Securities

  • August 16, 2017

    Oxbow Chancery Trial Postscript Puts Koch Atty On Stand

    An attorney for private equity investors in William I. Koch’s Oxbow Carbon LLC pressed R. Robert Popeo, chairman of Mintz Levin Cohn Ferris Glovsky and Popeo PC, on Wednesday about alleged late-raised moves to avoid their cash-out demands, during questioning that closed out a six-day trial on the dispute.

  • August 16, 2017

    DBSI Ponzi Schemers' 9th Circ. Appeal Largely Rejected

    The Ninth Circuit affirmed the prison sentences of four men who were convicted of fraud for their roles in the DBSI Inc. Ponzi scheme on Tuesday, rejecting several challenges to jury instructions and evidence but reducing a “double-counted” $32 million restitution order by $3 million.

  • August 16, 2017

    Mizuho Says High Court Ruling Winnows Mt. Gox Claims

    A Japanese bank being sued over the collapse of the Mt. Gox bitcoin exchange told an Illinois federal court Tuesday that it should dismiss claims brought by California and Pennsylvania residents in light of a recent U.S. Supreme Court decision limiting trial courts’ jurisdiction over claims involving out-of-state parties.

  • August 16, 2017

    Feds Say Ex-BofA VP, Others Made $5M From Insider Trading

    Manhattan federal prosecutors on Wednesday said seven people have been charged for their roles in a $5 million insider trading scheme, in which a former Bank of America vice president is accused of doling out confidential merger information he obtained from the bank.

  • August 16, 2017

    DOL Has No Authority For Fiduciary Rule, DC Circ. Told

    The National Association for Fixed Annuities urged the D.C. Circuit on Tuesday to revive the group's challenge to the U.S. Department of Labor’s fiduciary rule for retirement account advisers, saying the regulation threatens to upend the fixed annuities industry and exceeds the agency’s authority.

  • August 16, 2017

    Chinese Co. Must Turn Over US Assets, Calif. Court Hears

    A Los Angeles man asked a California federal court Tuesday to let him go after a Chinese bioengineering firm’s shares in a Golden State-based company, saying they are the firm’s only U.S. assets, which could go toward an arbitral award of over 34.5 million renminbi ($5 million).

  • August 16, 2017

    Brothers Stole $855K From Investors, SEC Says

    Two brothers stole upwards of $855,000 from investors who thought they were investing in penny stock companies, investment funds and blue chip companies, the U.S. Securities and Exchange Commission recently alleged in a New York federal suit.

  • August 16, 2017

    Minn. Justices Say Medtronic Investors Can Sue Over Merger

    Medtronic Inc. investors have the right to sue the company over a $50 billion tax-inversion deal with Covidien PLC that allegedly cut their shares of the company by 30 percent and caused them to pay significant capital-gains taxes, Minnesota’s high court ruled Wednesday.

  • August 16, 2017

    EB-5 Investor Not Worried About Atty Trading With His Cash

    An Iranian man who invested with an immigration attorney accused of using the EB-5 visa program to defraud more than 200 people told an Illinois federal judge Wednesday he was not concerned by claims the attorney may have used his money to trade securities.

  • August 16, 2017

    Ex-US Atty Joins King & Spalding To Start Chicago Office

    After receiving a “tsunami of interest” from firms in the area, former U.S. Attorney Zachary Fardon said Wednesday that he has opted to return to King & Spalding LLP and help the firm open a new office in Chicago.

  • August 16, 2017

    Broker Asks 9th Circ. To Revive Barclays Dark Pool Suit

    Broker-dealer Great Pacific Securities asked the Ninth Circuit on Monday to revive a proposed class action alleging Barclays Capital Inc. misled its traditional customers about their exposure to high-frequency traders in its dark pool, saying the complaint had enough to show firms relied on Barclays’ ads about the pool.

  • August 16, 2017

    Ex-Eaton Vance Trader Gets 18 Months For Fraud

    A former Eaton Vance trader was sentenced to a year and a half in prison Wednesday in Boston federal court for stealing $1.5 million from investors.

  • August 16, 2017

    JPMorgan Loses Bid To Appeal Petters Lawsuit

    A Minnesota federal judge on Wednesday denied JPMorgan Chase & Co.’s bid for an interlocutory appeal of a failed motion to dismiss a case alleging the bank aided businessman Thomas Petters’ $3.7 billion Ponzi scheme.

  • August 16, 2017

    Wells Fargo Board Changes Not Enough, Dem Lawmakers Say

    Democratic lawmakers on Wednesday blasted Wells Fargo & Co., saying that the replacement of the embattled bank’s chairman with a former Federal Reserve governor and other board changes do not go far enough.

  • August 16, 2017

    Upscale Insider Trading Fugitive, 79, Nabbed In Puerto Rico

    A 79-year-old Massachusetts man who had fled shortly before he was to report to prison for an insider trading scheme carried out on country club cocktail napkins was arrested by federal authorities over the weekend in Puerto Rico.

  • August 16, 2017

    Solar Co. Yingli Wins Dismissal From Securities Fraud Suit

    A California federal judge on Tuesday dismissed solar power firm Yingli Green Energy Holding Co. from a securities fraud case brought by investors that accused the company of making false public statements about a Chinese government program and money it was owed, deciding there weren’t sufficient facts to sustain the suit.

  • August 16, 2017

    Secret Service Agent Who Stole Bitcoin Cops To New Charge

    An ex-Secret Service agent sentenced to six years in prison for stealing more than $800,000 worth of bitcoin seized during the government’s crackdown on the black market website Silk Road pled guilty to a new charge of money laundering in California federal court Tuesday.

  • August 16, 2017

    Barclays Asks NY Top Court To Toss Amici In $10B Saudi Suit

    Barclays PLC on Saturday said that an amicus brief written by two New York law professors backing a Saudi contractor’s appeal in a $10 billion fraud case raises “entirely academic” issues and should be rejected by the state’s top court.

  • August 15, 2017

    Shareholder Suit Over SolarCity Stock Drop Tossed

    A California federal judge has dismissed a proposed class action accusing SolarCity Corp. of lying to investors about its finances as demand for solar power waned in 2015, finding that the shareholders failed to point to statements by the company and its executives that violated the Securities and Exchange Act.

  • August 15, 2017

    Twice-Convicted Jefferies Trader Seeks Bail Pending Appeal

    Former Jefferies Group residential mortgage-backed securities trader Jesse Litvak on Tuesday asked the Second Circuit to let him stay out of prison while his securities fraud appeal plays out, saying that like in his first appeal, he's again raised a substantial legal question that will likely lead to a reversal or new trial. 

Expert Analysis

  • Seeding Period Extensions After New Volcker Guidance

    V. Gerard Comizio

    With a new letter from the Federal Reserve Board, banking entities now have a standardized procedure to request extension of the permissible period for providing seed funding under the Volcker Rule. While the letter might suggest increased willingness on the part of the Fed to grant such requests, caution is warranted, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • Be Careful What You Share With Your Local Regulator

    Nick Morgan

    The U.S. Securities and Exchange Commission's recent $2.5 million award to a government tipster marks the first time it deemed a government employee eligible for a whistleblower payout. This determination raises significant policy and practical concerns about a government employee’s ability to provide information and documents to the SEC, say attorneys with Paul Hastings LLP.

  • Monthly Column

    Gray Matters: Clients Are Not Really 'Emotional'

    Gray Matters

    When you look at your client through the "survival circuit" lens, what first appeared as an emotional mess is now valuable information about what is important to them, what needs have to be met to settle the case, or what further clarity your client requires before moving forward, say dispute resolution experts Selina Shultz and Robert Creo.

  • CFTC LedgerX Approval Is A Big Step For Bitcoin

    Daniel Nathan

    LedgerX this week became the first platform to operate as both a bitcoin swap exchange and a clearinghouse under the U.S. Commodity Futures Trading Commission’s oversight. This approval removes various previous barriers to widespread trading on bitcoin’s value, say attorneys with Morvillo LLP.

  • Petrobras Renounces 2nd Circ. 'Preference' For Class Cert.

    Jonah Knobler

    The hubbub over ascertainability has obscured another remarkable part of the Second Circuit's Petrobras decision — one that constitutes a major victory for the defense side, says Jonah Knobler of Patterson Belknap Webb & Tyler LLP.

  • Avoiding The Rotten Compromise In Mass Litigation

    Ted Mayer

    Product liability litigation is often resolved through compromise. But not all compromises are equal. If a settlement achieves peace at unknown cost, does not resolve the most serious claims, or permits new claims to be filed for decades into the future, it is a rotten compromise and should be avoided, say Ted Mayer and Robb Patryk of Hughes Hubbard & Reed LLP.

  • Having A Chief Privacy Officer Reassures Your Firm's Clients

    Rita Heimes

    When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.

  • Weekly Column

    Innovating For Wise Juries: Discussions Before Deliberations

    Richard Lorren Jolly

    To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Jay Clayton's Enforcement Philosophy

    Lou Mejia

    Recent remarks made by U.S. Securities and Exchange Commission Chairman Jay Clayton suggest an enforcement approach that will consider factors beyond impact on the specific victims. Clayton’s remarks also signal that the SEC may proceed with caution on cybersecurity enforcement as it relates to public companies, says Lou Mejia, former SEC chief litigation counsel now with Perkins Coie LLP.

  • Combating Securities Fraud Allegations With 10b5-1 Plans

    Yafit Cohn

    The recent case of Tetraphase Pharmaceuticals illustrates that 10b5-1 trading plans continue to provide a defense to insider trading allegations in securities fraud suits. Because some courts have begun to examine these plans more closely, however, there are a number of “best practices” to consider, say Yafit Cohn and Karen Hsu Kelley of Simpson Thacher & Bartlett LLP.