Securities

  • November 13, 2017

    EU Securities Watchdog Warns Investors On ICO Legal Risks

    Europe’s securities watchdog warned investors on Monday over the risks of initial coin offerings, and said firms using the new trend for cryptocurrency to raise capital may be breaching EU financial laws.

  • November 10, 2017

    Ex-SEC Chair Warns Of Adviser Exam Shortfall 'Disaster'

    Former U.S. Securities and Exchange Commission Chair Mary Jo White on Friday sounded an alarm about the agency’s inability to conduct regular inspections of most registered investment advisers, calling it “a disaster waiting to happen” if the pace can’t be picked up.

  • November 10, 2017

    Ex-Barclays Trader 2nd To Get Libor Conviction Reviewed

    The Criminal Cases Review Commission confirmed on Friday that it will review a former Barclays PLC banker’s petition for a final appeal against his June 2016 conviction for rigging the London Interbank Offered Rate.

  • November 10, 2017

    EU Court Rebukes Watchdog Over €15M ICAP Libor Rig Fine

    A top European Union court gave a U.K. broker-dealer a partial win on Friday by annulling parts of the European Commission’s decision to fine it nearly €15 million ($19 million) in 2015 for alleged involvement in cartels linked to the rigging of Japanese Yen interest rate derivatives.

  • November 9, 2017

    Toshiba Investors Tell 9th Circ. Morrison Backs Fraud Suit

    Investors alleging Toshiba Corp. fraudulently inflated earnings reports urged the Ninth Circuit to revive their proposed class action Thursday, arguing at a hearing that the U.S. Supreme Court’s Morrison decision holds that the Securities Exchange Act applies to their Japanese stock because it was purchased in the U.S.

  • November 9, 2017

    Retrophin CEO Says He Was Suspicious Of Ex-Katten Atty

    Retrophin Inc.'s CEO told a New York federal jury Thursday of how he came to believe former Katten Muchin Rosenman LLP attorney Evan Greebel was helping former Retrophin head Martin Shkreli work against the pharmaceutical company after the controversial “pharma bro” was let go as Retrophin’s top executive.

  • November 9, 2017

    SEC Brass Says Kokesh Ruling A Concern For FCPA Cases

    A co-chief of enforcement at the U.S. Securities and Exchange Commission said in a speech Thursday that the Supreme Court's recent ruling imposing a time limit for the agency to seek disgorgement of ill-gotten gains is likely to have an outsized impact on time-consuming Foreign Corrupt Practices Act cases.

  • November 9, 2017

    Ex-Foley & Lardner Atty Cops To Securities Fraud Conspiracy

    Former Foley & Lardner LLP partner Walter “Chet” Little pled guilty in Manhattan federal court on Thursday to a charge of conspiracy to commit securities fraud, and could see jail time over claims that he used confidential information about the law firm’s clients to make $327,000 in illicit trading profits.

  • November 9, 2017

    PE Backers Poached Hot Topic's 'Crown Jewel,' Creditors Say

    More than two dozen bondholders of Hot Topic Inc. filed a suit in New York state court on Wednesday accusing the specialty fashion retailer’s private equity backers of a scheme to strip the company of its “crown jewel” Torrid for a pittance and keep hundreds of millions of dollars in profits to themselves.

  • November 9, 2017

    Madoff Victims Get $773M In Largest Payout For DOJ Program

    The U.S. Department of Justice on Thursday announced the eight-year wait is over for 24,631 victims of Bernie Madoff’s infamous Ponzi scheme, who should expect checks in the mail as the government distributes $772.5 million from a $4.05 billion compensation fund, the largest distribution ever under the DOJ's victim compensation program.

  • November 9, 2017

    SEC Likely To Revisit Cybersecurity Guidance, Official Says

    The U.S. Securities and Exchange Commission likely will issue new guidance to public companies on disclosing cybersecurity incidents, a top official said Thursday, in a sign that the agency is looking to improve industry practices that have been criticized in the wake of massive breaches at companies like Equifax Inc. and Yahoo Inc.

  • November 9, 2017

    Heyman, Block & Leviton To Lead Tangoe Buyout Challenge

    A Delaware Chancery judge chose the combination of Heyman Enerio Gattuso & Hirzel LLP and Block & Leviton LLP as lead plaintiff counsel in the case challenging Tangoe Inc.’s $256 million buyout, ruling that their pursuit of a books and records demand gave them a slight edge.

  • November 9, 2017

    ECB Vice President Casts Cold Water On Cryptocurrencies

    The vice president of the European Central Bank took a bearish view of cryptocurrencies’ potential to transform the financial system in a speech in Rome on Thursday, saying that private digital currencies will never fully replace money, predicting that central bank-sponsored versions would not to come pass without limits.

  • November 9, 2017

    Ex-Aveo Exec's Penalty In SEC Deal Up To Magistrate Judge

    A Massachusetts magistrate judge will decide whether Aveo Pharmaceuticals Inc.’s former chief medical officer should pay a civil penalty under a deal that would resolve the U.S. Securities and Exchange Commission’s allegations that he hid from investors the Food and Drug Administration's concerns about its flagship kidney cancer drug.

  • November 9, 2017

    House OKs New Safe Harbor For Small Private Offerings

    The House of Representatives passed a bill Thursday that would carve out a new safe harbor to allow for small private offerings that won't run afoul of U.S. Securities and Exchange Commission rules.

  • November 9, 2017

    Plea Delayed In $1.6M Pump-Dump Case, Probe Continues

    A Florida man who says he is cooperating with federal agents in an ongoing securities fraud investigation on Thursday cemented a third delay of his scheduled guilty plea in Massachusetts federal court where he was expected to admit to exploiting a waste and recycling company's penny stock.

  • November 9, 2017

    SEC Can’t Score Default Win In $5M 'Prime Bank' Case

    A Maryland federal judge on Thursday refused to give the U.S. Securities and Exchange Commission a win by default against two companies accused of taking part in a $5 million “prime bank” scam, saying the firms’ principals whose bank accounts would be drained are still fighting the government’s claims.

  • November 9, 2017

    Witness In Banker's Insider-Trading Trial Gets Probation

    A New York federal judge has ordered a Long Island man to serve one year of probation and forfeit $900,000 for his role in an insider trading scheme he helped the government investigate and prosecute as a cooperating witness, recording meetings and phone calls and testifying at the trial of a former investment banker.

  • November 9, 2017

    Merrill Lynch Wants $107M In Investor Suits In Court

    Merrill Lynch asked a California federal court on Wednesday to kick three FINRA proceedings worth $107 million from arbitration into court, arguing that the stockholders, who have alleged that the firm failed to disclose the risks of the subprime mortgage market before 2008, have brought untimely claims against a non-FINRA member.

  • November 9, 2017

    2nd Circ. Won't Revisit Use Of Forced Testimony

    The full Second Circuit said Thursday it will not reconsider a decision dismissing a Libor-rigging case tainted by compelled statements made in the U.K. — leaving the government to live with the limit on cross-border enforcement or appeal to the U.S. Supreme Court.

Expert Analysis

  • NY Commercial Division Rule Changes Promote ADR Use

    Christopher Palermo

    Recent rule changes in the Commercial Division of the Supreme Court of New York are the latest of several efforts made to foster greater use of mediation and to institutionalize alternative dispute resolution, says Christopher Palermo, a litigation partner at Bleakley Platt & Schmidt LLP who serves on the Commercial Division Advisory Council.

  • Bylaw Response To ‘Placeholder Slate’ Tactic Is Unproven

    Richard Grossman

    In the past year, more than 50 publicly traded companies have amended their bylaws to address the potential for a so-called “placeholder slate” of directors nominated by activist shareholders. However, neither the bylaw amendments nor the placeholder-slate tactic has been tested in court, leaving their ultimate fate undetermined, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • How Arbitrators Maintain Proportionality In Discovery

    Richard Seymour

    There has been much discussion of discovery proportionality in federal litigation since the December 2015 changes to Civil Rule 26. But arbitrators have long used procedures to simplify the discovery process that courts have only recently begun to adopt, says attorney and arbitrator Richard Seymour.

  • The Law Firm CFO’s Role In The Strategic Planning Process

    Tyler Quinn

    Today's law firm chief financial officer should be involved in many areas beyond traditional financial management, including operations, risk management and information technology. He or she can support strategic planning throughout the process, from development of the plan to its implementation, measurement and eventual evolution, say Tyler Quinn and Marc Feigelson of Kaufman Rossin PA.

  • SEC's Disclosure Proposal Is A Step In The Right Direction

    Nicolas Grabar

    Recently proposed changes to the U.S. Securities and Exchange Commission’s disclosure requirements could signal a trend to emphasize quality over quantity and principles-based rather than prescriptive rules, which would benefit U.S. public companies and investors alike, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Law Firms Must Transition To An Industry Sector Approach

    Heidi Gardner

    Clients are beginning to expect and demand that their external lawyers provide advice tailored to the client's industry. Aside from this, law firms should want to move toward a sector approach because industry-focused groups are a natural place for cross-practice collaboration to flourish, say Heidi Gardner and Anusia Gillespie of Harvard Law School.

  • AML For Broker-Dealers: Takeaways From SEC Enforcement

    Jesse Morton

    The U.S. Securities and Exchange Commission recently started regularly using Rule 17a-8 under the Securities and Exchange Act as a tool to enforce anti-money laundering deficiencies with broker-dealers. These enforcement actions offer a number of key takeaways that may help broker-dealers enhance their AML compliance program, says Jesse Morton of Stout Risius Ross LLC.

  • Series

    Judging A Book: Kozinski Reviews 'The Judge'

    Judge Alex Kozinski

    In their new book, "The Judge: 26 Machiavellian Lessons," do Ronald Collins and David Skover prove their thesis that hypocrisy is the key to judicial greatness? Some of the examples they present are hard to dispute, says Judge Alex Kozinski of the Ninth Circuit.

  • The Evolution Of Regulators’ Views On Bitcoin ETFs

    Daniel Nathan

    Bitcoin has taken two significant steps toward legitimacy since the Winklevoss and SolidX exchange-traded fund applications were rejected by the U.S. Securities and Exchange Commission earlier this year. As bitcoin trading proliferates, it is likely that the SEC will change its stance and approve a bitcoin ETF, say attorneys with Morvillo LLP.

  • Despite Recent Victories, Risks Remain For Plan Fiduciaries

    Julie Stapel

    Over the last few months, there have been a significant number of court decisions ruling against plaintiffs in single-stock fund cases under the Employee Retirement Income Security Act. However, these plan fiduciary “victories” are somewhat Pyrrhic and underscore that an alleged lack of fiduciary process can create ongoing risks and costs, say Julie Stapel and Elizabeth Goldberg of Morgan Lewis & Bockius LLP.