Securities

  • November 8, 2017

    NetTalk To Cede HQ Title, $200K To Settle Derivative Suit

    Digital home phone service provider NetTalk.com Inc. has agreed to hand over more than $200,000 and the title to its Miami headquarters as part of a settlement ending a derivative suit brought by shareholder Telestrata LLC over allegations that NetTalk executives illegally seized control of the telecom, according to papers filed in Florida federal court on Tuesday.

  • November 8, 2017

    NY Pension Fund Official Pleads Guilty To Bribery Scheme

    A former New York retirement fund director pled guilty to securities fraud and wire fraud in federal court Wednesday, admitting he gave broker-dealers more than $3 billion in business from the New York State Common Retirement Fund in return for gifts that ranged from expensive meals to prostitutes.

  • November 8, 2017

    SEC Chair Wants Mom And Pop Investors To Have More Say

    U.S. Securities and Exchange Commission Chair Jay Clayton on Wednesday said a “guiding principle” of his tenure will be ensuring that long-term Main Street investors have more say in how the companies whose shares they own are run.

  • November 8, 2017

    SEC Must Take Fraud Case Against Green Tech Exec To Trial

    The U.S. Securities and Exchange Commission will have to go to trial on allegations that former Servergy Inc. CEO Bill Mapp misled investors after a Texas federal judge on Wednesday denied competing bids to end the fraud lawsuit.

  • November 8, 2017

    Icahn Subpoenaed Over Biofuel Efforts As Trump Adviser

    New York federal prosecutors have subpoenaed Carl Icahn over his efforts to influence U.S. biofuel policy, potentially impacting a large refiner he owns, while serving as a regulatory adviser to President Donald Trump, an investment vehicle owned by the billionaire recently disclosed in a securities filing.

  • November 8, 2017

    DOJ Criminal Unit's Acting Asst. AG Takes FinCEN Gig

    The acting assistant attorney general of the Criminal Division at the U.S. Department of Justice is headed to the U.S. Department of the Treasury, where he will be the director of the Financial Crimes Enforcement Network, the Treasury Department said Wednesday.

  • November 8, 2017

    DOJ Wins Bid To Halt Insider Trading Suit Against Doc

    A Massachusetts federal judge on Tuesday allowed the U.S. Department of Justice to intervene in a Securities and Exchange Commission insider trading suit against a doctor who is married to an ARIAD Pharmaceuticals Inc. employee, pausing the suit until the DOJ concludes its own criminal case.

  • November 8, 2017

    Republicans Open To Saving Private Bonds In Tax Overhaul

    The Democratic effort to save tax benefits for a popular type of municipal bond saw a glimmer of hope Wednesday as some Republicans signaled a willingness to preserve the benefits during a markup hearing of the House GOP tax reform bill.

  • November 8, 2017

    McDermott Nabs Fintech Trio, Including Blockchain Pro

    McDermott Will & Emery LLP is bolstering its financial services and technology offerings by bringing on board to its New York office the former head of Debevoise & Plimpton LLP’s fintech practice, a leading blockchain lawyer, and two colleagues, the firm recently announced.

  • November 8, 2017

    Arena Pharma, Investors Strike $24M Deal In Diet Drug Suit

    Arena Pharmaceuticals Inc. has reached a $24 million cash-and-stock deal with a proposed class of investors to settle its seven-year battle in California federal court over allegations the company lied to shareholders that testing was going smoothly for its diet drug lorcaserin, which is sold under the trade name Belviq.

  • November 8, 2017

    Ex-Fed Agent Gets 2 Years For New Bitcoin Theft Charge

    A former U.S. Secret Service special agent who is in the midst of serving a nearly six-year prison sentence for stealing bitcoin during an investigation of black market website Silk Road was ordered to serve another two years Tuesday after pleading guilty to a new money laundering charge over the summer.

  • November 8, 2017

    Ex-UBS Trader Hayes Wins Reprieve On FCA Ban Amid Appeal

    A U.K. court has halted the Financial Conduct Authority's ban keeping former UBS trader Tom Hayes from working in the financial services industry while he seeks another appeal of his conviction for manipulating a key benchmark rate.

  • November 8, 2017

    DOJ Wants More Enforcement Coordination, Deputy AG Says

    Deputy Attorney General Rod Rosenstein said Wednesday that the U.S. Department of Justice wants to improve coordination with foreign law enforcement agencies and domestic regulators to lessen the amount of “piling on” that can come in settlements, including with banks.

  • November 8, 2017

    Alleged Life Time Inside Traders To Help Prosecutors

    One of nine people indicted on charges involving a brazen insider trading scheme around the $2.8 billion private equity takeover of ultra-premium gym chain Life Time Fitness has agreed to cooperate in the investigation in exchange for a deferred-prosecution agreement, and another pled not guilty with the intent to sign his own DPA, attorneys announced Wednesday.

  • November 8, 2017

    Cohen Milstein Adds 2 Securities Pros To Philly Office

    Cohen Milstein Sellers & Toll PLLC has snagged two attorneys from a prominent Pennsylvania class action law firm, adding two experts in representing institutional investors to its securities litigation practice, Cohen Milstein has announced.

  • November 8, 2017

    Acting OCC Head To Reveal Volcker Rewrite Ideas In Spring

    Acting Comptroller of the Currency Keith Noreika on Wednesday said that he expects to release proposed changes to the Volcker Rule, the Dodd-Frank Act’s ban on proprietary trading, in the spring.

  • 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.

Expert Analysis

  • 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.

  • With Blockchain, The Early Lawyer Gets The Worm

    Caitlin Long

    Delaware’s decisive entry into the blockchain ecosystem has prompted a burst of activity by corporate lawyers who are considering how blockchain technology can benefit their Delaware-based clients. Possibilities include automating the work of share issuances and transfers, corporate governance, and commercial transactions, say Caitlin Long, president of Symbiont, and Andrea Tinianow, director of the Delaware Blockchain Initiative.

  • The SEC Data Breach And Impact On New Reporting Rules

    Jeanette Turner

    The mutual fund industry has expressed concerns about troves of new data being filed on EDGAR starting in June 2018 as part of the U.S. Securities and Exchange Commission’s new reporting requirements. The recent disclosure of an SEC breach perfectly illustrates those concerns and adds to the clamor to delay or revise the requirements, says Jeanette Turner, managing director and chief regulatory officer at Advise Technologies.

  • Courts Scrutinizing Warrants For Electronic Data

    Henry Hockheimer

    Recent rulings from a New York federal court in Wey and the D.C. Circuit in Griffith represent a serious pushback to government efforts to write boundless warrants and to seize phones and computers without a sufficiently particularized showing of probable cause, say Henry Hockeimer and Thomas Burke of Ballard Spahr LLP.

  • Making Sense Of The SEC Data Breach

    Scott Kimpel

    Chairman Jay Clayton of the U.S. Securities and Exchange Commission recently made the surprising announcement that the SEC’s EDGAR database had been hacked. The chairman’s statement and subsequent testimony leave a number of critical questions unanswered, says Scott Kimpel of Hunton & Williams LLP.