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Securities

  • June 21, 2019

    Court's Error Gets Con Man Off The Hook, 7th Circ. Says

    A convicted fraudster who was sentenced to five extra years in prison for continued attempts to solicit investors during his supervised release can walk free because the trial judge didn’t issue a proper summons or warrant, the Seventh Circuit ruled Thursday.

  • June 21, 2019

    Crypto Co. Asks Court To Force Arbitration In Fraud Suit

    Centra Tech has revived its bid to have a Florida federal court either force arbitration or toss a proposed class action accusing it of fraudulently raising $32 million in an initial coin offering, telling the court investors agreed to mandatory arbitration when they purchased their digital tokens.

  • June 21, 2019

    Newman Cited In Tossing Ex-SAC Capital Exec's Guilty Plea

    A New York federal judge on Friday vacated the guilty plea of a former portfolio manager at SAC Capital who copped to insider trading charges and cooperated with the government, saying the plea was insufficient given subsequent developments in insider trading law.

  • June 21, 2019

    Cray Investor Challenges $1.3B Sale To Hewlett Packard

    A Cray Inc. investor is claiming the supercomputer company's proposed $1.3 billion sale to Hewlett Packard Enterprise is "tainted" by conflicts of interest and a lack of information necessary for stockholders to cast informed votes on the proposal.

  • June 21, 2019

    Inuvo Scraps Planned $75.5M Deal For ConversionPoint

    Inuvo and ConversionPoint Technologies said Thursday they're calling off a previously announced deal under which Inuvo would have acquired the California-based e-commerce technology company for roughly $75.5 million.

  • June 21, 2019

    Utah Mining Biz To Pay $9.3M For Alleged Fraud

    A Utah federal court on Thursday ordered a Salt Lake City-area company that claimed to have an ecofriendly way of extracting precious metals from ore and its owner to cough up roughly $9.3 million for allegedly misleading investors about potential returns.

  • June 21, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen a cryptocurrency operator facing investigations in the U.S. sue HSBC, a number of food import-export companies hit cargo giant MSC with claims, and the Lloyds-owned Bank of Scotland take on the attorney general. Here, Law360 looks at those and other new claims in the U.K.

  • June 21, 2019

    Ex-Barclays CEO Acquitted, Others Face Retrial In SFO Case

    An English appeals court on Friday upheld the acquittal of former Barclays chief executive John Varley on fraud charges over the bank’s emergency cash-raising during the financial crisis, although three other former executives must face a retrial trial in the landmark prosecution.

  • June 20, 2019

    Senate Confirms New SEC Commissioner

    The U.S. Senate voted Thursday to confirm President Donald Trump's nominee to fill an open spot as a commissioner at the U.S. Securities and Exchange Commission.

  • June 20, 2019

    Facebook's Libra Unveiling Spurs Regulatory Uncertainty

    Facebook's new cryptocurrency Libra looks to become the most widely used digital token in the world when it launches in 2020, raising questions about systemic risks it might pose and how financial regulators will act.

  • June 20, 2019

    ISN Merger Suit Decision Is 'Written,' NY Judge Warns Attys

    A New York state court judge heard oral arguments Thursday from investment firms Polaris and Ad-Venture and then cryptically told attorneys that he had already penned a ruling, repeatedly suggesting they settle their scuffle over an acrimonious private equity buyout.

  • June 20, 2019

    Zimmer Biomet Hit With Chancery Suit Over $2B PE Cashout

    Medical device manufacturer Zimmer Biomet has been hit with a derivative suit in Delaware Chancery Court alleging company officers hid compliance problems at a factory that led to a stock drop when they came to light, while two directors helped private equity funds cash out to the tune of nearly $2 billion before stock prices plummeted.

  • June 20, 2019

    SEC Accuses Overseas Traders Of Manipulation Scheme

    The U.S. Securities and Exchange Commission has accused citizens of Malaysia, Singapore and China of faking legitimate trading in shares of a Las Vegas company that supposedly holds a patent related to cancer diagnosis but has no cash or assets.

  • June 20, 2019

    Shkreli Settles Disputes With His Former Drug Co. Retrophin

    Roughly three weeks after suing the supposed masterminds of his ouster from biotech company Retrophin Inc., notorious pharmaceutical executive Martin Shkreli has settled the suit as well as a years-old fight with his former company.

  • June 20, 2019

    Late QuadrigaCX Founder Mismanaged Crypto, Report Says

    The deceased CEO of QuadrigaCX may have used millions in customer money to fund his lavish lifestyle and cover fees incurred by careless transactions, according to a new report that paints a dismal picture of the troubled Canadian cryptocurrency exchange’s finances.

  • June 20, 2019

    Billionaire's Exit From Cancer Drug Co. Gets OK In Del.

    The Delaware Chancery Court approved a settlement proposal Thursday to end a stockholder derivative suit over the management of an immunotherapy company by allowing billionaire physician Patrick Soon-Shiong to walk away from his controlling interest in the company with his investment in hand.

  • June 20, 2019

    Slack's Debut Bodes Well For Direct Listings

    Shares of workplace messaging company Slack rose following its direct listing on Thursday, marking the second time in more than a year that a large private company went public by skipping a conventional initial public offering and landed smoothly.

  • June 20, 2019

    Mammoth Energy Hid Puerto Rico Contract Issues, Class Says

    A proposed class of Mammoth Energy investors slapped the company with a lawsuit in Oklahoma federal court Wednesday, claiming a precipitous drop in share price is the result of revelations that it concealed investigations into $1.8 billion in Puerto Rico power grid restoration contracts.

  • June 20, 2019

    Third Witness Implicates Fund CEO As Gov't Heaps Evidence

    A third witness put the former CEO of Premium Point Investments at the heart of an alleged $100 million fraud scheme Thursday as Manhattan federal prosecutors piled up evidence suggesting he knew of corruption inside the bankrupt mortgage-debt hedge fund.

  • June 20, 2019

    3rd Circ. Releases Cemetery Co. From Stock-Drop Claims

    The Third Circuit on Thursday affirmed the dismissal of a securities suit accusing StoneMor Partners LP of misrepresenting its source of investor distribution payments, finding the cemetery operator was transparent about its accounting methods.

  • June 20, 2019

    Atty, Retired Army Col. Guilty In $84M Haiti Bribery Scheme

    A federal jury in Boston found an attorney and a retired U.S. Army colonel guilty on Thursday of making a plan to bribe government officials in Haiti in exchange for approvals on an $84 million port project.

  • June 20, 2019

    Justices To Decide If Puerto Rico Oversight Board Is Legal

    The U.S. Supreme Court on Thursday agreed to review a First Circuit decision that the members of the board overseeing Puerto Rico's bankruptcy were appointed unconstitutionally.

  • June 20, 2019

    Ex-Hertz GC Aims To Escape $200M Accounting Errors Suit

    The former general counsel of Hertz Global Holdings Inc. asked a New Jersey federal court Thursday to toss claims against him in a company lawsuit alleging that he and two other onetime executives were to blame for accounting errors that led to more than $200 million in purported damages for the rental car giant.

  • June 20, 2019

    Glancy Prongay To Lead Maiden Holdings Investor Suit

    National class action firm Glancy Prongay & Murray LLP will serve as lead counsel representing investors in a stock-drop suit against reinsurance company Maiden Holdings Ltd. over alleged misrepresentation of its underwriting and risk management practices, a New Jersey federal magistrate judge ordered Thursday.

  • June 20, 2019

    Opko Granted Stay On Fla. 'Pump-And-Dump' Cases

    A Florida appeals court on Wednesday granted pharmaceutical firm Opko Health Inc.’s request to pause proceedings in two derivative shareholder lawsuits over an alleged $27 million pump-and-dump scheme in deference to previously filed suits in Florida federal court and Delaware.

Expert Analysis

  • Law Firms Can Do Better With Their Mentoring Programs

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    There are a few practical, proactive steps law firms can take to create a mentoring program that pays dividends — instead of creating a mediocre program that both parties see as an obligation, says Kate Sheikh of Major Lindsey & Africa.

  • Opinion

    The SEC Should Let Broker-Dealers Unbundle Research Costs

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    The U.S. Securities and Exchange Commission has the tools to allow U.S. money managers to unbundle research from execution, and pay for research with hard dollars — a legally well-founded and common-sense policy outcome, say attorneys with Sidley Austin.

  • The Latest Developments In Criminal Cases Against Execs

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    This spring, there was some noteworthy news in white collar government investigations impacting executives, including the first successful prosecution in the opioid bribery scheme and the first criminal charges for failure to report under the Consumer Product Safety Act, say attorneys at Miller & Chevalier.

  • 'Rocket Docket' Justifies Its Name For 11th Straight Year

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    The U.S. District Court for the Eastern District of Virginia “rocket docket” is still the fastest federal civil trial court in the country despite some recent trends causing its median time to trial to grow to 13.2 months, says Robert Tata of Hunton.

  • Companies In Canada Must Prepare For Shareholder Activism

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    The trend of increased shareholder activism in Canada continues in 2019, with 10 public proxy contests launched since January. It is important that boards and management try to listen and understand the views of shareholders — including activists — in good faith, say Jonathan Feldman and Michael Partridge of Goodmans.

  • Managing ESG Consultants In Private Equity Transactions

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    Integration of environmental, social and governance factors is becoming mainstream in private equity investment. Jennie Morawetz at Kirkland provides a framework for legal counsel tasked with integrating an outside-consultant led ESG due diligence process into a client's other due diligence work streams.

  • What Securities Pros Need To Know About SEC Data Analytics

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    The U.S. Securities and Exchange Commission’s data analytics efforts have been repeatedly cited in SEC press releases announcing successful investigations and cases. Understanding the commission's work in this area is essential for compliance professionals at investment advisers and broker-dealers, say Charles Riely and Danielle Muniz of Jenner & Block.

  • What May Be Ahead For PE Infrastructure Investment In Asia

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    Despite some softening in Asian infrastructure deal volumes in 2018 and the first part of 2019, both fundraising targets and long-term investment prospects remain strong for private equity sponsors, say Scott Jalowayski and James Jackson at Gibson Dunn.

  • China's Amended Investment Law Leaves Some Details Vague

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    China's recently amended Foreign Investment Law promises outside investors a more stable, transparent and predictable investment environment in China. But concerns remain that the law was rushed through to ease trade tensions, and that some of its provisions are not clearly defined, says Yuanyou Yang of Duane Morris.

  • Measuring The Value Of A Law Firm's Social Media Efforts

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    Most legal marketers struggle to show the return on investment of their social media efforts, but establishing and answering several key questions can help demonstrate exactly how social media programs contribute to a law firm's bottom line, say Guy Alvarez of Good2bSocial and communications consultant Tom Orewyler.

  • Opinion

    SEC Should Use Data-Driven Method For Materiality Standards

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    Instead of setting materiality standards by enforcement edicts, which investors may not actually find useful, the U.S. Securities and Exchange Commission should gather additional data via studies and surveys to find out what information investors really need, say Peter Chan and Kristal Petrovich of Morgan Lewis.

  • Collateral Descriptions May Need More Specific Drafting

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    For years, courts ruled that collateral descriptions in financing statements just needed to give enough notice to cause subsequent creditors to make further inquiry with the debtor, but there are signs that the “further inquiry doctrine” may not offer secured creditors as much protection as it once did, says Peter Beardsley of Loeb & Loeb.

  • The Uncertain Future Of Gov't Investigations Post-Deutsche

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    A New York federal judge's recent decision in the Deutsche Bank Libor-rigging case U.S. v. Connolly threatens to upend decades of established cooperation practice in government investigations, a fact to which the opinion makes only a passing reference, say attorneys at Arnold & Porter.

  • The SEC's Looming Initial Exchange Offering Sweep: Part 2

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    In an initial exchange offering, a cryptocurrency trading platform hosts an offering of another company's digital tokens. But none of the platforms that offer IEOs are registered as securities exchanges with the U.S. Securities and Exchange Commission, and could face dire consequences as a result, says cybersecurity consultant John Reed Stark.

  • The SEC's Looming Initial Exchange Offering Sweep: Part 1

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    An initial exchange offering is an offering administered by a cryptocurrency trading platform on behalf of a company issuing cryptocurrency tokens. While IEOs have captivated cryptocurrency enthusiasts, they are also capturing the attention of the U.S. Securities and Exchange Commission, says cybersecurity consultant John Reed Stark.

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