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Securities
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April 22, 2025
JPMorgan Fined $650K Over Regulation M Reporting Failures
The Financial Industry Regulatory Authority and several stock exchanges, including Nasdaq and some New York Stock Exchange entities, teamed up to fine JPMorgan $650,000 for failing to file hundreds of required reports under Regulation M, which makes it unlawful for brokers to trade on certain securities during a restricted period.
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April 22, 2025
Del. Justices Order Matterport CEO Cash-Out Recalculation
Delaware's Supreme Court reversed and ordered a recalculation Tuesday for a $79 million Court of Chancery ruling on additional damages and interest due a former CEO of 3D building imaging company Matterport Inc. who challenged his $80 million cash-out in a 2021 go-public sale.
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April 22, 2025
Wells Fargo 'Sham' Hiring Suit Delayed For Mediation
A California federal judge agreed to move deadlines in a proposed investor class action accusing Wells Fargo of conducting "sham" job interviews to meet diversity targets that later triggered a stock drop when the practice was revealed, citing plans to attempt mediation in May.
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April 22, 2025
Morgan Lewis Hires Ex-CFTC General Counsel
Robert A. Schwartz, the former general counsel of the U.S. Commodity Futures Trading Commission, has joined Morgan Lewis & Bockius LLP as a partner in its investment management practice, the firm announced Tuesday.
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April 21, 2025
Binance Crypto Suit Sent To Florida To Avoid Duplication
A Washington federal judge on Monday transferred to Florida a proposed class action over Binance's alleged role in laundering stolen cryptocurrency, finding that the case heavily overlapped with a lawsuit filed earlier in the Sunshine State that was sent to arbitration.
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April 21, 2025
NJ Investment Firm Accused Of Aiding Alleged $300M Ponzi
A New Jersey investment adviser has been hit with a proposed class action claiming the company helped recruit marks for what the U.S. Securities and Exchange Commission has called a $300 million Ponzi scheme, making it at least the second company to be sued for its alleged connections to the fraud operation.
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April 21, 2025
CFTC's Crypto Shift Leaves KuCoin Settlement In Limbo
A recent shift in the U.S. Commodity Futures Trading Commission's stance toward the cryptocurrency industry has cast a cloud over the agency's prospective settlement with bitcoin exchange KuCoin, with an agency attorney telling a New York federal judge it was unlikely the deal would be approved by the commission "in the near term."
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April 21, 2025
Trump Media Exec Seeks Penalties In 'Frivolous' Hacking Suit
A board director for President Donald Trump's social media company and his associate urged a Florida federal court to impose sanctions in a "frivolous" lawsuit alleging they hacked a cloud server to steal documents used to oust the former CEO, saying their accusers can't show what information was allegedly taken.
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April 21, 2025
NJ Says KalshiEx Can't Rebrand Bets To Dodge Gambling Law
New Jersey regulators fired back at KalshiEx LLC's challenge to the state's block of the platform's sports event contracts, arguing the firm can't sidestep registration under the state's gambling laws "just by offering sports wagers in a different format."
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April 21, 2025
Paramount Global, Stockholders Pause Skydance Doc Suit
Paramount Global and three pension fund stockholders have agreed to pause a suit seeking records on the entertainment giant's planned $8 billion merger with Skydance Media pending further negotiations or closing on the deal.
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April 21, 2025
EV Chipmaker Wolfspeed's Execs Sued For Overstated Growth
Executives and directors of North Carolina-based electric vehicle chip manufacturer Wolfspeed Inc. were hit with a derivative suit on Monday alleging they overstated the potential effects a fabrication facility would have on increasing Wolfspeed's revenue and output.
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April 21, 2025
Crypto Cos. Sued Over 'Covert' Meme Coin 'Pump-And-Dump'
A proposed securities class action in New York federal court is accusing a crypto platform, a venture capital firm and their executives of a "covertly orchestrated" scheme to pump and dump a token affiliated with a newly launched meme coin exchange.
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April 21, 2025
Asset Manager Admits Stealing $3M From Real Estate Cos.
A Connecticut asset manager who helped clients buy and manage real estate portfolios has pled guilty to stealing nearly $3 million from entities in five states to fund his day trading endeavors, federal prosecutors announced Monday.
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April 21, 2025
DOL Tells 5th Circ. It May Rescind Biden-Era ESG Rule
The U.S. Department of Labor told the Fifth Circuit on Monday it's considering rescinding a Biden-era rule allowing retirement fiduciaries to consider issues like climate change and social justice when choosing investments, according to filings in a suit challenging the rule from conservative states and energy companies.
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April 21, 2025
Imprisoned Ex-Pharma Exec Must Pay SEC $1.8M
The former leader of a pharmaceutical company currently serving a 20-month sentence for using a fake name to get around a U.S. Securities and Exchange Commission ban has been ordered to cough up $1.8 million within 90 days of his release or be ready to explain why he cannot.
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April 21, 2025
YouTube's 'Nelk Boys' Want Suit Over NFTs Tossed
A pair of influencers behind the YouTube channel "Nelk Boys" asked a California federal judge to toss a lawsuit brought by a buyer of their crypto product who claimed the promised benefits never materialized, arguing the complaint does not show the defendants made any claims that have not or will not be fulfilled.
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April 21, 2025
Judge Blocks Pot Co. CEO's Bid To Enforce $1.5M Settlement
The founder of a defunct marijuana greenhouse leasing business cannot reopen an investor class action to enforce a $1.5 million settlement and declare a related bankruptcy action unlawful, a Colorado federal judge has ruled, finding that he has already filed a separate lawsuit asking for the same things.
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April 21, 2025
Unions Score Block On Orders To Fire Probationary Workers
A California federal judge blocked the Office of Personnel Management from ordering federal agencies to fire probationary employees and stopped several agencies from heeding its directives, but he declined to order them to rehire the workers they've already let go.
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April 21, 2025
Investor Says Energy Co. Hid Texas Plant Project Challenges
An investor hit Net Power Inc. with a proposed class action claiming that it and its executives misled the public about known problems with a power plant project in Texas, artificially inflating the company's stock price until those issues came to light and led to multiple stock drops.
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April 21, 2025
SafeMoon CEO Can't Ax Fraud Case Ahead Of Trial
A Brooklyn federal judge denied an effort from the former CEO of crypto firm SafeMoon to dismiss his fraud case, saying a jury should assess his arguments that the case lacks sufficient ties to the U.S. and that SafeMoon's marquee coin was not a security.
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April 21, 2025
High Court Wants SG's Input On Home Depot ERISA Case
The nation's highest court asked the U.S. solicitor general Monday to opine on whether it should hear a retirement plan mismanagement case from Home Depot workers who say the Eleventh Circuit wrongly required them to link financial losses to alleged breaches of fiduciary duty.
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April 18, 2025
Walgreens To Pay DOJ $300M Over Invalid Prescriptions
Walgreens revealed in a U.S. Securities and Exchange Commission filing Friday that it will pay upward of $300 million to resolve U.S. Department of Justice allegations that it knowingly filed millions of prescriptions for opioids and other drugs that didn't have a legitimate medical purpose or weren't valid.
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April 18, 2025
FDIC Eases Big Banks' 'Living Will' Requirements
The Federal Deposit Insurance Corp. moved Friday to spare large banks from certain requirements for what should go into the next version of their so-called living wills, saying it wants to put more emphasis on planning for quicker, potentially weekend sales of failing banks.
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April 18, 2025
Gamestop CEO Can't Stop Bed Bath & Beyond Trading Suit
A Manhattan federal judge trimmed a $47 million lawsuit from the bankrupt retailer once known as Bed Bath & Beyond accusing GameStop's CEO of insider trading before the housewares giant went belly-up, but says "ample" public information would have told the businessman he had enough stock to be a corporate insider.
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April 18, 2025
5th Circ. Backs SEC In Fraud Case Receivership Fight
The Fifth Circuit has knocked down a Texas-based real estate investor's fight against a receivership imposed upon his entities by the U.S. Securities and Exchange Commission, saying the lower court did not exceed its authority in allowing the receivership in the $26 million fraud case.
Expert Analysis
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Series
Playing Beach Volleyball Makes Me A Better Lawyer
My commitment to beach volleyball has become integral to my performance as an attorney, with the sport continually reminding me that teamwork, perseverance, professionalism and stress management are essential to both undertakings, says Amy Drushal at Trenam.
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30 Years Later: How PSLRA Has Improved Securities Litigation
In the 30 years since the Private Securities Litigation Reform Act's passage, the statute has achieved its purpose of shifting securities class actions to investors most capable of monitoring the litigation, selecting competent counsel at competitive rates and maximizing recoveries for the investor classes they represent, say attorneys at Bernstein Litowitz.
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Terraform Case May Be Bellwether For Crypto Enforcement
The prosecution of crypto company Terraform Labs and its CEO, Do Kwon, offers a unique test of the line between lawful and unlawful conduct in digital transactions, and the Trump administration’s posture toward the case will provide clues about its cryptocurrency enforcement agenda in the years to come, say attorneys at Brooks Pierce.
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Texas Banking Dept. Memo Demystifies Crypto Classifications
A recent memorandum from the Texas Department of Banking provides clarity with respect to the classification of both stablecoins and nonstablecoin virtual currencies under the state's Money Services Modernization Act, flagging for firms that stablecoins may be scrutinized more closely as money transmission, say attorneys at Lowenstein Sandler.
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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What Remedies Under New Admin's SEC Could Look Like
The U.S. Securities and Exchange Commission is likely to substantially narrow the remedies it pursues over the next few years, driven by the mounting challenges it faces in court, as well as the views of its incoming chair and fellow Republican commissioners on injunctions, penalties and disgorgement, say attorneys at Milbank.
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Texas Fraud Case Shows Dangers Of Faulty Crypto Reporting
The recent sentencing of a man who failed to properly report capital gains from bitcoin sales is a reminder that special attention must be given to the IRS' reporting requirements in order to stay out of the government's crosshairs, says Saverio Romeo at Fox Rothschild.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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BlackRock Suit Highlights Antitrust Risks Of ESG
In Texas v. BlackRock, pending in Texas federal court, 13 state attorneys general are suing large institutional investors in the coal business, underscoring key reasons companies may want to alter their approach to developing and implementing policies related to environmental, social, and governance factors, especially if coordination with competitors is involved, say attorneys at Manatt.
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Suggestions For CFTC Enforcement's New Leadership
The recent change in leadership at the U.S. Commodity Futures Trading Commission presents an opportunity to reflect on past practices and consider opportunities for improvement at the commission's Enforcement Division, including in observing precedent and providing greater enforcement transparency, say attorneys at Clifford Chance.
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Chancery Ruling Holds Authorized Share Takeaways For Cos.
The Delaware Chancery Court’s recent ruling in Salama v. Simon resolved statutory ambiguity in favor of boards seeking authorized share increases, and has important implications for litigators presenting extrinsic evidence in support of contract or statutory interpretation arguments, says Robin Wechkin at Sidley.
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Opinion
NFT Bill Needs Refining To Effectively Regulate Digital Assets
A recent bill in the U.S. House proposing to regulate nonfungible tokens as digital assets would leave key concepts undefined until the U.S. comptroller general completes an after-the-fact study of NFTs, showing it needs more work before it is comprehensive enough to meaningfully protect the market, say attorneys at Duane Morris.
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McMahon SEC Settlement Warns Of Nondisclosure's Price
The U.S. Securities and Exchange Commission's recent financial nondisclosure settlement with former WWE CEO Vince McMahon illustrates the breadth of executives' reimbursement obligations under the Sarbanes-Oxley Act and highlights the importance of building robust internal corporate reporting processes, say attorneys at BCLP.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Bill Would Bring Welcome Clarity To Del. Corporate Law
A recently proposed bill in Delaware that would provide greater predictability for areas including director independence and controlling stockholders reflects prudential adjustments consistent with the state's long history of refining and modernizing its corporate law, say attorneys at Simpson Thacher.