Securities

  • April 20, 2018

    2 Water Island Funds Contest Barracuda $1.6B Buyout Price

    Two funds of Water Island Capital LP petitioned Delaware’s Chancery Court  late Thursday for appraisal of their Barracuda Networks Inc. stock following Barracuda's $27.55 per share, $1.6 billion, go-private acquisition by private equity Thoma Bravo in early February.

  • April 19, 2018

    Puerto Rico Fed Board Approves Pension-Cutting Fiscal Plan

    The federal panel empowered to restructure Puerto Rico's debts and shore up its finances certified six-year fiscal plans for the island on Thursday, bucking the resistance by the territory’s government to pension reform and other austerity measures in an effort to fix the island’s debt crisis and instill investor confidence.

  • April 19, 2018

    Lehman Judge Fumes At RMBS Trusts' Distribution Moves

    Trustees for investors who bought toxic residential mortgage-backed securities from Lehman Brothers Holdings Inc. before the 2008 financial crisis got an earful Thursday from a New York bankruptcy judge who fumed that their concerns over how to distribute funds from a $2.4 billion settlement could have been raised months ago.

  • April 19, 2018

    CytRx, Class Dispute $685K Pump & Dump Deal Fee Award

    Class attorneys defended Thursday a $685,000 fee request for their work on a proposed settlement in a derivative suit against CytRx Corp. directors in connection with a stock-pumping scheme, telling a Delaware state court the firms justified the time and reached an agreement that benefited stockholders.

  • April 19, 2018

    Fla. Exec Pleads Guilty In $150M Brazilian Investment Scheme

    A Florida executive pled guilty Thursday to orchestrating a $150 million investment fraud scheme that swindled investors by raising money to factor accounts receivable in Brazil but instead used the funds to pay other investors and to pay commission to brokers.

  • April 19, 2018

    Logistics Co. Investor Cries Foul On Board's Control Transfer

    An investor in logistics firm Steel Connect Inc. accused its board of directors in a derivative suit filed Wednesday in Delaware of improperly issuing preferred equity to its largest shareholder, giving majority voting control to the shareholder without any compensation to minority investors.

  • April 19, 2018

    Burning Questions Arise About SEC’s Best Interest Standard

    Less than a day after the U.S. Securities and Exchange Commission released its plans to hold broker-dealers to a higher standard of care when advising retail clients, lawyers and consumer advocates began raising flags about parts of the mammoth proposal, signaling the agency still has much to do before it can finalize the long-awaited new rules.

  • April 19, 2018

    Wells Fargo Asks 8th Circ. To Salvage Foreign Tax Credits

    Wells Fargo appealed the loss of foreign tax credits in a lawsuit over a securities transaction worth more than $1.25 billion, telling the Eighth Circuit Wednesday that a Minnesota federal court had wrongly allowed a jury to decide its transaction was a sham.

  • April 19, 2018

    Uber Investors Face Uphill Battle In ‘Gloppy’ Fraud Suit

    A California federal judge said Thursday he has “substantial concerns” about keeping intact a putative securities class action alleging Uber and its ex-CEO Travis Kalanick's illicit business tactics cost investors billions, calling the allegations “gloppy” and “shotgun” and noting that not all corporate management can be turned into securities fraud.

  • April 19, 2018

    Proskauer Tells 5th Circ. It's Immune From $1.5B Stanford Suit

    Proskauer Rose LLP on Thursday told the Fifth Circuit that a Texas federal judge wrongly denied its bid to end a $1.5 billion suit brought by the receiver for the R. Allen Stanford Ponzi scheme, as the firm argues the attorney immunity doctrine should protect it from an upcoming trial.

  • April 19, 2018

    Marathon Settles ERISA Suit Over $88M In 'Risky' Investments

    Marathon Petroleum Corp.’s retirement plan has opted to settle a proposed class action over its decision to invest $88 million in company stock rather than face the possibility of the Sixth Circuit reviving the suit, which accuses the oil and gas company of playing fast and loose with retirees’ savings.

  • April 19, 2018

    BlackRock, Royal Park Can’t Toll RMBS Suits Against HSBC

    Investors who lost their bid for class certification can’t pause the clock on claims against HSBC Bank USA NA for allegedly botching its trustee responsibilities on hundreds of residential mortgage-backed securities trusts while they appeal, a New York federal judge ruled Thursday.

  • April 19, 2018

    Invenergy To Pay $1 In Damages For Investor Sale Dispute

    Citing in part a corporate law doctrine of “efficient breach,” a Delaware vice chancellor on Thursday awarded Leaf Clean Energy Company just $1 in damages in an investment dispute with wind farm developer Invenergy Wind LLC that Leaf said should have triggered a $126 million cash-out.

  • April 19, 2018

    High Court's Whistleblower Ruling Kills Ex-UBS Exec's Claim

    A New Jersey federal judge on Thursday trimmed a claim from a fired UBS Financial Services Inc. executive’s whistleblower suit following a U.S. Supreme Court decision holding that Dodd-Frank Act protections only extend to those who report alleged wrongdoing to the U.S. Securities and Exchange Commission.

  • April 19, 2018

    NJ Hedge Fund Owner Can't Escape Convictions In $4M Fraud

    A New Jersey federal court has knocked down a hedge fund owner's bid to overturn his convictions on charges of duping two investors into giving him about $4 million and spending most of it on a lavish lifestyle, finding more than sufficient evidence that he acted with fraudulent intent.

  • April 19, 2018

    Mass. Official Says SEC Proposals Shortchange Investors

    Massachusetts Secretary of the Commonwealth William F. Galvin blasted the U.S. Securities and Exchange Commission's proposed new standards for brokers on Thursday, saying the revised rules would benefit the broker-dealer industry, not investors.

  • April 19, 2018

    Feds Want Graft Retrial Jury To Hear Of Platinum's Downfall

    Manhattan federal prosecutors Thursday signaled that they intend to chart a new course in the graft retrial of Platinum Partners LP co-founder Murray Huberfeld and New York City labor leader Norman Seabrook, by informing jurors of the aftermath of the scheme when the hedge fund imploded.

  • April 19, 2018

    Abbott Must Give Docs To Alere Investors In Stock-Drop Suit

    Abbott Laboratories must relay four months' worth of merger discussions to a proposed class of Alere Inc. investors suing Alere over a dip in its stock price while the companies were negotiating a $5.3 billion merger in 2016, a federal magistrate judge ruled on Thursday in a Boston courtroom.

  • April 19, 2018

    CBS Directors Must Face Bulk Of Redstone Pay Suit

    The Delaware Chancery Court on Thursday allowed the bulk of claims to proceed in a derivative suit alleging CBS Corp.’s directors wasted corporate assets and unjustly enriched controlling shareholder Sumner Redstone by approving substantial salaries for the incapacitated media mogul.

  • April 19, 2018

    Margaritaville Developer Dodges Some Investor Claims

    A Louisiana federal court partly granted a restaurant developer's bid to toss a real estate investment firm's $3.4 million suit accusing it of lying about the potential profitability of two new Margaritaville restaurants in New Orleans and Minneapolis, letting the developer off the hook on two claims but keeping the other eight.

Expert Analysis

  • Prosecutors Should Be Wary Of Overreach After Marinello

    Stephen Cook

    The U.S. Supreme Court's rejection of the government’s broad interpretation of a criminal tax obstruction statute in Marinello may have implications for special counsel Robert Mueller’s indictments and the case involving alleged leaks from the Public Company Accounting Oversight Board, say attorneys with Brown Rudnick LLP.

  • 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.