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Securities
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September 14, 2023
First Post-Cochran Suit Against SEC In-House Courts Dropped
A Georgia-based investment banker has agreed for now to drop his lawsuit targeting the U.S. Securities and Exchange Commission for its in-house proceedings, which was apparently the first constitutional challenge of its kind since the U.S. Supreme Court cleared the way for such cases in April.
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September 14, 2023
Ex-Morgan Stanley Broker's $8.8M Recruiting Loan Case Axed
A California federal judge on Thursday tossed an ex-Morgan Stanley adviser's suit seeking to recover his repaid $8.8 million recruiting loan since the Morgan Stanley subsidiary that carried the promissory note was not licensed in the Golden State, saying the plaintiff wants a "bonanza," and "that troubles me greatly."
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September 14, 2023
Archegos Duo Can't Subpoena Fraud Victims, Feds Say
Prosecutors asked a Manhattan federal judge to reject a request from former Archegos executives Bill Hwang and Patrick Halligan to subpoena financial firms allegedly victimized by a fraud scheme, saying the defendants hadn't explained how the requested information was relevant to the case.
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September 14, 2023
Myovant, Sumitomo Deal Hurt By Skadden Conflict, Suit Says
Pharmaceutical companies Myovant Sciences Ltd. and Sumitomo Pharma American Inc. were sued by a shareholder alleging that lawyers from Skadden Arps Slate Meagher & Flom who helped negotiate a merger between the companies had undisclosed conflicts that resulted in lost value to Myovant minority shareholders after the deal went through at what they called a suboptimal price.
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September 14, 2023
Compliance Hires Roundup: Regions Bank, Enbridge & More
Regions Bank has announced the appointment of a new chief compliance officer who previously held a leadership role at SunTrust Bank, while the compliance space saw various other moves this week, including at Balfour Beatty US, Enbridge Inc. and Dynasty Financial Partners.
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September 14, 2023
Sbaiti To Lead Barclays Unregistered Securities Investor Suit
Two lawsuits claiming Barclays customers were duped into buying unregistered securities were consolidated in New York federal court and will be led by counsel from Texas-based Sbaiti & Co. PLLC.
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September 14, 2023
Latham, V&E Advise Vital Energy On $1.2B Oil Field Expansion
Latham & Watkins LLP and Vinson & Elkins LLP advised Vital Energy in securing three acquisitions valued at approximately $1.17 billion Thursday, which the energy company said has the potential to add approximately 248 million barrels of oil equivalent to its arsenal, increasing its current production by 50%.
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September 14, 2023
Ex-Pfizer Worker To Stand Trial In Paxlovid Insider Case
Counsel for a former Pfizer Inc. statistician told a Manhattan federal judge Thursday his client will stand trial on charges that he and a friend traded on secrets about the company's Paxlovid COVID-19 therapy trials to earn $350,000 in illegal profits.
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September 14, 2023
AmeriLife Hires Ex-MetLife Compliance Executive
Insurance company AmeriLife Group LLC has found a new chief risk and compliance officer, handing the role to an attorney who formerly oversaw compliance duties for a MetLife spinoff.
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September 13, 2023
Alexion Inks $125M Deal In Investors' Suit Over Sales Tactics
Alexion shareholders asked a Connecticut federal judge to approve a $125 million settlement to end claims that the drugmaker caused a double-digit plunge in stock price after its allegedly illegal sales strategy came to light, a deal that comes five months after the investors won certification of their class.
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September 13, 2023
Biscayne Capital Exec Pleads Out In $155M Fraud Case
The co-founder of investment advisory firm Biscayne Capital on Wednesday admitted to his role in what prosecutors say was a $155 million Ponzi scheme that defrauded banks and investors in a purported luxury real estate fund.
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September 13, 2023
SEC Proposes Security, Access Improvements For EDGAR
The U.S. Securities and Exchange Commission on Wednesday unveiled several proposed tweaks to its electronic filing system EDGAR aimed at bolstering security and improving access, the first meaningful change to the system in more than a decade, according to an announcement from the agency.
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September 13, 2023
SEC's Gensler Warns Of Potential AI-Driven Financial Crisis
U.S. Securities and Exchange Commission Chair Gary Gensler said Wednesday that U.S. and international regulators should be concerned about the "somewhat inevitable" possibility of consolidation in the artificial intelligence space, which he warned could lead to fragility in the financial markets and possibly even spur a financial crisis.
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September 13, 2023
2nd Circ. Dismisses 'Untimely' Rio Tinto Investor's Appeal
A three-judge panel of the Second Circuit determined an investor took too long to file his appeal of a dismissal order ending a securities fraud class action against Rio Tinto stemming from a Mozambican coal mining project.
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September 13, 2023
Hilton, Fallon, Bieber Want Out Of Bored Ape NFT Suit
Paris Hilton, Jimmy Fallon, Justin Bieber and other celebrities who have been sued by crypto investors over their endorsements of Yuga Labs's Bored Ape non-fungible tokens have urged a California federal judge to throw out the case, arguing their endorsements were only "innocuous" statements that cannot subject them to any liability.
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September 13, 2023
Old Offer To Drop Chancery Case Roils Bioverativ Settlement
An attorney for stockholders who secured an $84 million partial settlement in a Delaware Chancery Court suit challenging biotech venture Bioverativ Inc.'s 2018 sale to Sanofi Inc. revealed in court Wednesday that the lead stockholder was once offered $50,000 to drop the case.
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September 13, 2023
Cardinal Health, Investors Get Final OK For $109M Settlement
Health care industry supplier Cardinal Health Inc. and certain of its investors got final approval Wednesday for their $109 million deal to end claims that Cardinal acquired a Johnson & Johnson unit without disclosing inventory and supply chain issues its acquisition target faced.
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September 13, 2023
Manufacturer Orgs. Sue SEC Over Private Biz Disclosure Rule
The National Association of Manufacturers is suing the U.S. Securities and Exchange Commission over a policy that will require private businesses to publicly disclose certain financial information in order to access the secondary bond market, arguing that the policy was enacted without public input and could harm job-creation efforts.
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September 13, 2023
Shareholder Seeks Cigna Records On Claim Denial 'Algorithm'
A shareholder has sued The Cigna Group in Delaware's Court of Chancery to obtain books and records that could shed light on an exposé that claims the insurer used an "algorithm" to automatically reject claims in bulk without a doctor's meaningful review of whether the requests were medically necessary.
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September 13, 2023
Kirkland Lands $28M In Fees In Crypto Broker Voyager Ch. 11
A New York judge on Wednesday approved nearly $89 million in fees for lawyers and other professionals — including $28 million for debtors' counsel Kirkland & Ellis LLP — working on the bankruptcy case of defunct crypto broker Voyager Digital, despite an outburst from an angry creditor.
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September 13, 2023
Chancery Tosses Some Claims In Parts Firm Merger Suit
Rulings from the bench trimmed some but not all claims Wednesday from a stockholder suit in the Delaware Court of Chancery accusing Chicago-based factory and automotive parts venture Distribution Solutions Group Inc. of failing to disclose conflicts and costs of a three-way merger in late 2021.
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September 13, 2023
Carlyle Says 'Ungrounded' $344M Del. Tax Suit Should Go
The allegation that an independent director of The Carlyle Group Inc. was so beholden to one of its co-founders that his judgment about a $344 million tax asset buyout was skewed is "factually ungrounded" and the pension fund shareholder making the allegation should have its Delaware Chancery Court case thrown out, the private equity firm said Wednesday.
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September 13, 2023
Prime Trust Parent's Sale Plan To Wrap Ch. 11 By December
The parent company of cryptocurrency custodial business Prime Trust received bankruptcy court approval Wednesday for bidding procedures aimed at completing a sale and confirming a Chapter 11 plan by the end of the year.
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September 13, 2023
Cloud Co.'s Lack Of Tax Expertise Hurt Investors, Suit Says
Cloud computing technology company DigitalOcean Holdings Inc. was hit with a proposed class action by investors who allege that the company concealed ineffective financial controls and later admitted it did not possess the expertise to evaluate complicated tax transactions.
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September 13, 2023
FTX Gets Go-Ahead To Sell $100M In Crypto A Week
A Delaware bankruptcy judge Wednesday gave FTX the go-ahead to hire an investment manager and sell up to $100 million in cryptocurrency a week after hearing the proposal endorsed by both official and unofficial unsecured creditor groups.
Expert Analysis
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Caregiver Flexibility Is Crucial For Atty Engagement, Retention
As the battle for top talent continues post-pandemic, many firms are attempting to attract employees with progressive hybrid working environments — and supporting caregivers before, during and after an extended leave is a critically important way to retain top talent, says Manar Morales at The Diversity & Flexibility Alliance.
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How A Union Fight Played A Key Role In Yellow's Bankruptcy
Finger-pointing between company and union representatives appears to be front and center at the early stages of trucking company Yellow’s bankruptcy case, highlighting the failed contract negotiations' role in the company's demise, says George Singer at Holland & Hart.
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The FTC May Be Expanding Its Monetary Relief Toolbox
The Federal Trade Commission's recent settlement with crypto exchange Celsius — which resolved a Gramm-Leach-Bliley Act pretexting count — reveals an attempt to significantly expand the FTC's authority to obtain monetary relief in ordinary matters regarding unfair or deceptive acts or practices, says Nikhil Singhvi at Covington.
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5th Circ. Ruling Will Spur Challenges To No-Action Letters
The Fifth Circuit's recent Clarke v. U.S. Commodity Futures Trading Commission decision that withdrawing no-action letters constitutes a final agency action subject to judicial review means federal agencies should expect more challenges to the practice, which has been criticized for failing to provide clear standards and enabling agencies to change course abruptly, say attorneys at Sidley.
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4 Ways Company Execs Can Prep For SEC Cybersecurity Rule
In light of the U.S. Securities and Exchange Commission’s recent, and final, cybersecurity disclosure requirements, company leaders should undertake four factual assessments now to prepare their companies to respond quickly and agilely to the seemingly inevitable cyberattack, says Jennie Wang VonCannon at Crowell & Moring.
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NC Sports Betting Law May Bring New Blockchain Frontier
North Carolina's new law that allows online and retail betting on professional, college and esports sports events has provided the blockchain industry with an opportunity to prove that its technology is better than that of traditional financial systems by listing cryptocurrencies as an accepted asset to wager, says Samir Patel at Holland & Knight.
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In-Office Engagement Is Essential To Associate Development
As law firms develop return-to-office policies that allow hybrid work arrangements, they should incorporate the specific types of in-person engagement likely to help associates develop attributes common among successful firm leaders, says Liisa Thomas at Sheppard Mullin.
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SEC Focus On Perks Offers Insights On Cooperation
The U.S. Securities and Exchange Commission's recent settlement with Stanley Black & Decker is the latest example of the SEC's continued focus on executive perquisites and highlights what type of cooperation may be required to avoid a civil money penalty, say attorneys at Morgan Lewis.
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Perspectives
A Judge's Pitch To Revive The Jury Trial
Ohio state Judge Pierre Bergeron explains how the decline of the jury trial threatens public confidence in the judiciary and even democracy as a whole, and he offers ideas to restore this sacred right.
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How SEC Money Market Fund Reform Diverges From Proposal
The U.S. Securities and Exchange Commission's final amendments to a rule that governs money market funds include several differences from the proposed rule, namely the elimination of swing pricing, the imposition of a new liquidity fee framework, and certain regulatory reporting requirements, say attorneys at K&L Gates.
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Deal-Making Strategies To Explore Amid 2023's Uncertainties
Attorneys at White & Case delve into the evolving risks deal makers face in the remainder of 2023, detailing several approaches — such as activist simulations, stock-for-stock deals and divestitures — that may deliver value in an uncertain market.
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5 Quick Takeaways From Feds' New Bank Capital Proposals
The federal banking agencies' recent proposed rulemaking on capital requirements is the culmination of a holistic review of U.S. capital standards initiated by the Federal Reserve, and at over 1,000 pages, the proposal will take some time to fully digest, but there are a few items that can be immediately highlighted, say attorneys at Simpson Thacher.
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How To Recognize And Recover From Lawyer Loneliness
Law can be one of the loneliest professions, but there are practical steps that attorneys and their managers can take to help themselves and their peers improve their emotional health, strengthen their social bonds and protect their performance, says psychologist and attorney Traci Cipriano.
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Opinion
Litigation Funding Disclosure Should Be Mandatory
Despite the Appellate Rules Committee's recent deferral of the issue of requiring third-party litigation funding disclosure, such a mandate is necessary to ensure the even-handed administration of justice across all cases, says David Levitt at Hinshaw.
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Recalling USWNT's Legal PR Playbook Amid World Cup Bid
As the U.S. Women's National Soccer Team strives to take home another World Cup trophy, their 2022 pay equity settlement with the U.S. Soccer Federation serves as a good reminder that winning in the court of public opinion can be more powerful than a victory inside the courtroom, says Hector Valle at Vianovo.