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Securities

  • December 12, 2018

    Trump Taps Treasury Official To Lead CFTC In 2019

    President Donald Trump on Tuesday nominated Heath Tarbert as commissioner and chairman of the Commodity Futures Trading Commission, tapping him for a five-year term set to begin in April.

  • December 11, 2018

    SEC Enforcement Actions Rebound After Slow Year

    The U.S. Securities and Exchange Commission cranked out dozens of enforcement actions in the last few weeks of the 2018 fiscal year, returning to baseline levels following a year of steep decline, according to a study published Tuesday.

  • December 11, 2018

    Barclays Prevails In Hedge Fund's Breach-Of-Contract Suit

    More than a year after taking the matter up in a bench trial, a Manhattan judge has found in favor of Barclays PLC in a decade-old suit brought by a unit of hedge fund Black Diamond Capital Management LLC over whether the bank defaulted on a derivatives contract in the height of the 2008 financial crisis.

  • December 11, 2018

    Xura Breach Claims Advance In $643M Chancery Merger Suit

    An aggrieved investor of telecommunications technology company Xura Inc. cleared some early hurdles Tuesday in a Chancery Court suit challenging the company’s $643 million go-private sale to Siris Capital Group LLC, beating motions to dismiss claims that Xura’s former CEO had regular undisclosed contacts with the buyer.

  • December 11, 2018

    2nd Circ. Gives Goldman 2nd Shot At Class Cert. Appeal

    The Second Circuit on Tuesday granted Goldman Sachs' petition — for a second time — to appeal a New York federal judge's decision to grant class certification to investors claiming the Wall Street giant lied about its ethical compliance efforts just before losing $1 billion in securities known as collateralized debt obligations.

  • December 11, 2018

    Minn. Biz Co-Founder Gets 12 Years For $30M Stock Fraud

    A Minnesota federal judge sentenced a company co-founder to 12 years in prison Tuesday for his role in a $30 million stock manipulation scheme involving everything from a defunct tanning salon and his personal polo coach to his and his business partner's fathers posing as the company's board.

  • December 11, 2018

    Final Parties In Aussie Benchmark Suit Want Dismissals Redo

    An investor, Morgan Stanley and RBC Capital Markets LLC, the only remaining parties in a lawsuit accusing 15 major banks and two brokers of conspiring to manipulate the price of derivatives based on an Australian benchmark interest rate, each separately asked a New York federal judge Monday to reconsider his recent decision to dismiss most of the claims.

  • December 11, 2018

    Ex-OptimisCorp Figures Fight Axing From Chancery Suit

    An attorney for three former directors of health care software firm OptimisCorp argued Tuesday that the company shot down part of its own argument that competitive conflicts disqualify them from serving as stockholder plaintiffs in a suit against the company.

  • December 11, 2018

    VW Slams Bondholder's Bid To Redo Emissions Fraud Suit

    Volkswagen has told a California federal judge that a bondholder cannot tack on insider trading claims to a proposed class action alleging it was duped into buying overpriced bonds based on misleading offering documents concealing the German automaker’s 2015 diesel emissions scandal.

  • December 11, 2018

    Venezuela Breached Deal Over $1.2B Award, Crystallex Says

    Venezuela has breached its settlement with Crystallex International Corp. relating to a $1.2 billion arbitral award issued after Venezuela expropriated its investments, the Canadian miner alleged Tuesday, signaling its intent to forge ahead with efforts to seize and sell shares in Citgo Petroleum Corp.'s parent company.

  • December 11, 2018

    Ex-Deutsche Traders Fight Convictions, Cite Gov't Misconduct

    Two former traders at Deutsche Bank on Monday urged Manhattan's chief federal judge to reverse their convictions for rigging the London Interbank Offered Rate and dismiss the charges against them, arguing that prosecutors lied and hid evidence throughout the case.

  • December 11, 2018

    Fraudster's Ex-Wife Must Share Emails In Atty Tryst Case

    An Indiana court has ruled that the ex-wife of a convicted hedge fund manager, who claims that she and his defense attorney were having an affair while the attorney was representing him, must turn over all communications she had with the attorney from the time he began representing her ex-husband until the time the two got married.

  • December 11, 2018

    Accountant Seeks No Prison Time For $18M Tax Return Fraud

    An accountant found guilty of helping a venture capitalist siphon $18 million from a fund through false tax returns has told a California federal court he should serve no time behind bars despite prosecutors' request for a "significant" prison sentence.

  • December 11, 2018

    ImmunoCellular Investors Seek OK Of $1.1M Stock Hype Deal

    Investors suing ImmunoCellular Therapeutics Ltd. over an alleged illegal stock promotion scheme asked a California federal judge Monday to preliminarily approve a $1.1 million settlement nearly equal to the company's entire market capitalization.

  • December 11, 2018

    Food Co. Self-Reports Oversight Pitfall, Escapes SEC Fine

    A global cultivator of organic food has avoided penalties for failing to document substantial sales incentives for at least two years, largely because the company self-reported to the U.S. Securities and Exchange Commission, the agency said Tuesday.

  • December 11, 2018

    Pa. Judge Won't Stay Derivative UHS Overbilling Claims

    A Pennsylvania federal judge has shot down a bid to pause a cluster of shareholder lawsuits over alleged overbilling by United Health Services Inc. while both a related securities class action and an investigation into potential False Claims Act violations draw to a conclusion.

  • December 11, 2018

    SEC's Clayton Says Proxy Reform Is A Top Priority In 2019

    U.S. Securities and Exchange Commission Chairman Jay Clayton told a Senate panel on Tuesday that the SEC will move forward on reforms to the proxy voting process in 2019 that would benefit retail investors, though some senators urged the SEC to rein in stock buybacks instead.

  • December 11, 2018

    GNC Investors Can't Revive Securities Suit In 3rd Circ.

    GNC knocked down a proposed securities class action accusing the retailer of misleading investors about nutrition supplements that contained unlawful ingredients after the Third Circuit found Tuesday that the plaintiffs have not sufficiently alleged that company executives were knowingly or recklessly deceptive.

  • December 11, 2018

    Endo Must Face Stock-Drop Claims In Opioid Safety Suit

    Endo International PLC and several of its executives must face an investor suit alleging the company knowingly misrepresented the safety of its Opana opioid, leading to a significant stock drop when the drug was forcibly removed from the market, after a Pennsylvania federal judge said Monday that the shareholders sufficiently pled their claims.

  • December 11, 2018

    FCA's Bailey Sees US Crackdown On ICO Market As Model

    European regulators should get tougher on policing of initial coin offerings, the chief executive of the Financial Conduct Authority said Tuesday, as he pointed to recent enforcement action taken by the U.S. Securities and Exchange Commission to protect consumers.

Expert Analysis

  • Modernizing The Variable Contract Disclosure Regime

    Steve.Roth_print (1).jpg

    A new proposal by the U.S. Securities and Exchange Commission represents a major step forward in updating the disclosure and delivery requirements imposed on the variable insurance products industry. Embracing the new regime, however, will take some work and is not without certain challenges, say attorneys with Eversheds Sutherland.

  • A New, Focused Regulatory Agenda For The SEC

    Richard Marshall

    The U.S. Securities and Exchange Commission's regulatory agenda for the coming year — announced last week — is not excessively long, which means Chairman Jay Clayton takes it seriously and intends to act on it, says Richard Marshall of Katten Muchin Rosenman LLP.

  • Opening Comments: A Key Strategic Decision In Mediation

    Jann Johnson

    Opening comments by parties in mediation that are made with the proper content and tone can diffuse pent-up emotion and pave the way for a successful resolution. But an opening presentation can do more harm than good if delivered the wrong way, say Jann Johnson and William Haddad of ADR Systems LLC.

  • 2018 In Review: Significant White Collar Developments At DOJ

    Jason Jones

    As the year comes to a close, attorneys at King & Spalding LLP look back at a few of the most notable developments at the U.S. Department of Justice, including corporate monitor guidance, a False Claims Act policy shift, foreign exchange prosecutions, cryptocurrency fraud and international cooperation developments.

  • Walters Case Commands Tougher Cure For Gov't Misconduct

    Harry Sandick

    In U.S. v. Walters, a Second Circuit panel determined last week that professional gambler William Walters was not prejudiced by repeated FBI leaks of confidential grand jury information. There is a risk that the government may draw the wrong conclusion from this decision, say Harry Sandick and Danielle Quinn of Patterson Belknap Webb & Tyler LLP.

  • Top 10 Whistleblowing And Retaliation Events Of 2018

    Steven Pearlman

    This year saw significant changes in the landscape of whistleblower and retaliation law, including a game-changing decision from the U.S. Supreme Court and the three largest bounty awards issued in the history of the U.S. Securities and Exchange Commission, say Steven Pearlman and Meika Freeman of Proskauer Rose LLP.

  • Will High Court Avoid Deadlock In Lorenzo?

    Susan Hurd

    Oral argument in Lorenzo v. U.S. Securities and Exchange Commission revealed clear divisions within the U.S. Supreme Court on the type of conduct that forms the basis of liability under Rule 10b-5, say attorneys with Alston & Bird LLP.

  • Blockvest Ruling Reminds Token Issuers To Push Back

    Michael Dicke

    Digital token issuers caught up in the onslaught of U.S. Securities and Exchange Commission investigations finally received some good news last month regarding token sales’ exposure to federal securities laws. The decision in SEC v. Blockvest is encouraging for a few reasons, say Michael Dicke and Eric Young of Fenwick & West LLP.

  • Opinion

    Why We Need Anti-Money Laundering Whistleblower Awards

    Eric Havian

    The recent Mossack Fonseca indictments and Deutsche Bank raid would not have been possible without the whistleblower behind the Panama Papers leak. But there is no incentive for rooting out the type of criminal money laundering revealed here, creating a large enforcement gap, say Eric Havian and Michael Ronickher of Constantine Cannon LLP.

  • Breaking Down SEC’s Risk-Based Exam Initiatives For Funds

    Vincente Martinez

    The U.S. Securities and Exchange Commission last month announced a series of examination initiatives focused on practices and risks relevant to mutual funds and exchange-traded funds. Attorneys with K&L Gates LLP offer takeaways for fund complexes conducting annual compliance reviews.