Securities

  • November 7, 2017

    Investors Spar Over Damages In Valeant, Pershing Rows

    Investors behind two suits accusing Valeant Pharmaceuticals and hedge fund Pershing Square of an insider trading scheme in connection with Valeant's attempted $55 billion takeover of Allergan Inc. duked it out in California federal court Monday over proposals for how to handle potentially competing damages awards in their respective cases.

  • November 7, 2017

    Defense In Union Bribe Case Says Payoff Was For Cooperator

    Defense attorneys in a New York federal trial over an alleged bribe paid to former New York City correction union boss Norman Seabrook for investing union money in Murray Huberfeld's now-defunct Platinum Partners LP told the jury in summations that alleged payoff was for the government’s star witness, not the union leader.

  • November 7, 2017

    Investor Says No Sham Deal Talks With Ex-Shkreli Atty

    “Cowboy” venture capitalist Darren Blanton, an early investor in a doomed hedge fund belonging to Martin Shkreli, told jurors Tuesday in the trial of Shkreli’s former Katten Muchin attorney that he never had any real talks with the lawyer about an allegedly fraudulent settlement deal with the now-jailed former pharmaceutical executive.

  • November 7, 2017

    'Hedge Fund' Founder Gets 2.5 Years For Fraud Conspiracy

    A New York federal judge on Tuesday handed down a 30-month prison sentence to a would-be hedge fund founder who pled guilty to a fraud conspiracy charge over allegations he solicited investments in his fund Matrix Capital by touting a stellar track record that didn't exist.

  • November 7, 2017

    Puerto Rico Bondholders Fight For Separate Debt Probe

    A slew of Puerto Rico’s creditors on Tuesday blasted attempts by the commonwealth’s federally appointed advisory board to shut down their request for an investigation into the island’s finances, calling the board’s “blanket refusal” to produce various reports and metrics unwarranted.

  • November 7, 2017

    Chancery Tosses Challenge To Erin Energy's Nigerian Deal

    A Delaware Chancery judge on Tuesday threw out a shareholder lawsuit challenging Erin Energy Corp.’s complex purchase of offshore assets in Nigeria, ruling that the suing stockholder hadn’t shown that the company’s directors acted in bad faith by approving the deal, even if there are adequate allegations the CEO had.

  • November 7, 2017

    Va. Man Cops To $100M Fitbit Stock Scheme That Netted $4K

    A Virginia man who orchestrated a $100 million market manipulation scheme that netted him just $4,000 pled guilty Tuesday to securities fraud in a case that accused him of posing as an executive for a Chinese company and tendering a phony offer for all of Fitbit’s stock.

  • November 7, 2017

    Booz Allen Discloses SEC Probe Amid DOJ Billing Inquiry

    The U.S. Securities and Exchange Commission is investigating government contractor Booz Allen Hamilton for reasons the company believes are related to a U.S. Department of Justice investigation into possible issues with Booz Allen’s billings for government contracts, the company said Monday.

  • November 7, 2017

    Millennium Lab Trustee Seeks $35M Ch. 11 Bank Clawback

    A trustee for the Delaware Chapter 11 estate of Millennium Lab Holdings II LLC sued JPMorgan Chase and three other banks Tuesday to reclaim $35.3 million in fees paid out as part of an allegedly fraudulent, $1.8 billion prebankruptcy dividend recapitalization.

  • November 7, 2017

    Pharma Co. Behind Fentanyl Spray Seeks Out Of Investor Suit

    Specialty pharmaceutical company Insys Therapeutics Inc. has urged a New York federal court to toss a proposed class action accusing it of seeking to cover up declining revenues from its fentanyl-based pain medication Subsys, saying that the investors behind the suit are making a mountain out of a molehill.

  • November 7, 2017

    Barclays To Pay $105M In FERC Power Price Manipulation Deal

    British financial powerhouse Barclays PLC will pay $105 million to end a long-running legal battle with the Federal Energy Regulatory Commission over its alleged manipulation of Western U.S. power markets between 2006 and 2008, the regulator said Tuesday.

  • November 7, 2017

    SEC Says ‘Paid To Click’ $38M Ponzi Schemer Conned 150K

    The U.S. Securities and Exchange Commission on Tuesday announced a civil enforcement action against a Florida businessman for allegedly running a ‘paid to click’ scam at the center of a $38 million Ponzi scheme that roped in more than 150,000 investors.

  • November 7, 2017

    Nossaman Adds Ex-K&L Gates Public Pension Partner

    Nossaman LLP has hired an ex-K&L Gates LLP public pensions pro who spent more than a decade as general counsel for the largest public pension fund in the U.S., bolstering its strengths in trust law, regulatory investigations and fiduciary standards for investment funds.

  • November 7, 2017

    Investors' Claims Against NEA Funds Likely To Survive

    Some damage claims against venture capital giant New Enterprise Associates are likely to survive dismissal arguments in a dispute over NEA's alleged conflicted exploitation of its hold on a medical technology company to help two other deals, Delaware’s chancellor said Tuesday.

  • November 7, 2017

    FDIC Fights Banks’ Bid To Slip Colonial RMBS Claims

    The Federal Deposit Insurance Corp. asked a Manhattan federal court Monday to keep the agency’s updated legal claims against several investment banks fully intact for their roles in selling risky residential mortgage-backed securities to Alabama’s since-failed Colonial Bank.

  • November 7, 2017

    Revolving-Door Roundup: Krieger Kim & Lewin, Arent Fox

    Three federal prosecutors in Manhattan struck out on their own to create the new firm Krieger Kim & Lewin LLP in October, while other ex-government attorneys recently decamped to Arent Fox, Covington & Burling, Venable and others.

  • November 7, 2017

    OTC Unveils Policy To Combat Fraudulent Stock Promotion

    OTC Markets Group Inc., which provides over-the-counter trading systems, on Tuesday announced a new policy that seeks to combat fraudulent stock promotion in an effort to improve the transparency of securities trading on its markets.

  • November 7, 2017

    Ackman’s ADP Loss Puts Universal Proxies Back In Spotlight

    Activist investor Bill Ackman attributed his hedge fund’s failure to secure a minority position on ADP’s board to the human resources software and services provider’s refusal to hold the shareholder vote on a universal proxy card, bringing a U.S. Securities and Exchange Commission proposal for a formalized process back into the spotlight.

  • November 7, 2017

    Fed Rules Chief Is Ready For ‘Fresh Look’ At Regs

    The Federal Reserve’s newly installed regulatory chief said Monday that increasing transparency in the Fed's stress-testing process and other rules would be a part of his "fresh look" at them.

  • November 7, 2017

    XpresSpa Founders Say Directors Misled Them On Takeover

    The founders of travel spa business XpresSpa allege that the company’s board and Form Holdings Corp. executives conspired to mislead them to ensure they would vote in favor of Form Holdings’ acquisition of the company, in a suit filed Monday in New York federal court.

Expert Analysis

  • Asian-Americans Facing Challenges In The Legal Industry

    Goodwin Liu

    Asian-Americans are the fastest-growing minority in the legal profession, but recent studies confirm their underrepresentation among partners, prosecutors, judges and law school administrators. We must take action, say Goodwin Liu, associate justice of the California Supreme Court, and Ajay Mehrotra of the American Bar Foundation.

  • Good And Bad News For Massachusetts Life Sci, Health Cos.

    Caroline Bullerjahn

    Life sciences and health care companies nationwide are being sued by shareholders far more frequently this year, but the good news for such companies in Massachusetts is that after several years of issuing no significant decisions in securities class actions, the First Circuit has now issued several favorable dismissals, say Caroline Bullerjahn and Deborah Birnbach of Goodwin Procter LLP.

  • CalPERS Suit Marks Another Loss For Multiclass Stock Plans

    Blair Nicholas_300.jpg

    The recent case of California Public Employees' Retirement System v. IAC/InterActiveCorp illustrates how institutional investors can use litigation to successfully protect their voting rights. Combined with recent pushback from the S&P, this case should make founders considering nonvoting stock issuances think twice, say attorneys with Bernstein Litowitz Berger & Grossmann LLP.

  • A BigLaw Ladies’ Guide To Becoming A 1st-Chair Trial Lawyer

    Sarah Rathke

    Judge Shira Scheindlin recently published an op-ed in The New York Times discussing the statistical truth that law firms have poor representation of female attorneys as first-chair trial lawyers. Backed by data collected by the New York State Bar Association, Judge Scheindlin’s observation is not merely anecdotal. But it doesn’t have to be inevitable, says Sarah Rathke, a partner and trial lawyer at Squire Patton Boggs LLP.

  • Opinion

    September Madness: Problems With NCAA Corruption Case

    Randall Eliason

    I'm not saying the charges filed last month against 10 individuals in a college basketball corruption scheme are legally flawed — not all of them, anyway. But I do question whether bringing multiple felony charges on these facts is sound exercise of prosecutorial discretion, says Randall Eliason, a former federal prosecutor.

  • Interlocking Directorates — Not Just A Section 8 Issue

    Pat Pascarella

    We regularly receive queries from clients regarding the legality of director interlocks under Section 8 of the Clayton Act. But another important question to consider is the potential risk created by interlocking directors under Section 1 of the Sherman Act or Section 5 of the Federal Trade Commission Act, say Pat Pascarella and Nate Newman of Tucker Ellis LLP.

  • Mitigating Securities Litigation Risk From Software Problems

    Gerard Pecht

    Public companies can face significant securities litigation risk over defective algorithms, data errors and software glitches. Even companies that follow best practices in software development can face liability for unexpected problems if they do not also follow best practices from a disclosure standpoint, say Gerard Pecht and Peter Stokes of Norton Rose Fulbright.

  • CFTC Self-Reporting Policy Leaves Open Several Questions

    Douglas Yatter

    It is unclear how successful the U.S. Commodity Futures Trading Commission's newly announced policy will be in motivating firms to self-report when they know they will face a costly, disruptive and potentially open-ended enforcement investigation before receiving the benefit of a penalty reduction, say attorneys with Latham & Watkins LLP.

  • SEC's Pay-To-Play Universe Continues To Expand

    Zachary Parks

    Because capital acquisition brokers may act as placement agents in the sale of certain securities, the U.S. Securities and Exchange Commission is now proposing to expand its pay-to-play rules to include CABs. The rule may also encourage investment advisers to take certain steps, says Zachary Parks of Covington & Burling LLP.

  • 5 Tips To Ensure Proper Deposition Behavior

    Brian McDermott

    If conducted properly, depositions can be a powerful tool. At times, though, opposing counsel employ tactics to impede the examiner’s ability to obtain unfiltered, proper testimony from the deponent. By knowing and effectively using applicable rules and case law, however, deposing attorneys can take specific steps to combat these tactics, say attorneys with Ogletree Deakins Nash Smoak & Stewart PC.