Securities

  • April 13, 2018

    Ex-Katten Atty Pushes To Deep-Six Fraud Verdict

    Attorneys for former Katten Muchin Rosenman LLP attorney Evan Greebel on Friday made a last ditch trial court plea to a New York federal judge to quash his conviction for aiding notorious pharmaceutical executive Martin Shkreli in defrauding Retrophin Inc., saying prosecutors failed to prove Greebel was in on the crimes.

  • April 13, 2018

    'Fifth' Pleas To Be Heard In $270M Citadel Fraud Trial

    A Delaware vice chancellor told attorneys Friday to assume that he will allow references to past Fifth Amendment pleas in depositions for an upcoming trial on A. Schulman Inc. claims for more than $270 million in fraud damages after its acquisition of Citadel Plastics Holdings LLC in 2015.

  • April 13, 2018

    SEC In-House Judges' Powers Unconstitutional, Justices Told

    A former investment adviser whose challenge of sanctions imposed by a U.S. Securities and Exchange Commission administrative law judge is now before the U.S. Supreme Court argued in a brief filed Friday that his rights were violated because the judge who heard his case wasn't constitutionally authorized to wield such power.

  • April 13, 2018

    SEC Charges Supplement Co. CEO With Penny Stock Fraud

    The CEO of a Chicago-area health supplements company that sold its shares as penny stocks has been charged with making false and misleading statements in the company's SEC filings and press releases and with manipulating the company's stock, the U.S. Securities and Exchange Commission announced Friday.

  • April 13, 2018

    Goldman Fights Investors' Cert. After 2nd Circ. Reversal

    Goldman Sachs urged a New York federal judge on Friday to reject a certification bid by a proposed class of shareholders who claim the bank’s misrepresentations caused its stock to drop, arguing that the statements didn't impact the stock's value based on the Second Circuit's “preponderance of evidence” standard.

  • April 13, 2018

    Faux Federal Reserve Scammers Cop To Fraud Conspiracy

    Two people charged with recruiting investors in a supposed economic development scheme that they claimed was backed by the New York Federal Reserve pled guilty to conspiracy to commit wire fraud in Manhattan federal court Friday and face up to three and a half years in prison.

  • April 13, 2018

    Ex-Investment Adviser Gets Nearly 5 Yrs. For Stealing $3M

    A New York federal judge on Friday sentenced a former Long Island investment adviser and hedge fund manager to nearly five years in prison and $5.3 million in restitution after he pled guilty to defrauding investors out of approximately $3 million to finance a lavish lifestyle.

  • April 13, 2018

    Russian Must Pay $302M In International Data Hacking Case

    A Russian national was ordered Thursday to pay $302 million in restitution to five corporate victims after he copped to his role in what officials have dubbed one of the world’s largest data breaches that targeted Nasdaq, Dow Jones Inc. and a slew of other companies, according to documents filed in New Jersey federal court.

  • April 13, 2018

    Firm Hit With Malpractice Suit Over Stock Plan Transaction

    A Pennsylvania-based law firm that specializes in employee stock ownership plan transactions was hit with a legal malpractice suit in Massachusetts federal court Friday by Boston-based cleaning and maintenance companies that claim the botched ESOP transaction cost the companies' owner a bundle.

  • April 13, 2018

    Zohar Ch. 11 Dismissal Hearing Procedures Set By Court

    Bankrupt distressed company investment vehicles the Zohar Funds are prepared to defend their Chapter 11 filings at hearings beginning Tuesday after a Delaware judge decided Friday on how those hearings should proceed.

  • April 13, 2018

    CSS, Rosenthal Will Lead Gas Partnership Conversion Suit

    Rosenthal Monhait & Goddess PA and CSS Legal Group PLLC were chosen Friday to lead a Delaware Chancery Court consolidated class action alleging a natural gas well investment partnership’s plan to convert into a corporation will deny preferred unitholders payments they are owed and depress the value of their holdings.

  • April 13, 2018

    Funds Fight Bids To Toss $80B Valeant Price-Gouging Suit

    A proposed class of Valeant Pharmaceuticals shareholders told a New Jersey federal judge Thursday that all of the claims against the company, its executives and several banks over a price-gouging scheme that cost shareholders $80 billion were adequately pled, contrary to a volley of partial dismissal bids pushed by the defendants.

  • April 13, 2018

    A Conversation With Baker Botts CMO Gillian Ward

    In this monthly series, legal recruiting experts at Major Lindsey & Africa interview law firm management about navigating an increasingly competitive business environment. Here we feature Gillian Ward, chief marketing officer at Baker Botts LLP.

  • April 13, 2018

    Brit Extradited To NYC For Alleged $37M Bitcoin Scam

    Renwick Haddow, a British businessman wanted in the U.S. for an alleged $37 million online bitcoin scam, was jailed Friday after he was arrested in Morocco in July and brought to New York City Thursday evening.

  • April 13, 2018

    True Value PE Buy-In Vote Beats Injunction To Move Ahead

    True Value Co. won Delaware Chancery Court clearance on Friday to move ahead with a stockholder vote on the sale of a 70 percent stake in the 4,400-store hardware cooperative, after a vice chancellor rejected a stockholder preliminary injunction motion.

  • April 13, 2018

    2nd Circ. Sides With Deutsche In Investors' Laundering Case

    A proposed class of investors can’t revive their suit accusing Deutsche Bank AG of ignoring shortcomings with its internal controls amid an alleged Russian money-laundering scheme, the Second Circuit said Friday, finding they failed to show the bank intended to deceive shareholders when it touted the success of those controls.

  • April 13, 2018

    Volcker Rule Changes Pass In House

    The U.S. House of Representatives on Friday approved changes to the Volcker Rule, including consolidating rulemaking under the Federal Reserve and exempting banks with less than $10 billion in assets from compliance, adding to a list of potential changes in an anticipated package altering the Dodd-Frank Act.

  • April 12, 2018

    Investors Say Pa. Vertical Farm Owner Bilked Them For $1M

    Calling him a “con artist” and a “career criminal,” investors of a vertical farming startup in Philadelphia say in a state suit that the company’s president defrauded shareholders of more than $1 million by secretly redirecting assets to himself and other enterprises, like a medical marijuana operation.

  • April 13, 2018

    ESMA Widens Scrutiny Of Op Risk For CCPs, Trading Venues

    Europe’s top securities regulator said on Thursday it is changing the way it identifies and monitors operational risks in the financial sector, by taking into account a wider range of quantitative indicators and producing more regular in-depth data reports.

  • April 13, 2018

    Mass. Top Court Won't Quash AG Climate Probe Of Exxon

    Massachusetts' top court on Friday upheld the dismissal of ExxonMobil's legal challenge of Massachusetts Attorney General Maura Healey's climate change probe, dealing the oil giant a second defeat within a month in its fight against her investigation into whether Exxon concealed its climate knowledge from investors.

Expert Analysis

  • Risk Of 'Below Deal Price' Appraisal Post-Dell: Part 2

    Gail Weinstein

    It remains uncertain whether the Delaware Chancery Court — when relying on the deal price to determine fair value, as prescribed in Dell — will now make a downward adjustment to exclude value arising from the merger itself, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Risk Of 'Below Deal Price' Appraisal Post-Dell: Part 1

    Gail Weinstein

    Despite the Delaware Supreme Court’s opinion in Dell that the deal price is generally the best “proxy” for appraised fair value, the Delaware courts have issued three appraisal decisions in 2018 that determined fair value to be below the deal price. This risk is likely to continue absent further clarification from the Supreme Court or legislative change, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Chief Innovation Officer — The New Star On Legal Teams

    Mark Williamson

    Over the past few years, forward-thinking law firms have expanded their talent pools to include a chief innovation officer, whose responsibilities include spearheading the implementation of technology. It is a smart move, says ​​​​​​​Mark Williamson, co-founder and chief technology officer at Hanzo Archives Ltd.

  • The First SEC Action Following Option-Grants Probe

    Michael Dicke

    The U.S. Securities and Exchange Commission’s recent action against Credit Karma — the first enforcement action to result from a sweeping investigation that began in 2016 — reinforces comments from various SEC leaders that the agency is concerned about option-granting practices of late-stage private companies. It also demonstrates the SEC’s continued interest in Silicon Valley companies' governance procedures, say Michael Dicke and... (continued)

  • Opinion

    National Lawyers Need National Licensing For National Courts

    EJ Hurst II

    Just last month, a number of legal groups asked the Northern District of California to strike its rule requiring that, before seeking federal court admission, attorneys first be licensed by the state of California. It is irrational to exclude seasoned federal practitioners from general admission due to state bar approval while allowing raw state lawyers who have never been inside a federal courtroom, says attorney EJ Hurst.

  • SEC, CFTC Display United Front On Cryptocurrency

    Laura Anthony

    In a recent Senate committee hearing on virtual currencies, both Jay Clayton and Christopher Giancarlo confirmed that the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission are working together to ensure effective oversight. However, regulation and oversight need to be fashioned in a way that properly addresses the new technology, says Laura Anthony of Legal & Compliance LLC.

  • Can The SEC Enforce Securities Laws Abroad?

    James Goldfarb

    This week, the Tenth Circuit will hear a case with far-reaching consequences, literally, for the U.S. Securities and Exchange Commission's enforcement activity. If the commission has its way in its case against Traffic Monsoon, more aggressive overseas enforcement activity could be in store, say attorneys with Murphy & McGonigle PC.

  • Changes To Rule 23 Are Coming, Are You Prepared?

    Niki Mendoza

    Proposed amendments to the Federal Rules of Civil Procedure Rule 23, which governs class actions, are set to take effect on Dec. 1, 2018, pending approval. The amendments would significantly alter class action litigation procedure from notice to settlement, says Niki Mendoza of Garden City Group LLC.

  • Virtual Currency As Commodity: From Coinflip To McDonnell

    Douglas Arend

    Through a series of public statements and judicial opinions beginning with the 2015 Coinflip action and progressing to a New York federal court’s decision in McDonnell this month, the U.S. Commodity Futures Trading Commission has established itself as the primary regulator of virtual currencies, notwithstanding the absence of clear statutory authority, say Douglas Arend and Jeffry Henderson of Greenberg Traurig LLP.

  • An Update On Spoofing And Its Challenges

    Ilan Guedj

    Regulators have recently increased their efforts in cracking down on spoofing, yielding an increasing number of criminal indictments and civil settlements. However, an important challenge in identifying spoofing is separating legitimate calculations from those that were intended to manipulate the market, say Ilan Guedj and An Wang of Bates White LLC.