Securities

  • June 15, 2022

    Greenberg Team Set To Attack Feds' NFT Insider Trading Case

    Greenberg Traurig LLP lawyers representing a New York City purveyor of nonfungible tokens asserted Wednesday that the Manhattan U.S. attorney's office has failed to bring viable insider trading charges against their client, telling a federal judge they may file for dismissal.

  • June 15, 2022

    Del. Justices Reverse Stockholder Snub In 3D-TV Co. Row

    The Delaware Supreme Court vacated on Wednesday a Chancery Court ruling that a common law "insolvency exception" to state corporation law eliminates a requirement for a stockholder vote before directors can hand a broke and debt-ridden company to secured creditors.

  • June 15, 2022

    SEC's Tighter Rules For SPACs Panned At Conference

    The U.S. Securities and Exchange Commission's proposed rules to rein in special-purpose acquisition companies drew withering criticism Wednesday from attorneys who argued that regulators could undermine an alternate route for businesses to go public.

  • June 15, 2022

    SEC Nabs $573K Judgment In Snap Insider Trading Case

    A California federal judge has ordered the brother-in-law of a former engineer with Snap Inc. to pay more than $573,000 for allegedly using inside information to reap more than $261,000 in profits, after the court granted the U.S. Securities and Exchange Commission's default judgment motion.

  • June 15, 2022

    GoDaddy Founders Sued In Del. Over $850M Tax Pact Buyout

    A stockholder of GoDaddy Inc. has sued the domain registration company and 10 of its board members in Delaware's Chancery Court for paying company founders and private equity sponsors $850 million in July 2020 for the rights to what the company allegedly knew were potentially worthless tax assets.

  • June 15, 2022

    Cleary Notes Off-Limits In Ex-Citi Trader's Forex Probe Suit

    A former Citigroup Inc. trader can't access Cleary Gottlieb Steen & Hamilton LLP's reports of U.S. Department of Justice meetings in his lawsuit alleging the bank framed him to save itself during a foreign exchange-rigging probe, a Manhattan federal judge said Wednesday.

  • June 14, 2022

    Electric Car Co. Investor Sues In Del. Over Disclosure Failures

    The shareholder of a special-purpose acquisition company that took electric vehicle start-up Faraday Future public in 2021 filed a proposed class action complaint in Delaware's Court of Chancery on Tuesday, alleging company leaders misled shareholders about the true value of the luxury electric car company before the merger. 

  • June 14, 2022

    Oil Co. Founder Held Liable In Stock Fraud Class Action

    A New York federal jury on Tuesday found Dakota Plains Holdings Inc. co-founder Michael Reger liable for securities fraud but not for insider trading, capping an investor class action accusing the defunct oil transloading company's officers and directors of engaging in a stock manipulation scheme.

  • June 14, 2022

    Consumers Seek $8M In Atty Fees In Payday Lending Case

    Consumers who sued the owners of now-defunct payday lender Think Finance have asked a Virginia federal judge for more than $8 million in attorney fees and costs following her preliminary approval of their $44.5 million class action settlement.

  • June 14, 2022

    SEC Says Rochester, NY, Misled Investors In $119M Bond

    The U.S. Securities and Exchange Commission on Tuesday accused the city of Rochester, New York, its former finance director and an advisory firm of misleading investors in a $119 million bond offering, alleging the municipal adviser also failed to disclose conflicts of interest.

  • June 14, 2022

    Ex-Robinhood Crypto Compliance Chief Joins NJ Fintech Firm

    Cross River Bank has hired Robinhood Markets Inc.'s former chief compliance officer for cryptocurrency as its own head of crypto compliance, a spokesperson for the banking technology firm confirmed to Law360 on Tuesday.

  • June 14, 2022

    BlackBerry Inks $165M Deal To End Investors' Sales Data Suit

    Smartphone maker Blackberry Ltd. has agreed to pay $165 million to end investors' claims that it hid poor sales numbers for its Z10 smartphone.

  • June 14, 2022

    SEC Fines PE Firm $1M Over Undisclosed Expenses To Fund

    The U.S. Securities and Exchange Commission reached a $1 million settlement Tuesday with a New Jersey-based investment adviser over claims that the firm allocated undisclosed, disproportionate expenses to a private equity fund it advises, in relation to a 2017 take-private transaction.

  • June 14, 2022

    Engineer Accused Of Insider Trading On $2B Betting App Deal

    A former Penn National Gaming Inc. software engineer was charged Monday with insider trading for allegedly leveraging into illegal profits inside information about the casino operator's $2 billion acquisition of a sports media app company.

  • June 14, 2022

    New York Federal Prosecutor Returns To Paul Weiss

    David Kessler, an assistant U.S. attorney in New York who has prosecuted high-profile cases including that of Huawei Technologies Chief Financial Officer Meng Wanzhou in 2021, is returning to Paul Weiss Rifkind Wharton & Garrison LLP, where he started out as a summer associate 14 years ago.

  • June 14, 2022

    Crypto Buyer Drops Illicit Tokens Suit Over Cost Burden

    The lead plaintiff in a class action against online crypto-asset exchange KuCoin has dropped his suit accusing the company of not registering as a securities exchange and broker-dealer while selling unregistered securities, telling a New York federal judge that his counsel determined it would not be worth the effort to seek a default judgment.

  • June 14, 2022

    Tilton, Zohar Squabble Over Appointing Stila Styles Manager

    A bankrupt fund battling with distressed debt maven Lynn Tilton over cosmetics company Stila Styles LLC is now asking the Delaware Chancery Court to clarify a May 31 ruling over who has the right to appoint Stila's manager — a request Tilton denounced Tuesday as a disguised motion for reargument.

  • June 14, 2022

    Asset Manager To Pay Nearly $6.9M Over Short Sale Violations

    Boston-based Weiss Asset Management LP on Tuesday agreed to pay nearly $6.9 million to settle charges from the U.S. Securities and Exchange Commission that it unlawfully sold stock short during a restricted period before purchasing shares of the same stock in public offerings.

  • June 14, 2022

    Ozy Media YouTube Exec Impersonation Suit Axed, For Now

    A California federal judge axed, for now, a securities suit filed by an Ozy Media investor accusing the company of hiding that it was under government investigation after one of its founders impersonated a YouTube executive to solicit investments, finding that the suit didn't identify any rules broken by the impersonation.

  • June 14, 2022

    CFTC Commish Says Agency Wouldn't Go Easy On Crypto

    A U.S. Commodities Futures Trading Commission member has rejected suggestions that the agency would take an easygoing approach toward regulating cryptocurrency, saying Tuesday the CFTC is positioned to protect consumers if given more authority.

  • June 14, 2022

    $12M Chancery Deal Sought For $335M NY Casino-Resort Suit

    Minority stockholders of New York's Empire Resorts Inc. have tentatively settled for $12 million a Delaware Court of Chancery class challenge to the company's $335.4 million go-private sale in 2019 to its largest stockholder.

  • June 14, 2022

    Firms Get $14.7M For Advance Auto Parts Suit Deal In Del.

    Counsel representing a shareholder class in a Delaware federal court suit alleging Advance Auto Parts Inc. inflated sales projections to hide its poor financial condition were awarded roughly $14.7 million in attorney fees and expenses as part of a $49.25 million settlement approved Monday.

  • June 14, 2022

    TrillerVerz, SeaChange Walk Away From $5B Merger Deal

    Video app TrillerVerz and video streaming and advertising technology company SeaChange have decided to go their separate ways as the clock runs out on a merger agreement that would have united the two into a single company valued at $5 billion.

  • June 14, 2022

    Calif. Atty Wants SEC Suit Tossed Over Fruit Co. Work

    A California securities attorney accused of a fraudulent pump-and-dump scheme by the U.S. Securities and Exchange Commission asked a judge to throw out the civil suit because the SEC's fraud claims were not factually supported.

  • June 14, 2022

    Spirit Enters Talks With JetBlue, But Frontier Deal Still On

    Spirit Airlines Inc. said Tuesday it is now in talks with JetBlue Airways Corp. over the company's latest buyout offer, but noted it is also moving forward with its planned tie-up with Frontier Airlines, which is worth $6.6 billion, including debt.

Expert Analysis

  • Post-Arb. Claims May Face Challenges After High Court Ruling

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    In Badgerow v. Walters, the U.S. Supreme Court recently held that a federal court may not look through to the underlying dispute to decide jurisdictional questions under the Federal Arbitration Act, likely forcing arbitral parties seeking to confirm or vacate an award to file in state courts — which are historically more hostile to arbitration, say Teresa Reuter and Jason Marsico at Sidley.

  • Best Practices For Avoiding Bank Reference Letter Scams

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    Recent streaming series highlight the risks con artists can pose to banks — a reminder for financial institutions to take precautions when writing client reference letters, ​​​​​​​which fraudsters may use to establish legitimacy to perpetuate their scams, says Kevin Paule at Hill Ward.

  • Nonreliance Clause Enforceability Still Murky In Fla. Courts

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    A Florida state court's recent decision in NM Residential v. Prospect Park highlights the unpredictability around how and when the state's courts enforce nonreliance provisions in securities and business transactions, but recent cases also provide some useful lessons, say Ian Ross and Amy Bowers at Stumphauzer Foslid.

  • Perspectives

    Time To Fix Legal Industry's Environmental Pro Bono Problem

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    As we observe Earth Month, it's sobering to note that pro bono environmental law work lags behind other practice areas — but the good news is that there are numerous organizations that can help lawyers get connected with environment-related pro bono projects, says Matthew Karmel at Riker Danzig.

  • What Federal Web3 Initiatives Mean For Fintech Professionals

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    Cybersecurity consultant John Reed Stark examines several recent federal initiatives related to the emerging decentralized stage of the internet, or Web3, and highlights immediate action items for financial firms exploring cryptocurrency-related activities.

  • Remembering An Underappreciated Legal Skill — Listening

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    Education around listening skills is often neglected amid the dominance of visual media and written communication, and failed lawyering often comes down to an inability to listen accurately, so educators and law firms must prioritize the skill in their training programs, says James Flynn at Epstein Becker.

  • Supply Chain Implications Of SEC's Climate Proposal

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    The U.S. Securities and Exchange Commission's recent climate risk disclosure proposal presents significant supply chain issues for both listed and unlisted companies, who should keep several new compliance considerations in mind ahead of the rule's eventual adoption, say Reagan Demas and Maria Piontkovska at Baker McKenzie.

  • Attorneys Can Promote Trade, Security Amid Global Conflict

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    As nations take sovereign action to fight Russia’s aggression against Ukraine and the international rule of law, attorneys can combine their legal and business tools to help the global systems of trade and security in these troubled times, say Thomas Grant at Cambridge University and Scott Kieff at George Washington University.

  • How Cos. Can Respond To ESG Focus In SEC Exam Priorities

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    Following the U.S. Securities and Exchange Commission's recent release of its examination priorities, businesses can address the agency's focus on environmental, social and corporate governance investing and mitigate the risk of regulatory scrutiny by reevaluating company practices and accurately portraying their products' environmental effects, say Rebecca Fike and Kelly Rondinelli at V&E.

  • Mitigating Antitrust Risk In Decentralized Autonomous Orgs

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    Online communities that jointly control cryptocurrency wallets to pursue common goals — known as decentralized autonomous organizations — may promise pro-competitive benefits, but their nature makes remediation of antitrust violations more challenging, and the design phase is crucial for addressing potential violations, say Susannah Torpey and Blake Pittell at Winston & Strawn.

  • Key Takeaways From SEC's 2022 Exam Priorities

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    The U.S. Securities and Exchange Commission's recently released exam priorities highlight the types of firms and business practices the agency has in its crosshairs, which, in a significant shift from past years, are led by private fund registered investment advisers, say Debevoise attorneys who were previously leaders in the SEC's Enforcement and Examinations Divisions.

  • Best Practices For Boards, Execs After SEC's Cyber Proposal

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    The U.S. Securities and Exchange Commission's recently proposed cybersecurity disclosure rules signal that officers and directors, not just companies, may find themselves in the SEC's crosshairs over cyber incidents and disclosure failings, but several best practices and steps can help minimize their risk, says Matthew Dunn at Carter Ledyard.

  • Series

    The Future Of Legal Ops: Reining In Outside Counsel Costs

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    In-house legal departments are under increasing pressure to control spending on outside counsel, but traditional cost-cutting methods — law firm panels, alternative fee arrangements and alternative legal service providers — are limited, making it necessary to establish a more competitive law firm engagement process, say John Burke and Vincenzo Purificato at UBS.

  • SEC Draft Climate Disclosure Rule May Speed Cos.' GHG Cuts

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    The U.S. Securities and Exchange Commission's recently proposed rule that would require publicly traded companies to disclose material climate-related information should help spur companies to make more short- and medium-term commitments to reduce their greenhouse gas emissions, says Andrew Shaw at Dentons.

  • When Congress Seeks Cos.' Nonpublic Info From Regulators

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    Increasingly, congressional investigators seek out private parties' confidential documents from the federal agencies that regulate them — and because Congress is uniquely empowered to override nondisclosure protections surrounding nonpublic information, companies must understand the rules and risks involved, say attorneys at Covington.

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