Securities

  • May 26, 2021

    Robinhood Urges Judge To Halt Mass. Regulator's 'Overreach'

    Robinhood LLC asked a judge Wednesday to stop Massachusetts' securities chief from going ahead with an administrative proceeding aimed at barring the trading platform from operating in the state, calling it an "extraordinary overreach of his powers."

  • May 26, 2021

    Novel Veil-Piercing Claim Kept Alive In Chancery Debt Suit

    In a first of its kind ruling, a Delaware vice chancellor has refused to dismiss a stockholder suit seeking regular and "reverse" corporate veil piercing against Exela Technologies Inc. and its subsidiaries in order to collect on a nearly $58 million-plus-interest post-merger stock appraisal award.

  • May 26, 2021

    ESG Trend Fuels Climate Activists' Victory At Exxon Meeting

    Several developments this proxy season are showing general counsel and their companies that shareholders are serious about environmental, social and governance issues, and ExxonMobil Corp. on Wednesday felt the power of those demands.

  • May 25, 2021

    FINRA Says Wolverine Failed To Disclose Order Flow Rebates

    The Financial Industry Regulatory Authority tagged broker-dealer Wolverine Execution Services, LLC with a $170,000 fine for a string of alleged trade execution and order routing violations, an agreement conditioned on related settlements between the firm and several major stock exchanges.

  • May 25, 2021

    GreenSky Investors Strike $27.5M Deal Over IPO Disclosures

    GreenSky investors have reached a $27.5 million settlement deal over allegations the lending technology company made misleading statements ahead of its initial public offering, according to documents filed in New York federal court.

  • May 25, 2021

    Lordstown Execs Hit With Derivative Suit Over Preorders

    Investors in electric truck company Lordstown Motors Corp. have hit company executives and directors with a derivative suit in Delaware federal court, saying they were misled with false promises of preorders of a truck soon to start commercial production as the company went public through a SPAC merger.

  • May 25, 2021

    9th Circ. Tesla Ruling Gets Aerospace Co. Out Of Investor Suit

    An Oregon federal magistrate judge cited the Ninth Circuit's recent rejection of an investor suit against Tesla Inc. on Monday when she reversed her previous decision not to grant aerospace parts manufacturer Precision Castparts Corp. a full victory over similar securities claims.

  • May 25, 2021

    Warren To Fed's Quarles: Financial System 'Safer' Without You

    Sen. Elizabeth Warren, D-Mass., on Tuesday told the Federal Reserve's Randal Quarles that she hopes the White House replaces him when his term as the central bank's vice chair for supervision runs out later this year, capping a testy exchange over the Archegos Capital Management meltdown.

  • May 25, 2021

    Chancery OKs $15M Towers-Watson Merger Claim Settlement

    Towers Watson & Co. shareholders secured the final, $15 million portion Tuesday of a combined $90 million state and federal settlement of challenges to an $18 billion merger, with a Delaware Chancery Court ruling that included a $3.75 million fee for Kessler Topaz Meltzer & Check LLP and Grant & Eisenhofer PA.

  • May 25, 2021

    Investor Accuses Austin Real Estate Mogul Of Fraud

    A Colorado man has accused Austin real estate investor Nate Paul of swindling him out of at least $1.3 million, claiming in a Texas state court lawsuit that Paul misled him into believing multiple real estate projects would be profitable.

  • May 25, 2021

    SEC Eyes Feds' Bid To Force Ex-Nomura Trader To Pay $1.2M

    The outcome of prosecutors' effort to force ex-Nomura trader Michael Gramins to pay $1.2 million for allegedly scheming to trick real estate bond buyers will impact how securities regulators seek to resolve their companion case, a Manhattan federal judge was told Tuesday.

  • May 24, 2021

    CBD Co. Seeks To Trim Claims Over Failed Biz Transaction

    CBD company India Globalization Capital has urged a New York federal judge to ax most claims sprung by Apogee Financial Investments blaming the cannabinoid research company for the downfall of a brokerage it bought, arguing that it never owed the investment company any fiduciary duty.

  • May 24, 2021

    Feds Want Multi-Year Sentences For Ex-Deutsche Traders

    Federal prosecutors have recommended sentences between four and six years behind bars for two former Deutsche Bank traders convicted of spoofing the precious metals market, telling an Illinois federal court that their scheme "undermined the public's confidence in the integrity of the financial markets."

  • May 24, 2021

    Federal Toss Won't Stop NVIDIA Suit In Del., Chancellor Rules

    A federal judge's dismissal of an NVIDIA Corp. stockholder securities action in California won't change a Chancery Court post-trial order in February for NVIDIA to hand over of a limited set of records to stockholders probing the same disputed events, Delaware's chancellor ruled on Monday.

  • May 24, 2021

    SEC's Lee Rebukes 'Myths' Related To ESG Disclosures

    As the U.S. Securities and Exchange Commission eyes the development of a potential new framework requiring the disclosure of environmental, social and governance-related risks, Commissioner Allison Herren Lee on Monday rebuked critics who she said mistakenly claim that existing regulations already have this covered. 

  • May 24, 2021

    Oracle, Ellison Dodge Investor Suit Over Board Diversity

    A California federal magistrate judge ruled that a shareholder derivative action against Oracle Corp. failed to show that board members and billionaire co-founder Larry Ellison misled the public about Oracle's diversity commitments.

  • May 24, 2021

    Highland Capital Accused Of Undervaluing Steel Maker

    A Highland Capital Management LP shareholder has accused the bankrupt Dallas-based investment firm in Texas federal court of selling a steel products manufacturer for $10 million below the company's value in order to pay off the firm's own creditors.

  • May 24, 2021

    MiMedx Not A Victim, Can't Get $40M Restitution In Fraud Suit

    MiMedx Group Inc. can't get $40 million in restitution from two former executives who were convicted of a scheme to dupe the company's investors, a New York federal judge ruled Sunday, finding that the biologics company isn't a victim under the statute in question.

  • May 24, 2021

    Feds Say Ex-Chadian Diplomats Took Bribes For Oil Contract

    Chad's former ambassador to the U.S. and several associates were hit with money laundering and corruption charges for taking $2 million in bribes and shares in an energy company in exchange for lucrative oil rights, prosecutors said in court documents unsealed in D.C. federal court.

  • May 24, 2021

    Fed's Brainard Says Digital Dollar Could Yield Safety Benefits

    Federal Reserve Gov. Lael Brainard on Monday said that a central bank-issued digital dollar could provide a safer alternative to privately created digital currencies, saying regulatory collaboration is needed to tackle potential risks from the novel asset class.

  • May 24, 2021

    Execs' Engine Revenue Scheme Inflated Books, Feds Say

    The chief executive for an Illinois-based alternative energy engine maker and two other employees unlawfully inflated revenues through a scheme that caused company books to reflect money it hadn't yet collected, federal prosecutors asserted in a bench trial that began Monday.

  • May 24, 2021

    Regs Shouldn't Favor SPACs, Committee Told

    Lawmakers should ensure equal regulatory treatment applies to various ways companies are choosing to go public nowadays, several elected officials and panelists said at a congressional hearing Monday, focusing mostly on special purpose acquisition companies and traditional initial public offerings.

  • May 24, 2021

    Ex-JPM Trader Tells 2nd Circ. Courts Decide Antitrust Rule

    A former JPMorgan Chase & Co. foreign currency trader convicted of price-fixing told the Second Circuit that a lower bar for conviction should not be applied to his criminal case just because the government says so.

  • May 24, 2021

    Investors Want Class Cert. In GE Stock Fraud Suit

    Investors alleging General Electric's stock price plummeted after shareholders realized the company fraudulently concealed cash flow problems urged a New York federal court to certify a class of thousands of stockholders that bought in when the share price was supposedly artificially inflated.

  • May 24, 2021

    Investment Pro Who Fled U.S. To Dial Up NYC Trial From India

    An investment pro wanted by federal prosecutors in Boston on insider trading charges will stand trial in New York City remotely from India starting Wednesday so that a judge can assess how much in damages he owes a former client that accuses him of stealing $11 million.

Expert Analysis

  • NY Settlement Highlights Growing Risk Of FCA Tax Claims

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    Sandell Asset Management's $105 million settlement with the New York attorney general for alleged tax evasion is likely to encourage additional states to amend their false claims statutes to allow tax claims — and motivate more corporate competitors to assert these claims as whistleblowers, say attorneys at Morgan Lewis.

  • For Law Firm Digital Marketing, Less Is Sometimes More

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    Attorneys and law firms often look to cast the widest net possible and maximize online impressions, when they should be focusing their digital marketing efforts on fewer, better-qualified prospects, says Guy Alvarez at Good2BSocial.

  • Gambit To Block Trump's Midnight Regulations Will Likely Fail

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    The advocacy group Public Citizen has suggested that many Trump administration regulations with an effective date prior to Jan. 20 are subject to President Joe Biden's freeze order because they were technically still pending when Biden took office — but this argument is unlikely to withstand judicial scrutiny, says Haynes and Boone's Joseph Matal, former acting director of the U.S. Patent and Trademark Office.

  • A Rare Selective Disclosure Enforcement Action From SEC

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    Private fund managers should consider reevaluating their practices when meeting with public company executives in light of the U.S. Securities and Exchange Commission's recent action against AT&T, one of the very few enforcement cases brought under Regulation Fair Disclosure since its enactment in 2000, say Craig Warkol and Charles Clark at Schulte Roth.

  • Climate Change Plaintiffs Are Getting Creative

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    The recent efforts by plaintiffs in Juliana v. U.S. to amend their complaint against the U.S. government for allegedly violating their right to a safe climate are an example of how climate change disputes have evolved beyond damages claims, to new and diverse classes of action against governments and companies in courts around the world, say attorneys at White & Case.

  • Prepare To Meet New Fed Expectations On Effective Boards

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    Large financial institutions should take a close look at how their boards are operating, following recent guidance from the Federal Reserve Board that should make compliance more straightforward and may provide a vehicle for the Fed to link board ineffectiveness to unsafe or unsound practices, or other violations of law, say attorneys at Covington.

  • Opinion

    A State Win In Bank Loan Suit Would Hurt Access To Credit

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    In California v. Office of the Comptroller of the Currency, a victory for state regulators arguing for the right to prohibit banks from acquiring loans made in other states that violate local interest rate caps will make it harder and more expensive for consumers to get loans as secondary credit markets recede, says William MacLeod at Kelley Drye.

  • Calif. Bill Signals Climate Disclosure Requirement Trend

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    A recently proposed California Senate bill, which would require large companies to report and mitigate their greenhouse gas emissions, heralds a trend at the state and federal levels toward requiring increased climate risk disclosures — so businesses should begin proactively assessing and reducing their emissions now, say attorneys at DLA Piper.

  • Strategies For Fighting Back Against A Rambo Litigator

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    If your opposing counsel is a so-called Rambo litigator, there are ways to turn their scorched-earth litigation tactics and ad hominem attacks into assets that favor your client, says Margeaux Thomas at Thomas Law.

  • SEC Data Transfer Safe Harbor Raises Questions For UK Cos.

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    The U.K. Information Commissioner's Office recently authorized British companies to transfer U.K. subjects’ personal data to facilitate U.S. Securities and Exchange Commission investigations, but companies need more detail on how to invoke the safe harbor or handle EU data subjects, say attorneys at Davis Polk.

  • Rebuttal

    GameStop Frenzy No Reason To Jettison Securities Theory

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    A recent Law360 guest article's challenge to well-established finance theory and securities case law due to the trading volatility and apparent mispricing of GameStop stock is misguided and easily refuted, says Narinder Walia at Crowninshield Financial.

  • Biden Climate Plan Ushers In New Compliance Considerations

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    As President Joe Biden's ambitious environmental framework takes shape, potential changes to existing regulations and enforcement of those rules raise questions regarding how companies should address and disclose environmental concerns, say Peter Kelso and Drew Howard at Roux Associates.

  • Key Takeaways From FinCEN's COVID Health Fraud Alert

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    Financial institutions should consider seven best practices to fine-tune compliance programs in light of the Financial Crimes Enforcement Network’s recent advisory highlighting red flags that may signal pandemic-related health care fraud, say John Cunningham and Karima Tawfik at Buchanan Ingersoll.

  • Translating SEC Exam Priorities Into Compliance Action Items

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    The U.S. Securities and Exchange Commission's recently announced examination priorities for 2021 — which include turnkey asset management platforms, remote work operations, technology and disaster continuity plans — give companies a road map for recalibrating compliance programs for the new administration, say attorneys at Lowenstein Sandler.

  • Opinion

    1 Year Into Pandemic, It's Time To Rethink Law Firm Billing

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    The particular tasks for which a law firm client can expect to be billed have become unpredictable in the era of COVID-19, making flat fees and other alternative fee arrangements more attractive for both in-house and outside counsel, says Jessica Hodkinson at Panasonic.

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