Securities

  • June 24, 2022

    Bank Groups Worry ESG Proposals Are 'Anything But Neutral'

    A coalition of national and state banker groups is pushing back on efforts by Biden administration financial regulators to develop climate risk guidance and other ESG-minded rules, warning of potentially "acute, widespread and anything but neutral" effects, and consequences for banks' ability to serve customers.

  • June 24, 2022

    Stronger Rules Needed After 'Meme Stock' Frenzy, Dems Say

    House Democrats on Friday called for tighter regulations around how broker-dealers manage liquidity, saying that shortfalls in this area contributed to last year's "meme stock" turmoil.

  • June 24, 2022

    Delaware Chancery Orders UpHealth To Delay Annual Meeting

    Delaware's Court of Chancery on Friday ordered digital health company UpHealth Inc. to postpone its June 28 annual stockholder meeting, finding that the board's recent changes to quorum requirements were made with intent to interfere with a majority of stockholders' rights.

  • June 24, 2022

    'Trust Your Eyes,' Feds Urge As Balwani Charges Go To Jury

    A California federal jury began deliberations Friday on the criminal fraud case against ex-Theranos executive Ramesh "Sunny" Balwani after federal prosecutors made their final argument urging jurors to "trust your eyes" and find Balwani deceived investors and influenced the company's younger and less experienced CEO, Elizabeth Holmes.

  • June 24, 2022

    EB-5 Venture Founder Ordered To Pay $2.4M To His Company

    The Delaware Chancery Court on Friday ordered the founder of a "visas-for-investment" venture to pay nearly $2.4 million to his company, saying he breached his duties to act in the company's best interest when he made improper money transfers.

  • June 24, 2022

    Cornerstone Shareholder Seeks Docs For CD&R's $5.8B Buy

    A shareholder of North Carolina-based exterior building products manufacturer Cornerstone Building Brands Inc. sued the company for records about its planned $5.8 billion merger with Clayton Dubilier & Rice LLC, asserting that the private equity firm may have manipulated the company into accepting an unfair deal.

  • June 24, 2022

    Electric Car Co. CEO's Stock 'Mega Grant' Challenged In Del.

    A Mullen Automotive Inc. stockholder has launched a proposed Delaware Chancery Court class challenge to a potential multi-step "mega-grant" of the auto and electric car company's equity to its chairman, president and CEO.

  • June 24, 2022

    3rd Judge On NYC Vax Case Refuses To Step Down

    The third federal judge tapped to oversee a challenge to New York City's vaccine mandate for city workers has issued a statement saying she no longer owns stock in Pfizer after the plaintiffs pressed her on her earlier decision not to recuse herself. 

  • June 24, 2022

    Snell & Wilmer Adds Rutan & Tucker Partner In Calif.

    Snell & Wilmer LLP has added a corporate and securities partner from Rutan & Tucker LLP to its Orange County office, the firm has announced.

  • June 24, 2022

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

    This week in London has seen promoter Boxxer accused of punching below the belt in a defamation case from competitor Probellum, pharmaceutical company Amgen back in the ring in a patent claim from rival Pfizer, and a former Cambridge Analytica boss on the ropes in a claim from an SPV set up by the consultancy firm's former directors. Here, Law360 looks at these and other new claims in the U.K.

  • June 24, 2022

    Brits Say US OneCoin Money Laundering Case Belongs In UK

    Two British men accused of laundering $105 million from the global OneCoin cryptocurrency scam argued on Friday that their case belongs in the U.K. in the last day of their battle to avoid extradition to the U.S.

  • June 24, 2022

    Supreme Court Overturns Roe v. Wade

    The U.S. Supreme Court on Friday upheld a Mississippi abortion ban and overturned the constitutional abortion right established nearly 50 years ago in Roe v. Wade, setting the stage for a widespread rollback of abortion rights in many statehouses around the country.

  • June 23, 2022

    Balwani Rips Feds' 'Incomplete' Case As Trial Nears End

    Ex-Theranos executive Ramesh "Sunny" Balwani's attorney concluded the third day of his closing arguments in Balwani's criminal fraud trial Thursday, arguing that the government's "incomplete" case selectively focused on former employees and investors who portrayed themselves as heroes or victims to the "radioactive" Theranos, even though they were once its cheerleaders.

  • June 23, 2022

    Ex-UBS Adviser Gets 6 Years For Stealing $6M From Clients

    A Florida federal judge sentenced a former UBS Financial Services adviser to 6½ years behind bars for stealing $6 million from client accounts under his management, which he spent on extramarital affairs, the U.S. Department of Justice said Thursday.

  • June 23, 2022

    NY Financial Adviser Gets 6 Years For $8M Client Fraud

    A former investment adviser who operated in New York and New Mexico on Thursday was sentenced to six years in prison, following his admission of defrauding vulnerable investors out of more than $8 million and pocketing their funds.

  • June 23, 2022

    Chancery Deal Could Free $360M For Yahoo Sale Stockholders

    A Delaware Chancery Court litigation reserve compromise has potentially freed up another $360.4 million for former Yahoo Inc. stockholders still waiting for the balance of their cashout following Yahoo's acquisition by Verizon Inc. in 2016.

  • June 23, 2022

    Crypto Platform Exits Venezuela Over US Sanctions Risks

    Cryptocurrency trading platform Uphold said Thursday it's pulling out of Venezuela over concerns about complying with U.S. sanctions.

  • June 23, 2022

    Big Banks Get Good Marks In Fed's Latest Stress Tests

    The Federal Reserve said Thursday that the nation's biggest banks have passed their latest round of stress tests and could keep credit flowing to the U.S. economy even amid a severe recession.

  • June 23, 2022

    Trecora Investor Sues In Del. To Probe $247M Balmoral Merger

    A stockholder of Trecora Resources has sued in Delaware for corporate records, seeking to investigate private equity firm Balmoral Funds LLC's plans to acquire the Texas-based petrochemical products manufacturer in a $247 million tender offer set to expire on Friday at midnight.

  • June 23, 2022

    Ex-Crypto Exec Denied Wire Fraud Retrial

    A New York federal judge denied a suspended securities broker's request Thursday for an acquittal or retrial after a jury found him guilty of wire fraud in a scam involving a failed digital currency launch, ruling the broker "understates" the evidence against him.

  • June 23, 2022

    2nd Circ. Says Argentina Bond Recovery Claims Are Too Late

    The Second Circuit has affirmed a lower court's decision finding Bainbridge Fund Ltd.'s suit seeking to recover on bonds the Republic of Argentina defaulted on in 2011 is barred by the statute of limitations, with the panel saying the country is not considered a "person" under New York bond law.

  • June 23, 2022

    SEC Upholds FINRA Decision To Bar Broker For Alleged Fraud

    The U.S. Securities and Exchange Commission on Thursday upheld a decision from the Financial Industry Regulatory Authority to bar a former registered representative after previously upholding fraud claims against him.

  • June 23, 2022

    Traders' 4th Bite At 'Meme Stock' Apple Still Rotten, Apex Says

    "Meme stock" investors have once again failed to show that broker-dealer Apex Clearing Corp. caused their trading losses and failed in its duty to them, the firm told a Florida federal court in a bid to dismiss the traders' fourth complaint.

  • June 23, 2022

    Sonus Investors Urge Judge To Finally Rule On 2019 Motion

    Investors suing Sonus Networks Inc. and its executives for allegedly stretching financial statements to overstate revenue forecasts pressed a Massachusetts federal judge for the third time on Thursday to rule on a motion to dismiss that was filed in August 2019 and argued in February 2020.

  • June 23, 2022

    Research Org Mismanaged $3.5B Retirement Plans, Suit Says

    A not-for-profit research organization allowed record-keepers for its $3.5 billion retirement plans to charge excessively high administrative fees and cost employees millions of dollars in benefits, according to a proposed class action filed by six workers in Massachusetts federal court.

Expert Analysis

  • Lessons From Recent FINRA Actions Against Funding Portals

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    Two recent Financial Industry Regulatory Authority enforcement actions provide reminders for funding portals on compliance responsibilities, like keeping track of finances and avoiding engaging in broker activities, say Peter LaVigne and Christopher Grobbel at Goodwin.

  • Calif. Order May Change Crypto Activity Registration

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    While many digital asset platforms have been exempt from registration in California under the state's Money Transmission Act, a recent order from the governor calls for syncing state crypto regulation with federal rules and could significantly change compliance for financial technology providers with services in California, say attorneys at Barnes & Thornburg.

  • First Impressions From SEC's Fund Disclosure Proposals

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    Surprising elements in the U.S. Securities and Exchange Commission’s recent proposals for registered investment companies include the breadth of terms newly subject to the so-called names rule, and the prescriptiveness of fund disclosures regarding environmental, social and governance investing, say Jessica Burt and Jennifer Hillman at Stradley Ronon.

  • What A Crypto Exchange Bankruptcy Filing Could Look Like

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    There is growing concern regarding how customers of cryptocurrency exchanges will be treated if an exchange commences bankruptcy proceedings as crypto prices fall, which means customers should take proactive measures to protect their assets, say Darren Azman and Gregg Steinman at McDermott.

  • Opinion

    ABA Isn't Giving Up On Diversity Efforts By Ending CLE Rule

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    While some view the American Bar Association’s elimination of continuing legal education diversity requirements as capitulating to a Florida Supreme Court decision against the mandate, it was a strategic decision to serve Florida members while improving diversity, equity and inclusion efforts in other ways, says Tiffani Lee at Holland & Knight.

  • Lateral Candidate Screening Steps To Prevent Bad Behavior

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    Bullying and harassment are among the root causes of stress, anxiety and substance abuse in the legal profession, so law firms should take four actions to effectively screen lateral candidates and ensure they are not recruiting individuals who could jeopardize the well-being of their people, says Michael Ellenhorn at Decipher.

  • How Russia Sanctions Are Affecting Compliance

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    The wide-ranging sanctions and export controls that the U.S. and its partners have imposed on Russia in recent months pose complex compliance challenges for commercial operations, investments and financial transactions, even when there is not a direct or obvious nexus with Russia, say Anthony Rapa and Matthew Thomas at Blank Rome.

  • The Varying Federal, State And Local Attitudes On Crypto

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    While recent U.S. Securities and Exchange Commission developments show escalating intervention in the burgeoning digital asset industry, other government actors and cities are taking a more balanced approach to the growth of cryptocurrency operations, say Patrick Daugherty and Louis Lehot at Foley & Lardner.

  • Issues To Watch In Decentralized Autonomous Org Case

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    A class action filed earlier this month by users of decentralized finance platform bZx highlights novel questions of liability and duty within decentralized autonomous organizations that stakeholders should consider, say Andrew Balthazor and Ashley Shively at Holland & Knight.

  • A Look At The Legal Profession Since Murder Of George Floyd

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    Little has changed for Black attorneys since law firms promised to combat discrimination within the profession following George Floyd's murder, but on this second anniversary of his death, law firms can recommit by adopting specific strategies that set their Black lawyers up for success, say Lisa Davis and Khasim Lockhart at Frankfurt Kurnit.

  • Opinion

    NY Ruling Correctly Deems Legal Finance Docs Irrelevant

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    A New York appeals court's recent decision in Worldview Entertainment v. Woodrow joins a growing trend of decisions denying discovery of litigation funding documents, highlighting that commercial legal finance should be treated just like any other financing in commercial litigation, says Andrew Cohen at Burford Capital.

  • What Sanctions Mean For Funds' Subscription Credit Facilities

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    Given the unprecedented wave of sanctions against wealthy Russian oligarchs, lenders should be aware of the complex questions regarding funds' subscription credit facilities that can arise when an investor is sanctioned, say attorneys at Haynes and Boone.

  • Crypto Cos. Should Prep For More IRS John Doe Summonses

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    In anticipation of new reporting requirements that will go into effect in 2024, cryptocurrency exchanges and custodians should inform themselves on the John Doe summons, a unique mechanism that allows the IRS to obtain expansive information about cryptocurrency transactions, say Shivani Poddar and Andrew Heighington at Herrick Feinstein.

  • Partial Student Loan Forgiveness: What Are The Implications?

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    As President Joe Biden makes a decision on student loan forgiveness in the next few weeks — he stated support for $10,000 in relief on the campaign trail — there are legal and asset-backed security consequences that should be taken into consideration, says Lyle Solomon at Oak View Law Group.

  • Opinion

    The SEC's Climate Disclosure Plan Fails Individual Investors

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    The U.S. Securities and Exchange Commission’s historic proposal to create a new climate disclosure regime for U.S. companies is good for business, but it doesn’t line up with the commission’s mission to protect individual investors, and the SEC should reconsider its approach before it is challenged in court, says Lawrence Cunningham at GW Law.

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