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Securities
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June 24, 2025
Powell Says Leverage Rule Revamp Won't Exclude Treasuries
Federal Reserve Chair Jerome Powell told House lawmakers Tuesday that a forthcoming plan to revamp big-bank leverage limits won't exempt U.S. Treasuries from their calculation, a potential disappointment for financial-sector lobbies that hope to resurrect the pandemic-era carveout.
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June 24, 2025
Dollar General Beats Investor Suit Over Short Inventory, Staff
A Tennessee federal judge on Tuesday dismissed a proposed securities class action accusing Dollar General and its executives of hiding inventory and staffing issues, saying the plaintiffs have failed to show that the defendants acted with an intent to deceive.
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June 24, 2025
Black Accounting Group Sues Over $2.1M Cyber Heist
A nonprofit membership association for Black accountants has filed suit against an Arizona corporation, White Investments LLC, alleging the entity was used by fraudsters in a scheme to steal $2.14 million from the association.
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June 24, 2025
Health Data Co. Must Face Revised Investor Fraud Suit
A Connecticut federal judge won't toss an amended class action claiming a healthcare technology company misled investors about a data platform it claimed to operate that didn't actually exist, ruling that statements about the platform's capabilities are not inactionable, forward-looking statements.
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June 24, 2025
Chancery Won't Let Nielsen Spinoff Block Access To Data
Nielsen Holdings Ltd. won a temporary restraining order in Delaware's Court of Chancery Tuesday blocking a spun-off consumer intelligence venture from denying access to data used by Nielsen and another company that it intends to sell to the dissenting spinoff's competitor.
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June 24, 2025
GOP Senators Unveil Crypto Market Framework Principles
Senate Republicans on Tuesday morning released a set of principles to guide the development of digital asset market structure legislation, their latest push toward regulating the cryptocurrency space following their passage of stablecoin legislation last week.
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June 24, 2025
Judge Cites Slack In Tossing Allbirds Investors' IPO Suit
A California federal judge has once again tossed an investor class action accusing shoemaker Allbirds Inc. of failing to warn investors about the risks of its shifting business strategy ahead of its initial public offering, ruling that shareholders would need to prove they can overcome the U.S. Supreme Court's Slack test in order to move forward with the case.
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June 24, 2025
SEC, Ex-Chicago Hedge Fund Ink $5.8M Deal In Fraud Suit
The U.S. Securities and Exchange Commission has settled with a now-defunct Chicago investment firm in its lawsuit accusing the firm of mismanaging $1 billion in assets, ahead of a trial, with the firm and its co-defendants agreeing to fork over more than $5.8 million collectively.
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June 24, 2025
Ex-NFL Player Says Indicted Adviser Defrauded Him For Years
Retired Carolina Panthers defensive lineman Mike Rucker and his wife unknowingly invested in a Ponzi scheme perpetrated by their longtime financial adviser who is now under criminal indictment in North Carolina, according to a state court complaint they filed accusing him of mismanaging their money for decades.
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June 24, 2025
Twitter Investors Seek Class Cert. In Suit Against Musk
Shareholders of the social media company formerly known as Twitter have asked a New York federal judge to certify their proposed class in a suit accusing Elon Musk of failing to timely disclose his purchase of company stock back when it was publicly traded.
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June 24, 2025
P&G Worker's 'Unworthy' Ex Can't Claim $754K, 3rd Circ. Told
The estate of a late Procter & Gamble employee has urged the Third Circuit to undo a lower court's decisions in favor of the deceased employee's "unworthy ancient girlfriend" from the 1980s, arguing that the Pennsylvania federal judge who granted that former flame the worker's $754,000 retirement fund "failed to comprehend" relevant law.
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June 24, 2025
Dechert Grows In DC With SEC Investment Management Atty
Dechert LLP announced Tuesday that it has added the former assistant chief counsel of the U.S. Securities and Exchange Commission's Division of Investment Management to enhance its capacity to advise clients about financial services and regulatory matters.
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June 24, 2025
Kirkland Hires Goodwin Investment Partner In Boston
Kirkland & Ellis LLP has hired a former counsel to a commissioner of the U.S. Securities and Exchange Commission, who moves to the firm's Boston office after more than five years at Goodwin Procter LLP.
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June 23, 2025
GOP Plan For Merging Agencies Faces Reckoning, And Alarm
The Senate parliamentarian has given a thumbs-down to a Republican budget proposal that would allow President Donald Trump to unilaterally eliminate agencies through mergers and consolidation, adding to what experts say are a host of problems with the little-noticed provision.
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June 23, 2025
FTX Trust Slams Three Arrows' 'Illogical' $1.5B Claim
The FTX bankruptcy recovery trust on Friday objected to a $1.53 billion claim made by the now-liquidated cryptocurrency hedge fund Three Arrows Capital Ltd., saying the "illogical and baseless" claim grossly inflates the actual value of assets associated with its customers' FTX accounts, while offering zero supporting evidence.
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June 23, 2025
Muddy Waters Must Face Suit Over $14M SEC Tipster Award
Investment research service Muddy Waters LLC and its founder cannot escape a lawsuit alleging they stiffed a purported former partner out of his share of a $14 million whistleblower award from the U.S. Securities and Exchange Commission, a New York federal judge ruled Monday.
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June 23, 2025
Deep-Sea Mining Co. Beats Investors' Accounting Fraud Suit
A California federal judge has tossed an investor suit accusing deep sea miner The Metals Co. Inc. and its top brass of flawed accounting related to a strategic partnership, saying the plaintiffs failed to adequately plead the challenged statements were false or that the defendants acted with knowledge of wrongdoing.
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June 23, 2025
Teladoc Says Investor Suit Over User Losses Is 'Illogical'
Telemedicine giant Teladoc Health Inc. and two of its executives seek to shed a proposed investor class action, telling a New York federal judge the shareholder suit makes "illogical" claims that they lied about post-pandemic increases in customer acquisition costs for the company's flagship mental health counseling platform.
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June 23, 2025
SEC Names Wiley Rein Partner As Inspector General
The U.S. Securities and Exchange Commission announced Monday that a white collar defense and government investigations partner at Wiley Rein LLP will serve as the agency's next inspector general, starting late next month.
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June 23, 2025
Drink Co., Founder To Pay SEC $1.1M Over Faux Rihanna Deal
A beverage company and its founder have agreed to give the U.S. Securities and Exchange Commission over $1.1 million as part of a resolution of claims they misused investor funds and inaccurately suggested they were poised to collaborate with pop star Rihanna.
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June 23, 2025
Ex-CEO Of CBD Water Co. Must Face Pump-And-Dump Case
The former CEO of a cannabis-infused water company and a stockholder must face all claims made in a federal indictment accusing them of artificially inflating company shares so they could sell them for a profit, an Ohio federal judge ruled, saying the government has properly alleged a single conspiracy.
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June 23, 2025
Olaplex Cites Slack Ruling In Attempt To Curtail Investor Suit
Hair care brand Olaplex is urging a California federal judge not to certify a class of investors who allege the company failed to flag a regulatory risk ahead of its initial public offering, arguing that "at a minimum" the proposed class should be narrowed under the rubric of the U.S. Supreme Court's 2023 Slack decision.
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June 23, 2025
Fed Joins Peers In Axing Reputational Risk As Exam Factor
The Federal Reserve Board on Monday became the latest regulator to announce that it will no longer consider reputational risk in its examination programs for the supervision of banks.
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June 23, 2025
Mullen Auto Investors' $7.25M Settlement Gets Final OK
A California federal judge has granted final approval to a $7.3 million settlement between Mullen Automotive Inc. and a class of its investors that alleged the company made misrepresentations about its revenues and order volumes to inflate share prices ahead of a merger.
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June 23, 2025
Ontrak Founder Gets 3½ Years In Novel Insider Trading Case
A California federal judge sentenced Ontrak Inc. founder Terren Peizer to 3½ years in prison Monday, following a first-of-its-kind insider trading conviction on accusations that he based a $20 million share sale on material nonpublic information that his health technology company was about to lose its biggest client, Cigna.
Expert Analysis
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A Cold War-Era History Lesson On Due Process
The landmark Harry Bridges case from the mid-20th century Red Scare offers important insights on why lawyers must be free of government reprisal, no matter who their client is, says Peter Afrasiabi at One LLP.
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How Latin American Finance Markets May Shift Under Trump
Changes in the federal government are bringing profound implications for Latin American financial institutions and cross-border financing, including increased competition from U.S. banks, volatility in equity markets and stable green investor demand despite deregulation in the U.S., says David Contreiras Tyler at Womble Bond.
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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SEC Confidential Review Process Provides Issuers Flexibility
The U.S. Securities and Exchange Commission's recently announced enhancements to the process for confidentially submitting draft registration statements will be immediately impactful for issuers seeking to access the public capital markets, and should provide more grounds to explore and plan public offerings, say attorneys at Lowenstein Sandler.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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How Del. Law Rework Limits Corporate Records Requests
Newly enacted amendments to a section of the Delaware General Corporation Law that allows stockholders and beneficial owners to demand inspection of Delaware corporations' books and records likely curtails the scope of such inspections and aids defendants in framing motions to dismiss at the pleading stage, says Jonathan Richman at Brown Rudnick.