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Asset Management
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April 24, 2025
Judge Won't Halt Auction Over Unpaid SPAC Finder's Fee
A Florida federal judge denied a cloud company's request to halt an auction of its assets to collect a $2.4 million debt, finding that iCoreConnect failed to show it would likely win claims that PIGI Solutions LLC acted as an unregistered broker-dealer when advising on its merger with a blank check company.
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April 24, 2025
FINRA Says 5th Amendment Doesn't Apply In Adviser's Case
The Financial Industry Regulatory Authority has urged a Washington, D.C., federal court to toss a financial adviser's Fifth Amendment challenge against the self-regulating watchdog of brokers, arguing it is not subject to constitutional requirements when carrying out its self-regulatory responsibilities.
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April 24, 2025
Funds Manager Raided Coffers Before Ouster, Court Told
A Texas appeals court on Thursday questioned whether multiple commercial real estate funds had taken a vote before ousting a former manager accused of helping himself to company accounts, asking during oral arguments if the funds had followed correct procedures.
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April 24, 2025
GE Investors' $362.5M Deal Gets Final OK, Attys Get $70M
A New York federal judge on Thursday gave final approval to a $362.5 million deal and awarded attorneys from Kessler Topaz Meltzer & Check LLP and Grant & Eisenhofer PA nearly $70 million in attorney fees for their work in a class action that accused General Electric Co. of fraudulently concealing cash flow problems.
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April 24, 2025
2 SPACs Join Recovering Market With $461M In New Capital
Two special purpose acquisition companies raised $461 million combined through initial public offerings in the past two days in order to pursue mergers targeting several industries, represented by three law firms, extending an uptick in SPAC offerings despite broader market volatility.
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April 24, 2025
8th Circ. Quizzes SEC About Fate Of Climate Regs
The U.S. Securities and Exchange Commission has been ordered by the Eighth Circuit to say whether it plans to withdraw or rewrite corporate climate disclosure rules that it is no longer defending in court, with the litigation surrounding the rules being put on hold at the request of several blue states until the agency discloses next steps.
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April 24, 2025
9th Circ. Backs Oppenheimer Bid To Avoid FINRA Arbitration
The Ninth Circuit unanimously affirmed Thursday a lower court's ruling blocking two Washington state couples' bid to arbitrate claims against Oppenheimer & Co. Inc. before the Financial Industry Regulatory Authority, saying the couples weren't customers of the financial services company despite getting caught up in a former Oppenheimer employee's Ponzi scheme.
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April 24, 2025
Pardon Me? Why Offers To Secure Clemency Might Be A Scam
Some white collar lawyers and consultants say their clients are increasingly being solicited by potential scammers with promises to leverage supposed White House connections to secure pardons and other forms of clemency in exchange for big fees.
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April 24, 2025
SEC Annuity Fraud Case Ends In Mixed Verdict
A federal jury cleared a Massachusetts investment adviser and his firm of two of three claims in a U.S. Securities and Exchange Commission case claiming they secretly earned commissions from clients' annuity plans.
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April 24, 2025
Mubadala, Fortress Team Up For $1B Strategic Partnership
Sovereign investor Mubadala Investment Company and private equity firm Fortress Investment Group on Thursday announced that they were furthering their partnership with a $1 billion investment focused on credit and special situations co-investment opportunities.
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April 24, 2025
Firm Fights IRS' $33M Boost To Self-Employment Income
The Internal Revenue Service wrongly subjected nearly $33 million of a New York investment firm's income to self-employment taxes by disqualifying the firm's limited partners and taxing their distributions, it alleged in two U.S. Tax Court petitions.
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April 24, 2025
Appeal Fast-Tracked In Feud Over Use Of Ex-Atty's Name
The Second Circuit has fast-tracked an appeal by a Connecticut attorney who lost a lawsuit over his former law firm's alleged unauthorized use of his name and likeness after his firing.
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April 24, 2025
Latham-Led LLR Clinches 7th Fund With $2.45B Committed
Latham & Watkins LLP-advised LLR Partners on Thursday announced that it wrapped its seventh private equity fund with $2.45 billion in tow.
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April 23, 2025
Ex-Rep Should Pay $25K For 'Sham' Lawsuit, Fla. Judge Told
A real estate holding company owner told a Florida state court judge Wednesday that he's owed about $25,000 in legal fees for defending against a "sham" contract breach lawsuit alleging he assisted officials investigating possible foreign agent crimes against a former congressman, saying the agreements at issue were declared invalid.
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April 23, 2025
Ind. Broker-Dealer Pays FINRA Fine To Settle L Bonds Claims
An Indiana-headquartered brokerage firm is the latest to resolve Financial Industry Regulatory Authority claims related to its representatives' recommendations of certain risky alternative investments like bonds offered by the now-bankrupt company GWG Holdings Inc.
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April 23, 2025
CEOs Urge SEC To Ban Political Activists' Proxy Proposals
The Business Roundtable on Wednesday urged the U.S. Securities and Exchange Commission and Congress to quickly reform the shareholder proposal process for public companies, including by banning activists' proposals relating to environmental, social and political issues, saying proxy statements have become "battlegrounds for political debates."
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April 23, 2025
Retirement Co. Hit With $38.8M Jury Verdict In ERISA Action
A New York federal jury Wednesday awarded a 27,000-member class of retirement plan participants nearly $38.8 million after finding that Pentegra Retirement Services violated federal benefits law by saddling a $2.1 billion 401(k) plan with excessive administrative fees.
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April 23, 2025
Citron Research Founder Can't Escape SEC Fraud Suit
The founder of trading advice website Citron Research and his investment advisory firm cannot escape the U.S. Securities and Exchange Commission's suit alleging they raked in $20 million by manipulating trading prices, a California federal judge ruled Tuesday, saying the complaint adequately alleges fraud.
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April 23, 2025
FINRA Acts On Entrex Application After SEC Gets Complaint
The Financial Industry Regulatory Authority has approved Entrex Carbon Market Inc.'s requests for a name change and approval of stock splits, shareholders of the carbon offset trading platform have said, although they indicated they will proceed pursuing structural reforms at the self-regulating watchdog of brokers.
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April 23, 2025
Severance Deal Bars 401(K) Suit, Whataburger Tells 5th Circ.
Whataburger asked the Fifth Circuit on Wednesday to uphold the dismissal of an ex-worker's suit claiming the company failed to trim underperforming investment funds from its $215 million retirement plan, stating the lower court correctly found a release he signed doomed his case.
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April 23, 2025
Software Co. Can't Escape 401(k) Investment Suit
A California federal judge refused to toss a federal benefits lawsuit from former ServiceNow employees alleging the cloud computing company kept an underperforming suite of target-date funds in its 401(k) plan for over a decade, finding allegations of a deficient process should proceed to discovery.
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April 23, 2025
Tech-Focused Texas Ventures SPAC Raises $200M IPO
Shares of special purpose acquisition company Texas Ventures Acquisition III began trading on Wednesday after the company raised $200 million in its initial public offering, with plans to seek out a merger with an industrial technology company.
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April 23, 2025
Silvergate Settles Securities Class Action For $37.5M In Ch. 11
The parent company of Silvergate Bank has asked a Delaware bankruptcy judge to approve a new deal to settle a securities class action for $37.5 million and resolve a slew of indemnification issues in its Chapter 11, a resolution that the debtor said would save it potentially millions of dollars in legal fees.
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April 23, 2025
Investment Fund Insists On DQing Connell Foley From Bias Suit
A Black-owned investment company asked a New Jersey federal court to overturn a magistrate judge's decision denying its bid to disqualify a Connell Foley LLP attorney from representing the state in the investment firm's bias case.
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April 23, 2025
GOP Leader Proposes Modernizing Contractor Rules
U.S. Senate Health Education Labor and Pensions Committee Chairman Bill Cassidy, R-La., on Wednesday unveiled proposals he says will modernize the independent contractor model without hindering workers' flexibility and profit opportunities, suggesting several changes Congress could take.
Expert Analysis
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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What Remedies Under New Admin's SEC Could Look Like
The U.S. Securities and Exchange Commission is likely to substantially narrow the remedies it pursues over the next few years, driven by the mounting challenges it faces in court, as well as the views of its incoming chair and fellow Republican commissioners on injunctions, penalties and disgorgement, say attorneys at Milbank.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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BlackRock Suit Highlights Antitrust Risks Of ESG
In Texas v. BlackRock, pending in Texas federal court, 13 state attorneys general are suing large institutional investors in the coal business, underscoring key reasons companies may want to alter their approach to developing and implementing policies related to environmental, social, and governance factors, especially if coordination with competitors is involved, say attorneys at Manatt.
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Suggestions For CFTC Enforcement's New Leadership
The recent change in leadership at the U.S. Commodity Futures Trading Commission presents an opportunity to reflect on past practices and consider opportunities for improvement at the commission's Enforcement Division, including in observing precedent and providing greater enforcement transparency, say attorneys at Clifford Chance.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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A Closer Look At FDX's New Role As Banking Standard-Setter
Should the new Consumer Financial Protection Bureau let stand the decision empowering Financial Data Exchange as an industry standard-setter, it will be a significant step toward broader financial data-sharing, but its success will depend on industry adoption, regulatory oversight and consumer confidence, say attorneys at Clark Hill.
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Partially Faulting Airline For 401(k) ESG Focus Belies ERISA
A Texas federal court's recent finding that American Airlines breached its fiduciary duty of loyalty, but not of prudence, by letting its 401(k) pursue environmental, social and governance investments, misinterprets the Employee Retirement Income Security Act's standard of care, says Jeff Mamorsky, a Cohen & Buckmann partner and ERISA drafter.
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Fund Names Rule FAQs Leave Some Interpretative Uncertainty
Although recently released FAQs clarify many specific points of the 2023 expansion to the Investment Company Act's fund names rule, important questions remain about how U.S. Securities and Exchange Commission staff will interpret other key terms when the end-of-year compliance date arrives, say attorneys at Dechert.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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5 Major Crypto Developments From The Trump Admin So Far
The early weeks of the Trump administration have set the stage for a significant transformation in U.S. digital asset policy by prioritizing regulatory clarity, innovation and a shift away from enforcement-heavy tactics, but many of these changes will require congressional support and progress may be gradual, say attorneys at Ropes & Gray.
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Class Actions At The Circuit Courts: February Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses five federal appellate court class certification decisions and identifies practice tips from cases involving breach of life insurance contracts, constitutional violations of inmates and more.
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Comparing 2 Pending Bills To Regulate Stablecoins
Alexandra Steinberg Barrage at Troutman analyzes the key similarities and differences between two payment stablecoin proposals currently pending in Congress — the STABLE and GENIUS acts — as both chambers are forming a working group to deliver a clear regulatory framework for digital assets and bipartisan agreement appears within reach.