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Securities
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May 06, 2025
Golf Gear Co. Sued In Del. Over Controller Share Sales
A pension fund stockholder of golf gear maker and distributor Acushnet Holdings Corp. sued its controlling stockholders and directors on Monday for purportedly lining up hundreds of millions in company share repurchases that preserved the controllers' status despite repeated stock sales.
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May 06, 2025
SEC Panel Says Easier Trading Would Rev Up 'Reg A'
A small business-focused committee advising the Securities and Exchange Commission expressed renewed support on Tuesday for easing secondary trading in connection with Regulation A, hoping to broaden the appeal of this lightly used alternative to an initial public offering.
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May 06, 2025
B. Riley Escapes Investor Suit Over National Holdings Buyout
Delaware's Chancery Court has dismissed B. Riley Financial Inc. from a suit challenging its 2021 acquisition of National Holdings Corp., rejecting a former National stockholder's claim that B. Riley controlled the negotiations in the shadow of its significant stake in National.
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May 06, 2025
SEC Asks High Court To Skip $22.7M Disgorgement Case
The U.S. Securities and Exchange Commission responded to an investment advisory firm's request for the U.S. Supreme Court to review a First Circuit ruling upholding an order for the firm to pay $22.7 million in disgorgement, arguing that investor losses are not necessary for disgorgement orders.
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May 06, 2025
Ex-CEO Can't Shake Conviction In COVID Test Kit Fraud Case
The former chief executive of a healthcare software company who touted a $670 million COVID test kit deal that collapsed was denied acquittal Monday by a Newark federal judge who ruled the evidence was sufficient for a reasonable juror to find beyond a reasonable doubt that he had engaged in securities fraud.
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May 06, 2025
Morgan Stanley Says SEC Has Closed Cash Sweep Probe
The U.S. Securities and Exchange Commission has ended an investigation into Morgan Stanley's cash sweep program without recommending an enforcement action, the bank told investors.
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May 06, 2025
Investors Sue West Pharma Over Post-COVID Stock Losses
The New England Teamsters Pension Fund has sued West Pharmaceutical Services Inc. and its top brass, alleging they misled investors by overstating demand for the company's high-margin products and hiding the loss of contracts after the COVID-19 pandemic, causing a stock price drop when the truth was finally revealed.
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May 06, 2025
TV Producer Gets 18 Months For Embezzlement, Fraud
The producer of a yet-to-be-released thriller television series was sentenced to 18 months in prison Tuesday after pleading guilty to defrauding the show's main financial backer.
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May 06, 2025
SafeMoon CEO Tells Jury Founder To Blame For Investor Fib
Counsel for a U.S. Army veteran in Utah who served as CEO of SafeMoon told a Brooklyn, New York, federal jury Tuesday that he did not conspire to loot the crypto company's assets, implying its fugitive founder is to blame for a key misrepresentation.
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May 06, 2025
Ex-Investor In Cannabis-Infused Water Wants Charges Tossed
A former shareholder of American Premium Water Corp. is urging an Ohio federal judge to throw out the charges against him alleging that he participated in a $10 million pump-and-dump scheme, saying the indictment doesn't properly allege his wrongdoing.
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May 06, 2025
Senate Panel Advances Bowman For Fed Supervision Chief
The U.S. Senate Banking Committee on Tuesday endorsed President Donald Trump's selection of Federal Reserve Gov. Michelle Bowman to be the top bank regulatory official at the central bank, advancing her as part of his latest slate of financial nominees.
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May 05, 2025
Calif. Atty Gets 21 Months In Prison For $8.8M Investor Scam
An Orange County lawyer who purported to provide short-term high-interest loans to the rich and famous but used the funds to gamble away about $8.8 million at Las Vegas casinos and live a lavish lifestyle was sentenced to 21 months in prison on Monday in California federal court.
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May 05, 2025
Long Island Judge Installed As Interim EDNY US Atty
Long Island state court Judge Joseph Nocella Jr. was sworn in Monday as the interim U.S. attorney for the Eastern District of New York, a post he will hold for 120 days, or until the U.S. Senate confirms his nomination by President Donald Trump, the attorney's office announced.
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May 05, 2025
CFTC Drops DC Circ. Appeal Over Kalshi's Election Contracts
The U.S. Commodity Futures Trading Commission moved Monday to voluntarily drop its D.C. Circuit challenge over trading platform Kalshi's election contracts, which allow users to trade on the outcome of U.S. elections.
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May 05, 2025
Skadden-Led Crypto Platform EToro Eyes $480M IPO
Crypto-friendly trading platform eToro Group Ltd. on Monday launched plans for an initial public offering that could raise $480 million for the company and its shareholders, marking another sign that the IPO market's recent cold spell is beginning to thaw.
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May 05, 2025
Crypto Exec Says Feds Failed To Disclose Key Evidence
An indicted co-founder of crypto mixing service Samourai Wallet told a New York federal judge on Monday about prosecutors' alleged "shocking" failure to disclose evidence that calls into question the criminal charges brought against him and asked for a hearing into the alleged slip-up.
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May 05, 2025
Pharma Co. Escapes Investor Liver Drug Trial Suit, For Now
Biopharmaceutical company Akero Therapeutics Inc. and its executives have escaped, for now, a proposed class action alleging they misled investors about the patient population in a clinical trial for Akero's liver disease treatment, with a California federal judge on Monday rejecting the suit's theory of motive for the defendants.
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May 05, 2025
Celsius Exec Decries 'Venom-Laced' Gov't Sentencing Memo
The founder of defunct cryptocurrency platform Celsius told a Manhattan federal judge that a sentencing memorandum in which prosecutors asked for a 20-year prison sentence was a "venom-laced" attempt to paint him as a "fiend" and ignore his prior law-abiding business ventures and status as a Soviet Jewish refugee.
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May 05, 2025
Crypto Miner Objects To Celsius Sanctions Try In Ch. 11 Case
Crypto mining company Mawson Infrastructure Group Inc. asked a Delaware bankruptcy judge to throw out an attempt by Celsius Network to impose sanctions on Mawson in the company's involuntary Chapter 11 case, saying its failed bid to extend an automatic stay to its subsidiaries was performed in good faith.
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May 05, 2025
Colo. Pastor Claims No Ill Intent In Alleged Crypto Scheme
A Colorado pastor accused of inducing $3.4 million in investments into a worthless cryptocurrency and pocketing more than a third of those investor funds told a state court Monday that the project didn't go as planned, but he and his wife had "no intent to evade the law."
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May 05, 2025
5 Firms Pilot Pershing Square's $900M Howard Hughes Deal
Hedge fund Pershing Square will grow its ownership stake in Howard Hughes Holdings and expand the company's business lines beyond real estate development in a $900 million deal put together by five law firms, the companies said Monday.
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May 05, 2025
Umpqua Bank Class Seeks Approval Of $55M Ponzi Suit Deal
A class of Umpqua Bank investors has asked a California federal judge to give the initial OK to a $55 million settlement to end a suit alleging the bank helped execute a $300 million Ponzi scheme led by a since-deceased real estate investment manager.
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May 02, 2025
Smith & Wesson Says Catholic Investors' Suit Misfires
Firearms manufacturer Smith & Wesson Brands Inc. slammed as mere "social activism" an investor lawsuit filed by groups of Catholic sisters seeking to curb company sales and marketing of AR-15-style rifles that are sometimes used in mass shootings, urging a Nevada federal judge to dismiss the suit and the claims that it violated a fiduciary duty.
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May 02, 2025
Head Of 'Mother Teresa' Ponzi Scheme Owes SEC $4.1M
A self-styled "Mother Teresa" serving a 20-year prison sentence for wire fraud conspiracy in a $194.1 million Ponzi scheme is liable for $4.1 million in connection with U.S. Securities and Exchange Commission fraud claims, though that debt is satisfied by the $186 million forfeiture order in her federal criminal case, a Florida federal judge has determined.
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May 02, 2025
Dems Urge Fed To Rethink $35B Capital One-Discover Deal
Democratic Sen. Elizabeth Warren of Massachusetts and Rep. Maxine Waters, D-Calif., have formally petitioned the Federal Reserve to pause and revisit its approval of Capital One's $35 billion acquisition of Discover, saying the central bank's analysis of the transaction had glaring gaps that make its conclusion legally unsustainable.
Expert Analysis
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Del. Justices' D&O Ruling Clarifies 'Related' Claim Analysis
In its recent decision in the Alexion Pharmaceuticals coverage case, the Delaware Supreme Court adopted a "meaningful linkage" standard for relatedness analysis, providing further guidance to Delaware policyholders on how to navigate those directors and officers insurance disputes, say attorneys at Hunton.
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5 Major Crypto Developments From The Trump Admin So Far
The early weeks of the Trump administration have set the stage for a significant transformation in U.S. digital asset policy by prioritizing regulatory clarity, innovation and a shift away from enforcement-heavy tactics, but many of these changes will require congressional support and progress may be gradual, say attorneys at Ropes & Gray.
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Comparing 2 Pending Bills To Regulate Stablecoins
Alexandra Steinberg Barrage at Troutman analyzes the key similarities and differences between two payment stablecoin proposals currently pending in Congress — the STABLE and GENIUS acts — as both chambers are forming a working group to deliver a clear regulatory framework for digital assets and bipartisan agreement appears within reach.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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How Private Securities Suits Complement SEC Enforcement
U.S. Securities and Exchange Commission enforcement is vital to the healthy functioning of markets, but government enforcement alone is not enough to ensure meaningful monetary recoveries for investor losses due to securities law violations, say attorneys at Bernstein Litowitz.
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The Case For Compliance During The Trump Administration
Given the Trump administration’s shifting white collar enforcement priorities, C-suite executives may have the natural instinct to pare back compliance initiatives, but there are several good reasons for companies to at least stay the course on their compliance programs, if not enhance them, say attorneys at Riley Safer.
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Corp. Transparency Act's Future Under Treasury's Bessent
The Corporate Transparency Act’s ultimate fate faced uncertain terms at the end of 2024, but new U.S. Department of the Treasury Secretary Scott Bessent's statements and actions so far demonstrate that he does not intend to ignore the law, though he may attempt to make modifications, say attorneys at Taylor English.
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A Look At A Possible Corporate Transparency Act Exemption
Attorneys at Kirkland offer a deep dive into the application of the Corporate Transparency Act's reporting requirements specifically to U.S.-domiciled co-issuers in typical collateralized loan obligation transactions, and consider whether such issuers may be able to assert an exemption from the CTA's reporting requirements.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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What Banks Need To Know About Trump's Executive Orders
While the numerous executive orders and memos from the last few weeks don't touch on many of the issues the banking industry expected the Trump administration to address, banks still need to pay attention to the flurry of orders from strategic, compliance and operational perspectives, say attorneys at Arnold & Porter.
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How SDNY US Atty Nom May Shape Enforcement Priorities
President Donald Trump’s nominee for U.S. attorney in the Southern District of New York, former U.S. Securities and Exchange Commission Chair Jay Clayton, will likely shift the office’s enforcement priorities, from refining whistleblower policies to deemphasizing novel prosecutorial theories, say attorneys at Cohen & Gresser.
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4 Potential Effects Of 3rd Circ.'s Coinbase Ruling
The Third Circuit's recent landmark decision in Coinbase v. U.S. Securities and Exchange Commission that the SEC's refusal to engage in rulemaking to clarify its stance on crypto enforcement was "insufficiently reasoned" could have wide-ranging impacts, including on other cases, legislation and even the SEC's reputation itself, says Daniel Payne at Cole-Frieman.
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What Companies Should Consider During FCPA Pause
While waiting for updated guidance on Foreign Corrupt Practices Act criminal investigations after a Feb. 10 executive order froze FCPA enforcement, companies should consider the implications of several possible policy shifts, rather than relaxing internal oversight of questionable business practices, say attorneys at Simpson Thacher.
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Takeaways From CFTC's Private Fund Rule Amendments
The U.S. Commodity Futures Trading Commission's recently adopted amendments to Rule 4.7 of the Commodity Exchange Act ensure that investors in the complex derivatives markets receive relevant and comprehensive information, and further align suitability criteria for investors in private funds, says Rita Molesworth at Willkie.