Securities

  • May 18, 2017

    Wendy's Shareholders Aim To Consolidate Data Breach Suits

    A Wendy’s Co. shareholder who filed a data breach suit on behalf of the company asked an Ohio federal court Wednesday to consolidate his suit with another one alleging Wendy’s top executives and its board of directors made poor security decisions that led to the 2016 breach.

  • May 18, 2017

    Buddha-Bar Investor Says It Was Harassed Over Franchise

    A Cyprus company demanded the return of its $1 million investment in a yet-developed Manhattan franchise of Buddha-Bar — an international restaurant and hotel chain — telling a New York federal court Thursday that the other owners attempted to “oppress and harass” it out of its ownership rights.

  • May 18, 2017

    'Big Short' Adviser Case Paused While DC Circ. Weighs ALJs

    The D.C. Circuit on Wednesday stayed the Securities and Exchange Commission’s sanctions against investment adviser Wing Chau of "The Big Short" fame and paused his appeal of the SEC's administrative law judge system, whose fate it will consider in another case later this month.

  • May 18, 2017

    SEC Denies FINRA Order Freeze For Appealing Brokerage

    The U.S. Securities and Exchange Commission has denied a bid by a broker-dealer to freeze a Financial Industry Regulatory Authority order requiring it to get annual financial statements reviewed by certain firms, saying it hadn’t shown how an appeal of the order would succeed.

  • May 18, 2017

    Ohio Chem Co. Sued By SEC Over $12M In Bogus Debt

    A bankrupt chemical company and its former president were accused by the U.S. Securities and Exchange Commission on Tuesday of defrauding dozens of investors with at least $12 million in phony promissory notes, according to a suit filed in Ohio federal court.

  • May 17, 2017

    Sessions Memo Could Create Friction In Plea Negotiations

    Most criminal cases end in plea deals, many after long and intense negotiations — a process that sometimes hits road bumps and may see more after U.S. Attorney General Jeff Sessions told federal prosecutors last week to pursue the "most serious, readily provable offense."

  • May 17, 2017

    SEC Chair Faces Uphill Climb In Reviving IPO Market

    Newly confirmed U.S. Securities and Exchange Commission Chairman Jay Clayton's efforts to make public markets more attractive are a welcome sign for capital markets attorneys, who nonetheless caution that the SEC's ability to reverse the long-term decline in initial public offerings is limited.

  • May 17, 2017

    Trustee Can't Get Funds From IRS, Gov't Tells 9th Circ.

    The bankruptcy trustee for a collapsed real estate firm should be trying to recover investors’ lost funds from the firm’s fraudster president and not the IRS, according to arguments the U.S. government made on Wednesday before the Ninth Circuit.

  • May 17, 2017

    FINRA Boss Notes Sharp Drop In Market Manipulation Signs

    The head of the securities industry self-regulator said Wednesday that its new monitoring program designed to detect illegal trading patterns has found a steep decline in indications of manipulative trades over the past year.

  • May 17, 2017

    Fla. Man Gets 15 Years For Frauds That Took In $30M

    A Miami federal judge sentenced a Florida man on Wednesday to 15 years in prison and ordered him to forfeit more than $30 million in property and money he obtained through a sugar shipping and mining Ponzi scheme and a separate development scam he orchestrated.

  • May 17, 2017

    Texas Panel Wrestles With Paxton Prosecutor Pay Challenge

    In a vigorous oral argument Wednesday, a Texas appellate court again wrestled with a real estate developer’s claim that special prosecutors in the felony securities fraud case against Texas Attorney General Ken Paxton are being unlawfully overpaid.

  • May 17, 2017

    SEC Rethinking Approval Of Leveraged ETFs

    The U.S. Securities and Exchange Commission has decided to reconsider a staff decision approving quadruple-leveraged exchange traded funds, according to media reports, potentially pulling back on the most highly leveraged ETFs approved for U.S. markets.

  • May 17, 2017

    Shkreli Loses Bid To Suppress Docs In Securities Fraud Case

    A New York federal judge on Tuesday refused a bid by former pharma executive Martin Shkreli to suppress evidence from his securities fraud trial related to his former hedge funds given to prosecutors by drugmaker Retrophin Inc., finding that Shkreli’s Fourth Amendment rights were not violated.

  • May 17, 2017

    Ex-US Atty Committed Misconduct With Office Romance: DOJ

    A retired U.S. attorney engaged in misconduct by having a romantic relationship with a subordinate, and the subordinate failed to disclose a spouse’s stock trades, the Justice Department’s Inspector General said Tuesday.

  • May 17, 2017

    Class Seeks Supplement OK In FXCM Chancery Breach Suit

    Attorneys for directors of foreign exchange broker FXCM Inc. disputed proposed additions Wednesday to an investor class complaint accusing the board of fiduciary breaches, waste and other failings, telling a Delaware Chancery Court that rules governing the fully briefed and pending dismissal motion bar the changes.

  • May 17, 2017

    Player In $3B TelexFree Scam Settles With SEC For $1.8M

    A player in the TelexFree LLC pyramid scheme agreed Wednesday to cough up more than $1.8 million to settle a Massachusetts federal suit by the U.S. Securities and Exchange Commission accusing him of securities fraud in promoting what the agency called “an elaborate Ponzi and pyramid scheme.”

  • May 17, 2017

    FINRA Fines Merrill Lynch Over Customer Trade Prices

    The Financial Industry Regulatory Authority said it has fined Merrill Lynch for allegedly failing to obtain the best price for customers on thousands of manually executed trades and failing to keep accurate records of the trades, among other violations.

  • May 17, 2017

    'Hamilton' Ponzi Fraud Defendant Gets November Trial Date

    A Manhattan federal judge set a brisk timetable Wednesday to try accused fraudster Joseph Meli, who was arrested in January for a ticket resale fraud tied to the Broadway hit "Hamilton," along with a co-defendant who is charged in a related fraud.

  • May 17, 2017

    Fiat Chrysler Says Fudged Sales Figure Claims Fall Short

    Fiat Chrysler Automobiles NV urged a Michigan federal court on Wednesday to toss a proposed class action accusing the automaker and its executives of inflating its monthly vehicle sales figures, saying that the investors behind the securities fraud suit have made weak and implausible allegations.

  • May 17, 2017

    SEC Warns Firms To Beef Up Security After Cyberattacks

    The U.S. Securities and Exchange Commission on Wednesday urged broker-dealers, investment advisers and investment companies to make sure they’re conducting vulnerability scans and implementing timely system upgrades in light of the massive cyberattack that swept across more than 100 countries.

Expert Analysis

  • Litigation Finance, Big Data And The Limits Of AI

    Christopher Bogart

    Theoretically, both better data and its better use should be able to improve results in litigation, and thus help litigation financiers allocate more capital to meritorious matters. However, while big data and artificial intelligence are intriguing additions to the litigation toolkit, they are far from turning litigation finance on its head, says Christopher Bogart, CEO of Burford Capital LLC.

  • Series

    Counsel To Counsel: Mama Said There'll Be Days Like This

    Peter J. Engstrom

    It's no longer enough for law firms simply to provide expert legal advice — we are expected to mirror clients' legal, ethics and social commitments and promises. For law firm GCs, the resulting job demands seem to grow exponentially, says Peter Engstrom, general counsel of Baker McKenzie.

  • Textualism Takes Center Stage In CalPERS V. ANZ Securities

    Joel Rothman

    Arguments before the U.S. Supreme Court this week in California Public Employee Retirement System v. ANZ Securities were notable for CalPERS’ focus on appealing to the court’s textualists. The case was argued on Justice Gorsuch’s first day on the bench by two of the court’s most well-credentialed advocates, say attorneys with Mintz Levin.

  • Big Stakes In High Court’s Securities Fraud Omissions Case

    Stephen L. Cohen

    Leidos v. Indiana Public Retirement System, which the U.S. Supreme Court will hear this year, presents potentially far-reaching questions, ranging from the U.S. Securities and Exchange Commission’s role in interpreting Section 10(b) to courts’ role in creating a federal common law of disclosure duties, say Stephen Cohen and Daniel McLaughlin of Sidley Austin LLP.

  • Series

    Counsel To Counsel: A Law Firm GC's Data Protection Duties

    Thomas W. White

    Increasingly, we see companies in all industries seeking to perform various levels of due diligence on our information security defenses. We received three times as many diligence requests from clients and prospective clients in 2016 as we did in 2015. Some clients even conduct their own penetration tests, says Thomas White, general counsel of WilmerHale.

  • SEC Provides Offshore Feeder Relief, But Challenges Remain

    Mark C. Amorosi

    The U.S. Securities and Exchange Commission's recently granted no-action relief is an incremental step in reducing barriers to global distribution of U.S. registered funds and may marginally increase the use of cross-border master-feeder arrangements, say attorneys with K&L Gates LLP.

  • Series

    Counsel To Counsel: Evaluating Positional Conflicts

    Nicholas A. Gravante Jr.

    What happens when attorneys come to their general counsel’s office with knowledge of a potential positional conflict? While the inquiry will depend on the rules governing the particular jurisdiction, there are a few general questions to consider from both business and legal ethics perspectives, say general counsel Nicholas A. Gravante Jr. and deputy general counsel Ilana R. Miller of Boies Schiller Flexner LLP.

  • The 1st Case To Decline Corwin 'Cleansing'

    Gail Weinstein

    Saba Software Stockholder Litigation may be the first case in which the Delaware Chancery Court has declined to apply “cleansing” under Corwin, but the decision confirms the recent trend that Corwin cleansing of noncontroller stockholder-approved transactions is likely to be precluded only in unusual and egregious circumstances, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Series

    Counsel To Counsel: 5 Challenges For A Law Firm GC

    John Koski

    Regardless of where we live and practice, regardless of whether trade deals succeed or fail, and regardless of whether the movement of people or capital is easy or difficult, our clients will still have needs or problems far away from home, says John Koski, global chief legal officer at Dentons.

  • Roundup

    Evaluating FCPA Pilot Program

    try again

    In April 2016, the U.S. Department of Justice launched a pilot program to reward companies that voluntarily self-report violations of the Foreign Corrupt Practices Act. Now that a year has passed, this series examines the impact and potential future of the program.