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Securities

  • June 7, 2019

    Construction Co. Execs Defend ID Theft Claim Against Cousin

    In the latest development in a years-long family spat over the value of their businesses' shares, two executives of a road construction company told a Wisconsin federal court that their counterclaim accusing the CEO's cousin of identity theft to obtain financial records is on solid ground.

  • June 7, 2019

    Casino Investor Says No Skadden Conflict In $856M Ch. 11

    A New York bankruptcy court should not nix Skadden Arps Slate Meagher & Flom LLP from representing a Silver Point Capital LP-owned holding company facing an $856 million debt, as the law firm would not be conflicted by its counseling of Silver Point on other matters, the debtors filing for Chapter 11 argued Friday.

  • June 7, 2019

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

    The past week has seen administrators for London Capital & Finance sue the trustees of the failed bond firm, the owner of an oil tanker hit dozens of underwriters with insurance claims and a digital banking upstart take on NatWest. Here, Law360 looks at those and other new claims in the U.K.

  • June 7, 2019

    Attys Awarded $30M Of Investor's $108M Deal With Orbital

    Counsel for investors in Orbital ATK Inc. will receive 28%, about $30.2 million, of a $108 million settlement that resolved allegations Orbital misled the public about substantial losses it took on an Army ammunition deal, a Virginia federal judge ruled Friday.

  • June 7, 2019

    Film Producer Convicted Of Fraud Loses Indemnification Bid

    A California federal judge said Thursday that a film producer convicted of fraud cannot get indemnification for the millions of dollars he's had to pay in a settlement with one spurned investor.

  • June 7, 2019

    2nd Circ. Won't Revive Ex-SunEdison Employees' ERISA Suit

    The Second Circuit refused on Friday to revive a suit claiming SunEdison Inc. executives unlawfully allowed workers to keep investing their retirement savings in company stock ahead of the company's 2016 bankruptcy, saying the SunEdison suit is different from another Employee Retirement Income Security Act case the U.S. Supreme Court recently agreed to review.

  • June 7, 2019

    Investors Say $190M Pizza Deal Gave Them Too Small A Slice

    Pizza chain operator Papa Murphy was hit with a putative class action in Washington federal court on Friday by investors alleging the company misrepresented its financial projections ahead of a $190 million merger, shorting them on their slice of the deal.

  • June 7, 2019

    Feds Send Clear Message With Flurry Of Fintech Cases

    The past 12 months have seen the SEC show leniency in its first-ever settlement over an unregistered initial coin offering, FinCEN determine that peer-to-peer cryptocurrency exchangers are money transmitters subject to banking laws, and prosecutors target a massive $4 billion crypto pyramid scheme.

  • June 7, 2019

    Oracle Chancery Suit Stays Frozen For Settlement Talks

    A Delaware Chancery judge agreed to extend a pause in litigation Friday in a derivative suit over Oracle's $9.3 billion purchase of NetSuite, saying the stay would allow for scheduled mediation and settlement negotiations to take place this summer.

  • June 7, 2019

    Fake CBD Drink Sent Co.'s Stock Skyrocketing, Suit Says

    An investor in a company trying to break into the cannabis market filed a shareholder derivative suit Thursday in Maryland federal court saying executives promoted the development of an allegedly nonexistent CBD energy drink, boosting the company's stock price 1,000% before its market value plummeted nearly $400 million.

  • June 7, 2019

    Policing Cryptocurrency Ads: 4 Things You Should Know

    The growing consumer interest in cryptocurrency has attracted a fair amount of fraud, inspiring regulators and tech platforms alike to take a stab at cracking down on deceptive advertising and other shady practices in the industry.

  • June 7, 2019

    LendingClub Pushes Back At Investors' Hidden-Fee Suit

    LendingClub hit back at investors seeking to keep alive their proposed class action accusing the peer-to-peer lender of fraudulently advertising “no hidden fees” to borrowers, arguing in California federal court Thursday that fraud claims cannot be based on unproven allegations in a Federal Trade Commission enforcement action.

  • June 7, 2019

    Feds Seek 6.5 Years In Prison For Fake SEC Official

    Federal prosecutors in Boston late Thursday recommended 78 months in prison for a Pennsylvania man who pled guilty to conspiring with others to shake down investors by pretending to be U.S. Securities and Exchange Commission officials. 

  • June 6, 2019

    Son Uncorks Suit Over Liquor Co. CEO Dad's 'Misuse' Of Cash

    A father-son battle was uncorked Thursday in Delaware Chancery Court over claims that alcohol manufacturer Jacquin's CEO Norton J. "Sky" Cooper has misused millions of dollars in corporate funds for his own personal benefit and side projects.

  • June 6, 2019

    Platinum Jury Hears Of Exec's Dread, As Feds Wrap Up Case

    Brooklyn federal prosecutors on Thursday neared the end of their securities fraud case against three former top executives of Platinum Partners, and jurors saw emails depicting trepidation inside the now-defunct hedge fund as it tried in vain to get out of a liquidity crisis.

  • June 6, 2019

    NY Appeals Court Won't Revive Brazil Investment Profits Suit

    A New York state appeals court declined Thursday to revive a former Citibank employee's long-running lawsuit seeking hundreds of millions of dollars in profit share he claimed he was contractually owed from a private equity investment program in Brazil he helped design in the late 1990s.

  • June 6, 2019

    Woodbridge CEO's $1.3B Ponzi Trial Delayed To Late Summer

    A Florida federal judge on Thursday allowed the start date for the criminal trial of former Woodbridge Group owner and CEO Robert H. Shapiro over an alleged $1.3 billion Ponzi scheme to be pushed off from next week to late summer, but denied the government's request to delay the case until February.

  • June 6, 2019

    Action-Packed 'No Action' Letters: Nontransparent ETFs

    A new kind of exchange-traded fund that was 10 years in the making crossed the finish line at the U.S. Securities and Exchange Commission last month, topping the list of "no-action" and other exemptive relief decisions handed down by financial regulators in May.

  • June 6, 2019

    Accountant Pleads Guilty To Role In $550M Ponzi Scheme

    A third man implicated in a $550 million Ponzi scheme that duped investors including attorneys, athletes and bankers by promising high returns on consumer debt pled guilty to three of 14 charges in Maryland federal court, the U.S. Department of Justice announced Thursday.

  • June 6, 2019

    BGC Asks Chancery To Toss 'Empty' Suit Over $875M Deal

    Attorneys for BGC Partners Inc. and Cantor Fitzgerald on Thursday branded as "empty speculation" a Delaware Chancery Court lawsuit alleging that a special director committee caved to the interests of controlling investor Howard Lutnick in an $875 million deal.

  • June 6, 2019

    AmeriGas Hit With Investor Action Over $2.4B UGI Deal

    Investors in AmeriGas Propane Holdings filed suit Wednesday in Delaware federal court to stop a planned $2.4 billion merger with subsidiary UGI, saying a registration document lacks details about other potential offers, how negotiations evolved, and how efficiently and fairly internal resources would be integrated.

  • June 6, 2019

    Kirkland Nabs $57M Fees In 'Hard-Fought' Toys R Us Ch. 11

    A Virginia bankruptcy judge on Thursday approved a $57.3 million fees and expenses reward to Kirkland & Ellis LLP for shepherding retail chain Toys R Us through what the law firm called a "hard-fought" Chapter 11 liquidation.

  • June 6, 2019

    SEC's $60M Deal Over Web Marketing Scam Gets Court OK

    A Florida federal judge has entered final judgment on a pair of settlements that require a group of internet marketers to pay $60 million connected to a U.S. Securities and Exchange Commission suit accusing them of duping at least 75,000 investors out of millions with videos that promised quick profits.

  • June 6, 2019

    Profit Was Reverse Engineered At Fallen Fund, Jury Hears

    Former Premium Point Investments analyst Ashish Dole testified Thursday that CEO Anilesh "Neil" Ahuja led a plot to "reverse engineer" profits in what prosecutors call a $100 million scheme to game the value of mortgage-debt bundles at the now-bankrupt hedge fund.

  • June 6, 2019

    Cryptocurrency In For More Anti-Money Laundering Scrutiny

    Recent guidance from the U.S. Treasury Department has made it clearer than ever that the agency takes a broad view of its authority to regulate cryptocurrency businesses, signaling the potential for more civil anti-money laundering enforcement in the space while prosecutors continue to bring criminal cases.

Expert Analysis

  • Q&A

    A Chat With Cleary Chief Talent Officer Hy Pomerance

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    In this monthly series, legal recruiting experts from Major Lindsey & Africa interview management from top law firms about the increasingly competitive business environment. Here, Amanda Brady and Dustin Laws talk with Hy Pomerance, chief talent officer of Cleary.

  • What To Expect When You’re Expecting A Compliance Monitor

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    Out of three corporate Foreign Corrupt Practices Act enforcement actions in the first quarter of 2019, two included agreements to retain an independent compliance monitor. Yuliya Kuchma of Baker McKenzie explains how companies can make the most of a monitorship experience.

  • What SEC Exam Trends Mean For Asset Managers

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    Recently released statistics show that the U.S. Securities and Exchange Commission's Office of Compliance Inspections and Examinations has been identifying fewer deficiencies and making fewer enforcement referrals, but industry players should not take these numbers as a reason to become complacent, say attorneys at Debevoise & Plimpton.

  • Rebuttal

    Forced Arbitration Is A Far Worse 'Product' Than Jury Trials

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    Jury trials are not dying because arbitration is a “better product,” as alleged in a recent Law360 guest article, but because corporations have rigged the system through forced arbitration to ensure they cannot be held accountable before a judge or jury, say attorneys at Hagens Berman.

  • Guest Feature

    Preet Bharara On The Human Factor In The Justice System

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    A key theme in Preet Bharara's new book is the enormous role the human element plays in the administration of justice. The former U.S. attorney for the Southern District of New York discussed this theme, among other topics, in a recent conversation with White and Williams attorney Randy Maniloff.

  • Emulex Highlights Greater Scrutiny Of Issues At High Court

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    A brief review of the procedural history of Emulex v. Varjabedian, and the circumstances giving rise to the U.S. Supreme Court’s abrupt dismissal of the case Tuesday, may provide useful insights for future petitioners seeking the court’s review, say attorneys with Labaton Sucharow.

  • The M&A Aftermath Of High Court's Emulex Punt

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    The U.S. Supreme Court's decision Tuesday to dismiss Emulex v. Varjabedian leaves behind a great deal of confusion in the federal securities laws governing corporate mergers and acquisitions, and there are at least three important consequences, says Lyle Roberts of Shearman & Sterling.

  • In SEC's Remediation Model, Hard Choices For ICO Issuers

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    Recent guidance from the U.S. Securities and Exchange Commission may help issuers avoid having their future initial coin offerings categorized as unregistered securities offerings. But for past ICOs, issuers must rely on the SEC's remediation process, and should consider two key questions before proceeding, says Kayvan Sadeghi of Schiff Hardin.

  • A Step Toward Consistent State Laws For Crypto Cos.

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    The Conference of State Bank Supervisors' recently announced suggestions to harmonize state law frameworks for nonbank fintech companies could be particularly beneficial to cryptocurrency companies, for whom the applicable regulatory landscape is especially uncertain, say attorneys at Cleary Gottlieb.

  • Rebuttal

    Jury Trials, Though In Decline, Are Well Worth Preserving

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    In a recent Law360 guest article, the author applauded the disappearance of jury trials as an inefficient, costly mechanism, but in doing so he overlooked the greater value of jury trials for our justice system, says Stephen Susman, executive director of the Civil Jury Project at NYU School of Law.

  • A Broader View Of The US Supreme Court Bar

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    During the past 15 years, three widely read articles bolstered by starstruck media have promulgated the incorrect perception — sorely in need of revision — that the U.S. Supreme Court bar is limited to a handful of elite lawyers, says Lawrence Ebner of Capital Appellate Advocacy.

  • Ex-Jumio CEO Case Shows SEC Is Watching Private Cos.

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    The U.S. Securities and Exchange Commission recently settled with the founder of Jumio for his misstatement of financial results to inflate the value of his company shares. This case is an example of what may be in store if an economic downturn hits the current stable of unicorns, say Joshua Newville and Brian Hooven at Proskauer.

  • How Treaties Protect Investors When Clean Energy Regs Shift

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    When changes in clean energy regulations lead to investor disputes, domestic companies may be limited to challenging regulatory changes in local courts, but investors from abroad can often seek remedies under international law, say attorneys at WilmerHale.

  • New FinCEN Action Is A Warning To P2P Crypto Exchangers

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    The Financial Crimes Enforcement Network recently assessed its first civil penalty against a peer-to-peer exchanger of convertible virtual currency, indicating that virtual currency exchanges of any size that fail to comply with the Bank Secrecy Act do so at their own peril, say Wade Thomson and E.K. McWilliams of Jenner & Block.

  • Opinion

    Post-Lucia, It’s Deja Vu With The SEC

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    Given last year's U.S. Supreme Court ruling that the U.S. Securities and Exchange Commission administrative law judge who tried Raymond Lucia's case had not been constitutionally appointed, Lucia should not be facing an SEC ALJ again on remand, says Joel Nolette of Mintz.

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