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Securities

  • June 13, 2018

    Higher One Shareholders Seek Final OK On $7.5M Settlement

    A class of Higher One Holdings Inc. investors on Tuesday asked a Connecticut federal judge to approve a $7.5 million deal with the company and its former board members, settling allegations the higher education financial services provider misled the investors following a run-in with federal regulators.

  • June 13, 2018

    Time Limit Under NY Securities Law May Frustrate Big Cases

    A ruling Tuesday by New York’s highest court limiting to three years the time in which the state attorney general’s office can bring securities fraud claims under the Martin Act could hamper complicated cases involving large financial services firms, especially if prosecutors are seeking to charge individuals, legal experts said Wednesday.

  • June 13, 2018

    Muscular Dystrophy Drug Co. Seeks To Stall Derivative Suit

    Solid Biosciences Inc. told a Massachusetts judge on Wednesday that a shareholder derivative lawsuit should be put on hold because it too closely resembles a securities class action proceeding in federal court, both of which contend the company lied about its leading drug candidate before an initial public offering.

  • June 13, 2018

    Sens. Question If SEC Official Abused Role In Remarks To Citi

    Six Democratic senators have asked the U.S. Securities and Exchange Commission’s inspector general to look into reports that outgoing Commissioner Michael Piwowar lit into Citigroup Inc. executives during a private meeting at the agency after the bank rolled out firearm sales restrictions for retail clients in the wake of the Parkland, Florida, school shooting.

  • June 13, 2018

    Facebook Rips $129M Class Fee Bid In Zuckerberg Stock Suit

    Attorneys for Facebook rejected claims late Wednesday that class attorneys deserve a $129 million fee for a Delaware Chancery Court suit challenging a stock reclassification seen as assuring founder Mark Zuckerberg’s continued control, suggesting instead an up to $19.9 million fee.

  • June 13, 2018

    Madoff Trustee Recovers $280M In Ezra Merkin Settlement

    The trustee for Bernie Madoff's defunct investment firm Wednesday asked a New York bankruptcy court to approve a $280 million settlement of his claims that disgraced financier J. Ezra Merkin received fraudulent transfers from Madoff’s fund.

  • June 13, 2018

    Hidden-Fee Scheme Cost UK Pension Plan $3M, Jury Hears

    A hidden-fee scheme federal prosecutors say was orchestrated by a former State Street Corp. executive cost the United Kingdom’s Royal Mail Pension plan 10 times more than it had expected to pay for a massive transaction, a Massachusetts jury heard Wednesday morning.

  • June 13, 2018

    Biotech Co. Pens $18.5M Deal In Investor Fraud Class Action

    Investors in Osiris Therapeutics Inc. told a Maryland federal judge on Tuesday that they had reached an $18.5 million settlement with the biotech research company over allegations it artificially inflated reported revenues and misled shareholders about its revenue growth.

  • June 13, 2018

    Immigration Atty Urges Court To Rethink DQ In EB-5 Suit

    A Chicago-based immigration attorney accused by the U.S. Securities and Exchange Commission of pocketing money from foreign investors seeking EB-5 visas urged an Illinois federal court Tuesday to rethink a decision barring him from representing several supplemental defendants in the case, rebutting contentions that there is a conflict of interest.

  • June 13, 2018

    Insys Can't Duck Investor Suit Over Opioid Spray's Financials

    Insys Therapeutics Inc. and its top brass largely lost their bid to boot an investor's fraud suit Tuesday when a New York federal judge found the complaint had adequately tied the company's alleged misstatements to a concrete loss, allowing the proposed shareholder action accusing Insys of overstating its fentanyl spray's financial strength to move forward.

  • June 13, 2018

    At SFO Trial Defense Claims Euribor Rig Was Honest Mistake

    A former Barclays PLC trader accused of illegally manipulating a key interest rate benchmark made an honest mistake when he asked colleagues to submit rates that would benefit the bank, his lawyer told a jury at a London crown court during closing arguments Wednesday.

  • June 12, 2018

    Guess Exec Resigns After Glaser Weil's Misconduct Inquiry

    Guess? Inc. has announced that co-founder Paul Marciano has resigned as executive chairman of the lifestyle brand after Glaser Weil LLP found he exercised “poor judgment” when communicating with models and photographers, adding that he and the company agreed to settle five individuals’ allegations of inappropriate conduct for $500,000.

  • June 12, 2018

    3rd Circ. Unconvinced Hertz Execs' 'Bad Tone' Indicated Fraud

    A Third Circuit panel on Tuesday pressed two pension funds to show why Hertz Global Holdings Inc.’s misrepresentations about its financial status were intentionally misleading, as they alleged in their securities fraud class action, and not merely the result of mismanagement.

  • June 12, 2018

    Puerto Rico Investors Cry Foul Over Sales Tax Revenue Deal

    Investors holding general obligation debt issued by Puerto Rico's government are pushing for tweaks to a pending settlement proposed to resolve a bitter fight between creditors over billions worth of sales tax collections, saying the currently proposed split is unacceptable.

  • June 12, 2018

    Ex-Morgan Stanley VP Traded On Hacked Co. Info, Jury Told

    A Brooklyn federal jury on Tuesday heard of how a former Morgan Stanley vice president and an ex-broker were allegedly part of a $30 million insider trading scheme that utilized hacked corporate press releases to trade ahead of earnings announcements and other company news, as an expected month-long trial kicked off.

  • June 12, 2018

    Investors Slam Fiat Chrysler's 'Bait And Switch' Discovery Bid

    Fiat Chrysler investors asked a New York federal judge Monday to reject the automaker’s request for a three-month extension of discovery in a stock-drop suit alleging the company lied about using emissions-cheating devices in vehicles and complying with safety recalls, calling it a "bait and switch" move.

  • June 12, 2018

    Consultant In SEC's Illicit Stock Sale Suit Nabs Early Deal

    A media advertising consultant in California will disgorge several thousand dollars to shake the U.S. Securities and Exchange Commission's suit alleging he funneled proceeds from the sale of unregistered securities to insiders at a company that manufactures hemp health products, according to a consent judgment filed Tuesday in federal court.

  • June 12, 2018

    Reg A+ Is Becoming A Popular Path To Pursue ICOs

    More companies are preparing initial coin offerings by using the so-called Reg A+ exemption, a streamlined initial public offering often dubbed a “mini-IPO,” though such campaigns face regulatory hurdles and other obstacles, capital-raising experts said at various talks Tuesday in New York.

  • June 12, 2018

    Attys Defend $16M LendingClub Fee Bid That 'Shocked' Judge

    Attorneys seeking $16 million for representing LendingClub Corp. investors in securities class actions against the peer-to-peer lending company defended their fee bid Monday to a California federal judge who previously said the amount “shocked” him, saying their work produced an “outstanding result under any measure.”

  • June 12, 2018

    GoPro Investors Seek Cert. In Undersupply, Defect Suit

    A proposed class of investors who say they overpaid for shares of GoPro Inc. because the company concealed shortages of its cameras and drones as well as a design defect asked a California federal court Monday for class certification.

Expert Analysis

  • Opinion

    Recovering Lawyers' Lost Position Of Independence

    Samuel Samaro

    In these politically divisive times, many ask whether our institutions and traditions can help us return to a greater consensus. In days long past, the legal profession could have been counted on to serve just such a function. But lawyers are now just as polarized as everyone else, says Samuel Samaro of Pashman Stein Walder Hayden PC.

  • Financial Institutions Seem Unprepared For Libor Demise

    Kevin Trabaris

    We recently polled some of our financial clients to determine the state of their preparations for the end of Libor, and the results indicate that there is widespread awareness of the rate's phaseout by 2021. However, the survey results do not indicate anything is actually being done, says Kevin Trabaris, chairman of the financial services group at Culhane Meadows PLLC.

  • Inside The New DOJ Policy On Coordinated Enforcement

    Suzanne Jaffe Bloom

    A recent policy announcement by Deputy Attorney General Rod Rosenstein appears to be an express acknowledgement by the U.S. Department of Justice of the need to mitigate the disproportionate and harmful consequences that can result when multiple enforcement authorities seek to investigate and punish the same conduct, say attorneys with Winston & Strawn LLP.

  • Cryptocurrency Brings Rising International Risks

    Ryan Rohlfsen

    As digital currencies continue to evolve on the international platform, the anonymous and decentralized nature of cryptocurrency transactions could present a number of potential violations of U.S. anti-corruption, sanctions and anti-money laundering laws, including the Foreign Corrupt Practices Act, say attorneys with Ropes & Gray LLP.

  • 5th Pillar Of AML Compliance Is Here, But Questions Remain

    Dustin Palmer

    The Financial Crimes Enforcement Network’s long-awaited customer due diligence rule — the so-called “fifth pillar” of anti-money laundering programs — is now effective, but the broad reach of the rule and some lingering interpretive issues have made it difficult for firms to operationalize the rule’s requirements, say members of Promontory Financial Group LLC.

  • 8 Reasons To Take A Fresh Look At Your Law Office Lease

    Tiffany Winne

    After moving into a new law office, tenants often file their signed leases away, figuring that the terms are set for a few years at least. However, leases can be very flexible instruments, and should be reviewed annually even if nothing seems amiss, says Tiffany Winne of Savills Studley Inc.

  • Recent Case Clarifies Personal Jurisdiction Law In Delaware

    Francis Pileggi

    The Delaware Chancery Court recently ruled in Baier v. Upper New York Investment that the simple act of forming a Delaware entity is not sufficient to impose personal jurisdiction over a nonresident involved in that formation. However, there are circumstances in which the formation of such an entity could form the basis for imposing personal jurisdiction, says Francis Pileggi of Eckert Seamans Cherin & Mellott LLC.

  • A General Counsel's Tips For Succeeding As A New Associate

    Jason Idilbi

    Based on his experience as a BigLaw associate for six years and now as general counsel for a tech startup, Jason Idilbi of Passport Labs offers some best practices for newer associates — whether they are serving external clients or senior attorneys within their firms.

  • A New Regulatory Avenue For NY Cryptocurrency Exchanges

    Jonathan Sorkowitz

    Virtual currency businesses in New York should understand that they are under scrutiny even if they receive New York BitLicenses. The Virtual Markets Integrity Initiative will most likely survive the resignation and departure of former Attorney General Eric Schneiderman, so businesses should proceed cautiously, says Jonathan Sorkowitz of Skarzynski Black LLC.

  • Elbit Settlement Shows Breadth Of FCPA Accounting Rules

    Alice Hsieh

    In March, the U.S. Securities and Exchange Commission announced a settlement with Elbit Imaging Ltd. related to alleged violations of the Foreign Corrupt Practices Act. The lack of confirmation that fees were in fact given to a foreign official is an example of the broad reach of the FCPA's accounting provisions, says Alice Hsieh of Miller & Chevalier Chtd.