Securities

  • May 24, 2021

    Investors Allegedly Misled By Dynagas Pitch $4.5M Settlement

    Counsel for investors who claim natural gas shipper Dynagas LNG Partners LP lied to investors about its ability to pay dividends told a Manhattan federal judge Monday that they had reached a $4.5 million class settlement.

  • May 24, 2021

    Morgan Stanley Wraps Up Fired Diversity Chief's Bias Suit

    Morgan Stanley and a former chief diversity officer have agreed to end the executive's suit claiming she was ousted for trying to address inequality at the investment firm and advocate for Black employees, the parties told a New York federal judge Monday.

  • May 24, 2021

    SEC Approval Of Nasdaq Plan Expands IPO Alternatives

    Nasdaq has gained regulatory approval to allow direct listings that also raise capital, a move that expands options for companies going public apart from a traditional initial public offering.

  • May 24, 2021

    Mattel Hit With Derivative Suit In Del. Over $109M Tax Error

    A Mattel Inc. stockholder has sued the toymaker's directors and others in Delaware Chancery Court on the company's behalf, alleging a cover-up of a tax error that understated by $109 million the company's late-2017 income and net loss, eventually triggering investigations and a 16% stock fall.

  • May 21, 2021

    Ex-SEC Whistleblower Chief Joins Arnold & Porter

    The ex-chief of the U.S. Securities and Exchange Commission's whistleblower office, Jane Norberg, has joined Arnold & Porter as a partner in its securities enforcement and litigation practice as of Monday, she confirmed in an interview with Law360. 

  • May 21, 2021

    'Shell Game' Claims By Investor In Pot Biz Are Trimmed Again

    A federal magistrate judge in Colorado has again trimmed most of the claims from an investor's suit alleging that the principal of a cannabis company employed a "shell game" to siphon assets from the business, finding that the investor is still asking for relief in a scheme involving a federally illegal business.

  • May 21, 2021

    Endo Investors Win Operatic Class Cert. In Generic Price Suit

    A Pennsylvania federal judge on Thursday certified a class of investors accusing Endo International PLC of artificially inflating its stock price, likening the impact of the pharmaceutical company's alleged misrepresentations to King Philip's multilayered betrayal in Giuseppe Verdi's "Don Carlo."

  • May 21, 2021

    SEC Pushes For Ripple's Legal Advice On Token's Status

    The U.S. Securities and Exchange Commission told a New York federal magistrate judge Friday that the advice Ripple Labs received years ago from its lawyers about its signature digital asset's legal status should be fair game in the agency's landmark cryptocurrency fight.

  • May 21, 2021

    Winemaker Says He Does Not Have Money For $29M Award

    A majority shareholder in a winemaking company told a Florida federal judge that bankruptcy — not "willful disobedience" — is why he cannot pay a $28.7 million award and that he's trying to resolve it through bankruptcy proceedings.

  • May 21, 2021

    3rd Circ. Backs Shutterfly Win In Investor Suit Over $2.7B Deal

    Shutterfly didn't issue a misleading proxy statement ahead of its $2.7 billion sale to private equity giant Apollo Global, a Third Circuit panel held Friday, affirming a Delaware federal court's decision tossing investors' proposed securities class action against the image-sharing company.

  • May 21, 2021

    A Benefits Attorney's Guide To Collective Investment Trusts

    As the use of collective investment trusts in 401(k) plans has skyrocketed over the past two decades, ERISA lawsuits targeting these bank-sponsored investment vehicles have increased in number as well. Here, Law360 explains how CITs come up in the courtroom and offers attorneys' tips on lowering Employee Retirement Income Security Act litigation risk.

  • May 21, 2021

    2nd Circ. Cuts Cord On Adelphia Execs' Conviction Challenge

    The Second Circuit held Friday that Adelphia Communications Corp. founder John Rigas and his son can't vacate their convictions for fraud, ruling that the alleged withholding of government notes about some pretrial interviews "does not reasonably undermine our confidence in the jury's verdict."

  • May 21, 2021

    Delaware's New Chancellor On The Post-COVID Court

    Delaware's Chancery Court is exiting the pandemic emergency in a "great position to tackle the challenges ahead" after a year of litigating remotely, but is also facing a growing and more-complex docket, according to newly minted Chancellor Kathaleen S. McCormick, who assumed leadership of the court this month.

  • May 21, 2021

    VW Escapes Investors' German Car Conspiracy Suit In NY

    A New York federal judge dismantled a suit alleging Volkswagen conspired with Daimler and BMW to suppress competition by coordinating costs, supplies and vehicle technology, saying investors' vague claims concerning allegedly overpriced securities didn't amount to any U.S. law violations.

  • May 21, 2021

    Third Chinese Co. Assails 'Careless' Blacklisting

    A computer chip maker is pushing to shake its designation as a Chinese military-affiliated company, bolstering its Friday complaint with a D.C. federal court's finding that the Trump administration showed "a general lack of care" in branding technology firms.

  • May 21, 2021

    Once Sizzling IPO Market Starts To Show Cracks

    The previously red-hot market for initial public offerings appears to be cooling following volatility that has made pricing IPOs trickier, prompting some companies to delay plans while others brave choppy markets. 

  • May 21, 2021

    Baker Partner, Ex-Lobbyist Charged In Timber Ponzi Scam

    A federal grand jury in Mississippi has charged a Baker Donelson partner and a former firm lobbyist with securities fraud and other crimes for soliciting tens of millions of dollars for a vast timber industry Ponzi scheme.

  • May 20, 2021

    European 'Neobroker' Raises $900M For Investment Platform

    European stock-trading platform Trade Republic said Thursday it raised a whopping $900 million and gained a valuation of over $5 billion, which it says makes it among Europe's top-valued private fintechs.

  • May 20, 2021

    REV Investors Ink $14M Deal To End Securities Suit

    REV Group Inc. investors asked a Wisconsin federal judge Wednesday to approve a nearly $14.3 million settlement to resolve their class action accusing the specialty carmaker of misleading shareholders by knowingly putting out inaccurate information about earnings targets following the company's initial public offering.

  • May 20, 2021

    Lawmakers Propose Amending ERISA To Allow ESG Investing

    Three Democratic congresswomen introduced legislation Thursday that would amend the Employee Retirement Income Security Act to give legal protection to retirement plan sponsors who consider investments' social responsibility, environmental impact and corporate governance practices when deciding where to direct workers' savings.

  • May 20, 2021

    Biden Instructs Agencies To Evaluate, Mitigate Climate Risks

    President Joe Biden on Thursday directed federal agencies to evaluate and mitigate climate change's risks to homeowners, consumers, businesses, workers and the financial system, issuing an executive order aimed at helping Americans "better understand how climate change can affect their financial security."

  • May 20, 2021

    Milberg Clients Get Cert. In Recently Revived Malpractice Row

    An Arizona federal judge granted certification to a class of Milberg LLP clients in long-running litigation — recently revived in the Ninth Circuit — that claims the firm botched a securities class action by missing key deadlines.

  • May 20, 2021

    Citi Takes $500M Revlon Transfer Freeze Bid To 2nd Circ.

    Citibank NA has petitioned the Second Circuit to extend an asset freeze on the more than $500 million that the bank is fighting to claw back from Revlon Inc. lenders, escalating its request after getting turned down by a New York federal judge.

  • May 20, 2021

    Investors Drop Suit To Block $2.3B Gov't Tech Merger

    Shareholders of digital government services company NIC Inc. on Thursday dropped their bid to block a $2.3 billion merger with software provider Tyler Technologies, just short of three months after launching the effort to tank the deal.

  • May 20, 2021

    SEC Hits Broker-Dealer With 'Naked' Shorting Suit

    The U.S. Securities and Exchange Commission has sued a registered broker-dealer for allegedly violating federal regulations aimed at preventing the improper practice known as "naked short-selling," or selling shares that have not been affirmatively borrowed or located.

Expert Analysis

  • Opinion

    GameStop Hype Exposes Securities Litigation Theory's Flaws

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    The extraordinary recent volatility of GameStop and other so-called meme stocks shines a light on the need to revisit the outdated fraud-on-the-market presumption in securities litigation, which the plaintiffs bar is wrongly using to wring settlement after settlement out of securities issuers, says J.B. Heaton at One Hat Research.

  • What Companies Should Know About SIGPR Oversight

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    Brian Miller, the special inspector general for pandemic recovery, discusses what companies and attorneys can do to avoid CARES Act fraud, how his team approaches protecting taxpayer money, and some of the challenges and successes SIGPR faced building an agency from the ground up amid a pandemic.

  • M&A Disclosure Lessons From Columbia Pipeline Challenge

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    The shareholder challenge to Columbia Pipeline's $13 billion merger with TransCanada — which recently survived Delaware Chancery Court dismissal arguments — has lessons for target boards that favor a particular bidder, including the importance of documenting their reasoning, say attorneys at Fried Frank.

  • Rogue High Court Citation May Spark Legal Writing Changes

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    Justice Clarence Thomas’ unexpected use of a new citation format in the U.S. Supreme Court’s recent Brownback v. King opinion is the most notable citation change in the court's writing in 25 years, and could inspire receptiveness for other innovations in legal writing and beyond, says Carrie Garrison at Porter Wright.

  • Choosing Between An SEC Receivership And Bankruptcy

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    The ongoing California federal fraud case U.S. Securities and Exchange Commission v. Direct Lending Investments highlights the important choice companies facing enforcement-induced insolvency have between SEC receivership and bankruptcy, with the latter potentially leaving stakeholders on superior financial footing, say Reid Skibell and Joseph Gallagher at Harris St. Laurent.

  • Mitigating Risk Amid Layoff-Driven Confidential Witness Boom

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    Corporate counsel should proactively allay risk stemming from securities fraud plaintiffs' use of confidential witnesses, which could become more common against the backdrop of pandemic-induced layoffs, say attorneys at Dechert.

  • The Case For Diversity In Internal Investigation Teams

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    Teams that represent differing backgrounds can uniquely strengthen internal investigation processes with more thorough deliberation, better interviewee trust-building and more effective problem-solving, so law firms and clients alike must avoid the natural impulse to select homogenous groups, say Karin Portlock and Jabari Julien at Gibson Dunn.

  • Key Insights From DOJ's 2020 Fraud Enforcement

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    A look at 2020 U.S. Department of Justice Fraud Section efforts reveals a nearly threefold increase in monetary penalties, evidence of rising cooperation among international enforcement agencies, and vigorous pursuit of white collar crime despite the absence of newly installed independent compliance monitors, say Andrew Weissmann and Tali Leinwand at Jenner & Block.

  • Split Over Successive Class Action Tolling Isn't Going Away

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    Two recent federal court rulings have widened a split in interpretations of the scope and reach of the U.S. Supreme Court's 2018 decision in China Agritech v. Resh, which limited the ability of the plaintiffs bar to file serial class action complaints, says Justin Hawal at DiCello Levitt.

  • Disparate Accountability For Robinhood Platform And Its CEO

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    Scott Silver and Ryan Schwamm at Silver Law Group analyze Robinhood's legal and regulatory obligations related to January’s trading frenzy, and compare them to those of the platform’s CEO, who can avoid Financial Industry Regulatory Authority oversight and arbitration of individual claims.

  • 5 Ways Outside Counsel Can Impress Their Clients

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    Attorneys can build lasting relationships with corporate clients by thinking of in-house counsel as project partners, adhering to a few basic communication principles and thinking beyond legal advice, says Gerry Caron, chief counsel for safety, health and environment at Cabot.

  • Rebuttal

    NY Securities Rulings Don't Constitute Cyan Backlash

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    Contrary to a recent Law360 guest article’s argument, a New York state court’s recent decisions in Sundial Growers and Lyu v. Ruhnn Holdings were based on the facts, and do not indicate state courts are averse to Securities Act class actions as permitted under the U.S. Supreme Court’s Cyan decision, says Eduard Korsinsky at Levi & Korsinsky.

  • Musk's Crypto Tweets Likely Didn't Violate SEC, CFTC Rules

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    The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission will be hard-pressed to argue Tesla CEO Elon Musk's recent tweets about cryptocurrencies amounted to illegal communication of material information to investors, or constituted market manipulation, say Kenneth Breen and Phara Guberman at Paul Hastings.

  • Ethics Tips For Attorneys Telecommuting Across State Lines

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    Attorneys working remotely from jurisdictions in which they are not admitted should take precautionary steps to avoid engaging in unauthorized practice of law, say John Schmidt and Michael Seaman at Phillips Lytle.

  • Opinion

    Abusive M&A Litigation Highlights Need For Securities Reform

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    In-court M&A challenges that benefit plaintiffs counsel more than shareholders continue unabated, demonstrating the need for federal securities law reform to prevent what amounts to a deal tax on companies forced to pay mootness fee settlements and higher directors and officers insurance premiums, say attorneys at Seyfarth.

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