Securities

  • July 18, 2017

    OptimisCorp Appeals Chancery's $2M Fee Award To Ex-CFO

    Physical therapy firm OptimisCorp told the Delaware Supreme Court late Monday that the Chancery Court wrongly awarded its former chief financial officer nearly $2 million in legal fees connected to a vicious fight over control of the company, arguing that the lower court incorrectly read the underlying trial opinion.

  • July 18, 2017

    Viacom Says Redstone's Pay Was Appropriate Despite Illness

    Viacom Inc. and its board members told a Delaware state court judge Tuesday that salary and bonus payments made to an ailing Sumner Redstone in 2014 were not the actions of a disloyal board because the executive had provided valuable benefits to the company and that a stockholder derivative suit over the outlays should be dismissed.

  • July 18, 2017

    Dole Shareholders Garner $18.5M In Fees In Securities Case

    Attorneys for a Dole Food Co. stockholder class secured an $18.5 million fee award Tuesday as part of a $74 million settlement in a Delaware federal securities suit targeting insider efforts that artificially depressed Dole’s stock price in 2013.

  • July 18, 2017

    Advisers Hope Rigorous SEC Exam Program Will Relax Soon

    Investment advisers and other U.S. Securities and Exchange Commission-registered entities have been grappling with what experts say is an increasingly demanding examination program, but funds and firms are hopeful for a reprieve going forward as SEC Chairman Jay Clayton looks to reduce what he sees as the growing costs of regulatory compliance.

  • July 18, 2017

    Ex-BP Exec Seeks Redo On Investor Claims In Oil Spill MDL

    A former BP executive on Monday asked a Texas federal judge presiding over multidistrict litigation related to the Deepwater Horizon oil spill to rethink his decision allowing investors to proceed with claims based on a 2007 statement the executive made about the status of a fiber-optic network project in the Gulf of Mexico.

  • July 18, 2017

    Bondholders Seek Receiver For Puerto Rico Electric Co.

    A group of Puerto Rico Electric Power Authority bondholders Tuesday told a bankruptcy court that the utility's financial troubles make the bondholders legally entitled to see a receiver appointed to protect their interests.

  • July 18, 2017

    Investor Rips Atty Fee Requests In $100M Halliburton Deal

    An investor representing Halliburton Co. shareholders in a $100 million settlement with the company over its asbestos liability disclosures has slammed attorneys’ fees requests from two law firms previously involved in the case, telling a Texas federal court Monday that their work provided no meaningful benefit.

  • July 18, 2017

    Third Man Cops To $6.4M Diamond Investment Fraud

    A Texas man involved in a $6.4 million diamond investment fraud scheme confessed to his role Tuesday, joining his two co-defendants in entering guilty pleas.

  • July 18, 2017

    Teva Employees Say Co. Hid DOJ Antitrust, Bribery Probe

    A Teva Pharmaceutical employee holding American depositary shares through a company program launched a proposed class action against the generic-drug maker in Ohio federal court Monday, saying his employer had concealed probes into price fixing and the payment of bribes to foreign government officials.

  • July 18, 2017

    CFTC Claims $16M 'Binary Options' Trading Scam In Suit

    The Commodity Futures Trading Commission has accused a California businessman with a global network of companies and a Florida marketer and his company of violating trading regulations and defrauding at least 8,000 customers of more than $16 million, the agency announced Tuesday.

  • July 18, 2017

    Goldman Sachs Pays FINRA $2.5M Over Options Reporting

    Goldman Sachs & Co. LLC has agreed to pay $2.5 million to end the Financial Industry Regulatory Authority's allegations that it failed to report options positions in millions of instances and made options trades that exceeded position limits, according to a settlement filed Monday.

  • July 18, 2017

    SEC Blasts Trader's Challenge To Its Cooperation Program

    The U.S. Securities and Exchange Commission told the Second Circuit on Monday that it didn't violate the constitutional rights of a former Barclays Capital Inc. bond trader when it signed a cooperation agreement with his alleged co-conspirator from a stock-parking scheme.

  • July 18, 2017

    Senate Agriculture Lawyer Picked For Dems' Spot On CFTC

    A top lawyer with the U.S. Senate Agriculture Committee who previously worked in the New Jersey Attorney General's Office was nominated by the White House on Monday for a Democratic seat on the U.S. Commodity Futures Trading Commission.

  • July 18, 2017

    Investors Blast Polaris' Bid To Nix Suit Over Recalls

    Off-road vehicle manufacturer Polaris can’t pass off alleged misrepresentations about potential risks to the company’s business as simple mismanagement while its vehicles burst into flame and injured customers, a proposed class of investors told a Minnesota federal court Monday.

  • July 18, 2017

    ESMA Chides UK Watchdog Over Financial Data Scrutiny

    Britain’s financial reporting watchdog was criticized Tuesday by the European Securities and Markets Authority for failing to enforce European Union rules governing the supervision of financial information used in equity and bond issuances.

  • July 18, 2017

    Capital Bank Investor Sues Over $2.2B First Horizon Deal

    Capital Bank Financial Corp. brass secured special deals for themselves while the bank withheld or misrepresented information about its proposed $2.2 billion sale to First Horizon National Corp., an investor alleged Monday in North Carolina federal court.

  • July 18, 2017

    Nasdaq Fights Bid To Move Unsettled Facebook IPO Cases

    Nasdaq Inc. on Tuesday asked a New York federal judge not to send two cases brought by early buyers of Facebook Inc.’s public stock back to the Texas court they came from, saying that discovery has barely begun and it would be inefficient to send the cases back so soon.

  • July 18, 2017

    Pa. Consultant Gets 5 Years In $3.5M Foreign Bribery Scheme

    The former owner of a suburban Philadelphia financial consultancy who pled guilty last year to funneling $3.5 million in bribes to a European banking official received a five-year prison sentence Tuesday in Pennsylvania federal court.

  • July 18, 2017

    Royal Park Blasts HSBC's Discovery Bid In RMBS Case

    Royal Park Investments SA/NV argued in New York federal court Monday that HSBC Bank USA NA is wasting judicial resources by demanding access to unredacted foreign documents in a suit over allegedly toxic residential mortgage-backed securities.

  • July 18, 2017

    House Republicans Lay Out Tax Reform, Spending Plans

    House Republicans on Tuesday unveiled their financial plan for the government next fiscal year, paving the way for tax reform tied to spending cuts in regulations, employee benefits and welfare benefits.

Expert Analysis

  • Demise Of Disgorgement? Kokesh And Honeycutt In Tandem

    Maranda Fritz

    While a number of commentators have discussed the specific holding in Kokesh regarding the statute of limitations applicable to disgorgement, the more impactful aspect of the case lies in its reasoning. Counsel should read Kokesh in conjunction with Honeycutt and should integrate these decisions into their analysis in pending disgorgement matters, say Maranda Fritz and Brian Steinwascher of Thompson Hine LLP.

  • A Regulatory Bellwether: Forecasting Cyber Breach Litigation

    Michael Bahar

    While the prospects of cybersecurity litigation loom ever larger, there are tangible ways that may very well decrease the unease and mitigate the risk. Businesses can likely gain significant insight into the future standards courts will use by looking at what matters most to the regulators, say Michael Bahar, Alexander Sand and Trevor Satnick of Eversheds Sutherland LLP.

  • 3 Key Areas Legal Operations Teams Should Focus On

    Jaime Woltjen

    These days, legal operations directors can easily get stretched too thin between responsibilities like overseeing support staff and taking on office management responsibilities. Legal operations teams should focus their time and effort on outside counsel management, technology planning and analytics, says Jaime Woltjen of Stout Risius Ross LLC.

  • Kokesh And The Future Of SEC Receivers Abroad

    Martin Kenney

    The finding in Kokesh that disgorgement per se is a “penalty” is unlikely to have a dramatic effect on the ability of the U.S. Securities and Exchange Commission to recover assets abroad, given that foreign courts already viewed this enforcement tool as penal in nature, says Martin Kenney of Martin Kenney & Co. Solicitors.

  • Clearing Up Broker-Dealer Classification Questions In NY

    David Kleinmann

    A recent decision by the New York State Department of Labor’s Unemployment Insurance Appeal Board provides broker-dealers with greater clarity surrounding job classification of Financial Industry Regulatory Authority-registered representatives working in stockbroker positions. The decision provides a narrow but clear safe harbor for NYSDOL investigations into classification, says David Kleinmann of Tarter Krinsky & Drogin LLP.

  • Recap

    What The Experts Said About High Court Rulings This Term

    scotus 3.jpg

    With the U.S. Supreme Court term now concluded, we take a look back at some first impressions from the experts when the most impactful decisions for corporate law were handed down.

  • US Law Firms Face Discovery Of Foreign Clients' Records

    Steven Kobre

    The law relating to the taking of discovery directly from U.S. law firms is evolving in favor of disclosure when documents have been provided to third parties. Law firms must be vigilant in handling their clients' documents or face being responsible for producing them to third parties, say Steven Kobre and John Han of Kobre & Kim LLP.

  • PetSmart Is A Significant Loss For Appraisal Arbitrageurs

    Christopher Kelly

    In important respects, the Delaware Chancery Court's decision in PetSmart expands the contexts in which the court will defer to the merger price, thereby limiting the situations in which fair value may be determined by the often-volatile discounted cash flow valuation method on which appraisal arbitrageurs have relied, say Christopher Kelly and Mathew Golden of Potter Anderson & Corroon LLP.

  • Opinion

    The Future Of Law And The Demise Of The Midsize Firm

    Fredric Newman

    Since 1980, there has been a systemic supersizing of business enterprises, the growth of sovereign wealth, and the emergence of international businesses. The pressure this has put on national and regional law firms to go global or go home is enormous, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • A Significant Victory For Securities Class Action Defendants

    Susan Saltzstein

    The U.S. Supreme Court’s decision this week in California Public Employees’ Retirement System v. ANZ Securities enables securities class action defendants to calculate their exposure to opt-out actions and other liability with greater confidence and precision, say attorneys with Skadden Arps Slate Meagher & Flom.