Asset Management

  • August 20, 2019

    Philly Hospital Ch. 11 Case In Danger As Judge Questions DIP

    The future of a Philadelphia children’s hospital was thrown into limbo Tuesday when a Delaware bankruptcy judge said he could not approve a $65 million post-petition loan as proposed, prompting the hospital’s operator to begin last-ditch efforts to reach a new deal with its lenders.

  • August 20, 2019

    2nd Ex-JP Morgan Metals Trader Cops To Spoofing

    A former JPMorgan Chase metals trader pled guilty in Brooklyn federal court Tuesday to spoofing commodities transactions for most of his 12-year career, making him the second trader at the bank to admit to such a scheme.

  • August 20, 2019

    Fidelity CEO Says Call For Testimony In MIT Trial 'Harassment'

    The CEO of Fidelity has urged a Massachusetts federal judge not to let a group of MIT workers call her as a witness in their suit claiming the university wrongly placed Fidelity's interests above their own in managing their 401(k) plan, arguing the workers only made the request to harass her.

  • August 20, 2019

    Petrobras Objector's Reduced Fee Award Concerns 2nd Circ.

    The Second Circuit seemed tempted Tuesday to return a fee dispute in the settled, $3 billion Petrobras securities class action to U.S. District Judge Jed S. Rakoff, after a settlement objector complained that his work saved the class $46 million but he only got an $11,700 award for his trouble.

  • August 20, 2019

    Crane Rental Co. Owes Over $13M To Pension Fund, Suit Says

    Crane rental company Maxim Crane Works LP violated the Employee Retirement Income Security Act of 1974 by failing to contribute $13 million in funds to the Central States, Southeast and Southwest Areas Pension Fund, a lawsuit filed in Illinois federal court alleges.

  • August 20, 2019

    Investors Reach $12.8M Partial Deal Over Fund Collapse

    A proposed class of investors asked an Illinois federal judge Monday to give initial approval to a $12.8 million cash settlement to resolve allegations that parties affiliated with a mutual fund they bought into covered up aggressive investment tactics that ultimately led to an 80% stock drop.

  • August 20, 2019

    9th Circ. Says Schwab Can Push ERISA Case To Arbitration

    The Ninth Circuit ruled Tuesday that Charles Schwab Corp. can send a proposed class action accusing Schwab of using its retirement plan as a cash cow to arbitration, striking down decades-old case law that said Employee Retirement Income Security Act lawsuits can't be arbitrated. 

  • August 20, 2019

    Ares Nabs €1.78B For Europe-Focused Real Estate Fund

    Ares Management Corp. said Tuesday that it closed the largest real estate private equity fund in firm history after receiving €1.78 billion ($1.97 billion) from limited partners, with plans to target undermanaged or underfunded properties across Europe.

  • August 20, 2019

    Bank Regulators Sign Off On Finalized Volcker Rule Changes

    Federal banking regulators on Tuesday approved a final set of changes to the Volcker Rule's proprietary trading ban, dropping an industry-criticized plan to introduce an accounting-based test for vetting whether trades are prohibited under the rule.

  • August 19, 2019

    Ex-Morgan Stanley Worker Can't Duck Arbitration: 7th Circ.

    A former Morgan Stanley financial adviser must take his discrimination claims against the investment bank to arbitration, the Seventh Circuit ruled Monday, finding he's still beholden to an arbitration agreement that changed after his hiring, even though he purportedly didn’t see the email announcing the changes.

  • August 19, 2019

    Commerzbank Bids For Quick Wins In BNY Mellon RMBS Suit

    Commerzbank AG has asked the Manhattan federal judge overseeing its residential mortgage-backed securities trustee suit against the Bank of New York Mellon for key rulings that it said would leave damages as the only question remaining to be tried for nearly half of the dozens of mortgage trusts at issue in the case.

  • August 19, 2019

    Chancery Tosses Suit Claiming Energy Co. Loan-To-Own Plot

    A string of fatal flaws — including sold-away shares and standing to sue — led to dismissal Monday of a Chancery Court suit accusing private equity investors of exploiting loans and stock warrants to gain control of a clean-energy finance business.

  • August 19, 2019

    4 Life Science Cos. Lead 5 IPO Filings Totaling $476M

    Four life science companies and a financial services provider have filed initial public offerings preliminarily projected to raise a combined $476 million, adding to a growing pipeline of deals that could price after Labor Day and restart IPO activity after the customary August slowdown.

  • August 19, 2019

    Cloud Peak Energy's $15.7M Ch. 11 Sale Gets OK

    A Delaware bankruptcy judge gave his nod Monday for the $15.7 million Chapter 11 sale of most of Cloud Peak Energy Inc.'s assets, after a two-day auction last week led to a deal that also includes the assumption of more than $100 million of the bankrupt coal company's liabilities.

  • August 19, 2019

    Thornton Slams Ex-Judge For 'Misleading' Court In Fee Fight

    Thornton Law Firm LLP on Friday hammered a retired federal judge tasked with overseeing a messy $75 million fee fight following a $300 million State Street Corp. settlement over its foreign exchange practices, saying he was "intentionally misleading" the court about why a quote in his report had been erroneously attributed to a Thornton partner.

  • August 19, 2019

    Tower Research Urges Court To Toss CME Spoofing Claims

    Tower Research Capital LLC told an Illinois federal court that after four attempts, investors still haven't shown how they were harmed by an alleged manipulation of futures contract prices on the Chicago Mercantile Exchange.

  • August 19, 2019

    Trustee In Woodbridge Ch. 11 Seeks Recovery Of Fraud Funds

    The liquidating trustee in the Woodbridge Group of Cos. Chapter 11 proceedings has filed another set of suits seeking to claw back close to $1 million that was allegedly part of its $1.3 billion Ponzi scheme.

  • August 19, 2019

    Real Estate Rumors: Jones Day, Stag Industrial, Stockbridge

    Jones Day is reportedly leasing four floors at an under-construction Chicago tower, Stag Industrial is said to have picked up three Wisconsin properties for $13.9 million, and Stockbridge Capital has reportedly bought five Florida warehouses for $116.5 million.

  • August 19, 2019

    Harrison Street Closes $1.6B Senior Housing-Focused Fund

    Chicago-based Harrison Street Real Estate Capital said Monday that it has closed its seventh real estate-focused fund with $1.6 billion in commitments that will be used to invest in senior and student housing and health care sectors, among others.

  • August 19, 2019

    3 Firms Guide Catalyst's $140M Deal For Hudson's Bay Stake

    Catalyst Capital is buying a 10.05% stake in Hudson's Bay for roughly CA$187 million ($140.4 million) with help from McMillan, Brown Rudnick and Latham & Watkins, the private equity firm said Monday.

  • August 19, 2019

    John Hancock Broke Contract With Energy Manager, Suit Says

    John Hancock Life Insurance Co. (USA) improperly ended an agreement with its renewable energy investment manager in an attempt to take control of the process itself, according to a lawsuit filed Friday by Verto Management LLC in the Business Litigation Session of Boston's Suffolk Superior Court.

  • August 19, 2019

    Argentina Hit With €384M UK Suit Over Bond Payout

    Three investment funds holding billions of dollars of Argentinian government bonds sued the country for €384.7 million ($427 million), claiming the South American country had improperly changed the baseline used to assess when payments were owed. 

  • August 19, 2019

    Attorneys Score $20M For Work On ABB 401(k) Class Action

    The attorneys who represented workers in a 13-year battle with ABB Inc. over excessive 401(k) plan fees will go home with roughly $20 million after securing a $55 million settlement with the technology company.

  • August 16, 2019

    US Bank's High Court Pension Row May Have Broad Impact

    A U.S. Supreme Court case pitting pensioners against US Bank could have a wide-ranging impact on who can bring Employee Retirement Income Security Act suits, whether they pay into a defined-benefit pension plan or a 401(k) plan.

  • August 16, 2019

    Calif. Couple Owes Tax On Bond Investments, Panel Says

    A California couple owes tax on dividends received from a trust that invested in state municipal bonds, a state appeals court has ruled, determining the state constitution's tax exemption for interest on government bonds didn't apply to the trust's disbursements.

Expert Analysis

  • CFTC's Silence Stings In Wheat Futures Manipulation Case

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    The U.S. Commodity Futures Trading Commission v. Kraft and Mondelez case was expected to clarify new standards for prosecuting market manipulation, but instead ended in a settlement that failed to provide any guidance or context, and even barred the CFTC from publicly commenting on the case, says Braden Perry at Kennyhertz Perry.

  • Breaking Down The SEC's Regulation Best Interest

    Excerpt from Lexis Practice Advisor
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    The U.S. Securities and Exchange Commission's recently adopted Regulation Best Interest represents a significant rulemaking for the retail financial services industry that will require significant time and resources to make the necessary operational and compliance changes, say Jay Baris and Russell Sacks at Shearman & Sterling.

  • Issues To Avoid In Fintech, Consumer Financial Services M&A

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    Fintech-specific considerations and persistent regulatory scrutiny highlight the need to understand the risks involved — and necessary due diligence — before acquiring a consumer financial products and services business, says Jonathan Pompan at Venable.

  • Questions After IRS Guidance On Uncashed 401(k) Checks

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    A recent revenue ruling provided helpful guidance on the tax treatment of uncashed 401(k) distribution checks, but did not clarify how plan administrators should handle the nettlesome administrative issues arising when uncashed required minimum distribution checks involve missing plan participants, says Daniel Morgan at Blank Rome.

  • Crisis Messaging To Protect Law Firm Brand And Bottom Line

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    When crises occur, such as data security incidents or gender bias suits, a well-prepared law firm has a thoroughly tested communications plan at the ready, which ensures the firm is the most proactive news source, prevents the crisis from escalating and notifies stakeholders about mitigation efforts, says Zach Olsen at Infinite Global.

  • Shareholder Activism Pushes Boundaries Of Board Duties

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    The Delaware Supreme Court’s recent decision in Marchand v. Barnhill may signal a shift in how the state recognizes broader stakeholder interests in the name of shareholder value, say Beth Boland and Andrew Howell at Foley & Lardner.

  • Perspectives

    What You Should Know About Courtroom Closures

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    At attorney Greg Craig’s trial in D.C. federal court this week, the courtroom was cleared so prospective jurors could answer sensitive questions. Even seasoned litigators were left wondering about the nature of this subtle, yet significant, issue involving Sixth Amendment public trial rights, says Luke Cass at Quarles & Brady.

  • How To Identify Insolvent Publicly Traded Companies

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    In bankruptcy proceedings, many issues hinge on whether the filing entity was insolvent when it took certain actions. A simple algebraic formula can identify balance-sheet insolvent firms that otherwise might escape detection before filing for bankruptcy, says researcher J.B. Heaton.

  • Pa. Justices Could Shift State's Consumer Litigation

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    Depending on how the Pennsylvania Supreme Court decides Gregg v. Ameriprise Financial — a dispute over the culpability standard for the “catch-all” provision of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law — consumer protection litigation in the state could change profoundly, says Karl Myers of Stradley Ronon.

  • Chancery Decision Demonstrates When To Skip Appraisal

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    The Delaware Chancery Court's Appraisal of Jarden opinion shows that stockholders should seek out appraisal proceedings arising from mergers with caution, and consider a fiduciary duty action based on an inadequate sales process if the buyer is a strategic buyer, say Michael Maimone and Joseph Schoell at Drinker Biddle.

  • 4 Working Capital Safe Harbors For QOZ Startups

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    To avoid devastating penalties that can be triggered due to conflicting use and timing requirements under the new qualified opportunity zone regime, real estate investors should ensure qualified opportunity funds include certain provisions, says Tucker Thoni at GrayRobinson.

  • Series

    Why I Became A Lawyer: A Seaweed Scientist's Odyssey

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    In the early 1980s, I was working on my Ph.D. in marine biology and ecology. As part of an international team of scientists studying oil spill impacts on marine ecosystems, I saw a niche opportunity to combine science and law, says Andrew Davis of Shipman & Goodwin.

  • Advisers Can Borrow From Banking's Model Risk Playbook

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    In the absence of U.S. Securities and Exchange Commission rules to govern the investment management industry's use of models, asset managers can look to the Federal Reserve Board and U.S. Office of the Comptroller of the Currency's supervisory guidance on model risk management amid ongoing regulatory scrutiny of this area, say Michael Sullivan and Nicholas Kiritz at Promontory Financial Group.

  • Opinion

    Clients Benefit From Law Firm Expense Growth

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    Although there continue to be corporate clients who are seduced by the idea that cheapest is always best when it comes to outside counsel, there are many negative implications on service delivery that result from myopically focusing only on cost reduction at the expense of quality and innovation, says Keith Maziarek at Katten Muchin.

  • Justices Could Shape Fiduciary Conduct In 2 ERISA Cases

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    Although two Employee Retirement Income Security Act cases recently accepted by the U.S. Supreme Court involve different claims for breach of fiduciary duty, they both demonstrate how procedural decisions can have a substantive effect, says Jason Lacey at Foulston Siefkin.