Securities

  • August 16, 2017

    Facebook Says Video Data Correction Was Mistake, Not Fraud

    Facebook Inc. urged a California federal judge Tuesday to throw out a shareholder suit accusing the social media giant of intentionally reporting wrong video advertising information, saying the suit was over a mistake, not securities fraud.

  • August 16, 2017

    Ex-Bankrate Execs Settle SEC's Accounting Scheme Claims

    A New York federal court on Wednesday signed off on settlements between the U.S. Securities and Exchange Commission and two former Bankrate Inc. executives in a suit accusing them of improperly inflating earnings to meet analysts’ predictions for the personal finance information company.

  • August 16, 2017

    DC Atty Says SEC Suit Over Brother's Scheme Is 'Flawed'

    A Washington, D.C., lawyer-turned-real estate agent whom the U.S. Securities and Exchange Commission has accused of helping out with her brother’s $14.5 million Ponzi scheme asked a Massachusetts federal judge on Tuesday to toss the agency’s complaint, calling it “fatally flawed.”

  • August 16, 2017

    Insurers Say Kokesh Means JPMorgan Can't Get $300M

    Insurers looking to get out of paying roughly $300 million to JPMorgan Chase & Co. for settlement costs that Bear Stearns paid in a U.S. Securities and Exchange Commission deal asked a New York state judge Wednesday to revive the lawsuit they lost, citing the U.S. Supreme Court’s recent finding in Kokesh that disgorgement is a penalty.

  • August 16, 2017

    Compliance Adviser Settles SEC Case For $30K, Suspension

    A North Carolina compliance consultant has struck a deal to resolve U.S. Securities and Exchange Commission allegations that his work as chief compliance officer for two investment advisory firms led to their failure to file timely and accurate disclosure reports, the agency said Tuesday.

  • August 16, 2017

    Bank Wants Defunct Airplane Co.'s $23.3M Hoard Doled Out

    Lenders to a defunct aircraft leasing company have urged a New York federal judge to make it distribute the last $23.3 million it has on hand to its bondholders, saying the Airplanes Group’s directors have set aside money for “everything but paying their debts.”

  • August 16, 2017

    Oxbow Chancery Trial Postscript Puts Koch Atty On Stand

    An attorney for private equity investors in William I. Koch’s Oxbow Carbon LLC pressed R. Robert Pepeo, chairman of Mintz Levin Cohn Ferris Glovsky and Popeo PC, on Wednesday about alleged late-raised moves to avoid their cash-out demands, during questioning that closed out a six-day trial on the dispute.

  • August 16, 2017

    DBSI Ponzi Schemers' 9th Circ. Appeal Largely Rejected

    The Ninth Circuit affirmed the prison sentences of four men who were convicted of fraud for their roles in the DBSI Inc. Ponzi scheme on Tuesday, rejecting several challenges to jury instructions and evidence but reducing a “double-counted” $32 million restitution order by $3 million.

  • August 16, 2017

    Mizuho Says High Court Ruling Winnows Mt. Gox Claims

    A Japanese bank being sued over the collapse of the Mt. Gox bitcoin exchange told an Illinois federal court Tuesday that it should dismiss claims brought by California and Pennsylvania residents in light of a recent U.S. Supreme Court decision limiting trial courts’ jurisdiction over claims involving out-of-state parties.

  • August 16, 2017

    Feds Say Ex-BofA VP, Others Made $5M From Insider Trading

    Manhattan federal prosecutors on Wednesday said seven people have been charged for their roles in a $5 million insider trading scheme, in which a former Bank of America vice president is accused of doling out confidential merger information he obtained from the bank.

  • August 16, 2017

    DOL Has No Authority For Fiduciary Rule, DC Circ. Told

    The National Association for Fixed Annuities urged the D.C. Circuit on Tuesday to revive the group's challenge to the U.S. Department of Labor’s fiduciary rule for retirement account advisers, saying the regulation threatens to upend the fixed annuities industry and exceeds the agency’s authority.

  • August 16, 2017

    Chinese Co. Must Turn Over US Assets, Calif. Court Hears

    A Los Angeles man asked a California federal court Tuesday to let him go after a Chinese bioengineering firm’s shares in a Golden State-based company, saying they are the firm’s only U.S. assets, which could go toward an arbitral award of over 34.5 million renminbi ($5 million).

  • August 16, 2017

    Brothers Stole $855K From Investors, SEC Says

    Two brothers stole upwards of $855,000 from investors who thought they were investing in penny stock companies, investment funds and blue chip companies, the U.S. Securities and Exchange Commission recently alleged in a New York federal suit.

  • August 16, 2017

    Minn. Justices Say Medtronic Investors Can Sue Over Merger

    Medtronic Inc. investors have the right to sue the company over a $50 billion tax-inversion deal with Covidien PLC that allegedly cut their shares of the company by 30 percent and caused them to pay significant capital-gains taxes, Minnesota’s high court ruled Wednesday.

  • August 16, 2017

    EB-5 Investor Not Worried About Atty Trading With His Cash

    An Iranian man who invested with an immigration attorney accused of using the EB-5 visa program to defraud more than 200 people told an Illinois federal judge Wednesday he was not concerned by claims the attorney may have used his money to trade securities.

  • August 16, 2017

    Ex-US Atty Joins King & Spalding To Start Chicago Office

    After receiving a “tsunami of interest” from firms in the area, former U.S. Attorney Zachary Fardon said Wednesday that he has opted to return to King & Spalding LLP and help the firm open a new office in Chicago.

  • August 16, 2017

    Broker Asks 9th Circ. To Revive Barclays Dark Pool Suit

    Broker-dealer Great Pacific Securities asked the Ninth Circuit on Monday to revive a proposed class action alleging Barclays Capital Inc. misled its traditional customers about their exposure to high-frequency traders in its dark pool, saying the complaint had enough to show firms relied on Barclays’ ads about the pool.

  • August 16, 2017

    Ex-Eaton Vance Trader Gets 18 Months For Fraud

    A former Eaton Vance trader was sentenced to a year and a half in prison Wednesday in Boston federal court for stealing $1.5 million from investors.

  • August 16, 2017

    JPMorgan Loses Bid To Appeal Petters Lawsuit

    A Minnesota federal judge on Wednesday denied JPMorgan Chase & Co.’s bid for an interlocutory appeal of a failed motion to dismiss a case alleging the bank aided businessman Thomas Petters’ $3.7 billion Ponzi scheme.

  • August 16, 2017

    Wells Fargo Board Changes Not Enough, Dem Lawmakers Say

    Democratic lawmakers on Wednesday blasted Wells Fargo & Co., saying that the replacement of the embattled bank’s chairman with a former Federal Reserve governor and other board changes do not go far enough.

Expert Analysis

  • Series

    Judging A Book: Kopf Reviews Posner's 'Federal Judiciary'

    Judge Richard Kopf

    There is a wonderful sketch of Seventh Circuit Judge Richard Posner dressed in a black robe with arms outstretched as if they were the billowing wings of a lean vulture. He is kicking a human brain down a hallway and wearing a half-smile that looks for all the world like a sneer. That sketch is the perfect metaphor for both Judge Posner and his new book, "The Federal Judiciary: Strengths and Weaknesses," says U.S. District Judge Ri... (continued)

  • Lehman Ruling Sets Stage For Future Subordination Contests

    John Stigi

    The Second Circuit's determination that former Lehman Brothers employees' restricted stock units are securities is important to creditors seeking to safeguard their priority position among bankruptcy claimants, say John Stigi and Christopher Bosch of Sheppard Mullin Richter & Hampton LLP.

  • How CalPERS V. ANZ Securities Marks Gorsuch's Arrival

    Robert Long

    The 5-4 U.S. Supreme Court decision in California Public Employees’ Retirement System v. ANZ Securities was the first in which we saw Justice Neil Gorsuch’s view of securities liability — he represented the crucial fifth justice joining the majority opinion, say Robert Long of Alston & Bird LLP and Edgar Neely.

  • Why D&O Policies Should Cover Del. Appraisal Proceedings

    Peter Gillon

    Appraisal proceedings, unique to Delaware law, require acquiring corporations to pay shareholders if the price of a merger or acquisition deal is below fair market value. Fortunately directors and officers insurance might be able to cover affected companies' defense and other costs, say Peter Gillon and Benjamin Tievsky of Pillsbury Winthrop Shaw Pittman LLP.

  • Internal Investigations: 10 Ways To Be A Cyber Sleuth

    Caroline Sweeney

    Given the overwhelming complexity of today’s data environments, investigators must take advantage of a variety of technology tools to apply both tried-and-true and new analytical techniques to internal investigations. Investigators must also develop the mindset of a relentless and detailed forensic detective, says Caroline Sweeney of Dorsey & Whitney LLP.

  • A Summer Update On FCPA: Part 2

    Michael Skopets

    One factor that has likely affected the overall pace of Foreign Corrupt Practices Act enforcement under the new Trump administration — including the number and duration of open investigations — is the turnover of U.S. Securities and Exchange Commission and U.S. Department of Justice personnel, say Michael Skopets and Marc Bohn of Miller & Chevalier Chtd.

  • The Use Of Special Masters In Complex Cases

    Shira Scheindlin

    Special master appointments can be very beneficial in resolving disputes quickly, streamlining discovery, handling delicate settlement negotiations, and — somewhat surprisingly — reducing cost and delay, says retired U.S. District Judge Shira Scheindlin, now with JAMS.

  • A Plaintiff’s Guide To Discovery Proportionality: Part 2

    Max Kennerly

    Proportionality is often a question of whether discovery production has reached a point of diminishing returns, and about the marginal utility of additional discovery once the core discovery in the case has been completed. In other words, proportionality is a method to avoid going in circles or getting sidetracked, not an excuse for cutting corners, says Max Kennerly of Kennerly Loutey LLC.

  • Roundup

    Notes From A Law Firm Chief Privacy Officer

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    As more law firms become the targets of major cyberattacks, more firms may consider appointing a chief privacy officer. In this series, CPOs at four firms discuss various aspects of this new role.

  • A Plaintiff’s Guide To Discovery Proportionality: Part 1

    Max Kennerly

    In December 2015, the parts of the Federal Rules of Civil Procedure concerning proportionality in discovery were amended. The amendments changed the language defining the scope of relevance, but substantively, this remains the same as it has been for nearly 40 years, says Max Kennerly of Kennerly Loutey LLC.