Securities

  • June 25, 2020

    Texas AG's Securities Fraud Case Sent Back To His Home Turf

    Texas Attorney General Ken Paxton will get to return to his longtime home of Collin County to continue fighting against felony securities fraud charges, after a Harris County district judge agreed Thursday the case was wrongly transferred to his court.

  • June 25, 2020

    SEC Chief Asked Trump For Berman's Job Days Before Ouster

    The head of the SEC revealed to Congress on Thursday that he told the president he was interested in taking Manhattan U.S. Attorney Geoffrey Berman's job roughly a week before U.S. Attorney General William Barr abruptly announced Berman's departure.

  • June 25, 2020

    Ex-Woodbridge Sales Agents Want SEC's Ponzi Suit In Calif.

    Two former Woodbridge Group salespeople have told a Florida federal court that the U.S. Securities and Exchange Commission is trying "deliberately to cripple" them by bringing its suit over their alleged roles in Robert Shapiro's $1.2 billion Ponzi scheme far away from California, where key witnesses live.

  • June 25, 2020

    Daimler Must Give Judge More Info On $19M Emissions Deal

    A California federal judge is asking Daimler AG and its shareholders for more information on a $19 million settlement intended to end claims the company inflated its stock by using cheat devices to fool emissions tests before she will grant preliminary approval of the deal.

  • June 25, 2020

    Novartis Units Pay $346M Over US Bribery Claims

    Current and former subsidiaries of pharmaceutical giant Novartis AG have agreed to pay $345.9 million in penalties and profits over an alleged bribery scheme at hospitals in Greece and improper record-keeping in Vietnam and other countries, U.S. enforcement authorities announced Thursday.

  • June 25, 2020

    FDIC Board Approves Valid-When-Made Rule, Mirroring OCC

    The FDIC's board of directors voted 3-1 on Thursday to approve a final rule clarifying that loans originated by state-chartered banks remain valid throughout the lifetime of the loan, reflecting a similar rule finalized by the Office of the Comptroller of the Currency at the end of May.

  • June 25, 2020

    Telegram Agrees To Pay SEC $18.5M To End Offering Claims

    Encrypted messaging company Telegram Group Inc. has agreed to pay an $18.5 million civil penalty to end U.S. Securities and Exchange Commission allegations it conducted an unregistered digital asset securities offering, the federal regulator told a Manhattan judge Thursday.

  • June 24, 2020

    Wright Ducks Sanctions As $10B Bitcoin Suit Poised For Trial

    A Florida federal judge ruled Wednesday that she will not impose sanctions against self-styled Bitcoin inventor Craig Wright in a case over the ownership of potentially $10 billion of bitcoin and intellectual property, saying that concerns of forged evidence, witness credibility and Wright's intentions are best addressed by a jury.

  • June 24, 2020

    Ex-CFO Says Tenet Unit Fired Him For Whistleblowing

    The former chief financial officer of United Surgical Partners International sued his ex-employer in Texas federal court Wednesday, alleging the Tenet Healthcare Corp. subsidiary fired him after he raised concerns that the hospital operator was violating securities laws by not fully reporting its employee stock incentive plan to investors.

  • June 24, 2020

    Investors Fight Cannabis Co. Sundial's Bid To Nix IPO Suit

    A proposed class of investors in Canadian cannabis company Sundial Growers asked a New York federal judge on Tuesday not to toss their suit accusing the company of concealing issues of cannabis quality ahead of its $143 million initial public offering.

  • June 24, 2020

    AO Smith Beats Chinese 'Channel-Stuffing' Scheme Suit

    A Wisconsin federal judge tossed a pension fund's putative securities class action Wednesday, ruling that it failed to plead that water heater manufacturer A.O. Smith Corp. engaged in a "channel-stuffing" scheme by artificially inflating the growth of its Chinese business.

  • June 24, 2020

    SEC Examiners Say Private Funds Falling Short In Key Areas

    The U.S. Securities and Exchange Commission's examinations unit issued a risk alert urging private fund managers to address compliance "deficiencies" uncovered through its exams, saying that firms and advisers continue to fail in three departments — fee disclosures, conflicts of interest and ethics policies.

  • June 24, 2020

    Vereit To Pay SEC $8M Over American Realty Fraud Claims

    Vereit Inc. will pay the SEC $8 million to resolve the agency's claims of accounting fraud that sent the former chief financial officer of the real estate investment trust, formerly known as American Realty Capital Properties, to prison for 18 months.

  • June 24, 2020

    NY Looks To Push BitLicense Program At 5-Year Mark

    New York's financial services regulator plans to roll out a provisional licensing option for cryptocurrency startups and is adopting a streamlined process for cryptocurrency companies it oversees to offer new coins, initiatives that come as the state's cryptocurrency licensing regime marks its fifth anniversary.

  • June 24, 2020

    SEC Urges Cos. To Stay On Top Of COVID-19 Disclosures

    With the second quarter nearing its end, U.S. Securities and Exchange Commission officials are urging public companies to thoroughly update their disclosures so investors have a clear picture about corporations' financial health and whether they can survive pandemic-related disruptions.

  • June 24, 2020

    Wayfair Investor Sues For Records On $535M Transaction

    Online retailer Wayfair Inc. was hit with an investor lawsuit Tuesday in Delaware Chancery Court seeking company records to investigate potential wrongdoing related to the issuance of $535 million in notes at a "steep discount" to investment firms with ties to the company's controlling shareholders.

  • June 24, 2020

    Comscore Investor's Strife Claims Can't Save Stock-Drop Suit

    A Manhattan federal Judge on Wednesday tossed a proposed securities class action against analytics company Comscore Inc. and two of its executives that alleged they hurt shareholders by obscuring internal strife at the company.

  • June 24, 2020

    Morgan Stanley Salesman Appeals FINRA Arbitration Order

    A Morgan Stanley salesman has urged the Eleventh Circuit to rethink a lower court's decision to send his suit against a hotel investor and the broker-dealer to arbitration before the Financial Industry Regulatory Authority, arguing that there is no contract to arbitrate.

  • June 24, 2020

    Colo. Dispensary Avoids Receivership After Repaying Investor

    A Colorado state judge has denied a bid to put a Denver dispensary in receivership from an investor who claimed that he was never repaid his capital, saying the dispensary's full repayment now makes the fight moot.

  • June 24, 2020

    Natural Foods Co. Execs Want To Ax Federal Derivative Suit

    Executives of natural foods company Hain Celestial asked a New York federal court Tuesday to end shareholder litigation alleging securities fraud, contending that they had already fought off similar allegations and shouldn't have to go through those motions again.

  • June 24, 2020

    Facebook Tries To Ice Investor's Bid To See FTC Deal Records

    An attorney for Facebook warned a Delaware vice chancellor Wednesday that corporate attorney-client privilege could suffer broadly if a pension fund investor gets access to withheld board documents and emails related to founder Mark Zuckerberg's avoidance of liability in a $5 billion privacy breach settlement with the Federal Trade Commission.

  • June 24, 2020

    Investors Get Partial Class Cert. In Pot Crypto Suit

    A California federal judge certified an investor class in a suit alleging a cannabis cryptocurrency startup violated securities laws with its $70 million initial coin offering, granting their motion in part Wednesday on federal claims but denying their state law claims.

  • June 24, 2020

    Recently Sentenced Forex Fraudster Owes CFTC $3.8M

    A South Carolina man has been ordered to pay $3.8 million in fines and restitution to the U.S. Commodity Futures Trading Commission, less than a week after he was sentenced to two years in prison for running a fraudulent foreign exchange investment scheme.

  • June 24, 2020

    SocGen Unit Settles Blue Sheet Violation Claims For $3.1M

    A Societe Generale subsidiary agreed to pay more than $3.1 million to two regulators to resolve claims that it violated recordkeeping laws and submitted inaccurate "blue sheet" trading data for years, the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority said Wednesday.

  • June 24, 2020

    SEC Suit Against Blockchain Duo Paused Amid Criminal Case

    A New Jersey federal judge hit the brakes Wednesday on a U.S. Securities and Exchange Commission suit claiming two people with a blockchain technology company duped investors while raising $30 million in cash and cryptocurrency, saying the matter should be paused until the end of a parallel criminal case.

Expert Analysis

  • Justices' Cert Snub Perpetuates Commodities Act Uncertainty

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    The U.S. Supreme Court's decision Monday not to review Atlantic Trading v. BP means that we will have to wait for another matter to address the Second Circuit's interpretation of tests designed to determine when a Commodity Exchange Act trade occurred domestically, says Katherine Cooper at Murphy & McGonigle.

  • Opinion

    Litigation Finance Investments Are Not Risk-Free Loans

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    The Ninth Circuit's certification order last week in Fast Trak v. Sax presents an important opportunity for the New York high court to affirm the consensus among courts — litigation finance transactions are not loans subject to usury laws, say Wendie Childress and William Marra at Validity Finance.

  • Pre-IPO Companies Should Upgrade Their D&O Coverage

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    Directors and officers of private companies — especially startups preparing for their initial public offering — should consider enhancing their D&O insurance coverage to confront the new regulatory and compliance risks they face, say attorneys at Freshfields and Burns Bowen.

  • Opinion

    How White Privilege Helped Me Succeed In BigLaw

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    The white, male power structure has eased the path for lawyers like me for far too long, and we should now be responsible for dismantling this systemic bias within the legal industry, says Scott McLaughlin at Eversheds Sutherland.

  • March Trading Halts May Complicate Securities Class Actions

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    Trading restrictions used to mitigate COVID-19 market volatility in March may have had the unintended consequence of hampering price discovery, which could in turn impede market efficiency analysis in securities class actions, say consultants at Cornerstone Research.

  • The COVID-19 Arguments Cos. Are Making In M&A Litigation

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    Five recently filed cases in Delaware Chancery Court provide some initial context for understanding how buyers and sellers are responding to the COVID-19 crisis's impact on previously agreed-upon strategic transactions, say attorneys at WilmerHale.

  • Opinion

    Congress Must Create More Private Rights Of Action

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    In light of the Trump administration's efforts to limit the enforcement of regulations during the pandemic and beyond, and the U.S. Supreme Court's severe limitations on private rights of action, Congress must take swift action, says attorney Todd Phillips.

  • Keys To A Thriving Biz Development Culture At Your Law Firm

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    As law firms continue to experience the economic impact of the COVID-19 crisis, it is more important than ever that they reduce reliance on just a few rainmakers and foster a culture that makes business development a way of life for everyone — from junior associates to senior partners, says Elise Holtzman at The Lawyer's Edge.

  • TALF Update Likely Won't Affect CLO Market

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    Following the Federal Reserve's recent revised term sheet for the Term Asset-Backed Securities Loan Facility program, there remain several points in need of clarification or revision that might otherwise limit the intended utilization of TALF by active participants in the collateralized loan obligation market, say attorneys at Allen & Overy.

  • Asset Management M&A In The COVID-19 Era: Part 2

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    Attorneys at Mayer Brown examine how the COVID-19 crisis may require unique regulatory compliance and essential personnel retention considerations for asset management industry mergers and acquisitions.

  • How Video Mediation Can Help Us Serve Clients Better

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    Mediation in recent years has largely devolved into a kind of arbitration without due process — where a mediator reads briefs, decides where the case should settle, and drives parties toward that single-minded result — but online mediation can be steered in a different direction, says mediator Jeff Kichaven.

  • Tips For Broker-Dealers To Avoid Scams During COVID-19

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    The higher risk of online scams due to the remote work arrangements made necessary by the COVID-19 pandemic should prompt brokerage firms to take stock of system compliance and carefully consider the Financial Industry Regulatory Authority's recent guidance to avoid enforcement actions, say Tim Foley and Kate Hanniford at Alston & Bird.

  • Mental Health Efforts Will Support Diversity In Legal Industry

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    The stigma of discussing mental health struggles during these tough times is especially profound for attorneys of racial and ethnic minorities, but law firms and in-house departments can change the narrative, says Patricia Silva at Lathrop.

  • Opinion

    The Remote Jury Trial Is A Bad Idea

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    The notion of holding jury trials via videoconference has been floated as a near certainty, with some jurisdictions already engaging in pilot programs, but the fundamental genius of the jury trial can only exist in a live, in-person setting, say Paula Hinton and Tom Melsheimer at Winston & Strawn.

  • New Ruling May Aid Syndicated Loan Market Amid Pandemic

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    A New York federal court’s recent holding that syndicated loans are not securities in Kirschner v. J.P. Morgan Chase may head off unnecessary securities litigation concerning the performance of syndicated loans impacted by the COVID-19 crisis at a time when borrowers have a heightened need for liquidity, say attorneys at Cleary.

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