.

  • December 5, 2017

    SEC Approves NYSE Plan To Delay End-Of-Day Material News

    The U.S. Securities and Exchange Commission on Monday approved a New York Stock Exchange plan to bar companies from releasing end-of-day material news for up to five minutes after markets close, a move intended to prevent price discrepancies and market confusion.

  • December 5, 2017

    KBR Moves To Nix Shareholder Suit Over Fraud Investigation

    KBR Inc. told a Texas federal court on Monday that it should throw out a proposed investor class action against the company, arguing the investors had not clearly identified any allegedly false or misleading statements KBR made related to a U.K. bribery and corruption investigation.

  • December 5, 2017

    BNY Mellon Says Royal Park’s Proposed Class Still Lacking

    The Bank of New York Mellon Corp. has asked a New York federal judge to reject a new effort to allow a case over failed mortgage-backed securities it oversaw to advance as a class action, saying Royal Park Investments' class definition is still too “expansive and amorphous” to be certified.

  • December 4, 2017

    Targeted Bill Could Bring First Broad Changes To Dodd-Frank

    A Senate panel on Tuesday is set to mark up bipartisan legislation that would ease certain Dodd-Frank rules for community banks and shrink the number of big banks subject to tougher supervision, marking the first legislative effort to roll back post-financial crisis rules that has a potential path to success.

  • December 4, 2017

    Level Global Exec Fights Insider-Trading Raid At 2nd Circ.

    Level Global Investors LP founder David Ganek asked the Second Circuit on Friday to rethink its October dismissal of his claim that a 2010 insider-trading raid violated his rights, saying evidence used to justify the raid was fabricated and shouldn’t be shielded by probable cause established from other information.

  • December 4, 2017

    Fisker Judge Won't Ax Suit Over Ch. 11 Spinoff Stock Sale

    A Delaware bankruptcy judge declined Monday to throw out claims from Fisker Automotive’s liquidating trustee challenging a stake-diluting equity sale from the company spun off after the electric carmaker’s Chapter 11 sale, ruling that the trustee raised plausible concerns there might have been a breach of fiduciary duty.

  • December 4, 2017

    Justices Won't Hear Banks' Appeal In FDIC's $140M MBS Suit

    The U.S. Supreme Court on Monday said it won’t review a Second Circuit decision allowing the Federal Deposit Insurance Corp. to move forward with a $140 million mortgage securities suit against a group of five banks, leaving in place the appellate court’s interpretation of a so-called extender statute in the Financial Institutions Reform, Recovery and Enforcement Act.

  • December 4, 2017

    SEC Adds Defendant To Hexing Adviser’s $20M Ponzi Suit

    The U.S. Securities and Exchange Commission announced the addition Monday of a new defendant to civil and criminal actions against a financial adviser previously barred from the industry for inflating her assets and now accused of raising $20 million used to make Ponzi payments, while casting "spells" on investigators.

  • December 4, 2017

    NYSE Seeks To Lower Required No. Of Investors For SPACs

    The U.S. Securities and Exchange Commission has requested public comment on a New York Stock Exchange proposal to ease rules on special-purpose acquisition companies, which include halving the minimum number of investors and adding a capital requirement to exempt SPACs from penny-stock rules.

  • December 4, 2017

    Zurich Wants Quick Win On Tech Data's SEC Investigation

    Zurich American on Friday asked an Illinois federal court to toss a suit from a tech distributor for failing to reimburse the company for millions of dollars spent responding to a U.S. Securities and Exchange Commission investigation, saying investigations aren’t covered by the policy.

  • December 4, 2017

    Investors Tell 1st Circ. Sarepta Hid FDA Testing Issues

    A group of shareholders asked the First Circuit on Monday to revive their securities class action claiming executives at Sarepta Therapeutics Inc. selectively omitted facts and misled investors in 2014 about the clinical trial and regulatory outlook of a treatment for the most common form of muscular dystrophy called Duchenne.

  • December 4, 2017

    Court To Consider Expert In $6.5B Solera Appraisal Fight

    Delaware’s chancellor said Monday he was considering the use of an expert in deciding part of a $2 billion stockholder dispute over the appraisal of Solera Holdings Inc. after its $6.5 billion sale to Vista Equity Partners LP in 2015, citing a bruising reversal in an earlier case.

  • December 4, 2017

    SEC Accuses Accounting Firm Of Fraud Over Microcap Audits

    The U.S. Securities and Exchange Commission on Monday accused a California-based public accounting firm and a number of its current and former partners of doing flawed audit work for an energy services holding company and two other penny-stock company clients that have themselves been accused of fraud by the agency.

Expert Analysis

  • Roundup

    Financial Crisis, 10 Years On

    Thumbnail

    One decade since the first signs of trouble, members of the Financial Crisis Inquiry Commission, Obama administration officials, legal industry experts, and others explore the profound impact of the Great Recession.

  • SDNY Case Raises Provocative Questions On US Jurisdiction

    Louis Rothberg

    U.S. v. Reza Zarrab, set to start trial this month in the Southern District of New York, is likely to affect the manner in which entities and individuals decide to comply with the Office of Foreign Assets Control's secondary sanctions and represents a critical interpretive question regarding the International Emergency Economic Powers Act, say attorneys with Morgan Lewis & Bockius LLP.

  • Initial Coin Offerings May Face A Global Crackdown

    Paul Anderson

    In recent years, initial coin offerings have exploded into the spotlight, but following their recent ban in China and South Korea, and mobilization from a number of top financial regulators in the U.S., U.K. and Australia, it is almost certain that we will see rapid developments in ICO regulation, say Paul Anderson and Harriet Rogers of Squire Patton Boggs LLP.

  • Roundup

    Judging A Book

    Constance Baker Motley

    Are the latest books on the judicial system worth reading? Federal judges share their thoughts in this series of book reviews.

  • Don't Waste This Planning Cycle: Year-End Strategies

    Hugh A. Simons

    Law firms are businesses where partners operate with significant autonomy. To see their priorities translate into individual partner action, firm leaders should use a few collaborative strategies, suggests Hugh A. Simons, former senior partner of The Boston Consulting Group and former COO of Ropes & Gray LLP.

  • Opinion

    CRA Review Of Bank Regulatory Guidance Is A Bad Idea

    Michael Silva

    Following the recent determination that the Interagency Guidance on Leveraged Lending is subject to the Congressional Review Act, a congressman urged bank regulators to review all of their existing guidance and determine if any should be submitted to Congress. However, regulators should respectfully decline to do so, says Michael Silva, chairman of the financial services regulatory practice at DLA Piper.

  • Financial Crisis Anniversary

    10 Years After Crisis, What We Still Need To Do

    H. Rodgin Cohen

    We can all sleep easier at night because financial reforms have produced a considerably strengthened banking system. This desirable state, however, should not lead to somnambulism. We must still attend to at least four areas of concern, say Rodgin Cohen and Mitch Eitel of Sullivan & Cromwell LLP.

  • What A Solar Eclipse Has To Do With Market Efficiency

    Daniel Bettencourt

    A common criticism of the event study methodology for testing market efficiency is that the number of events is insufficient and that the results cannot be generalized for the entire class period. That's where Albert Einstein and the 1919 total solar eclipse come in, say Daniel Bettencourt and Steven Feinstein of Crowninshield Financial Research.

  • MiFID II Research Unbundling — Crisis Averted?

    Rob Moulton

    Recent guidance from key securities regulators on both sides of the Atlantic reflects a coordinated effort to address the incompatibilities between the U.S. regulatory regime and the European Union's new MiFID II rules on research unbundling. However, that the problem arose at all points to a much larger issue, say attorneys with Latham & Watkins LLP.

  • Why Securities Lawyers Are The New Employment Lawyers

    Christopher Regan

    Whistleblower retaliation claims have a unique securities law slant and involve sensitive, unresolved areas that should cause all stakeholders to consider whether the typical employment lawyer is equipped to handle these cases, say attorneys with Buckley Sandler LLP.