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.
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.
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.”
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.