Securities

  • May 17, 2017

    Future CFTC Chair Announces New Tech Initiative

    Acting U.S. Commodity Futures Trading Commission Chairman J. Christopher Giancarlo, currently awaiting confirmation as the agency’s permanent chair, announced Wednesday a new initiative to help the agency catch up and respond to rapidly transforming digital markets.

  • May 17, 2017

    Recalcitrant Hedge Fund Boss's Passport Released By Court

    Former hedge fund boss Chetan Kapur is out of a New York City jail for contempt of two fraud judgments valued at about $10 million, and his Indian passport was released Wednesday, but a court filing also showed the recalcitrant judgment debtor was being held on an immigration detainer.

  • May 17, 2017

    Bipartisan Bill Again Calls For Transparency In Settlements

    Democratic U.S. Sen. Elizabeth Warren and Republican U.S. Sen. James Lankford on Tuesday reintroduced legislation requiring greater transparency of settlements companies and individuals enter into with federal agencies, including a disclosure of tax deductible amounts or other credits that affect the actual dollar figure.

  • May 17, 2017

    German Prosecutors Probe VW Execs In Emissions Scandal

    German prosecutors said on Wednesday that they were investigating the current chief executive of Volkswagen, Matthias Müller, as well as his predecessor and the automaker’s chairman on suspicions of market manipulation related to the emissions-cheating scandal that burst in the fall of 2015.

  • May 17, 2017

    Oil Driller Sucking Fund Into 'Death Spiral,' Judge Told

    A fund that lent money to oil and gas driller Camber Energy Inc. only to be sued for converting its debt into Camber stock asked a Texas federal judge on Tuesday to give the fund a way to sell the shares before Camber’s “death spiral” whittles the stock price even further.

  • May 17, 2017

    Senate Bill Would Ease Stress Testing For Small Banks

    A bipartisan Senate bill introduced Wednesday would eliminate stress testing requirements on smaller banks by lifting the threshold for mandating those tests of banks' ability to survive a crisis to $50 billion.

  • May 17, 2017

    Jive Software's $462M Sale Undervalues It, Investors Say

    A proposed class of Jive Software Inc. shareholders filed suit in California federal court Tuesday to challenge the business communications company’s $462 million sale to ESW Capital LLC affiliate Wave Systems, claiming investors are being shortchanged by the deal.

  • May 17, 2017

    Snap Hit With Investor Suit Claiming Misleading Metrics

    An investor in Snap Inc. hit the social media company and its senior officers with a proposed class action in California federal court on Tuesday, claiming that the registration statement for the company’s $3 billion initial public offering contained misleading information about Snap’s user growth.

  • May 17, 2017

    Bernstein Litowitz Bumps Motley Rice In Wells Fargo Case

    An asset management company heading a proposed securities class action alleging that Wells Fargo misrepresented its cross-selling activities has asked a California federal judge for permission to replace Motley Rice LLC with Bernstein Litowitz Berger & Grossmann LLP as lead counsel.

  • May 16, 2017

    SEC Pursuing MBS Traders Despite Prosecutors’ Early Flop

    The U.S. Securities and Exchange Commission’s civil case against two former traders alleging they lied to customers about prices for mortgage-backed securities is the second such case the agency has brought in two weeks, a sign it is forging ahead on bond cases while federal prosecutors hesitate in the wake of a significant criminal trial loss.

  • May 16, 2017

    Lloyd's $65M Stanford Scam Deal OK'd; Attys Get $14M

    A Texas federal judge approved amid objections on Tuesday a $65 million deal resolving allegations Lloyd’s of London and other underwriters should cover losses from R. Allen Stanford’s $7 billion Ponzi scheme, and awarded $14 million in attorneys’ fees to counsel representing the receiver in the insurance dispute.

  • May 16, 2017

    SunEdison Creditors Committee In Position To Vote For Plan

    Groups of SunEdison Inc. creditors said Tuesday they have overcome an impasse on issues that threatened to derail the bankrupt green energy giant’s path out of Chapter 11, telling a New York bankruptcy judge that mediation talks have successfully led to settlement terms.

  • May 16, 2017

    Texas State Sen. Indicted For Fracking Sand Fraud, Kickbacks

    A Texas state senator was indicted by a federal grand jury Tuesday in connection with two alleged fraud schemes, one selling investments in an alleged Ponzi scheme that marketed sand used for fracking, and another involving alleged kickbacks for a medical services contract at a county jail.

  • May 16, 2017

    Texas Appellate Panel Stays Paxton Fraud Proceedings

    A Texas appellate panel on Tuesday granted a request from Texas Attorney General Ken Paxton to stay felony securities fraud proceedings against him as he seeks to challenge orders surrounding a change of venue from Collin County to Harris County and prohibit the judge who ordered the venue change from presiding.

  • May 16, 2017

    Mobileye Trader's Cash Deals Draw Judge's Scrutiny

    A New York federal judge on Tuesday extended a freeze on the assets of a Virginia-based landscaper accused of insider trading related to Intel Corp.'s $15.3 billion acquisition of Israeli tech company Mobileye NV and ordered his counsel to investigate his client's cash business transactions.

  • May 16, 2017

    Malaysian Family Wants Some US Gov't Seizure Bids Tossed

    A family that the U.S. government says benefited from money stolen from a Malaysian sovereign investment fund asked a Los Angeles federal judge on Monday to dismiss the government’s efforts to seize New York real estate, a jet and music publishing rights, saying there’s no link to California in those cases.

  • May 16, 2017

    Ex Le-Nature's CEO Can't Escape Plea Deal, 3rd Circ. Says

    The Third Circuit on Tuesday rebuffed another attempt by the former CEO of now-defunct Le-Nature's Inc. to be released from a 2011 plea deal he struck with the government that resulted in a 20-year prison sentence for his role in a $668 million accounting fraud.

  • May 16, 2017

    Ex-InterMune Director Barred From Boards For Insider Trading

    A California federal magistrate judge on Monday permanently barred a former InterMune Inc. director from serving as an officer or director in a publicly traded company and refused to toss a jury verdict convicting him and a friend of insider trading. 

  • May 16, 2017

    Insurer Must Prove All Elements Of RMBS Fraud, Court Says

    A New York appeals court ruled Tuesday that bond insurer Ambac Assurance Corp. cannot use state insurance law to get out of proving loss causation in its suit alleging Countrywide Financial Corp. fraudulently induced it into issuing unconditional and irrevocable insurance policies on mortgage-backed securities.

  • May 16, 2017

    Ex-Snap Employee Says User Metrics Concerns Led To Firing

    Snap Inc. was slapped with a whistleblower suit in California federal court on Tuesday by a former employee who has accused the social media company and its executives of using faulty growth metrics ahead of its initial public offering and pressuring him to spill secrets from a past job.

Expert Analysis

  • Series

    Evaluating FCPA Pilot Program: Lessons And Expectations

    Erin G.H. Sloane

    Over the course of the Foreign Corrupt Practices Act pilot program so far, the U.S. Department of Justice has further defined what full cooperation and remediation looks like, refusing to provide full credit in instances in which companies failed to live up to its standards, say attorneys with WilmerHale.

  • The Complexities Of Winding Down A Hedge Fund

    Finbarr O’Connor

    Hedge fund mortality is commonplace, yet it is an infrequently examined subject. As the U.S. Securities and Exchange Commission considers issuing guidance that could require mandatory transition planning for all registered investment advisers, understanding the various elements of a fund wind-down has become important, says Finbarr O’Connor of Berkeley Research Group LLC.

  • Lawyers In Flow: Get Out Of Your Head And Into Your Case

    Jennifer Gibbs

    If Time Magazine is correct in that being a lawyer is one of the five worst high-paying jobs, it may be time for the legal profession to pull one from the playbook of musicians and professional athletes and seek to enter a state of “flow,” says Jennifer Gibbs of Zelle LLP.

  • Utah Court Bites Bullet With Dodd-Frank Jurisdiction Ruling

    Jonathan E. Richman

    The Dodd-Frank Act amended the securities laws to give federal courts “jurisdiction” over securities claims alleging significant U.S.-based conduct or effects, regardless of the location of the actual transactions. A Utah federal court's recent decision in Traffic Monsoon appears to be the first to squarely resolve the alleged drafting problem in Dodd-Frank, says Jonathan Richman of Proskauer Rose LLP.

  • Series

    Evaluating FCPA Pilot Program: The Data, The Trends

    Ryan J. Rohlfsen

    The U.S. Department of Justice's application of the Foreign Corrupt Practices Act pilot program over the last year has yielded some degree of consistency. Cooperation, monitorships and self-disclosure have emerged as key considerations for companies investigating potential misconduct, say attorneys with Ropes & Gray LLP.

  • Material-Event Disclosures Under New SEC Proposal

    Richard B. Stephens

    It is likely that municipal issuers will not want to judge the materiality of each event or circumstance under the U.S. Securities and Exchange Commission’s recently proposed material-event notice requirements. In most instances, issuers will likely post the full text of each applicable agreement on the Electronic Municipal Market Access system, which could defeat the purpose of disclosure, say attorneys with Holland & Knight LLP.

  • Series

    Evaluating FCPA Pilot Program: A Look At SEC Involvement

    Luke T. Cadigan

    The U.S. Securities and Exchange Commission played a prominent role in the first year of the U.S. Department of Justice’s Foreign Corrupt Practices Act pilot program. Indeed, in those cases under the program in which the DOJ publicly declined to take action and the SEC could take action, the SEC did take action, say Luke Cadigan and Michael McMahon of Cooley LLP.

  • Satire

    A Law Firm Ranking Model By 'Fake News & Distorted Reports'

    Alan B. Morrison

    Suffering from law firm ranking fatigue? Bewildered by the methodologies? If so, you're in good company. Alan Morrison, associate dean for public interest and public service law at George Washington University Law School, wonders just how far law firm ranking efforts may go.

  • Series

    Evaluating FCPA Pilot Program: A Shift In Company Thinking?

    Mona Patel

    For a company considering whether to take the affirmative step of voluntary self-disclosure under the Foreign Corrupt Practices Act pilot program, it is difficult to ascertain precisely what could account for the difference between obtaining a declination, a 50 percent reduction in potential penalties or a 30 percent reduction in potential penalties, says Mona Patel of Covington & Burling LLP.

  • Scrap The Conflict Minerals Report? Not So Fast

    Dynda A. Thomas

    Those hoping for updated U.S. Securities and Exchange Commission guidance that would relieve or reduce companies’ conflict minerals diligence and disclosure obligations got only a fraction of what they wanted from last week’s SEC statements, says Dynda Thomas of Squire Patton Boggs LLP.