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Securities

  • January 11, 2019

    Bandera Partners Pushes For Changes To Luby's Board

    New York-based hedge fund Bandera Partners LLC sent a scathing letter to the shareholders of Texas-based restaurant group Luby’s Inc. on Friday, urging them to approve a minority slate of new directors to Luby’s board in light of an 84 percent drop in Luby’s stock price over the last five years.

  • January 11, 2019

    Banking Giants Hit With UK Suit Over Forex Rigging

    Hundreds of institutional investors have accused Barclays, HSBC and four other banking giants in London's High Court of conspiring to rig the foreign exchange market, seeking billions of dollars in damages for antitrust violations.

  • January 10, 2019

    IHeartMedia Lays Out Case For Ch. 11 Plan Confirmation

    Lawyers for iHeartMedia Inc. kicked off a multi-day court hearing Thursday seeking approval of a plan to restructure the radio broadcast giant and its $16 billion of funded debt, telling a Texas bankruptcy judge that the creditor-backed plan prepares the company for a future media landscape.

  • January 10, 2019

    Entwistle & Cappucci Malpractice Suit Moved To Federal Level

    A legal malpractice case in which Rochdale Securities LLC is suing Entwistle & Cappucci LLP for allegedly taking civil action against Morgan Stanley after the statute of limitations in a multimillion-dollar fraud case was removed to Connecticut federal court Thursday.

  • January 10, 2019

    Investors Sue Google Parent Execs Over Privacy, Harassment

    A proposed class of shareholders accused Google parent Alphabet's board of directors in California state court Wednesday of concealing data privacy issues and issues of sexual harassment and discrimination, ultimately propping up the stock price until the truth about these issues emerged.

  • January 10, 2019

    What All Attorneys Need To Know About The Shutdown

    As the government shutdown drags on, Law360 is compiling answers to some of the most pressing questions on attorneys' minds.

  • January 10, 2019

    Sandra Moser Leaving DOJ For Quinn Emanuel

    Sandra Moser, acting head of the U.S. Department of Justice's Fraud Section, will have her last day in government on Friday and is set to join Quinn Emanuel Urquhart & Sullivan LLP, sources confirmed to Law360.

  • January 10, 2019

    CytoDyn, Investors End Chancery Director Options Suit

    Biotechnology company CytoDyn Inc. agreed to pay a $50,000 attorney fee in a Delaware Chancery Court settlement approved on Thursday that ended a stockholder challenge to excess stock options paid to the company’s chief executive officer in 2015.

  • January 10, 2019

    Law Firm Can't Get Cut Of Rothstein Litigation Fees

    Segall Gordich PA lost its bid Wednesday to get a cut of legal fees in an investor suit against Bank of America NA over its role in jailed former attorney Scott Rothstein’s $1.2 billion Ponzi scheme when a Florida judge ruled that a retainer agreement with Conrad & Scherer LLP did not cover that litigation.

  • January 10, 2019

    Investor Says More Info Needed In $1.3B Nutrisystem Merger

    A Nutrisystem Inc. shareholder claimed in a proposed class action in Delaware federal court that not enough information has been provided for investors to make an informed decision whether to support the proposed $1.3 billion merger between the company and Tivity Health Inc.

  • January 10, 2019

    $65M Lending Co. Sale Tainted By Conflict, Chancery Told

    Public stockholders of student and specialty lender First Marblehead Corp. challenged the company’s roughly $65 million go-private sale in Delaware’s Chancery Court on Wednesday, alleging the 2016 deal was steered by a conflicted controlling group to a company owned by First Marblehead’s second-largest stockholder.

  • January 10, 2019

    OTC Markets Looks To Grow Through London Expansion

    OTC Markets Group Inc.’s expansion into London is part of a larger goal to improve European issuers’ access to U.S. capital markets, an executive told Law360 on Thursday, one of two strategic moves the trading venue announced this week aimed at growing its business.

  • January 10, 2019

    2nd Circ. Says Calif. Atty May Have Bungled Galanis Plea Deal

    A California lawyer may have botched a joint plea deal offered to convicted fraudster Jason Galanis to resolve securities violations claims in two separate cases, according to a Second Circuit panel, which remanded his more than 11-year sentence for one of the schemes to a New York federal court Thursday.

  • January 10, 2019

    Stanford Bank Investor Can't Keep $79M In Ponzi Transfers

    A Fifth Circuit panel reversed a lower court's judgment Wednesday and ruled that one of Stanford International Bank's largest investors cannot retain the $79 million in fraudulent transfers he received after he learned of a regulatory investigation that ultimately revealed the bank was running a Ponzi scheme.

  • January 10, 2019

    Investors’ Attys In Cobalt Bribery Case Seek $43.5M In Fees

    Attorneys asked a Texas federal court on Wednesday to award them $43.45 million in fees for securing $173.8 million total for investors who brought allegations involving a potential foreign bribery scheme by now-bankrupt Cobalt International Energy Inc.

  • January 10, 2019

    Last 3 Banks In $120M Enron Debt Investor Suit Settle

    Credit Suisse, Deutsche Bank and Merrill Lynch have settled out of a more than 15-year-old lawsuit brought by a group of investment funds seeking to hold them and others responsible for losses on $120 million of Enron Corp. debt purchased shortly before the energy giant’s 2001 collapse.

  • January 10, 2019

    Biotech CEO Rips Prosecutors, Gets 27 Mos. For Fraud, Lies

    A Manhattan federal judge sentenced Patrick Muraca, a former biotech CEO from Massachusetts, to 27 months in prison Thursday for squandering most of the $1.2 million he raised from cancer research investors and lying to investigators, after Muraca tearfully ripped the government’s case against him as “disgusting.”

  • January 10, 2019

    5th Circ. Affirms Ex-ArthroCare CEO's 20-Year Fraud Sentence

    The former CEO of medical device maker ArthroCare Corp. must serve the 20-year prison sentence handed down by a Texas federal court for his role in defrauding investors out of $750 million in a revenue-boosting scheme, the Fifth Circuit said this week.

  • January 10, 2019

    Forex Investors Want $300M Fee Objector To Post Bond

    An investor class that has secured $2.3 billion in settlements over claims that 15 banks plotted to rig benchmarking rates in the foreign exchange markets told a New York federal court that the lone objector to the $300 million attorneys' fees award should have to post bond.

  • January 10, 2019

    HSBC Offers $30M, 'Chat' Evidence To Settle Bond-Fix Suit

    HSBC Bank PLC has cut a $30 million deal to settle investors’ allegations surrounding a scheme to rig the SSA bond market, and will hand over electronic “chats” to aid the class’ prosecution of remaining banks in the case, according to settlement documents filed in New York federal court on Wednesday.

Expert Analysis

  • SEC Offers Relief For Insurers Registering Contracts

    Stephen Roth

    For many life insurance companies, the most burdensome aspect of registering insurance contracts is preparing GAAP financial statements. However, the U.S. Securities and Exchange Commission recently issued a series of letters permitting certain companies to take another option for some index-linked annuity contracts, say Stephen Roth and Lorna MacLeod of Eversheds Sutherland.

  • 3 D&O Questions Regarding Event-Driven Securities Litigation

    Larry Bracken

    The wildfire-related complaint filed against Edison last month represents a new kind of securities class action that relies on specific adverse events as catalysts. Corporate policyholders must consider how such litigation will impact their directors and officers insurance now and in the future, say attorneys at Hunton Andrews Kurth LLP.

  • How BIS Will Review Emerging Technology Export Controls

    Alexandre Lamy

    Last month, the U.S. Department of Commerce’s Bureau of Industry and Security sought public comment on criteria for identifying “emerging technologies” that are essential to U.S. national security. By commenting, companies working with these technologies have an opportunity to influence future U.S. government export controls, say authors with Baker McKenzie.

  • Receiverships May Be Particularly Useful For New Industries

    Ira Bodenstein

    Now more than ever, receiverships can help troubled enterprises when bankruptcy is not an option. In addition to Ponzi schemes and securities and real estate fraud, receiverships are increasingly used in cryptocurrency matters and cases of EB-5 immigrant investor program fraud, say Ira Bodenstein of Fox Rothschild LLP and Brian Soper of BMS.

  • Tips For Compliance With 2019 Shareholder Guidelines

    Michael Albano

    Following its 2019 benchmark voting policy consultation period, Institutional Shareholder Services recently released its updated voting guidelines for the 2019 proxy season. Attorneys with Cleary Gottlieb Steen & Hamilton LLP provide a summary of notable governance and compensation policy updates.

  • The Continuing Shift Of Merger Litigation To Federal Courts

    Robert Long

    Class actions challenging proposed corporate mergers continue to be filed at record levels. And there are no signs that the shift of such cases from state to federal courts will let up in the years to come, say Robert Long and Andrew Sumner of Alston & Bird LLP.

  • A Series Of 1st-Time Crypto Actions For The SEC

    David Zaslowsky

    November was an especially aggressive month for the U.S. Securities and Exchange Commission in terms of cracking down on unauthorized digital activities. Three enforcement actions described as "firsts" demonstrate that the SEC will be using all of the tools in its toolkit, say attorneys with Baker McKenzie.

  • Series

    Judging A Book: Mills Reviews 'Mississippi's Federal Courts'

    Judge Michael Mills

    ​​David M. Hargrove's​ new book​,​ "Mississippi’s Federal Courts: A History," is a remarkably candid portrait of the characters and courts serving the state's federal judiciary from 1798 on, and contributes new scholarship on how judges were nominated during the civil rights era, says U.S. District Judge Michael Mills of the Northern District of Mississippi.

  • How To Work With Regulators During Internal Investigations

    David Chaiken

    The recent courtroom battle over the admissibility of statements made by former Deutsche Bank traders shines a spotlight on a potentially recurring problem — excessive government entanglement in an internal investigation. Counsel conducting such investigations should take certain steps to minimize the risk, say attorneys with Troutman Sanders LLP.

  • Professional Athletes Should Beware Financial Fraud

    Kevin Muhlendorf

    Recent financial fraud cases brought by the U.S. Securities and Exchange Commission and federal prosecutors around the country can hopefully serve as a warning to professional athletes and encourage caution when working with financial advisers, say Kevin Muhlendorf and Colin Cloherty of Wiley Rein LLP.