Securities

  • June 10, 2021

    Deals Rumor Mill: Robinhood, Flipkart, Sportradar

    Robinhood is pushing its IPO to next month, Indian e-commerce giant Flipkart could raise $3 billion or more at a roughly $40 billion valuation, and Swiss sports data analyst Sportradar is dropping SPAC merger plans to pursue a traditional IPO. Here, Law360 breaks down these and other deal rumors from the past week that you need to be aware of.

  • June 10, 2021

    Rising Star: Simpson Thacher's Stephen Blake

    Stephen Blake of Simpson Thacher & Bartlett LLP has represented Alibaba through a series of multibillion-dollar securities class actions, including securing a $250 million settlement with investors who alleged that the company caused a $33 billion stock drop, earning him a spot among the securities law practitioners under age 40 honored by Law360 as Rising Stars.

  • June 09, 2021

    2nd Circ. Weighs Insider Trading Raps Post-Bridgegate

    A former Centers for Medicare & Medicaid Services worker and two former hedge fund analysts on Wednesday urged the Second Circuit to reverse all of their insider trading convictions following the U.S. Supreme Court's remand in light of its Bridgegate decision, saying the government can't salvage two counts of conviction out of many it now agrees should be set aside. 

  • June 09, 2021

    JPML Won't Centralize Accellion Data Hack Cases

    The Judicial Panel on Multidistrict Litigation has rejected a bid to centralize stockholder class and major customer suits against cloud-based file transfer giant Accellion Inc. over damages tied to multiple hacks of its widely used network, which saw intrusions and user-data thefts on multiple continents.

  • June 09, 2021

    MoneyLion Asked To Provide More Info In CFPB, Minn. Probes

    The Consumer Financial Protection Bureau and Minnesota regulators have sought additional information from MoneyLion Inc. as part of ongoing regulatory investigations into the mobile banking platform, which is preparing to go public through a $2.4 billion blank-check merger.

  • June 09, 2021

    REIT Investor Sues After Bad Financial News Tanked Stock

    An investor in real estate investment trust Washington Prime Group Inc. filed a proposed class action in Ohio federal court Wednesday, accusing the company, its CEO and its chief financial officer of making intentionally false statements that, when revealed, caused the company's stock to drop significantly.

  • June 09, 2021

    House Republican Probes Ouster Of Trump-Era PCAOB Boss

    The top Republican on the House Financial Services Committee asked the head of the U.S. Securities and Exchange Commission on Wednesday to preserve documents related to last week's firing of William Duhnke from the Public Company Accounting Oversight Board.

  • June 09, 2021

    Lexicon Investors Urge 5th Circ. To Revive Diabetes Drug Suit

    Lexicon Pharmaceuticals investors urged a Fifth Circuit panel Wednesday to revive their lawsuit claiming the company overpromised on its ability to bring its prospective diabetes drug Zynquista to market, saying the district judge mislabeled investors' allegations as "fraud by hindsight."

  • June 09, 2021

    Uber, Academics Back SEC's Push For Climate Disclosures

    The U.S. Securities and Exchange Commission's push to develop a new climate risk disclosure framework has garnered positive feedback from a diverse set of backers, including ride-hailing company Uber and academics from major law schools.

  • June 09, 2021

    Crypto Exchange Taps Ex-Prosecutor For Top Compliance Job

    Cryptocurrency exchange Bitstamp has hired a former cybercrime prosecutor with nearly a decade of compliance experience between financial technology companies and more traditional financial firms to be its new chief compliance officer, the company said Wednesday.

  • June 09, 2021

    Elizabeth Holmes' Privilege Loss 'A Cautionary Tale,' Attys Say

    Ex-Theranos CEO Elizabeth Holmes' recent attorney-client privilege loss in a pretrial dispute over her communications with Boies Schiller Flexner LLP serves as "a cautionary tale" to corporate attorneys that the predominant legal standard disfavors executives and that it's incumbent on lawyers to make clear who their clients are, according to legal experts.

  • June 09, 2021

    Cannabis Co. Hexo Beats Another Shareholder Class Action

    Cannabis company Hexo Corp. has again beaten a proposed securities class action alleging it misled investors before its stock price plummeted, with a New York state judge echoing a previous federal ruling that shareholders didn't show the company knew about lower-than-expected demand.

  • June 09, 2021

    Eckert Looks To Stay Investment Adviser's Malpractice Suit

    Eckert Seamans Cherin & Mellott LLC has urged a Pennsylvania state judge to hit the pause button on malpractice claims from an embattled financial adviser as a U.S. Securities and Exchange Commission case over the troubled cash advance business he promoted plays out.

  • June 09, 2021

    Prosecutors In Texas AG Fraud Case Blast Transfer Decision

    The special prosecutors pursuing felony securities fraud charges against the Texas attorney general have urged en banc reconsideration of an appellate panel's decision that the case belongs in Collin County instead of Harris County, saying the decision will "haunt" Texas courts if not corrected.

  • June 09, 2021

    Investors Fall Short On Claims Wind Co. Buyer Had 'Side Deal'

    A Delaware vice chancellor said Tuesday there was no reliable evidence that the buyer of a wind farm company that was developing a project in Illinois struck a "nefarious side deal" to diminish the payout to minority stockholders.

  • June 09, 2021

    SEC Launches Review Of Equity Market Rules

    U.S. Securities and Exchange Commission Chairman Gary Gensler said Wednesday that he had advised SEC staff to review equity markets rules to ensure investors are getting the best prices on trades and are not being slipped hidden costs by more sophisticated market players.

  • June 09, 2021

    ChemoCentryx Hit With Investor Suit Over Drug Trial Claims

    ChemoCentryx Inc. has been hit with a proposed investor class action in California federal court accusing the biopharmaceutical company of overstating the efficacy of its newly developed treatment for an autoimmune disease called ANCA vasculitis.

  • June 09, 2021

    Health Care Sales Pro Gets 4½ Years For $10M Investor Scam

    A Manhattan federal judge hit a health care sales executive with over 4½ years in prison Wednesday for assisting his former boss in a Ponzi-like fraud that cost their employee-investors nearly $10 million.

  • June 09, 2021

    NYC Bar Proposal Could Quell Persistent 'Fear' CCOs Face

    The lack of clarity surrounding U.S. regulators' decisions to bring enforcement actions against chief compliance officers has brought an atmosphere of fear and uncertainty to the profession, a problem that a new proposal from the New York City Bar Association could help solve, according to industry experts.

  • June 09, 2021

    Nixon Peabody Adds Top DOJ Enforcer To White Collar Group

    Nixon Peabody LLP said Wednesday it is adding a veteran prosecutor from the U.S. Department of Justice's Criminal Division to its government investigations and white collar defense practice.

  • June 09, 2021

    Attys For Qudian Investors Net Nearly $3M Fee

    A team of mostly Glancy Prongay & Murray LLP attorneys will receive nearly $3 million for their work representing investors in a Chinese online microlender who alleged the company failed to mention a major auto loan project when it held its IPO, a federal judge in Manhattan decided.

  • June 09, 2021

    Rising Star: Morgan Lewis' Laura McNally

    Laura McNally of Morgan Lewis & Bockius LLP has successfully argued pivotal motions to dismiss and examined expert witnesses at trial in several high-stakes securities disputes — something very few lawyers can say at her age — earning her a spot among the top securities law practitioners under 40 honored as Law360 Rising Stars.

  • June 08, 2021

    US Financial Crime Compliance Costs Surged In 2020: Survey

    Projected spending by U.S. financial institutions on financial crime compliance shot up by one-third to $35.2 billion in 2020 compared to the previous year, in part due to "increased due diligence times and costs" brought on by the COVID-19 pandemic, according to a new report that surveyed more than 1,000 compliance professionals globally.

  • June 08, 2021

    Ex-Atty Ducks Prison For Football-Related Stock Scheme

    A former Illinois attorney on Tuesday avoided prison time after being accused of a scheme to fraudulently convert corporate debt into stock and falsely inflate the value of a company he secretly controlled through bogus statements involving a gaming company and the National Indoor Football League.

  • June 08, 2021

    Highland Capital's Ch. 11 Contempt Motion To Be Granted

    A Texas bankruptcy judge said Tuesday she would be granting a motion from bankrupt investment firm Highland Capital Management seeking sanctions against parties who pursued litigation claims against the debtor's CEO despite a court order barring them, but said she needed time to determine the amount of the sanctions.

Expert Analysis

  • 9th Circ. Case Could Gut Section 11 Shareholder Protections

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    The Ninth Circuit’s pending decision in Pirani v. Slack — brought in the wake of the U.S. Securities and Exchange Commission’s recent rule changes allowing companies to circumvent the traditional initial public offering process — could upend shareholders’ primary recourse against companies that issue false and misleading statements, say John Browne and Lauren Ormsbee at Bernstein Litowitz.

  • Don't Forget Due Diligence In Race For Lateral Associate Hires

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    Amid high demand for associates and aggressive competition to attract talent, law firms should take three key steps to conduct meaningful prehire due diligence and safeguard against lateral hiring mistakes that can hurt their revenue and reputation, says Michael Ellenhorn at Decipher.

  • New Circuit Split Complicates Domestic Securities Test

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    The First Circuit’s recent holding in U.S. Securities and Exchange Commission v. Morrone cements a new circuit split over when a securities transaction is considered domestic, introducing new wrinkles to the already-vague standards courts have relied on to interpret the U.S. Supreme Court's Morrison test, say Eric Belfi and David Saldamando at Labaton Sucharow.

  • Opinion

    ESG Framework Must Elevate Workplace Equity

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    As the U.S. Securities and Exchange Commission continues work on environmental, social and governance regulations, now is an ideal time to increase focus on social issues like gender and racial equity in order to elevate safe, fair and dignified work for all, say Tina Tchen at Time's Up and Sara Aviel at Margalit Strategies.

  • Addressing Environmental Justice As Part Of ESG Initiatives

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    Recent calls for racial equity and government regulators' increasing focus on social and environmental concerns make this a good time for companies to integrate environmental justice into their environmental, social and governance efforts, say Stacey Halliday and Julius Redd at Beveridge & Diamond, and Jesse Glickstein at Hewlett Packard.

  • Privilege Waiver Risks From Reps & Warranties Insurance Use

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    The use of representations and warranties insurance in M&A could result in waiver of the attorney-client privilege, but policyholders can do a number of things to minimize disclosure of transaction-related information when negotiating the insurance policy and after a claim arises, say attorneys at Bass Berry.

  • How Tech Race Bill Expands CFIUS Purview To Academia

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    A recently proposed bill that extends Committee on Foreign Investment in the United States oversight to certain foreign funding of U.S. academic institutions highlights policymakers’ view that higher education institutions are not exempt from ongoing policy and legal efforts to press the U.S.-China technology race, says Hdeel Abdelhady at MassPoint Legal.

  • Anti-Money Laundering Risks Amid Rising NFT Popularity

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    Last quarter’s nonfungible token sales were 20 times higher than the prior quarter’s volume, making it important that individuals and financial institutions consider several provisions of the recently passed Anti-Money Laundering Act that present compliance risks for NFT transactions, say attorneys at King & Spalding.

  • Lessons In Civility From The Alex Oh Sanctions Controversy

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    Alex Oh’s abrupt departure from the U.S. Securities and Exchange Commission and admonishment by a D.C. federal judge over conduct in an Exxon human rights case demonstrate three major costs of incivility to lawyers, and highlight the importance of teaching civility in law school, says David Grenardo at St. Mary's University.

  • Crypto's Enviro Costs Present Challenges For Companies

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    As the value and popularity of cryptocurrency and other digital assets burgeon, their hidden environmental costs will attract increasing scrutiny — potentially forcing companies to reconcile their desire to embrace new technology with their publicly professed sustainability goals, say attorneys at Crowell & Moring.

  • Opinion

    Biz Record Admissibility Rule Must Adapt To An ESI World

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    The federal rule that permits the use of business records as evidence must be amended to address the unreliability of electronically stored information and inconsistent court frameworks on email admissibility, say Josh Sohn and Nadia Zivkov at Stroock.

  • What US-French Securities Oversight Efforts Mean For Cos.

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    Because increasing cooperation between securities regulators in the U.S. and France may strengthen investigative efficiencies, regulated entities should anticipate heightened enforcement risk facilitated by cross-border information sharing, say attorneys at Bonifassi Avocats and Ice Miller.

  • Lessons From COVID Securities Rulings On Dismissal Bids

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    Motions to dismiss the first pandemic-related securities class actions were met with varying degrees of success, but show that plaintiffs still face hurdles bringing claims related to COVID-19's impact on a company's operations, and highlight ongoing litigation and enforcement risks issuers should consider, say Robert Long and Elizabeth Clark at Alston & Bird.

  • Opinion

    Justices Must Weigh Class Cert. Denial Stats In Goldman Case

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    In resolving the issues presented in Goldman Sachs v. Arkansas Teacher Retirement System, the U.S. Supreme Court should consider the infrequency with which class certification is denied in securities class actions, and the high costs inflicted on publicly traded companies and their investors, say Jared Gerber and Allison Kim at Cleary.

  • Series

    Judging A Book: Rodriguez Reviews 'When Machines Can Be Judge'

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    Katherine Forrest's new book, "When Machines Can Be Judge, Jury, and Executioner," raises valid transparency concerns about artificial intelligence tools used by judges when making bail and sentencing decisions, but her argument that such tools should be rejected outright is less than convincing, says U.S. District Judge Xavier Rodriguez of the Western District of Texas.

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