Securities

  • September 15, 2017

    Man Who Pled Guilty In $96M Ponzi Scheme Gets 12 Years

    A former investment fund manager who admitted to fraud after he was charged with operating a $96 million Ponzi scheme with his brother-in-law was sentenced to 12 years in prison on Friday and ordered to repay nearly $68 million, federal prosecutors in Brooklyn, New York, said in a statement.

  • September 15, 2017

    CBS Says Redstone's Bonus Was Informed Business Decision

    An attorney representing CBS Inc. and its board of directors told a Delaware Chancery Court judge Friday that the compensation awarded to an ailing Sumner Redstone in 2015 and 2016 was a measured action of the board’s compensation committee and is protected by the business judgment rule.

  • September 15, 2017

    IRS Proposes New Rules Affecting Registered Obligations

    The Internal Revenue Service on Friday proposed new rules amending the definition of obligations requiring registration and attempting to clarify the types of arrangements that qualify as pass-through certificates.

  • September 15, 2017

    Offshore Penny Stock Manipulator Must Pay $58M

    A California federal judge has slapped an offshore investor with a nearly $58 million judgment over his role in a pump-and-dump scheme involving a Bob Marley-branded coffee company, ruling Thursday that the sanctions sought by the U.S. Securities and Exchange Commission didn’t run afoul of a recent U.S. Supreme Court decision or the U.S. Constitution.

  • September 15, 2017

    Sens. Introduce Anti-Equifax Bill, AGs Seek End To Fees

    Two U.S. senators introduced a new bill Friday that would give consumers more control over their own credit data in light of Equifax’s massive data breach, the same day a bipartisan group of 33 attorneys general sent a letter demanding that the credit reporting agency stop charging consumers attempting to freeze their credit.

  • September 15, 2017

    SEC Settles With Day-Trade Schemer Over Thefts

    The U.S. Securities and Exchange Commission has reached a settlement with the owner of a day-trading website who pled guilty to a role in a $1.4 million customer theft scheme, the agency told a New Jersey federal judge on Friday, asking for approval of the deal.

  • September 15, 2017

    Ex-SunEdison Execs Get OK For $17M In Investor Deals

    A New York federal judge on Thursday preliminarily approved settlements of $14.7 million and $2.1 million in separate shareholder class actions alleging the former directors of bankrupt renewable energy giant SunEdison Inc. maintained faulty internal controls and provided inaccurate financial statements that misled investors.

  • September 15, 2017

    Justice Strine Catches Flak For Delaware's Diminished Rep

    Delaware’s Chief Justice Leo E. Strine Jr., with his biting wit and forceful personality on the bench, is facing fire from some for the First State’s tarnished reputation among many business leaders, with attorney Alan Dershowitz calling him “an unfortunate face” for the state.

  • September 15, 2017

    Spitzer Defamation Suit Still Alive After 4 Years: A Timeline

    After four years of litigation, former AIG chief Maurice “Hank” Greenberg’s defamation lawsuit against former New York governor Eliot Spitzer has been partly cleared to move forward by a New York State appeals court.

  • September 15, 2017

    Texas Judge Won't Nix State Sen.'s Kickback Indictment

    A Texas federal judge on Thursday denied a motion to dismiss an indictment against Texas state Sen. Carlos Uresti, D-San Antonio, related to alleged kickbacks for a medical services contract at a county jail, rejecting the argument that the government had only alleged Uresti was paid “gratuities,” and not bribes.

  • September 15, 2017

    Deals Rumor Mill: Lyft, JD.com, CK Infrastructure

    Google's parent company may invest about $1 billion in Lyft, a subsidiary of Chinese internet commerce company JD.com is in talks to buy a roughly $1.5 billion stake in Chinese brokerage First Capital Securities, and CK Infrastructure is mulling a bid for U.K. energy firm Cory Riverside.

  • September 15, 2017

    Fight Over Diamond Funds Won't Go Back To State Court

    A Florida federal judge refused Friday to kick back to state court a dispute between the shareholder of a United Arab Emirates-based company that trades in Angolan diamonds and his family, who are also shareholders in the company, saying the suit had been properly removed under an arbitration clause in their contract.

  • September 15, 2017

    Stanford Receiver Loses $88M Clawback Bid

    A Texas federal judge shut down a post-verdict attempt to revive an $88 million clawback suit linked to the $7 billion Stanford Ponzi scheme on Thursday, saying there's no justification for questioning the jury's finding that no payback was required.

  • September 15, 2017

    Cadwalader Adds SEC Litigator, 2 Others In NY, DC

    A former New York federal prosecutor, a U.S. Securities and Exchange Commission senior counsel and an Olshan Frome Wolosky LLP securities and bankruptcy partner have joined Cadwalader Wickersham & Taft LLP in New York and Washington, D.C.

  • September 15, 2017

    Credit Suisse Sets Aside $79.5M For MassMutual RMBS Deal

    Credit Suisse AG on Thursday said it has set aside $79.5 million to settle long-running litigation with insurer Massachusetts Mutual Life Insurance Co. over the bank’s pre-financial crisis mortgage-backed securities offerings.

  • September 15, 2017

    EU Weighs ICO Risk-Reward To Ease Capital Markets Pain

    The emergence of initial coin offerings, which promise investors huge returns through digital currency instead of stock, may be the unlikely answer to jump-starting Europe’s sluggish capital markets, giving regulators the first test of their pledge to take a hands-off approach to fintech.

  • September 15, 2017

    Judge Pushes SEC To Come To Terms With Dewey Duo

    U.S. District Judge Valerie E. Caproni prodded the U.S. Securities and Exchange Commission on Friday to “swallow hard” and decide on whether to settle fraud claims against ex-Dewey & LeBoeuf LLP chief financial officer Joel Sanders and Stephen DiCarmine, the fallen firm's former executive director.

  • September 15, 2017

    NY Top Court Denies Saudi Co.'s $10B Barclays Fraud Appeal

    New York state's highest appellate court on Friday denied a Saudi contractor’s bid to revive a $10 billion fraud suit against Barclays PLC over a settlement between the British bank and the Saudi government.

  • September 14, 2017

    Braskem, Investors Strike $10M Deal In Corruption Suits

    Petrochemical firm Braskem SA reached a $10 million deal in New York federal court Thursday with investors who accused the company of hiding its role in bribery tied to dealings with Brazilian oil giant Petrobras, a role that sent shares tumbling when the scandal was revealed.

  • September 14, 2017

    Avaya Creditor Spat Over Ch. 11 Plan Sent To Mediation

    A creditor quarrel over proposed payouts in Avaya Inc.'s Chapter 11 restructuring plan is headed to mediation after a New York bankruptcy judge on Wednesday ordered the telecom giant and its creditor factions to make a good-faith attempt at resolving or narrowing lingering objections.

Expert Analysis

  • 4 Ways Law Firms Can Help Battle Addiction

    Link Christin

    With more than a third of lawyers showing signs of problem drinking, and untold others abusing prescription drugs and other substances, it is time for law firms to be more proactive in addressing this issue, says Link Christin, executive director of the Legal Professionals Program at Caron Treatment Centers.

  • The Whys And Hows Of Motor Vehicle Titling Trusts: Part 1

    Alan Mogol

    When motor vehicles are acquired and titled in the name of an equipment finance company, a subsequent syndication of lease financing including a transfer of legal title to a motor vehicle can involve significant burden and expense. A titling trust program to facilitate syndication of such leases can have many advantages, says Alan Mogol of Baker Donelson Bearman Caldwell & Berkowitz PC.

  • A Look At Latest 7th Circ. Opinion In Sentinel Management

    Aaron Boschee

    In its fifth trip to the Seventh Circuit, the Sentinel Management Group’s bankruptcy case recently explored complex issues bankruptcy practitioners often encounter in large Chapter 11 cases with financial services debtors, says Aaron Boschee of Squire Patton Boggs LLP.

  • A Law Firm Guide To Helping Victims Of Human Trafficking

    Sarah Dohoney Byrne

    Unlike victims of many crimes, human trafficking survivors often have complicated legal problems related to the experience of being trafficked — everything from criminal records to custody disputes to immigration obstacles. Many law firms already provide assistance in these areas and can easily transition resources and expertise, says Sarah Dohoney Byrne of Moore & Van Allen PLLC.

  • The Extremely High Bar For Director Liability

    Gail Weinstein

    The Delaware Chancery Court’s decision last week in MeadWestvaco Stockholders Litigation indicates that the standards of “waste” and “bad faith” for pleading liability of disinterested target company directors are essentially equivalent — and virtually impossible to meet, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Rebuttal

    Discovery Proportionality: A Defense View

    Alan Hoffman

    A recent Law360 guest article offered a plaintiff’s guide to discovery proportionality, focusing on recent amendments to Rule 26 of the Federal Rules of Civil Procedure. But proportionality is achieved by collaboration, not by mechanistically applying rules. When lawyers work together to establish the nature and scope of discovery, disputes can be avoided, says Alan Hoffman of Husch Blackwell LLP.

  • When Are LLC Interests Securities?

    Rikard Lundberg

    The fact-specific nature of the analysis leads to great uncertainty as to whether a limited liability company interest is a security. Courts take into account multiple factors in making this determination, and no one factor alone is determinative, says Rikard Lundberg of Brownstein Hyatt Farber Schreck LLP.

  • Diversity In The Legal Profession — A Stubborn Vision

    Robert Grey

    At the Leadership Council on Legal Diversity, we want to see, as founding member and Microsoft chief legal officer Brad Smith once stated, “a legal profession as diverse as the nation we serve.” We are not there yet — far from it — but we are beginning to put some numbers on the board, says Robert Grey, president of the Leadership Council on Legal Diversity.

  • Opinion

    New Salary History Laws Crimp Attorney Hiring Process

    Fredric Newman

    In prohibiting employers from asking potential hires about their previous salaries, lawmakers seek to "level the playing field." But there are real problems with the practicality, legality and enforceability of many of the salary history laws, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • Legal Considerations After SEC's Warning Shot At ICOs

    Robert Crea

    In the midst of market excitement surrounding initial coin offerings, the U.S. Securities and Exchange Commission recently issued an investigative report warning that digital tokens may be securities. When a token is a security, a variety of legal considerations come into play, including the Investment Advisers Act, anti-money laundering and taxation, say attorneys with K&L Gates LLP.