• March 9, 2018

    Transmar Cocoa CEO, Son Plead Guilty To $400M Bank Fraud

    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.

  • March 9, 2018

    Health Hires: Aronberg, Bracewell, Miles, Polsinelli, Sidley

    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.

  • March 9, 2018

    Stock Trader Cops To $3M Insider Trading Scheme

    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.

  • March 9, 2018

    US Bank, BNY Mellon Escape $280M RMBS Trustee Suit

    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.

  • March 9, 2018

    SEC Says 'Mini-Berkshire Hathaway' Pump-And-Dump Halted

    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.

  • March 9, 2018

    Dollar General Slips Investor Suit Over Gov’t Benefit Cuts

    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.

  • March 9, 2018

    Versata Challenges Ford’s Bid For Judgment In IP Suit

    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.

  • March 9, 2018

    Silent Chinese Firm's Investors Win Records Demand

    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.

  • March 9, 2018

    Penny Stock 'Mailman' Hit With Securities Fraud Charges

    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.

  • March 9, 2018

    M&G Lienholders Say Plant Sale May Not Pay Them In Full

    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.

  • March 9, 2018

    BNP, Trustee Argue Due Diligence In Madoff Clawback Suit

    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.

  • March 9, 2018

    Wilmington Trust Execs' Fraud Trial Set To Begin In Del.

    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.

  • March 9, 2018

    UBS Missed The Boat On Arbitration In Whistleblower Suit

    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.

  • March 9, 2018

    Ex-Biotech CEO Blasts SEC’s ‘Guilt By Association’ Suit

    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.’”

  • March 9, 2018

    Merlin Partners Seeks Rice Energy Stock Appraisal In Del.

    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.

  • March 9, 2018

    Investment Adviser Convicted In $1.1M Pa. Fraud Trial

    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.

  • March 9, 2018

    Shkreli Gets 7 Years In Prison For Securities Fraud

    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.

  • March 9, 2018

    Sysco To Sell $1B In New Debt, Pay $200M For Old Debt

    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.

  • March 8, 2018

    Wynn To Pay Japanese Game Maker $2.6B For 2012 Buyout

    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.

  • March 8, 2018

    Ex-NY Sports Radio Host Headed For Fall Trial In Ponzi Case

    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.

Expert Analysis

  • Reflections On 2017 FCPA Enforcement

    Mark Mendelsohn

    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.

  • How To Fix Your Broken Client Teams

    Mike O'Horo

    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.

  • Notable Trends In Foreign Securities Litigation

    Mark Willis

    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.

  • 10 Highlights From FINRA’s 2018 Priorities Letter

    Emily Gordy

    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.

  • Del. Walmart Ruling Might Bring New Derivative Strategies

    Jonathan Richman

    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.

  • 9th Circ. Decision Could Be Game-Changer For Investors

    Carol Villegas

    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.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    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.

  • DOJ Limitation On Agency Guidance Levels Playing Field

    Ronald Tenpas

    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.

  • A Big Step Toward Harmonizing Swap Trading Markets

    Stephen Humenik

    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.

  • Opinion

    Evolving Due Process In The Digital Age

    Stephen Kane

    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.