Securities

  • July 13, 2017

    Shkreli Like The Pied Piper, Retrophin CEO Tells Jury

    The CEO of Retrophin Inc. on Thursday told a jury at Martin Shkreli’s federal fraud trial in Brooklyn, New York, that the “visionary” pharma bro was like the Pied Piper, getting him to stay on the company’s board of directors despite his misgivings about Shkreli’s bookkeeping and honesty.

  • July 13, 2017

    Texas Sen. Taps New Attys For Securities Fraud Defense

    State Sen. Carolos Uresti, D-San Antonio, who is also an attorney, has retained additional counsel to defend him against securities fraud charges tied to a fracking sand company after a federal magistrate judge ordered his original counsel disqualified because of a conflict of interest.

  • July 13, 2017

    Investor Says AMRI’s Go-Private Deal Docs Short On Details

    A shareholder of life sciences contractor Albany Molecular Research Inc. sued the company in Delaware federal court on Thursday in a bid to halt its planned sale to two private equity firms, saying AMRI has failed to give investors crucial details ahead of a vote on the deal.

  • July 13, 2017

    NY Court Has Jurisdiction For Rate-Rigging Suit, Funds Say

    Two hedge funds told a New York federal judge in a letter Wednesday that a recent U.S. Supreme Court ruling confirms his court has personal jurisdiction to hear their proposed class action against a slew of foreign and domestic global banking giants over their alleged rigging of Singapore financial benchmarks.

  • July 13, 2017

    2nd Circ. Petrobras Ruling No Help To MBS Class, Banks Say

    U.S. Bank and Deutsche Bank told a New York federal court Wednesday that the Second Circuit’s recent decision in Petrobras investor litigation does not support Royal Park’s attempt at certifying proposed class actions over allegedly toxic mortgage-backed securities.

  • July 13, 2017

    Tidewater Wins OK For Ch. 11 Plan To Rework $2B In Debt

    Tidewater Inc. won confirmation Thursday for its Chapter 11 plan to rework some $2 billion in debt after the oil drilling support company resolves issues with its equity committee, and a Delaware bankruptcy judge overruled objections from the U.S. Trustee’s Office over the scope of liability releases.

  • July 13, 2017

    Wells Fargo Gets Quick Win In Suit Over CDO Asset Auction

    A New York federal judge sided with Wells Fargo Bank NA on Tuesday in a contract dispute over who owns millions of dollars’ worth of assets from a collateralized debt obligation that were put on auction last year.

  • July 13, 2017

    6 More Banks Face Possible Class Actions Over ‘Last Look’

    The same law firms that are suing Deutsche Bank AG and wrung $50 million from Barclays PLC over a controversial foreign exchange trading policy known as “Last Look” filed suit against six banks in New York federal court Wednesday, leveling similar allegations.

  • July 13, 2017

    Yellen Says Business Model Could Be Used To Set SIFI Status

    Federal Reserve Chair Janet Yellen said Thursday that her agency was open to the idea of subjecting banks to heightened regulatory scrutiny based on their activities rather than their asset size among other changes to the post-financial crisis regulatory architecture.

  • July 13, 2017

    Jay Peak Owner Fights To Keep Defenses In EB-5 Fraud Suit

    The owner of Jay Peak resort asked a Florida federal judge on Wednesday to keep alive his affirmative defenses in a $350 million EB-5 visa investment fraud case, saying the U.S. Securities and Exchange Commission’s bid to throw out most of his defense is a waste of time.

  • July 13, 2017

    ESMA Weighs Tougher MiFID Robo-Advice Client Protections

    Rules forcing investment firms to act in the best interest of their clients will be widened to consider the increasing use of automated advice in the advisory market, under draft guidelines published Thursday by the European Securities and Markets Authority.

  • July 12, 2017

    Shkreli 'Absolutely Stunned' Chairman With Lie

    The former chairman of Retrophin Inc. testified Wednesday in New York federal court that Martin Shkreli stunned him with a lie, threatened to replace him and, after Shkreli was canned as CEO, bragged he would start another company that would outperform his brainchild.

  • July 12, 2017

    Creditor Bid To Split National Events Case Draws Skepticism

    A New York federal judge on Wednesday stressed he is still deeply skeptical of a proposed grand bargain between National Events Holdings LLC creditors to split the case into two separate investigations, saying doing so amounts to letting "the debtor investigate itself."

  • July 12, 2017

    FINRA Fines State Street, Acorns $2M Over Record Keeping

    The Financial Industry Regulatory Authority has fined two companies a total of almost $2 million for allegedly failing to store customer records in a way that they could not be altered or destroyed.

  • July 12, 2017

    SEC Chairman Questions Disclosure Rules, Compliance Costs

    U.S. Securities and Exchange Commission Chairman Jay Clayton said Wednesday that his agency will be taking a hard look at its regulatory scheme and disclosure requirements, questioning whether SEC regulations are burdening public issuers with compliance costs, and keeping private companies out of the market.

  • July 12, 2017

    Koch Cites Egregious Betrayals In Chancery Oxbow Battle

    Billionaire William I. Koch said Wednesday he was the victim of “egregious” breaches of trust during alleged insider and investor maneuvering to end his majority control of Oxbow Carbon LLC, after taking the stand in a scheduled weeklong Delaware Chancery Court trial.

  • July 12, 2017

    MF Global Says Insurer's $15M Bond Post Remains Defective

    Defunct brokerage MF Global on Tuesday doubled down on its bid for a New York bankruptcy judge to strike a $15 million bond posted by its excess insurer Allied World as part of its attempt to arbitrate a coverage dispute between them in Bermuda, arguing the bond is defective and the case should stay put.

  • July 12, 2017

    More Cos. Authorizing No-Vote Shares Despite Resistance

    More companies are establishing the right to issue nonvoting shares at their initial public offering through a triple-class stock structure, venturing beyond dual-class setups that already contain unequal voting rights favoring management's ability to maintain long-term control, despite objections from institutional groups who say the practice erodes accountability.

  • July 12, 2017

    Justice Breyer On Changing His Mind And Sparring With Scalia

    Justice Stephen Breyer discusses the extent to which oral arguments can influence his thinking and recalls his many debates with the late Justice Antonin Scalia, in the second of two articles based on an exclusive interview.

  • July 12, 2017

    Feds Crack Down On $147M Boiler Room Scheme

    Federal prosecutors and the U.S. Securities and Exchange Commission brought charges Wednesday against more than a dozen individuals they alleged orchestrated a $147 million boiler room scheme using aggressive telemarketing to older investors and other manipulative techniques.

Expert Analysis

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.

  • Clarifying Anti-Retaliation Protections Under Dodd-Frank

    Stephen Kohn

    What protections are available under the Dodd-Frank Act’s whistleblower law if an employee reports securities fraud within the company? Courts have pointed to two separate definitions of “whistleblower” under the law to justify their differing positions. However, a more careful review of its history should resolve this prolonged dispute, says Stephen Kohn of Kohn Kohn and Colapinto LLP.

  • A Resurgence Of Synthetic Securitizations

    Daniel Budofsky

    After a major market contraction in the wake of the financial crisis, risk-pooling transactions show signs of gaining favor once more, says Daniel Budofsky of Pillsbury Winthrop Shaw Pittman LLP.

  • How Kokesh Will Impact The FTC And Other Agencies

    Benjamin Mundel

    The U.S. Supreme Court's recent decision in the Kokesh case limits not just U.S. Securities and Exchange Commission enforcement actions, but also monetary relief sought by other agencies, like the Federal Trade Commission. A faithful application of this decision should lead to courts rejecting these agencies' long-standing practice of seeking penal monetary relief under their equitable authority, say Benjamin Mundel and Lucas Crosl... (continued)

  • The Future Of The 1933 Act

    Joseph McLaughlin

    The U.S. Securities and Exchange Commission has brought about significant changes to the procedures contemplated by the original Securities Act of 1933, but it is surprising how little the overall scheme has changed. On the other hand, conditions in the securities markets have changed dramatically since 1933, says Joseph McLaughlin of Sidley Austin LLP.

  • Tax Deductibility And Statutory Damages — A Waiting Trap

    Peter Robbins

    Statutory damages guarantee a minimum recovery in each individual case where a violation may cause only nominal damage. But aggregated statutory damages in class actions can create a risk of staggeringly large awards, which may not be tax-deductible. Companies must know the law and take steps to minimize tax consequences, says Peter Robbins of Corbett & Robbins LLP.

  • Weekly Column

    Innovating For Wise Juries: Juror-Posed Questions

    Roy Futterman

    One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Big Changes For Small-Equity Investment Accounting

    Leslie Silverman

    A new standard that will require companies to generally change the way they account for equity investments of less than 20 percent has largely flown under the radar, but the changes from past practice are significant. The new accounting standard could have a ripple effect on a company’s balance sheet and results of operations, say Leslie Silverman and Andrea Basham of Cleary Gottlieb Steen & Hamilton LLP.

  • Footnote In Kokesh Signals Bigger Changes On The Horizon

    Sean Casey

    The immediate effects of imposing a five-year statute of limitations on SEC disgorgement claims may be limited. A far more intriguing element of the Kokesh opinion is found in a footnote, which brings opportunities for real damage to the SEC’s toolbox, say attorneys with Walden Macht & Haran LLP.

  • Resh Exposes Defendants To Serial Class Cert. Relitigation

    Peter Hawkes

    The Ninth Circuit’s decision in Resh v. China Agritech opens the door to the possibility of serial, successive attempts to certify a class in securities and other cases, potentially exposing defendants to an almost never-ending series of class actions, says Peter Hawkes of Lane Powell PC.