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Securities

  • January 8, 2019

    Athenahealth Faces Shareholder Suit Over $5.7B Merger

    A proposed shareholder class action filed in Massachusetts federal court Monday asserts that a $5.7 billion plan for Veritas Capital and Elliot Management affiliate Evergreen Coast Capital to take Athenahealth private is based on misleading and inadequate financial analyses and overlooks potential conflicts of interest.

  • January 8, 2019

    Platinum Liquidators Can't DQ Curtis From Fraud Suit

    Curtis Mallet-Prevost Colt & Mosle LLP won't be disqualified — at least not yet — from defending a former Platinum Partners founder against a suit brought by the hedge fund's liquidators over an alleged $1 billion fraud, despite having represented the fund in the past, U.S. District Judge Jed S. Rakoff said Monday.

  • January 8, 2019

    Winklevoss Bros. Bitcoin Fraud Suit Survives Dismissal Bid

    A bitcoin entrepreneur and convicted felon must face fraud claims brought by Cameron and Tyler Winklevoss that he swindled the twin brothers out of millions of dollars worth of cryptocurrency, a New York federal judge ruled.

  • January 8, 2019

    Venezuela Targets US Sanctions With New WTO Case

    Venezuela has taken the rare step of challenging a slew of U.S. sanctions moves at the World Trade Organization, asserting that the White House’s blockage of its goods, services, debt and government-backed cryptocurrency are in violation of global trade rules, according to a WTO document published Tuesday.

  • January 7, 2019

    Fisker Fraud Claims Time-Barred In Ill., 7th Circ. Says

    A group of Illinois investors who say carmaker Fisker Automotive’s top shareholders duped them into buying its stock just before going bankrupt brought their claims six months too late to proceed under the state’s securities laws, the Seventh Circuit held Monday.

  • January 7, 2019

    Fla. Court Approves Condo Deal In EB-5 Fraud Suit

    A Florida federal court on Monday approved a settlement involving an office condominium owned by former ski resort owner and Miami businessman Ariel Quiros, almost a year after he settled claims lodged by the U.S. Securities and Exchange Commission that he misappropriated millions of dollars from immigrant investors.  

  • January 7, 2019

    Class Fights Early Review Of Fitbit Insider Trading Suit

    Attorneys for Fitbit Inc. stockholders on Monday opposed a company bid for an early Delaware Supreme Court challenge to a Chancery Court decision nixing the dismissal of a $386 million derivative insider trading and fiduciary breach suit against key company figures in December.

  • January 7, 2019

    Notes Trustees Seek Indemnity In IHeartMedia Ch. 11 Plan

    The indenture trustees for priority guarantee notes issued by iHeartMedia Inc. told a Texas bankruptcy court that the distressed broadcast giant should amend its pending financial restructuring plan, contending that prebankruptcy indemnity protections must be preserved.

  • January 7, 2019

    Convicted Wilmington Trust Execs Seek Bail During Appeal

    Four Wilmington Trust Corp. executives sentenced to three- to six-year prison terms in December for false reporting practices that crippled their bank sought bail pending appeal late Friday, with all raising multiple challenges to government claims they falsified past-due commercial loan status disclosures.

  • January 7, 2019

    SEC, Lender Reach Settlement On Eve Of Fraud Trial

    The U.S. Securities and Exchange Commission reached a settlement Friday with a Wall Street lending company in a suit over supposedly fraudulent securities offering documents, just one business day before a trial was set to begin, according to a New York federal judge.

  • January 7, 2019

    Chancery Issues Arrest Warrants For Chinese Tech Execs

    A Delaware Chancery judge issued arrest warrants Monday for two Chinese nationals serving as executives for ZST Digital Networks Inc. who were found to be in contempt for not complying with a series of court judgments arising from a books and records suit filed by a shareholder.

  • January 7, 2019

    Tesaro Hit With Investor Suit Over $5B Merger Deal With GSK

    A stockholder’s proposed class action against cancer drug manufacturer Tesaro Inc. and its executives has alleged in Delaware federal court that a proposed $5.1 billion merger with British pharmaceutical company GlaxoSmithKline is based on misleading financial analyses filed with the U.S. Securities and Exchange Commission.

  • January 7, 2019

    SunEdison Shareholders Win Cert. In Stock-Drop Suit

    Two pension funds suing SunEdison for failing to disclose financial problems that later led the renewable energy giant’s stock price to collapse secured class certification on Monday, after a New York federal court split the single proposed class into two separate subclasses.

  • January 7, 2019

    Ex-Georgeson Adviser Begins Retrial Amid Appeal For Others

    As three former Georgeson LLC advisers wait to see if federal prosecutors win an appeal to put them on trial a second time, one of their ex-coworkers was back in a Boston courthouse Monday as her second trial kicked off charging her with trading entertainment tickets for an early look at shareholder voting data.

  • January 7, 2019

    Attys Get $2.3M Fee For $6.9M Citigroup ERISA Class Deal

    A New York federal judge has awarded $2.3 million to the attorneys for a class of over 300,000 Citigroup Inc. 401(k) plan participants who negotiated a $6.9 million settlement in a long-running Employee Retirement Income Security Act suit in August.

  • January 7, 2019

    11th Circ. Backs $4.7M SEC Win Against Ex-Racetrack Exec

    The Eleventh Circuit on Friday backed a Florida federal judge’s decision to award the U.S. Securities and Exchange Commission a $4.7 million judgment against a former Texas racetrack executive over millions in fraudulently obtained loans, ruling the judgment was not an abuse of discretion.

  • January 7, 2019

    Madoff Aide's Initial Bid To Finish Sentence At Home Denied

    A New York federal judge on Monday denied a request from former Bernie Madoff aide Annette Bongiorno to conclude her six-year sentence for involvement in Madoff’s Ponzi scheme at home, saying she needs to ask the Bureau of Prisons first.

  • January 7, 2019

    2nd Circ. Won't Rethink Patriarch's SEC Probe Coverage Loss

    A Second Circuit panel has declined to revisit its recent decision that Axis Insurance Co. doesn't owe Lynn Tilton's Patriarch Partners LLC $5 million to cover the costs of a U.S. Securities and Exchange Commission investigation and enforcement action, according to an order filed Monday.

  • January 7, 2019

    9 Financial Firms Plan To Start New Exchange To Rival Giants

    Nine Wall Street firms on Monday said they are teaming up to launch a stock exchange billed as a low-cost alternative to dominant players such as the New York Stock Exchange and Nasdaq.

  • January 7, 2019

    Investors Slam Sidley Austin’s 'Strategic' Ponzi Case Claims

    Investors in a defunct management firm accused of operating in a Ponzi-like fashion told an Oregon federal judge Friday that third-party contribution claims filed by Sidley Austin LLP are calculated and could snarl their proposed class action alleging the law firm and others aided the scheme.

Expert Analysis

  • Opening Comments: A Key Strategic Decision In Mediation

    Jann Johnson

    Opening comments by parties in mediation that are made with the proper content and tone can diffuse pent-up emotion and pave the way for a successful resolution. But an opening presentation can do more harm than good if delivered the wrong way, say Jann Johnson and William Haddad of ADR Systems LLC.

  • 2018 In Review: Significant White Collar Developments At DOJ

    Jason Jones

    As the year comes to a close, attorneys at King & Spalding LLP look back at a few of the most notable developments at the U.S. Department of Justice, including corporate monitor guidance, a False Claims Act policy shift, foreign exchange prosecutions, cryptocurrency fraud and international cooperation developments.

  • Walters Case Commands Tougher Cure For Gov't Misconduct

    Harry Sandick

    In U.S. v. Walters, a Second Circuit panel determined last week that professional gambler William Walters was not prejudiced by repeated FBI leaks of confidential grand jury information. There is a risk that the government may draw the wrong conclusion from this decision, say Harry Sandick and Danielle Quinn of Patterson Belknap Webb & Tyler LLP.

  • Top 10 Whistleblowing And Retaliation Events Of 2018

    Steven Pearlman

    This year saw significant changes in the landscape of whistleblower and retaliation law, including a game-changing decision from the U.S. Supreme Court and the three largest bounty awards issued in the history of the U.S. Securities and Exchange Commission, say Steven Pearlman and Meika Freeman of Proskauer Rose LLP.

  • Will High Court Avoid Deadlock In Lorenzo?

    Susan Hurd

    Oral argument in Lorenzo v. U.S. Securities and Exchange Commission revealed clear divisions within the U.S. Supreme Court on the type of conduct that forms the basis of liability under Rule 10b-5, say attorneys with Alston & Bird LLP.

  • Blockvest Ruling Reminds Token Issuers To Push Back

    Michael Dicke

    Digital token issuers caught up in the onslaught of U.S. Securities and Exchange Commission investigations finally received some good news last month regarding token sales’ exposure to federal securities laws. The decision in SEC v. Blockvest is encouraging for a few reasons, say Michael Dicke and Eric Young of Fenwick & West LLP.

  • Opinion

    Why We Need Anti-Money Laundering Whistleblower Awards

    Eric Havian

    The recent Mossack Fonseca indictments and Deutsche Bank raid would not have been possible without the whistleblower behind the Panama Papers leak. But there is no incentive for rooting out the type of criminal money laundering revealed here, creating a large enforcement gap, say Eric Havian and Michael Ronickher of Constantine Cannon LLP.

  • Breaking Down SEC’s Risk-Based Exam Initiatives For Funds

    Vincente Martinez

    The U.S. Securities and Exchange Commission last month announced a series of examination initiatives focused on practices and risks relevant to mutual funds and exchange-traded funds. Attorneys with K&L Gates LLP offer takeaways for fund complexes conducting annual compliance reviews.

  • In-House Counsel’s Role As Whistleblower

    Excerpt from Lexis Practice Advisor
    Devika Kewalramani

    In-house attorneys owe a duty of confidentiality to their corporate clients and are obligated to preserve attorney-client privilege. But they are also likely to be exposed to sensitive internal issues, thereby increasing the potential for circumstances where it might be appropriate to "blow the whistle," says Devika Kewalramani of Moses & Singer LLP.

  • Assessing A New Path To Compliance For ICO Issuers

    Meagan Olsen

    The Airfox and Paragon settlements last month represent the U.S. Securities and Exchange Commission's acceptance of a new road map for initial coin offering issuers eager to remove the taint from past illegal offers. The approach is not perfect but signals a lighter regulatory construct, say attorneys with Paul Hastings LLP.