Securities

  • November 14, 2017

    SEC Gets Preliminary Injunction In Coin Offering Fraud Suit

    A New York federal judge on Monday entered a preliminary injunction freezing the assets of a Brooklyn businessman whom the U.S. Securities and Exchange Commission has accused of swindling investors through so-called initial coin offerings purportedly backed by real estate and diamonds.

  • November 14, 2017

    CFTC Fines Norwegian Energy Co. $4M For Index-Rigging

    A Norwegian energy company will pay a $4 million penalty to resolve claims it tried to manipulate the Argus Far East Index, a benchmark index for propane gas prices, to boost the value of financial positions held by the company, the U.S. Commodities Futures Trading Commission said Tuesday.

  • November 14, 2017

    UBS Can't Exit Price-Fixing Suit, Gold Sellers Say

    Gold sellers accusing several major global banks of taking part in a conspiracy to manipulate a benchmark price for the precious metal urged a New York federal judge on Monday not to toss their claims against UBS AG, arguing that the Swiss banking giant has “presented no proper basis for dismissal.”

  • November 14, 2017

    Fidelity Whistleblower Loses Suit Years After High Court Win

    A former finance director at Fidelity Investments failed to prove in Massachusetts federal court that her concerns of possible accounting fraud at the mutual funds business were credible, a jury decided Tuesday.

  • November 14, 2017

    Fraud At KIT 'The Elephant In The Room,' Ex-CFO Tells Jury

    Former KIT Digital Inc. finance executive Robin Smyth told a New York federal jury Tuesday that he helped create bogus revenue streams for Kaleil Isaza Tuzman, the former head of the fallen tech concern, who is accused of fraud, and that they used terms like “the elephant” and “the back end” to discuss the fakery.

  • November 14, 2017

    Aerospace Execs' Side Deals Harmed Sale, Del. Justices Told

    An investor in a New Jersey aerospace parts maker on Monday urged the Delaware Supreme Court to revive his case claiming shareholders were shortchanged in the company’s $34 million sale to an Arlington Capital Partners affiliate, arguing he has shown the two companies struck up insider side deals.

  • November 14, 2017

    Jury In NYC Union Graft Trial Says It's Deadlocked

    The jury in the trial of New York City labor leader Norman Seabrook and Murray Huberfeld, the founder of Platinum Partners LP, on charges of honest services wire fraud and conspiracy on Tuesday told a New York federal judge that its members were deadlocked after approximately 20 hours of deliberations.

  • November 14, 2017

    Levi & Korsinsky Seeks Lead In Insurance Stockholder Suit

    Levi & Korsinsky LLP asked Monday to be lead counsel in one of three stockholder putative class suits alleging a medical insurance sales company failed to disclose that its application for a Florida insurance license was denied due to unrevealed legal actions against company executives. 

  • November 14, 2017

    FDIC Chair Warns Bank Rules' Rollback Poses Fiscal Risks

    Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Tuesday warned that easing the rules that govern banks too much during a benign economic environment would make it much harder to respond to a sudden financial shock.

  • November 14, 2017

    Ruby Tuesday Shareholders Sue Over $335M PE Firm Buy

    A proposed class of Ruby Tuesday Inc. shareholders filed suit against the restaurant company in Tennessee federal court on Tuesday, seeking to halt private equity firm NRD Capital Management LLC's planned $335 million purchase of the casual dining chain following what the investors characterized as an inadequate sales process.

  • November 14, 2017

    Miramar Directors Ready To Put Sientra Deal Suit To Bed

    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.

  • November 14, 2017

    Tata, DoCoMo Sew Up Deal Over $1.2B Arbitration Award

    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.

  • November 13, 2017

    Ex-Katten Atty Trial Rocked By Claims Of Witness' Cybercrime

    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.

  • November 13, 2017

    Puerto Rico Gov't Wins Autonomy Fight Over Electric Co.

    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.

  • November 13, 2017

    Investor Sues Booz Allen Over DOJ Billing Investigation

    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.

  • November 13, 2017

    Swaps Overhaul Should Boost Market Vibrancy: CFTC Chair

    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.

  • November 13, 2017

    House OKs Increased Market Data Security Requirements

    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.

  • November 13, 2017

    NY Hits Credit Suisse With $135M Fine Over Forex Business

    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.

  • November 13, 2017

    SEC Claims Philly Lender Raised $4.5M In Illegal Offering

    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.

  • November 13, 2017

    Fidelity Whistleblower Asks Jury For $4.9M For Retaliation

    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.

Expert Analysis

  • 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.

  • Financial Crisis Anniversary

    New Post-Recession Metrics For BigLaw Partner Success

    Peter Zeughauser

    After nearly a decade of recession-accelerated change in the legal industry, “merit-based” compensation has largely come to mean measuring attorney success using some combination of origination and working attorney hours metrics. However, there are signs that the real impact of the recession is still around the corner, and that building a book isn’t enough, says Peter Zeughauser of Zeughauser Group.