• January 22, 2018

    No Bellwether For DZ Bank In Morgan Stanley RMBS Fight

    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.

  • January 22, 2018

    TD Ameritrade Adviser Misled On Options Strategy, Suit Says

    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.

  • January 22, 2018

    Dentons Attorneys Part Ways With Monex In CFTC Probe

    A team of lawyers at megafirm Dentons has suddenly withdrawn from defending the metals trading company Monex against a fraud suit in California federal court brought by the Commodity Futures Trading Commission.

  • January 22, 2018

    SEC Settles With 2 Men Accused Of $3.8M Trading Scheme

    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.

  • January 22, 2018

    Del. Chancellor Expedites IT Firm Board Meeting Suit

    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.

  • January 22, 2018

    Fund Administrator Fined Over Alleged Role In $15M Fraud

    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.

  • January 22, 2018

    11th Circ. Upholds CFTC's Win In Metal Trader Fraud Case

    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.

  • January 22, 2018

    Breitburn Shareholders Seek To Prolong Ch. 11 Plan Talks

    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.

  • January 22, 2018

    Fla. Developer Will Pay $11M To End EB-5 Fraud Suit

    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.

  • January 22, 2018

    Medtech Startup Wants Stock Back From Would-Be CEO

    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.

  • January 22, 2018

    Icahn Calls For Xerox Chief's Ouster Amid Fujifilm Rumors

    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.

  • January 22, 2018

    BP Exec's Interview Still Fair Game In Deepwater Horizon MDL

    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.

  • January 22, 2018

    Nutmeg Owner Insists He Worked In Funds' Best Interests

    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.

  • January 22, 2018

    Feds Say Ex-Audit Watchdogs Gave Inside Info To KPMG

    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.

  • January 22, 2018

    Ace Ducks Nasdaq Coverage In $26M Facebook IPO Suit

    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.”

  • January 22, 2018

    Exxon Climate Speech Claims Are Empty, AGs Say

    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.

  • January 22, 2018

    Chinese Investors Sue Over Alleged $60M EB-5 Fraud

    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.

  • January 21, 2018

    Immigration Standoff Keeps Government Shuttered

    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. 

  • January 19, 2018

    Investors Paid Inflated Fees To Nutmeg, SEC Expert Says

    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.

  • January 19, 2018

    TierOne CEO’s 11-Year, $3M Sentence Confirmed By 8th Circ.

    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.

Expert Analysis

  • How To Control Data As Technology Complicates E-Discovery

    Peter Ostrega

    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.

  • Rebutting Presumption Of Reliance: Lessons From 2nd Circ.

    Brad Karp

    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.

  • Significant 2017 Decisions Affecting Private M&A: Part 2

    Edward Deibert

    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.

  • Significant 2017 Decisions Affecting Private M&A: Part 1

    Nicholas O’Keefe

    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.

  • How The Cybersecurity Legal Landscape Changed In 2017

    Jonathan Kolodner

    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.

  • The Rise And Fall Of Statistical Sampling In RMBS Cases

    Amanda Lawrence

    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.

  • Using Section 83(i) To Take Advantage Of New Tax Code

    Marc Fosse

    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.

  • Fraud Section Under New Management: Takeaways From 2017

    Kevin Muhlendorf

    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.

  • The Challenges Of Bitcoin Financing

    Matthew Frankle

    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.

  • Key SEC Disclosure Topics For Oil And Gas Companies

    Bill Nelson

    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.