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Securities
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April 11, 2025
Investors Claim $43M Fraud By Miami Adviser's Firms
More than three dozen investors have sued the companies connected to a former financial adviser in Miami state court over claims of fraud, alleging he squandered nearly $43 million to enrich himself and fund a Ponzi-like scheme.
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April 11, 2025
NAPCO Directors Clear Offering Fault Claims In Investor Suit
Directors at building security systems company NAPCO Security Technologies on Friday escaped some claims from a shareholder class action over alleged COVID-19-era financial reporting errors, but the company and its underwriters are still on the hook for all the claims against them.
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April 11, 2025
SEC Taps 2 Agency Staffers For Senior Enforcement Roles
The former director of the U.S. Securities and Exchange Commission's Philadelphia office has been promoted to overseeing the agency's trial team while an adviser to acting SEC Chair Mark Uyeda has been given the role of associate director of enforcement, according to a pair of recent announcements.
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April 11, 2025
Chancery Tosses Exabeam Stockholder's Appraisal Suit
A former stockholder of cybersecurity venture Exabeam Inc. saw his suit for Court of Chancery share appraisal shot down on Friday, after a vice chancellor concluded that the suit was launched as an unsupported workaround to secure documents unavailable to him on the company's merger with LogRhythm Inc.
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April 11, 2025
Dentsply Brass Face Investor Suit Over Alleged Dental Injuries
Executives and directors of dental supply manufacturing company Dentsply Sirona Inc. have been hit with a derivative suit alleging they concealed that a company subsidiary was approving unsuitable patients for dental treatments to inflate sales figures.
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April 11, 2025
Tariff Reprieve Offers Little Comfort For Venture-Backed IPOs
President Donald Trump's move to pause most tariff threats is not reassuring venture-backed startups eyeing public listings, many of which will likely postpone initial public offerings for at least another quarter or until shaky market conditions stabilize, a new report concludes.
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April 11, 2025
SEC Takes 'Small Step' On Corporate Crypto Disclosures
A U.S. Securities and Exchange Commission division has released a statement aimed at clarifying how federal securities laws apply to some offerings and registrations in cryptocurrency asset markets, which one commissioner called "a small step in identifying relevant disclosures."
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April 11, 2025
Feds To Try Coal Exec For Bribery Despite FCPA Freeze
Federal prosecutors in Pennsylvania said Friday that they plan to proceed with a case charging a coal executive with bribing foreign officials for business, after reviewing President Donald Trump's order that paused enforcement of the Foreign Corrupt Practices Act.
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April 11, 2025
GM Execs Want Out Of Cruise Securities Fraud Suit
General Motors executives told a Michigan federal judge that they don't belong in a securities fraud class action targeting GM's self-driving vehicle unit Cruise LLC after the lawsuit's scope was narrowed to focus on Cruise leaders' statements.
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April 11, 2025
Software Co. Freshworks Scores Early Win In IPO Suit
Software company Freshworks Inc. has gotten an early win on proposed investor class action claims that it failed to disclose decelerating revenue and billings growth as it went public in 2021.
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April 11, 2025
Crypto Firm To Pay SEC Fine Over False Client Claims
Cryptocurrency firm Nova Labs Inc. has agreed to pay $200,000 to settle a U.S. Securities and Exchange Commission lawsuit claiming it falsely touted client relationships with Nestle and other large businesses in an effort to sell crypto mining devices tied to the so-called Helium network.
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April 11, 2025
Family Should Face Charges In $81M Tax Scheme, US Says
The U.S. government urged a New York federal court not to trim its complaint against the former shareholders of a family holding company accused of participating in an $81 million tax scheme, saying the family illegally avoided paying capital gains on its sale of the company.
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April 11, 2025
SEC, Ripple Put 2nd Circ. Case On Ice To Confirm Resolution
Blockchain firm Ripple Labs and the U.S. Securities and Exchange Commission told the Second Circuit to put their respective appeals on ice as they seek commission approval for an agreement to end the landmark enforcement action.
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April 11, 2025
NFT Owner Admits To Dodging Tax On Crypto Art Sales
A Pennsylvania man pled guilty to filing false tax returns and underreporting his income by $13.1 million after selling 97 nonfungible token artworks, federal prosecutors said Friday.
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April 11, 2025
Did DOJ Bless A Crypto Free-For-All? Think Again, Attys Say
The Justice Department's move to scale back cryptocurrency enforcement and dissolve its crypto fraud investigations unit isn't exactly a "get-out-of-jail-free card" for industry players who commit crimes using digital assets, experts say.
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April 11, 2025
Envestnet Sued For Docs On $4.5B Bain Capital Deal In Del.
A former trust investor in wealth and data management giant Envestnet Inc. sued in Delaware's Court of Chancery on Thursday for access to books and records on the company's $4.5 billion take-private deal with Bain Capital last year, citing concerns over both price and potential conflicts.
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April 10, 2025
2nd Circ. Says Investor Can't Join $250M Sri Lanka Bond Suit
The Second Circuit on Thursday held that a U.S.-based investor can't intervene in a lawsuit between the Sri Lankan government and Hamilton Reserve Bank over more than $250 million in foreign bonds, finding that the investor failed to show how his property interest in the bonds overlapped with the bank's claims.
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April 10, 2025
Senate Dems Press Fed's Bowman On Political Independence
President Donald Trump's pick for Federal Reserve supervision czar told senators on Thursday that the central bank should have independence to set monetary policy, but she declined to say whether its regulatory policy should be subject to White House review.
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April 10, 2025
Grayscale Settles Bitcoin Rival's Conn. Biz Interference Suit
Cryptocurrency firm Osprey Funds LLC and its larger digital asset management rival Grayscale Investments LLC have agreed to settle a lawsuit over the transition of a Grayscale bitcoin investment trust into an exchange-traded fund, or ETF.
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April 10, 2025
SEC Urged To Look At FINRA's 'Unprecedented' Review Delay
Shareholders of Entrex Carbon Market Inc. have urged the U.S. Securities and Exchange Commission to review what they say is the Financial Industry Regulatory Authority's harmful failure to act on the carbon offset trading platform's requests for a name change and approval of stock splits.
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April 10, 2025
YouTuber Defends Calling Logan Paul Crypto Project A 'Scam'
A YouTuber who called social media personality Logan Paul's failed crypto project a "scam" objected to a magistrate judge's recommendation to keep Paul's defamation claims in play, arguing the word has no objective definition.
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April 10, 2025
Nevada Can't Sue Kalshi Over Sports, Elections Betting
A Nevada federal judge has ruled that the state cannot prohibit online trading platform KalshiEx LLC from allowing users to place bets on the outcome of sports events and elections because both are currently permitted under federal law, preventing the state from pursuing legal action against the company.
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April 10, 2025
NY AG Calls For 'Common-Sense' Rules In Crypto Legislation
New York Attorney General Letitia James sent a letter to leaders of both chambers of Congress on Thursday urging them to ensure that any crypto legislation includes strong guardrails to protect consumers, national security and market stability.
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April 10, 2025
Fla. Judge Won't Revisit 'Let's Go Brandon' Coin Class Cert.
A Florida federal judge won't reconsider his partial certification of a class of purchasers of meme-inspired cryptocurrency LGBCoin in a suit alleging the price of the tokens cratered after its much-hyped plan to sponsor the coin's eponymous NASCAR driver fell apart.
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April 10, 2025
Holmes Seeks Full 9th Circ. Review Of Theranos Fraud Appeal
Convicted Theranos Inc. founder Elizabeth Holmes has asked the Ninth Circuit for en banc review of a panel's decision to affirm her criminal fraud conviction and 11-year prison sentence, saying problems with the opinion included a "time-warping relevance theory."
Expert Analysis
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More Environmental Claims, More Greenwashing Challenges
As companies prepare for the 2025 greenwashing landscape, they should take heed of a D.C. appellate decision that shows that environmental claims are increasingly subject to attack and provides plaintiffs with a playbook for challenging corporate claims of sustainability, say attorneys at Sidley.
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And Now A Word From The Panel: How MDLs Fared In 2024
A significant highlight of the Judicial Panel on Multidistrict Litigation's practice during 2024 was the increase in the percentage of new MDL petitions granted by the panel, with 25 granted and only eight denied — one of the highest grant rates in years, says Alan Rothman at Sidley.
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Assessing Gary Gensler's Legacy At The SEC
Gary Gensler's tenure as U.S. Securities and Exchange Commission chair is defined by a record of commonsense regulation in some areas and social activism in others, and by increasing judicial skepticism about the SEC's authority to fulfill its regulatory, enforcement, administrative law and adjudicatory functions, say attorneys at Arnold & Porter.
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Calif. Cannabis Decision Deepens Commerce Clause Divide
In Peridot Tree v. Sacramento, the Eastern District of California joined a growing minority of courts that have found the dormant commerce clause inapplicable to state-regulated marijuana, and the Ninth Circuit will soon provide important guidance on this issue, say attorneys at Perkins Coie.
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Takeaways From DOJ Fraud Section's 2024 Year In Review
Attorneys at Paul Weiss highlight notable developments in the U.S. Department of Justice Fraud Section’s recently released annual report, and discuss what the second Trump administration could mean for enforcement in the year to come.
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Recent SEC Actions Highlight Importance Of Filing Form D
The U.S. Securities and Exchange Commission's enforcement action against three companies last month for failing to timely file Form D is an unprecedented step that should put an end to Regulation D issuers' views that filing these forms is a technical requirement or somewhat voluntary, says Patrick McCloskey at McCloskey Law.
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The 7th Circ.'s Top 10 Civil Opinions Of 2024
Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2024, and explain how they may affect issues related to mass arbitration, consumer fraud, class certification and more.
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Kansas Bank's Suit Could Upend FDIC Enforcement Authority
Should CBW Bank's federal lawsuit in Kansas challenging the Federal Deposit Insurance Corp.'s enforcement authority gain traction with a post-Chevron U.S. Supreme Court, it could have profound implications for the FDIC and the banking industry at large, says Jack Harrington at Bradley Arant.
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End-Of-Year FCPA Enforcement Surge Holds Clues For 2025
The last three months of 2024 saw more Foreign Corrupt Practices Act enforcement actions than any quarter in the previous four years, providing lessons for companies — even as a new administration raises doubts about whether this momentum will continue, say attorneys at Norton Rose.
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What's Next For Accounting Enforcement After SEC's Big 2024
The U.S. Securities and Exchange Commission under the Trump administration will likely continue to focus enforcement efforts on many of the same accounting and auditing issues that it pursued over the past year — but other areas, such as ESG, internal controls and cryptocurrency cases, may fall out of focus, say attorneys at Debevoise.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.
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Insights For Finance Firms, Regulators From House AI Report
Though a U.S. House of Representatives report encourages the financial sector to embrace artificial intelligence tools, its focus on ensuring high-quality datasets, transparent development and equitable access underscores that firms and regulators must strike a delicate balance between technological innovation and responsible implementation, says Brendan Palfreyman at Harris Beach.
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UPS Penalty Demonstrates Goodwill Impairment Red Flags
The U.S. Securities and Exchange Commission's recent $45 million penalty against UPS for withholding reports of goodwill impairment should warn investors to watch for the telltale signs of companies inflating their worth by delaying tests that would reveal similar declines in the value of intangible assets, say attorneys at Labaton Keller.
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Series
Coaching Little League Makes Me A Better Lawyer
While coaching poorly played Little League Baseball early in the morning doesn't sound like a good time, I love it — and the experience has taught me valuable lessons about imperfection, compassion and acceptance that have helped me grow as a person and as a lawyer, says Alex Barnett at DiCello Levitt.
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5 Litigation Funding Trends To Note In 2025
Lawyers and their clients must be prepared to navigate an evolving litigation funding market in 2025, made more complicated by a new administration and the increasing overall cost of litigation, says Jeffery Lula at GLS Capital.