Securities

  • May 26, 2020

    High Court Won't Review Nonconsensual Ch. 11 Releases

    The U.S. Supreme Court on Tuesday said it won't review a Third Circuit decision that allowed the 2015 confirmation of a troubled laboratory company's Chapter 11 plan over opposition from creditors that argued the plan unconstitutionally released key parties from damage claims without creditor consent.

  • May 26, 2020

    ​​​​​​​Labaton Sucharow Takes Lead In WWE Stock-Drop Suit

    A New York federal judge on Friday named Labaton Sucharow LLP lead counsel in a consolidated proposed stockholder class action that alleges World Wrestling Entertainment Inc. hid souring relations with Saudi Arabia from investors, causing the stock price to drop when the facts came to light.

  • May 26, 2020

    Investors Seek To Wrap $95M Deal On Bond Price-Fix Claims

    Investors accusing Bank of America, Deutsche Bank and HSBC of rigging the market for bonds issued by foreign governments are urging a New York federal court to approve a proposed allocation of the $95.5 million in settlements reached with the banks over the proposed class action.    

  • May 22, 2020

    Law360 Reveals Titans Of The Plaintiffs Bar

    They've represented consumers, companies, and government entities, taken on Goliaths in industries ranging from aerospace to health care to finance to technology to sports, and won landmark victories on behalf of clients across the country.

  • May 22, 2020

    Feds Rip Ex-Apple Atty's 'Hail Mary' Bid To Nix Criminal Case

    Federal prosecutors on Friday tore into a dismissal bid lodged by a former senior Apple attorney indicted for insider trading, saying the lawyer's argument that the criminal case against him is unconstitutional is the legal equivalent of "a Hail Mary pass."

  • May 22, 2020

    Hollywood Executive Charged With $28M BlackRock Fraud

    Hollywood distribution executive William Sadleir was accused of spiriting some $28 million out of his distribution company — cheating funder BlackRock, which had poured in $75 million — and separately misusing a $1.7 million coronavirus relief payment.

  • May 22, 2020

    Goldman Class Cert. Ruling Has COVID-19 Implications: Amici

    A group of law professors and former SEC officials said the Second Circuit's recent split-panel ruling against Goldman Sachs in a heavily watched class certification fight creates risks to public companies that are now exacerbated by the COVID-19 crisis.

  • May 22, 2020

    Akorn Gets OK To Tap Into $30M Ch. 11 Funds

    Specialty pharmaceutical giant Akorn Inc. was cleared Friday by a Delaware judge to tap into its $30 million debtor-in-possession loan as it seeks a Chapter 11 buyer for its assets with a floor bid worth roughly $1 billion in place from secured lenders.

  • May 22, 2020

    Calif. Financial Adviser Charged In Alleged $10M Ponzi Scam

    Federal prosecutors have charged and arrested a California-based financial planner and adviser for wire fraud tied to an alleged Ponzi scheme they say he used to dupe 75 victims, mainly senior citizens, into forking over $10 million to invest in securities that didn't exist.

  • May 22, 2020

    SEC Actions Point To 'Hyperfocus' On Disclosure Issues

    The U.S. Securities and Exchange Commission is clamping down on investment advisers and broker-dealers with wide-ranging initiatives and settlements that highlight a "hyperfocus" on disclosure issues, showing the regulator is determined to improve the ways firms communicate with clients, attorneys say.

  • May 22, 2020

    Investors Seek Class Cert. In Health Insurance Scam Suit

    Investors of a Tampa-based health insurance company alleging it led a "bait-and-switch scam" that caused its stock to drop 62% when it came to light asked a Florida federal judge Thursday to certify the proposed class action.

  • May 22, 2020

    FINRA Can't Pin $12.5M Promissory Note Fraud On Brokerage

    A three-member Financial Industry Regulatory Authority panel chucked an enforcement action accusing a brokerage firm and its principals of fraudulently selling $12.5 million in promissory notes to prop up a struggling real estate investment business, finding on Thursday that the regulator was short on evidence.

  • May 22, 2020

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen a Puerto Rican lender sue Venezuela's state-run oil company months after inking a settlement over suspicious payments, a Dutch tulip grower take Maersk into court over a cargo shipment and Wilmington Trust face down commercial fraud claims. Here, Law360 looks at those and other new claims in the U.K.

  • May 22, 2020

    SEC Backs Fine For Compliance Chief Who Missed Red Flags

    The U.S. Securities and Exchange Commission told the D.C. Circuit on Thursday that a former broker-dealer compliance chief was sanctioned not for knowing about a new hire's ties to a barred broker, but for failing to investigate them "in the face of red flags."

  • May 22, 2020

    Is The Future Of The Annual Shareholder Meeting Online?

    The coronavirus pandemic has forced a reckoning for in-person shareholder meetings. This year's necessary migration to virtual meetings could erode some of the traditional opposition to online formats, but attorneys say widespread adoption in the future isn't inevitable.

  • May 22, 2020

    Coronavirus Q&A: Dechert Real Estate Leader

    In this edition of Coronavirus Q&A, one of Dechert's global real estate finance leaders discussed the ways COVID-19 is impacting the commercial mortgage-backed securities market and likened the current pandemic to the unknowns faced by early explorers and cartographers.

  • May 22, 2020

    3 Ways The Pandemic Has Changed How IPOs Are Done

    The coronavirus outbreak has shaken up how initial public offerings are done in ways that could last beyond the pandemic itself, including a shift to virtual roadshows that deal advisers say provide certain efficiencies that companies may enact permanently. Here, Law360 takes a look at three ways the pandemic is altering how IPOs are practiced.

  • May 21, 2020

    Tesla Investor Latest To Sue Elon Musk For Libel By Tweet

    A Tesla investor who runs the law website PlainSite became the latest person to sue CEO Elon Musk for libel by tweet on Wednesday, alleging Musk and another man perpetuated false allegations against him and his family for months to service "one of the largest securities frauds in American history."

  • May 21, 2020

    Renren Investor Suit Persists As NY Judge OKs Jurisdiction

    A derivative shareholder suit involving Chinese social media company Renren Inc., certain company executives and their financial adviser that claims shareholders were cheated out of $500 million can move forward in New York state court after a judge ruled that the court can assert jurisdiction over defendants.

  • May 21, 2020

    SEC Urged To Establish ESG Disclosure Policies

    A U.S. Securities and Exchange Commission advisory committee that advocates for investors on Thursday urged the SEC to establish disclosure policies regarding environmental, social and governance, or ESG, topics, arguing that more investors want reliable information on these matters before making investment and voting decisions.

  • May 21, 2020

    Investors' Attys Get $11M After Settlement With ER Operator

    A Texas federal judge has signed off on an $11 million fee award for the attorneys who helped investors reach a $44 million settlement with Adeptus Health in their suit accusing the emergency room operator of misleading them in securities offerings.

  • May 21, 2020

    Coronavirus Litigation: The Week In Review

    McDonald's workers say unsafe practices at some of the fast food giant's restaurants could endanger public health, students are suing over technical issues with online Advanced Placement exams, and the Sixth Circuit held this week that COVID-19-related loans can't be withheld from strip clubs and adult novelty stores. Here's a breakdown of some of the coronavirus-related cases from the past week.

  • May 21, 2020

    Judge Urges End To Suit Over Papa Murphy's $190M Merger

    A Washington federal magistrate judge recommended pizza chain operator Papa Murphy's and its financial adviser be dismissed from a putative securities class action accusing the pick-up and delivery company of downplaying its finances ahead of a $190 million merger that allegedly gave investors too small of a slice.

  • May 21, 2020

    UK Finance Cos. Can Deduct Stock Option Debits, Court Rules

    Two U.K.-based financial companies can deduct debits resulting from stock option grants to their employees for the purpose of calculating their profits for the country's corporation tax, England and Wales' second-highest court said Thursday.

  • May 21, 2020

    Ex-Goldman Banker Cites COVID-19 In Bid To Avoid Prison

    A former Goldman Sachs banker who copped to sharing corporate secrets with a supervisor's acquaintance told a New York federal judge Wednesday that given the pandemic, he should be sentenced to supervised release and a year of community service.

Expert Analysis

  • Slack Case May Incite Securities Liability For Direct Listings

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    A California federal court's recent opinion in Dennee v. Slack Technologies addressed application of the Securities Act’s civil liability provisions to direct listings, which is a risk companies should consider in deciding whether to go public, particularly where they have no need for new equity capital, say attorneys at Cleary.

  • 5 Securities Litigation Questions Raised By Del. Forum Ruling

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    The Delaware Supreme Court's recent opinion in Salzberg v. Sciabacucchi answers one important question about the use of forum selection language in constitutive corporate documents, but raises a host of other questions — including whether a corporation can require arbitration of securities claims, says Allon Kedem at Arnold & Porter.

  • Remote Depositions Bring Ethics Considerations For Lawyers

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    Utilizing virtual litigation technologies and participating in remote depositions require attorneys to beware of inadvertently violating their ethical obligations, including the principal duty to provide competent representation, say attorneys at Troutman Sanders.

  • Rapid Clinical Developments Increase Insider Trading Risks

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    No company wants the celebration of a critical health breakthrough to be dampened by an insider trading investigation, which makes now a good time for compliance officers at pharmaceutical and life sciences companies, and industry-specific asset managers, to increase policing, say Christopher Conniff and Eve Shabto at Ropes & Gray.

  • Regulatory Relief For BDCs Amid Pandemic Is Limited

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    The U.S. Securities and Exchange Commission's conditional relief allowing business development companies to provide additional capital to portfolio companies is welcome, but its narrow scope may require BDCs to seek further regulatory assistance, say attorneys at Dechert.

  • SEC Proposals To Simplify Exempt Offerings Are Just In Time

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    The fortuitous timing of the U.S. Securities and Exchange Commission’s proposed rules to streamline exempt offerings should help expand access to capital for issuers and investment opportunities for buysiders grappling with the economic challenges of the pandemic, say attorneys at Manatt.

  • Early Pandemic-Related Shifts We're Seeing In Legal Finance

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    As law firms chart their paths forward during these unsettled times, litigation funders are already observing changes in the types of products firms are seeking, such as an increase in one-off case funding requests, says Eric Blinderman at Therium.

  • COVID-19 Gives Congress Greater Incentive To Pass SAFE Act

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    The SAFE Banking Act provides a cost-free way for Congress to buoy the legal cannabis industry by loosening some of the financial impediments the product's federal status imposes on state-legal businesses, say attorneys at Benesch.

  • Litigation Risks For Energy Executives During Bankruptcy

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    With oil prices at historical lows and a deluge of bankruptcies in the sector inevitable, it is vital that directors and officers understand the legal framework that governs their conduct, the types of transactions that will face enhanced scrutiny, and what to do now to minimize bankruptcy litigation risks, say attorneys at King & Spalding.

  • Opinion

    The Death Of The LSAT

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    Over the last year, the LSAT has been anything but unflappable — it has not been the objective, standardized law school entrance exam it's supposed to be, say soon-to-be law student Elliot Fuchs and attorney Saul Bienenfeld.

  • Corporate COVID-19 Response Must Look Beyond Poison Pills

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    Shareholder rights plans, or poison pills, are insufficient defensive approaches to addressing the coronavirus pandemic's impact on enterprise risk compared to company-specific strategies that monitor, preempt and mitigate current and potential threats, say attorneys at King & Spalding.

  • Relief For Ginnie Mae Servicers Comes With Strings Attached

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    While Ginnie Mae's recently announced liquidity relief for its mortgage-backed securities platform should help mortgage servicers withstand the impending tidal wave of delinquencies, several of the program's compliance requirements present significant obstacles for issuers, say attorneys at Dentons.

  • Pandemic May Prompt Legislative Action On Court Deadlines

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    The COVID-19 crisis shines light on the fact that the federal government and most states do not have the power to toll statutes of limitations, and could lead to a full-scale reconsideration of the Federal Judiciary Emergency Powers Tolling Act or other legislative efforts, say Reed Brodsky and Michael Nadler at Gibson Dunn.

  • Tips For Public Co. Financial Controls Amid Growing Scrutiny

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    As economic turmoil and the availability of stimulus funds promise heightened regulatory scrutiny, public companies should weigh operational changes resulting from the pandemic when reviewing the effectiveness of legacy internal accounting and disclosure controls, say Scott Kimpel and Matthew Bosher at Hunton.

  • Lessons From Steven Seagal On Digital Asset Endorsements

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    The U.S. Securities and Exchange Commission's recent enforcement action against actor Steven Seagal over his paid promotion of Bitcoiin2Gen's initial coin offering is a stark reminder that celebrities can easily run afoul of securities regulations that are designed to protect investors, says Michael Buffardi at FTI Consulting.

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