Securities

  • 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.

  • June 24, 2020

    Strip Club Investors Fight To Keep Nondisclosure Suit Alive

    Investors of strip club operator RCI Hospitality Holdings asked a Texas federal judge Tuesday not to dismiss their proposed class action alleging executives hid that they were using company funds "as their own personal cookie jar."

  • June 24, 2020

    How Trump Forever Changed Judicial Nominations

    President Donald Trump notched his 200th confirmation to the federal courts faster than any predecessor in the last 40 years, cementing a conservative imprint that will last for decades and redefining the judicial selection process in ways likely to outlast his administration.

  • June 23, 2020

    Justices' Liu Ruling Creates More Questions Than Answers

    Monday's highly anticipated U.S. Supreme Court opinion in Liu v. SEC answered one basic question about the top securities regulator's disgorgement powers — and punted a host of more complicated issues that one expert says will be "alive and kicking throughout the courts for a long time to come."

  • June 23, 2020

    Black-Owned Investment Firm Accuses NJ, BlackRock Of Bias

    BlackRock Inc. and the New Jersey Department of the Treasury were hit with a federal lawsuit Tuesday by a minority-owned investment firm alleging the state cast it aside for a contract and instead gave the contract, along with confidential information, to the "overwhelmingly white" financial giant.

  • June 23, 2020

    Del. Justices Clarify State LP Disclosure Law For 9th Circ.

    Delaware's Supreme Court said Tuesday that a limited partner agreement under Delaware law did not require a financial services newsletter author to disclose to an investor that the author's hedge fund had only two investors, after the Ninth Circuit asked the justices for a legal clarification.

  • June 23, 2020

    Shareholder Suit Over GTx And Oncternal Merger Tossed

    A New York federal judge on Tuesday dismissed a proposed class action filed against merged biopharmaceutical companies GTx Inc. and Oncternal Therapeutics Inc. that alleged they misrepresented the details of their 2019 merger.

  • June 23, 2020

    3rd Circ. Ruling Cited In Bid To Ax Investors' Grenfell Fire Suit

    Attorneys for Arconic Inc. on Tuesday said a recent Third Circuit opinion that revived an investor suit against M&T Bank for failure to disclose risks in a proposed merger supports the metal maker's bid to toss its own investors' claims over risks that were allegedly revealed by London's fatal Grenfell Tower fire.

  • June 23, 2020

    Chinese Fintech Co. Must Face Securities Suit, Investors Say

    A Chinese fintech company should have to face investors' claims it misrepresented its financials in advance of its 2019 initial public offering, the company's shareholders said Monday.

  • June 23, 2020

    Pomerantz To Lead Investor Suit Against Pot Co. PharmaCielo

    A California federal court has tapped Pomerantz LLP as lead counsel in a proposed securities class action against Canadian cannabis grower PharmaCielo, which investors claim lost a third of its value amid allegations of self-dealing, sham distribution deals and problems at cultivation sites in Colombia.

  • June 23, 2020

    Russian Telecom Didn't Aid DOJ Bribery Probe, Investors Say

    A proposed class of investors has shot back at a Russian telecommunications company's efforts to dodge accusations that it made $420 million in bribes to officials in Uzbekistan, telling a New York federal judge the company lied to investors about cooperating with a U.S. Department of Justice investigation.

  • June 23, 2020

    Thomas Gira, Head Of Market Regulation At FINRA, Dead At 58

    Thomas Gira, the highly regarded head of market regulation at the Financial Industry Regulatory Authority and leader of its most ambitious projects, has died, the organization announced Tuesday. He was 58.

  • June 23, 2020

    Microcap Trader Fights SEC Suit Over Unregistered Dealing

    A microcap stock trader urged a Florida federal court to toss a U.S. Securities and Exchange Commission suit accusing him of reaping $21.5 million in profits while failing to register as a securities dealer, arguing the SEC's own guidelines excuse him from registering.

  • June 23, 2020

    Nasdaq Serves Luckin Coffee Another Delisting Notice

    Chinese coffee retailer Luckin Coffee Inc., which is already in hot water for alleged fraud leading to its ill-fated initial public offering, said Tuesday it received another warning from Nasdaq threatening to delist its stock — this time for failing to file its annual report on time.

  • June 23, 2020

    Televisa Investors Ask Again For Cert. In FIFA Bribes Suit

    Investors in Mexican media company Grupo Televisa SAB on Monday renewed their bid for class certification in a suit alleging the company's executives played a role in FIFA's vast corruption scandal after a Manhattan federal judge shot down their first request over their proposed lead's possible conflict of interest in the matter.

  • June 22, 2020

    7th Circ. Won't Revive 'Perplexing' AbbVie Stock Drop Suit

    The Seventh Circuit declined to revive a lawsuit from an AbbVie Inc. investor who claimed the pharmaceutical company caused investors to lose $100 million when it corrected the preliminary results of its May 2018 Dutch tender offer, calling the appeal's arguments "perplexing."

  • June 22, 2020

    CFPB Pitches Plan To Replace Expiring Mortgage Regs 'Patch'

    The Consumer Financial Protection Bureau on Monday called for scrapping a debt-to-income ratio limit and associated calculation guidelines from its qualified mortgage regulations as part of a plan to handle the looming expiration of a provision that covers billions of dollars in home loan originations each year.

  • June 22, 2020

    Fears Of Stablecoin Dominance Inflated, Fed Paper Suggests

    Digital currencies backed by a basket of fiat currencies have the potential to increase welfare if they are widely adopted, according to a paper published online Monday by the Federal Reserve Board, which also concluded that fears of such digital currencies replacing sovereign currencies could be exaggerated.

  • June 22, 2020

    Sentenced Ex-Fox Rothschild Atty Free To Practice Law Again

    A former Fox Rothschild LLP attorney sentenced to federal prison for insider trading related to a $760 million merger is cleared to practice law again, after Pennsylvania's Supreme Court on Monday retroactively suspended him from the state bar for four years starting in April 2016.

  • June 22, 2020

    NetSuite Execs Escape Suit Over $9.3B Oracle Merger

    The Delaware Chancery Court trimmed a shareholder derivative challenge to Oracle Corp.'s $9.3 billion acquisition of NetSuite Inc. on Monday, freeing NetSuite executives from the suit and leaving intact breach of fiduciary duty claims against Oracle's top brass.

  • June 22, 2020

    Deutsche, US Unit Face Suit Over Tokyo Traders' Spoofing

    Deutsche Bank AG and its U.S.-based securities brokerage unit got hit with a proposed class action Monday over a market spoofing scheme allegedly conducted by two traders in 2013, which contributed to regulatory penalties the companies agreed to pay last week.  

  • June 22, 2020

    SEC Chair's Nomination To Lead SDNY Raises Eyebrows

    President Donald Trump's nomination of U.S. Securities and Exchange Commission head Jay Clayton as U.S. attorney for the Southern District of New York left some lawyers scratching their heads Monday, with a few noting he brings great leadership skills but is ill-fitted for the role due to his lack of criminal litigation experience.

Expert Analysis

  • 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.

  • Opinion

    Visa Suspension Is Not The Answer To US Unemployment

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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.

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