Securities

  • April 18, 2018

    Golf-Course Stock Tipper Gets Supervised Release Slashed

    A former stone salesman who spent about a year in prison for passing around nonpublic stock tips during rounds of golf can get out of a second year of supervised release to pursue a new career in Florida real estate, a federal judge in Massachusetts ruled Wednesday.

  • April 18, 2018

    Texas Sets Pace In State Cryptocurrency Crackdowns

    Texas is at the forefront of using its state securities laws to go after allegedly fraudulent cryptocurrency investment schemes, and as digital currency offerings grow more popular, more states are expected to follow suit, experts say.

  • April 18, 2018

    Exxon Climate Probes Greenlighted By Courts: What's Next

    Now that state and federal courts have slammed the door on efforts by Exxon Mobil to block climate change probes launched by attorneys general from New York and Massachusetts, experts say the battleground for prosecutors and the oil giant will shift to exactly what information Exxon has to turn over and whether that information is enough to justify formal litigation. Here's an overview of where the investigations stand and where they could go from here.

  • April 18, 2018

    Del. Justices Asked To Nix 57% Clearwire Appraisal Plunge

    Clearwire Corp investor Aurelius Capital Management LP on Wednesday told Delaware's Supreme Court that "compounding" legal errors last year led Chancery Court to set Clearwire's stock price 57 percent below the amount Sprint Nextel Corp. paid in a $3.6 billion buyout in 2013.

  • April 18, 2018

    Murphy & McGonigle Nabs CFTC Atty For Securities Team

    A chief trial attorney at the Commodity Futures Trading Commission who helped litigate market manipulation claims against Arcadia Petroleum and nabbed nearly $4 million in disgorgement from a Ponzi schemer in Hawaii has left to join the securities team at Murphy & McGonigle PC, the firm announced this week.

  • April 18, 2018

    PHH Shareholder Sues Over Proposed $360M Sale To Ocwen

    A shareholder in PHH Corp. hit the company and its board of directors with a proposed class action Tuesday in New Jersey federal court alleging the board was misleading investors about a $360 million plan to sell the company to rival mortgage provider Ocwen Financial Corp. and had bungled the sale process.

  • April 18, 2018

    SEC Commish Warns Of Overreliance On New Market Rules

    U.S. Securities and Exchange Commissioner Hester M. Peirce on Wednesday urged a more careful review of market structure reforms proposed by the agency, saying new rules drafted by financial industry regulators often seem designed to "mitigate" problems created by earlier rules. 

  • April 18, 2018

    Indicted Binary Options Co. Founder Faces CFTC Fraud Suit

    A New Yorker under criminal indictment was hit with a court-ordered asset freeze after the Commodity Futures Trading Commission filed a related suit in Brooklyn federal court against him, his co-conspirator and his binary options company claiming they conned investors out of more than $600,000 with illegal off-exchange options.

  • April 18, 2018

    GE Board Accused Of Misstating Insurance, Power Financials

    General Electric Co. officers and directors falsely stated the finances of the company's power and insurance segments, ultimately causing share prices to drop as it halved annual dividend payments and lowered its financial forecasts, a shareholder claimed in a derivative suit filed Tuesday in New York federal court.

  • April 18, 2018

    Miami Auditor's Battle With City Not Over Even After Verdict

    Despite winning a nearly $1 million jury award earlier this week, a former city of Miami independent auditor who says he was fired for reporting securities violations will still have to battle the city on whether he should have gone to Miami’s Civil Service Board with his retaliation claim before filing suit.

  • April 18, 2018

    Broker Stole $5.7M From Pension Fund, Say Prosecutors, SEC

    A securities broker was hit with a U.S. Securities and Exchange Commission suit in Tennessee federal court Tuesday on top of criminal fraud charges over an alleged scheme to steal $5.7 million from the pension plan of an acquaintance’s company and transfer it to an investment group he benefited from and companies he controlled.

  • April 18, 2018

    SFO Plans Changes To Witness Preparation After Libor Case

    Britain’s Serious Fraud Office said Wednesday it will change the way it instructs expert witnesses after a panel of U.K. Court of Appeal judges said mistakes made by a banking expert who testified in the SFO’s Libor-rigging prosecutions caused an embarrassing debacle for the crime agency.

  • April 17, 2018

    Equipment Co.'s Stocks Didn't Lose Value In Sale, Judge Says

    A Virginia federal judge quashed Labor Secretary Alex Acosta’s claim that a manufacturing equipment provider illegally allowed its shares to lose value by selling stocks to a pension plan for twice their worth, saying Tuesday there wasn’t enough proof to say the shares actually did lose value.

  • April 17, 2018

    2nd Circ. Cool On Saving Funds’ Suit Against DLA Piper

    A panel of three judges considering a request by two Cayman investment funds to revive their dismissed suit against DLA Piper over its alleged role in helping a fund director misappropriate $36 million put tough questions to the funds on Tuesday about what, exactly, the lower courts did wrong.

  • April 17, 2018

    Investment Funds Hit Ocwen With Stock-Drop Suit

    A group of investment funds sued Ocwen Financial Corp. on Tuesday in Florida federal court seeking to recover investment losses they say they suffered after being induced to buy company stock through false and misleading statements from its top executives.

  • April 17, 2018

    Defense Wraps Wilmington Trust Exec Fraud Case In A Day

    A “massively complex” federal trial of four Wilmington Trust executives on fraud and conspiracy charges raced into the home stretch Tuesday, after defense attorneys opened and closed their side of the Delaware case in a matter of hours.

  • April 17, 2018

    Gannett Looks To Spike ERISA Suit Over 401(k)’s Tegna Stock

    Gannett Co. Inc. on Monday urged a Virginia federal judge to toss a proposed Employee Retirement Income Security Act class action accusing it of causing about $135 million in losses for its 401(k) plan and the plan’s participants by concentrating investments in its ex-parent company’s common stock.

  • April 17, 2018

    Koch Calls For Oxbow Carbon Valuation, No Price Guarantees

    A newly unsealed brief on terms for a potential Delaware Chancery Court-ordered sale of William I. Koch’s Oxbow Carbon LLC, filed by Koch and his allies, called Monday for a new company valuation and no price guarantees for investors whose cash-out demands led to the exercise.

  • April 17, 2018

    Twitter Fights Investors' Class Cert. In User Metrics Suit

    Twitter Inc. urged a California federal judge Monday to deny class certification for investors who are suing the company for allegedly inflating its stock price by lying about key user statistics, saying the investors have yet to show how they would calculate damages for the entire proposed class.

  • April 17, 2018

    Atty's Ex-Buddy Who Decoded Insider-Trade Texts Ducks Jail

    Andrew M. Berke, a wealthy former friend of ex-Foley & Lardner LLP partner Walter “Chet” Little who traded on Little's illicit stock tips, avoided prison Tuesday after a prosecutor cited Berke's work to recover damning text messages and help the government decipher them.

Expert Analysis

  • Opinion

    BigLaw Doesn't Have A Diversity Problem

    Marlen Whitley

    Although the lack of racial and gender diversity among the ranks of the majority of both midsized and top law firms is a major issue, it’s past time to shed light on the real problem — inclusion, or lack thereof, says Marlen Whitley of Reed Smith LLP.

  • Roundup

    After Cyan

    Supreme Court

    What does the U.S. Supreme Court's unanimous ruling in Cyan v. Beaver County mean for the future of securities litigation? Attorneys at the heart of the case share their views in this series.

  • Rebuttal

    Crypto Developments Are Noteworthy, But Not Alarming

    Sarah Auchterlonie

    A recent Law360 guest article series highlighting three regulatory developments cautions cryptocurrency exchanges to be “prepared for relentless U.S. regulatory oversight,” but the specter of financial regulation should not be as frightening as the articles suggest, say Sarah Auchterlonie and Emily Garnett of Brownstein Hyatt Farber Schreck LLP.

  • Opinion

    Roman J. Israel, Esquire, Meet Donald J. Trump, POTUS

    Kevin Curnin

    Despite the Trump administration's desire to shut down the Legal Services Corp., thankfully the budget that Congress passed and the president signed into law last week has restored $410 million of funding to the legal aid organization. An unlikely brief for preserving LSC may be found in the quirky Denzel Washington film "Roman J. Israel, Esq.," says Kevin Curnin, immediate past president of the Association of Pro Bono Counsel.

  • Keys To Corporate Social Responsibility Compliance: Part 4

    Michael Littenberg

    Over the last few years, there has been a significant increase in litigation and investigations related to corporate social responsibility issues. Activity has increased not only in the United States at the federal, state and local level, but also in several other countries. Proceedings and investigations have involved many different statutes and theories of liability, say attorneys with Ropes & Gray LLP.

  • Series

    After Cyan: A 'Problem' That Does Not Exist

    Adam Pulver

    Contrary to the hyperbole advanced by the defense bar, state courts are not flooded with frivolous securities lawsuits. And if there is a spike after the U.S. Supreme Court’s decision in Cyan v. Beaver County, there are likely other factors to blame, says Adam Pulver of the Public Citizen Litigation Group.

  • Blockchain Share Tracing Can Change Appraisal Arbitrage

    Excerpt from Lexis Practice Advisor
    Christopher Kelly

    The advent of blockchain technology and its future utilization in the securities industry present the possibility for the tracing of ownership and votes of shares of corporations being acquired. Appraisal arbitrageurs may need to evaluate the continuing attractiveness of their investment strategy as a result, say attorneys with Potter Anderson & Corroon LLP.

  • Opinion

    We Need A Cybersecurity Framework For Law Firms

    Shaun Jamison

    In order to enable lawyers to best meet cybersecurity challenges, state bars should pass rules that adopt a cybersecurity framework to be developed by a national committee, says Shaun Jamison, associate dean of faculty and professor at Purdue University's Concord Law School.

  • Next Steps For BDCs As Long-Awaited Reforms Arrive

    Nicole Runyan

    Last week's omnibus spending legislation includes a provision that relaxes leverage and offering restrictions that many business development companies have been seeking over the last several years. Although the amendments are not automatically effective, BDCs and their sponsors should start considering a number of issues in the near term, say Nicole Runyan and Monica Shilling of Proskauer Rose LLP.

  • Keys To Corporate Social Responsibility Compliance: Part 3

    Michael Littenberg

    As the quantity and quality of corporate social responsibility disclosure increases, there is also movement toward greater comparability. Larger companies should benchmark their disclosures against global peers and evolving global standards, since over time, enhancements in foreign disclosure practices are likely to drive disclosures by many U.S. companies, say attorneys with Ropes & Gray LLP.