Eight insiders of Miramar Labs Inc. have agreed to pay $410,000 to settle class allegations that a $20 million merger with another medical products company, Sientra Inc., shortchanged shareholders, according to court papers filed Monday in Delaware Chancery Court, bringing a quick close to the suit.
Indian conglomerate Tata Sons Ltd. and Japanese telecom NTT DoCoMo Inc. appear to have completed their settlement over a $1.2 billion arbitration award in a share purchase dispute, after the two sides agreed to drop DoCoMo’s New York federal suit to confirm the award.
The trial of former Katten Muchin Rosenman LLP attorney Evan Greebel on charges of aiding former Retrophin Inc. CEO Martin Shkreli in a securities fraud scheme went off the rails on Monday when the testimony of a former Retrophin executive came to an abrupt halt after the defense accused him of committing a host of cybercrimes.
The judge presiding over Puerto Rico’s historic restructuring proceedings ruled Monday that the territory’s insolvent electric company will remain under local government control as it restructures $9 billion worth of debt and addresses operational weaknesses, blocking a federal panel from installing an emergency manager to run the utility.
A Booz Allen Hamilton investor on Monday sued the government contracting giant’s top brass in Delaware federal court after the company announced it was being investigated by the U.S. Department of Justice for its accounting and cost charging practices.
An overhaul of the swaps market proposed in the 2010 Dodd-Frank Act should be reviewed to ensure that the policies enhance rather than restrict market “vibrancy,” U.S. Commodity Futures Trading Commission Chairman J. Christopher Giancarlo said Monday.
Citing an increased risk from data breaches, the U.S. House of Representatives approved a bill Monday that would increase security requirements for market data held by the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
New York’s state banking regulator said Monday that Credit Suisse AG has agreed to pay a $135 million fine to settle allegations of improper conduct in its foreign exchange trading business, including that some of its traders used chat rooms to swap confidential information with other banks’ traders in an effort to juice their own profits at customers’ expense.
The U.S. Securities and Exchange Commission has filed a suit in Pennsylvania federal court accusing Philadelphia commercial real estate lender Singer Financial Corp. and its sole officer of raising roughly $4.5 million through an illegal unregistered offering of unsecured promissory notes.
A federal jury in Boston on Monday began deliberating a whistleblower’s claim that her colleagues at Fidelity Investments methodically bullied and pushed her toward the door after she voiced concerns that expense miscalculations appeared to bilk shareholders.
ImmunoCellular Therapeutics Ltd. urged a California federal court on Friday to toss a proposed class action accusing the biotech company of an illegal stock promotion scheme around one of its brain cancer drug candidates, arguing that the alleged scheme’s disclosure came too late to have caused the losses claimed by the investors behind the suit.
An Arizona foreign exchange trader and his company have agreed to pay $2.3 million to settle the U.S. Commodity Futures Trading Commission's claims that the trader misappropriated clients’ funds and resorted to a Ponzi-style scheme to cover trading losses, according to a consent order filed Monday in Arizona federal court.
Lenders to the failed production company behind “American Idol” who accuse 21st Century Fox and Apollo Global Management of siphoning off its assets and leaving creditors with scraps as part of a complex merger of production companies they controlled have filed a new suit in New York state court after similar litigation in Los Angeles was put on hold.
The Delaware Chancery Court threw out a books and records demand against specialty plastics maker A. Schulman Inc. on Monday, saying the shareholder who brought the suit merely served to rubber-stamp an action motivated by New York law firm Levi & Korsinsky LLP.
The Tenth Circuit on Monday declined to rehear a case that found the formal announcement of a U.S. Securities and Exchange Commission investigation didn’t trigger coverage for MusclePharm Corp. under a Liberty Insurance Underwriters Inc. policy, an outcome the sports nutrition company says will widen a circuit split over the “exceptionally important” issue.
The Chapter 11 trustee of F-Squared Investments Inc. on Friday said a pair of excess insurers owe it $7.7 million for the costs the firm ran up defending against the U.S. Securities and Exchange Commission action that bankrupted it, arguing the insurers are wrongly claiming the SEC probe started the day before the policies went into effect.
Residential solar energy firm Sunrun Inc. and two executives have asked a California federal judge to dismiss a proposed investor class action that accuses them of inflating the company's booking statistics in order to juice its stock price, saying they never made false statements, never admitted to doing so and had no incentive to do so.
Ballard Spahr LLP has added a former New Jersey federal prosecutor, who is also the former attorney-in-charge of the U.S. attorney's office's outpost in Camden, as a partner to the firm’s white collar and internal investigations practice group, the firm announced Monday.
A former technology company executive will have to answer to claims he defrauded investors after a Texas federal court on Thursday let stand a trimmed-down U.S. Securities and Exchange Commission suit accusing him of orchestrating a scheme to misrepresent the capabilities of a new server.
A bipartisan group of senators on Monday unveiled a narrow deal to ease bank rules, including raising the asset level at which banks are subjected to enhanced supervision and other measures aimed at easing compliance for community banks.
Christopher Scalia and Edward Whelan have published an indispensable collection of the late Justice Antonin Scalia's best speeches. "Scalia Speaks: Reflections on Law, Faith, and Life Well Lived" puts on full display Justice Scalia’s skilled writing, quick wit and uncommon wisdom on a wide range of topics — from law to turkey hunting, says Judge William Pryor of the Eleventh Circuit.
Financial Crisis Anniversary
The role of the general counsel has significantly grown in importance, with the GC now often replacing the senior partner in the outside law firm as the primary counselor for the CEO and the board. This inside counsel revolution was given great impetus by the financial crisis that started 10 years ago, says Ben Heineman Jr., former general counsel of General Electric Co.
The U.S. Securities and Exchange Commission has not been shy about enforcing the Foreign Corrupt Practices Act globally. But a recent case against Mexican homebuilding company Desarrolladora Homex and its executives makes clear that the SEC will not hesitate to enforce against foreign companies other provisions of the federal securities laws as well, says Brian Neil Hoffman of Holland & Hart LLP.
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.
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.
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.
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.
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.
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.
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.