Securities

Expert Analysis

• Opinion

  The Remote Jury Trial Is A Bad Idea

  

  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

  

  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.

• Opinion

  Visa Suspension Is Not The Answer To US Unemployment

  

  An analysis of the number of immigrants affected by the Trump administration's suspension of green card processing — expected to be extended beyond the June 22 expiration date — shows that the administration's anti-immigrant policies will not help the U.S. labor market or economy recover, says Dominique Pando Bucci at Kurzban Kurzban.

• Opinion

  Strict Liability Has No Place In 'Should Have Known' Case

  

  Because the defendant in Thaddeus North v. U.S. Securities and Exchange Commission was not charged on a strict liability claim, the D.C. Circuit should reject the SEC's interpretation of the compliance officer's "should have known" liability as such, say Brian Rubin and Michelle McIntyre at Eversheds Sutherland.

• Civility Could Be Litigators' New Normal Even Post-Pandemic

  

  The past few months of lockdown have given rise to some profound patterns — litigators are more cooperative and less adversarial — and as the activities of courts and tribunals resume, lawyers should consider continuing to devote more time and resources to resolving disputes instead of fighting them out, says Matthew Vafidis at Holland & Knight.

• How To Prep For Investor-State Disputes Related To COVID-19

  

  Parties can prepare for the coming storm of investor-state disputes arising from government measures to fight COVID-19 by reviewing international investment agreements for potential claims and the International Law Commission's draft articles for state defenses, say attorneys at K&L Gates.

• OCC's Interest Rate Transfer Rule Is No Madden Panacea

  

  A new U.S. Office of the Comptroller of the Currency rule clarifies what happens to interest rates when banks transfer loans, but because it doesn’t overturn the Second Circuit’s 2016 Madden ruling, its significance hinges on how much deference courts will give to the agency’s interpretation, say attorneys at White & Case.

• SEC's Token Issuer Case May Help Define Crypto Market

  

  A New York federal court's upcoming decision on whether digital tokens should be considered securities in U.S. Securities and Exchange Commission v. Kik, on the heels of a similar case against Telegram Group, will likely help clarify the legal status of blockchain tokens, say attorneys at BakerHostetler.

• Law Firms Must Beware Risks In Nontraditional Financing

  

  Law firms in today's financial crisis may be looking at nontraditional arrangements such as portfolio funding or factoring to provide liquidity and cash support, but firms must first consider lawsuits brought against Pierce Bainbridge and other recent developments, says Katherine Toomey at Lewis Baach.

• Anticipate Glitches In Virtual Annual Meetings

  

  Companies with virtual annual meetings still to come may want to consider some of the concerns that have been raised and coordinate with their remote meeting provider to put plans in place to address recurring issues, say LaDawn Naegle and Vicki Westerhaus at Bryan Cave.

• 2 Tested Alternatives To Unavoidable Court Delays

  

  Those seeking resolution in commercial disputes that are stuck in an unavoidable but lengthy court backlog due to the pandemic must consider the advantages of arbitration and mediation over court proceedings, says former U.S. District Judge Shira Scheindlin now at Stroock.

• Opinion

  Minn. Ruling Represents Sensible Stance On Legal Finance

  

  The Minnesota Supreme Court's Maslowski v. Prospect Funding Partners decision this week reaffirms that the doctrine of champerty is archaic, impedes important litigation finance activity, and should be abolished in the handful of states where it remains alive, says Andrew Cohen at Burford Capital.

• NY Shareholder Litigation Dismissal Raises Bar For Plaintiffs

  

  The New York Supreme Court Commercial Division's recent dismissal of Culligan Soft Water v. Clayton Dubilier & Rice highlights nuances associated with presuit demand and demand futility in shareholder derivative litigation, and imposes a new hurdle for plaintiffs when there is a change in the company's control, say Ian Kerr and Muhammad Faridi at Patterson Belknap.

• And Now A Word From The Panel: Pandemic MDLs

  

  While it is too soon to know whether the Judicial Panel on Multidistrict Litigation will receive any petitions related to the COVID-19 pandemic, there are lessons to be learned from looking back at the panel's experience with MDLs in the aftermath of past outbreaks, says Alan Rothman at Sidley.

• Best Practices For A Paperless Law Practice

  

  A significant challenge in practicing law remotely is the use and handling of documents without paper, because common digital tools such as email or even secure file transfer applications are problematic, say attorneys at Baker McKenzie.