Securities

  • April 28, 2017

    Delfasco Can't Buy Bankrupt Conco Until 2019, 6th Circ. Says

    The Sixth Circuit on Friday rejected an appeal by shareholders of bankrupt military contractor Conco Inc. to allow its main competitor, Delfasco LLC, to purchase the company, affirming the findings of bankruptcy and district courts that the sale would violate a court-confirmed Chapter 11 reorganization plan.

  • April 28, 2017

    Paragon Offshore Pitches Another Ch. 11 Disclosure In Del.

    Paragon Offshore PLC positioned itself for a third Chapter 11 plan confirmation effort Friday, securing a Delaware bankruptcy judge’s approval for a revised disclosure and reorganization plan proposal that will give creditors control of the company and the oil driller's right to sue its corporate parent.

  • April 28, 2017

    Some Expert Testimony Allowed In SEC Funds Transfers Suit

    An Illinois federal judge on Friday told the expert witnesses in the U.S. Securities and Exchange Commission’s funds tranfers suit against defunct investment advisory outfit The Nutmeg Group LLC that they can stay on the case if they keep their testimony in the lines.

  • April 28, 2017

    Tech Co. Dodges Stock Drop Case, But Investors Get 2nd Try

    A California federal judge dismissed a proposed securities fraud class action Thursday against Extreme Networks Inc. but gave the suing investors a chance to strengthen their case, saying all the suspect statements the shareholders raised were either too vague or not actually false.

  • April 27, 2017

    Broker Settles SEC Charges Over Short-Selling Violations

    The U.S. Securities and Exchange Commission has announced that a Utah-based brokerage will pay a fine to settle allegations that it violated market structure rules in regard to its short sales.

  • April 27, 2017

    SEC Denied Quick Win Against F-Squared's Ex-CEO

    A Massachusetts federal judge refused the U.S. Securities and Exchange Commission a quick win Thursday in its suit alleging the ex-CEO of disgraced money manager F-Squared falsely advertised a top product's history, saying a jury could reasonably find he had no intent to deceive investors.

  • April 27, 2017

    NuVasive Denied Stay Of Investor Suit Over Kickback Scheme

    A California federal judge on Thursday refused NuVasive Inc.’s bid to pause to a class action alleging that it damaged shareholders by concealing a kickback scheme, saying the surgical device developer’s Ninth Circuit challenge to a class certification order doesn’t hold water.

  • April 27, 2017

    Imprisoned Real Estate Schemer Agrees To SEC Industry Bar

    A man jailed on state and federal charges for running a real estate Ponzi scheme has agreed to a request by the U.S. Securities and Exchange Commission to bar him from the securities business and increase the penalties for future violations, the agency said Thursday in Texas federal court.

  • April 27, 2017

    7th Circ. Backs 6-Year Sentence For Stock Fraudster

    A Seventh Circuit panel on Thursday upheld a six-year fraud term for investment adviser Alan Gold, saying he had given no proof that his sentence for admitting to conning 13 people out of $1.8 million was too harsh.

  • April 27, 2017

    KiOR Investors Seek OK For $4.5M Stock-Drop Deal

    A group of investors in biofuel developer KiOR Inc. asked a Texas federal court Wednesday to approve a $4.5 million settlement of class claims that the company’s CEO hid technical difficulties at the company’s first production facility.

  • April 26, 2017

    2nd Circ. Affirms Call To Toss Ship Investor’s Derivative Suit

    An investment company that sued the directors of Star Bulk Carriers Corp. for cutting deals that allegedly harmed the company’s bottom line was defeated Wednesday in the Second Circuit, which said F5 Capital failed to show that making demands of the directors would have been futile, and clarified its authority in an area where precedent was “virtually nonexistent.”

  • April 26, 2017

    Ex-RMBS Trader Jesse Litvak Again Sentenced To 2 Years

    Former Jefferies Group LLC residential mortgage-backed securities trader Jesse Litvak was sentenced Wednesday in Connecticut federal court to two years in prison, the same time he got in 2014 before an appeal and a retrial saw all but one of his convictions thrown out.

  • April 26, 2017

    Billionaire Can't Dodge Indictment In UN Bribery Case

    A New York federal judge Wednesday declined to dismiss an indictment against Chinese real estate billionaire Ng Lap Seng charging him with a plot to bribe United Nations officials to facilitate construction of a convention center in Macau, saying it is legally sufficient.

  • April 26, 2017

    JPMorgan Sheds Claims It Aided Madoff At 2nd Circ.

    The Second Circuit on Wednesday affirmed the dismissal of class allegations that JPMorgan Chase & Co. employees aided and abetted Bernie Madoff’s Ponzi scheme, agreeing with a lower court that JPMorgan’s lack of control over the scheme dooms the suit.

  • April 26, 2017

    SEC Won't Rethink 'Financial Myth Buster's' Industry Ban

    The U.S. Securities and Exchange Commission said on Tuesday that a Maryland financial adviser and radio host committed securities law violations post-Dodd Frank that warrant an industry bar against her, declining to accept supplemental briefing on a D.C. Circuit opinion that prohibited retroactive “collateral bars.”

  • April 26, 2017

    UBS Can’t Dodge Ex-Mortgage Analyst’s Whistleblower Suit

    A Manhattan federal judge has declined to end a former UBS AG mortgage analyst's lawsuit that claims he was fired for refusing to skew his mortgage-backed securities research to be more favorable to the bank, likely sending the five-year-old dispute to trial.

  • April 26, 2017

    BlackRock Pays $1.5M Over Russian ETF Violations

    A unit of BlackRock Inc. has agreed to pay a $1.5 million penalty to settle the U.S. Securities and Exchange Commission’s allegations that it failed to obtain an exemption for an exchange traded fund of Russian securities it managed, the SEC announced on Tuesday.

  • April 25, 2017

    Calif. Broker Gets 6 Months In Pump-And-Dump Scheme

    A Florida federal judge sentenced a California-based stock promoter Monday to six months in prison for his role in an alleged pump-and-dump scheme in which he and several co-conspirators issued shares in fraudulent shell companies and sold them to investors at a profit.

  • April 25, 2017

    Expedia Tech Guy Who Traded On Hacked Emails Sentenced

    A former computer technician at Expedia Inc. who pled guilty last year to snooping on executives’ emails and trading on insider information about revenues to gin up $331,000 in illicit profits was sentenced to 15 months in prison by a federal judge in Washington state Tuesday.

  • April 25, 2017

    SEC Hands Nearly $4M Award To Whistleblower

    The U.S. Securities and Exchange Commission on Tuesday handed over nearly $4 million, its 10th-highest whistleblower award to date, to an individual who alerted the agency about securities misconduct, bringing the program’s total endowment to approximately $153 million.

Expert Analysis

  • 2nd Circ. May Clarify 5th Amendment Issue In Libor Case

    Mark Racanelli

    A pending Second Circuit case raises an interesting constitutional question for practitioners whose clients are subject to parallel, cross-border white collar investigations: When someone gives compelled testimony to foreign law enforcement officials, does the Fifth Amendment bar U.S. prosecutors from using her statements, directly or indirectly, to criminally prosecute her? say Mark Racanelli and Michael Simeone of O’Melveny & Myers LLP .

  • The Mediator’s Proposal As A Tool For Litigants

    Dennis Klein

    Mediators’ proposals, which call for an unconditional and confidential acceptance or rejection, are resolving high-value disputes on a regular basis. Dennis Klein of Critical Matter Mediation examines why this is happening and the tactical implications for litigants in anticipating that a mediator’s proposal could resolve litigation.

  • Unocal Uncertainty, Other Takeaways From Paramount Gold

    Warren S. de Wied

    The Delaware Chancery Court's recent decision in Paramount Gold and Silver Stockholders Litigation highlights the open issue as to whether a post-closing challenge to deal protection devices under Unocal would survive if Corwin were applicable, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • 100 Days Of FCPA Under Trump: 10 Takeaways

    Meghan Hansen

    Since the presidential election, there has been uncertainty about the future of Foreign Corrupt Practices Act enforcement. The Trump administration's first 100 days have given some clues, say Meghan Hansen and Carolyn Wald of Latham & Watkins LLP.

  • Expectations After The Trump Administration's First 100 Days

    Jim Flood

    In its first 100 days, the Trump administration has had mixed results and may be behind where it wants to be. The biggest threat to President Donald Trump’s domestic policy agenda beyond the first 100 days is the difficulty of reconciling the Freedom Caucus Republicans, moderate Republicans and Democrats, say Jim Flood and Cari Stinebower of Crowell & Moring LLP.

  • FINRA’s Foray Into Insider Trading

    Benjamin Kozinn

    Based on a recent multiyear case against a distressed debt trader, the Financial Industry Regulatory Authority seems ready, willing and able to take a more prominent role in insider trading, say attorneys with Lowenstein Sandler LLP.

  • The Challenges For CEA Price Manipulation Plaintiffs

    Mark Young

    The recent contrasting outcomes of the regulatory and private actions against Total Gas illustrate at least one significant difference between public and private price manipulation enforcement under the Commodity Exchange Act — private plaintiffs have a difficult, and sometimes insurmountable, hurdle to overcome, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • Thinking Fast And Slow About Class Action Reform

    Michael Donovan

    Corporate interests lobbying for H.R. 985, the anti-class action bill recently passed by the U.S. House of Representatives, are the same ones that pushed the Class Action Fairness Act in 2005. That law caused most significant class actions to migrate to federal courts. Ironically, the new bill could return many class actions to state courts, says Michael Donovan of Donovan Litigation Group LLC.

  • The 9-Year Winning Streak Of Virginia ‘Rocket Docket’

    Bob Tata

    Out of 94 district courts, the Eastern District of Virginia has been the fastest civil trial docket in the country for nine straight years. Without micromanaging the process, the EDVA's judges, magistrate judges, and clerks and staff continue to perform at a stunningly efficient level, says Bob Tata of Hunton & Williams LLP.

  • What Act 170 Means For Shareholder Litigation In Pa.

    Michael Kichline

    Pennsylvania corporations should not overlook Act 170’s provisions concerning shareholder litigation, which differ from Delaware’s standards and procedures in several important respects. The newly effective law is more demanding of shareholders and deferential to the properly considered determinations of a corporation, say Michael Kichline and Stuart Steinberg of Dechert LLP.