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Securities

  • June 13, 2019

    Credit Suisse Asks Appeals Court To Rein In $1B RMBS Trial

    Two Credit Suisse Group AG units on Thursday asked a New York appeals court to undo a lower court’s ruling in favor of the trustee for four pools of toxic residential mortgage-backed securities that allegedly caused over $1 billion in losses, saying it wrongly interpreted a sole remedy provision in the underlying contracts.

  • June 13, 2019

    Prosecutors Add More Execs, Claims In Abraaj Criminal Suit

    A New York federal judge unsealed an indictment Wednesday adding three Abraaj Group executives and more than a dozen new claims to a lawsuit over what prosecutors called the "largest collapse of a private equity firm in history."

  • June 13, 2019

    SEC Set To Tackle Shareholder Proposal, Proxy Reg Revisions

    The U.S. Securities and Exchange Commission is considering changing the thresholds for submitting shareholder proposals and amending regulations that could affect proxy firms, potentially tackling two hot-button corporate governance topics that some lawyers say are ripe for action.

  • June 13, 2019

    Muzik Investor Seeks Records To Investigate Stock Value

    A Muzik Inc. stockholder filed a complaint Thursday in the Delaware Chancery Court seeking access to records from the wearable audio technology company so it can determine the value of its shares after notes it previously held were "unilaterally" converted into equity.

  • June 13, 2019

    Cybersecurity Firm's Adviser Ducks Investor Fraud Suit

    A principal adviser to a New Jersey-based cybersecurity firm has escaped a lawsuit alleging he and the company’s CEO duped investors into providing $1.25 million in financing to the business, with a federal judge ruling the complaint failed to articulate the adviser's purported lies.

  • June 13, 2019

    Crypto Co. Investors Seek Class Certification In Fraud Suit

    Investors in the now-defunct cryptocurrency company Centra Tech urged a Florida federal court to certify their class in a suit accusing Centra of faking licensing agreements with major credit card companies to solicit investment in its $32 million initial coin offering.

  • June 13, 2019

    Ex-Theranos Execs' Bid For Docs Is Unreasonable, Feds Say

    Prosecutors urged a judge on Wednesday to reject a bid by two former Theranos executives to make prosecutors go hunting through other agencies' files, saying that they’ve already persuaded the agencies to help the pair and that a court order on the issue would set a bad precedent.

  • June 13, 2019

    DLA Piper Snags Finance Partner From Morrison & Foerster

    DLA Piper added a new finance partner to its Boston office, welcoming an attorney from Morrison & Foerster LLP who aims to grow the finance practice in the Hub for the international firm.

  • June 13, 2019

    Fla. Law Firm Created Negligent Transaction Docs, Suit Says

    A Florida law firm and two of its attorneys cost investment firm L2 Capital LLC $4 million through negligently prepared transactional documents with a digital payment services company, along with more money lost in transactions with other businesses, according to a legal malpractice suit filed in federal court Thursday.

  • June 13, 2019

    Scott & Scott, Grant & Eisenhofer Lead Weight Watchers Suit

    A New York federal judge Wednesday named Scott & Scott Attorneys at Law LLP and Grant & Eisenhofer PA as co-lead counsel to represent stockholders who accuse Weight Watchers in a consolidated proposed class action of bragging about rising subscriber numbers when new membership was actually falling.

  • June 13, 2019

    SEC Seeks Court Approval Of $1.5M Brokerage Fraud Deal

    The U.S. Securities and Exchange Commission told a Pennsylvania federal court Thursday it reached a roughly $1.5 million deal with the former top brass of now-defunct Global Transition Solutions, urging the court to close the book on the dispute.

  • June 13, 2019

    Crooked Fund CEO Demoted Me, Finance Pro Tells Jury

    A career finance pro told Manhattan jurors Thursday that the CEO of Premium Point Investments became angry and demoted him when he complained about what he called rampant overvaluing of mortgage-debt assets at the now-bankrupt hedge fund.

  • June 13, 2019

    Security Tech Co. Inks $595K Deal To End Stock-Drop Suit

    Security technology company Global Digital Solutions Inc. will shell out $595,000 to resolve claims that it artificially inflated its essentially worthless stock in what investors called an "extraordinary result" in New Jersey federal court Wednesday.

  • June 12, 2019

    Wall St. Cop Stakes Its Turf In 1st Crowdfunding Decision

    The Financial Industry Regulatory Authority recently flexed its power to police crowdfunding websites with a panel's first litigated enforcement action against a funding portal, a move that laid out novel interpretations of the organization’s rules and set up a possible countersuit.  

  • June 12, 2019

    Bernstein Litowitz To Lead Branded Goods Co. Investor Suit

    A Wisconsin federal judge on Wednesday named Bernstein Litowitz as lead counsel and Rathje & Woodward as liaison counsel for an investor suit accusing branded consumer products company Spectrum Brands Legacy Inc. of artificially inflating stock prices.

  • June 12, 2019

    Richards Layton Malpractice Suit Not Time-Barred, ISN Says

    ISN Software Co. told the Delaware Supreme Court a lower court was wrong to dismiss its malpractice claims against Richards Layton & Finger PA because the company rightly brought its claim only after suffering actual damages as a result of purported bad legal advice.

  • June 12, 2019

    HK Dings Manufacturer, Citing Financial Reporting Issues

    The Hong Kong Stock Exchange hit a consumer products manufacturer with a censure Wednesday, finding the company published annual results without confirming the accuracy of their contents with an auditor and missed a deadline for the release of other financial information.

  • June 12, 2019

    Atty Cops Plea In Extortion Case Tied To Pump-And-Dump

    A Long Island personal injury attorney on Wednesday admitted to taking part in what prosecutors say was a scheme by a convicted securities fraudster to try to extort $7 million from a former co-defendant and launder the funds through a religious charity. 

  • June 12, 2019

    Triangle Petroleum Makes Case For Ch. 11 Debt-Equity Swap

    Midstream oil and gas services company Triangle Petroleum urged the Delaware bankruptcy court on Wednesday to sign off on its Chapter 11 debt-for-equity swap that would wipe more than $150 million of secured obligations from its balance sheet two years after its exploration subsidiary went through bankruptcy.

  • June 12, 2019

    FINRA Suspends Ex-Merrill Adviser Over Crypto Mining Plans

    A former financial adviser for Merrill Lynch has consented to the Financial Industry Regulatory Authority issuing him a one-month suspension for allegedly starting a cryptocurrency mining business without telling his employer.

  • June 12, 2019

    SEC Leaving Cryptos In An 'Awkward' Place, Ripple Exec Says

    Ripple's chief technology officer said Wednesday that lack of clarity from the U.S. Securities and Exchange Commission has left the digital payments company in an "awkward situation," as the agency just last week launched a highly anticipated action against Kik.

  • June 12, 2019

    4th Circ. Affirms Ex-DNC Chair's Win In Visa Scheme Suit

    The Fourth Circuit refused Wednesday to revive a suit by Chinese investors who say they were swindled out of investments and green cards by the former head of the Democratic National Committee and Hillary Clinton’s brother, saying their failure to translate or review key deal documents precludes their claims. 

  • June 12, 2019

    CBS Execs Nabbed $200M As Scandals Brewed, Investors Say

    CBS and Les Moonves must face claims they committed securities fraud by touting their workplace ethics as sexual assault allegations piled up around the former CEO so that insiders could pocket over $200 million before CBS stock took a nose dive, investors insisted.

  • June 12, 2019

    Elk Petroleum Lender Wants Ch. 11 Trustee To Take Over Case

    A secured lender in Elk Petroleum Inc.'s Delaware Chapter 11 moved to appoint an independent trustee to take control of the bankruptcy late Tuesday after branding the oil and gas producer's proposed counsel and chief restructuring officer too conflicted to serve.

  • June 12, 2019

    Milberg, Convicted Ex-Partner End $15M Reorganization Fight

    Milberg LLP has struck a confidential deal in a $15 million case brought in New York state court by an ex-partner and convicted felon who alleged his former firm reorganized to deprive him of payments he was owed.

Expert Analysis

  • 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.

  • New Chancery Guidance On Books And Records Law

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    The Delaware Court of Chancery’s recent decisions in Schnatter, Tempur-Sealy and CHC Investments further delineate the metes and bounds of a stockholder's right to obtain a company's books and records, say attorneys with Winston & Strawn.

  • Justices Could Trigger Sea Change For Tender Offer Suits

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    U.S. Supreme Court oral arguments Monday in Emulex v. Varjabedian — a case that could alter the landscape of tender offer litigation under Section 14(e) of the Securities Exchange Act — confirmed the potentially significant nature of the forthcoming decision, as well as the justices’ sharp divide on the issues, say attorneys with Ropes & Gray.

  • Opinion

    Jury Trials Are In Decline For Good Reason

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    A recent Law360 article reported on federal judges bemoaning jury trials' nationwide decline, but these laments are unfounded as jury trials have been replaced by better alternatives, says J.B. Heaton of J.B. Heaton Research.

  • Chancery Decision Continues Trend Of Lower Appraisal Prices

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    Silver Spur v. Trussway is the latest appraisal case in which the Delaware Chancery Court relied on the discounted cash flow methodology and reached a similar result to the market-based valuation. There is now a greater risk of appraisal results being close to or below the merger price, say attorneys at Fried Frank.

  • New SEC Staff Guidance Could Leave Mutual Funds In A Bind

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    Recent U.S. Securities and Exchange Commission staff guidance asked mutual funds to postpone the effective date of their registration statements if they are unable to respond to staff comments in a timely fashion. But complying with such a request could leave a fund without an effective registration statement, say Gretchen Passe Roin and Seth Davis of WilmerHale.

  • Few Avenues To Protection For Foreign FCPA Whistleblowers

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    The Ninth Circuit's recent decision in Wadler v. Bio-Rad falls within a larger pattern of federal courts interpreting whistleblower protection statutes narrowly — especially when employees raise allegations about international business and potential Foreign Corrupt Practices Act violations abroad, say Daniel Wendt and Amelia Hairston-Porter of Miller & Chevalier.

  • Series

    Why I Became A Lawyer: A Circuitous Path To The Law

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    Instead of going to college after high school, I followed in my father’s footsteps and became an electrician. Later I became an electrical engineer, and then an IP attorney. Every twist and turn along the way has made me a better lawyer, says Joseph Maraia of Burns & Levinson.

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