• March 8, 2018

    7th Circ. Won't Undo Ex-CEO's $9M Fraud Conviction

    The Seventh Circuit Thursday upheld the conviction of the CEO of an Illinois company on charges he defrauded investors of $9 million with false promises he was on the verge of sealing government contracts for biological weapon detection technology.

  • March 8, 2018

    Speedy Class Cert. Rejected In Patriot National Ch. 11

    A Delaware bankruptcy judge rejected a request Thursday for a short-notice hearing on certification of a shareholder claim class in Patriot National Inc.’s Chapter 11, saying the issue was complex and the risks from following regular timetables were limited.

  • March 8, 2018

    9th Circ. Won't Revive Tesla Solar Unit Investor Suit

    The Ninth Circuit on Thursday backed a lower court's dismissal of a proposed shareholder class action against Tesla Inc.'s rooftop solar unit, saying investors hadn't done enough to show the company intentionally overstated its profits by $23 million in 2012.

  • March 8, 2018

    Facing Contempt, Law Firm Founder Drops Bankruptcy

    A law firm founder facing an $18 million judgment over the marketing of mortgage relief legal services was punished Thursday by a California federal judge for filing a bankruptcy to keep assets away from a receiver tasked with recovering funds, the same day he relented and dismissed the bankruptcy.

  • March 8, 2018

    Marijuana Magnate's Assets Frozen In $7M SEC Suit

    A Colorado federal judge on Thursday agreed to freeze over $3 million of medical marijuana magnate Jeffrey Friedland’s assets in light of the U.S. Securities and Exchange Commission’s lawsuit accusing him of illicitly making $7 million for touting a marijuana-based pharmaceutical company’s stock.

  • March 8, 2018

    Senate Banking Debate Stalls Vote On Regulation Rollbacks

    The Senate gave up on voting this week on a rollback of some Dodd-Frank Act financial regulations, after both sides Thursday could not reach an agreement on which of the more than 100 amendments to the bill they would vote on.

  • March 8, 2018

    'Wolf Of Wall Street' Film Co. To Pay $60M To End 1MDB Probe

    A California federal judge signed off on a $60 million settlement between the U.S. government and production company Red Granite Pictures Inc. on Thursday, closing out the first two cases in the government’s sprawling probe into billions stolen from Malaysian sovereign wealth fund 1Malaysia Development Bhd.

  • March 8, 2018

    Citigroup Investors Say New Fines Should Revive Del. Suit

    Shareholders of Citigroup Inc. told a Delaware Chancery Court judge on Thursday that they should be allowed to amend their previously dismissed derivative suit against the bank's directors in light of a $70 million civil penalty imposed by the federal government for continued failures to comply with regulations.

  • March 8, 2018

    SEC Committee Wants More Disclosure On Dual-Class Shares

    A Securities and Exchange Commission advisory committee on Thursday endorsed a policy recommendation that demands public companies with multiclass stock structures provide their shareholders with better disclosure about the ramifications of such setups, which reserve outsize voting power for company insiders.

  • March 8, 2018

    Blackhawk Left Out Key Info In $3.5B Sale, Investor Says

    A pair of private equity firms should not be allowed to go forward with their $3.5 billion proposal to buy gift card provider Blackhawk Network Holdings because important financial information about the deal was omitted, a shareholder has alleged in California federal court.

  • March 8, 2018

    11th Circ. Urged To Rethink CFTC Award In Metals Fraud

    Two Florida-based precious metals trading companies and their CEO want rehearing of their appeal of a judgment for the U.S. Commodity Futures Trading Commission, saying an Eleventh Circuit panel upheld $1.5 million of the original $2.1 million damages award based on a mischaracterization of the transactions.

  • March 8, 2018

    Investors Fight BNY Mellon Bid To Trim ADR Investor Claims

    Investors accusing the Bank of New York Mellon of overcharging holders of American depositary receipts for converting their foreign-currency dividends into U.S. dollars pushed back Wednesday on the bank’s bid to pare down their suit on timeliness grounds, telling a New York federal court that it’s too soon to say some of the suit’s claims are too late.

  • March 8, 2018

    Investor Hits Dental Supplier With Suit Over Antitrust Case

    An investor in Henry Schein Inc. filed suit in New York federal court on Wednesday alleging the dental supply company and its executives artificially inflated its stock price by concealing a scheme with other suppliers to deny discounts to certain buying groups.

  • March 8, 2018

    Judge 'Shocked' By $16M Atty Fee Bid In LendingClub Deal

    A California federal judge said he was “shocked” attorneys want $16 million for representing LendingClub Corp. investors in two securities class actions against the peer-to-peer lending company, telling the plaintiffs’ lawyers at a hearing Thursday they “may be being greedy” by asking for that much of the $125 million settlement.

  • March 8, 2018

    Ply Gems Hiding Facts On $2.4B Sale, Shareholder Alleges

    An investor in construction product maker Ply Gems Holdings Inc. says in a suit filed Tuesday in Delaware Chancery Court that shareholders are not getting the whole story behind the company’s pending $2.4 billion sale to private equity firm Clayton Dubilier & Rice LLC.

  • March 8, 2018

    Man Charged With Posing As SEC Brass Indicted

    A man was indicted Wednesday in Massachusetts federal court on wire fraud and money laundering charges for his alleged role in a scheme to defraud dozens of investors by charging fees and penalties while impersonating U.S. Securities and Exchange Commission officials.

  • March 8, 2018

    American Realty Ex-CFO Seeks To Nix REIT Fraud Conviction

    The former chief financial officer of American Realty Capital Properties Inc. urged the Second Circuit on Wednesday to reverse his fraud conviction, saying prosecutors had not proved he made false statements when reporting a financial metric unique to real estate investment trusts.

  • March 8, 2018

    BioCryst Shareholders Sue Over Idera Merger Plan

    BioCryst Pharmaceuticals Inc. and its board of directors have undervalued the biotechnology company by agreeing to a “merger of equals” with Idera Pharmaceuticals Inc., a shareholder says in a proposed class action filed this week in Delaware federal court.

  • March 8, 2018

    Investors Seek Cert. In RMBS Suit After Deutsche 'Smears'

    Two investors alleging Deutsche Bank AG didn’t disclose risks related to residential mortgage-backed securities are asking a New York federal judge to disregard the bank’s “latest smears” and appoint them as lead plaintiffs in their proposed securities class action.

  • March 8, 2018

    Oceanwood Wins Right To Instruct Citi Over €290M Securities

    The U.K. High Court said Thursday that Oceanwood Opportunities Master Fund has the right to instruct Citibank over how to dispose of €290 million ($357 million) of debt securities issued by a Norwegian paper mill, finding the investor did not control the company despite holding most of the debt.

Expert Analysis

  • Your Case Was Remanded By The MDL Court — Now What?

    Brandon Cox

    Multidistrict litigation is an ever-expanding driver of product liability litigation, but when the MDL process runs its course there is often still a trial to be had, and there are strategic and practical decisions to consider once a case has been remanded. Brandon Cox and Charissa Walker of Tucker Ellis LLP offer tips on how to navigate the remand process.

  • The Art Of The Litigation Funding Deal

    Julia Gewolb

    As litigation funding becomes more widespread, greater complexity and variability in funding deals are to be expected. All claimants should consider certain key questions on the economics of single-case funding when considering or comparing funding terms, says Julia Gewolb of Bentham IMF.

  • Pitfalls Of Voluntary Remediation By Investment Firms

    Robin Bergen

    With the U.S. Securities and Exchange Commission recently signaling that the asset management industry is a key priority, firms must consider voluntary remediation as part of any strategy for managing regulatory exposure. But remedial measures should be carefully tailored to avoid new problems, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Power, Corruption And Lies: How Juries Are Responding

    Melissa Gomez

    The American public increasingly perceives that powerful people and institutions use their authority in selfish ways. And in the courtroom, jurors are homing in on where the power lies in a case story, and how that power is used. Those of us in litigation must heed the messages jurors are sending, says Melissa Gomez of MMG Jury Consulting LLC.

  • Smart Contracts Need Smart Corporate Lawyers

    Matthew O’Toole

    Given the operational and security risks involved, and the substantial digital asset values transacted, the rise of distributed ledger technology and smart contracts will create new opportunities and responsibilities for transactional lawyers, say attorneys with Potter Anderson Corroon LLP.

  • Reflections On 2017 FCPA Enforcement

    Mark Mendelsohn

    Despite significant Foreign Corrupt Practices Act enforcement activity in 2017, the Trump administration’s approach remains elusive and not readily characterized. The manner in which investigations are resolved in the coming year may help illuminate whether the current government will be more lenient toward U.S. companies than the Obama administration, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • How To Fix Your Broken Client Teams

    Mike O'Horo

    Law firms claim they create client teams to improve service. Clients aren’t fooled, describing these initiatives as “thinly veiled sales campaigns.” Until firms and client teams begin to apply a number of principles consistently, they will continue to fail and further erode clients’ trust, says legal industry coach Mike O’Horo.

  • Notable Trends In Foreign Securities Litigation

    Mark Willis

    In recent years, investors have been successful in securing significant recoveries overseas through group actions despite the fact that U.S.-style, opt-out class actions do not exist in most foreign forums. With the foreign securities litigation field now bustling, investors will increasingly need to navigate potential pitfalls, say Mark Willis and Rachel Avan of Labaton Sucharow LLP.

  • 10 Highlights From FINRA’s 2018 Priorities Letter

    Emily Gordy

    The Financial Industry Regulatory Authority's annual regulatory and examination priorities letter is a road map to areas on which FINRA will focus in the coming year. Firms must use this information to assess strengths, identify gaps and shore up weaknesses, says Emily Gordy, a partner at McGuireWoods LLP and a former senior vice president at FINRA.

  • Del. Walmart Ruling Might Bring New Derivative Strategies

    Jonathan Richman

    The Delaware Supreme Court's recent decision in a Walmart derivative suit should enhance defendants' ability to obtain dismissal of duplicative derivative actions on preclusion grounds. The ruling might also cause plaintiffs to take steps to appear in multiple forums to avoid preclusion risks, says Jonathan Richman, co-head of the securities litigation group at Proskauer Rose LLP.