Securities

  • May 9, 2018

    Ruling On What Isn't A Security Needed For ICO Clarity

    A ruling in the case of a businessman charged with fraud in an initial coin offering in Brooklyn federal court has the potential to provide clarity on the contentious issue of whether cryptocurrency tokens are securities subject to regulation by the U.S. Securities and Exchange Commission, legal experts say.

  • May 9, 2018

    Thoratec Investors Win Cert. In Revived Stock-Drop Suit

    A group of Thoratec Corp. shareholders won class certification Tuesday in a recently revived suit claiming the medical device company hid risks linked to its heart devices, as a California federal judge concluded the company made material misrepresentations that could have reasonably misled investors.

  • May 9, 2018

    Ex-Simpson Thacher Clerk Gets Insider Trading Term Reduced

    A New Jersey federal judge on Wednesday shaved nine months from the nearly four-year prison sentence originally handed down to an ex-Simpson Thacher & Bartlett LLP clerk for his role in a $2 million insider trading scheme, noting that the clerk had not been responsible for the illicit gains of a third party he didn't know was part of the conspiracy.

  • May 9, 2018

    CEO Asks 1st Circ. To Nix $3M 'Little Red Hen' Payout

    The former CEO of a behavioral health company on Wednesday asked the First Circuit to reverse an “unprecedented” $3 million award to a class of shareholders by a federal judge citing an old folk tale, even after a jury had found the shareholders were not harmed.

  • May 9, 2018

    Investors Suing Golf Club Over Stock Price Offer Seek Cert.

    Investors allegedly duped into selling Winged Foot Golf Club undervalued shares of the public company that leased the club its land asked a New York federal court for class certification in a filing on Wednesday.

  • May 9, 2018

    SEC Penalizes Paralegal In School District Muni Bond Fraud

    A Texas paralegal with limited experience in municipal bond offerings accepted hefty fees from a school district while holding himself out as a well-versed adviser, in violation of securities laws, the U.S. Securities and Exchange Commission said on Wednesday, ordering him and his advisory firm to pay more than $500,000 in disgorgement and civil penalties.

  • May 9, 2018

    Hedge Fund Fights $2.5M Settlement In Petters Ponzi Scheme

    Hedge fund Ritchie Capital Management told a Minnesota federal judge Tuesday the district court's lack of jurisdiction to approve a $2.5 million settlement between J.P. Morgan Chase & Co. and the receivership over the assets of fraudster Thomas Petters was one of several reasons to block the deal.

  • May 9, 2018

    Hedge Fund Boss Ran $200M Mismarking Scheme, Feds Say

    A hedge fund boss led a $200 million scheme to overstate the value of his now-bankrupt fund's residential mortgage-backed securities, the federal government said on Wednesday in a newly unsealed indictment that also charged two ​of his ​co-workers.

  • May 9, 2018

    Exxon Ends Arbitration Fight After Exit From $73M Oil Row

    ExxonMobil Corp. has dropped its Texas federal court suit to escape arbitration with investors who claim they dumped $73.2 million into a failed project to explore for oil in Papua New Guinea, after the investors voluntarily dropped the company from international proceedings last week.

  • May 9, 2018

    McKinsey Critic Alleges False Ch. 11 Disclosures In RICO Suit

    A rival of McKinsey & Co. hit the global advisory firm with a lawsuit Wednesday in New York federal court for alleged racketeering violations, accusing McKinsey of intentionally failing to disclose disqualifying conflicts of interest in big bankruptcy cases.

  • May 9, 2018

    SEC Looks To Chuck Ex-Navistar CEO's Bid For EPA Info

    The U.S. Securities and Exchange Commission urged a D.C. federal judge Tuesday to punt a subpoena that the former CEO of Navistar International Corp. issued to the U.S. Environmental Protection Agency, saying it's a needless delay in the SEC's suit over allegedly misleading statements he made to investors about the company's compliance with environmental regulations.

  • May 8, 2018

    Some Soon-Shiong Claims Kept Alive In $47M Cash Tap Suit

    Delaware's Chancellor issued a formal opinion Tuesday backing up his signal in March that the Chancery Court would keep alive some investor claims that Patrick Soon-Shiong improperly tapped $47 million from Precision Biologics Inc. after acquiring a controlling stake in 2015.

  • May 8, 2018

    Wendy's Strikes Deal In Data Breach Shareholder Row

    The Wendy’s Co. and its directors have agreed to end a shareholder derivative suit alleging the company’s top brass made poor security decisions ahead of a 2016 data breach, according to a proposal in Ohio federal court that lays out new policies and a $950,000 attorneys’ fees deal.

  • May 8, 2018

    Jazz Pharmaceuticals To Pay $57M To End DOJ Inquiry

    Ireland’s Jazz Pharmaceuticals PLC has agreed to pay $57 million to resolve a U.S. Department of Justice investigation into its purported financial support of nonprofits that help Medicare patients cover out-of-pocket drug costs, according to a filing with the U.S. Securities and Exchange Commission Tuesday.

  • May 8, 2018

    Unclear If Shkreli’s Attys Can Rep His Old Co., Judge Says

    A Brooklyn federal judge halted a bid by Martin Shkreli’s old company Vyera Pharmaceuticals LLC to dismiss an ex-employee’s suit over stock he claims to have paid for but never received, saying at a hearing Tuesday Shkreli's lawyers would first have to answer for allegations that they could not represent Vyera.

  • May 8, 2018

    FINRA Sanctions Fifth Third $6M On Variable Annuity Claims

    The Financial Industry Regulatory Authority on Tuesday ordered Fifth Third Securities Inc. to pay $6 million to settle claims about the way it has run its retail variable annuities business, including complying with the terms of an earlier settlement with the regulator over similar issues.

  • May 8, 2018

    Holland & Knight Adds White Collar Atty From Foley & Lardner

    A former Foley & Lardner LLP partner who spent the last several months representing Fox host Charles Payne amid sexual harassment allegations and who previously represented a UBS AG executive amid municipal bond rigging accusations has decamped for Holland & Knight LLP's white collar team, the firm announced Monday.

  • May 8, 2018

    Visium, Ex-CFO Settle SEC Claims Tied To Trading Scandal

    The U.S. Securities and Exchange Commission on Tuesday ordered hedge fund firm Visium Asset Management LP to pay roughly $10.1 million to settle claims tied to a high-profile alleged scheme by the firm's former portfolio managers, while Visium's former chief financial officer agreed to be barred from the securities industry for a year over claims that he failed to properly supervise those same traders.

  • May 8, 2018

    Paragon Trust $1.7B Clawback Suit Halted For Arbitration Bid

    Paragon Litigation Trust's $1.7 billion clawback suit against Noble Corp., the former parent of once-bankrupt oil explorer Paragon Offshore PLC, will have to wait for a decision on whether the trust’s claims are arbitrable after a Delaware bankruptcy judge stayed the case Tuesday pending argument on Noble’s arbitration motion.

  • May 8, 2018

    Judge Mulls Whether Initial Coin Offerings Are Securities

    A Brooklyn federal judge on Tuesday heard two starkly different takes on whether digital tokens issued in an allegedly fraudulent initial coin offering were securities subject to regulation by the U.S. Securities and Exchange Commission, the first time the contentious argument has been put before a federal court.

Expert Analysis

  • Senate Regulatory Relief Bill Would Benefit Community Banks

    Joan Guilfoyle

    The Dodd-Frank rollback bill recently passed by the Senate is not as sweeping as the House’s Financial Choice Act, but for community bankers, there are a number of provisions to like, says Joan Guilfoyle of Jones Walker LLP.

  • Should We Trust The Fiduciary Rule Is Gone?

    Robert Stone

    The U.S. Department of Labor's fiduciary rule has been challenged in court by various organizations on grounds that the agency exceeded its authority in promulgating it. Those challenges culminated in a recent decision by the Fifth Circuit to vacate the rule in U.S. Chamber of Commerce v. DOL, say Robert Stone and Shannon Smith of Katten Muchin Rosenman LLP.

  • Antiquated FINRA Rules Stifle Small Co. Capital Formation

    Laura Anthony

    If OTC Markets' recently suggested changes to two Financial Industry Regulatory Authority over-the-counter rules are implemented, more small companies would access the public markets, better information would be made available to investors and the marketplace, and secondary market liquidity would improve, says Laura Anthony of Legal & Compliance LLC.

  • Applying The Business Judgment Rule To Director Pay Claims

    Robert Quirk

    When assessing a corporate board’s response to a shareholder’s “demand” to take “all necessary actions” to correct alleged compensation-related misconduct by its directors, what legal standard applies? A New York state judge's recent decision in Solak v. Fundaro helps to answer this question, say Robert Quirk and Muhammad Faridi of Patterson Belknap Webb & Tyler LLP.

  • Board Oversight Of Cybersecurity: 8 Considerations

    Jamie Gorelick

    With recent guidance from the U.S. Securities and Exchange Commission, we are at an inflection point for boards of directors in assessing how they oversee cybersecurity risks, say attorneys with WilmerHale.

  • New SEC Case Bucks The Valuation Trend

    Jesse Morton

    The U.S. Securities and Exchange Commission investigation into Deer Park Road Management’s alleged practice of undervaluing assets has many wondering why the investment manager would want to undervalue its assets. In fact, there are several incentives for a fund manager to do so, say Jesse Morton and Matt Rogers of Stout Risius Ross LLC.

  • Tax Reform’s Impact On Private Equity

    Sean Clancy

    The Tax Cuts and Jobs Act significantly changed income tax laws for individuals and business entities. Attorneys at Nixon Peabody LLP map out the provisions that will impact the private equity industry, including managers, investors and portfolio companies.

  • Rebuttal

    Crypto Developments Are Indeed Alarming

    John Reed Stark

    A recent rebuttal to our earlier Law360 guest columns asserts that cryptocurrency financiers are at no greater risk today than they have been over the last few years. But rarely in its 84-year history has the U.S. Securities and Exchange Commission been so explicit and so recurring in the public expression of its warnings and rebukes, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • PCAOB Case Expands Legal Exposure For Audit Failures

    Robert Cox

    The defense that an audit engagement partner cannot be liable for deficient work the partner did not personally perform is no longer viable after a recent decision by the Public Company Accounting Oversight Board in Koeppel. An engagement partner therefore can no longer insulate herself by delegating audit work to subordinates, says Robert Cox of Briglia Hundley PC.

  • How Senate Bill Would Change Compliance For Midsize Banks

    Christopher Allen

    The U.S. Senate last month passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, which makes modest reforms to the Dodd-Frank Act. Here, attorneys with Arnold & Porter look at the bill's notable provisions for community and midsized banks and the prospects for enactment.