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Securities
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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.
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April 25, 2025
Sullivan & Cromwell Adds V&E Shareholder Activism Leaders
Sullivan & Cromwell has added two seasoned corporate governance partners to its New York office, who most recently served as co-chairs of Vinson & Elkins' shareholder activism practice.
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April 25, 2025
10th Circ. Backs Spirit Aero's $31M Clawback From Ex-CEO
The Tenth Circuit on Friday backed Spirit AeroSystems Inc.'s decision to claw back $31 million worth of stock awards because a former CEO violated his noncompete agreement with the aircraft structure manufacturer, holding a lower court properly ruled the employment pact was enforceable under Kansas law.
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April 25, 2025
Spencer Fane Adds Former Oklahoma Higher Ed. Chancellor
Spencer Fane LLP said Thursday it has hired Allison Garrett, Oklahoma's former chief executive for its higher education system, as an of counsel in its litigation and dispute resolution practice.
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April 25, 2025
Barnes & Thornburg Adds Lewis Brisbois SEC Practice Leader
The chair of Lewis Brisbois Bisgaard & Smith LLP's U.S. Securities and Exchange Commission enforcement and litigation practice recently jumped to Barnes & Thornburg LLP in Washington to help lead a practice group there.
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April 25, 2025
Wells Fargo Looks To Upend $22M Disability Bias Loss
Wells Fargo is turning to the Fourth Circuit to challenge a $22.1 million verdict in an Americans with Disabilities Act case claiming the banking giant fired an investment director for requesting telework, according to a North Carolina federal court filing.
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April 25, 2025
Atkins Vows SEC Will Pursue 'Common-Sense' Crypto Policy
The U.S. Securities and Exchange Commission's new Chair Paul Atkins told crypto industry experts on Friday that the SEC will work to establish a "fit-for-purpose" framework for digital assets, while industry participants urged a principles-based approach to cover its rapid innovation.
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April 24, 2025
Rising Gold Prices Should Nix $3M SEC Deal, Ex-Exec Says
A former executive of a company that solicited investments in gold and silver coins has pushed back on the U.S. Securities and Exchange Commission's efforts to collect on a $3 million settlement he struck with the agency, telling a federal judge the deal should be vacated because prices for precious metals have recently "skyrocketed."
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April 24, 2025
Ex-Biscayne CEO Gets 10 Years For $130M Ponzi Scheme
The co-founder and CEO of defunct investment advisory firm Biscayne Capital on Thursday was sentenced in New York federal court to 10 years in prison, over his admitted role in a $130 million Ponzi scheme that defrauded banks and investors in a purported luxury real estate fund.
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April 24, 2025
Judge Won't Halt Auction Over Unpaid SPAC Finder's Fee
A Florida federal judge denied a cloud company's request to halt an auction of its assets to collect a $2.4 million debt, finding that iCoreConnect failed to show it would likely win claims that PIGI Solutions LLC acted as an unregistered broker-dealer when advising on its merger with a blank check company.
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April 24, 2025
Investor Sues To Halt 'Cheap' VC Buyout Of Fla. Health Co.
A Florida health business investor sued its founder, its CEO, a venture capitalist firm and others over negligent misrepresentation in connection to a proposed buyout, alleging a proxy statement omitted conflicts of interest and included deceptive financial data in order to justify the company's "cheap" acquisition.
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April 24, 2025
Long Island Man Gets 18 Years For Father-Son Crypto Scam
A Long Island man convicted of cheating investors out of millions of dollars by falsely promising to serve as a broker for crypto sales while pocketing the funds was sentenced to 18 years in prison on Thursday.
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April 24, 2025
Trump's Regulatory Thaw On Crypto Reaches Federal Reserve
The Federal Reserve on Thursday scrapped guidance that had instructed banks to consult with it before taking up cryptocurrencies, marking the latest step in a broader push to ease regulatory friction for digital assets under President Donald Trump's administration.
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April 24, 2025
FINRA Says 5th Amendment Doesn't Apply In Adviser's Case
The Financial Industry Regulatory Authority has urged a Washington, D.C., federal court to toss a financial adviser's Fifth Amendment challenge against the self-regulating watchdog of brokers, arguing it is not subject to constitutional requirements when carrying out its self-regulatory responsibilities.
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April 24, 2025
Funds Manager Raided Coffers Before Ouster, Court Told
A Texas appeals court on Thursday questioned whether multiple commercial real estate funds had taken a vote before ousting a former manager accused of helping himself to company accounts, asking during oral arguments if the funds had followed correct procedures.
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April 24, 2025
Ex-CEO Of Trump-Tied SPAC Reaches Deal With SEC
The former CEO of the special purpose acquisition company that took President Donald Trump's social media platform public has reached a deal to end a U.S. Securities and Exchange Commission case accusing him of failing to timely alert investors to the prospective deal.
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April 24, 2025
GE Investors' $362.5M Deal Gets Final OK, Attys Get $70M
A New York federal judge on Thursday gave final approval to a $362.5 million deal and awarded attorneys from Kessler Topaz Meltzer & Check LLP and Grant & Eisenhofer PA nearly $70 million in attorney fees for their work in a class action that accused General Electric Co. of fraudulently concealing cash flow problems.
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April 24, 2025
FDIC's Hill Faces Dems' Questions Over DOGE Access, Job Cuts
U.S. Sen. Elizabeth Warren and other Democrats called Thursday for the Federal Deposit Insurance Corp. to provide details about the presence of Elon Musk's Department of Government Efficiency at the agency, citing concerns the regulator could be weakened as it looks to reduce its headcount by roughly 1,250 staffers.
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April 24, 2025
Nevada Asks Court To Toss Kalshi Sports Contract Suit
Gaming authorities in Nevada have urged a federal judge to dismiss a lawsuit brought against them by online trading platform KalshiEx LLC, telling the court that a state agency's efforts to stop the company from offering betting on sports and elections is on solid legal footing.
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April 24, 2025
8th Circ. Quizzes SEC About Fate Of Climate Regs
The U.S. Securities and Exchange Commission has been ordered by the Eighth Circuit to say whether it plans to withdraw or rewrite corporate climate disclosure rules that it is no longer defending in court, with the litigation surrounding the rules being put on hold at the request of several blue states until the agency discloses next steps.
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April 24, 2025
Dragonchain Suit Dropped Amid SEC's Crypto Reg Revisit
The U.S. Securities and Exchange Commission has agreed to end its suit accusing blockchain platform Dragonchain and its founder of selling unregistered securities to thousands of investors, citing the Trump administration's push to clarify regulations surrounding digital assets like cryptocurrency.
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April 24, 2025
9th Circ. Backs Oppenheimer Bid To Avoid FINRA Arbitration
The Ninth Circuit unanimously affirmed Thursday a lower court's ruling blocking two Washington state couples' bid to arbitrate claims against Oppenheimer & Co. Inc. before the Financial Industry Regulatory Authority, saying the couples weren't customers of the financial services company despite getting caught up in a former Oppenheimer employee's Ponzi scheme.
Expert Analysis
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Revived Executive Order Is A Deregulatory Boon To Banks
A recently reinstated 2019 executive order reveals the Trump administration’s willingness to provide unprecedented protections for regulated parties — including financial institutions — but to claim them, banks and other entities must adopt a forward-leaning posture to work with the regulators, say attorneys at Davis Wright.
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3 Ways Civil Plaintiffs Could Fill An FCPA Enforcement Gap
While the Department of Justice recently announced it would deprioritize Foreign Corrupt Practices Act investigations into U.S. businesses without obvious ties to international crime, companies should stay alert to private plaintiffs, who could fill this enforcement void — and win significant civil damages — through several legal channels, says Eric Nitz at MoloLamken.
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Examining Trump Meme Coin And SEC's Crypto Changes
While the previous U.S. Securities and Exchange Commission tended to view most crypto-assets as securities, the tide is rapidly changing, and hopefully the long-needed reevaluation of this regulatory framework is not tarnished by an arguable conflict of interest due to President Donald Trump's affiliation with the $Trump meme coin, say attorneys at Thompson Coburn.
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When Reincorporation Out Of Del. Isn't A Good Idea
While recent high-profile corporate moves out of Delaware have prompted discussion about the benefits of incorporation elsewhere, for many, remaining in the First State may be the right decision due to its deep body of business law, tradition of nonjury trials and other factors, say attorneys at Goodwin.
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Opinion
SEC Defense Bar Should Pursue Sanctions Flexibility Now
The U.S. Securities and Exchange Commission defense bar has an opening under the new administration to propose flexible, tailored sanctions that can substantially remediate misconduct and prevent future wrongdoing instead of onerous penalties, which could set sanctions precedent for years to come, says Josh Hess at BCLP.
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7 Tips For Associates To Thrive In Hybrid Work Environments
Excerpt from Practical Guidance
As the vast majority of law firms have embraced some type of hybrid work policy, associates should consider a few strategies to get the most out of both their in-person and remote workdays, says James Argionis at Cozen O’Connor.
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White Collar Archetypes: Wrangling The Shape-Shifter
In white collar criminal trials, certain pieces of evidence can shape-shift in the jury’s eyes, presenting both challenges and opportunities for defense counsel, says Jack Sharman at Lightfoot Franklin.
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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.