Securities

  • June 28, 2022

    Former Ann Taylor Execs Beat Claims Of Duping Investors

    Former executives with the onetime owner of the Ann Taylor retail clothing brand defeated class claims alleging that they overstated the company's value before unveiling a roughly $1.3 billion impairment, with a New Jersey federal judge on Tuesday concluding that their "rosy" estimates did not amount to duping investors.

  • June 28, 2022

    Chancery Urged To Consider Firms' Bid To Lead Ionis Suit

    An Ionis Pharmaceuticals Inc. investor is urging a Delaware vice chancellor to consider his bid to consolidate two suits and have his counsel lead litigation filed over allegedly excessive company director pay, arguing that the request should be considered even though a settlement is already pending in one of the suits.

  • June 28, 2022

    Feds Ask For Vigilance On Russian Export Sanctions

    Bureaus of the U.S. Treasury Department and U.S. Commerce Department urged financial institutions Tuesday to monitor for efforts of Russia and Belarus to evade export sanctions related to the invasion of Ukraine, providing some pointers that could help keep certain equipment out of the hands of Russia's military. 

  • June 28, 2022

    Investor Sues Auto Insurer Over Customer Recruitment Costs

    Directors and executives of auto insurance startup Root Inc. have been hit with a derivative investor suit in Delaware federal court alleging they misled shareholders about how much money the company spends acquiring new customers and caused the company's stock price to plummet.

  • June 28, 2022

    Cabot Worker Says Merger Should've Triggered Stock Award

    An employee of the former Cabot Oil & Gas Corp. claimed in a lawsuit that the company's 2021 tie-up with Cimarex Energy Co. should have triggered "change-in-control" clauses in a pair of incentive agreements and awarded him 6,100 shares of company stock, according to a complaint filed in Pennsylvania state court.

  • June 28, 2022

    Ernst & Young Fined $100M For Cheating On CPA Exams

    The U.S. Securities and Exchange Commission hit Ernst & Young LLP with a $100 million fine on Tuesday after the accounting giant admitted that its audit professionals cheated on certified public accountant license exams, and that it also withheld evidence of the cheating from the agency.

  • June 28, 2022

    Feds Drop Haitian Bribe Case After Discovering New Evidence

    Federal prosecutors in Boston dropped a Foreign Corrupt Practices Act case against a former U.S. Army colonel and a lawyer just days before they were set to be tried for a second time, after the FBI unearthed text messages suggesting the two were innocent.

  • June 27, 2022

    Groupon To Pay $13.5M To End Investors' Hidden Losses Suit

    Groupon Inc. has agreed to pay $13.5 million to end a proposed securities class action that alleges it misled investors about its financial health before ending its sale of physical goods and announcing the departure of two top executives, the investor said in Illinois federal court on Monday.

  • June 27, 2022

    Gold Price-Fixing Deal Could Imperil Other Claims, Court Told

    An investor suing Scotiabank for alleged precious metals futures spoofing is objecting to a proposed $50 million settlement that would end a separate gold price-fixing case against the bank and other financial institutions, telling a New York federal judge that the deal's release of claims should be narrowed.

  • June 27, 2022

    Chancery Nixes Aerojet CEO's Bid For Neutral Counsel

    Aerojet Rocketdyne Holdings Inc.'s board chairman will preside over an upcoming meeting where shareholders will vote for directors, the Delaware Chancery Court ruled Monday, rejecting a bid from the chair's rival, the company's CEO, for neutral counsel to conduct the meeting.

  • June 27, 2022

    Stanford International Chairman Seeks Ax Of SEC Ponzi Suit

    The chairman of the Stanford International Bank has asked a federal judge in Dallas to toss the U.S. Securities and Exchange Commission's long-running litigation accusing him of using companies under his control to run a $7.2 billion Ponzi scheme.

  • June 27, 2022

    Twitter Stock Pumper Avoids Prison For Microcap Fraud

    A would-be Twitter-based stock sage on Monday was sentenced to six months of house arrest for what prosecutors say was a social media-based pump-and-dump scheme designed to induce his followers to drive up the share price of a worthless shell company.

  • June 27, 2022

    Balwani's Trial Features Tears, Tension And Holmes' Shadow

    On the heels of ex-Theranos CEO Elizabeth Holmes' high-profile trial and conviction, former Theranos executive Ramesh "Sunny" Balwani's criminal fraud trial has had its own memorable moments, from contentious exchanges between defense counsel and the judge to emotional witness testimony.

  • June 27, 2022

    Catching Up With Delaware's Chancery Court

    The Delaware Chancery Court drew a step closer last week to filling an empty seat on the bench, a debt maven fought for control of a cosmetics company, and new cases came in involving cryptocurrency, building products, business software, and of course, private equity. Here's your weekly roundup of news from Delaware's Chancery Court.

  • June 27, 2022

    Sustainability Group Sees 'Clear' US Progress On Climate Risk

    U.S. financial regulators have made big strides over the past year in moving to monitor and mitigate the risks that climate change poses to the financial system, but they're still way behind some of their peers internationally, according to a report released Monday by an influential sustainability group.

  • June 27, 2022

    DOL Seeks To Toss 'Downright Bizarre' ERISA Guidance Suit

    The U.S. Department of Labor urged a Florida federal court to toss an American Securities Association suit claiming agency guidance illegally imposed new obligations under federal benefits law, arguing that the guidelines weren't required to go through formal rulemaking procedures.

  • June 27, 2022

    Fed Bans Golden Pacific Bancorp Affiliate From Bank Industry

    The Federal Reserve Board of Governors has prohibited an individual from future participation in the banking industry after he allegedly lied in his application to acquire control of Golden Pacific Bancorp Inc., a former bank holding company in California.

  • June 27, 2022

    2nd Circuit Backs $100M Loan Default Ruling In UBS Suit

    The Second Circuit has sided with a lower court's ruling that energy holding company Greka Integrated Inc. must pay $100 million to UBS AG's London branch following Greka's failure to repay loans it owes to the bank.

  • June 27, 2022

    Car Rental Co. Sued Over Blocked Insurance Payments

    An investor in a company that allows car owners to rent out their vehicles for ride-sharing services wants to inspect the company's books and records in Delaware Chancery Court, to investigate whether it suppressed insurance claim payments through a claims adjuster founded by the rental company's CEO.

  • June 27, 2022

    Supreme Court Won't Review Vascepa Patent Case

    The U.S. Supreme Court won't review a Federal Circuit decision that shut down a challenge to a lower court's order invalidating six patents on Amarin's blockbuster heart drug Vascepa, handing a loss to a group made up largely of the company's shareholders.

  • June 27, 2022

    Grand Jury Probes Trump Platform's SPAC Merger

    Digital World Acquisition Corp., the special-purpose acquisition company planning to buy and take public former President Donald Trump's social media platform, said Monday a federal grand jury issued subpoenas to its board of directors that could derail the planned acquisition.

  • June 27, 2022

    Frontier Urges Spirit Investors To Approve $6.6B Merger

    Frontier Airlines Inc. published an open letter to Spirit Airlines investors Monday, urging them to approve the $6.6 billion merger between the two companies at a special shareholder meeting this week and reject the "opportunistic" bid from JetBlue for Spirit.

  • June 24, 2022

    Calif. Bank & Trust To Pay $14M To End Claims It Aided Scam

    California Bank & Trust has agreed to pay $14 million to end a putative class action accusing the bank of assisting a Ponzi scheme, the scam's victims said in a bid for preliminary approval of the settlement filed in California federal court Friday.

  • June 24, 2022

    Walgreens Inks $105M Deal To End Investor Suit Over Merger

    Pharmacy chain Walgreens and two of its former executives have agreed to pay $105 million to end investor claims the company touted overly rosy ​​financial projections as it sought shareholder approval of its plan to complete the acquisition of Swiss-based pharmacy chain operator Alliance Boots GmbH.

  • June 24, 2022

    RL Polk Investors Gain Partial Cert. In Buyback Suit

    Delaware's Chancery Court has certified a limited plaintiff class in a suit brought by former shareholders accusing the leaders of R.L. Polk & Co. Inc. of duping them into selling their shares ahead of a lucrative $1.4 billion merger, but the court denied certification to a proposed defendant class.

Expert Analysis

  • What 5th Circ.'s SEC Ruling Means For HHS Programs

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    The Fifth Circuit's recent decision in Jarkesy v. U.S. Securities and Exchange Commission calls into question various U.S. Department of Health and Human Services programs — especially those tethered to the commerce clause — and may cause many enforcement proceedings to come under legal scrutiny, says Robert Charrow at Greenberg Traurig.

  • Working With Forensic Accountants In Internal Investigations

    Excerpt from Practical Guidance
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    Elissa McClure at Holland & Knight and judicial law clerk Sydne Collier address identifying the need for forensic accountants and best practices for working with them throughout an internal investigation.

  • SEC Constitutionality Ruling May Embolden FTC Targets

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    The Fifth Circuit's recent Jarkesy v. U.S. Securities and Exchange Commission decision — that restrictions insulating administrative law judges from removal, among other policies dictating agency procedures, are unconstitutional — may also apply to the Federal Trade Commission, giving companies strong procedural arguments to disrupt enforcement proceedings against them, say attorneys at Kirkland.

  • How 2 High Court Cases Could Affect Gov't Admin Actions

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    Government losses in U.S. Securities and Exchange Commission v. Cochran and Axon v. Federal Trade Commission, pending at the U.S. Supreme Court, could drastically shorten the time federal courts take to consider constitutional challenges to administrative proceedings, with consequences for other federal and state agency processes, say attorneys at Paul Hastings.

  • Stablecoin Legal Risks To Consider In Light Of Terra Collapse

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    Following the stunning fall of cryptocurrency Terra, we are seeing a new focus on stablecoin from private plaintiffs filing novel securities lawsuits and from government entities, including forward momentum in Congress with respect to the Stablecoin Trust Act and ramped-up stablecoin rhetoric from financial regulators, say Perrie Weiner and David Sverdlov at Baker McKenzie.

  • Opinion

    Tech Industry Letter To Congress Must Guide Crypto Counsel

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    Fintech lawyers must heed the concerns a group of technologists recently expressed in an open letter to Congress — urging caution and calling out the significant risks of cryptocurrency — in order to protect clients, the global markets and themselves from financial harm, says cybersecurity consultant John Reed Stark.

  • Scope Of Russia's New Blocking Sanctions Is Unclear

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    Russia's recently introduced measures to block transactions with 31 energy companies may substantially extend the purview of its existing economic sanctions, but until the federation issues official guidance about how the measures apply to existing contracts, the practical consequences must be determined on a case-by-case basis, say attorneys at Morgan Lewis.

  • Practical Approaches To Managing An SEC Investigation

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    Recent comments from the U.S. Securities and Exchange Commission's enforcement director on defense lawyers' improper practices during investigations shouldn't discourage counsel from engaging in effective advocacy, but underscore pragmatic considerations for practitioners and firms alike, say Ronak Patel and Andrew Sidman at Bressler.

  • 9th Circ. Securities Fraud Ruling Bodes Well For Pharma Cos.

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    A recent Ninth Circuit decision affirming dismissal of a securities fraud complaint against Nektar Therapeutics shows that courts will not infer material falsity of initial clinical trial results simply because later clinical results do not support those findings, and should provide some comfort to pharmaceutical companies targeted by short-seller attacks, say Douglas Baumstein and Jason Vigna at Mintz.

  • Key Legal And Regulatory Trends In Oil And Gas Transactions

    Excerpt from Practical Guidance
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    Attorneys involved in oil and gas transactions must be aware of important legal and regulatory trends that have emerged recently, including issues surrounding hydraulic fracturing, climate change, pipeline tariffs and a resurgence of regulation under the Biden administration, say Justin Hoffman and Thomas Blackwell at Baker Botts.

  • What To Expect From CFPB's Entry Into Cryptocurrency Arena

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    As consumer cryptocurrency offerings become more prevalent, it's important to consider how the Consumer Financial Protection Bureau might regulate this area, including what kind of services it will focus on and what kind of authority it could draw on when pursuing enforcement actions, say attorneys at Goodwin.

  • How In-House Legal Leaders Can Drive Corporate Growth

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    Today, more executives are seeking legal leaders who are strategic, adaptable thinkers, making it essential that in-house counsel get out of their comfort zone of legal advice and take several steps to contribute toward revenue growth and raise their profile, says Tim Parilla at LinkSquares.

  • Attorneys Should Tread Carefully On Job Counteroffers

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    Promises of more compensation to keep attorneys from leaving their jobs have become commonplace in today's hot job market, but lawyers should weigh their options carefully as accepting a counteroffer can negatively affect their reputation, says Leeron Molloy at VOYlegal.

  • Series

    The Future Of Legal Ops: Time To Get Serious About Data

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    Most corporate legal departments collect surface-level data around their operations, such as costs and time to resolution, but legal leaders should explore more in-depth data gathering to assess how effective an attorney was, how efficiently legal work was performed, and more, says Andy Krebs at Intel.

  • SEC Reporting Guidance Poses Challenges For Crypto-Assets

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    The U.S. Securities and Exchange Commission's newly proposed reporting requirements for the crypto and digital asset industry raise custody questions that may deter investors, embolden creditors and invite costly litigation, say Gabriel Benincasa and Barbra Parlin at Holland & Knight.

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