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Securities
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April 28, 2025
Wells Fargo Tells Judge Cash Sweep 'Conflict' Was Disclosed
Wells Fargo said it should be allowed to escape customers' proposed class action alleging the bank's cash sweep investment program disproportionately benefits the bank, arguing it disclosed in its signed agreements with customers the bank's intentions to secure financial gains for itself through the program.
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April 28, 2025
Tax Services Provider Andersen Files Confidential IPO Plans
Tax and legal services provider Andersen Group Inc. said Monday it confidentially filed for an initial public offering, marking a first step toward going public amid market volatility that has largely frozen IPOs in recent weeks.
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April 28, 2025
Wells Fargo Says Atty Is To Blame For SEC's EB-5 Fraud Suit
An immigration attorney claiming a Wells Fargo adviser led her astray has no one to blame but herself for being sued by the U.S. Securities and Exchange Commission for EB-5 investment fraud, the company told a Nevada federal court.
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April 28, 2025
5th Circ. Grants DOL 30-Day Stay In States' ESG Rule Appeal
The Fifth Circuit on Monday granted the U.S. Department of Labor's request to stay an appeal from Republican-led states in a suit challenging the agency's rule that allows retirement fiduciaries to consider issues like climate change and social justice when choosing investments, but limited the pause to 30 days.
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April 28, 2025
Nasdaq Presses SEC To Enact Clearer Digital Asset Rules
Nasdaq is urging the U.S. Securities and Exchange Commission and its sister agency that regulates derivatives to adopt clearer rules governing digital assets, calling for a system that classifies such products into four categories.
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April 28, 2025
Class Attys Seek $6.5M Cut In $29.5M Plantronics Settlement
Lead counsel for Plantronics investors who secured a $29.5 million deal resolving claims the company used "channel stuffing" tactics to bolster revenue are seeking $6.5 million in fees, telling a California federal judge Friday the request is reasonable, given the strong recovery and their track record successfully prosecuting similar securities cases.
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April 28, 2025
Ex-Deutsche Bank GC Is Coinbase's Next Compliance Chief
A former general counsel at Deutsche Bank AG, who most recently led the anti-financial crime unit, is joining Coinbase Global Inc. as chief compliance officer, he said in a LinkedIn post Monday, a move that comes as policymakers work to set rules of the road for cryptocurrency.
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April 28, 2025
Chancery Tosses Palantir Suit Targeting Direct Sale Gains
Observing that corporate insiders can't be penalized for profiting from public information, a Delaware vice chancellor has thrown out a derivative suit filed by Palantir Technologies stockholders accusing the private company's directors and officers of unfairly profiting from direct-to-market stock sales without taking the company public.
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April 28, 2025
Ohio Man Gets 17½ Years For $7M Stock Fraud Conspiracy
An Ohio federal judge sentenced the majority owner and chief executive officer of a commercial lighting and automotive company to 17½ years in prison for conspiring with others to artificially inflate his company's stock price by using aliases to operate as unlicensed stockbrokers.
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April 25, 2025
Nike Investors Say 'Brazen' NFT Rug Pull 'Decimated' Them
Nike was hit with a proposed securities class action on Friday accusing the athletic apparel giant of touting its nonfungible tokens before abruptly abandoning that business, in a "brazen rug pull" that left purchasers of Nike's NFTs "decimated."
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April 25, 2025
OCC Slashes Fines In Deals With Ex-Wells Fargo Auditors
The Office of the Comptroller of the Currency has settled with two former Wells Fargo executives who were fighting seven-figure penalty orders for their alleged roles in the bank's fake accounts scandal, agreeing to accept greatly reduced fines totaling $150,000.
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April 25, 2025
CFPB Abandons $2.25M Student Loan Trust Deal, Drops Case
The Consumer Financial Protection Bureau on Friday voluntarily dismissed its long-running debt collection practices suit against the National Collegiate Student Loan Trusts, abandoning a $2.25 million proposed settlement that had been held up by objectors.
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April 25, 2025
FINRA Urges Justices To Reject Constitutional Challenge
The Financial Industry Regulatory Authority on Friday called on the U.S. Supreme Court to turn away a case claiming that the regulator's in-house disciplinary process is unconstitutional, saying that there is no circuit split at issue and that the petition is "plagued with vehicle problems."
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April 25, 2025
Judge Orders Atlas Co. To Arbitrate $3.1M Fraud Suit
A Colorado federal judge on Thursday ordered an Australian online atlas startup to arbitrate its $3.14 million dispute with a consultant it hired for guidance while looking to gain access to U.S. capital markets, ruling that an arbitration clause in the underlying contract was applicable despite the company's fraud allegations.
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April 25, 2025
FDIC Defends In-House Enforcement For Banking At 7th Circ.
The Federal Deposit Insurance Corp. has pushed back against a former Illinois community bank chairman's argument that the U.S. Supreme Court's recent Jarkesy decision prohibits the FDIC from using in-house proceedings to bring enforcement claims that seek civil penalties, saying that banking-related actions, like the one at issue, are "different" from what Jarkesy involved.
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April 25, 2025
Texas High Court Keeps Alive REIT's 'Short And Distort' Suit
The Texas Supreme Court found that a farmland-centered real estate investment trust's suit against a Dallas-based hedge fund could continue, but in a Friday opinion it also said a bid to dismiss the suit under the state's anti-SLAPP law could proceed on the merits.
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April 25, 2025
Judge Keeps Boeing Fraud Case In Chicago
An Illinois federal judge said Friday that equity funds accusing Boeing of defrauding investors by downplaying the 737 Max jets' safety flaws after a pair of deadly crashes in 2018 and 2019 must continue to litigate their claims in Chicago instead of having them heard in Virginia.
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April 25, 2025
Live Nation Investors Get 1st OK For $20M Eras Tour-Tied Deal
Event ticketing giant Live Nation and its shareholders on Friday secured a California federal judge's initial green light for their proposed $20 million deal to end proposed class action claims alleging the company misled shareholders in the face of anticompetitive allegations involving its Ticketmaster subsidiary following its missteps selling tickets for pop star Taylor Swift's Eras Tour.
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April 25, 2025
Migration Agency Faces $100M EB-5 Investor Fraud Suit
A group of Chinese investors have filed a proposed class action accusing a Washington-based migration agency and a real estate investment group manager of fraudulently raising $100 million from overseas investors pursuing permanent U.S. residence via the EB-5 program with property that has now been auctioned off.
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April 25, 2025
Tesla, Allies Urge Reversal Of Musk's $56B Pay Veto
Pointing to solid Tesla stockholder approval of Elon Musk's $56 billion, multiyear compensation plan, the Chamber of Commerce's national office has urged Delaware's Supreme Court to reverse a Chancery Court strikedown of the plan and reconsider a $345 million winning-side class attorney fee.
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April 25, 2025
SPAC Deals Are Buzzing Again Despite Tariff Turmoil
Amid heavy volatility that has largely frozen traditional initial public offerings, deal teams are launching more special purpose acquisition companies, an alternative market to typical IPOs that so far has shown few ill effects from tariff-related uncertainty.
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April 25, 2025
SEC Accuses Ex-Fla. Real Estate Co. CFO Of $93M Scheme
The U.S. Securities and Exchange Commission on Friday sued the former chief financial officer of a Miami real estate development company for his role in orchestrating an alleged scheme that swindled approximately $93 million from investors.
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April 25, 2025
Chemours Hit With New Derivative Duty Breach, Waste Suit
A Chemours Inc. stockholder launched a new derivative damage suit against 13 former or current top officers and directors in Delaware's Court of Chancery Friday, adding to state and federal court challenges targeting allegedly conflicted and misleading disclosures about revenues and performance in 2022 and 2023.
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April 25, 2025
Vinco Ventures Chair Pleads Guilty To Lying To Investors
The former executive chairman of Vinco Ventures' board of directors pled guilty Friday to lying to investors about the digital media and technology company's operations to artificially inflate its stock price.
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April 25, 2025
NY Judge Axes Ford O'Brien Malpractice Suit
A former Ford O'Brien Landy LLP client who claimed the firm's "haphazard" representation lost him millions at arbitration has had his legal malpractice suit thrown out of New York state court, with a judge finding no evidence that the outcome would have changed had his counsel acted differently.
Expert Analysis
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A Cold War-Era History Lesson On Due Process
The landmark Harry Bridges case from the mid-20th century Red Scare offers important insights on why lawyers must be free of government reprisal, no matter who their client is, says Peter Afrasiabi at One LLP.
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How Latin American Finance Markets May Shift Under Trump
Changes in the federal government are bringing profound implications for Latin American financial institutions and cross-border financing, including increased competition from U.S. banks, volatility in equity markets and stable green investor demand despite deregulation in the U.S., says David Contreiras Tyler at Womble Bond.
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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SEC Confidential Review Process Provides Issuers Flexibility
The U.S. Securities and Exchange Commission's recently announced enhancements to the process for confidentially submitting draft registration statements will be immediately impactful for issuers seeking to access the public capital markets, and should provide more grounds to explore and plan public offerings, say attorneys at Lowenstein Sandler.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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How Del. Law Rework Limits Corporate Records Requests
Newly enacted amendments to a section of the Delaware General Corporation Law that allows stockholders and beneficial owners to demand inspection of Delaware corporations' books and records likely curtails the scope of such inspections and aids defendants in framing motions to dismiss at the pleading stage, says Jonathan Richman at Brown Rudnick.