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Securities

  • June 19, 2019

    Feds Say HSBC Holding Out On Key Docs In FIRREA Case

    A Brooklyn federal prosecutor asked a judge on Tuesday to compel HSBC to comply with a year-old subpoena in a civil fraud case against a former Deutsche Bank trader over the financial crisis, saying the government needs the files to prove its case under the Financial Institutions Reform, Recovery, and Enforcement Act.

  • June 19, 2019

    Nikko Can't Escape Suit Over $50M Loss To Stock Plan

    Nikko Asset Management Co. Ltd. and its CEO must face a lawsuit accusing them of depriving workers of $50 million by manipulating an employee stock option plan, with a New York federal court refusing Wednesday to reconsider its decision to let the suit continue.

  • June 19, 2019

    Clovis Directors Plead Ignorance On Rules In Drug Trial Suit

    Attorneys for the directors of biomedical company Clovis Oncology Inc. told a Delaware Chancery Court judge Wednesday that company management didn't inform the board that cancer drug trial results were being reported to federal regulators with non-conforming information.

  • June 19, 2019

    Credit Suisse Hit With Disclosure Fine In Hong Kong

    Hong Kong's securities watchdog said Wednesday it has fined Credit Suisse for failing to comply with disclosure requirements in reports released by the investment bank focusing on Hong Kong-listed securities.

  • June 19, 2019

    SEC Fights Ex-Xerox CFO's Bid To Lift 16-Year-Old Gag Order

    The U.S. Securities and Exchange Commission challenged a bid by a former Xerox executive to lift a gag order in his 16-year-old settlement with the agency, telling a New York federal court Tuesday that the man waived his First Amendment rights when he agreed to the consent judgment.

  • June 19, 2019

    Texas AG Fraud Case In Limbo After Prosecutor Pay Ruling

    The prosecutors in a felony securities fraud case against the Texas attorney general couldn't convince a Texas appeals court to reconsider its ruling that they can't be paid $300 an hour for their work, leaving observers to wonder whether they will make good on a threat to withdraw from the case.

  • June 19, 2019

    PG&E Wants Bankruptcy Court To Stop Securities Suit

    Beleaguered PG&E Corp. has asked the Northern California bankruptcy court to put a stop to a securities suit alleging that company directors misled investors about the utility's wildfire-related liability, saying it should be shielded from the suit while under Chapter 11 protection.

  • June 19, 2019

    Ex-Alaska Telecom Exec Gets 5 Years For $270M Scheme

    A Manhattan federal judge sentenced a former CEO of telecom company Quintillion Networks LLC to five years behind bars Wednesday for forging contracts in order to trick funders into investing $270 million to build a fiber optic data network in Alaska.

  • June 19, 2019

    White Eagle Ch. 11 Plan, Lender Settlement Confirmed

    Saved from an apocalyptic court fight by a settlement with prepetition lenders, bankrupt life insurance investor White Eagle Asset Portfolio secured confirmation of its Delaware Chapter 11 plan on Wednesday, triggering a race to pay off a $382.7 million debt through refinancing or asset sales.

  • June 19, 2019

    Danske Bank, Ex-Execs Want Suit Over Estonia Scandal Axed

    Danske Bank and its former leadership fired back at an investor suit on Tuesday, saying the European money-laundering scandal miring the Danish bank has little to do with securities and nothing to do with fraud.

  • June 18, 2019

    Judge Rips Bernstein Litowitz, MoFo Over Buried 'Side Deal'

    A California federal judge considering Restoration Hardware's proposed $50 million stock-drop settlement admonished attorneys from Bernstein Litowitz and Morrison & Foerster on Tuesday for failing to bring a confidential “side deal” to her attention, saying she's warned other judges that the lawyers buried mention of the deal deep inside settlement papers.

  • June 18, 2019

    FHFA, Wells Fargo Agree To Put Suit Over $1B RMBS On Hold

    The Federal Housing Finance Agency has agreed to pause its lawsuit against Wells Fargo over $1 billion in pre-crisis residential mortgage-backed securities purchased by Freddie Mac, a truce that means the agency will proceed first with its Second Circuit fight to have the case's claims excluded from a related $165 million settlement.

  • June 18, 2019

    Exchanges Want Another 2nd Circ. Look At 'Flash Boys' Suits

    A group of seven major U.S. stock exchanges are hoping the Second Circuit will take a second look at a consolidated group of class actions inspired by the high-frequency trading exposé “Flash Boys” that recently survived a dismissal bid.

  • June 18, 2019

    Wedbush To Pay $8.1M To Settle SEC's ADR Handling Claims

    The U.S. Securities and Exchange Commission said Tuesday that Wedbush Securities Inc. will pay $8.1 million to resolve claims over its alleged mishandling of “pre-released” American depositary receipts, the latest of nearly a dozen such settlements that the agency has reached with banks and brokers since 2017.

  • June 18, 2019

    Black Ridge Hit With Suit Over Sports And Entertainment Deal

    Investors in Black Ridge Acquisition Corp. filed a proposed class action in Delaware federal court Thursday accusing the company of acquiring two esports and entertainment assets of Ourgame International Holdings Inc. based on an incomplete proxy statement that's missing some key financial indicators.

  • June 18, 2019

    Facebook's Cryptocurrency Immediately In Legislators' Sights

    Facebook announced Tuesday its intention to launch its cryptocurrency Libra, which aims to target the 1.7 billion global unbanked population by creating a global digital currency, facing immediate pushback from U.S. legislators and European officials.

  • June 18, 2019

    Del. Justices Revive Investor's Blue Bell Listeria Suit

    The Delaware Supreme Court ruled Tuesday that a Blue Bell Creameries USA investor has shown that it's plausible to suggest the company’s officers may have failed to enact measures to protect ice cream products in connection with a deadly listeria outbreak in 2015.

  • June 18, 2019

    Calif. Green Energy Co. To Pay $7.7M To SEC For False Claims

    The U.S. Securities and Exchange Commission reached an agreement Tuesday with a San Diego-based green energy company to settle allegations its higher-ups conjured a rosy financial picture to hide tepid results.

  • June 18, 2019

    SEC Mulls Opening Private Offerings To A Wider Audience

    The U.S. Securities and Exchange Commission on Tuesday requested input on potential changes surrounding its regulation of private offerings, including whether rules should be eased to allow more individuals to invest in riskier securities that are normally limited to wealthy individuals.

  • June 18, 2019

    Wells Fargo Dodges Philly, Baltimore Bond Rate-Rigging Suit

    Philadelphia and Baltimore officials agreed in New York federal court Monday to let Wells Fargo out of their suit accusing several financial institutions of conspiring to inflate the interest rates on bonds used to fund major municipal projects.

  • June 18, 2019

    Temporary 'Cease-Fire' Called In Elk Petroleum's Ch. 11

    Elk Petroleum Inc. will continue to draw on $4 million in interim debtor-in-possession financing as parties that have raised issues with the oil and gas company's Chapter 11 declared a temporary "cease-fire" Tuesday to attempt to reach a resolution.

  • June 18, 2019

    DC Circ. Upholds SEC's Pay-To-Play Rule Over GOP Protest

    The D.C. Circuit affirmed Tuesday the U.S. Securities and Exchange Commission's authority to implement a rule meant to address "pay-to-play" practices by which government officials managing public funds might hire investment advisers based on their political contributions.

  • June 18, 2019

    Challengers Seek Partial Win Over Trump's '2-For-1' Order

    Three public interest groups asked a D.C. federal judge to hand them a quick victory on portions of their challenge to President Donald Trump's executive order requiring federal agencies to rescind two regulations for every new one created, arguing that new evidence demonstrates harm caused by the mandate.

  • June 18, 2019

    Mark Cuban Urges 5th Circ. To Stop SEC 'Forum Shopping'

    Dallas Mavericks owner Mark Cuban and two hedge fund managers have told the Fifth Circuit that the U.S. Securities and Exchange Commission is depriving investors of their constitutional right to a jury by filing lawsuits before the agency's own administrative law judges.

  • June 18, 2019

    Samarco Escapes Investor Suit Over Deadly Dam Collapse

    A New York federal judge said Tuesday that a bank branch’s proposed class action accusing a Brazilian mining company of misleading investors about the safety of an iron ore dam that collapsed in 2015 falls outside of U.S. jurisdiction.

Expert Analysis

  • Revisiting When — And When Not — To Seek Appraisal

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    After a string of recent Delaware Supreme Court decisions, it appears that seeking a court's independent appraisal of a deal price may be relevant only in the context of certain limited factual scenarios, say Michael Maimone and Joseph Schoell of Drinker Biddle.

  • Directors Must Heed SEC On Cybersecurity And Social Media

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    The U.S. Securities and Exchange Commission has made clear that it expects companies to take action to avoid and remediate cybersecurity breaches, and to carefully review information disclosed via social media. But many officers and directors remain underprepared for SEC enforcement in these areas, say attorneys at Vinson & Elkins.

  • Reducing The Regulatory Risk Of Merchant Cash Advances And Factoring

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    Courts and regulators have reached different conclusions on whether merchant cash advances and unpaid invoice purchases constitute loans subject to state lender licensing and usury regulations. Attorneys at Buckley discuss how to minimize the chances of these transactions being recharacterized as loans.

  • Q&A

    A Chat With Gilead Sciences Legal Ops Leader Gary Tully

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    In this monthly series, legal recruiting experts from Major Lindsey & Africa interview legal industry leaders about the increasingly competitive business environment. Here, Rod Osborne talks with Gary Tully, head of legal operations at Gilead Sciences.

  • DC Circ.'s Chance To Clarify 'Should Have Known' Liability

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    With its upcoming decision in Thaddeus North v. U.S. Securities and Exchange Commission, the D.C. Circuit should articulate a clear legal standard for when a compliance officer “should have known” about reportable events. Without such guidance, compliance officers cannot do their jobs without fearing unintended consequences, say Brian Rubin and Michelle McIntyre of Eversheds Sutherland.

  • Opinion

    FINRA's Presumptive Bad Actor Rule Seems Like Overkill

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    The Financial Industry Regulatory Authority's proposal to establish a system of preemptive confiscatory fines based on predictive analytics prompts many questions about whether such a regime would be necessary or fair, says Thomas Potter of Burr & Forman.

  • Series

    Why I Became A Lawyer: Completing The Journey Home

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    My mother's connection to her Native American heritage had a major influence on my career — my decision to enter the legal profession was driven by the desire to return to my tribal community and help it in any way I could, says Jason Hauter of Akin Gump.

  • Examining The Evidence On VIX Manipulation

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    An ongoing multidistrict litigation alleges manipulation of the formula used to determine the settlement price for derivatives based on the Chicago Board Options Exchange’s volatility index. But a review of trading data reveals how reasons other than manipulation can explain trading activity on any given day, say consultants with Analysis Group.

  • The Insider Trading 'Mess' Congress Is Trying To Fix

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    The House Committee on Financial Services recently approved the Insider Trading Prohibition Act, which creates a statutory definition of insider trading in response to what one legislator called a “judicial mess.” The history of insider trading prosecutions supports the need for clarification, say attorneys with Paul Hastings.

  • DC Circ. Gives New Meaning To 'Willful' In Securities Statutes

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    The D.C. Circuit’s recent decision in The Robare Group v. U.S. Securities and Exchange Commission drives home the idea that long-accepted interpretations of federal securities laws may be upended when appellate courts take a fresh look at the statutory language, say attorneys at Debevoise & Plimpton.

  • New Questions Over Corporate Officers' Legal Duties

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    Recent litigation between Hertz and its former executives raises novel questions about whether corporate leaders have a legally cognizable responsibility to set the right “tone at the top,” and the consequences if they fail to do so, say attorneys at Cleary.

  • Series

    Judging A Book: Wood Reviews 'The Making Of A Justice'

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    Retired U.S. Supreme Court Justice John Paul Stevens' new book, "The Making of a Justice," is required reading for anyone interested in 20th and 21st century America, says Seventh Circuit Chief Judge Diane Wood.

  • Where The Post-Libor Litigation Tsunami Will Hit

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    The permanent cessation of the Libor rate in 2021 will likely trigger a flood of litigation over many existing contracts that lack effective replacements. Marc Gottridge of Hogan Lovells identifies the types of products that may be most susceptible to disputes.

  • 2nd Circ.'s Logical Take On 'Event-Driven' Securities Claims

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    The Second Circuit's recent opinion in Singh v. Cigna will not put an end to "event-driven" securities cases, which revolve around negative operational incidents. But it will likely increase the dismissal rate of such claims, and may deter weaker filings, say Adam Hakki and Agnès Dunogué of Shearman & Sterling.

  • What Gov't Outsourcing Ruling Means For Investigations

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    A New York federal court's recent decision in U.S. v. Connolly is a warning to prosecutors against outsourcing their investigations to companies and outside counsel, but it should also be used by companies to determine the framework for internal investigations, says Rachel Maimin of Lowenstein Sandler.

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