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Securities

  • October 11, 2018

    Ex-Top Feinstein Atty Joins Wiley Rein's White Collar Group

    Wiley Rein LLP has added a former assistant U.S. attorney and the former chief counsel to California Democratic Sen. Dianne Feinstein as a partner in the Washington, D.C.-based firm's white collar practice.

  • October 10, 2018

    Grant & Eisenhofer, Labaton Tapped To Lead AmTrust Cases

    A Delaware Chancery Court judge decided Wednesday that a cooperative leadership structure would be the best route forward in consolidating two shareholder complaints over a take-private transaction involving insurance service firm AmTrust Financial Services Inc., naming Grant & Eisenhofer PA and Labaton Sucharow LLP as co-lead counsel.

  • October 10, 2018

    Forex 'Cartel' Traders Cheated The Market, Jury Hears

    Using a private chatroom dubbed “the cartel,” three former foreign currency exchange traders for Barclays PLC, Citigroup Inc. and JPMorgan Chase & Co. units colluded to suppress competition in the forex market, a federal prosecutor said Wednesday as the trio's criminal forex-rigging trial began.

  • October 10, 2018

    Investor Says Teva Pharma Lied About Price-Hike Scheme

    A Swedish investment firm Wednesday accused Teva Pharmaceuticals in Connecticut federal court of lying to shareholders about an alleged scheme to pump up its share prices through a series of unsustainable price hikes that ultimately resulted in a spate of antitrust suits and the collapse of its market value.

  • October 10, 2018

    Canadian Regulators Find Pot Company Disclosures Lacking

    As marijuana-related companies migrate toward mainstream capital markets and public offerings become more common, Canadian securities regulators said Wednesday that such issuers need to improve their disclosure practices or face regulatory action.

  • October 10, 2018

    LeClairRyan Adds Cybersecurity-Focused Atty From SF Fed

    LeClairRyan has brought on an attorney from the Federal Reserve Bank of San Francisco who specializes in privacy, data security, financial services and white collar matters and litigation, the firm announced Tuesday.

  • October 10, 2018

    Essendant Sued For Scrapping Merger To Pursue Staples Deal

    Automotive and industrial parts distributor Genuine Parts Co. filed a complaint in Delaware Chancery Court on Wednesday seeking damages in connection with its terminated merger with Essendant Inc., which instead entered into a $966 million merger deal with Staples Inc. last month.

  • October 10, 2018

    Lions Gate To Settle Starz Investor Suit For $92.5M

    Lions Gate Entertainment Corp. will pay $92.5 million to former shareholders of Starz Entertainment LLC in a proposed settlement filed late Tuesday that would end a Delaware Chancery Court class action over its $4.4 billion acquisition of Starz in 2016.

  • October 10, 2018

    12 Firms Vying To Lead 9 Tesla Take-Private Tweet Suits

    Twelve law firms submitted bids in California federal court on Tuesday asking that nine securities class actions — filed against Tesla Inc. and CEO Elon Musk over his tweets about taking the company private — be consolidated and to be appointed as lead counsel.

  • October 10, 2018

    DOJ Rules Out Life Term Bids For Ex-Wilmington Trust Execs

    Federal prosecutors in Delaware reported an agreement Wednesday to scale back initial life sentence recommendations for four Wilmington Trust Corp. executives convicted of an estimated $196 million securities fraud in May, opting instead to seek prison terms topping out at 11¼ years.

  • October 10, 2018

    Investors Want Sinovac Capital Frozen Before Caribbean Trial

    Sinovac Biotech Ltd. and a wealthy Massachusetts family accused of fraudulently overthrowing the vaccine company’s board of directors bickered in U.S. court filings Wednesday over whether the company can restructure before an Antiguan judge decides if the family's coup this spring was legitimate.

  • October 10, 2018

    BioChemics Receiver Named To Help SEC Sniff Out $17M

    After dodging a $17 million payment to the U.S. Securities and Exchange Commission, BioChemics Inc. will have to deal with a court-appointed receiver empowered by a Massachusetts federal judge Tuesday with the ability to find, manage and control the biopharmaceutical company's assets in an effort to make good.

  • October 10, 2018

    Hong Kong To Penalize IPO Sponsors For 'Substandard' Work

    The Hong Kong Securities and Futures Commission is penalizing investment banks that fail to uphold standards when sponsoring initial public offerings, the agency’s enforcement director said Wednesday, and is promising additional disciplinary action until regulators see improvement.

  • October 10, 2018

    AbbVie Faces 2nd Investor Suit Over Humira Kickbacks

    AbbVie Inc. was hit with another proposed class action over its allegedly illegal strategy to market its blockbuster drug Humira, this one filed Tuesday by shareholders in Illinois federal court who say the company's misleading statements caused them huge losses.

  • October 10, 2018

    Labaton To Pay $4.8M, Accept Oversight On Fee Practices

    Labaton Sucharow LLP has apologized and will pay $4.8 million and accept oversight by a retired judge to resolve a Massachusetts federal court’s investigation into the firm's excess fees and a controversial payment to a Texas lawyer, according to Wednesday court filings. 

  • October 10, 2018

    Feds Seek 5 Years For Convicted State Street Exec

    Prosecutors called for a five-year sentence Tuesday for a former vice president of State Street Corp. convicted of overbilling clients by millions, a substantially shorter prison term than federal guidelines suggest but enough to send a message, the government said.

  • October 9, 2018

    ICOs Are Coming Of Age, Say DLA Piper, Deloitte Experts

    While some may still fear it's a fickle fad, the market for initial coin offerings is maturing and becoming more structured, financial technology and legal experts said Tuesday at a Silicon Valley conference hosted by DLA Piper.

  • October 9, 2018

    Del. Justices Uphold Toss Of Baby Formula Co. Buyout Suit

    A split Delaware Supreme Court en banc panel on Tuesday affirmed the dismissal of a shareholder suit challenging Beams Power Investment Ltd.’s $125 million buyout of baby formula maker Synutra International Inc., agreeing with the lower court that the stockholders didn't prove the deal violated laws related to controlling-party takeovers.

  • October 9, 2018

    Ex-Marks Paneth Accountant Charged In $2M IP Scheme

    Federal authorities in Florida have arrested a former Manhattan accounting firm executive on charges he defrauded investors of $2 million through a sham intellectual property company he created.

  • October 9, 2018

    NCUA Seeks Sub To Bring RMBS Suit Against Deutsche Bank

    The National Credit Union Administration has urged a New York federal judge to allow the substitution of a new plaintiff to pursue claims against Deutsche Bank National Trust Co. over a number of residential mortgage-backed securities trusts, arguing that this swap would address standing issues highlighted in a similar suit brought by the agency against U.S. Bank.

Expert Analysis

  • Examining The Role Of Market Price In Appraisal: Part 1

    Dirk Hackbarth

    Delaware Vice Chancellor J. Travis Laster recently cautioned that while courts are now giving greater deference to deal prices and market evidence in determining fair value, this approach does not elevate "market value" to the governing standard under the appraisal statute. His caveat begs at least three finance questions, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • The Courts’ Take On Obama-Era Regs: You Are Erased

    Andrew Oringer

    It is at this point axiomatic that the Trump administration is intent on reversing significant portions of the Obama administration's regulatory activity. Interestingly, it seems that courts may pose another major risk to the survival of some Obama-era initiatives, say Andrew Oringer and Samuel Scarritt-Selman of Dechert LLP.

  • There's No Such Thing As A Free Token

    Dan Nathan

    Digital tokens issued in exchange for services rather than money can still constitute a sale of securities, according to recent findings by the U.S. Securities and Exchange Commission in Tomahawk Exploration. The case represents a new application of a principle previously applied in at least three 1999 cases involving "free" securities, say Daniel Nathan and Angelo Aratan of Orrick Herrington & Sutcliffe LLP.

  • SEC Action Brings Lessons For Quantitative Fund Managers

    Brian Daly

    The U.S. Securities and Exchange Commission last week announced settlements with Aegon and several of its affiliates for alleged misconduct involving faulty quantitative investment models. The case illustrates the pitfalls of implementing an ambitious investment program poorly, say Brian Daly and Anna Maleva-Otto of Schulte Roth & Zabel LLP.

  • Good Fortune Shipping And The Withdrawn Altera Opinion

    Patrick Smith

    In the weeks since the Ninth Circuit and D.C. Circuit issued conflicting opinions in challenges to the validity of tax regulations, other developments have undercut the impact of the Ninth Circuit's Altera opinion. Meanwhile, the Good Fortune Shipping opinion's application of the reasoned decision-making standard provides a welcome addition to the body of case law, says Patrick Smith of Ivins Phillips & Barker Chtd.

  • Regulation Best Interest: The SEC Can't Please Everybody

    Mark Jensen

    The U.S. Securities and Exchange Commission has proposed a package of rules, including “Regulation Best Interest,” that is intended to raise the standard of care for investment professionals. Based on a sampling of the multitude of comments to the rule proposal, it is clear that the commission must weigh some bitterly opposed views about major details, say attorneys with Nutter McClennen & Fish LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • How Delaware Courts Are Approaching Appraisal Valuation

    Michael O'Bryan

    The Delaware Supreme Court has eschewed bright-line tests for determining the value of a company in an appraisal. Two recent Delaware Chancery Court decisions illustrate the ways that the courts are determining appraisal valuation in light of this guidance, say Michael O'Bryan and James Beha of Morrison & Foerster LLP.

  • New Pass-Through Deduction Will Pass Over Many Lawyers

    Evan Morgan

    A few weeks ago, the IRS proposed regulations related to the Tax Cuts and Jobs Act's 20 percent deduction on qualified business income for pass-through entities. The guidance offers long-awaited clarity, but is mostly bad news for many law firms, says Evan Morgan of Kaufman Rossin PA.

  • How Reckless Judicial Impeachments Threaten Rule Of Law

    Jan van Zyl Smit

    Judicial impeachment fever seems to be spreading through the states, with West Virginia legislators recently voting to remove their state's entire Supreme Court, and lawmakers in Pennsylvania and North Carolina threatening the same. These actions are a serious threat to judicial independence, says Jan van Zyl Smit of the Bingham Centre for the Rule of Law.