Securities

  • April 08, 2025

    4th Circ. Affirms Dismissal Of IonQ Shareholder Fraud Suit

    The Fourth Circuit on Tuesday declined to revive a shareholder class action against quantum computer developer IonQ, holding that the plaintiffs' reliance on a short seller's report didn't clear the "high bar" for bringing their securities fraud claims against the company.

  • April 08, 2025

    Crypto Investor Sues In Del. Alleging $16M Pump, Dump Loss

    Cayman Islands-registered cryptocurrency venture Hash Asset Management Ltd. sued two other crypto entities and four individuals in Delaware's Court of Chancery on Tuesday, alleging a "pump and dump" scheme that saw more than $16 million allegedly siphoned away in violation of token deposit and lending agreements.

  • April 08, 2025

    TelexFree Investors Can't Sue Wells Fargo, Others As Class

    A Massachusetts federal judge on Tuesday refused to grant class certification in a suit from investors claiming they lost money in the massive TelexFree Ponzi scheme, siding with a handful of defendants remaining in the multidistrict litigation.

  • April 08, 2025

    Four Robinhood Users Must Arbitrate Meme Stock Claims

    A Florida federal judge overseeing the multidistrict litigation over Robinhood's decision to freeze trading in certain so-called meme stocks ordered four remaining plaintiffs in the case to arbitrate their claims, writing in an order that there's no dispute a valid arbitration agreement exists.

  • April 08, 2025

    FDIC To Look At 'Indexing' Size Thresholds For Bank Rules

    The Federal Deposit Insurance Corp.'s acting chief said Tuesday that the agency may recalibrate what counts as a large bank after years of inflation and is working on other broadly deregulatory plans for banks' living-will filings, a key leverage rule and more.

  • April 08, 2025

    SEC's Uyeda Urges Review Of Federal-State Oversight Splits

    The acting chairman of the U.S. Securities and Exchange Commission on Tuesday called for a reevaluation of the threshold that divides federal and state oversight of investment advisers, saying he wants to better conserve SEC and taxpayer resources by focusing on the largest advisers.

  • April 08, 2025

    Attys In Javice Case Warned About Post-Trial Juror Contact

    A Manhattan federal judge on Monday cautioned attorneys in the criminal case against Frank founder Charlie Javice to adhere to the rules governing post-trial contact with jurors who convicted her and another executive on fraud and conspiracy charges stemming from JPMorgan Chase & Co.'s ill-fated acquisition of the educational startup.

  • April 08, 2025

    Georgia Day Trader Settles SEC's Manipulation Suit For $1.5M

    A Georgia-based day trader has agreed to pay over $1.5 million to end a U.S. Securities and Exchange Commission lawsuit claiming that he was central to a scheme to manipulate trading prices for certain issuers via false rumors he distributed on his financial media network.

  • April 08, 2025

    Compliance Chief Wants Out Of SEC Fraud Suit

    The chief compliance officer and general counsel of a wealth management firm has urged an Illinois federal judge to dismiss him from a U.S. Securities and Exchange Commission suit over an alleged offering fraud by former representatives at his firm, saying "the commission does not even understand what its own pleading burden in this case is."

  • April 08, 2025

    MSP Recovery Sued For Docs In Del. After $33B SPAC Dispute

    A stockholder of healthcare data analytics company MSP Recovery has demanded the company turn over books and records over allegations that it admitted to financial difficulties and federal investigations shortly after finalizing a $32.5 billion blank-check merger nearly three years ago.

  • April 08, 2025

    Calif. Opposes Bid To Freeze State Corporate Climate Regs

    California is opposing a move by the U.S. Chamber of Commerce and other business groups to stop a pair of regulations on corporate climate reporting from going into effect, telling a federal judge that the state is allowed to protect shareholders from potentially deceptive or misleading commercial speech.

  • April 08, 2025

    Fla. Cloud Co. Accuses Ex-Board Member Of SPAC Fraud

    A Florida cloud storage business has accused a former board member of securities fraud in federal court, alleging that a side agreement splitting a finder's fee with an unregistered broker he introduced for a merger deal wasn't disclosed, and now the company faces shutdown if an asset sale isn't halted.

  • April 08, 2025

    Bernstein Litowitz, Kessler Topaz Seek To Lead GSK Investors

    Bernstein Litowitz Berger & Grossmann LLP and Kessler Topaz Meltzer & Check LLP are seeking lead counsel roles in a proposed securities class action against GSK PLC in Pennsylvania federal court, citing a long history of collaboration and billions recovered for shareholders.

  • April 08, 2025

    DOJ Shuts Crypto Unit, Shifts Focus From Intermediaries

    The U.S. Department of Justice is disbanding its crypto unit and directing prosecutors to focus on cases against individuals who harm crypto investors or use digital assets to further other illegal activity, instead of bringing cases against platforms that enable the conduct, according to a memo circulated to all department employees.

  • April 08, 2025

    Justices Halt Order To Reinstate Federal Workers

    The U.S. Supreme Court on Tuesday hit pause on a California federal court order reinstating tens of thousands of probationary federal workers who were fired from six agencies, agreeing with the Trump administration that the nonprofit groups that obtained the order lack standing to challenge the firings. 

  • April 07, 2025

    Vice Chancellor Warns Plaintiff Over AI-Generated Filings

    A Delaware vice chancellor has threatened a plaintiff with sanctions in an appraisal action for allegedly using a "hallucinating" generative artificial intelligence program to prepare his motions and has ordered the plaintiff to disclose his use of AI in court filings moving forward.  

  • April 07, 2025

    Chancellor Asks About High Court Case In $2.1B SPAC Row

    A Delaware vice chancellor wondered Monday why neither side of a derivative suit over the $3 billion take-public merger of battery maker Microvast Holdings Inc. spoke about a recent state supreme court case relevant to the dispute.

  • April 07, 2025

    Coinbase Accused Of Scam Prevention Shortfalls

    A California man has filed a proposed class action seeking to hold cryptocurrency exchange Coinbase liable for failing to implement safeguards against fraudsters who run "pig-butchering" scams.

  • April 07, 2025

    OMB Issues Guidance On Agency Use, Purchasing Of AI

    The Office of Management and Budget issued a pair of memorandums last week that replaced the Biden administration's safeguards on the federal acquisition of artificial intelligence with a policy aimed at accelerating federal agencies' use and procurement of artificial intelligence.

  • April 07, 2025

    Justices' Slack Ruling 'Forecloses' Palantir Shareholder Suit

    Palantir Technologies Inc. has escaped a proposed class action accusing it of deceiving investors about its growth potential, with a Colorado federal judge ruling that his hands were tied by a recent U.S. Supreme Court ruling that "likely foreclosures" certain shareholder lawsuits against companies that go public via a direct listing.

  • April 07, 2025

    Starbucks Asks To Dump Investors' 'Triple Shot' Strategy Suit

    Starbucks has urged a Seattle federal judge to toss a consolidated proposed class action alleging that the coffee chain made overly positive projections for its "Triple Shot Reinvention" strategy that hurt investors when the financial results didn't bear out the company's optimism, saying the plaintiffs haven't shown that Starbucks made any false statements.

  • April 07, 2025

    Pot Co. Lied About Prerolled Joint Costs, Investor Claims

    An investor in cannabis company Canopy Growth Corp. is suing in New York federal court, alleging that the company misled him and other investors about the costs of a prerolled joint product and vape devices, leading to a 27% stock drop when the truth came out.

  • April 07, 2025

    SEC Orders Crypto Guidance Review As Deregulation Looms

    Acting Chair of the U.S. Securities and Exchange Commission Mark Uyeda ordered a review of a number of staff statements on digital assets, to potentially change or withdraw them in light of the White House's policy directive on deregulation and recommendations from the Department of Government Efficiency.

  • April 07, 2025

    Chemours Co. Hit With Insider Derivative Suit In Del.

    Attorneys for a Chemours Co. stockholder have docketed a sealed derivative suit in Delaware's Court of Chancery, seeking damages on the company's behalf from 13 current or former directors and officers, alleging breaches of fiduciary duty and unjust enrichment in connection with alleged manipulation of financial disclosures.

  • April 07, 2025

    SolarEdge Claims Get Tossed Again In Second Try

    A New York federal judge has once again tossed certain claims in a securities class action accusing SolarEdge Technologies Inc. of misrepresenting the demand for its solar energy products in Europe, but he gave investors the chance to file a third amended complaint.

Expert Analysis

  • Chancery May Have Raised Bar For Books, Records Requests

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    The Delaware Court of Chancery recently approved the denial of a books and records demand against Amazon, raising important questions about what evidence and purpose a stockholder is required to show to succeed on such a request, say attorneys at Selendy Gay.

  • The Blueprint For A National Bitcoin Reserve

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    The new administration has the opportunity to pave the way for a U.S.-backed crypto reserve, which could conceptually function as a strategic asset akin to traditional reserves like gold markets, hedge against economic instability, and influence global crypto adoption, say attorneys at Duane Morris.

  • Rethinking Litigation Risk And What It Really Means To Win

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    Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.

  • Takeaways From SEC's Registered Investment Cos. Risk Alert

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    The U.S. Securities and Exchange Commission's Division of Examinations' recent risk alert pertaining to registered investment companies provides a high-level overview of its risk-based approach to selecting RICs for examination — a potential hint that the division is investigating some of the covered topics, say attorneys at Simpson Thacher.

  • How DOGE's Bite Can Live Up To Its Bark

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    All signs suggest that the Department of Government Efficiency will be an important part of the new Trump administration, with ample tools at its disposal to effectuate change, particularly with an attentive Republican-controlled Congress, say attorneys at K&L Gates.

  • Small Biz Caught In Corporate Transparency Act Crossfire

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    Despite compliance being put on hold due to a nationwide preliminary injunction, small businesses have been caught in the middle of the legal battle over the Corporate Transparency Act — and confusion over the law's requirements could result in major penalties, say attorneys at Snell & Wilmer.

  • 5 Notable Information Security Events In 2024

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    B. Stephanie Siegmann at Hinckley Allen discusses 2024's largest and most destructive data breaches seen yet, ranging from ransomware disrupting U.S. healthcare systems on a massive scale, to tensions increasing between the U.S. and China over cyberespionage and the control of U.S. data.

  • Series

    Playing Rugby Makes Me A Better Lawyer

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    My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.

  • What Broker-Dealers Must Know Before Selling Bitcoin ETPs

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    Interest in bitcoin exchange-traded products is already high, and only expected to grow in light of the incoming Trump administration's pro-crypto stance, but broker-dealers must still consider numerous regulatory requirements before recommending a bitcoin ETP to a client, say Frank Weigand and Justine Woods at Cahill Gordon.

  • Series

    Texas Banking Brief: All The Notable Legal Updates In Q4

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    The fourth quarter of 2024 brought noteworthy developments to the Texas financial services sector, particularly a new state artificial intelligence bill and a Consumer Financial Protection Bureau rule that will affect an outsize number of Texas community banks, says Tyler George at Naman Howell.

  • Cyber Disclosure Is A Mainstay In 2025 SEC Exam Priorities

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    Despite a new administration and a new U.S. Securities and Exchange Commission chair incoming, the SEC's 2025 examination priorities signal that cybersecurity disclosures and risk management practices will remain important due to the growing threat of cyberattacks, says Anjali Das at Wilson Elser.

  • Opinion

    No, Litigation Funders Are Not 'Fleeing' The District Of Del.

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    A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.

  • The Compliance Trends And Imperatives On Tap In 2025

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    The corporate ethics and compliance landscape is rapidly evolving, posing challenges from conflicting stakeholder expectations to technological disruptions, and businesses will need to explore human-centered, data-driven and evidence-based practices, says Hui Chen at CDE Advisors.

  • 5 E-Discovery Predictions For 2025 And Beyond

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    In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.

  • Best Practices To Find Del. Earnout Provisions That Hold Up

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    Recent Delaware earnout litigation illustrates the need for careful drafting and proactive planning to avoid later divergent interpretations of the signed contract, and a series of drafting tips can help, say attorneys at Cozen O'Connor.

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