Securities

  • January 9, 2018

    Fitbit, Investors Reach $33M Deal In Stock-Drop Suit

    Fitbit shareholders on Monday urged a California federal judge to approve a $33 million deal that would wrap up nearly two years of litigation over allegations the company hid problems with its fitness tracking technology and artificially inflated its stock price.

  • January 9, 2018

    ESMA Issues 1st Data On Trading Venue Derivatives Controls

    The European Securities and Markets Authority published on Tuesday the first set of data it has received from trading venues on the controls they have in place to manage commodity derivatives positions, which they must reveal under the wide-ranging reformed Markets in Financial Instruments Directive.

  • January 8, 2018

    Milberg Joins Sanders Phillips Grossman To Form New Firm

    Leading class action law firm Milberg LLP said Monday it has entered a new partnership with Sanders Phillips Grossman LLC, a plaintiffs firm focusing on mass tort and personal injury cases, to form Milberg Tadler Phillips Grossman LLP.

  • January 8, 2018

    SEC Wants $1M Judgment For Chemical Co. Exec's Fraud

    The U.S. Securities and Exchange Commission urged an Ohio federal court on Monday to assess the most severe level of civil penalty against the former president of a now-bankrupt chemical company, accused of defrauding dozens of investors with at least $12 million in phony promissory notes.

  • January 8, 2018

    Defrauded Investors Must Arbitrate Under FINRA: 6th Circ.

    The Sixth Circuit on Monday affirmed a district court’s decision that a brokerage firm must engage in a Financial Industry Regulatory Authority arbitration with a couple that was persuaded to invest hundreds of thousands of dollars in low-quality investments, saying the investments in question happened in the context of the couple’s customer relationship with the firm.

  • January 8, 2018

    Bob Evans Investor Wants To Investigate $1.5B Sale To Post

    An investor in Bob Evans Farms Inc. launched a books and records demand in the Delaware Chancery Court on Monday, looking to investigate the proposed $1.5 billion sale of its packaged food and food-service lines to cereal giant Post on suspicion that directors may have fiddled with financial projections.

  • January 8, 2018

    IT Firm Chairman Sues To Compel Director Election Meeting

    The chairman of the board and largest shareholder of information technology firm Avande Inc. filed suit Monday in Delaware Chancery Court seeking to compel a meeting of shareholders to replace a director who died unexpectedly last year.

  • January 8, 2018

    Bogus Financial Consultant To Cop To $9.3M Fraud

    A sham North Carolina financial consultant accused of running a Ponzi scheme that cost investors, including some professional athletes, more than $9.3 million has agreed to plead guilty to a securities fraud and tax evasion scheme, according to documents filed on Friday.

  • January 8, 2018

    Simpson Thacher Gets Back Ex-Acting OCC Head As Partner

    Simpson Thacher & Bartlett LLP said Monday that one of its former partners is rejoining the firm after a six-month stint as the temporary head of the Office of the Comptroller of the Currency.

  • January 8, 2018

    High Court Tosses $10M Morgan Stanley Insider Trading Case

    The U.S. Supreme Court on Monday rejected an effort by an auto parts investor to revive a $10 million insider trading suit against Morgan Stanley, handing the bank a final victory in its long-running dispute with a company linked to Russian billionaire Oleg Deripaska.

  • January 8, 2018

    6th Circ. Won't Revive Eaton Workers' ERISA Suit

    A Sixth Circuit panel on Monday affirmed the toss of a proposed ERISA class action against fiduciaries of Eaton Corp.’s employee stock ownership plan, finding it was reasonable for the financial officers to presume that releasing details about the company’s merger with Cooper Industries PLC would have caused more harm than good.

  • January 8, 2018

    Ex-Bankrate Exec To Testify Against CFO, Asks For Leniency

    A former Bankrate Inc. vice president of finance who admitted he schemed to lie about the rate-shopping company’s finances asked a Miami federal judge Friday for leniency, citing his plan to testify against his former boss at an upcoming trial.

  • January 8, 2018

    Seattle Genetics Mounts 3rd Bid To Defeat Stock Fraud Suit

    Cancer-drug maker Seattle Genetics Inc. on Friday asked a Washington federal court for a third time to dismiss a proposed securities fraud class action against it, saying the latest complaint still doesn’t spell out how it supposedly knew it was engaged in wrongdoing.

  • January 8, 2018

    Thompson Hine Atty Fights DQ In $86M Pump-And-Dump Case

    A Thompson & Hine LLP attorney on Friday asked a Brooklyn federal judge to reconsider her disqualification from representing a broker charged with aiding an $86 million pump-and-dump scheme, saying there is no “substantial relationship” between her prior limited representation of a codefendant and the instant case.

  • January 8, 2018

    SEC Suspends Trading Of Hong Kong Blockchain Company

    The Securities and Exchange Commission on Monday temporarily suspended trading of a Hong Kong blockchain firm, citing questions about the accuracy of its disclosures and concerns about an "unusual" spike in trading that coincided with the recent mania over bitcoin.

  • January 8, 2018

    SEC Seeks Final Judgment For Texas Adviser In Fraud Suit

    The U.S. Securities and Exchange Commission on Friday asked a Texas federal court to sign off on a final judgment resolving the agency’s remaining claims against a disgraced investment adviser who admitted to stealing more than $1 million from clients in what prosecutors called a “scam within a scam.”

  • January 8, 2018

    Sentinel Liquidator’s $33M Fraud Suit Against MBF Survives

    Futures brokerage MBF Clearing Corp. failed to convince a Chicago federal judge to dismiss a $33 million fraud case brought by failed investment firm Sentinel Management Corp., with the court saying Friday that MBF’s concern about Sentinel’s change in legal strategy was “overblown.”

  • January 8, 2018

    ESMA Mulls Controls On Margin Moves During Market Stress

    The European Union's securities regulator said Monday it is weighing new rules to moderate margin requirements in securities trading that tend to rise in times of market stress to account for higher risk, as it aims to limit the potential for higher margins to worsen a financial crisis.

  • January 8, 2018

    FCA Fines, Bans Ex-RBS Libor Trader For 'Reckless' Conduct

    The Financial Conduct Authority said Monday it has banned another former interest rate derivatives trader from working in the regulated financial sector and fined him £250,000 ($338,600) for what it called his "reckless” part in manipulation of the London Interbank Offered Rate.

  • January 5, 2018

    2nd Circ. Won't Rethink Barclays Investors' Dark Pool Cert.

    The Second Circuit rejected a petition for en banc review on Friday by Barclays PLC seeking to undo class certification for investors suing the bank over losses tied to the bank’s alleged misrepresentations about oversight of its dark pool market.

Expert Analysis

  • Considerations Before Self-Reporting Under New FCPA Policy

    Olga Greenberg

    The U.S. Department of Justice’s new Foreign Corrupt Practices Act policy confirms and reiterates the standards for voluntary self-disclosure, full cooperation, and timely and appropriate remediation. However, firms have to carefully assess the potential benefits along with the costs and risks, say attorneys with Eversheds Sutherland.

  • Target Date Funds: Economic, Regulatory And Legal Trends

    Ioannis Gkatzimas

    Target date funds are an increasingly important part of the retirement investment universe. But uncertainties for TDFs and their fiduciaries exist due to the size, heterogeneity and complexity of the TDF market, new regulations and a busy court docket, say members of The Brattle Group.

  • Series

    40 Years Of FCPA: A Journey From Conviction To Dismissal

    Janet Levine

    The twist in the Lindsey Manufacturing Foreign Corrupt Practices Act case was the truncated time in which we prepared. Having refused to waive their rights to a speedy trial, our clients took control of the case — this, along with the compressed time frame, forced the government to make errors, say Janet Levine, Sima Namiri-Kalantari and Megan Weisgerber of Crowell & Moring LLP.

  • Series

    My Strangest Day In Court: The Shkreli Trial

    Benjamin Brafman

    Having defended some of the most notorious defendants in 40 years of practice as a criminal defense lawyer, I thought I was prepared for everything. That was until jury selection commenced last summer in “pharma bro” Martin Shkreli’s trial, says Benjamin Brafman of Brafman & Associates PC.

  • What We Learned From Barclays Market Manipulation Case

    Michael Brooks

    Barclays’ recent settlement with the Federal Energy Regulatory Commission resolving market manipulation allegations provides no new guidance as to the reach of FERC’s anti-manipulation rule. However, the case has established precedent regarding certain procedural questions, say attorneys with Bracewell LLP.

  • Will The Supreme Court Review SEC's In-House Judges?

    Harold Krent

    I was confident that the U.S. Supreme Court would grant certiorari in Lucia v. SEC to resolve the split in the circuits over whether federal administrative law judges should be considered inferior officers or employees under the Constitution — until the government's response to the Lucia petition last week, says professor Harold Krent of IIT Chicago-Kent College of Law.

  • The Johnson Conviction And Fallout For Forex Market

    Paul Hinton

    The recent conviction of former HSBC foreign exchange executive Mark Johnson has shocked market participants and could lead to a reduction in liquidity for block trades in the foreign exchange and other over-the-counter markets, say members of The Brattle Group and AGN Advisory.

  • D&O Insurance Coverage Tips For Financial Institutions

    Robert Long

    Directors and officers insurance coverage terms can be particularly important for executives in the heavily regulated financial services industry. Fortunately, in the midst of a very competitive insurance market, new and broader coverage features have appeared, say Robert Long and Nanci Weissgold of Alston & Bird LLP.

  • Series

    40 Years Of FCPA: The Siemens Lesson — Tillerson Is Right

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    Since its whopping $800 million Foreign Corrupt Practices Act settlement in 2008, Siemens cleaned up — and it has “cleaned up” in its long-standing competition with General Electric. How? As Secretary of State Rex Tillerson reportedly told President Donald Trump, you don’t need to pay bribes to succeed in international business, says Peter Y. Solmssen, former general counsel of Siemens.

  • Series

    40 Years Of FCPA: The Rise In International Enforcement

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    The 2008 Siemens matter — then the largest sanction ever imposed in a Foreign Corrupt Practices Act enforcement action — set the stage for future cross-collaboration in global anti-corruption enforcement, say Cheryl Scarboro, former chief of the FCPA Unit at the U.S. Securities and Exchange Commission, and Diana Wielocha of Simpson Thacher & Bartlett LLP.