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Securities

  • June 12, 2018

    Watchdog Says DOL Is Stalling On OT, Fiduciary Rule Info

    A government watchdog that last year sued the U.S. Department of Labor seeking records related to its overtime and fiduciary rules told a Washington, D.C., federal judge Monday that it’s “concerned” the agency hasn’t been as forthcoming about its record searches as it should be.

  • June 12, 2018

    Ex-Oil Co. VP Fights SEC Disgorgement Bid Over EB-5 Scam

    A former official at Luca International Group LLC accused of helping perpetrate a $68 million Ponzi-esque scheme involving the EB-5 immigrant investor program told a California federal judge on Monday that she doesn’t owe authorities disgorgement and civil penalties, saying she was clueless as to the alleged securities violations.

  • June 12, 2018

    Pharma CEO Cops To $2M Drug Investment Fraud

    An Illinois man accused of pocketing about $2 million from investors in his Wisconsin pharmaceutical company by lying about his work surrounding an experimental drug pled guilty to a single count of wire fraud Tuesday.

  • June 12, 2018

    CFTC Says Fla. Woman Stole $870K In Precious Metals Fraud

    The Commodity Futures Trading Commission filed a civil enforcement action in Florida federal court on Tuesday alleging that the sole officer of a Boca Raton-based company defrauded three customers out of $870,000 in illegal, off-exchange retail commodity transactions for precious metals that they never received.

  • June 12, 2018

    SEC Claims Fla. Couple Defrauded Investors In Shopping App

    The U.S. Securities and Exchange Commission has obtained a temporary restraining order and emergency asset freeze to stop an allegedly ongoing investment fraud scheme purportedly carried out by a South Florida couple who claimed to be developing an internet shopping application, the agency announced Monday.

  • June 12, 2018

    Locke Lord Adds FINRA Arbitrator, Greenberg Traurig Alum

    Locke Lord LLP has added a former Greenberg Traurig LLP shareholder and Financial Industry Regulatory Authority arbitrator and mediator with nearly 30 years of securities industry experience as a partner in its West Palm Beach, Florida, office.

  • June 12, 2018

    Hospital Plaza Transfer Sank PE Firm's Deal, 3rd Circ. Told

    A private equity firm on Tuesday urged the Third Circuit to revive its $5 million case against a New Jersey hospital over the firm's would-be acquisition of a medical plaza under foreclosure, arguing that an ownership transfer that sank the sale ran afoul of the purchase deal.

  • June 12, 2018

    Pet Pharma Co. Sidesteps Investor Suit Over Dog Drug Delays

    A veterinary pharmaceutical company likely didn't mislead investors about the timeline for bringing an appetite stimulant for dogs to market, a New York federal judge said in dismissing a proposed securities class action alleging that a delay in the drug's availability caused the company's stock to nosedive.

  • June 12, 2018

    Merrill Lynch To Pay $16M To Settle RMBS Scam Claims

    The U.S. Securities and Exchange Commission on Tuesday said brokerage firm Merrill Lynch Pierce Fenner & Smith Inc. will pay nearly $16 million to settle allegations its employees knowingly overcharged customers who purchased residential mortgage-backed securities.

  • June 12, 2018

    Rosen Law To Lead AMD Investor Suit Over Chip Flaw

    A California federal judge appointed The Rosen Law Firm PA as lead counsel for investors who sued Advanced Micro Devices Inc. when the company’s share price dropped following a revelation that its chips were more vulnerable to a security flaw than had been previously disclosed.

  • June 12, 2018

    Wilson Sonsini Nabs Squire Patton Tech, Life Sci Pro In LA

    Wilson Sonsini Goodrich & Rosati PC has scored a corporate attorney in Los Angeles from Squire Patton Boggs LLP with significant experience representing technology, life sciences and other growth companies in the United States and internationally, the firm announced Monday.

  • June 12, 2018

    CPI Says Investor Is Unfit To Lead $173M IPO Suit

    In opposition to a class certification bid, CPI Card Group Inc. told a New York federal court on Monday that a man seeking to represent a class of investors accusing the chip-enabled card maker of misleading them in a $172.5 million initial public stock offering has a lack of familiarity with the case that makes him unfit for the task.

  • June 12, 2018

    Investors Fight Former DNC Chair’s Bid To Nix Visa Scam Suit

    A group of Chinese investors have asked a Virginia federal judge to let them move forward with their claims that they were swindled out of more than $500,000 each in an alleged visa scheme run by former Gov. Terry McAuliffe and Anthony Rodham, the brother of Hillary Clinton.

  • June 12, 2018

    InterOil Insider Traded On Merger Info, SEC Says In Suit

    The U.S. Securities and Exchange Commission launched a lawsuit in New Jersey federal court Tuesday against a onetime personal assistant to an InterOil Corp. board member for allegedly engaging in insider trading based on confidential information about Oil Search Ltd.'s proposed acquisition of the energy company.

  • June 12, 2018

    Credit Suisse Wins 3-Year Limit On Martin Act Suits

    New York's highest court ruled Tuesday that the state attorney general could only sue under the Martin Act, a powerful tool for financial crimes enforcement, for three years after alleged violations, rejecting prosecutors' argument for a six-year limit and handing a victory to Credit Suisse.

  • June 12, 2018

    Tilton Balks At $500K White & Case Role In Zohar Ch. 11

    Financier Lynn Tilton and her investment firm Patriarch Partners LLC objected Monday to the appointment of White & Case LLP under a $500,000 retainer as counsel to an independent director assigned to the Delaware Chapter 11 cases of her Zohar funds.

  • June 12, 2018

    Ex-Barclays Trader Key Player In Euribor Fix, Jury Told

    It is “blindingly obvious” that two former senior traders at Barclays PLC and Deutsche Bank AG were the main players in a "conspiracy" to game the financial system by rigging Euribor to benefit their trading positions, a prosecutor for the Serious Fraud Office told a London jury Tuesday.

  • June 11, 2018

    Insurer Says US Bank Struck Lowball Settlement As CYA Move

    RMBS trust insurer Ambac sued trustee US Bank in New York federal court on Friday, saying US Bank wrongly settled $374 million worth of claims over bad Countrywide loans for just $94 million, partly to head off a finding that US Bank was a fiduciary, which could "ripple" through to other RMBS litigation against the bank.

  • June 11, 2018

    Ex-KPMG Partner Says Feds Sitting On Evidence

    A former audit partner at KPMG LLP has asked a Brooklyn federal judge to make prosecutors look for exculpatory evidence in files belonging to the U.S. Securities and Exchange Commission and an accounting oversight group, saying both were essentially part of the prosecution team.

  • June 11, 2018

    Ex-Wilmington Bank Execs Slam Convictions, Seek Acquittal

    Four ex-Wilmington Trust executives attacked their May convictions on federal securities fraud and conspiracy charges late Friday, demanding acquittal or new trials and accusing the government of missteps ranging from changing theories mid-trial to lacking evidence of criminal intent to conceal past due commercial loans.

Expert Analysis

  • SEC Proposal Strikes At The Heart Of Broker-Dealer Model

    Steven Lofchie

    The U.S. Securities and Exchange Commission's proposed best-interest requirement for broker-dealers would likely discourage the offering of “full-service” brokerage and encourage alternatives, such as “discount” brokerage and fee-based advisory accounts, says Steven Lofchie of Cadwalader Wickersham & Taft LLP.

  • Data Breach Disclosure Lessons From SEC's $35M Yahoo Fine

    Michael Dicke

    The $35 million fine levied against Altaba, formerly known as Yahoo, marks the first time that the U.S. Securities and Exchange Commission has alleged that a company’s failure to disclose a data breach violated the federal securities laws. This enforcement action may also give breach-related securities class actions new life, say Michael Dicke and Alexis Caloza of Fenwick & West LLP.

  • Series

    State Tax After TCJA: Treatment Of International Income

    Jeffrey Friedman

    The Tax Cuts and Jobs Act made sweeping changes to the Internal Revenue Code. Its international tax provisions — including the transition tax, the foreign-source dividends received deduction, the tax on global intangible low-taxed income and others — have far-reaching implications for state tax systems that broadly conform to the IRC, and present significant compliance burdens for taxpayers, say attorneys with Eversheds Sutherland LLP.

  • Smarter, Faster, Stronger: A New Suite Of VC Model Docs

    Samuel Waxman

    For the first time in four years, the National Venture Capital Association recently updated its model legal documents. The latest drafts not only reflect the necessity for quick transactions and bespoke solutions to unique problems facing venture capital investors, but they anticipate needs that will arise in this ever-evolving industry, say attorneys with Paul Hastings LLP.

  • Safeguards Against State, Parallel Proceedings Post-Cyan

    Shayne Clinton

    With the U.S. Supreme Court's decision in Cyan v. Beaver County opening up more forums to securities class action plaintiffs, newly public companies or other registered offerors will face possible duplicative actions in state and federal courts. However, companies are not left without any weapons in the arsenal, say Shayne Clinton and Britt Latham of Bass Berry & Sims PLC.

  • Opinion

    SEC Needs To Better Understand Cryptocurrency Industry

    Harvey Kesner

    While subpoenas fly and much confusion surrounds unregistered initial coin offering sales, the U.S. Securities and Exchange Commission staff struggles to grasp the evolving businesses around blockchain. The staff is grinding out ill-fitted comments to issuers, relying on assumptions incompatible with this brand-new industry, says Harvey Kesner of Sichenzia Ross Ference Kesner LLP.

  • Series

    Judging A Book: Berzon Reviews 'We The Corporations'

    Judge Marsha Berzon

    My advice to prospective clerks will now include the suggestion that they read Adam Winkler's new book, "We the Corporations: How American Businesses Won Their Civil Rights," for the same reason I recommend taking a corporations course — appreciating the critical role of business corporations in American life and law, says Ninth Circuit Judge Marsha Berzon.

  • What ABA’s Position On Harassment Means For Employers

    Minjae Song

    In the #MeToo era, the American Bar Association’s recently passed Resolution 302 is a reminder of harassment policy best practices to all employers, and it should be of particular interest to employers in the legal industry, say attorneys with Hunton Andrews Kurth LLP.

  • Takeaways From 2nd Circ. Reversal Of Litvak Conviction

    Harry Sandick

    One wonders if the Second Circuit’s reversal of Jesse Litvak’s securities fraud conviction in the District of Connecticut, together with prosecutors’ recent loss at trial in United States v. Demos, will impact the government’s decision to prosecute further the other bond traders who are currently facing charges in the same courthouse, say Harry Sandick and Michael Schwartz of Patterson Belknap Webb & Tyler LLP.

  • A Closer Look At SEC Guidance On Investment Adviser Fees

    Sonia Gioseffi

    A risk alert recently issued by the U.S. Securities and Exchange Commission identifies the top fee and expense deficiencies from over 1,500 examinations over the last two years, providing valuable information for investment advisers. This guidance should serve as more than a warning, say attorneys with K&L Gates LLP.