Securities

  • October 23, 2017

    BREAKING: HSBC Exec Convicted Of Forex Fraud

    A Brooklyn federal jury on Monday convicted former HSBC foreign currency exchange executive Mark Johnson of leading a scheme to defraud Scottish oil and gas developer Cairn Energy PLC by ramping up the price of British pounds sterling ahead of a $3.5 billion forex deal.

  • October 20, 2017

    4 Qualcomm Execs Escape Investor Suit Over Faulty Chip

    Four Qualcomm Inc. executives escaped allegations they rushed a defective mobile chip to market after a California federal judge on Friday trimmed investors’ class action lawsuit, ruling they failed to prove the tech giant’s top brass lied about the chip in a way that cost shareholders money.

  • October 20, 2017

    SunEdison Ch. 11 Plan Foes Seek Info On Rights Offering

    Two affiliated investors accusing SunEdison Inc. of using an exit financing agreement to buy creditor support for its Chapter 11 plan asked a New York bankruptcy court on Thursday to compel the renewable energy giant to hand over documentation related to the deal.

  • October 20, 2017

    Greenberg's Co. Asks High Court To Hear AIG Bailout Row

    The company led by former American International Group Inc. CEO Maurice "Hank" Greenberg urged the U.S. Supreme Court to review an appeals court’s decision that found the firm lacked standing to pursue claims against the federal government over the 2008 bailout of AIG, saying the decision amounts to an “egregious injustice.”

  • October 20, 2017

    US Trustee Waves Off Request For Seadrill Equity Committee

    The U.S. government's bankruptcy watchdog said Thursday there is no need to appoint a committee to represent the interests of Seadrill Ltd. shareholders in the company's Chapter 11 proceedings since no evidence has been provided that they might receive substantial recoveries.

  • October 20, 2017

    Investors Say Skechers Overstated Projected Sales Growth

    A Skechers investor hit the shoe company with a putative stock-drop class action in New York federal court Friday, alleging it overstated its projected sales growth despite knowing that a slowdown at a port would hurt its shipping abilities, ultimately causing shares to fall 31.5 percent.

  • October 20, 2017

    Deutsche Bank Trader Scores Hearing On DOJ Case Taint

    The government will have to prove that its indictment for one of two former Deutsche Bank traders in a Libor-rigging suit wasn't based on testimony compelled by U.K. authorities, according to a New York federal judge's finding that a lawyer may have tainted the case.

  • October 20, 2017

    Subprime Auto Loan Co. Execs Get Jail Time For $11M Fraud

    Two Massachusetts men were sentenced to prison by a federal judge Friday over an $11 million fraud scheme in which they falsely told investors that their subprime auto loan company could accept tax-advantaged retirement account funds.

  • October 20, 2017

    Fannie Owners Ask Justices To Revive Conservatorship Fight

    Shareholders in Fannie Mae and Freddie Mac have asked the U.S. Supreme Court to save their challenge to the federal government’s conservatorship of the companies that has left their stock almost worthless, saying the D.C. Circuit’s rejection of their case set a dangerous precedent.

  • October 20, 2017

    Investor Sues McKesson Over Opioid Oversight Fines

    A shareholder of pharmaceutical company McKesson Corp. filed a derivative suit in Delaware recently saying the company’s board failed in its oversight of opioid sales even after incurring millions in fines for previous compliance failures.

  • October 20, 2017

    Tech Expert Gets 16 Months In Bitcoin Bank Bribery Scheme

    A tech expert who was convicted in a scheme to co-opt a credit union to process illegal bitcoin-dollar exchanges was sentenced Friday to 16 months in prison by a New York federal judge, who granted him a “substantial variance” from the guidelines for his relatively small role and positive personal characteristics.

  • October 20, 2017

    Firms Vie For Top Plaintiff Spot In Del. Tangoe Deal Suit

    Two groups of law firms were vying for the lead plaintiff’s counsel spot Friday in the Delaware litigation connected to Tangoe Inc.’s $256 million buyout, with a three-firm group led by Heyman Enerio Gattuso & Hirzel LLP competing with Andrews & Springer LLC and Robbins Geller Rudman & Dowd LLP.

  • October 20, 2017

    Ex-Katten Atty Betrayed Client, Feds Say As Trial Starts

    Former Katten Muchin Rosenman LLP partner Evan Greebel's conspiracy trial began in Brooklyn federal court Friday with accusations he betrayed his pharmaceutical company client's trust through a greedy plot with Martin Shkreli, the company's then-CEO who was convicted of securities fraud in August.

  • October 20, 2017

    Judge OKs LendingClub Investor Class, Competing State Suit

    Investors in LendingClub Corp. who accused the online lender of stock fraud were recognized as a class in California federal court on Friday, but the judge allowed a competing state-court case to advance despite his skepticism that it would result in a better outcome for investors.

  • October 20, 2017

    Stock Analyst Pleads Guilty In Insider Trading Case

    A former managing director at Zacks Investment Research has pled guilty to one count of securities fraud in Illinois federal court after prosecutors accused him of purchasing stock in companies he covered in his research reports before those reports were publicly released.

  • October 20, 2017

    Saxena White To Lead Consolidated HD Supply Investor Suit

    A proposed class of investors accusing HD Supply Holdings Inc. and its top brass of misleading them about the industrial distributor’s success in recovering from inventory setbacks will be led by Saxena White PA in a suit that was consolidated by a Georgia federal judge on Thursday.

  • October 20, 2017

    Calif. Couple Charged With EB-5, Identity Fraud

    A California couple has been indicted on visa fraud and identity theft charges for allegedly swindling the federal government by faking investment forms and creating phantom employees to create the illusion that their companies were viable entities under the EB-5 program, the U.S. Department of Justice announced Thursday.

  • October 20, 2017

    GAO Leveraged Loan Decision Puts Guidance In Doubt

    A federal government watchdog’s Thursday determination that longstanding guidance on underwriting for leveraged loans could be overturned by Congress has thrown an element of uncertainty into the regulatory process that could go beyond the financial sector, experts say.

  • October 20, 2017

    SEC Says Charity President Committed $9M Securities Fraud

    The U.S. Securities and Exchange Commission on Thursday sued the financial adviser to an education and health care foundation established by an elderly woman in Manhattan federal court, alleging he stole $9 million from the charity after becoming its president upon her death.

  • October 20, 2017

    Steptoe Hires Ex-Federal Prosecutor For DC Office

    Steptoe & Johnson LLP has added a former federal prosecutor and ex-Bradley Arant Boult Cummings LLP partner with expertise in economic sanctions and anti-money laundering regulation to its Washington, D.C., office.

Expert Analysis

  • Financial Crisis Anniversary

    The Inside Counsel Revolution

    Ben Heineman

    The role of the general counsel inside the corporation has significantly grown in importance, with the GC now often replacing the senior partner in the outside law firm as the primary counselor for the CEO and the board. This inside counsel revolution was given great impetus by the financial crisis that started 10 years ago, says Ben Heineman Jr., former senior vice president and general counsel of General Electric Co.

  • SEC Goes Global, Again

    Brian Neil Hoffman

    The U.S. Securities and Exchange Commission has not been shy about enforcing the Foreign Corrupt Practices Act globally. But a recent case against Mexican homebuilding company Desarrolladora Homex and its executives makes clear that the SEC will not hesitate to enforce against foreign companies other provisions of the federal securities laws as well, says Brian Neil Hoffman of Holland & Hart LLP.

  • NY Commercial Division Rule Changes Promote ADR Use

    Christopher Palermo

    Recent rule changes in the Commercial Division of the Supreme Court of New York are the latest of several efforts made to foster greater use of mediation and to institutionalize alternative dispute resolution, says Christopher Palermo, a litigation partner at Bleakley Platt & Schmidt LLP who serves on the Commercial Division Advisory Council.

  • Bylaw Response To ‘Placeholder Slate’ Tactic Is Unproven

    Richard Grossman

    In the past year, more than 50 publicly traded companies have amended their bylaws to address the potential for a so-called “placeholder slate” of directors nominated by activist shareholders. However, neither the bylaw amendments nor the placeholder-slate tactic has been tested in court, leaving their ultimate fate undetermined, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • How Arbitrators Maintain Proportionality In Discovery

    Richard Seymour

    There has been much discussion of discovery proportionality in federal litigation since the December 2015 changes to Civil Rule 26. But arbitrators have long used procedures to simplify the discovery process that courts have only recently begun to adopt, says attorney and arbitrator Richard Seymour.

  • The Law Firm CFO’s Role In The Strategic Planning Process

    Tyler Quinn

    Today's law firm chief financial officer should be involved in many areas beyond traditional financial management, including operations, risk management and information technology. He or she can support strategic planning throughout the process, from development of the plan to its implementation, measurement and eventual evolution, say Tyler Quinn and Marc Feigelson of Kaufman Rossin PA.

  • SEC's Disclosure Proposal Is A Step In The Right Direction

    Nicolas Grabar

    Recently proposed changes to the U.S. Securities and Exchange Commission’s disclosure requirements could signal a trend to emphasize quality over quantity and principles-based rather than prescriptive rules, which would benefit U.S. public companies and investors alike, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Law Firms Must Transition To An Industry Sector Approach

    Heidi Gardner

    Clients are beginning to expect and demand that their external lawyers provide advice tailored to the client's industry. Aside from this, law firms should want to move toward a sector approach because industry-focused groups are a natural place for cross-practice collaboration to flourish, say Heidi Gardner and Anusia Gillespie of Harvard Law School.

  • AML For Broker-Dealers: Takeaways From SEC Enforcement

    Jesse Morton

    The U.S. Securities and Exchange Commission recently started regularly using Rule 17a-8 under the Securities and Exchange Act as a tool to enforce anti-money laundering deficiencies with broker-dealers. These enforcement actions offer a number of key takeaways that may help broker-dealers enhance their AML compliance program, says Jesse Morton of Stout Risius Ross LLC.

  • Series

    Judging A Book: Kozinski Reviews 'The Judge'

    Judge Alex Kozinski

    In their new book, "The Judge: 26 Machiavellian Lessons," do Ronald Collins and David Skover prove their thesis that hypocrisy is the key to judicial greatness? Some of the examples they present are hard to dispute, says Judge Alex Kozinski of the Ninth Circuit.