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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.”
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.
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.
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.
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.
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.
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 .
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.
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.
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.
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.
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 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.
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.
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.
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.