A New York state judge on Monday rejected German lender DZ Bank’s bid to conduct a bellwether trial in its fraud suit against Morgan Stanley over dud residential mortgage-backed securities it bought from the U.S. bank, expressing concerns that moving ahead with part of the case wouldn’t resolve things any more efficiently.
A putative class of investors sued TD Ameritrade Inc. and one of its investment advisers in Illinois federal court Friday, claiming they lost significant money in a trading strategy the company said was stable and conservative.
A team of lawyers at megafirm Dentons has suddenly withdrawn from defending the metals trading company Monex against a fraud suit in California federal court brought by the Commodity Futures Trading Commission.
The U.S. Securities and Exchange Commission has reached deals to resolve its case against two California men accused of perpetrating a $3.8 million scheme to manipulate the prices of two companies’ shares by making it appear as if third parties were trading in them, according to judgments entered in San Diego federal court on Friday.
Delaware's chancellor fast-tracked arguments Monday on a motion to compel a meeting of information technology company Avande Inc. stockholders after allegations that the company's investor-CEO improperly allowed a vendor access to Avande's intellectual property.
The U.S. Securities and Exchange Commission on Monday ordered a fund administrator to pay a $400,000 fine and more than $161,000 in disgorgement and interest to settle agency claims that it turned a blind eye to discrepancies in records related to the holdings of GL Income Beyond Fund amid fraud by one of the fund’s portfolio managers.
An 11th Circuit panel on Monday upheld a ruling that the U.S. Commodity Futures Trading Commission had established that a pair of companies and their CEO engaged in fraud by duping investors with fake promises of precious metals investments, but tossed out part of a $2.1 million restitution order.
Counsel for a committee of Breitburn Energy Partners LP shareholders seeking to block confirmation of a Chapter 11 restructuring plan that leaves the group empty-handed closed a trial over enterprise valuations on Monday, urging a New York bankruptcy judge to send the sides back to the negotiating table.
A Florida federal judge ruled Monday that a purported real estate developer and her company, EB-5 Asset Manager LLC, will have to pay a combined $11 million to end a U.S. Securities and Exchange Commission suit alleging investors were bilked out of $8.5 million they were told would qualify them for visas.
A medical technology startup filed suit in Delaware Chancery Court Monday demanding the return of a stock award from a candidate slated to become its CEO who declined the job to take a position with another company.
Two of Xerox Corp.’s largest shareholders, Carl Icahn and Darwin Deason, have released a joint statement calling for the company’s CEO to be replaced amid speculation Xerox was working on a deal with Fujifilm Holdings Corp. over control of the company.
A Texas federal judge declined on Friday to reconsider his decision to allow some investors in a suit against BP PLC over the Deepwater Horizon oil spill to proceed with claims based on the then-company president’s statements in a company magazine.
The founder of now-defunct investment adviser The Nutmeg Group LLC accused of keeping bad investment records and inflating fund values testified Monday that although he hired his family to help run the company and acted as the principal decision-maker on most matters, he didn’t think he was violating any duties or securities rules in his operation.
Federal prosecutors in New York on Monday charged three former members of the Public Company Accounting Oversight Board and three former top executives at accounting giant KPMG in an alleged scheme to use stolen confidential information to help KPMG obtain better results on audits conducted by the regulatory board.
Ace American Insurance Co. does not have to pay into a $26.5 million settlement reached between its insured Nasdaq and scores of retail investors who sued the exchange over Facebook’s bungled initial public offering, the Second Circuit said Monday, ruling an exclusion applies because the investors are “customers.”
ExxonMobil has provided no plausible evidence that climate change probes launched by the attorneys general of New York and Massachusetts amount to a politically motivated conspiracy to deprive the oil giant of its free speech rights on climate issues, the prosecutors told a New York federal judge Friday.
A proposed class of Chinese nationals on Friday accused a number of Idaho real estate companies of fraudulently obtaining over $60 million from investors by assuring them their funds would be used for “zero risk” investments in order to secure permanent green cards under the EB-5 visa program.
The Senate failed to reach a funding deal Sunday night, extending the government shutdown as both parties continued to clash over longstanding spending and immigration issues.
Fund investors of defunct investment adviser The Nutmeg Group LLC who paid more than $1 million in fees to the company did so based on the inflated value of company investment funds, an expert retained to review some of the company’s fund valuations testified Friday.
A federal appeals court on Friday rejected a challenge by the former CEO of Nebraska’s failed TierOne Bank of his conviction, 11-year prison sentence and $3.1 million fine, saying jurors and the judge who oversaw the case made the appropriate decisions.
While technology is making certain aspects of e-discovery faster and easier, it is also creating new challenges as quickly as we can provide solutions. The good news is that there are concrete steps businesses can take to address those challenges, says Peter Ostrega of Consilio LLC.
The Second Circuit's decision in Arkansas Teachers v. Goldman Sachs reminds district judges that the opportunity to introduce evidence in opposition to class certification and rebut the fraud-on-the-market presumption of reliance needs to be a meaningful one, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.
In the second installment of this three-part series, attorneys with Arnold & Porter Kaye Scholer LLP discuss lessons on fiduciary duties and director removal bylaws from the Delaware Chancery Court last year.
In the first article of this three-part series, attorneys with Arnold & Porter Kaye Scholer LLP discuss two Delaware cases with lessons on drafting working capital adjustments and fraud carveouts.
Over the last year, the existential risk posed by cyberattacks and data security vulnerabilities has become one of the top concerns for boards of directors, management, government agencies and the public. 2017 was punctuated by a series of headline-grabbing breaches, fast-moving regulatory developments around the globe, and record-breaking settlements by companies, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.
In the early days of the residential mortgage-backed securities and repurchase litigation that followed the 2008 crisis, plaintiffs’ strategy of proving their allegations through statistical sampling was highly successful. However, in recent years, a new trend has emerged, say attorneys with Buckley Sandler LLP.
Last month the Tax Cuts and Jobs Act introduced a new section of the Internal Revenue Code that provides for the deferral of taxation on certain qualified equity grants to employees of eligible corporations. Marc Fosse and Angel Garrett of Trucker Huss APC explain why qualified equity grants can be a helpful tax strategy for employees and an excellent recruiting, retention and incentive program for employers.
The U.S. Department of Justice’s "Fraud Section Year in Review" report provides a useful overview of what the Criminal Division’s largest litigating section accomplished in 2017, comparisons to years past, and important hints at what the future holds for individuals and entities whose activities come within the Fraud Section’s broad reach, say Kevin Muhlendorf and Madeline Cohen of Wiley Rein LLP.
As the price of bitcoin continues to rise, so does the demand for financing secured by bitcoin. Lenders need to ensure they are complying with existing law — law that did not develop with bitcoin in mind, including the Commodity Exchange Act, say Matthew Frankle and Nora Wong of Greenberg Traurig LLP.
Comment letters sent last year to oil and natural gas exploration and production companies by the U.S. Securities and Exchange Commission indicated several major areas of concern regarding such companies’ disclosures. Most of the SEC’s top concerns remain relevant this year, say attorneys with Haynes and Boone LLP.