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Securities

  • June 10, 2019

    Feds Slam Ex-Platinum Execs' Acquittal Bid In Fraud Case

    Federal prosecutors slammed former top Platinum Partners executives' mid-trial request to be acquitted of fraud charges in a letter in New York federal court Monday, arguing that they've presented enough evidence to show that the executives knowingly made material misrepresentations to investors.

  • June 10, 2019

    Calif. Court Affirms Mitchell Silberberg's $1.5M Fee Win

    A California appeals court on Friday affirmed Mitchell Silberberg & Knupp LLP’s $1.5 million win in an arbitration proceeding against convicted film financier David Bergstein over unpaid legal fees, rejecting Bergstein’s arguments that the firm breached its ethical duties and the arbitration should have been paused due to the criminal proceeding.

  • June 10, 2019

    Assisted Care Investor Avoids Chancery Contempt Arrest

    An assisted living home investor who risked arrest for an alleged failure to comply with Chancery Court receiver orders avoided being locked up late Monday, but was ordered to pay $312,000 in receiver fees within two weeks and meet a series of short-fuse reporting deadlines.

  • June 10, 2019

    SEC Says Co. Must Allow Investor Vote On LGBT Protections

    The U.S. Securities and Exchange Commission has ruled that a California health care management company can't block a proposed shareholder vote raising concerns about a lack of LGBTQ-specific language in its workplace policies. 

  • June 10, 2019

    Brit Guilty Of Concealing CEO's ID In $50M Bar Works Fraud

    A United Kingdom national already serving an 18-month prison sentence in Florida was convicted in Manhattan federal court of aiding a $50 million scheme by concealing the identity of the man controlling the shared workplace startup Bar Works Inc.

  • June 10, 2019

    Wine Biz Bilked Investors Through 'Shark Tank' Glass Scheme

    A wine dealer pled guilty in a Long Island federal court on Monday to wire fraud charges after prosecutors accused him of swindling investors out of over $500,000 with promises to invest in innovations like those featured on the TV show “Shark Tank.”

  • June 10, 2019

    Ex-Goldman Sachs VP Gets 3 Months For Insider Trading

    A former Goldman Sachs vice president was sentenced Monday to three months in prison for using his position on the investment bank's mergers and acquisitions team to fuel an insider-trading scheme with his brother in South Korea.

  • June 10, 2019

    Convicted Charter School Operator Hit With Racketeering Suit

    A former charter school operator convicted of defrauding Florida schools out of millions of dollars is being sued for racketeering by schools that he and his business associates ripped off by using shell companies to sell them school supplies at grossly inflated prices.

  • June 10, 2019

    Will Congress Finally Fix Insider Trading Law?

    Congress has tried on and off for decades to prohibit insider trading, and proponents of a bill currently before the U.S. House of Representatives hope that this time will finally do the trick, while critics worry that it casts too wide a net.

  • June 10, 2019

    Ex-DOJ Official Returns To King & Spalding

    A longtime former King & Spalding partner has returned to the firm after a stint as an associate deputy attorney general at the U.S. Department of Justice, a role that saw him involved in several recent tweaks to corporate enforcement policy.

  • June 10, 2019

    Royal Park, Deutsche Bank Bring RMBS Trustee Suit To End

    Royal Park Investments has agreed to end another one of its cases accusing a major bank of dropping the ball as trustee for pre-crisis residential mortgage-backed securities, this time ending claims that it originally brought on behalf of investors in 10 securitization trusts overseen by a Deutsche Bank AG unit.

  • June 10, 2019

    NY Town Settles SEC Suit, Agrees To Retain Consultant

    The Long Island, New York, town of Oyster Bay has agreed to hire an independent consultant to settle U.S. Securities and Exchange Commission claims that it concealed indirect guarantees of more than $20 million in private loans to a local businessman from municipal bond investors, according to a consent decree submitted for court approval.

  • June 10, 2019

    UK Co. LendInvest Securitizes £259M In Mortgage Loans

    United Kingdom-based property finance marketplace LendInvest has securitized £259 million ($328.75 million) of its buy-to-let mortgage loans, making it the first such fintech platform in the U.K. to securitize its own assets, the company announced Monday.

  • June 10, 2019

    BioScrip Investor Wants More Details On Option Care Merger

    An investor hit home infusion care provider BioScrip Inc. with a proposed class action Friday in Delaware Chancery Court saying that company directors have not provided enough details about a merger that would issue more than 500 million new shares of company stock while diluting current investors down to a 20% holding.

  • June 10, 2019

    Acadia Tries To Nix Investor Suit Over Drug Deaths

    Acadia Pharmaceuticals on Friday sought to dismiss a proposed class action accusing it of inflating its stock price by hiding safety risks connected to its medication for hallucinations and delusions, telling a California federal judge that a government investigation into reported patient deaths confirmed the treatment was safe.

  • June 10, 2019

    Ann Taylor Acquirer Hid Underperforming Sales, Investor Says

    An Ascena Retail Group stockholder has filed suit in New Jersey federal court alleging executives promised more than $1 billion in projected earnings and efficiencies from its acquisition of women’s apparel group Ann Inc., only to become saddled with unexpected expenses and underperforming brands.

  • June 10, 2019

    Touradji Capital Owes $91M To Ex-Portfolio Managers

    Hedge fund Touradji Capital Management LP owes $91 million to two former portfolio managers allegedly cheated out of their rightful cut of trading profits, including a New York state jury's $45.7 million award and interest dating back to 2008, according to court documents posted Monday.   

  • June 10, 2019

    FCA Lets Fintech Co. TokenMarket Raise Funds In 'Sandbox'

    Investment platform TokenMarket announced Monday that the U.K.'s Financial Conduct Authority has given it the go-ahead to raise funds in a security token offering using the regulator's "sandbox."

  • June 10, 2019

    Witness Struggles To Put CEO At Heart Of $100M Fund Scam

    A cooperating witness in the $100 million fraud case against Anilesh "Neil" Ahuja, CEO of Premium Point Investments, struggled Monday to put Ahuja at the center of an alleged criminal conspiracy to inflate the value of the now-bankrupt hedge fund.

  • June 10, 2019

    'Security Tokens' Slow To Take Off Following ICO Collapse

    Following a U.S. regulatory crackdown that chilled the once booming but unregulated market for initial coin offerings, more startups are attempting to structure digital token sales that comply with securities laws, though lawyers say the transition to legitimacy remains a work in progress.

  • June 10, 2019

    Platinum's Failure Skewed Trial, Ex-Union Chief Tells 2nd Circ.

    Norman Seabrook, the former corrections union leader who was convicted of taking bribes to steer retirement investments to Platinum Partners, told the Second Circuit on Friday that his trial was marred by prosecutors telling the jury that Platinum’s bankruptcy cost the union fund $19 million.

  • June 10, 2019

    Levi & Korsinsky Seeks Lead In Boeing Stock-Drop Suit

    Levi & Korsinsky LLP pushed unopposed for the top spot in an investor’s proposed class action accusing Boeing of hiding safety problems with its 737 Max jets, telling an Illinois federal court Friday that it is well qualified to represent a class of investors as lead counsel.

  • June 10, 2019

    Snap Investors Lob New Class Cert. Bid In Suit Over IPO

    Investors alleging Snapchat parent Snap Inc. misrepresented user growth and engagement in documents related to its initial public offering urged a California federal court on Friday to certify a class of investors, less than a year after they first sought class status in the suit.

  • June 10, 2019

    SEC Nabs $26M From Longfin Affiliates Over Stock Sales

    A New York federal judge has signed off on three settlements between the U.S. Securities and Exchange Commission and affiliates of the shuttered cryptocurrency company Longfin Corp., which agreed to pay roughly $26 million over allegedly illegal stock sales.

  • June 10, 2019

    Ex-Deutsche Bank Exec Faces Euribor-Rigging Trial In London

    Prosecutors for the Serious Fraud Office are due to open their case Tuesday against a former Deutsche Bank director accused of conspiring to rig a key benchmark interest rate used to price trillions of dollars of securities. 

Expert Analysis

  • SEC Disclosure Rule Puts Hedging Policies In Spotlight

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    As a result of the U.S. Securities and Exchange Commission's new rule requiring companies to disclose hedging policies governing company equity securities — which goes into effect in July — many companies will likely adopt more robust hedging policies, says attorney Laura Anthony.

  • Delaware 'Books And Records' Law Is Keeping Up With Tech

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    While some have suggested that the Delaware Supreme Court's decision in KT4 v. Palantir reaffirms existing case law on books and records requests, the more accurate takeaway is that Delaware law is evolving alongside companies' increasing usage of electronic communications, say Larry Wood Jr. and Adam Orlacchio of Blank Rome.

  • Book Excerpt

    'Big Tech' Questions Echo Early Days Of US Corporate Law

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    The current calls to curb the power of Google, Facebook and Amazon recall an earlier time in American history, when the “bigness” of oil, steel and tobacco was front and center in national politics. And in those debates, the top lawyers of the day had a major voice, says John Oller, author of the new book "White Shoe."

  • What Restitution Could Mean For SEC Enforcement Cases

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    A Senate bill would allow the U.S. Securities and Exchange Commission to pursue restitution in cases against members of the securities industry. But adding this power to the SEC’s arsenal is a major leap that should only be taken after all stakeholders have carefully weighed its implications, says Stephen Crimmins of Murphy & McGonigle.

  • A CFTC Whistleblower Award Breaks New Ground

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    For the first time, the U.S. Commodity Futures Trading Commission awarded over $2 million to a company outsider for providing expert analysis in conjunction with a related action by another federal regulator. The order offers pointers on where the CFTC’s whistleblower program may be headed, say attorneys at Cleary Gottlieb.

  • Demystifying Damages: 5 Flagrant Fouls Of Financial Experts

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    From unrealistic profit projections to discount rate delusions, financial experts offering testimony on damage awards sometimes go out of bounds. It's important to understand the five flagrant fouls frequently committed by financial experts in the courtroom, say Joseph Galanti and Michelle Gettinger of Grant Thornton.

  • High Court Extends Reach Of Securities Fraud Rule 10b-5

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    While the U.S. Supreme Court's decision in Lorenzo v. U.S. Securities and Exchange Commission may subject more individuals and entities to claims of securities fraud under SEC Rule 10b-5, it likely will not have a major impact on the kinds of cases the SEC pursues, say attorneys with Morrison & Foerster.

  • How The SEC's New Filing Rule Addresses Data Security

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    The U.S. Securities and Exchange Commission recently issued an interim final rule changing its requirements for when and how certain investment funds must file monthly reports, which should alleviate some industry concerns about the security of sensitive data that funds must transmit to the SEC, say attorneys at Dechert.

  • Brexit Risk-Disclosure Considerations For US Reporting Cos.

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    Following recent remarks on Brexit by officials from the U.S. Securities and Exchange Commission and the U.K.'s Financial Conduct Authority, attorneys with Norton Rose Fulbright discuss the potential operational, financial and accounting risks posed by different Brexit scenarios that boards and audit committees should discuss in company disclosures.

  • Unsatisfying Answers In 4th Circ. Retirement Plan Ruling

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    Three initial takeaways from the Fourth Circuit's recent opinion in Brundle v. Wilmington Trust — which will likely harm employee stock ownership plans — all concern the lack of regulatory and judicial guidance for plan fiduciaries, say Chelsea Mikula and Scott Stitt of Tucker Ellis LLP.

  • New Guidelines Boost Sustainability-Linked Lending

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    Last week, three global syndicated lending industry associations established a voluntary framework for loans with terms tied to sustainability performance targets — further developing this fast-growing loan product that was introduced in the United States last year, say Aaron Adams and Yair Galil of Gibson Dunn & Crutcher LLP.

  • Legislative Fix For Post-Libor Issues Seems Improbable

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    Because the Libor rate for short-term loans will soon be gone, the U.S. Alternative Reference Rates Committee may seek to amend contracts wholesale through legislation. However, this solution would face serious political and legal obstacles, says Anne Beaumont of Friedman Kaplan Seiler & Adelman LLP.

  • And Now A Word From The Panel: An MDL Denial

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    In its recent denial of a motion to create a multidistrict proceeding in response to a “no-poach” clause in a company’s franchise agreements, the Judicial Panel on Multidistrict Litigation emphasized that there must be both “disputed” factual issues and “significant discovery" to justify an MDL, says Alan Rothman of Arnold & Porter.

  • Setting The Record Straight On Women In Court Reporting

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    Today, 89 percent of court reporters are women, but I remember sitting behind my steno machine in the '80s and being asked by a judge if I, as a woman, would have the emotional fortitude to work a murder case, says Karen Santucci, chairwoman of the Plaza College court reporting program.

  • Opinion

    Judge Shines Needed Light On Expert Qualifications

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    A New York federal judge recently took the rare step of finding experts unqualified to render opinion testimony. This ruling in U.S. Securities and Exchange Commission v. Lek is an important assertion of an often overlooked gatekeeping role, says researcher J.B. Heaton.

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