We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Securities

  • October 9, 2018

    Royal Park Can't Revive $3.7B RMBS Suit, NY Court Rules

    A New York appellate court said Tuesday that a lower court was right to toss Royal Park Investments SA/NV's $3.7 billion suit accusing four major banks of committing fraud in connection with the sale of residential mortgage-backed securities, finding the Belgian bank did not have standing to bring negligence and fraud claims.

  • October 9, 2018

    Boston Scientific Merger Trial Fast-Tracked In Chancery

    A trial over the purported termination of a $275 million merger between medical device companies Boston Scientific Corp. and Channel Medsystems Inc. was expedited Tuesday when a Delaware Chancery judge said the proceedings would be scheduled for April.

  • October 9, 2018

    Snap Accuses Kessler Topaz Of Improper Lead Plaintiff Swap

    Snap Inc. on Friday accused Kessler Topaz Meltzer & Check LLP of putting forward inadequate replacements for an investor who bowed out of a proposed class action claiming the company misrepresented user growth around the time of its initial public offering.

  • October 9, 2018

    Zoe's Kitchen Hit With 2nd Suit Over Proposed $300M Sale

    A Zoe's Kitchen stockholder is seeking to put off a vote on a plan to sell the Plano, Texas-based restaurant chain to a competitor, saying in a proposed class action filed in Texas federal court that the proposed $300 million deal undervalues the company.

  • October 9, 2018

    HSBC Finalizes $765M Mortgage-Backed Securities Deal

    HSBC Holdings PLC finalized a $765 million settlement Tuesday, resolving the U.S. Department of Justice's allegations that it hid risks associated with residential mortgage-backed securities sold in the years preceding the 2008 financial crisis.

  • October 9, 2018

    Supreme Court Won't Review Milberg Malpractice Suit

    The U.S. Supreme Court on Tuesday declined to review a putative class action suing Milberg LLP over an allegedly botched securities suit, upholding a Ninth Circuit ruling that a failed class action voluntarily dismissed by the suit’s named plaintiff couldn’t be revived by a potential class member.

  • October 9, 2018

    Shareholder Fires Back At Dismissal Bids In 6D Global Suit

    A 6D Global Technologies Inc. shareholder on Friday swatted back at a trio of dismissal bids in New York federal court, deriding “feeble attempts” by the company, its former directors and a private equity firm’s CEO to escape claims that they allowed the digital marketing company’s share price to be manipulated.

  • October 9, 2018

    Allstate Says Performance, Not Fraud, Caused Stock Drop

    Allstate Corp. has asked an Illinois federal judge to deny class certification to investors accusing the insurer of concealing loose underwriting in a bid to boost business, arguing that any subsequent dips in Allstate's stock were due to company performance, not fraud.

  • October 9, 2018

    SEC Wants Subpoenas Enforced For ICO Pump & Dump Docs

    The U.S. Securities and Exchange Commission has asked a California federal court to enforce its June subpoenas for documents related to an alleged pump-and-dump scheme involving shares of a real estate and construction company that supposedly financed an initial coin offering.

  • October 9, 2018

    Dutch Court Adviser Urges Dropping EU Dividend Tax Case

    Taxes imposed on foreign investment funds receiving Dutch dividends comply with European Union law, an adviser to the Netherlands’ Supreme Court said Monday, urging judges to drop a €1.3 million ($1.5 million) tax referral to EU judges.

  • October 9, 2018

    PPG Looks To Ax Securities Suit Claiming Overstated Income

    Paint maker PPG Industries has asked a California federal judge to toss a proposed class action alleging it deceived investors by overstating certain financial results, arguing it was simply an accounting mistake that resulted in a relatively minor correction.

  • October 9, 2018

    Hotel Co. Investors Say Data Breach Led To Stock Drop

    A shareholder in Chinese hotel group Huazhu Group Ltd. on Monday hit the company with a proposed class action in California federal court, claiming the hotel operator failed to adequately protect customer data from a breach in August that led to a drop in the group's stock price.

  • October 9, 2018

    Doc Guilty Of Insider Trading On Wife's Ariad Drug Info

    The ex-husband of an Ariad executive was found guilty of criminal insider trading Tuesday in Massachusetts federal court, marking a victory for prosecutors who said he saved more than $100,000 in trades based on meetings his wife had with the U.S. Food and Drug Administration about an Ariad cancer drug.

  • October 5, 2018

    Zuckerberg Seeks Chancery Cambridge Analytica Suit Toss

    Facebook asked a Delaware Chancery Court judge Friday to end a stockholder derivative suit over the social media giant’s alleged breach of fiduciary duty in covering up the Cambridge Analytica scandal, saying it was up to the company’s board, not its investors, to decide whether such litigation was necessary.

  • October 5, 2018

    Ariad Insider Trading Case Now In Boston Jury’s Hands

    The criminal trial of a Massachusetts doctor accused of insider trading headed into jury deliberations Friday, after prosecutors sought to drive home in closing arguments that he had used nonpublic information from his wife to make trades in stock of the cancer drugmaker Ariad.

  • October 9, 2018

    CORRECTED: Ex-Exec Of Modi Jewelry Co. Seeks Access To D&O Coverage

    The ex-president of a company owned by billionaire jeweler Nirav Modi on Thursday asked a New York bankruptcy court for an order allowing one of his company’s directors and officers insurance to pay for his legal defense, saying the policy proceeds are not estate property. Correction: A previous version of this story incorrectly identified the individual filing the motion. The error has been corrected.

  • October 5, 2018

    Gov't Role In Paul Weiss Probe Puts Deutsche Trial At Risk

    A New York federal judge signaled Friday that the Libor-rigging trial against former Deutsche Bank traders Matthew Connolly and Gavin Black may be in trouble, in light of "highly persuasive" evidence concerning the government's role in an internal investigation of the bank by Paul Weiss Rifkind Wharton & Garrison LLP.

  • October 5, 2018

    Ex-Racetrack Exec Tells 11th Circ. $5M Judgment Is 'Punitive'

    A former Texas racetrack executive asked the Eleventh Circuit on Friday to reverse a $4.7 million disgorgement order against him, arguing the demand was too punitive considering he had provided far more in collateral than he received in fraudulently obtained loans.

  • October 5, 2018

    Illumina Investors File Class Action Over $6.6B Stock Drop

    Illumina Inc. overestimated its profit projections by at least $18 million in 2016 even as its product sales were declining, according to a securities class action filed in California federal court Friday accusing the genetic analysis company of costing investors $6.6 billion overnight once its lackluster sales were revealed.

  • October 5, 2018

    Bondholders Seek To Appoint Receiver For Puerto Rico Utility

    A group of bondholders on Thursday renewed their call to put a receiver in charge of Puerto Rico’s electric utility, while the island’s federally appointed fiscal oversight board sought information from the governor’s office about an announced electric rate cut.

Expert Analysis

  • Series

    Judging A Book: Fogel Reviews 'Good Judgment'

    Judge Jeremy Fogel

    In this time of partisan conflict over judicial selection, a new book by Canadian jurist Robert J. Sharpe —​ "Good Judgment" — represents a refreshing, deeply thoughtful departure from binary arguments about how and why judges make decisions, says U.S. District Judge Jeremy Fogel, director of the Federal Judicial Center.

  • A Look At SEC Enforcement Against Unregistered Finders

    Joe Edmondson

    In recent years, there has been an increased interest from the U.S. Securities and Exchange Commission in enforcing Section 15(a)(1) against unregistered finders and other solicitors in private placement offerings. These violations are easy to prove, especially since no culpable state of mind is required, says Joe Edmondson of Foley & Lardner LLP.

  • 10 Ways To Prevent E-Discovery Woes

    Debbie Reynolds

    E-discovery is not easy, but employing these 10 strategies may help minimize future headaches, say Debbie Reynolds and Daryl Gardner of EimerStahl Discovery Solutions LLC.

  • The Challenges Of Valuing Litigation-Driven Equities

    Alexander Berger

    Many eyes are on the Delaware Chancery Court to see whether it will compel Fresenius to close on a $4.5 billion acquisition of Akorn. The case, which completed post-trial briefing last week, presents an interesting question about the meaning of stock price as evidence in litigation, say Alexander Berger, an investment consultant, and J.B. Heaton, a lecturer at the University of Chicago Law School.

  • 2nd Circ. Restricts The FCPA's Reach

    Brad Karp

    The Second Circuit’s opinion last week in U.S. v. Hoskins limits the U.S. Department of Justice’s ability to prosecute foreign individuals or companies for Foreign Corrupt Practices Act violations. The opinion also flatly contradicts the U.S. Securities and Exchange Commission’s 2012 FCPA resource guide, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • LLC Derivative Claims In The Wake Of Wenske

    Adrienne B. Koch

    Many limited liability companies are formed in Delaware because of the state’s well-developed and business-friendly law in this area. But a recent decision in Wenske v. Blue Bell Creameries highlights the level of care with which an LLC's governing agreement must be drafted in order to maximize these ostensible advantages, says Adrienne B. Koch of Katsky Korins LLP.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    SEC Direction Unlikely To Shift Despite Agency Transitions

    Carol Gilden

    The recent decline in U.S. Securities and Exchange Commission enforcement activities suggests that Wall Street’s top cop is less focused on rooting out corporate fraud and more focused on regulatory matters seen as favorable to corporate America. This is unlikely to change with the upcoming commissioner transitions, says Carol Gilden of Cohen Milstein Sellers & Toll PLLC.

  • Delaware Decision Clarifies MFW's Ab Initio Requirement

    Gail Weinstein

    The Delaware Chancery Court's ruling last month in Olenik v. Lodzinski is notable for providing a substantial discussion of the difference between “negotiations” and “preliminary discussions” for determining whether a merger meets MFW's “ab initio requirement” and qualifies for review under the deferential business judgment rule standard, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.