Securities

  • June 08, 2021

    Defendants In SEC's Landmark Liu Case Must Repay $21M

    A California federal court has granted a request by the U.S. Securities and Exchange Commission to order the core defendants of an alleged EB-5 visa fraud case to pay back close to $21 million, rejecting the defendants' argument that the agency showed they had no net profit.

  • June 08, 2021

    How The Manhattan DA Hopefuls Stack Up On Financial Crime

    Criminal justice reform has been a key battleground in the race to replace outgoing Manhattan District Attorney Cyrus Vance Jr., but many in the crowded Democratic field are also vowing a more robust approach to combating financial crime, placing greater emphasis on offenses such as wage theft and eying changes to the office structure itself.

  • June 08, 2021

    Del. Facebook Stockholder Suits Edge Toward Consolidation

    Delaware's Chancery Court could consider by mid-September leadership and consolidation of Facebook stockholder class complaints targeting the social media company's Cambridge Analytica data harvesting scandal and founder Mark Zuckerberg's avoidance of liability in a $5 billion government sanction, a vice chancellor said Tuesday.

  • June 08, 2021

    Ontario Regulator Targets KuCoin In Crypto Crackdown

    Ontario's securities regulator has accused cryptocurrency exchange KuCoin of selling securities without the proper registration, the agency's second such action in a compliance crackdown on cryptocurrency companies.

  • June 08, 2021

    Ch. 7 Trustee Tries To Bar OneJet Founders' $10M Claim

    An investment company owned by the family that ran the now-defunct OneJet Inc. into bankruptcy shouldn't get to make a claim for $10 million it allegedly "loaned" the struggling airline, the Chapter 7 trustee overseeing the case said in an adversary complaint.

  • June 08, 2021

    Viridescent Raises More Than $125M For Cannabis Loans

    An affiliate of private equity shop Viridescent Capital Partners has raised more than $125 million for origination of loans to cannabis companies and the firm has also launched a new mortgage real estate investment trust that will handle such origination, the firm announced Tuesday.

  • June 08, 2021

    Texas Businessmen Can't End $13M Investor Fraud Suit

    The full Dallas appellate court won't reconsider a panel ruling that a group of Texas businessmen must face a suit accusing them of using a shell company to defraud investors out of more than $13 million.

  • June 08, 2021

    BNY Mellon Can't Dodge Wealth Management Conflicts Suit

    The Bank of New York Mellon has lost its bid to toss a proposed class action accusing it of funneling money from high-net-worth clients into underperforming investments it owned or benefited from, with a Pennsylvania federal judge dismissing some claims without prejudice.

  • June 08, 2021

    Ex-NYSE Broker Near Plea Deal In Alleged $35M Crypto Scam

    A former New York Stock Exchange floor broker accused by federal prosecutors of raising $35 million via a bogus cryptocurrency trading desk is likely to enter into an agreement to plead guilty, lawyers told a Manhattan federal judge Tuesday.

  • June 08, 2021

    2 Firms Seek $3.75M For $17.5M Nutraceutical Suit Deal

    Bernstein Litowitz Berger & Grossmann and Kessler Topaz Meltzer & Check are seeking a $3.75 million fee award for brokering a proposed $17.5 million deal to end a Delaware Chancery Court suit over Nutraceutical's $446 million sale to a private equity firm in 2017.

  • June 08, 2021

    Albertsons Must Face Suit Over Unpaid $125M Merger Earnout

    Former stockholders of home-delivered meal kit venture Plated have won the go-ahead to pursue one surviving count in a Delaware Chancery Court suit accusing supermarket giant Albertsons Cos. Inc. of intentionally undermining a $125 million post-merger earnout payment right.

  • June 08, 2021

    Rising Star: Lieff Cabraser's Katherine Lubin Benson

    Katherine Lubin Benson of Lieff Cabraser Heimann & Bernstein LLP has established herself as a top-tier plaintiff-side securities and antitrust attorney who recently helped shareholders land a multi-million dollar settlement with Wells Fargo, earning her a spot among the securities law practitioners under age 40 honored by Law360 as Rising Stars.

  • June 07, 2021

    JPML Won't Combine NY, Calif. Allianz Actions

    The Judicial Panel on Multidistrict Litigation has refused to centralize litigation against Allianz Global Investors over its alleged risky bets in New York federal court, finding that the parties had yet to consider "informal cooperation" and that consolidation should only be a last resort.

  • June 07, 2021

    SEC Chair Aims To Seal 'Cracks' In Exec Insider Trading Rules

    The U.S. Securities and Exchange Commission is working to overhaul the rule that shields corporate executives from insider trading accusations when they buy or sell their company's stock, the regulator's chairman said Monday.

  • June 07, 2021

    T-Mobile Investors Challenge $26B Sprint Merger In Del.

    A T-Mobile Inc. investor has opened a direct and derivative suit against the company's board, officers, Deutsche Telekom AG and SoftBank Group Corp., citing self-dealing schemes and a failure to get a better deal for T-Mobile in its $26 billion merger with Sprint Corp. last year.

  • June 07, 2021

    Weil Overdid Merger Docs' Redactions, Rite Aid Investors Say

    Weil Gotshal & Manges LLP excessively redacted large swaths of its communications with Walgreens executives when turning over documents to Rite Aid investors suing over the companies' failed merger, an attorney for the investors told a Pennsylvania federal magistrate Monday.

  • June 07, 2021

    CytoDyn Brass Hyped COVID Drug, Dumped Shares, Suit Says

    Biotech company CytoDyn Inc. executives have been hit with a derivative suit in a Washington federal court, accusing the company of inflating its stock price by overhyping a purported COVID-19 treatment while executives dumped millions of shares.

  • June 07, 2021

    3rd Circ. Won't Revisit Wilmington Fraud Conviction Reversal

    The Third Circuit's reversal of fraud convictions for four former Wilmington Trust Corp. executives will stand after judges denied the government's request for a rehearing Monday, cementing a first-impression decision that set a high bar for prosecutors to prove a statement is false.

  • June 07, 2021

    Schumer Suggests Voting Rights Attys For 2nd Circ., SDNY

    Senate Majority Leader Chuck Schumer, D-N.Y., said Monday that he had recommended two prominent voting rights advocates, including a Fried Frank alum, for judgeships in the Second Circuit and the Southern District of New York.

  • June 07, 2021

    Clinical Trials Manager Settles SEC Insider Trading Suit

    A former Neuralstem Inc. clinical trials manager tipped her partner to bad company news, allowing him to avoid over $103,000 of investment losses, the U.S. Securities and Exchange Commission said Monday, announcing that the couple has agreed to pay over $325,000 in penalties.

  • June 07, 2021

    Doormaker Settles Investors' Stock-Drop Claims For $40M

    A doormaker swamped with antitrust litigation has reached a nearly $40 million settlement with investors who claim the company manipulated its stock price while incurring millions in liability from a rival's lawsuit.

  • June 07, 2021

    FisherBroyles Snags NY Tax Partner From Kelley Drye

    Virtual law firm FisherBroyles LLP continued its growth in New York, adding an ex-Kelley Drye tax partner with experience working with companies on a variety of international and domestic matters, the firm announced.

  • June 07, 2021

    Judge OKs $3.2M Deal For College Application Co. Investors

    A New Jersey federal judge has given her preliminary approval for a $3.15 million settlement to resolve investors' claims accusing a Chinese education company of hiding the fact that it was ghostwriting college applications for its clients.

  • June 07, 2021

    Bilzin Sumberg Adds Corporate Securities Trio In Miami

    Miami-based Bilzin Sumberg Baena Price & Axelrod LLP has expanded its corporate and securities and finance practices with a trio of attorneys, including a former Stearns Weaver Miller Weissler Alhadeff & Sitterson PA partner with over two decades of experience, the firm announced.

  • June 07, 2021

    Biotech Insider Gets 6 Mos. For Trading On Deal Talks

    A former biotech executive who admitted to trading stock based on insider knowledge about a sale of Dimension Therapeutics Inc. will serve six months in prison and another six under house arrest, a Massachusetts federal judge said Monday.

Expert Analysis

  • Opinion

    Investor Attempts To Hold Cos. Accountable Are Working

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    Aggressive investor demands for progress on important social issues are being met by direct responses from both companies and regulators, demonstrating shareholders' significant power to fix a broken corporate culture, says Rebecca Boon at Bernstein Litowitz.

  • CFTC Enforcement Predictions After Biden's First 100 Days

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    Attorneys at Sullivan & Cromwell highlight key enforcement topics the Commodity Futures Trading Commission may prioritize going forward and areas potentially ripe for policy change as the Biden administration passes its 100-day milestone.

  • Lessons In Fiduciary Duty From Employee Stock Plan Ruling

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    The Southern District of New York's recent Wilmington Trust v. Stout Risius opinion offers a cautionary tale on how an employee stock ownership plan trustee's failure to perform fiduciary duties can ignite a whole new level of litigation concerns, including state law claims not preempted by the Employee Retirement Income Security Act, say attorneys at Chamberlain Hrdlicka.

  • 5 Steps For Law Firms Rethinking Flexible Work Post-COVID

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    A flexible work environment will be key to recruiting and retention efforts post-pandemic, so law firms must develop comprehensive policies that solidify expectations and boundaries on accommodations such as flextime, remote work and reduced hours, says Manar Morales at the Diversity & Flexibility Alliance.

  • Assessing SPAC Risk After SEC Pumps Brakes On Market

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    The current lull in special purpose acquisition company activity following the U.S. Securities and Exchange Commission's recent risk advisories offers SPAC parties an opportunity to ramp up due diligence on targets and to evaluate prior accounting of warrants to ensure regulatory compliance, say Julie Copeland and Ellen Graper at StoneTurn.

  • Virus-Related Chancery Rulings Show High Bar For M&A Exits

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    Two recent Delaware Chancery Court decisions concerning attempts to cancel acquisitions amid COVID-19 show the importance of deal language in the pandemic era, particularly where material adverse effect and ordinary course covenants are concerned, say attorneys at Fried Frank.

  • Judge's Rebuke Of Mass. AG Has Lessons For All Attorneys

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    A Massachusetts federal judge’s recent rebuke of the state Attorney General’s Office for refusing to respond to discovery requests in Alliance for Automotive Innovation v. Healey highlights six important considerations for attorneys who want to avoid the dreaded benchslap, say Alison Eggers and Dallin Wilson at Seyfarth.  

  • Font Considerations To Give Your Legal Briefs An Edge

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    Following the D.C. Circuit’s recent notice discouraging use of the font Garamond in legal briefs, Jason Steed at Kilpatrick looks at typeface requirements and preferences in appellate courts across the country, and how practitioners can score a few extra brief-writing points with typography.

  • Make Profitability Management Part Of Your Law Firm Culture

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    As the legal industry continues to change in the post-pandemic world, law firms should adapt to client demands by constantly measuring and managing the profitability of their services, says Joseph Altonji at LawVision.

  • Outsourcing Proxy Voting Is Still A Concern After SEC Rule

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    Although robo-voting has modestly declined since the U.S. Securities and Exchange Commission finalized its proxy voting rule last summer, the SEC should ensure asset managers don’t wholly outsource their voting responsibilities to proxy advisers, and should consider disabling the practice outright, says Tim Doyle at Guidepost Strategies.

  • How D&O Coverage Fits Into Diversity Claim Mitigation

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    As companies face a shift in the directors and officers insurance market following a spate of recent shareholder suits over lack of diversity in corporate leadership, executive teams should review D&O policy coverage while implementing diversity initiatives that will effect meaningful, long-term change, say Natasha Romagnoli and Hannah Ahn at Blank Rome.

  • Eaton Vance Fund Ruling Shows Perils Of Defensive Bylaws

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    In light of a Massachusetts court's recent ruling in Eaton Vance Senior Income Trust v. Saba Capital Master Fund, reaffirming fund shareholders' voting rights, trustees and advisers should proceed cautiously when implementing bylaws that make it harder for shareholders to exercise those rights, says Aaron Morris at Barr Law.

  • 4 Trends In Discoverability Of Litigation Funding Documents

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    Recent rulings shed light on how courts and international arbitration tribunals decide if litigation funding materials are discoverable and reaffirm best practices that attorneys should follow when communicating with funders, say Justin Maleson at Longford Capital and Michele Slachetka and Christian Plummer at Jenner & Block.

  • W.Va. Consumer Law Changes Offer Help For Finance Cos.

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    New amendments to the West Virginia Consumer Credit and Protection Act will help businesses in the state, particularly in the financial services industry, by better defining the process for presuit notice and opportunity to cure, and by making it easier to recover attorney fees, say Andrew Narod and Jared Searls at Bradley Arant.

  • Opinion

    SEC Should Drop Litigation Over Ripple's XRP Token

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    The U.S. Securities and Exchange Commission should settle or withdraw its allegations that Ripple Labs' XRP is an unregistered security, and focus on creating new rules for securities registration that account for the unique dynamics of digital assets, says J.W. Verret at George Mason University.

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