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Securities

  • August 10, 2018

    Insurers Ask 1st Circ. To Affirm UBS' $20M Coverage Loss

    A trio of insurers urged the First Circuit on Friday to uphold a judgment that UBS AG units can’t tap $20 million in coverage for costs associated with claims that investors lost billions of dollars because UBS manipulated Puerto Rico's municipal debt bond market, saying the bank has impermissibly raised new arguments on appeal.

  • August 10, 2018

    Ex-UBS Adviser Bilked Clients For Almost $4M, Feds Say

    A former financial adviser for a UBS Group AG unit has been charged with defrauding his retail clients out of nearly $4 million by promising returns as high as 20 percent in private investment funds but pocketing the bulk of the cash, Michigan federal prosecutors said Friday.

  • August 10, 2018

    Woodbridge Creditors Object To Claim Assignment Plan

    A group of noteholders of the Woodbridge Group of Companies LLC says the debtor’s proposed plan disclosure statement is impermissible because it would seek to solicit creditors with potential class claims relating to a Ponzi scheme run by the debtor to assign those claims to a plan litigation trust.

  • August 10, 2018

    CA Tech Hit With Investor Suit Over $18.9B Sale To Broadcom

    A putative class of CA Technologies Inc. investors opened a federal securities action against the information technology giant in Delaware on Thursday, alleging multiple disclosure and proxy failures in connection with its proposed $18.9 billion sale to global chipmaker Broadcom Inc.

  • August 10, 2018

    Canadian ICO Promoter Can't Escape SEC Fraud Suit

    A Brooklyn federal judge denied a Canadian man’s bid to toss for lack of jurisdiction a U.S. Securities and Exchange Commission suit alleging his company orchestrated a fraudulent $15 million initial coin offering, concluding that regulators established that his company conducted significant dealings in the United States.

  • August 10, 2018

    McKinsey Critic Bolsters Call To Reopen ANR Ch. 11 Case

    A company formed by Jay Alix, a critic of consulting giant McKinsey & Co., on Thursday renewed its call for a Virginia bankruptcy court to reopen the Alpha Natural Resources Chapter 11 case, saying it had discovered dozens of conflicts of interest in the case by McKinsey.

  • August 10, 2018

    Feds Fight Ex-Barclays FX Trader’s Bid To Toss HP Case

    Prosecutors pushed back on an ex-Barclays trader’s motion to dismiss the criminal “front running” case against him Friday, arguing that the question of whether he had a duty to act in the best interests of Hewlett Packard Co. in a £6 billion foreign currency options transaction can only be determined by a jury.

  • August 10, 2018

    Health Co. Says Insurer Owes Coverage For Benefits Dispute

    A health management solutions company accused Atlantic Specialty Insurance Co. in Iowa federal court Friday of wrongly denying coverage for costs incurred from an Employee Retirement Income Security Act suit over a purchase by the company's employee stock ownership plan.

  • August 10, 2018

    Celator Insider Trading Schemers Spared Prison Time

    Two men were each sentenced Friday in New Jersey federal court to a year of home confinement for their roles in an insider trading scheme involving confidential information about Celator Pharmaceuticals Inc.'s positive test results for a cancer drug and the company's impending acquisition by Jazz Pharmaceuticals PLC.

  • August 10, 2018

    Mt. Gox Traders Seek Default Win After Ex-CEO Doesn't Show

    A former user of the now-defunct Bitcoin exchange Mt. Gox asked an Illinois federal judge to enter a default judgment against the exchange’s founder Mark Karpeles on Friday, saying he has not responded to a proposed class action over its collapse.

  • August 10, 2018

    Monster Beats $8.9M Fees Suit From Investment Bank

    A New York federal judge said Friday that Monster Worldwide Inc. does not owe Stone Key Partners LLC about $8.9 million in fees and costs for the boutique investment bank's role in evaluating strategic alternatives because the transactions that the job-search site ultimately completed were either too small or too late.

  • August 10, 2018

    SEC Gets $9.6M Judgment Against Galanis For Gerova Fraud

    The U.S. Securities and Exchange Commission nabbed a final judgment against convicted fraudster Jason Galanis that orders him to disgorge more than $9.6 million from proceeds he received through a scheme to illegally procure and then sell off stock in Gerova Financial Group Ltd.

  • August 10, 2018

    Fox Rothschild Nabs Montgomery McCracken Litigator

    Fox Rothschild LLP has added as a partner to its Wilmington office a Montgomery McCracken Walker & Rhoads LLP attorney who has worked high-profile securities fraud cases during his more than 20-year legal career, including the $3.2 billion settlement in the Tyco International Ltd. case.

  • August 10, 2018

    McGuireWoods Adds Litigation, Employment Partners

    McGuireWoods has brought husband and wife Yasser and Meghaan Madriz in as partners at the firm's Houston office, bolstering its litigation and labor and employment stable.

  • August 10, 2018

    Man Who Stole Friends’ $7M In Ponzi Scheme Gets 5 Years

    A Massachusetts federal judge sentenced an elderly Texas resident to five years behind bars and denied his bid for acquittal on Wednesday after a jury found him guilty of spending over a decade stealing millions of dollars from his friends and business associates who believed he would invest it for them.

  • August 10, 2018

    Investors Want Affiliate-Bank Claims To Stay In Libor MDL

     A class of over-the-counter investors urged a New York federal court Thursday to keep alive its antitrust claims against affiliates of Bank of America N.A. and JPMorgan Chase Bank N.A. in sprawling multidistrict litigation over alleged manipulation of the London Interbank Offered Rate.

  • August 9, 2018

    Sinclair Investor Sues Over Withdrawn $3.9B Tribune Deal

    A Sinclair Broadcast Group Inc. investor filed a putative securities fraud class action against the company Thursday in Maryland federal court, claiming it and its top brass mangled the review process of a planned $3.9 billion acquisition of Tribune Media Co. by knowingly misleading the public about its divestitures.

  • August 9, 2018

    Crystallex To Get Shares Of Citgo In $1.2B Award Row

    A Delaware federal judge Thursday signed off on Canadian mining company Crystallex International Corp.’s request to seize shares of Citgo Petroleum Corp., which is owned by a Venezuelan state-run oil company, to block Venezuela from escaping a $1.2 billion arbitration award over a canceled mining contract.

  • August 9, 2018

    Special Master To Reopen $4M State Street Fee Probe

    A special master appointed by a Massachusetts federal judge to probe the attorneys' fees arrangements in a $300 million class action against State Street agreed Thursday to modify his report that called for plaintiffs’ counsel to return up to $10 million in fees, averting a ruling on a request to have him taken off the case.

  • August 9, 2018

    'Man-Purse And Some TLC' Sweetened $60K Bribe, Jury Told

    A key prosecution witness in the $20 million cash-for-investment bribery case against former union boss Norman Seabrook told a Manhattan jury Thursday that a designer man-purse and some friendly treatment soothed the defendant when he learned of his less-than-expected $60,000 alleged payout.

Expert Analysis

  • Recent Trends In Structuring CRE-CLOs

    Jason Schwartz

    Commercial real estate collateralized loan obligations are growing in popularity as a way to securitize mortgage loans. With careful tax planning, CRE-CLO structures can be powerful tools for securitizing pools of assets that are inappropriate for acquisition by a real estate mortgage investment conduit, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.

  • Claims Trading Lessons From Delaware Bankruptcy Court

    Michael Rupe

    The Delaware bankruptcy court's opinion last month in Woodbridge serves as a cautionary reminder that policy preferences for free claim assignability do not serve to nullify properly drafted anti-assignment provisions, say attorneys with King & Spalding LLP.

  • Series

    Judging A Book: Hood Reviews 'Lawyering From The Inside Out'

    Judge Denise Hood

    Law professor Nathalie Martin's new book, "Lawyering From the Inside Out: Learning Professional Development Through Mindfulness and Emotional Intelligence," can be of value to any lawyer aiming to achieve greater productivity, relieve the stress of the legal profession and focus on goals, says U.S. District Chief Judge Denise Page Hood of the Eastern District of Michigan.

  • Too Much Employer Stock? Don't Ignore Diversification

    Mark Poerio

    Despite recent warnings of the risks associated with executives feeling overly invested in their employer’s stock, some board members and compensation committees still turn a deaf ear to stock diversification programs that seem at odds with the idea of aligning executive interests with those of shareholders. Sometimes, however, the pendulum swings too far, says Mark Poerio of Wagner Law Group.

  • Challenging SEC Authority To Enforce The Bank Secrecy Act

    Bob Loeb

    In the past few years, the U.S. Securities and Exchange Commission has become increasingly active in bringing enforcement actions based on broker-dealers' alleged failures to comply with the Bank Secrecy Act. But the SEC's authority to bring BSA actions has never been established — and is currently being challenged in SEC v. Alpine Securities, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • 3 Top E-Discovery Case Law Lessons Of 2018 (So Far)

    Casey Sullivan

    The blockbuster e-discovery cases, with big sanctions and bigger controversies, have been few and far between this year. But that doesn’t mean the legal questions around e-discovery have been answered. Let’s take a closer look at three cases worthy of our attention, says Casey Sullivan, an attorney at discovery technology provider Logikcull.

  • Assessing Lucia's Impact Beyond The SEC

    Barry Hartman

    The U.S. Supreme Court's decision in Lucia v. U.S. Securities and Exchange Commission necessarily implicates a broad swath of recently decided or currently pending enforcement actions before hundreds of administrative law judges across federal agencies, including the U.S. Environmental Protection Agency, say attorneys with K&L Gates LLP.

  • The 1st Judicial Finding That Digital Tokens Are Securities

    Deborah Meshulam

    A Florida magistrate judge's finding last month that tokens issued and sold by technology startup Centra Tech are investment contracts could serve as a road map for the evaluation of token sales in other cases, say attorneys with DLA Piper.

  • Another Decision In Goldman Code Theft Case

    Jonathan Waisnor

    The Aleynikov case demonstrates that employees who attempt to use the proprietary source code of their former employers without authorization may face not only the risk of civil liability, but also prosecution under local criminal statutes. And they could also face liability under the recently expanded federal Economic Espionage Act, says Jonathan Waisnor of Willkie Farr & Gallagher LLP.