Securities

  • June 15, 2020

    Inovio's '3-Hour' COVID Cure Claims Spark Derivative Suit

    The top brass at biopharmaceutical company Inovio Pharmaceuticals Inc. was hit Monday with a shareholders' derivative action in Pennsylvania federal court accusing the firm's leadership of preying on investors by claiming it had only needed "three hours" to come up with a coronavirus cure.

  • June 15, 2020

    Investment Co. Wilshire Phoenix Eyes Bitcoin Trust Launch

    Investment manager Wilshire Phoenix has filed a registration statement with the U.S. Securities and Exchange Commission seeking to sell shares in a bitcoin commodity trust, a few months after its application to launch a bitcoin exchange-traded fund was rejected.

  • June 15, 2020

    Fla. Cannabis Co. Taps BigLaw Vet As Chief Legal Officer

    Florida medical cannabis company Bluma Wellness Inc. has tapped former BigLaw litigator and securities attorney Chris Polaszek as its chief legal officer and corporate secretary.

  • June 15, 2020

    COVID-19 Test Maker Sued Over '100% Accurate' Claim

    A Salt Lake City company that received the world's first regulatory clearance to sell COVID-19 diagnostic tests in Europe was hit with a securities suit on Monday for claiming its tests were "100% accurate."

  • June 15, 2020

    2nd Circ. Denies Goldman Another Chance To Decertify Class

    The Second Circuit will not rehear arguments against class certification in a high-profile shareholder suit against Goldman Sachs Group Inc., the appeals court said Monday.

  • June 15, 2020

    Alleged Sports Betting Fraudsters Get Access To Some Funds

    Two men accused by the U.S. Securities and Exchange Commission of running a nearly $30 million sports betting fraud scheme have each been allowed to access $5,000 per month in otherwise frozen funds, but the scheme's victims will have a chance to oppose any additional fund requests.

  • June 15, 2020

    Fed To Resume Bank Exams After Scaling Back For Pandemic

    The Federal Reserve announced Monday that it is resuming examinations for banks of all sizes after giving them a temporary breather to acclimate themselves to the operational challenges of the COVID-19 pandemic and focus on helping affected customers.

  • June 15, 2020

    Justices Reject Traders' Commodity Exchange Act Dispute

    The U.S. Supreme Court on Monday refused to consider arguments by traders that their Commodity Exchange Act allegations against BP PLC and other energy companies were improperly thrown out as "entirely foreign" despite the transactions occurring on domestic exchanges.

  • June 15, 2020

    LendingClub Investors' Suit Over FTC Probe Needs Rewrite

    Fintech firm LendingClub has prevailed again on a bid to end a proposed securities class action it faces in a California federal court accusing the company of mismanaging messaging around a Federal Trade Commission investigation, a judge ruled as she dismissed some of the suit's claims permanently.

  • June 12, 2020

    Feds Say Raymond James Broker Stole $940K From Elderly

    The U.S. Securities and Exchange Commission announced Friday that it has sued a former Raymond James & Associates Inc. securities broker who allegedly defrauded two seniors of more than $940,000, one day after federal prosecutors lodged related criminal charges against the broker.

  • June 12, 2020

    NY's Top Financial Regulator Talks Relief, Recovery And More

    As superintendent of New York's Department of Financial Services, Linda Lacewell has spent the past three months working to limit economic fallout from the nation's worst coronavirus outbreak. Now with the tricky process of reopening underway, Lacewell spoke with Law360 about the response and what else is on her agenda.

  • June 12, 2020

    CFTC Alleges $3M Multilevel Marketing Forex Trading Scheme

    The U.S. Commodity Futures Trading Commission has sued an individual and related businesses saying they ran a multilevel marketing foreign exchange fraud after repeatedly lying about the individual's trading experience, qualifications and trading profits, as well as failing to obtain the necessary registrations.

  • June 12, 2020

    Bernstein, Kessler Win Lead In Luckin Suit After Fiery Fight

    Bernstein Litowitz Berger & Grossmann LLP and Kessler Topaz Meltzer & Check LLP will be taking the lead in a stock-drop suit against the Chinese coffeehouse chain Luckin Coffee following a heated contest for the role, a New York federal judge ruled Friday.

  • June 12, 2020

    9th Circ. Urged To Revive Uber Fraud, Illicit Biz Practices Suit

    A Texas retirement fund has told the Ninth Circuit that Uber is liable for investors' losses resulting from corporate scandals and public relations mishaps, saying the ride-hailing giant falsely boasted about Uber's regulatory compliance and overall financial health while downplaying rampant mismanagement.

  • June 12, 2020

    First Mortgage's Ginnie Mae Suit Undone By SEC Deal

    The Federal Circuit on Friday affirmed the lower court's dismissal of First Mortgage Corp.'s breach of contract suit against Ginnie Mae, saying an earlier settlement with the SEC precluded the mortgage company's claims.

  • June 12, 2020

    Security Cam Co. Arlo Settles With Investors For $1.25M

    Netgear Inc. spinoff Arlo Technologies Inc. has agreed to pay $1.25 million to end shareholder claims the security company misled investors in advance of its initial public offering.

  • June 12, 2020

    Robbins Geller To Lead Norwegian Cruise Investor Suit

    A Florida federal judge on Friday appointed Robbins Geller Rudman & Dowd LLP as lead counsel for a consolidated proposed securities class action accusing Norwegian Cruise Line of downplaying the seriousness of the COVID-19 pandemic to prospective customers.

  • June 12, 2020

    Hotels In Pandemic Freefall Struggle To Avoid Default

    Thousands of hotels facing their worst year on record during the COVID-19 pandemic may have to close for good if they can't get debt repayment deals, but the few firms that would be able to help are already overwhelmed with requests for aid.

  • June 12, 2020

    Stroock Nabs Greenberg Traurig Litigation Pro For NY Office

    Stroock & Stroock & Lavan LLP has lured an 18-year veteran of Greenberg Traurig LLP who has represented private equity clients across the country to join its litigation practice in New York as a partner.

  • June 12, 2020

    GenCanna Misled Investors Before Bankruptcy, Ex-CFO Says

    The former chief financial officer of bankrupt hemp company GenCanna is claiming the company's accounting could have inflated assets and misled potential investors, and that he was fired after reporting it to company leadership, according to court filings.

  • June 12, 2020

    Zoom Derivative Suit Alleges $173M In Insider Trading

    An investor has launched derivative claims on behalf of Zoom Video Communications Inc. over its rise to prominence and subsequent scrutiny in the face of the coronavirus pandemic, accusing the company's top brass of pulling in $172.9 million via insider trading.

  • June 12, 2020

    Investors Call Lyft's Bid To Exit IPO Suit A 'Red Herring'

    Peeved stockholders argued Thursday that ride-hailing app Lyft can't escape their claims that it wiped out nearly $600 million in investments with misleading statements leading up to its March 2019 initial public offering, calling the company's bid to shake the suit a "red herring."

  • June 12, 2020

    Long Island Federal Judge Arthur D. Spatt Dies At 94

    Long Island U.S. District Judge Arthur D. Spatt, a George H.W. Bush appointee who took the bench in 1989, died Thursday at the age of 94, according to a court official.

  • June 12, 2020

    $25M Penny Stock Scam Used COVID-19 Ruse, Feds Say

    A $25 million pump-and-dump stock fraud scheme duped investors with bogus claims that shell companies could make face masks or produce contactless vending machines during the COVID-19 pandemic, federal prosecutors and securities regulators in Massachusetts said.

  • June 12, 2020

    Hertz Cleared For Up To $1B Stock Sale In Del. Ch. 11

    Hertz Global Holdings Inc. secured approval late Friday for a potentially unprecedented stock sale to finance its Chapter 11 in Delaware, in a move that the company said could produce as much as $1 billion and put a maximum of nearly 247 million shares on the market.

Expert Analysis

  • 10 Tips For Virtual Hearings Before Regulatory Agencies

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    A virtual regulatory hearing may involve unfamiliar and glitchy technology — and without the benefit of interpersonal contact with the judge, commissioners or staff, it can feel like talking to an empty room. Tara Kaushik at Holland & Knight offers keys to better online hearings, culled from her own recent experience.

  • How To Fight 'Relief Defendant' Status In SEC Actions

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    As the U.S. Securities and Exchange Commission's potential to pursue nonculpable third parties as so-called relief defendants increases following pandemic-caused market disruptions, anyone facing such claims should ask three key questions, say attorneys at Baker McKenzie.

  • Flurry Of SEC Activity Shows Interest In ESG Terminology

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    The U.S. Securities and Exchange Commission's recent request for comments, along with examination letters and exam priorities, show the regulator is evaluating how to clarify the use of the terms "environmental, social and governance" and "sustainable" to describe funds under the so-called names rule, say Mary Beth Houlihan and Donna Mussio at Fried Frank.

  • SEC Proposal May Foretell Valuation Enforcement Focus

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    The U.S. Securities and Exchange Commission's newly proposed Investment Company Act rule increases compliance demands on funds' fair value determinations, hinting that enforcement actions over improper fund valuation practices will be more intense than in the past, says George Talarico at Alaric Compliance Services.

  • 8 Tips For Retaining An Expert During COVID-19 And Beyond

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    Caroline Crump at Exponent and Natalie Baker Reis at Medical Research Consultants outline some strategies for creating a successful attorney-expert team, including unique considerations for pandemic-related closures and economic uncertainties.

  • A Bridge Too Far: High Court Limits Novel Fraud Theories

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    The U.S. Supreme Court's decision last week on the use of the mail and wire fraud statutes in the "Bridgegate" case almost certainly will have an impact on the U.S. v. Blaszczak insider trading case, where the broad conception of a deprivation of property is arguably at odds with Bridgegate, say David Sarratt and Eric Silverberg at Debevoise.

  • What It's Like To Move From Army JAG To BigLaw

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    Lawyers who have served in the U.S. Army's Judge Advocate General's Corps can provide tremendous value to law firms, but the transition to firm life has its challenges, says former JAG attorney Vinnie Lichvar, now at Snell & Wilmer.

  • Theranos Offers Defense Lessons For Multi-Agency Probes

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    The recent Theranos discovery dispute demonstrates the need for defense counsel to request a clear exculpatory evidence order to identify the investigating agencies early in a criminal case, say ​​​​​​​Samuel Feldman and Michael Kendall at White & Case.

  • How Biz Development Cos. Can Mitigate Regulatory Risks

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    With small business economics in the spotlight due to declining valuations, investor calls for U.S. Securities and Exchange Commission action, and continued disruption due to the pandemic, business development companies should promote compliance and build a robust record to mitigate heightened risks, say attorneys at Gibson Dunn.  

  • How Law Firms Can Maximize COVID-19 Insurance Coverage

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    Law firms struggling due to the pandemic should identify relevant insurance policies and provisions, be mindful of notice requirements that could interfere with coverage, and push back against policy exclusions, say Robin Cohen and James Smith at McKool Smith.

  • Potential Silver Linings In European Leveraged Loan Defaults

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    Since the last financial crisis, borrowers and private equity sponsors have cut distressed investors out of most European leveraged loan deals, but the recent economic turmoil due to the pandemic could create opportunities for distressed investors to return to the market, say attorneys at Orrick.

  • Adapting Defense Strategy To Twombly Plausibility Standard

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    Very few litigators have altered the manner in which they practice since the U.S. Supreme Court adopted the new "plausibility" standard in Twombly and Iqbal, but providing courts with materials that can shine light on the plausibility of the purported facts in the complaint can lead to a successful motion to dismiss, say attorneys at Hunton.

  • Virtual Caucuses Can Improve The Mediation Process

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    Both during the current crisis and in the future, integrating virtual, private caucuses between the mediator and each party into the mediation timetable would create an overall superior process, says mediator Marc Isserles at JAMS.

  • How To Assess Accounting Materiality Amid Economic Crisis

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    Companies weathering the economic fallout of COVID-19 should consider three data-driven quantitative methods to help evaluate accounting materiality claims, particularly in cases where traditional factors fail to establish whether an error was material, and where data exists on comparable revision versus restatement decisions, say consultants at The Brattle Group.

  • Business Divorce In The Time Of COVID-19

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    As the COVID-19 crisis impacts some private companies so severely that their owners can't agree on a path forward, they may weigh selling shares and member interests, invoking dispute resolution procedures, and pursuing statutory relief, says Stephen Brodsky at Kaufman Dolowich.

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