Securities

  • February 07, 2023

    Masimo Rolls Back Board Control Shields Targeted In Del. Suit

    Faced with a sudden court setback, Masimo Corp. has quietly rolled back bylaw amendments targeted by a hedge fund's Delaware Court of Chancery suit accusing the medical monitoring device giant of adopting improper and costly poison pill and change of control measures.

  • February 07, 2023

    BREAKING: Ex-Coinbase Employee Cops To Insider Trading

    A former Coinbase Global Inc. product manager pled guilty Tuesday to buying digital tokens based on confidential information about the exchange's upcoming listings, notching a win for Manhattan federal prosecutors in what's billed as the first-ever cryptocurrency insider trading prosecution.

  • February 06, 2023

    Elon Musk Deserves Credit For Tweet Trial Win, Attys Say

    The jury verdict clearing Elon Musk of securities fraud over his Tesla "take private" tweets surprised lawyers interviewed by Law360 on Monday, who pointed to a confusing verdict form, a complex fact pattern and Musk's confident turn on the witness stand as factors that likely contributed to the Tesla CEO's victory.

  • February 06, 2023

    SEC Accused Of Overreach In Coinbase Insider Trading Case

    A former Coinbase product manager and his brother accused the U.S. Securities and Exchange Commission on Monday of trying to regulate the digital assets industry by enforcement and argued that its allegations of crypto insider trading are legally deficient.

  • February 06, 2023

    Bankrupt Lender Genesis To Sell Trading Arm In Restructure

    Bankrupt cryptocurrency lender Genesis agreed Monday to the sale of its sister trading firm, the equitization of a $1.1 billion promissory note it received and the refinancing of loans it's owed by its parent company, Digital Currency Group, as part of an agreement with DCG, certain creditors and crypto exchange Gemini in its Chapter 11 restructuring.

  • February 06, 2023

    Bed Bath & Beyond Plans Offering As Bankruptcy Looms

    U.S. home goods retailer Bed Bath & Beyond said in a Monday securities filing that it plans to raise hundreds of millions of dollars through a sale of stock and warrants to pay off outstanding debt, a move that comes as the once-dominant retailer faces the prospect of bankruptcy.

  • February 06, 2023

    Judge Approves $26M Deutsche Bank Deal Over Epstein Ties

    A New York federal judge gave final approval on Monday to a $26.3 million settlement between Deutsche Bank and a class of its investors, resolving claims that the bank caused its share price to drop through dealings with bad actors such as Jeffrey Epstein.

  • February 06, 2023

    FTX Asks Politicians To Return Donations By Month's End

    Bankrupt cryptocurrency exchange FTX Trading Ltd. is reaching out to political figures and groups that received donations from the company's leadership prior to its collapse, demanding recipients return the funds by the end of the month or face legal action.

  • February 06, 2023

    Shareholder Sues Medical Exec. Facing Murder-For-Hire Trial

    An investor has sued Los Angeles-based Enochian Biosciences Inc. and its directors on claims they ignored serious red flags as a co-founder put together a web of lies about his own credentials and inventions before being arrested in a coast-to-coast murder-for-hire plot and tanking the company's stock by 50%.

  • February 06, 2023

    Pomerantz To Lead Avalara Shareholder Suit Over $8.4B Deal

    A Seattle federal judge on Friday appointed Pomerantz LLP lead counsel in a proposed class action accusing tax software company Avalara Inc. executives of misleading shareholders about its financial health in a bid to convince them to approve Vista Equity Partners' $8.4 billion acquisition of the company.

  • February 06, 2023

    Software Company Seeks Exit From Investors' $480M Suit

    A restaurant software company denied investors' claims that it used partnerships with Subway stores as an example of its success while knowing its relationship with the fast-food franchise would be ending, claiming it warned them that customers might stop using its software modules.

  • February 06, 2023

    Celsius Shareholders Seek Shield From Customer Claims

    Shareholders of a Celsius Network affiliate Monday argued to a New York bankruptcy judge that the cryptocurrency platform's customer service agreements insulate the affiliate's assets from customer claims in the company's Chapter 11.

  • February 06, 2023

    Eli Lilly Worker's Proposed Class Suit Over 401(k) Fees Nixed

    A worker's proposed class action claiming fiduciaries of Eli Lilly and Co.'s 401(k) retirement plan illegally allowed excessive record-keeping fees can't go forward, an Indiana federal judge ruled, saying a recent Seventh Circuit decision doesn't support the allegations under the Employee Retirement Income Security Act. 

  • February 06, 2023

    House Republican Leader Sets Up ESG Working Group

    Republican lawmakers in the House have set their sights on "far left" investment that takes into account environmental, social and governance practices, with the establishment of a working group tasked with examining ways to curb overregulation and hold asset managers and other market players accountable.

  • February 06, 2023

    FTX, Trustee Urged To Negotiate On Ch. 11 Examiner

    Bankrupt cryptocurrency exchange FTX Trading Ltd. and the Office of the U.S. Trustee will discuss resolving the trustee's motion to appoint a Chapter 11 examiner in the company's insolvency case after a Delaware federal judge urged the parties Monday to come to a resolution without court intervention.

  • February 06, 2023

    Robinhood Traders Urge 11th Circ. To Save Meme Stock Suit

    A group of retail investors alleging Robinhood Markets Inc. and its market maker illegally conspired to restrict trades in so-called meme stocks urged the Eleventh Circuit to revive their case, arguing they have enough facts to sketch out a plausible scheme and were wronged in a relevant market.

  • February 06, 2023

    National Enquirer Sold In Deal Built By DLA Piper, Paul Weiss

    The National Enquirer will be purchased by a joint venture between digital media holding company Vinco Ventures and ICON Publishing from magazine publisher a360 Media, with DLA Piper advising the buyer and Paul Weiss representing the seller, according to a Monday statement.

  • February 06, 2023

    Home Depot Workers Ask 11th Circ. To Revive 401(k) Suit

    Former Home Depot workers urged the Eleventh Circuit to revive a class action alleging their 401(k) plan was saddled with excessive fees and offered shoddy investment choices, arguing a lower court jumped the gun when it tossed their suit.

  • February 06, 2023

    Ex-Goldman Banker Can't Inspect Recording Device, Feds Say

    Manhattan federal prosecutors told a judge that a former Goldman Sachs banker accused of assisting in insider trading shouldn't be able to inspect the phone an alleged co-conspirator used to record their conversations.

  • February 06, 2023

    Chicago Investment Adviser Pleads Not Guilty To $683K Fraud

    A Chicago investment adviser pled not guilty Monday to charges that he swindled three clients, including two elderly men suffering from dementia, out of roughly $683,000 that he used to pay his rent and other personal expenses.

  • February 06, 2023

    Catching Up With Delaware's Chancery Court

    Bacardi and Jay-Z finally clinked glasses and resolved their long-running dispute over D'Usse cognac, a 72-year-old rule on judicial appointments got tossed, and three more electric vehicle companies asked the court to retroactively validate shares.

  • February 06, 2023

    Motley Fool Hacker Wants No Prison For Securities Fraud

    A man who admitted to hacking investment site Motley Fool to get unannounced trading picks to execute a multimillion-dollar insider trading scheme asked a New York federal judge for five years' probation, including two years of home detention.

  • February 06, 2023

    2 Firms Guide Industrial Headset Maker's $375M SPAC Merger

    Industrial wearable technology solutions company RealWear Inc., advised by Latham & Watkins LLP, and blank check company Cascadia Acquisition Corp., led by Perkins Coie LLP, said on Monday they have agreed to merge in a transaction that would take RealWear public at an estimated value of $375.5 million.

  • February 06, 2023

    FXCM Stockholders Seek Initial OK Of $6.5M Securities Deal

    FXCM investors have asked a New York federal judge to grant the first green light to a $6.5 million settlement they reached with the foreign exchange broker, resolving claims FXCM secretly traded against its own customers.

  • February 06, 2023

    Netflix Misled Investors As User Numbers Lagged, Suit Says

    Senior executives at Netflix concealed the financial effects of increased competition, account sharing and slow subscriber growth from investors, and the stock price took a massive hit last year after the company reported a drop in users, according to a federal derivative lawsuit in the District of Delaware.

Expert Analysis

  • SEC Case Is A Warning Governance Tokens May Be Securities

    Author Photo

    The U.S. Securities and Exchange Commission's complaint against crypto trader Avraham Eisenberg reinforces its position that most governance tokens are securities, meaning decentralized autonomous organizations should proceed with caution when designing their digital assets, say Arina Shulga and Jeffrey Kelly at Nelson Mullins.

  • Opinion

    Biden Admin.'s Anti-Merger Stance Is Leading To Bad Policies

    Author Photo

    A U.S. Department of Justice Antitrust Division speech reflects the Biden administration's goal to move enforcement in a markedly anti-merger direction, an approach that is leading to bad policies and enforcement decisions, says Cleary attorney David Gelfand, a former DOJ Antitrust Division official.

  • A Closer Look At Rep. Santos' Claims And Potential Charges

    Author Photo

    Skadden partner and former federal prosecutor Maria Cruz Melendez discusses Rep. George Santos' legal exposure following his alleged misrepresentations and the possible scope of investigations into his conduct — noting that if history is any indication, the congressman could face prison time if convicted.

  • A Litigation Move That Could Conserve Discovery Resources

    Author Photo

    Bennett Rawicki at Hilgers Graben proposes the preliminary legal opinion procedure — seeking a court's opinion on a disputed legal standard at the outset, rather than the close, of discovery — as a useful resource-preservation tool for legally complex, discovery-intensive litigation.

  • Litigators Should Approach AI Tools With Caution

    Author Photo

    Artificial intelligence tools like ChatGPT hold potential to streamline various aspects of the litigation process, resulting in improved efficiency and outcomes, but should be carefully double-checked for confidentiality, plagiarism and accuracy concerns, say Zachary Foster and Melanie Kalmanson at Quarles & Brady.

  • SEC's 1st Reg BI Action Spells Enforcement Challenges

    Author Photo

    The pleadings in the U.S. Securities and Exchange Commission's action against Western International Securities highlights three problems for the agency in prosecuting its first Regulation Best Interest case, including that it isn't clear what the regulation actually requires, says Justin Chretien at Carlton Fields.

  • For White Collar Practitioners, Tone Of Garland Memo Is Key

    Author Photo

    Attorney General Merrick Garland’s recent memo on prosecutorial discretion conveys more via tone than it does via directives for white collar prosecutions, signaling to rank-and-file prosecutors that they should pursue tailored justice over reflexive charging, says Monique Abrishami at Levy Firestone.

  • 3 Wobbly Defenses From Bankman-Fried's Substack Post

    Author Photo

    In an extraordinarily uncommon move, former FTX CEO Sam Bankman-Fried published on Substack his defenses to multiple civil and criminal cases, but faulty claims of noninvolvement in Alameda Research's day-to-day operations mean there's likely to be a guilty verdict at trial, says Laurel Grass at Leech Tishman.

  • Stock Buyback Excise Tax Guidance A Mixed Bag For SPACs

    Author Photo

    Recent IRS guidance on the new stock repurchase excise tax includes a welcome exception for publicly traded special-purpose acquisition companies but does not exclude redemptions in connection with a de-SPAC transaction, and further guidance is needed to clarify ambiguities around the exception's application, say Olga Bogush and Evgeny Magidenko at ArentFox Schiff.

  • Crypto Coverage After FTX Fall: Accountant And Atty Liability

    Author Photo

    The recent fall of cryptocurrency firm FTX highlights complexities regarding accounting and tax reporting for digital assets, and reveals lawyers’ potential liability exposure when providing services to crypto firms — as a result, insurers may face unintended vulnerabilities related to this nebulous landscape, say Anjali Das and Farzana Ahmed at Wilson Elser.

  • Celsius Ch. 11 Ruling Reminds Clear Contract Terms Govern

    Author Photo

    A New York bankruptcy court’s recent ruling in the Celsius case — which held that clickwrap terms and conditions made cryptocurrency assets part of the bankruptcy estate — is a reminder that relationship-governing contracts should clearly spell out the terms of an agreement, say attorneys at O'Melveny.

  • UN Conference Signals Swell In Private Sector's Green Efforts

    Author Photo

    The United Nations Biodiversity Conference, which resulted in an ambitious agreement, and other recent developments including stakeholder pressures, disclosure tools and investment opportunities appear poised to influence private sector actions on emerging nature-related issues this year, say attorneys at Kirkland.

  • 5th Circ. Confidential Witness Ruling Is A Big Change

    Author Photo

    The Fifth Circuit's recent ruling in Oklahoma Firefighters Pension and Retirement System v. Six Flags that confidential witness claims can be sufficient to establish scienter is a significant message that anonymous witness allegations should be credited, and plaintiffs should feel more confident including these claims in their securities fraud complaints, say James Christie and David Saldamando at Labaton Sucharow.

  • What To Expect From Shareholder Activism This Year

    Author Photo

    Shareholder activism in 2023 will likely see meaningful shifts caused by the emergence of new entrants to the field, the adoption of universal proxy rules and other factors, say attorneys at Cleary.

  • High Court Slack Case Not Likely To Broadly Affect Issuers

    Author Photo

    If the U.S. Supreme Court decides in Slack v. Pirani to limit claims under the Securities Act for direct listings to only the purchase of registered shares, it's unlikely to create a free-for-all environment for issuers, as some have claimed, say Susan Hurd and Madeleine Juszynski at Alston & Bird.

Want to publish in Law360?


Submit an idea

Have a news tip?


Contact us here
Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!