Securities

  • January 20, 2017

    Chancery Tosses Claims Over Alleged UPS Cigarette Scheme

    A Delaware Chancery judge late Thursday threw out derivative claims accusing United Parcel Service Inc. directors of faulty oversight that led to an alleged scheme to haul untaxed cigarettes, ruling the suing shareholders hadn’t shown it would have been futile to take the claims to the company’s board.

  • January 20, 2017

    Societe Generale Owes $50M For Lying About $780M In RMBS

    Paris-based bank Societe Generale will pay $50 million to settle claims that it lied to investors about $780 million in residential mortgage-backed securities, the U.S. Department of Justice said Friday.

  • January 20, 2017

    Cosmetics Co. Merger Suit Settled With $5.6M For Investors

    A $5.6 million settlement to resolve class claims brought by the shareholders of Physicians Formula Holdings Inc. over an ignored merger offer in 2012 received the approval of the Delaware Chancery Court on Friday.

  • January 20, 2017

    Credit Suisse, UBS Can't Ditch Credit Unions' RMBS Claims

    A Kansas federal judge has refused a bid by UBS Securities LLC and Credit Suisse Securities USA LLC to ditch claims in suits alleging the banks knowingly sold toxic mortgage-backed securities, saying that the pair could be liable for misstatements in post-sale prospectus supplements.

  • January 20, 2017

    Morgan Stanley, UBS Must Provide ISDAfix Gov't Probe Docs

    A New York federal judge on Friday ordered BNP Paribas, ICAP, Morgan Stanley and UBS to hand over documents they provided to government investigators regarding fixing the ISDAfix benchmark rate, which is used to set terms for swaps transactions, to a pension fund bringing a potential class action over the alleged manipulation.

  • January 19, 2017

    Mass. Firm Graves Can't Nix Stock-Buy Malpractice Suit

    Massachusetts law firm Graves Law Office PC can't escape a suit brought by investors in telecommunications company ELM One, an Illinois federal judge ruled Thursday, in a case alleging the firm was negligent in representing the plaintiffs, as the lead attorney was also the director of ELM One and thus had a conflict of interest.

  • January 19, 2017

    Del. Libel Claims Go Forward In Board 'Fight Letter' Suit

    A pared-down libel suit will go ahead against an association battling another investor group for control of a telecommunication license investment company, under a Delaware Chancery Court ruling Thursday that rejected a defense based on a law limiting “strategic” lawsuits.

  • January 19, 2017

    Dallas Court Blocks Suit Over Pay For Paxton Prosecutors

    A Texas appellate court on Wednesday again blocked a real estate developer’s lawsuit challenging an hourly rate payment structure for special prosecutors pursuing felony securities fraud charges against Texas Attorney General Ken Paxton, finding his claims moot and not ripe.

  • January 19, 2017

    House, SEC End Health Care Insider Trading Subpoena Row

    The House Ways and Means Committee and the U.S. Securities and Exchange Commission have officially ended their battle over the latter’s bid to subpoena an erstwhile committee staffer in a health care insider trading probe, just two months after the committee dropped its appeal.

  • January 19, 2017

    Fitbit Still Can’t Shake Shareholder Suit

    A California federal judge on Thursday rejected Fitbit Inc.’s renewed bid to duck a proposed shareholder class action alleging the company hid problems with its fitness tracking technology and inflated its stock prices, saying the investors had shown enough to proceed.

  • January 19, 2017

    7th Circ. Upholds Sentinel CEO's 14-Year Prison Term

    The Seventh Circuit won’t give former Sentinel CEO Eric Bloom a break on his 14-year prison sentence, the court ruled Thursday, saying it found ample evidence to support the jury’s conclusion Bloom used his Illinois investment firm to operate a $666 million fraud.

  • January 19, 2017

    Chancery Nixes Claims Over $10M Payout For Ex-Mattel CEO

    A Delaware Chancery judge on Thursday threw out derivative claims connected to the $10 million severance payment received by former Mattel CEO Bryan Stockton when he left the company, compensation that suing shareholders claimed Stockton was not entitled to under the company’s executive severance plan.

  • January 19, 2017

    Jason Galanis Pleads Guilty In $60M Tribal Bond Scheme

    Inveterate white collar fraudster Jason Galanis faces up to 30 years in prison after pleading guilty in a New York federal court Thursday to securities fraud and conspiracy charges and hopes, while he’s awaiting sentencing, to be able to keep teaching business courses to fellow inmates.

  • January 19, 2017

    CFTC Fines Citigroup $25M For Spoofing

    Citigroup Global Markets has agreed to pay a $25 million fine to settle charges it sought to manipulate the market for U.S. Treasury futures by placing thousands of spoof orders, the U.S. Commodity Futures Trading Commission said Thursday.

  • January 18, 2017

    Indicted CEO Can't Escape Securities Fraud Charges

    A New York federal judge on Wednesday refused to toss criminal securities fraud and money laundering charges against private equity CEO Benjamin Wey, and said the court would rule on his effort to suppress evidence seized during government searches after a hearing next week.

  • January 18, 2017

    Jury Blocks Stanford Receiver's $88M Clawback Claim

    A Texas federal jury on Wednesday found billionaire Gary Magness acted in good faith when taking out $88.2 million in loans from a bank affiliated with R. Allen Stanford’s $7 billion Ponzi scheme, blocking a clawback claim by the receiver for the Stanford fraud.

  • January 18, 2017

    Med Device Co. Pays $14M Over Accounting, FCPA Violations

    Texas-based medical device company Orthofix International will pay $14 million in disgorgement and penalties and admit wrongdoing for improperly booking revenue and paying off Brazilian doctors to boost sales, the U.S. Securities and Exchange Commission said Wednesday.

  • January 18, 2017

    Del. Justices Kick Wal-Mart Investor Suit To Chancery

    The full Delaware Supreme Court on Wednesday criticized the lack of coordination between investors’ attorneys from two separate suits targeting an alleged Wal-Mart Mexico bribery scandal, ordering a lower court to contemplate whether one shareholder group’s rights were violated by the other’s case.

  • January 18, 2017

    NJ Atty Escapes Default In Energy Co.'s Malpractice Suit

    A New Jersey attorney accused of negligently handling a financial deal for an Idaho energy company escaped a default judgment Tuesday when a federal judge ruled that although the lawyer may have been culpable for failing to appear in the case, the matter should still be decided on the merits.

  • January 18, 2017

    GM Pays $1M Fine Over Ignition Switch Accounting

    General Motors agreed to pay a $1 million fine to the U.S. Securities and Exchange Commission to settle charges its accountants weren’t promptly informed of the defective ignition switches and, therefore, failed to properly assess the defect would lead to a recall, the agency announced Wednesday.

Expert Analysis

  • Life Settlements Industry: 2016 In Review

    Brian T. Casey

    Last year saw several large portfolio trades in the tertiary life settlements market, and the industry faced cost of insurance increases by several major companies. Brian Casey and Thomas Sherman of Locke Lord LLP discuss 2016's most important life settlements court cases from all around the country.

  • ConAgra Opinion May Repair Ascertainability Circuit Split

    Fred Taylor Isquith

    In its systematic, careful and Rule 23-specific opinion in Briseno v. ConAgra, the Ninth Circuit found a way to eviscerate the Third Circuit’s views on “ascertainability.” This important opinion may not end the debate, but it may engender new thinking from the Third and Fourth Circuits, says Fred Taylor Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • Another Jurisdiction, Another Disclosure Settlement?

    Sean J. Griffith

    A year after the Delaware Chancery Court announced in Trulia that the paragon of nuisance settlements — the “disclosure only” settlement — would no longer be welcome, deal litigation is still common and, increasingly, it is avoiding Delaware. This is because of the failure of the forum-selection solution advertised in Trulia, says professor Sean Griffith of Fordham University School of Law.

  • How Litigation Funding Is Bringing Champerty Back To Life

    John H. Beisner

    While some courts have declined to apply the common-law doctrine of champerty to invalidate third-party litigation funding agreements, two recent rulings by appellate courts in New York and Pennsylvania have brought renewed attention to champerty principles, casting doubts on the legality of certain forms of third-party litigation funding, say John Beisner and Jordan Schwartz of Skadden Arps Slate Meagher & Flom LLP.

  • The Need For A Limitations Period On SEC Disgorgement Claims

    Daniel McCaughey

    The U.S. Supreme Court recently granted certiorari in U.S. Securities and Exchange Commission v. Kokesh to review whether civil enforcement claims brought by the SEC for the remedy of disgorgement are subject to any statute of limitations. Attorneys with Ropes & Gray LLP examine the significance of the statute of limitations question, especially for private equity firms.

  • Attracting And Retaining The Millennial Lawyer

    Christopher Imperiale

    Instead of trying to change the new workforce to follow a law firm's existing processes and procedures, perhaps it's time for firms to start changing their processes and procedures to better accommodate the mentality of this next generation of lawyers, says Christopher Imperiale, a law firm adviser with Berdon LLP.

  • Expect Continued Aggressive Enforcement Under Bharara

    Nicholas Lewis

    The beginning of 2017 brings with it significant changes to the government as a whole and the U.S. Department of Justice in particular, but one constant in this time of change is the U.S. Attorney’s Office for the Southern District of New York. Recent developments reflect a seal of approval for that office’s aggressive enforcement approach under Preet Bharara, says Nicholas Lewis of McGuireWoods LLP.

  • Pay-To-Play Lessons From This Week's SEC Settlements

    Charles Borden

    The U.S. Securities and Exchange Commission’s settlements with 10 investment advisory firms relating to violations of the SEC’s pay-to-play rule may be a preview of things to come. Although none of the 10 cases announced Tuesday involved a major penalty, the real economic cost of the violations is likely to be much higher, say attorneys with Allen & Overy LLP.

  • It’s Time To Change The Law Firm Business Model

    Lucia Chiocchio

    Every year, statistics reveal very little change in the number of women and minorities in the ranks of partnership. So how do law firms change this painfully slow rate of progress? It takes more than adding a diversity policy or a women’s leadership program to the current law firm business model, says Lucia Chiocchio, co-chair of Cuddy & Feder LLP's telecommunications and land use, zoning & development groups.

  • The International Scope Of SEC’s Whistleblower Program

    Vincent H. Cohen Jr.

    Around the world, corporate insiders are taking note of the significant awards issued by the U.S. Securities and Exchange Commission's whistleblower program and are more willing than ever to report their perceptions of corporate misconduct. This is an unmistakable call to action for multinational companies, say attorneys with Dechert LLP.