A father and son pled guilty Friday in New York federal court to defrauding a group of lenders through false “borrowing base” reports designed to secure a $400 million line of credit for their cocoa trading company, Transmar Commodity Group Ltd., and face a maximum of 30 years in prison.
Aronberg Goldgehn Davis & Garmisa, Bracewell LLP, Miles & Stockbridge PC, Polsinelli PC and Sidley Austin LLP are among the firms that have seen their life sciences and health teams grow in the last few weeks.
The ringleader of a stock-trading operation on Friday copped to his role in a $3 million scheme that involved violating confidentiality agreements with investment banks and short-selling securities before offerings were publicly disclosed, New Jersey’s federal prosecutor announced.
A New York federal judge ruled Thursday that three Triaxx collateralized debt obligation issuers have run out of chances on their $280 million suit alleging U.S. Bank NA and the Bank of New York Mellon dropped the ball as trustees to several dozen residential mortgage-backed securitization trusts.
The U.S. Securities and Exchange Commission said Friday it shut down a classic pump-and-dump scheme by the president of a penny stock company who touted the business as a "mini-Berkshire Hathaway" and allegedly tried to lure in investors by lying about himself and the company.
Dollar General can exit a securities class action claiming it neglected to share the impact of cutbacks to the federal government’s food stamps program on its finances, a Tennessee federal judge said Thursday, finding investors failed to prove the retail giant and its executives intentionally misled them during earnings calls.
Versata Software Inc. fired back Friday at Ford’s attempt to get a win in its suit in Michigan federal court seeking a declaration that the automotive giant did not infringe on Versata’s patents for automobile configuration software, saying that Ford’s arguments contradict evidence on the record and even its own experts.
Delaware’s Chancery Court entered a default judgment Friday against a long-unresponsive China-based battery component maker after the company failed to send a representative to court to answer a final books and records demand from investors.
A Florida-based penny stock promoter known as "Mailman" has been charged with criminal securities fraud in Alabama federal court in a so-called scalping scheme in which he allegedly bought shares of publicly traded companies, then touted the companies through mass mailings to boost their stock prices without disclosing his ownership.
Parties holding construction liens against plastics and resin maker M&G USA Corp objected Friday in Delaware bankruptcy court to the debtor’s planned sale of a Texas plant, saying the sale price may not be enough to satisfy their liens.
BNP Paribas SA and the bankruptcy trustee for Bernie Madoff’s investment company argued Friday before a New York bankruptcy judge over whether the French bank was a negligent steward or merely an innocent dupe as they contested an attempt to make BNP and its affiliates pay $156 million for accepting money from Madoff’s Ponzi scheme.
Federal prosecutors were poised for a second time Friday to take four Wilmington Trust Corp. executives to trial in Delaware on securities fraud and related charges for allegedly hiding more than $1 billion in past due loans, in a case that will likely hinge on disputed loan status reporting mandates.
A bid by UBS Financial Services Inc. to force a former executive’s whistleblower claims into arbitration is too little, too late, a New Jersey federal judge said Thursday, finding the arbitration agreements were valid but UBS waited an inordinate amount of time to try and enforce them.
The former CEO of a biotech research company slammed the U.S. Securities and Exchange Commission on Thursday in Maryland federal court, saying an amended complaint claiming he and other executives duped an auditor into allowing them to book $1.1 million in fake revenue still doesn’t allege any wrongdoing on his part and is a “misguided attempt of ‘guilt by association.’”
Hedge fund Merlin Partners LP asked Delaware’s Chancery Court Thursday to determine how much its stake in Rice Energy Inc. is worth, now that a contentious $6.7 billion merger between Rice and fellow natural gas producer EQT Corp. has wrapped up.
A Nevada investment adviser was convicted by a Pennsylvania federal jury of defrauding investors of $1.1 million Thursday, following a 2017 conviction in New York federal court in a $131 million investment scheme.
Notorious former pharmaceutical executive Martin Shkreli was sentenced Friday to seven years in prison on his conviction for defrauding investors in his ailing hedge funds and conspiring to game biotech Retrophin Inc.'s stock price to pay off his debts.
Global food distributor Sysco Corp. said Thursday it has priced $1 billion of new debt and plans to buy as much as $200 million of debt from investors in a cash tender offer.
Counsel for Universal Entertainment Corp. said Thursday the Japanese casino game maker reached a $2.63 billion settlement with Wynn Resorts Ltd., arising from Wynn’s forced 2012 buyout of Universal’s 20 percent stake in its shares following allegations that its chairman violated anti-corruption laws.
A Manhattan federal judge on Thursday set an October trial date for a former New York sports radio host accused of running a Ponzi scheme by taking millions of dollars from investors who believed they were buying into a ticket resale venture for concerts by artists including Adele and Katy Perry.
Despite significant Foreign Corrupt Practices Act enforcement activity in 2017, the Trump administration’s approach remains elusive and not readily characterized. The manner in which investigations are resolved in the coming year may help illuminate whether the current government will be more lenient toward U.S. companies than the Obama administration, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.
Law firms claim they create client teams to improve service. Clients aren’t fooled, describing these initiatives as “thinly veiled sales campaigns.” Until firms and client teams begin to apply a number of principles consistently, they will continue to fail and further erode clients’ trust, says legal industry coach Mike O’Horo.
In recent years, investors have been successful in securing significant recoveries overseas through group actions despite the fact that U.S.-style, opt-out class actions do not exist in most foreign forums. With the foreign securities litigation field now bustling, investors will increasingly need to navigate potential pitfalls, say Mark Willis and Rachel Avan of Labaton Sucharow LLP.
The Financial Industry Regulatory Authority's annual regulatory and examination priorities letter is a road map to areas on which FINRA will focus in the coming year. Firms must use this information to assess strengths, identify gaps and shore up weaknesses, says Emily Gordy, a partner at McGuireWoods LLP and a former senior vice president at FINRA.
The Delaware Supreme Court's recent decision in a Walmart derivative suit should enhance defendants' ability to obtain dismissal of duplicative derivative actions on preclusion grounds. The ruling might also cause plaintiffs to take steps to appear in multiple forums to avoid preclusion risks, says Jonathan Richman, co-head of the securities litigation group at Proskauer Rose LLP.
The Ninth Circuit on Wednesday issued an important decision in Mineworkers' Pension Scheme v. First Solar that serves to protect investor rights in securities class actions and will prevent companies that commit fraud from evading liability, say Carol Villegas and James Christie of Labaton Sucharow LLP.
While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.
A new memo from the U.S. Department of Justice prohibiting DOJ litigators from treating any agency guidance document as binding offers needed relief to regulated parties, giving them a greater opportunity to push back against enforcement theories that rely on “clear” guidance regarding an underlying ambiguous or silent statute, say Ronald Tenpas and Gregory Etzel of Morgan Lewis & Bockius LLP.
With a recent order from the U.S. Commodity Futures Trading Commission, swap trading market participants are now able to satisfy trading mandates in both the U.S. and the EU. Without this combined effort of regulators, swap dealers and traders would have faced a fragmented market this year, say Stephen Humenik and Uttara Dukkipati of Covington & Burling LLP.
Because courts have not modernized as quickly as companies like Amazon, Tesla and Apple, Americans are becoming increasingly dissatisfied, but technological innovations may be able to help Americans access their due process, says Stephen Kane of FairClaims.