Securities

  • October 10, 2017

    Bear Stearns Seeks 3rd Circ. Halt To FINRA Claim's Arbitration

    Bear Stearns & Co. Inc. urged the Third Circuit to reverse a Pennsylvania district judge’s order compelling arbitration in a securities case brought by Reading Health System, arguing Tuesday that the parties agreed any disputes would be hashed out in court.

  • October 10, 2017

    Justices Deny Ex-Stanford Advisers' Arbitration Appeal

    The Supreme Court on Tuesday denied a petition from former financial advisers seeking to force arbitration from an alleged $7 billion Ponzi scheme run by R. Allen Stanford, turning down their bid to force arbitration with the funds receiver over $215 million.

  • October 10, 2017

    No-Show Suspended Atty Ordered To Pay $350K In SEC Case

    A noted patent lawyer from Texas who was accused by the U.S. Securities and Exchange Commission of scheming to steal from small business escrow accounts was ordered to pay $350,000 by a New York federal judge on Friday after he failed to contest the government’s claims.

  • October 10, 2017

    Wilmington Trust Pays $44M To Settle Securities Case

    Wilmington Trust Corp. agreed to settle a more than two-year federal criminal securities fraud prosecution Tuesday, accepting a $44 million civil fine in Delaware federal court shortly before the start of a jury trial on claims that the bank concealed hundreds of millions in bad commercial loans in 2009 and 2010.

  • October 10, 2017

    Russia Fights US Bid For Bitcoin Fraud Suspect

    Russia has said that it will challenge a Greek court’s decision to extradite to the U.S. a suspected Russian money launderer accused of handling billions of dollars in illegal payments, arguing that the ruling is a violation of international law.

  • October 10, 2017

    Ex-Dewey CFO Dodges Prison Time For Fraud Scheme

    Former Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders on Tuesday was sentenced to community service and ordered to pay a $1 million fine following his conviction on fraud and conspiracy charges for what prosecutors say was a scheme to con the firm's financial backers before the firm collapsed.

  • October 6, 2017

    HSBC FX Exec Said 'I Think We Got Away With It,' Jury Hears

    Jurors in the trial of former HSBC foreign currency exchange executive Mark Johnson on Friday heard nearly 20 recorded phone calls surrounding a $3.5 billion forex deal that prosecutors say defrauded oil and gas developer Cairn Energy PLC, with Johnson saying at one point, “I think we got away with it.”

  • October 6, 2017

    PacWest Pays $1.75M Over Campaign-Treasurer Theft Claims

    Pacific Western Bank has paid $1.75 million to resolve federal allegations that a bank it acquired had facilitated an embezzlement scheme by a Democratic operative a prosecutor once described as "the Bernie Madoff of campaign treasurers."

  • October 6, 2017

    Reg A+ 'Mini-IPOs' Make Headway With Small Companies

    Long an afterthought in the scheme of capital-raising options, Regulation A offerings are beginning to find favor with issuers as an alternative route to public markets often described as mini-IPOs, two years after new rules expanding their benefits took effect.

  • October 6, 2017

    Performance Sports Investor Slams Bid To Ax Its Ch. 11 Claim

    The lead plaintiff in a securities fraud case against bankrupt Performance Sports Group accused the company’s Delaware Chapter 11 equity committee Thursday of seeking to “eviscerate” a preemptive bankruptcy-recovery claim by the proposed class.

  • October 6, 2017

    SEC Settles With Estate Of 'Extreme' Day Trader For $4.6M

    The estate of a Michigan man who marketed an “extreme day trading” investment program has agreed to a nearly $4.6 million final judgment to settle the U.S. Securities and Exchange Commission’s claims that he defrauded scores of investors.

  • October 6, 2017

    Ex-Autonomy CFO Bids To Ditch Fraud Charges Over HP Deal

    Autonomy Corp.’s former chief financial officer asked a California federal judge Friday to dismiss criminal charges that he misrepresented the British software company's worth when Hewlett-Packard Co. acquired it for $11 billion, saying federal securities and wire fraud charges couldn’t apply to his conduct in the United Kingdom.

  • October 6, 2017

    Judge Unlikely To Dismiss Ex-Katten Atty Conspiracy Count

    A New York federal judge on Friday said she was not inclined to dismiss a conspiracy count against a former Katten Muchin Rosenman LLP attorney despite the fact Martin Shkreli, the leader of the alleged conspiracy, was acquitted on that charge.

  • October 6, 2017

    LendingClub Investors Fight Class Cert. Objectors

    A proposed class of investors suing LendingClub Corp. over the alleged hiding of defective internal controls asked a California federal judge on Thursday to ignore a bid by objectors fighting certification of the class, saying the objectors are just trying to become the lead plaintiffs in the case.

  • October 6, 2017

    Convicted Ex-SAC Manager Asks Full 2nd Circ. For Rehearing

    Former SAC Capital insider trader Mathew Martoma urged the full Second Circuit on Friday to rehear his appeal after a split appeals court panel upheld his conviction for insider trading, arguing that the panel overruled its own precedent and replaced it with a test that dramatically departs from Supreme Court rulings.

  • October 6, 2017

    SEC Says Atlanta Atty Participated In $30M Ponzi Scheme

    An Atlanta attorney was an “active participant” in a Ponzi scheme that raised at least $30 million from more than a hundred investors, according to a suit filed in Georgia federal court by the U.S. Securities and Exchange Commission.

  • October 6, 2017

    Judge Sits Out Discovery Row In MarkitSERV Suit, For Now

    MarkitSERV Ltd. and the financial technology company accusing it of monopolizing the market for interest rate swap trade processing services have been told by a New York federal judge that they should take some more time to work out their discovery dispute over trading data before he’ll intervene.

  • October 6, 2017

    Wilmington Trust Judge Rejects Bank Doc Tiff Trial Delay

    A federal judge in Delaware on Friday rejected Wilmington Trust Corp’s call to postpone Tuesday’s scheduled start of the bank’s criminal securities fraud trial due to undelivered Federal Reserve Board documents, saying the court and parties can work around delayed receipt.

  • October 6, 2017

    Perfumania Ch. 11 Plan Confirmed Without Equity Committee

    Bankrupt perfume retailer Perfumania received court approval Friday in Delaware for its proposed Chapter 11 plan that will take the company private while closing underperforming stores after a judge declined to appoint a committee of equity security holders in the case.

  • October 6, 2017

    Benefits Portal Biz Wants Derivative Suit Cut Short

    A Massachusetts lawyer and his father-client are using a federal suit, recently filed amid a protracted battle for control of an internet employee-benefits company, as “leverage” against a $1.5 million verdict springing from the same dispute, the company's executives said Thursday.

Expert Analysis

  • Equifax Brings Early Lessons On Insider Trading Policies

    Gary Tygesson

    Insider trading allegations have surfaced at Equifax, where three executives sold nearly $2 million in shares of the company’s stock days after the cyberattack was discovered but before the news was announced. The situation raises a number of fundamental questions about Equifax’s insider trading policy, say Gary Tygesson and Cam Hoang of Dorsey & Whitney LLP.

  • In 9th Circ., Facts Can Doom Forward-Looking Statements

    Nathaniel Cartmell III

    The Private Securities Litigation Reform Act protects “forward-looking statements,” but what if a prediction is presented with, and based upon, statements of current fact? New opinions from the Ninth Circuit suggest that such juxtaposing has become risky, say Nathaniel Cartmell III and Bruce Ericson of Pillsbury Winthrop Shaw Pittman LLP.

  • A Guide To The Executive Branch Official Nomination Process

    Adam Raviv

    Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.

  • The Equifax Data Breach And Its Impact On Businesses

    Eduard Goodman

    The Equifax breach could trigger a shift in data breach class actions from potential harm to consumers to potential harm to businesses, says Eduard Goodman, chief privacy officer at CyberScout LLC.

  • What Libor Replacement Will Mean For Derivatives

    Mark Young

    The increasing attention to Libor's phaseout is sending a strong signal to derivatives markets and derivatives market participants to prepare for this major financial change. The phaseout will also raise intriguing regulatory issues, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • How Trulia Continues To Affect M&A Litigation

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    The M&A litigation landscape was dramatically altered by the Delaware Chancery Court’s 2016 decision in Trulia. Here, Dan Toal and Geoff Chepiga of Paul Weiss Rifkind Wharton & Garrison LLP discuss the evolving impact of the case and what companies can expect when facing stockholder challenges.

  • 2 Cases Clarify Dodd-Frank Whistleblower Protections

    Harini Srinivasan

    Recent decisions in Reyher v. Grant Thornton and Boyle v. Evolve Bank indicate that courts are not persuaded by whistleblowers' arguments that defendants or their publicly traded clients are generally covered by the Dodd-Frank Act, says Harini Srinivasan of Katz Marshall & Banks LLP.

  • Founders Find Leverage In Investors’ Short Memories

    Les Trachtman

    The only rationale for why the capital markets have succumbed to the trendy scheme of dual-class stock is that economist John Kenneth Galbraith was right — when it comes to financial markets, we do have short memories. History is littered with well-meaning founders and chief executives who succumbed to the seduction of wealth and power, says Les Trachtman, CEO of The Trachtman Group.

  • Ransomware Issues Too Often Lost In The Shuffle: Part 2

    John Reed Stark

    Notification responsibilities relating to a ransomware attack can become complicated and may not precisely align with other cybersecurity-related notification obligations and triggers, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • Charting A Course To Business Judgment Review

    Stacy Nettleton

    The Delaware Chancery Court’s recent decision to dismiss a shareholder suit challenging the sale of Martha Stewart Living Omnimedia confirms that there is a path to business judgment rule review, at the pleading stage, of third-party mergers of controlled companies where disparate consideration creates a conflict for the controlling stockholder, say Stacy Nettleton and Christie Di Guglielmo of Weil Gotshal & Manges LLP.