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Securities

  • October 12, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen Deutsche Bank sue an Italian wealth management bank, several hotels lodge competition claims against Visa and MasterCard and the 200-year-old company behind British bank notes bring a pensions action against HSF. Here, Law360 looks at those and other new claims in the U.K.

  • October 12, 2018

    Cobalt Investors Seek $147M Deal In Angolan Oil Bribe Row

    A class of Cobalt International Energy investors urged a Texas federal judge Friday to approve a $146.9 million settlement in a securities suit claiming the now-bankrupt company bribed Angolan officials and made misrepresentations that cost the investors billions.

  • October 12, 2018

    SEC Suspends Three Ex-BDO Auditors Over Backdated Docs

    The U.S. Securities and Exchange Commission said Friday that it barred three former accountants at BDO USA LLP from auditing publicly traded companies for releasing an audit report for insurer AmTrust Financial Services Inc. before the underlying auditing work was done.

  • October 12, 2018

    Ex-UBS Forex Trader Says 'Cartel' Used Chats To Collude

    A former foreign currency exchange trader for Barclays PLC and UBS Group AG on Friday told a Manhattan federal jury that he and three other forex traders at rival banks used a chatroom dubbed “the cartel” to coordinate their euro-U.S. dollar deals, including those tied to benchmark fix rates.

  • October 12, 2018

    Fertilizer Co. Officers Diluted Ownership Shares, Suit Says

    A corporation and individual with ownership stakes in fertilizer manufacturer Verdesian Life Sciences LLC filed suit in Delaware Chancery Court claiming company officers entered into a series of self-interested transactions that diluted the value of their membership units.

  • October 12, 2018

    Former SEC Senior Counsel Joins Cahill Gordon In DC

    A senior counsel to a former U.S. Securities and Exchange Commission member has joined Cahill Gordon & Reindel LLP’s securities and regulatory enforcement practice in Washington, D.C., the firm announced Thursday.

  • October 12, 2018

    Synovus, Fla. Bank Owe Info On $2.9B Deal, Investor Says

    A shareholder for Florida Community Bank launched a proposed class action in Delaware federal court Thursday to try to put a pending $2.9 billion acquisition of the bank by financial services firm Synovus on hold, saying more information is needed before the deal can go through.

  • October 12, 2018

    3 Commodity Traders Charged In $60M Spoofing Scheme

    The U.S. Department of Justice said Friday that it has hit three commodity futures traders with fraud and conspiracy charges related to a spoofing scheme that distorted the commodities markets and caused other traders to lose more than $60 million.

  • October 12, 2018

    ADT Hit With Stock-Drop Suit Over SEC Disclosures

    Electronic home security business ADT Inc., its directors and controlling shareholders failed to disclose competition in the market and ongoing litigation in filings with the U.S. Securities and Exchange Commission, ultimately causing the company's stock price to drop, according to a complaint filed in Florida federal court Thursday.

  • October 12, 2018

    Woodbridge Property Investors Take Issue With Ch. 11 Plan

    A group of real estate investors objected Thursday to The Woodbridge Group of Companies’ Ch.11 liquidation plan in Delaware, claiming creditors are not treated equally and that the plan improperly seeks to eliminate certain secured creditors' claims.

  • October 12, 2018

    Pa. Jury Convicts 'Deal-Closer' In $54M Ponzi Scheme

    A Pennsylvania federal jury on Friday convicted a former insurance salesman for his role as the deal-closer in a $54 million Ponzi scheme that had naive investors pouring cash into bogus land and green energy investments.

  • October 12, 2018

    SEC Reopens Comment Period For Years-Old Swaps Proposal

    The U.S. Securities and Exchange Commission on Thursday voted to reopen the comment period for margin and capital requirements for securities-based swaps transactions mandated by Dodd-Frank, signaling renewed interest in regulations proposed as long as six years ago.

  • October 12, 2018

    Biotech Co. Slapped With Stock-Drop Suit Over Patent Failure

    A biotechnology firm's executives misled investors about patent rejections for its star product, which sent its stock into free fall when the news went public, according to a derivative suit filed on behalf of the company in Utah federal court.

  • October 12, 2018

    Tenet Brass Knock Back Derivative Suit Over FCA Settlement

    Current and former Tenet Healthcare Corp. board members have won a Texas court ruling that sends shareholders back to the drawing board on claims that the company leaders shirked their fiduciary duties by not stopping a kickback scheme that led to a $513 million False Claims Act settlement.

  • October 12, 2018

    K2M Shareholders Move To Block $1.4B Stryker Merger Vote

    A pair of investors in K2M Group Holdings filed separate suits in Delaware federal court on Friday seeking to block a shareholder vote on the company's $1.4 billion merger with Stryker Corp., both saying K2M's proxy statement regarding the proposed transaction lacks material information about its financial projections.

  • October 12, 2018

    2 Fraud-Convicted Pharma Analysts Denied Acquittal Bids

    A Massachusetts federal judge on Friday rejected a plea for acquittal and a new trial by two pharmaceutical statisticians awaiting sentencing for securities fraud, denying their argument that prosecutors improperly presented evidence of two separate stock tip conspiracies to a jury after saying they would present just one.

  • October 11, 2018

    Stock Heir Asks 9th Circ. To Revive $100M Lost Shares Row

    A New York man asked the Ninth Circuit on Thursday to revive litigation alleging Franklin Resources Inc. owes him more than $100 million in shares that went missing on the company's watch, saying a lower court erred in finding he knew of his rights more than 20 years before filing suit.

  • October 11, 2018

    Fidelity Asks 1st Circ. To End Decade-Old Whistleblower Case

    Fidelity Investments has asked the First Circuit to uphold a jury verdict absolving the company of terminating a finance director who won whistleblower protections from the U.S. Supreme Court then lost her claims of retaliation at trial, calling for the end of the former employee’s decade-old lawsuit.

  • October 11, 2018

    NY Judge Stays Deposition In Madoff Victims' Law Firm Suit

    A New York federal magistrate judge on Thursday granted Chaitman LLP and Becker & Poliakoff LLP's motion for a stay on deposition discovery in a suit by victims of Bernie Madoff against their former attorney, saying it is appropriate given the costs of the deposition and the firms' pending motions to dismiss.

  • October 11, 2018

    Lieff Cabraser Balks At Paying More In State Street Fee Fight

    Lieff Cabraser Heimann & Bernstein LLP told a Massachusetts federal judge late Thursday it should not have to continue paying for a multimillion-dollar probe into a $75 million attorney fee awarded following a settlement with State Street Corp., arguing much of the money has been spent looking into conduct tied to its fellow class counsel, Labaton Sucharow LLP.

Expert Analysis

  • Stock Compensation Can Add Zing To Your Benefits Package

    Amy Bowler

    To attract talent in a competitive market, some employers may add creative stock and bonus compensation programs to thier benefits packages. They should keep in mind that adding stock options can trigger a multitude of legal rules and restrictions, say Amy Bowler and Beth Nedrow of Holland & Hart LLP.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • IRS Ruling On MBS Restructuring Should Encourage Investors

    Mark Leeds

    In June 2019, the Federal Housing Finance Agency will require Freddie Mac and Fannie Mae to begin issuing standardized mortgage-backed securities. Accordingly, the IRS last month encouraged Freddie Mac investors to convert their existing securities by stating that conversions won't trigger taxable gains or losses, say Mark Leeds and Steven Garden of Mayer Brown LLP.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Cayman Derivative Cases Brought Overseas Still Face Hurdles

    Peter McMaster

    Two court decisions within the past year have simplified the process for bringing derivative claims outside the Cayman Islands on behalf of Cayman companies, as shareholders no longer need permission from a Cayman court. However, such claims still face two difficulties, say Peter McMaster and Anna Snead of Appleby.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Opinion

    A Decade After Financial Crisis, Misconceptions Remain

    Edward Stringham

    Following the 2008 economic downturn, many observers blasted mortgage-backed securities and collateralized debt obligations. Today, we're hobbled with numerous regulations that stem from a fundamental misunderstanding of what these instruments were designed to do, says Edward Stringham of the American Institute for Economic Research.

  • Considerations For The 2019 Proxy Season

    Steve Quinlivan

    Given a number of changes to the regulatory landscape in recent months, public companies should consider planning for the upcoming proxy season early. The U.S. Securities and Exchange Commission has been particularly active adopting rules and regulations in areas that substantially impact annual reporting, say attorneys with Stinson Leonard Street LLP.

  • Examining The Role Of Market Price In Appraisal: Part 2

    Dirk Hackbarth

    In response to the Delaware Chancery Court’s invitation earlier this year seeking expert opinions on market efficiency, we propose several tests to empirically assess the reliability of market price in appraising fair value, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • Time To Prepare For New Municipal Securities Disclosures

    Laura Kurtz

    Starting next year, municipal issuers will need to report the incurrence of certain financial obligations, if material. However, the U.S. Securities and Exchange Commission has offered little guidance on how to make a materiality determination, says Laura Kurtz of Eckert Seamans Cherin & Mellott LLC.