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Securities

  • August 8, 2018

    Freight Co., Investors Reach $13M Deal in Stock-Drop Suit

    UTI Worldwide Inc. and a certified shareholder class suing the logistics services provider for allegedly mischaracterizing problems with its freight forwarding system to the detriment of investors have reached a proposed $13 million settlement.

  • August 8, 2018

    SEC Told Proposed Broker Standards Fall Short

    Financial professionals, investor groups and 17 attorneys general asked the U.S. Securities and Exchange Commission to clarify and strengthen its proposal to require brokers to prioritize their clients over themselves, according to public comments submitted before an Aug. 7 deadline.

  • August 8, 2018

    Sumner Redstone Won't Be Deposed In CBS Stock Suits

    National Amusements Inc. Chairman Sumner Redstone will not be compelled to sit for a written deposition in a case over a stock dividend approved by the directors of CBS Corp., after a Delaware judge said Wednesday the interview would be too stressful for the ailing businessman.

  • August 8, 2018

    Woodbridge OK'd For $215M In Del. Ch. 11 Noteholder Loans

    Acknowledging a possible lack of precedent, a Delaware bankruptcy judge on Wednesday approved procedures for “distressed lending” to alleged Ponzi scheme noteholders trapped in The Woodbridge Group LLC Chapter 11, with up to $215 million in note-backed loans possible.

  • August 8, 2018

    Tableau Officers Reaped $300M Before Stock Drop, Suit Says

    An investor filed a derivative complaint in Delaware federal court Tuesday against Tableau Software Inc. company officers, claiming they downplayed the impact of competitor software while they conspired to gain about $300 million in financial benefit from insider trading of artificially inflated stock.

  • August 8, 2018

    SEC Wants Discovery Deadline Extended In Mobileye Suit

    The U.S. Securities and Exchange Commission on Wednesday urged a New York federal court to set aside a magistrate judge's order refusing a discovery extension in the insider trading suit connected to Intel Corp.'s $15.3 billion purchase of Israeli tech company Mobileye NV, asking that the discovery deadline be pushed to the date of trial.

  • August 8, 2018

    Bribery Trial Judge Asks How $60K Cash Fits In 'Man-Purse'

    The Manhattan federal judge overseeing the bribery trial of former union boss Norman Seabrook was curious Wednesday about the $60,000 allegedly paid to Seabrook in exchange for a hedge fund investment, pressing a key witness on how that much cash could have been stuffed in a small-sized “man-purse.”

  • August 8, 2018

    Nine West Creditors Seek Lenders' Info On 2014 Takeover

    Unsecured creditors of Nine West Holdings Inc. have asked the bankruptcy court to allow them to expand their probe into Sycamore Partners' 2014 takeover of the women's shoe and apparel company, saying they need to subpoena additional lenders.

  • August 8, 2018

    Seattle-Based Tech Co. Impinj Hit With Stock-Drop Suit

    Radio frequency identification systems company Impinj Inc., its CEO and chief financial officer lied to shareholders about its financial controls and an ongoing internal investigation, according to a stock-drop suit filed Tuesday in California federal court.

  • August 8, 2018

    TIAA Says It Should Be Only Lead Plaintiff In Valeant Suit

    Lead plaintiff TIAA urged a New Jersey federal judge on Tuesday to strike a brokerage firm's bid to lead a subclass of Valeant options investors in a multibillion-dollar consolidated securities class action against the pharma giant, warning that the firm's request risks splintering the suit and driving up costs for all involved.

  • August 8, 2018

    O'Melveny Guides Skyworks' $405M Avnera Acquisition

    California chipmaker Skyworks Solutions Inc., with assistance from O'Melveny & Myers LLP, has inked an agreement to buy semiconductor supplier Avnera Corp. for $405 million in cash, the companies said on Wednesday, in a deal meant to strengthen Skyworks’ wireless connectivity capabilities.

  • August 8, 2018

    SEC Delays Action On Cboe Proposal To List Bitcoin ETF

    The U.S. Securities and Exchange Commission on Tuesday delayed a decision on whether to approve a closely watched proposal by Cboe BZX Exchange Inc. to list what would be the first bitcoin-based exchange-traded fund, saying it needs more time to consider the proposal.

  • August 8, 2018

    DOJ Seeks More Info On $4.9B WestRock, KapStone Merger

    An Illinois packaging and paper company has announced that it will hand over unspecified information as part of the U.S. Department of Justice's second request for information on a $4.9 billion buyout by WestRock Co., a deal expected to boost the combined company's product portfolio and extend its geographic reach.

  • August 8, 2018

    Ex-JP Turner Trader Recorded $24M Fake Sales, SEC Says

    The U.S. Securities and Exchange Commission is accusing a former trader of now-defunct broker-dealer J.P. Turner LLP of entering more than $24 million in fictitious sales, resulting in inaccurate trading and financial records being submitted to the agency, in a lawsuit in Georgia federal court.

  • August 8, 2018

    Biotech Executive Convicted Of Fraud, Lying To Feds

    A Manhattan federal jury on Wednesday convicted biotech executive Patrick Muraca on charges of defrauding investors and lying to the FBI, rejecting his argument that he had merely been a sloppy accountant.

  • August 8, 2018

    NY Rep. Chris Collins, Family Charged With Insider Trading

    Manhattan federal prosecutors on Wednesday indicted U.S. Rep. Christopher Collins on insider trading charges, accusing the New York Republican and others of using insider information gleaned from his position on the board of an Australian biotechnology firm to avoid nearly $768,000 in losses.

  • August 7, 2018

    JP Morgan Can't Duck FINRA Arbitration, 3rd Circ. Says

    A Third Circuit panel ruled Tuesday that J.P. Morgan Securities must arbitrate a Pennsylvania health system’s claims over several pre-2008 auction rate securities offerings, finding the system hadn’t waived its right to arbitration before the Financial Industry Regulatory Authority by signing on to agreements with clauses pegging New York’s Southern District as the forum for any disputes.

  • August 7, 2018

    Ex-ConvergEx Exec Could See No Jail Time After Plea

    A former ConvergEx Group LLC executive who questioned corporate defense attorneys’ role in the government's criminal investigation into his trading practices pled guilty to one count of conspiracy on Tuesday under an arrangement that puts a no-jail sentence on the table.

  • August 7, 2018

    Pinnacle Foods Investor Challenges $10.9B Conagra Deal

    A Pinnacle Foods Inc. investor filed a putative class action in New Jersey federal court Tuesday challenging its proposed acquisition by Conagra Brands for $10.9 billion, saying that he and his fellow investors lack the information necessary to make an informed decision about whether to support the proposed merger.

  • August 7, 2018

    Cloud Computing Co. To Pay SEC $1.9M Over Revenue Flubs

    The U.S. Securities and Exchange Commission announced Tuesday that cloud computing company Ribbon Communications Inc. has agreed to pay nearly $2 million to resolve claims its former chief financial officer made misleading statements about its estimated revenue in 2015.

Expert Analysis

  • An Easier Path To Derivative Actions Against Virginia LLCs

    Sean Ducharme

    The Virginia Supreme Court recently held in Davis v. MKR Development that a member of a limited liability company is not required to first make a demand on the LLC prior to commencing a derivative proceeding if doing so would be futile. Courts must now be prepared to wrestle with arguments over whether a demand was futile, says Sean Ducharme of Hunton Andrews Kurth LLP. 

  • Myths And Facts About Using TAR Across Borders

    John Tredennick

    Many legal teams involved in cross-border matters still hesitate to use technology assisted review, questioning its ability to handle non-English document collections. However, with the proper expertise, modern TAR can be used with any language, including challenging Asian languages, say John Tredennick and David Sannar of Catalyst Repository Systems.

  • 3 Key Defense Arguments For Post-Lucia SEC Proceedings

    Andrew Morris

    The U.S. Securities and Exchange Commission’s post-Lucia problems extend beyond the practical challenge of litigating cases for a second time. The U.S. Supreme Court's decision has also set up several concrete defense arguments for respondents in SEC administrative actions, say Andrew Morris and Ben Aiken of Orrick Herrrington & Sutcliffe LLP.

  • A Torrid Pace Of Securities Suit Filings In Year’s 1st Half

    Kevin LaCroix

    A significant number of the securities class actions filed in the first half of 2018 were merger objection lawsuits, but the number of traditional filings alone was well above historical levels. If this pace continues, 2018 filings would approach last year’s elevated total, says Kevin LaCroix of RT ProExec.

  • Trends In Securities Cases Based On Antitrust Allegations

    Samuel Groner

    Increasingly, a company’s disclosure of the existence of investigations into allegedly anti-competitive conduct has triggered securities class action litigation. But recent court decisions have made clear that plaintiffs must do more than simply allege the existence of an investigation, say Samuel Groner and Andrew Cashmore of Fried Frank Harris Shriver & Jacobson LLP.

  • China Agritech's Positive Implications For Plaintiffs

    Serena Hallowell

    The U.S. Supreme Court’s reasoning in China Agritech v. Resh denies American Pipe tolling to successive class actions, but plaintiffs seeking to bring securities actions need not despair. Several aspects of the decision, and Justice Sonia Sotomayor’s concurrence, confirm plaintiffs’ rights in key areas, say attorneys with Labaton Sucharow LLP.

  • The Applicability Of FOIA To Monitorship Documents

    Abena Mainoo

    The long-running litigation related to Siemens’ 2008 Foreign Corrupt Practices Act plea agreement, and a D.C. federal court’s recent decision, highlight the complexity of determining whether sensitive information that companies provide to compliance monitors is exempt from disclosure under the Freedom of Information Act, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Roundup

    From Lawmaker To Lawyer

    From Lawmaker To Lawyer

    Earlier this year, Rep. Trey Gowdy, R-S.C., made headlines with his decision to leave Congress and return to law. ​​In this series, former members of Congress who made that move discuss how their experience on the Hill influenced their law practice.

  • Considering The Uncertain Future Of The EB-5 Program

    Bruce Meyerson

    After multiple extensions, the EB-5 visa program is set to expire on Sept. 30. The uncertainty of the program's future and proposed changes to minimum threshold investments have led developers to increase their fundraising efforts prior to the deadline, and they may cut back on use of EB-5 funds going forward, say Bruce Meyerson and David Coombs of Goulston & Storrs PC.

  • Director Independence Disclosures: Be Careful What You Say

    Courtney Worcester

    Both stockholder plaintiffs and the Delaware courts are increasingly relying on company filings to assess director independence and the existence of a controlling stockholder. Companies should therefore draft independence disclosures not only to comply with the exchange rules, but also with an eye to their potential use in litigation, say attorneys with Foley & Lardner LLP.