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Securities
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May 07, 2025
NYC Developer Conned Investors Out Of $10M, Feds Say
A real estate developer involved in several projects in New York City was charged by federal prosecutors with misappropriating about $10 million in investor funds and using the money to finance a lavish lifestyle and cover gambling losses.
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May 07, 2025
FSOC Rethink Of SIFI Labeling 'Is On Agenda,' Bessent Says
U.S. Treasury Secretary Scott Bessent signaled at a U.S. House hearing on Wednesday that the Financial Stability Oversight Council may seek again to curb its power to single out large asset managers and other nonbank financial firms for heightened regulation.
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May 07, 2025
McMahon's Misconduct Docs Sought In WWE Merger Suit
Shareholders seeking damages from World Wrestling Entertainment Inc.'s disputed $21.4 billion merger with Ultimate Fighting Championship have urged a Delaware vice chancellor to force WWE's former CEO, Vince McMahon, to hand over documents regarding his alleged sexual misconduct and hush money payments, arguing they are central to the suit.
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May 07, 2025
Nordstrom's Investor Can't Block Vote On Go-Private Deal
A Washington federal judge said he won't block a shareholder vote on Nordstrom's proposed $6.25 billion deal to go private, issuing a sealed order on Tuesday denying a preliminary injunction bid in a proposed investor class action.
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May 07, 2025
Top Regional Atty At Binance Joins Steptoe White Collar Team
The former legal leader for Binance's Americas region, who also has been in-house with Vimeo and the U.S. Commodity Futures Trading Commission, has transitioned into private practice at Steptoe LLP, the firm said Wednesday, as policymakers work to set rules of the road for cryptocurrency.
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May 06, 2025
Dems Exit Hearing After Calling For Crypto Conflict Limits
House Democrats continued to call for coming digital asset legislation to limit potential conflicts of interest in light of the Trump family's crypto ventures at a Tuesday joint hearing between the financial services and agriculture committees that saw some members walk out in opposition.
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May 06, 2025
PennyMac Wins Quick 9th Circ. Appeal Of Libor-Rate Ruling
A California federal judge on Monday allowed PennyMac entities to pursue their quick appeal in a proposed class action alleging they illegally imposed a lower fixed interest rate instead of a variable rate on preferred-stock dividends, asking the Ninth Circuit to clarify whether the Libor Act bars such fixed rates.
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May 06, 2025
VIX Note Investors Can't Revise Revived Suit, Judge Finds
Investors who claimed Credit Suisse manipulated the market for a certain exchange-traded note it issued can't revise their suit to add claims about the bank's lending practices and internal calculations, a New York federal judge has determined.
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May 06, 2025
SDNY Taps Sullivan & Cromwell Atty To Lead Criminal Division
A former Sullivan & Cromwell LLP partner has been selected to lead the U.S. Attorney's Office for the Southern District of New York's criminal division, according to an announcement made Tuesday.
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May 06, 2025
Medical Device Co. SeaStar Seeks Toss Of Shareholder Suit
SeaStar Medical Inc. has urged a Colorado federal judge to toss a proposed class action alleging the healthcare company misled investors about potential regulatory risks and compliance deficiencies, arguing the amended complaint "attempts to create the illusion of factual particularity through a façade of prolixity."
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May 06, 2025
Judge Scolds US Over 'Vague' Bid To Stay $380M Award Row
A California federal judge has scolded the Trump administration as it tries to seize part of a $380 million arbitral award purportedly tied to embezzled Malaysian funds, saying it has not constructively engaged in the discovery process while seeking a stay during related criminal proceedings.
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May 06, 2025
NC Staffing Biz Hits Ch. 11 After Scuttled Merger And Delisting
Five affiliates of a North Carolina staffing company have filed for Chapter 11 bankruptcy protection, listing debts of up to $100 million after a planned merger fell through and its stock was delisted.
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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.
Expert Analysis
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Fund Names Rule FAQs Leave Some Interpretative Uncertainty
Although recently released FAQs clarify many specific points of the 2023 expansion to the Investment Company Act's fund names rule, important questions remain about how U.S. Securities and Exchange Commission staff will interpret other key terms when the end-of-year compliance date arrives, say attorneys at Dechert.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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What Travis Hill's Vision For FDIC Could Portend For Banks
If selected to lead the Federal Deposit Insurance Corp. in a permanent capacity, acting Chairman Travis Hill is likely to prioritize removing barriers to innovation and institution-level growth, emphasizing the idea that eliminating rules, relaxing standards and reducing scrutiny will reinvigorate the industry, say attorneys at Mitchell Sandler.
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Will Independent Federal Agencies Remain Independent?
For 90 years, members of multimember independent federal agencies have relied on the U.S. Supreme Court's 1935 ruling in Humphrey's Executor v. U.S. establishing the security of their positions — but as the Trump administration attempts to overturn this understanding, it is unclear how the high court will respond, says Harvey Reiter at Stinson.
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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.