Securities

  • December 6, 2017

    SEC Says Excessive Trading By 2 NY Brokers Hurt Clients

    Two brokers working for New York-based brokerage Four Points Capital Partners LLC made more than $100,000 each in commissions while recommending a high-cost trading strategy to clients who collectively wound up losing nearly $574,000, the U.S. Securities and Exchange Commission said in a suit filed Wednesday in New York federal court.

  • December 6, 2017

    Del. Chief Justice Calls $428M Williams Suit An Investor Game

    Delaware’s Chief Justice pressed a stockholder attorney Wednesday to justify what he termed litigation “games” that led to filing of near-clone direct and derivative lawsuits seeking damages for a $428 million payout by The Williams Cos. after abandoning a merger in 2015.

  • December 6, 2017

    Broker, SEC Settle Suit Over Unregistered PE Fund

    A former Houston-based financial adviser who ran a branch office for a registered brokerage firm on Wednesday settled fraud allegations leveled by the U.S. Securities and Exchange Commission in a suit in Texas federal court alleging he misled investors while raising $860,000 for a fund with no connection to the firm for which he worked.

  • December 6, 2017

    SEC Reinstates Former Dell CAO Barred For Cooking Books

    The U.S. Securities and Exchange Commission on Tuesday reinstated Robert W. Davis, the former chief accounting officer at Dell who was barred in 2010 from reviewing and preparing the financial statements of public companies for cooking the computer giant’s books.

  • December 6, 2017

    DeVry Ducks False Advertising Suit Over Job Placement Rates

    An Illinois federal court ruled Wednesday that DeVry University shareholders failed to sufficiently back their claims that top brass at the for-profit college intentionally lied about student outcomes, alleged misrepresentations the investors say sparked a $100 million settlement with the Federal Trade Commission that sent its stock price tumbling.

  • December 6, 2017

    Atty Says SEC Probe Can't Link Him To $30M Ponzi Scheme

    An Atlanta attorney urged a Georgia federal court Tuesday to throw out a U.S. Securities and Exchange Commission suit alleging he helped out with a Ponzi scheme that raised at least $30 million from investors, arguing that the agency has no case against him despite its “extensive investigation.”

  • December 6, 2017

    ChinaCast Settles With Creditors, Ch. 11 Plan OK'd

    ChinaCast Education Corp. is on its way out of Chapter 11 proceedings after a New York bankruptcy judge Wednesday approved the company's orderly liquidation plan and a linchpin settlement with a class of shareholders that freed up a path to plan confirmation.

  • December 6, 2017

    Hensarling Opens The Door For Housing Compromise

    A key House lawmaker on Wednesday signaled his willingness to make a deal to reshape the U.S. housing finance market and eliminate Fannie Mae and Freddie Mac, marking a potentially significant future shift in the way Americans buy their homes.

  • December 6, 2017

    Zarrab Concedes He Lied About Iran Sanctions Scheme

    Turkish-Iranian businessman Reza Zarrab told a Manhattan jury Wednesday that he was surprised to learn in March that Turkish banker Mehmet Hakan Atilla had been arrested for allegedly scheming to violate U.S. sanctions against Iran and said also that he lied to Atilla about the scheme prior to his own arrest last year.

  • December 6, 2017

    US Firms Must Beware New EU Investment Disclosure Laws

    The extraterritorial reach of new European financial regulation again threatens to impact the U.S. and other foreign markets as incoming disclosure requirements for specialized financial products can apply much further afield, lawyers warn.

  • December 5, 2017

    Calif. Statute Of Limitations Sinks Deutsche Bank RBMS Suits

    A New York state appeals court has sunk two suits brought by Deutsche Bank National Trust Co. over thousands of allegedly defective loans in two residential mortgage-backed securities trusts it oversees as trustee, concluding Tuesday that its remaining breach-of-contract claims against Barclays PLC and HSBC were brought too late under its home state’s statute of limitations.

  • December 5, 2017

    Profs Fight For Clarity On Class Cert. In Securities Suits

    Two well-known law professors on Monday urged the U.S. Supreme Court to provide clarity on the standard for certifying securities fraud class actions, joining Petrobras in its bid to have the justices review the certification of a class of investors who claim the oil giant committed fraud by concealing information about a massive kickback scheme.

  • December 5, 2017

    SEC 'Extremely Concerned' About Woodbridge Ch. 11 Case

    The U.S. Securities and Exchange Commission made its presence felt Tuesday during the first-day bankruptcy hearing for real estate development firm the Woodbridge Group of Companies LLC, with its attorney saying it was “extremely concerned” about the Chapter 11 case and whether the debtor was operating a fraudulent scheme.

  • December 5, 2017

    Investors Say AmTrust's Reported Metrics Weren't Opinions

    Investors in insurer AmTrust Financial Services Inc. have pushed back against bids to dismiss their proposed class action stemming from accounting problems that led the company to restate a number of its quarterly and annual results earlier this year, telling a New York federal court the company can’t claim its allegedly misstated financial metrics were just opinions.

  • December 5, 2017

    SEC Atty Joins Perkins Coie In Calif. As Partner

    Perkins Coie LLP added a U.S. Securities and Exchange Commission attorney to its San Francisco office as a partner with a focus on blockchain technology, the firm announced Monday.

  • December 5, 2017

    Overseas Tipster Nets $4.1M SEC Whistleblower Award

    The U.S. Securities and Exchange Commission on Tuesday said it would be paying out $4.1 million to an overseas tipster who helped the agency bust vast and long-running securities violations at their former company.

  • December 5, 2017

    ITT Educational Execs Can't Ditch Investor Fraud Row: SEC

    The U.S. Securities and Exchange Commission on Monday fired back at a bid by two former executives of bankrupt ITT Educational Services Inc. to toss allegations that they hid widespread student loan defaults from investors, saying there is plenty of evidence to take to a jury beyond allegedly misleading statements.

  • December 5, 2017

    Dodd-Frank Rollback Bill Moves Out Of Committee Unchanged

    A Senate panel on Tuesday advanced a bipartisan package of changes to the Dodd-Frank Act, rejecting a slew of amendments from more liberal Democrats that could have altered the delicate framework that allowed lawmakers from both parties to produce the compromise bill.

  • December 5, 2017

    2nd Circ. Revives Alibaba Securities Class Action Over IPO

    The Second Circuit on Tuesday reinstated a putative securities class action against Alibaba Group Holding Ltd. and several executives after finding that a lower court judge improperly dismissed the suit tied to the company's $25 billion initial public offering.

  • December 5, 2017

    Investor Sues HIG, Bain Capital Over $760M Facility Deal

    A Surgery Partners Inc. shareholder on Monday told the Delaware Chancery Court that Bain Capital Private Equity was allowed to work both sides of a deal and get favorable terms to finance the $760 million acquisition of a surgery facility owner this year.

Expert Analysis

  • From Snaps To Tweets: The Craft Of Social Media Discovery

    Matthew Hamilton

    Courts have consistently held that social media accounts are subject to established discovery principles but are reluctant to allow parties to rummage through private social media accounts. Recent case law confirms that narrowly tailored information requests get the best results, say Matthew Hamilton, Donna Fisher and Jessica Bae of Pepper Hamilton LLP.

  • What A Solar Eclipse Has To Do With Market Efficiency

    Daniel Bettencourt

    A common criticism of the event study methodology for testing market efficiency is that the number of events is insufficient and that the results cannot be generalized for the entire class period. That's where Albert Einstein and the 1919 total solar eclipse come in, say Daniel Bettencourt and Steven Feinstein of Crowninshield Financial Research.

  • An Interview With Former DHS Secretary Jeh Johnson

    Randy Maniloff

    Jeh Johnson, the former secretary of homeland security, was kind enough to let me visit him to reflect on his diverse career. He told stories that left me speechless. And yes, the man who was responsible for the Transportation Security Administration removed his shoes when going through airport security. You bet I asked, says Randy Maniloff of White and Williams LLP.

  • MiFID II Research Unbundling — Crisis Averted?

    Rob Moulton

    Recent guidance from key securities regulators on both sides of the Atlantic reflects a coordinated effort to address the incompatibilities between the U.S. regulatory regime and the European Union's new MiFID II rules on research unbundling. However, that the problem arose at all points to a much larger issue, say attorneys with Latham & Watkins LLP.

  • Why Securities Lawyers Are The New Employment Lawyers

    Christopher Regan

    Whistleblower retaliation claims have a unique securities law slant and involve sensitive, unresolved areas that should cause all stakeholders to consider whether the typical employment lawyer is equipped to handle these cases, say attorneys with Buckley Sandler LLP.

  • Series

    Judging A Book: Gilstrap Reviews 'Alexander Hamilton'

    Judge Rodney Gilstrap

    While Alexander Hamilton is the subject of a hit Broadway musical and renewed biographical examinations, professor Kate Brown takes us down a road less traveled in her book "Alexander Hamilton and the Development of American Law" — showing Hamilton as first, last and foremost an American lawyer, says U.S. District Judge Rodney Gilstrap of the Eastern District of Texas.

  • ICO Token Purchasers May Be Entitled To A Refund

    John Reed Stark

    Purchasing an investment is not like buying a pair of shoes at Zappos. You can’t return the investment for a refund if you don’t like the fit — unless you bought tokens in an initial coin offering, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • The Case For Creating A Mediation Department At Your Firm

    Dennis Klein

    There are at least four reasons supporting the need for some form of a mediation group within a law firm, especially in firms with larger practices, according to Dennis Klein, owner of Critical Matter Mediation and former litigation partner at Hughes Hubbard & Reed LLP.

  • A New, Relaxed Standard For Class Cert. In Securities Cases

    Brian Headshot.jpg

    After the Second Circuit’s decision last week in Waggoner v. Barclays, it should be easier for securities fraud plaintiffs to win class certification when their cases involve securities that are not listed on national exchanges, says Brian Lehman of The Lehman Law Group.

  • Intermediate Transfers May Be Safe From 546(e) Safe Harbor

    Meaghan Gragg

    In Merit Management v. FTI Consulting, the U.S. Supreme Court is reviewing the Seventh Circuit’s decision that the Section 546(e) safe harbor does not protect from avoidance a transfer that is conducted through a financial institution where the institution acts merely as a conduit. Based on the justices’ questions at oral argument last week, the odds are good that the Supreme Court will agree with the Seventh Circuit, says Meaghan ... (continued)