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Securities

  • August 10, 2018

    Investor Hits Tesla, Musk With Fraud Claims Over Tweet

    An investor hit Tesla Inc. and its founder Elon Musk with a proposed securities fraud class action in California federal court, claiming they tried to pump up stock prices by proclaiming plans to take the company private — without having the more than $71 billion privatizing would require.

  • August 10, 2018

    Oracle Slapped With Securities Fraud Suit After Stock Drop

    Investors filed a proposed securities fraud class action Friday against Oracle in California federal court, holding the technology giant responsible for a one-day stock price plunge of 9.4 percent and alleging the company’s cloud revenues were driven by unsustainable “coercive” sales tactics.

  • August 10, 2018

    Insurers Ask 1st Circ. To Affirm UBS' $20M Coverage Loss

    A trio of insurers urged the First Circuit on Friday to uphold a judgment that UBS AG units can’t tap $20 million in coverage for costs associated with claims that investors lost billions of dollars because UBS manipulated Puerto Rico's municipal debt bond market, saying the bank has impermissibly raised new arguments on appeal.

  • August 10, 2018

    Ex-UBS Adviser Bilked Clients For Almost $4M, Feds Say

    A former financial adviser for a UBS Group AG unit has been charged with defrauding his retail clients out of nearly $4 million by promising returns as high as 20 percent in private investment funds but pocketing the bulk of the cash, Michigan federal prosecutors said Friday.

  • August 10, 2018

    Woodbridge Creditors Object To Claim Assignment Plan

    A group of noteholders of the Woodbridge Group of Companies LLC says the debtor’s proposed plan disclosure statement is impermissible because it would seek to solicit creditors with potential class claims relating to a Ponzi scheme run by the debtor to assign those claims to a plan litigation trust.

  • August 10, 2018

    CA Tech Hit With Investor Suit Over $18.9B Sale To Broadcom

    A putative class of CA Technologies Inc. investors opened a federal securities action against the information technology giant in Delaware on Thursday, alleging multiple disclosure and proxy failures in connection with its proposed $18.9 billion sale to global chipmaker Broadcom Inc.

  • August 10, 2018

    Canadian ICO Promoter Can't Escape SEC Fraud Suit

    A Brooklyn federal judge denied a Canadian man’s bid to toss for lack of jurisdiction a U.S. Securities and Exchange Commission suit alleging his company orchestrated a fraudulent $15 million initial coin offering, concluding that regulators established that his company conducted significant dealings in the United States.

  • August 10, 2018

    McKinsey Critic Bolsters Call To Reopen ANR Ch. 11 Case

    A company formed by Jay Alix, a critic of consulting giant McKinsey & Co., on Thursday renewed its call for a Virginia bankruptcy court to reopen the Alpha Natural Resources Chapter 11 case, saying it had discovered dozens of conflicts of interest in the case by McKinsey.

  • August 10, 2018

    Feds Fight Ex-Barclays FX Trader’s Bid To Toss HP Case

    Prosecutors pushed back on an ex-Barclays trader’s motion to dismiss the criminal “front running” case against him Friday, arguing that the question of whether he had a duty to act in the best interests of Hewlett Packard Co. in a £6 billion foreign currency options transaction can only be determined by a jury.

  • August 10, 2018

    Health Co. Says Insurer Owes Coverage For Benefits Dispute

    A health management solutions company accused Atlantic Specialty Insurance Co. in Iowa federal court Friday of wrongly denying coverage for costs incurred from an Employee Retirement Income Security Act suit over a purchase by the company's employee stock ownership plan.

  • August 10, 2018

    Celator Insider Trading Schemers Spared Prison Time

    Two men were each sentenced Friday in New Jersey federal court to a year of home confinement for their roles in an insider trading scheme involving confidential information about Celator Pharmaceuticals Inc.'s positive test results for a cancer drug and the company's impending acquisition by Jazz Pharmaceuticals PLC.

  • August 10, 2018

    Mt. Gox Traders Seek Default Win After Ex-CEO Doesn't Show

    A former user of the now-defunct Bitcoin exchange Mt. Gox asked an Illinois federal judge to enter a default judgment against the exchange’s founder Mark Karpeles on Friday, saying he has not responded to a proposed class action over its collapse.

  • August 10, 2018

    Monster Beats $8.9M Fees Suit From Investment Bank

    A New York federal judge said Friday that Monster Worldwide Inc. does not owe Stone Key Partners LLC about $8.9 million in fees and costs for the boutique investment bank's role in evaluating strategic alternatives because the transactions that the job-search site ultimately completed were either too small or too late.

  • August 10, 2018

    SEC Gets $9.6M Judgment Against Galanis For Gerova Fraud

    The U.S. Securities and Exchange Commission nabbed a final judgment against convicted fraudster Jason Galanis that orders him to disgorge more than $9.6 million from proceeds he received through a scheme to illegally procure and then sell off stock in Gerova Financial Group Ltd.

  • August 10, 2018

    Fox Rothschild Nabs Montgomery McCracken Litigator

    Fox Rothschild LLP has added as a partner to its Wilmington office a Montgomery McCracken Walker & Rhoads LLP attorney who has worked high-profile securities fraud cases during his more than 20-year legal career, including the $3.2 billion settlement in the Tyco International Ltd. case.

  • August 10, 2018

    McGuireWoods Adds Litigation, Employment Partners

    McGuireWoods has brought husband and wife Yasser and Meghaan Madriz in as partners at the firm's Houston office, bolstering its litigation and labor and employment stable.

  • August 10, 2018

    Man Who Stole Friends’ $7M In Ponzi Scheme Gets 5 Years

    A Massachusetts federal judge sentenced an elderly Texas resident to five years behind bars and denied his bid for acquittal on Wednesday after a jury found him guilty of spending over a decade stealing millions of dollars from his friends and business associates who believed he would invest it for them.

  • August 10, 2018

    Investors Want Affiliate-Bank Claims To Stay In Libor MDL

     A class of over-the-counter investors urged a New York federal court Thursday to keep alive its antitrust claims against affiliates of Bank of America N.A. and JPMorgan Chase Bank N.A. in sprawling multidistrict litigation over alleged manipulation of the London Interbank Offered Rate.

  • August 9, 2018

    Sinclair Investor Sues Over Withdrawn $3.9B Tribune Deal

    A Sinclair Broadcast Group Inc. investor filed a putative securities fraud class action against the company Thursday in Maryland federal court, claiming it and its top brass mangled the review process of a planned $3.9 billion acquisition of Tribune Media Co. by knowingly misleading the public about its divestitures.

  • August 9, 2018

    Crystallex To Get Shares Of Citgo In $1.2B Award Row

    A Delaware federal judge Thursday signed off on Canadian mining company Crystallex International Corp.’s request to seize shares of Citgo Petroleum Corp., which is owned by a Venezuelan state-run oil company, to block Venezuela from escaping a $1.2 billion arbitration award over a canceled mining contract.

Expert Analysis

  • How To Avoid Liability For Halo Statements

    James Goldfarb

    When companies burnished their ethics codes to tout their reputations in the wake of Enron, the plaintiffs bar tried to use those “halo statements” to establish securities fraud liability. Given recent regulatory emphasis on corporate culture, let's look at the mixed success of the post-Enron culture-driven cases, say attorneys with Murphy & McGonigle PC.

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Lorenzo V. SEC: Will High Court Further Curtail Rule 10b-5?

    Roger Cooper

    In Lorenzo v. U.S. Securities and Exchange Commission, the U.S. Supreme Court will consider whether a misstatement claim that does not meet the elements set forth in the court’s 2011 Janus decision can be repackaged and pursued as a fraudulent scheme claim under Rule 10b-5. A number of possible outcomes present themselves, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Advertising, Pay-To-Play Lessons From New SEC Settlements

    Jessica Forbes

    The U.S. Securities and Exchange Commission last week settled eight enforcement actions for violations of the advertising and pay-to-play provisions of the Investment Advisers Act. Attorneys with Fried Frank Harris Shriver & Jacobson LLP discuss takeaways for investment advisers.

  • California Decision Distorts Bank Liability Under FIRREA

    Ben Singer

    A California federal judge recently concluded in United States v. Bogucki that any action by a bank employee that incurs potential liability for the bank triggers the Financial Institutions Reform, Recovery, and Enforcement Act. This renders unwieldy the scope of banks’ potential FIRREA exposure, says Ben Singer of O'Melveny & Myers LLP.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • You're Hired! What Kavanaugh’s Nomination Means For SEC

    Brian Rubin

    A newly constituted U.S. Supreme Court, with the added intellectual firepower of Judge Brett Kavanaugh, could ultimately strike down many U.S. Securities and Exchange Commission rules and overturn enforcement actions through the dismantling of the Chevron doctrine, say attorneys with Eversheds Sutherland.

  • Recent Trends In Structuring CRE-CLOs

    Jason Schwartz

    Commercial real estate collateralized loan obligations are growing in popularity as a way to securitize mortgage loans. With careful tax planning, CRE-CLO structures can be powerful tools for securitizing pools of assets that are inappropriate for acquisition by a real estate mortgage investment conduit, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.