Securities

  • July 18, 2017

    SEC Blasts Trader's Challenge To Its Cooperation Program

    The U.S. Securities and Exchange Commission told the Second Circuit on Monday that it didn't violate the constitutional rights of a former Barclays Capital Inc. bond trader when it signed a cooperation agreement with his alleged co-conspirator from a stock-parking scheme.

  • July 18, 2017

    Senate Agriculture Lawyer Picked For Dems' Spot On CFTC

    A top lawyer with the U.S. Senate Agriculture Committee who previously worked in the New Jersey Attorney General's Office was nominated by the White House on Monday for a Democratic seat on the U.S. Commodity Futures Trading Commission.

  • July 18, 2017

    Investors Blast Polaris' Bid To Nix Suit Over Recalls

    Off-road vehicle manufacturer Polaris can’t pass off alleged misrepresentations about potential risks to the company’s business as simple mismanagement while its vehicles burst into flame and injured customers, a proposed class of investors told a Minnesota federal court Monday.

  • July 18, 2017

    ESMA Chides UK Watchdog Over Financial Data Scrutiny

    Britain’s financial reporting watchdog was criticized Tuesday by the European Securities and Markets Authority for failing to enforce European Union rules governing the supervision of financial information used in equity and bond issuances.

  • July 18, 2017

    Capital Bank Investor Sues Over $2.2B First Horizon Deal

    Capital Bank Financial Corp. brass secured special deals for themselves while the bank withheld or misrepresented information about its proposed $2.2 billion sale to First Horizon National Corp., an investor alleged Monday in North Carolina federal court.

  • July 18, 2017

    Nasdaq Fights Bid To Move Unsettled Facebook IPO Cases

    Nasdaq Inc. on Tuesday asked a New York federal judge not to send two cases brought by early buyers of Facebook Inc.’s public stock back to the Texas court they came from, saying that discovery has barely begun and it would be inefficient to send the cases back so soon.

  • July 18, 2017

    Pa. Consultant Gets 5 Years In $3.5M Foreign Bribery Scheme

    The former owner of a suburban Philadelphia financial consultancy who pled guilty last year to funneling $3.5 million in bribes to a European banking official received a five-year prison sentence Tuesday in Pennsylvania federal court.

  • July 18, 2017

    Royal Park Blasts HSBC's Discovery Bid In RMBS Case

    Royal Park Investments SA/NV argued in New York federal court Monday that HSBC Bank USA NA is wasting judicial resources by demanding access to unredacted foreign documents in a suit over allegedly toxic residential mortgage-backed securities.

  • July 18, 2017

    House Republicans Lay Out Tax Reform, Spending Plans

    House Republicans on Tuesday unveiled their financial plan for the government next fiscal year, paving the way for tax reform tied to spending cuts in regulations, employee benefits and welfare benefits.

  • July 18, 2017

    NY Bankruptcy Judge Strikes MF Global Insurer's $15M Bond

    Defunct brokerage MF Global’s excess insurer Allied World must post a new $15 million bond as part of its attempt to arbitrate a coverage dispute in Bermuda, a New York bankruptcy judge said Monday, finding the current bond should be stricken for flouting state insurance law.

  • July 18, 2017

    FCA Chief Warns EU Brexit Strategy Could Undermine City

    The chief executive of Britain’s financial regulator hit out at European regulators on Tuesday for using Brexit to single out and potentially destabilize the U.K.’s financial sector.

  • July 17, 2017

    Shkreli Investor Irked By Loss, But Then Cashed In Big

    An investor in Martin Shkreli-run hedge funds told the Brooklyn federal jury hearing securities fraud allegations against the pharma bad boy Monday that he saw his investment value plunge and was denied the promised opportunity to recoup his cash, but like others ended up in the black with the stock of drug company Retrophin Inc.

  • July 17, 2017

    DC Circ. Gives Investors 2nd Chance At Fannie Claims

    A panel of the D.C. Circuit that earlier this year rejected challenges to the federal government’s control of housing financiers Fannie Mae and Freddie Mac amended its decision on Monday to give two investors another chance with some of their claims.

  • July 17, 2017

    9th Circ. Urged To Revive Las Vegas Sands Shareholder Suit

    Shareholders in Las Vegas Sands Corp. have urged the Ninth Circuit to revive their class action accusing the casino operator of misleading investors about its development pipeline, arguing that a Nevada federal court was too quick to let the company off the hook.

  • July 17, 2017

    $1B Paragon Ch. 11 Gets Last-Minute Delay In Rig Handoffs

    Hoping to make its more than $1 billion Chapter 11 reorganization effective this week, Paragon Offshore PLC secured Delaware bankruptcy court approval Monday for a delayed transfer of drilling rig leases to its U.K. successor.

  • July 17, 2017

    Gilead Backs Chancery In Appeal Of $50M Merger Bonus Suit

    Pharmaceutical firm Gilead Sciences Inc. filed an answering brief Monday to the Delaware Supreme Court defending the decision of the state’s Chancery Court after a trial over a $50 million merger bonus payment sought by acquisition target Calistoga Pharmaceuticals Inc.

  • July 17, 2017

    Chancery-Ordered TransPerfect Mediation Hits Impasse

    The Delaware Chancery Court-ordered mediation aimed at resolving years of vitriolic litigation over legal translation firm TransPerfect has reached an impasse, court records indicated Sunday, with the case still on track for the company to be sold by a court-appointed custodian over fierce objections from its co-founder.

  • July 17, 2017

    Ex-TelexFree Director Settles In SEC Suit Over Alleged Scam

    A Boston federal judge on Monday ordered a Massachusetts man to pay $25,000 in disgorgement and interest to end the U.S. Securities and Exchange Commission's claims against him over his role in TelexFree LLC's alleged pyramid scheme targeting immigrants in Brazilian and Dominican communities.

  • July 17, 2017

    11th Circ. Says Fed. Workers Can’t Sue Over Ponzi Scheme

    The Eleventh Circuit on Monday ruled a group of federal employees who lost $30 million in a Ponzi scheme can’t sue the government for hiring the schemer who gave them advice, finding sovereign immunity applies because the workers’ claims were based on misrepresentations.

  • July 17, 2017

    BNP Paribas To Pay $246M More For Bad Forex Compliance

    The Federal Reserve said Monday that French financial giant BNP Paribas SA would pay $246 million for lax oversight of its foreign exchange traders, the second major penalty the bank has agreed to pay for misconduct that could land one BNP Paribas trader in prison.

Expert Analysis

  • Index Eligibility As Governance Battlefield

    Ethan Klingsberg

    The recently launched campaign by the Council of Institutional Investors, among others, to block Snap Inc.’s eligibility for S&P Dow Jones and other indices may be looked back on as a turning point in an expansion of the governance battlefield. Recent developments in the realm of dual-class issuers shed light on whether this potential movement of governance matters into index eligibility criteria is sensible, says Ethan Klingsberg ... (continued)

  • The Misconception About SWS Appraisal Decision

    Gail Weinstein

    The Delaware Chancery Court’s recent decision in SWS Group raises the question whether below-the-merger-price appraisal results will now become more common. A number of commentators have suggested that the answer is yes, but their conclusion follows what we believe to be a misconception, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.

  • Clarifying Anti-Retaliation Protections Under Dodd-Frank

    Stephen Kohn

    What protections are available under the Dodd-Frank Act’s whistleblower law if an employee reports securities fraud within the company? Courts have pointed to two separate definitions of “whistleblower” under the law to justify their differing positions. However, a more careful review of its history should resolve this prolonged dispute, says Stephen Kohn of Kohn Kohn and Colapinto LLP.

  • A Resurgence Of Synthetic Securitizations

    Daniel Budofsky

    After a major market contraction in the wake of the financial crisis, risk-pooling transactions show signs of gaining favor once more, says Daniel Budofsky of Pillsbury Winthrop Shaw Pittman LLP.

  • How Kokesh Will Impact The FTC And Other Agencies

    Benjamin Mundel

    The U.S. Supreme Court's recent decision in the Kokesh case limits not just U.S. Securities and Exchange Commission enforcement actions, but also monetary relief sought by other agencies, like the Federal Trade Commission. A faithful application of this decision should lead to courts rejecting these agencies' long-standing practice of seeking penal monetary relief under their equitable authority, say Benjamin Mundel and Lucas Crosl... (continued)

  • The Future Of The 1933 Act

    Joseph McLaughlin

    The U.S. Securities and Exchange Commission has brought about significant changes to the procedures contemplated by the original Securities Act of 1933, but it is surprising how little the overall scheme has changed. On the other hand, conditions in the securities markets have changed dramatically since 1933, says Joseph McLaughlin of Sidley Austin LLP.

  • Tax Deductibility And Statutory Damages — A Waiting Trap

    Peter Robbins

    Statutory damages guarantee a minimum recovery in each individual case where a violation may cause only nominal damage. But aggregated statutory damages in class actions can create a risk of staggeringly large awards, which may not be tax-deductible. Companies must know the law and take steps to minimize tax consequences, says Peter Robbins of Corbett & Robbins LLP.

  • Weekly Column

    Innovating For Wise Juries: Juror-Posed Questions

    Roy Futterman

    One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Big Changes For Small-Equity Investment Accounting

    Leslie Silverman

    A new standard that will require companies to generally change the way they account for equity investments of less than 20 percent has largely flown under the radar, but the changes from past practice are significant. The new accounting standard could have a ripple effect on a company’s balance sheet and results of operations, say Leslie Silverman and Andrea Basham of Cleary Gottlieb Steen & Hamilton LLP.