Securities

  • June 30, 2022

    Grayscale Sues SEC After It Rejects Another Bitcoin ETF

    Grayscale Investments has asked the D.C. Circuit to review the U.S. Securities and Exchange Commission's decision to turn down yet another effort to launch an exchange-traded fund that holds bitcoin.

  • June 30, 2022

    Fla. Payday Lender To Pay $39M In SEC Investment Fraud Suit

    A Florida federal judge entered final judgment in favor of the U.S. Securities and Exchange Commission after a Miami payday loan company agreed to pay more than $39 million to resolve claims it fraudulently raised $66 million from more than 500 investors.

  • June 30, 2022

    DOJ Charges 3 Fla. Men With Running $100M Crypto Scheme

    The U.S. Department of Justice announced Thursday it charged three men who ran a purported hedge fund in Florida with wire fraud and securities fraud for allegedly generating $100 million in a cryptocurrency-based Ponzi scheme.

  • June 30, 2022

    3rd Circ. Won't Revive Hedge Fund Fintech Co.'s Comp Suit

    A Third Circuit panel refused Thursday to revive financial services software provider SEI Global's suit against rival SS&C Technologies, agreeing with a lower court that the row over a terminated business relationship amounts to a contract dispute, not a competition law fight.

  • June 30, 2022

    CFTC Accuses South African Of Running $1.7B Bitcoin Fraud

    The Commodity Futures Trading Commission filed suit Thursday against a South African citizen and his company for allegedly operating a multilevel marketing scheme to sell fraudulent investments in bitcoin throughout the U.S.

  • June 30, 2022

    Judge Orders Atty To Pay Bigger Fine In SEC Pot Scam Case

    A California federal judge has ramped up the proposed penalty that an Arizona attorney must pay the U.S. Securities and Exchange Commission over claims that he was part of a scheme to defraud would-be investors out of $25 million by touting plans for a pair of marijuana businesses in the Golden State.

  • June 30, 2022

    FINRA Fines Barclays $2.8M Over Disclosure Issues

    Barclays Capital Inc. will pay $2.8 million to settle allegations from the Financial Industry Regulatory Authority that it included inaccurate information in trade confirmations sent to customers and failed to put a proper compliance supervisory system in place.

  • June 30, 2022

    Deutsche, NatWest Eye Deals Worth $34M In Swiss Libor Case

    A proposed class of investors accusing various financial institutions of conspiring to manipulate the Swiss franc Libor has asked a New York federal court to approve a $21 million settlement with NatWest Markets and a $13 million settlement with Deutsche Bank.

  • June 30, 2022

    Del. Class Action Over Carvana Stock Offer Can Move Ahead

    Stockholders of online used car platform Carvana Co. who are alleging breaches of fiduciary duties in a $600 million direct stock offering may proceed with their class action against the father and son who founded the company, Delaware's Court of Chancery ruled Thursday.

  • June 30, 2022

    Feds Ask For Help Catching Fugitive 'CryptoQueen' Ignatova

    Top federal law enforcement authorities in New York asked Thursday for the public's help in finding "CryptoQueen" Ruja Ignatova, the fugitive head of the $4 billion global OneCoin cryptocurrency scam, dispelling rumors that the famed fugitive may be dead.

  • June 30, 2022

    Ex-Apple Legal Bigwig Cops To Insider Trading

    The former director of corporate law at Apple admitted Thursday to an insider-trading scheme that netted him hundreds of thousands of dollars, New Jersey federal prosecutors said.

  • June 30, 2022

    Ex-Pot Co. Execs Drop Suit Against Data Co.

    The former CEO and chief technology officer of cannabis data platform CannaRegs have dropped their federal lawsuit against the company "in good faith," saying that evidence unearthed in discovery disproved their claim that they were duped into prematurely selling their shares.

  • June 30, 2022

    Spirit Deal Up In The Air After Shareholder Meeting Delayed

    Spirit Airlines said Wednesday it is postponing until July 8 a shareholder meeting on whether to approve its pending $6.6 billion merger with Frontier Airlines Inc., a move welcomed by JetBlue, which is seeking its own tie-up with Spirit.

  • June 29, 2022

    Wells Fargo Faces Top Dem's Wrath, Investor Suit Over Hiring

    Wells Fargo has been hit with a proposed investor class action tied to allegations that the bank conducted fake job interviews to satisfy internal diversity guidelines, a claim that is also fueling a top Democratic lawmaker's call for a regulatory crackdown on the bank to end its "pattern of bad behavior."

  • June 29, 2022

    UBS Strikes $25M Deal With SEC Over Alleged Trading Fraud

    The U.S. Securities and Exchange Commission and UBS Financial Services Inc. agreed to a $25 million settlement Wednesday on claims that the firm sold roughly $2 billion of a complex investment strategy without properly explaining the risks to its advisers and clients.

  • June 29, 2022

    Crypto Hedge Fund To Liquidate After $660M Default

    Cryptocurrency hedge fund Three Arrows Capital Ltd. will liquidate in a British Virgin Islands court after defaulting on $660 million worth of debt and the appointment of liquidators earlier this week, sources familiar with the proceedings said, making it among the first crypto investors to be subject to insolvency proceedings since the market began cratering last month.

  • June 29, 2022

    Amazon Accused Of Duping Investors In Class Action

    A pair of union funds have filed a proposed class action in Washington federal court accusing Amazon.com Inc. of deceiving investors by the anti-competitive misuse of confidential third-party seller data to benefit Amazon's private-label business.

  • June 29, 2022

    Del. Justices OK Toss Of El Pollo Loco Insider Trading Suit

    The Delaware Supreme Court has affirmed a Chancery Court's decision to toss a lawsuit over an alleged insider trading scheme at restaurant chain El Pollo Loco that purportedly netted $118 million, with one dissenting justice questioning the independence of a board committee created to investigate the claims.

  • June 29, 2022

    Giuliani Pal Gets 20 Months For Election Crimes, Fraud

    Former Rudy Giuliani associate Lev Parnas on Wednesday was sentenced to one year and eight months in prison following his conviction at trial of campaign finance violations and his admission to conspiring to defraud investors in his anti-fraud startup Fraud Guarantee.

  • June 29, 2022

    Switch Omitted Financial Info On $11B Merger, Investors Say

    A pair of stockholders claimed in separate lawsuits that data center operator Switch Inc. didn't disclose key financial information about a proposed $11 billion go-private deal with investment firms DigitalBridge and IFM Investors.

  • June 29, 2022

    Lowenstein Sandler Finds No Impropriety In FINRA Arbitration

    Lowenstein Sandler LLP's independent review of the Financial Industry Regulatory Authority's arbitration system has found no evidence of an improper agreement to remove certain arbitrators from cases, contradicting the findings of a Georgia state judge earlier this year.

  • June 29, 2022

    Bradley Adds M&A Specialist To Growing Dallas Office

    Bradley Arant Boult Cummings LLP has hired a new partner to its corporate and securities practice group for its Dallas office — which has tripled in size over the last three years.

  • July 01, 2022

    One Mystery Word Has Set Off A Race For Rural EB-5 Deals

    As the EB-5 community publicly searches for answers to major questions regarding the law's crucial regional center program, developers behind the scenes are scrambling to line up more rural projects as players speculate about the meaning of a single word buried in a law from earlier this year.

  • June 28, 2022

    Frustrated Court Says Lender Must Face Ponzi Scheme Suit

    A Texas federal judge has declined to toss a Ponzi scheme fraud suit brought against a lending company and the CEO of a real estate development company, noting that court has spent many resources on dismissal motions in the case thus far and that the defendants should not file any more dismissal motions.

  • June 28, 2022

    SEC Wins Default Judgment In Ex-Herbalife Exec's Absence

    A New York district court judge ordered a former executive at the Chinese subsidiary of California-based health supplement company Herbalife Ltd. to pay $550,092 in civil penalties after he was charged with plotting to bribe Chinese officials.

Expert Analysis

  • Navigating White Collar Attorney-Client Privilege Waivers

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    In light of increased reliance-on-counsel defenses and waivers of attorney-client privilege in corporate fraud cases, defense counsel should think broadly about how attorney-client communications demonstrate that their client acted in good faith, and without fraudulent intent, says Edward Imperatore at MoFo.

  • 8 Steps To Creating A Legal Ops Technology Road Map

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    Legal departments struggling to find and implement the right technologies for their operations should consider creating a road map that summarizes their approach to technology changes, provides clearly defined metrics for success, and serves as the single source of truth for stakeholders, says Melanie Shafer at SimpleLegal.

  • 2 Years Since Liu, Disgorgement Case Law Is Favoring SEC

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    In the two years since the U.S. Supreme Court’s decision in Liu v. the U.S. Securities and Exchange Commission, circuit courts have weighed in to answer the decision's open questions, and recent cases suggest that courts are unwilling to disrupt disgorgement orders, even where the awards would not survive Liu scrutiny, say attorneys at Ropes & Gray.

  • Latest SPAC Trends Point To Risk Of Negative Outcomes

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    Interest in initial public offerings of special purpose acquisition companies has reached its apex, and in the second half of this year we anticipate sustained levels of SPAC shareholder redemptions, increased liquidations for those unable to consummate an initial business combination and increased litigation risk, say attorneys at The Brattle Group.

  • An Early Step Toward Regulation Of Carbon Offset Market

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    A recent convening held by the Commodity Futures Trading Commission highlighted a need for greater transparency in voluntary carbon markets and for standardization of what constitutes a good or high-quality carbon offset, as well as the CFTC's potential role in regulating the market, say Levi McAllister and Pamela Tsang Wu at Morgan Lewis.

  • Parsing Chancery's Novel Director Liability Ruling In Garfield

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    The Delaware Chancery Court's cautious acceptance of a novel director liability theory in Allen v. Garfield, that a board's failure to act on a problem identified in a litigation demand letter may constitute a breach of fiduciary duty, shows that a kitchen sink approach to defending against fiduciary claims may not be optimal, say attorneys at Fried Frank.

  • The Importance Of Data And Data Analysis In Litigation

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    Understanding, analyzing and effectively presenting large data sets is an increasingly important skill in litigation as it allows plaintiffs to dramatically scale up the scope of cases and is often critical to defeating motions to dismiss and motions for summary judgment, says David Burnett at Motley Rice.

  • Senate Bill Could Be A Sea Change For Crypto Regulation

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    The recently introduced Responsible Financial Innovation Act, if passed, would transform the digital asset landscape by replacing the U.S. Securities and Exchange Commission as cryptocurrency's default regulator, and by shifting oversight away from the current regulatory framework and legal standard for the space, say attorneys at Brownstein Hyatt.

  • 2 New Defenses To Federal Shareholder Derivative Claims

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    Increasingly, plaintiffs are bringing Securities Exchange Act claims in derivative suits because they perceive these claims to have advantages compared to traditional fiduciary duty claims, but there are several reasons why plaintiffs are wrong and the flawed assumptions underlying these claims should be tested in court, say Brian Lutz and Michael Kahn at Gibson Dunn.

  • ​Boardroom Lessons From Shareholders' Diversity Lawsuits

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    Corporate efforts to promote diversity, equity and inclusion in the workplace are gaining momentum, and shareholder derivative lawsuits offer important lessons on how boards may protect themselves while fostering diverse workforces and safeguarding company goodwill, say attorneys at Covington.

  • Steps Companies Can Take To Mitigate Privilege Labeling Risk

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    Although Google prevailed on a recent privilege labeling sanctions motion, an important takeaway from the decision is that companies should assess their in-house procedures and employee training programs regarding privileged communications to mitigate risks of the potential appearance of bad faith privilege claims, say Gareth Evans at Redgrave and e-discovery attorney James Hertsch.

  • What Stablecoins Are And Aren't: Lessons For Crypto Industry

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    The fall of cryptocurrency Terra can serve as a painful lesson for the industry moving forward, with remedies found not through regulation, but by understanding the difference between algorithmically pegged coins and actual stablecoins, adopting better model risk management and insisting on robust transparency for stablecoin reserves, say attorneys at McGonigle.

  • What Litigation Funding Disclosure In Delaware May Look Like

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    A standing order issued by Delaware's chief federal judge requiring litigants to disclose whether their cases or defenses are being financed by third parties is unlikely to have onerous effects but may raise questions regarding potential conflicts of interest and access to justice, say Cayse Llorens and Matthew Oxman at LexShares.

  • Key Privacy Issues To Consider Before Launching An NFT

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    There are five steps brands follow when launching NFT collections, and each should involve additional considerations to ensure privacy and data protection, such as evaluating obligations under privacy law and being aware of tactics used by bad actors to gain access to digital wallets, say Daniel Goldberg and Zachary Lewis at Frankfurt Kurnit.

  • NY Decision Does Not Mean The End Of RMBS Litigation

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    Though a New York state appeals court's recent decision in U.S. Bank National v. DLJ Mortgage seemingly calls into question many residential mortgage-backed securities claims, the implications of this case are not necessarily so dire for investors, says Donald Hawthorne at Curtis.

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