Securities

  • May 17, 2017

    Texas Panel Wrestles With Paxton Prosecutor Pay Challenge

    In a vigorous oral argument Wednesday, a Texas appellate court again wrestled with a real estate developer’s claim that special prosecutors in the felony securities fraud case against Texas Attorney General Ken Paxton are being unlawfully overpaid.

  • May 17, 2017

    SEC Rethinking Approval Of Leveraged ETFs

    The U.S. Securities and Exchange Commission has decided to reconsider a staff decision approving quadruple-leveraged exchange traded funds, according to media reports, potentially pulling back on the most highly leveraged ETFs approved for U.S. markets.

  • May 17, 2017

    Shkreli Loses Bid To Suppress Docs In Securities Fraud Case

    A New York federal judge on Tuesday refused a bid by former pharma executive Martin Shkreli to suppress evidence from his securities fraud trial related to his former hedge funds given to prosecutors by drugmaker Retrophin Inc., finding that Shkreli’s Fourth Amendment rights were not violated.

  • May 17, 2017

    Ex-US Atty Committed Misconduct With Office Romance: DOJ

    A retired U.S. attorney engaged in misconduct by having a romantic relationship with a subordinate, and the subordinate failed to disclose a spouse’s stock trades, the Justice Department’s Inspector General said Tuesday.

  • May 17, 2017

    Class Seeks Supplement OK In FXCM Chancery Breach Suit

    Attorneys for directors of foreign exchange broker FXCM Inc. disputed proposed additions Wednesday to an investor class complaint accusing the board of fiduciary breaches, waste and other failings, telling a Delaware Chancery Court that rules governing the fully briefed and pending dismissal motion bar the changes.

  • May 17, 2017

    Player In $3B TelexFree Scam Settles With SEC For $1.8M

    A player in the TelexFree LLC pyramid scheme agreed Wednesday to cough up more than $1.8 million to settle a Massachusetts federal suit by the U.S. Securities and Exchange Commission accusing him of securities fraud in promoting what the agency called “an elaborate Ponzi and pyramid scheme.”

  • May 17, 2017

    FINRA Fines Merrill Lynch Over Customer Trade Prices

    The Financial Industry Regulatory Authority said it has fined Merrill Lynch for allegedly failing to obtain the best price for customers on thousands of manually executed trades and failing to keep accurate records of the trades, among other violations.

  • May 17, 2017

    'Hamilton' Ponzi Fraud Defendant Gets November Trial Date

    A Manhattan federal judge set a brisk timetable Wednesday to try accused fraudster Joseph Meli, who was arrested in January for a ticket resale fraud tied to the Broadway hit "Hamilton," along with a co-defendant who is charged in a related fraud.

  • May 17, 2017

    Fiat Chrysler Says Fudged Sales Figure Claims Fall Short

    Fiat Chrysler Automobiles NV urged a Michigan federal court on Wednesday to toss a proposed class action accusing the automaker and its executives of inflating its monthly vehicle sales figures, saying that the investors behind the securities fraud suit have made weak and implausible allegations.

  • May 17, 2017

    SEC Warns Firms To Beef Up Security After Cyberattacks

    The U.S. Securities and Exchange Commission on Wednesday urged broker-dealers, investment advisers and investment companies to make sure they’re conducting vulnerability scans and implementing timely system upgrades in light of the massive cyberattack that swept across more than 100 countries.

  • May 17, 2017

    Future CFTC Chair Announces New Tech Initiative

    Acting U.S. Commodity Futures Trading Commission Chairman J. Christopher Giancarlo, currently awaiting confirmation as the agency’s permanent chair, announced Wednesday a new initiative to help the agency catch up and respond to rapidly transforming digital markets.

  • May 17, 2017

    Recalcitrant Hedge Fund Boss's Passport Released By Court

    Former hedge fund boss Chetan Kapur is out of a New York City jail for contempt of two fraud judgments valued at about $10 million, and his Indian passport was released Wednesday, but a court filing also showed the recalcitrant judgment debtor was being held on an immigration detainer.

  • May 17, 2017

    Bipartisan Bill Again Calls For Transparency In Settlements

    Democratic U.S. Sen. Elizabeth Warren and Republican U.S. Sen. James Lankford on Tuesday reintroduced legislation requiring greater transparency of settlements companies and individuals enter into with federal agencies, including a disclosure of tax deductible amounts or other credits that affect the actual dollar figure.

  • May 17, 2017

    German Prosecutors Probe VW Execs In Emissions Scandal

    German prosecutors said on Wednesday that they were investigating the current chief executive of Volkswagen, Matthias Müller, as well as his predecessor and the automaker’s chairman on suspicions of market manipulation related to the emissions-cheating scandal that burst in the fall of 2015.

  • May 17, 2017

    Oil Driller Sucking Fund Into 'Death Spiral,' Judge Told

    A fund that lent money to oil and gas driller Camber Energy Inc. only to be sued for converting its debt into Camber stock asked a Texas federal judge on Tuesday to give the fund a way to sell the shares before Camber’s “death spiral” whittles the stock price even further.

  • May 17, 2017

    Senate Bill Would Ease Stress Testing For Small Banks

    A bipartisan Senate bill introduced Wednesday would eliminate stress testing requirements on smaller banks by lifting the threshold for mandating those tests of banks' ability to survive a crisis to $50 billion.

  • May 17, 2017

    Jive Software's $462M Sale Undervalues It, Investors Say

    A proposed class of Jive Software Inc. shareholders filed suit in California federal court Tuesday to challenge the business communications company’s $462 million sale to ESW Capital LLC affiliate Wave Systems, claiming investors are being shortchanged by the deal.

  • May 17, 2017

    Snap Hit With Investor Suit Claiming Misleading Metrics

    An investor in Snap Inc. hit the social media company and its senior officers with a proposed class action in California federal court on Tuesday, claiming that the registration statement for the company’s $3 billion initial public offering contained misleading information about Snap’s user growth.

  • May 17, 2017

    Bernstein Litowitz Bumps Motley Rice In Wells Fargo Case

    An asset management company heading a proposed securities class action alleging that Wells Fargo misrepresented its cross-selling activities has asked a California federal judge for permission to replace Motley Rice LLC with Bernstein Litowitz Berger & Grossmann LLP as lead counsel.

  • May 16, 2017

    SEC Pursuing MBS Traders Despite Prosecutors’ Early Flop

    The U.S. Securities and Exchange Commission’s civil case against two former traders alleging they lied to customers about prices for mortgage-backed securities is the second such case the agency has brought in two weeks, a sign it is forging ahead on bond cases while federal prosecutors hesitate in the wake of a significant criminal trial loss.

Expert Analysis

  • Monthly Column

    Gray Matters: The Attorney-Client Team

    Robert Creo

    A 1979 study of attorney-client interactions revealed startling information: Despite years of education and training to hone their legal expertise, attorneys were not acting as independent counselors but rather allowing their clients to control them. Our experience is that this trend has accelerated, say dispute resolution experts Robert Creo and Selina Shultz.

  • Justices Skeptical Of SEC Disgorgement Without Time Limits

    Dan McCaughey

    The decision by the U.S. Supreme Court in Kokesh v. Securities and Exchange Commission could meaningfully limit the uncertainty, expense and evidentiary disadvantages faced by parties responding to SEC investigations into conduct dating back more than five years, say attorneys with Ropes & Gray LLP.

  • Litigation Finance, Big Data And The Limits Of AI

    Christopher Bogart

    Theoretically, both better data and its better use should be able to improve results in litigation, and thus help litigation financiers allocate more capital to meritorious matters. However, while big data and artificial intelligence are intriguing additions to the litigation toolkit, they are far from turning litigation finance on its head, says Christopher Bogart, CEO of Burford Capital LLC.

  • Series

    Counsel To Counsel: Mama Said There'll Be Days Like This

    Peter J. Engstrom

    It's no longer enough for law firms simply to provide expert legal advice — we are expected to mirror clients' legal, ethics and social commitments and promises. For law firm GCs, the resulting job demands seem to grow exponentially, says Peter Engstrom, general counsel of Baker McKenzie.

  • Textualism Takes Center Stage In CalPERS V. ANZ Securities

    Joel Rothman

    Arguments before the U.S. Supreme Court this week in California Public Employee Retirement System v. ANZ Securities were notable for CalPERS’ focus on appealing to the court’s textualists. The case was argued on Justice Gorsuch’s first day on the bench by two of the court’s most well-credentialed advocates, say attorneys with Mintz Levin.

  • Big Stakes In High Court’s Securities Fraud Omissions Case

    Stephen L. Cohen

    Leidos v. Indiana Public Retirement System, which the U.S. Supreme Court will hear this year, presents potentially far-reaching questions, ranging from the U.S. Securities and Exchange Commission’s role in interpreting Section 10(b) to courts’ role in creating a federal common law of disclosure duties, say Stephen Cohen and Daniel McLaughlin of Sidley Austin LLP.

  • Series

    Counsel To Counsel: A Law Firm GC's Data Protection Duties

    Thomas W. White

    Increasingly, we see companies in all industries seeking to perform various levels of due diligence on our information security defenses. We received three times as many diligence requests from clients and prospective clients in 2016 as we did in 2015. Some clients even conduct their own penetration tests, says Thomas White, general counsel of WilmerHale.

  • SEC Provides Offshore Feeder Relief, But Challenges Remain

    Mark C. Amorosi

    The U.S. Securities and Exchange Commission's recently granted no-action relief is an incremental step in reducing barriers to global distribution of U.S. registered funds and may marginally increase the use of cross-border master-feeder arrangements, say attorneys with K&L Gates LLP.

  • Series

    Counsel To Counsel: Evaluating Positional Conflicts

    Nicholas A. Gravante Jr.

    What happens when attorneys come to their general counsel’s office with knowledge of a potential positional conflict? While the inquiry will depend on the rules governing the particular jurisdiction, there are a few general questions to consider from both business and legal ethics perspectives, say general counsel Nicholas A. Gravante Jr. and deputy general counsel Ilana R. Miller of Boies Schiller Flexner LLP.

  • The 1st Case To Decline Corwin 'Cleansing'

    Gail Weinstein

    Saba Software Stockholder Litigation may be the first case in which the Delaware Chancery Court has declined to apply “cleansing” under Corwin, but the decision confirms the recent trend that Corwin cleansing of noncontroller stockholder-approved transactions is likely to be precluded only in unusual and egregious circumstances, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.