Securities

  • June 17, 2020

    Reed Smith Reps Perrigo's $50M Investment In CBD Supplier

    Perrigo Company PLC announced Wednesday that it closed a Reed Smith LLP-steered deal to acquire a minority equity stake in a CBD supplier for $50 million, as well as an agreement with the supplier that will allow the Irish pharmaceutical company to launch CBD products.

  • June 17, 2020

    Biotech Co. Investors' FDA Convo Suit Survives Dismissal Bid

    A Manhattan federal judge on Tuesday pared down a proposed class action alleging biotech company Acer Therapeutics and two of its executives misrepresented its conversations with the U.S. Food and Drug Administration, which allegedly hurt Acer investors after the regulator rejected a new drug application the company filed.

  • June 17, 2020

    Ex-Mt. Gox CEO Can't Duck Bitcoin Exchange Fraud Suit

    An Illinois federal judge on Tuesday denied a request from the former CEO of the now-defunct Mt. Gox bitcoin exchange to rule in his favor in a yearslong suit over the company's demise because the customer suing him switched legal theories midcase.

  • June 17, 2020

    Real Estate Rumors: Rialto, Inter Miami, Baywood Hotels

    Rialto Capital Advisors has reportedly provided some relief for the borrower of $300 million CMBS debt for a Florida hotel, Inter Miami CF's owners are said to be eyeing a massive mixed-use project near Miami International Airport, and Baywood Hotels has reportedly landed a $31.3 million loan for a Miami project.

  • June 17, 2020

    Hertz Trading Halted After SEC Balks At Ch. 11 Stock Sales

    Trading in shares of bankrupt Hertz Global Holdings Inc. halted Wednesday after U.S. Securities and Exchange Commission Chairman Jay Clayton noted during a televised interview that agency staffers had issues with the car rental company's plans to sell up to $1 billion in stock while in Chapter 11.

  • June 17, 2020

    Finance System Heavily Exposed To Climate Risk, ECB Warns

    European Union banks rely heavily on carbon industries and will face huge losses if the sector moves away from investing in companies that create pollution, the bloc's central bank warned on Wednesday as it urged lenders to prepare for climate risks.

  • June 16, 2020

    After Winning Supreme Court Battle, Adviser Settles With SEC

    A former investment adviser who successfully argued before the U.S. Supreme Court that the administrative law judge in his U.S. Securities and Exchange Commission proceedings was appointed unconstitutionally has agreed to pay $25,000 to settle his case with the SEC, ending eight years of litigation, according to Tuesday SEC filings.

  • June 16, 2020

    Axed Morgan Stanley Diversity Head Alleges 'Systemic' Bias

    Morgan Stanley's former chief of diversity sued the investment firm Tuesday in Brooklyn federal court, claiming her efforts to advocate for employees and job candidates of color were stymied and she was eventually fired for complaining about racial inequality.

  • June 16, 2020

    4 Firms Vie To Lead Cannabis Co. Stock Drop Suit

    Four firms, including Pomerantz LLP and Glancy Prongay & Murray LLP, have placed bids to represent iAnthus Capital Holdings Inc. investors over claims the cannabis company tried to use the coronavirus pandemic to explain away a missed $4.4 million interest payment.

  • June 16, 2020

    Atty Accused Of Microcap Scheme Barred From Penny Stocks

    A Florida federal judge barred a lawyer and her husband from serving as an officer or director of a public company and trading penny stocks in judgments entered Tuesday in a U.S. Securities and Exchange Commission case over a pair of microcap schemes.

  • June 16, 2020

    Wells Fargo Will Pay Maryland $20M To Settle RMBS Claims

    Wells Fargo will pay $20 million to end claims by Maryland's attorney general that the financial services firm misled investors regarding its residential mortgage-backed securities during the housing crisis, the state office announced Tuesday.

  • June 16, 2020

    Judge Probing SocGen's Scandal-Linked $2.5B Tax Credit

    Prosecutors in Paris appointed an investigative judge to examine whether France's government illegally gave Société Générale SA a €2.2 billion ($2.5 billion) tax credit in the wake of a historic trading scandal inside the investment bank.

  • June 16, 2020

    Judge OKs $77M Fees In Fannie, Freddie Bond Price-Fix Suits

    A New York federal judge on Tuesday approved a $77.3 million award for Lowey Dannenberg PC and Scott & Scott LLP for their roles as co-lead counsel in five class action settlements resolving claims of a price-rigging scheme for bonds issued by Fannie Mae and Freddie Mac.

  • June 16, 2020

    SEC Urged To Mandate Virus Disclosures From Public Cos.

    A Wall Street reform group Tuesday called on the U.S. Securities and Exchange Commission to make public companies disclose how they are protecting workers from COVID-19, saying that the information is critical to investors and public health.

  • June 16, 2020

    7th Circ. Won't Revive Suit Over Stock Value In $7M Sale

    Three brothers suing the firm that bought their environmental consulting company haven't shown that it misrepresented the value of preferred stock exchanged in the sale, the Seventh Circuit said on Tuesday. 

  • June 16, 2020

    Biotech Co. Asks 4th Circ. To Toss $22M Defamation Verdict

    A biotech company has asked the Fourth Circuit to toss a $22 million defamation verdict stemming from a proxy fight with a former pharmaceutical executive, arguing there was no basis for what the company said was the largest-ever defamation award in the circuit.

  • June 16, 2020

    Wells Fargo Investors Say Objector 'Extorted' Bank For $1.75M

    An objector to the Wells Fargo settlement over fake accounts should be sanctioned along with his attorneys at Ridley McGreevy & Winocur PC and made to repay $1.75 million they "extorted" from the bank, the lead plaintiffs told a California federal court.

  • June 16, 2020

    Class Urges NY Judge To Enforce $250K ATBCoin Settlement

    Investors who settled claims with digital asset startup ATBCoin LLC urged a New York federal judge on Tuesday to enforce the $250,000 deal, saying a letter filed by the company following the settlement agreement offered no explanation of ATBCoin's "sudden inability to pay."

  • June 16, 2020

    2nd Circ. Says Settlement Bars Suit Against Madoff Chum

    The Second Circuit on Tuesday agreed with a lower court's finding that the terms of a settlement agreement bar investors swindled by infamous Ponzi schemer Bernie Madoff from going after the estate of his late associate.

  • June 16, 2020

    Centra Tech Co-Founder Cops To $25M Crypto Scheme

    A co-founder of cryptocurrency company Centra Tech Inc. on Tuesday admitted to charges of conning investors in a $25 million initial coin offering to fund a digital currency payment card he and others falsely claimed was backed by major payment processors including Visa Inc.

  • June 16, 2020

    SEC Lacks Authority For Fee Pilot Program, DC Circ. Rules

    The D.C. Circuit ruled Tuesday that the U.S. Securities and Exchange Commission does not have the authority to implement a two-year pilot program examining the fees and rebates system used by major U.S. stock exchanges.

  • June 16, 2020

    SEC Chief 'Concerned' About Virus As Landmark Reg BI Nears

    The head of the U.S. Securities and Exchange Commission is urging broker-dealers to focus their attention on COVID-19 and the resulting market volatility as the June 30 compliance deadline for Regulation Best Interest approaches, citing "concern" about pandemic-related and other risky investment recommendations. 

  • June 16, 2020

    SEC Allows Towns To Sell Securities To Banks Amid COVID-19

    The U.S. Securities and Exchange Commission will temporarily allow registered municipal advisers to sell municipal securities to qualified banks and credit unions through 2020, an effort to free up cash in small cities and towns amid COVID-19, the regulator said in an order issued Tuesday.

  • June 16, 2020

    Judge Won't Order Twilio To Preserve Emails In BitMEX Suit

    A California federal judge on Monday denied a request to order messaging and email platforms Twilio Inc. and Intercom Inc. to preserve data as evidence in a racketeering and cryptocurrency manipulation lawsuit against crypto exchange BitMEX, saying he expects the parties to save the information until the litigation ends.

  • June 15, 2020

    CFTC Chief Makes Case For 'Principles-Based' Regulation

    U.S. Commodity Futures Trading Commission Chairman Heath Tarbert said he wants to "reinvigorate" his agency's principles-based approach to regulation where appropriate, according to a new white paper penned for the Harvard Business Law Review.  

Expert Analysis

  • Sponsor-Backed PIPEs Can Aid In The Race For Liquidity

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    ​​​​​​​Even in the best of times, private investments in public equity may provide an attractive source of financing, but PIPEs are especially attractive in times of financial distress given the unavailability of traditional financing markets to many companies, say attorneys at Debevoise.

  • Preventing Elder Exploitation As Securities Fraud Increases

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    Because securities fraud tends to increase in times of crisis, financial institutions should be on the lookout for elder abuse red flags identified by the Financial Crimes Enforcement Network and U.S. Department of Justice, and shore up suspicious activity reporting, says Michael Napoli at Akerman.

  • 7 Steps To Romancing The Virtual Classroom

    Excerpt from Lexis Practice Advisor
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    For professors, trainers, lawyers, students and businesses grappling with the unexpected challenges of distance learning, trial attorney and teacher James Wagstaffe offers best practices for real-time online instruction.

  • Great Recession Holds Mortgage Crisis Lessons For Today

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    Mortgage defaults and losses resulting from COVID-19 should be more limited than during the Great Recession, but nonetheless litigation may arise over mortgage servicing and origination practices, say members of Analysis Group.

  • Main Street Lending Adjustments Mean Help For More Cos.

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    Recent changes to term sheets for the Federal Reserve's Main Street Lending Program, allowing borrowers to utilize adjusted earnings before interest, taxes, depreciation and amortization, will increase the available loan amount and qualify more borrowers, says Keith Durkin at BakerHostetler.

  • Bankruptcy Fraud Prosecutions May Increase Post-Pandemic

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    While prosecutors have rarely pursued criminal bankruptcy fraud allegations against companies and executives, investigations invariably follow the money in pursuit of alleged fraud and thus bankruptcy is a natural area of focus in a financial crisis, say attorneys at Gibson Dunn.

  • Key Return-To-Work Considerations For Law Firms

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    There may be precious little notice before the legal community ramps up, so it's important to have return-to-work plans that address the unique challenges law firms will face in bringing employees back to offices, say attorneys Daniel Gerber, Barbara O'Connell and Richard Tucker.

  • Lessons From SEC's Bribery Claim Against Ex-Goldman Exec

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    The U.S. Securities and Exchange Commission's recent charge against a former Goldman Sachs U.K. executive over his role in a bribery scheme illustrates the importance of Foreign Corrupt Practices Act diligence that goes beyond representations of employees and others with an interest in a transaction, say John Murray and Shrutih Tewarie at Foley Hoag.

  • What Investors May Now Want Public Companies To Disclose

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    The virtual meeting of the U.S. Securities and Exchange Commission's Investor Advisory Committee earlier this month may shed light on additional actions the SEC could consider regarding the type of information public companies should provide to investors about the impact of COVID-19, say attorneys at Baker McKenzie.

  • SEC Financial Accounting And Disclosure In COVID-19's Wake

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    Attorneys at Proskauer and Credibility International's president identify accounting and disclosure issues the U.S. Securities and Exchange Commission is most likely to examine post-crisis, and suggest some steps corporate issuers can take now to minimize regulatory scrutiny down the road. 

  • A Creative Solution For Teaching Local Practice In Law School

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    To help prepare my students to navigate local practice, I wrote a set of rules for the classroom that mimics those they might encounter from a local judge or court, says Michael Zuckerman at Northwestern Pritzker School of Law.

  • Making Law Firm Panels Work For The Cost-Conscious GC

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    General counsel may be tempted to resort to matter-level requests for proposals in the wake of the COVID-19 economic crisis, but alternatively, a singular, global RFP process — to select a panel of law firms for all legal needs — can reduce legal spend while fostering long-term relationships, say Vivek Hatti, formerly at Avis Budget Group, and Jaron Luttich at Element Standard.

  • Coffee Chain Fraud Spotlights Governance Issues Amid Crisis

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    The recent Luckin Coffee accounting fraud underscores the need for robust series processes and controls to prevent and detect financial misconduct as corporate growth slides and employment falls, say professionals at K2 Intelligence.

  • #MeToo's Unexpected Implications For Shareholder Litigation

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    Attorneys at Debevoise discuss forms of shareholder litigation arising from the #MeToo movement, some early cases expressing skepticism of the claims, and recent actions that suggest renewed interest by plaintiffs and increased risk for companies.

  • Distressed Debt Tax Opportunities For Foreign Investors

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    Foreign investors can earn tax-free interest income on distressed debt issued by U.S. companies, as long as they steer clear of income classification pitfalls, says Seth Entin at Holland & Knight.

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