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Capital Markets
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October 20, 2025
Penny Stock Trader Wants New 'Scalping' Trial After SEC Loss
A man found liable on U.S. Securities and Exchange Commission claims he earned at least $2.5 million by buying, hyping, and then selling penny stocks in a "scalping" scheme has asked a New York federal judge for a new trial, saying the verdict form unfairly lumped his civil charges together.
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October 20, 2025
OCC Chief Says Stablecoin Drain Wouldn't 'Happen Overnight'
A top U.S. banking regulator on Monday downplayed concerns that future growth in interest-earning payment stablecoins could bleed banks of deposits, saying any such shift would be gradual and closely watched by regulators, not a sudden shock to the system.
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October 20, 2025
States Urge Del. High Court To Reject Jarkesy Challenge
State regulators are asking the Delaware Supreme Court to reject an oil-and-gas company's call to apply a recent U.S. Supreme Court decision to state-level securities fraud actions, arguing that a ruling in the company's favor could have "ripple effects" on other states' abilities to pursue alleged fraudsters via administrative courts.
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October 20, 2025
Venezuela Oil Co. PDVSA To Appeal $2.86B Bond Ruling
Venezuela's state-owned oil company plans to appeal a New York federal judge's recent decision ordering it to pay $2.86 billion to bondholders, after the judge ruled last month that defaulted Venezuelan bonds were validly issued under the South American country's laws.
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October 20, 2025
Biotech Co. Asks SEC For Emergency Delisting Pause
Chinese biotechnology company Shineco Inc. has asked the U.S. Securities and Exchange Commission for an emergency stay of Nasdaq's suspension and delisting of its securities, arguing it will likely succeed in its pending appeal to the stock exchange.
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October 20, 2025
Tax Startup CEO Swindled $13M From Investors, SEC Says
The CEO of a defunct tax-compliance startup lied to investors as she raised $13 million for her company, overstating its revenues by almost 900 times and falsely claiming she was a certified public accountant, the U.S. Securities and Exchange Commission said Monday in California federal court.
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October 20, 2025
2 Firms Steer $170M Merger Of Ill. Bank Holding Cos.
The holding companies of Illinois-based Heartland Bank and Trust Co. and CNB Bank & Trust NA will merge in a $170.2 million combined stock and cash transaction, the companies announced Monday.
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October 20, 2025
Trump Media Aims To DQ Gunster In Fight With Investors
Trump Media & Technology Group, which owns President Donald Trump's Truth Social platform, is fighting with investors over whether Gunster should be allowed to represent them against the company's lawsuit over taking the business public in light of a Florida state judge's ties to the firm.
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October 20, 2025
Spiro Can't Be Witness And Musk Atty, Twitter Investors Say
Elon Musk's informed written consent does not mean that Quinn Emanuel Urquhart & Sullivan LLP partner Alex Spiro can serve as both his lead counsel and witness in the trial over a class of investors' allegations that Musk tried to tank Twitter's stock, those investors told a California federal judge on Friday.
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October 20, 2025
Catching Up With Delaware's Chancery Court
This past week, the Delaware Chancery Court and Supreme Court handled a crowded corporate docket, weighing blockbuster merger appeals, shareholder settlement objections, fights over control involving an NBA franchise and a high-profile appeal from Elon Musk involving a massive payday from Tesla.
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October 20, 2025
Crypto Exchange To Go Public Via $1B SPAC Merger
Davis Polk & Wardwell LLP-led digital asset treasury Evernorth Holdings Inc. on Monday unveiled plans to go public through a merger with special purpose acquisition company Armada Acquisition Corp II, advised by Wilson Sonsini Goodrich & Rosati PC, in a deal that is expected to raise over $1 billion in gross proceeds.
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October 17, 2025
Venezuela's PDVSA Ordered To Pay $2.86B To Bondholders
A New York federal judge Friday ordered Venezuela's state-owned oil firm Petróleos de Venezuela SA to pay $2.86 billion to bondholders, after ruling last month that defaulted Venezuelan bonds were validly issued under the South American country's laws.
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October 17, 2025
Quant Trader Tells Jury Of MIT Grads' $25M Crypto Ruse Plan
A quantitative trader and former employee of two MIT-educated crypto entrepreneurs Friday told a Manhattan federal jury of how they planned months in advance to leverage a software glitch to obtain $25 million at the expense of other crypto traders on the Ethereum blockchain.
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October 17, 2025
Chamber Urges 5th Circ. To Rehear Ex-Bank CEO's FDIC Case
The U.S. Chamber of Commerce and other libertarian advocacy groups urged the Fifth Circuit on Friday to reconsider a panel ruling shielding the Federal Deposit Insurance Corp.'s in-house courts from a constitutional challenge, arguing the decision defies U.S. Supreme Court precedent and leaves bank officials "trapped in the bureaucratic machinery" of juryless agency prosecutions.
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October 17, 2025
Justices Urged To Review Circ. Split Over SEC Disgorgement
A man accused by the U.S. Securities and Exchange Commission of participating in a $6 million pump-and-dump scheme is calling on the U.S. Supreme Court to review a circuit split that he says has created "intolerable confusion" over when the agency can collect disgorgement.
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October 17, 2025
Investment Firm Founder Indicted On Alleged $500M Scheme
The co-founder of two Florida-based investment firms has been accused by federal prosecutors and the U.S. Securities and Exchange Commission of defrauding lenders and investors out of hundreds of millions of dollars with false representations about the firms' financial success and assets.
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October 17, 2025
Major Banks Colluded For 30 Years To Fix Rates, Suit Says
Several major banks, including JPMorgan Chase, Bank of America and Wells Fargo, have been hit with a proposed class action in Connecticut federal court alleging that for the past 30 years, they have been artificially inflating interest rates on variable-rate loans to consumers and small businesses.
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October 17, 2025
Cornerstone, Peoples Bank To Form $3.1B Texas Lender
Houston-based Cornerstone Capital Bancorp Inc. said Friday that it has agreed to acquire Peoples Bancorp Inc. of Lubbock, Texas, in a deal that will deepen its Texas presence and unite two community banks into a $3.1 billion-asset franchise.
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October 17, 2025
Newsmax To Build Crypto Reserve With Bitcoin, Trump Coin
Newsmax Inc. plans to purchase up to $5 million worth of bitcoin and President Donald Trump's meme coin in the coming year, joining the ranks of public companies adding cryptocurrency to their strategic reserve.
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October 17, 2025
Ex-SEC Officials Support Activist Investor Before High Court
Two former U.S. Securities and Exchange Commission members are among those calling on the U.S. Supreme Court to uphold the ability of investors to sue funds over contracts that violate federal securities laws, saying that the SEC does not have the resources to go after every alleged wrongdoer.
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October 17, 2025
Phoenix Suns Minority Owners End Suit, Shift To Countersuit
Minority owners of the NBA's Phoenix Suns on Friday dropped their Delaware Court of Chancery lawsuit seeking to obtain certain company documents, but said they are now focused on asserting counterclaims of mismanagement and misconduct in a suit filed earlier this week by majority owner Mat Ishbia.
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October 17, 2025
B. Riley Wants Out Of Lottery.com Chancery Case
A California-based banking firm asked the Delaware Chancery Court in a brief unsealed Friday to drop it from the stockholder class action over Lottery.com's 2021 special purpose acquisition company merger, claiming it was late to the party.
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October 17, 2025
Federal Courts To Scale Back Operations Amid Shutdown
The federal court system has run out of money and will scale back operations beginning Monday as a result of the ongoing government shutdown, possibly leading to case delays.
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October 17, 2025
Texas Farm Bureau Suit Alleging USDA Discrimination Stayed
A Texas federal judge on Thursday opted to stay the Texas Farm Bureau's suit against the USDA over the agency's alleged preferential treatment of minority farmers while a similar case plays out.
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October 17, 2025
Taxation With Representation: Latham, Kirkland, Wachtell
In this week's Taxation With Representation, the Artificial Intelligence Infrastructure Partnership, MGX, and BlackRock's Global Infrastructure Partners acquire Aligned Data Centers from Macquarie Asset Management and co-investors; Rayonier Inc. and PotlatchDeltic Corp. merge to create a timber and wood products giant; and a Lone Star Funds affiliate acquires industrial processing equipment provider Hillenbrand Inc.
Expert Analysis
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Series
Writing Musicals Makes Me A Better Lawyer
My experiences with writing musicals and practicing law have shown that the building blocks for both endeavors are one and the same, because drama is necessary for the law to exist, says Addison O’Donnell at LOIS Law.
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A Reminder Of The Limits Of The SEC's Crypto Thaw
As the U.S. Securities and Exchange Commission's regulatory thaw has opened up new possibilities for tokenization projects, the Ninth Circuit's recent decision in SEC v. Barry that certain fractional interests are investment contracts, and thus securities, illustrates that guardrails remain via the Howey test, say attorneys at Skadden.
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Genius Act Poses Strategic Hurdles For Community Banks
The pace of change in digital asset policy, including the recent arrival of the Genius Act, suggests that strategic planning should be a near-term priority for community banks, with careful attention to customer relationships, regulatory developments and the local communities they serve, say attorneys at Jones Walker.
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Series
Adapting To Private Practice: From Va. AUSA To Mid-Law
Returning to the firm where I began my career after seven years as an assistant U.S. attorney in Virginia has been complex, nuanced and rewarding, and I’ve learned that the pursuit of justice remains the constant, even as the mindset and client change, says Kristin Johnson at Woods Rogers.
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Rebutting Price Impact In Securities Class Actions
Defendants litigating securities cases historically faced long odds in defeating class certification, but that paradigm has recently begun to shift, with recent cases ushering in a more searching analysis of price impact and changing the evidence courts can consider at the class certification stage, say attorneys at Katten.
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7 Document Review Concepts New Attorneys Need To Know
For new associates joining firms this fall, stepping into the world of e-discovery can feel like learning a new language, but understanding a handful of fundamentals — from coding layouts to metadata — can help attorneys become fluent in document review, says Ann Motl at Bowman and Brooke.
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Senate Bill Could Overhaul Digital Asset Market Structure
The Senate Banking Committee's draft Responsible Financial Innovation Act would not only clarify the roles and responsibilities of financial institutions engaging in digital asset activities but also impose new compliance regimes, reporting requirements and risk management protocols, say attorneys at Troutman.
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Opinion
Congress Must Resolve PSLRA Issue For Section 11 Litigants
By establishing a uniform judgment reduction credit for all defendants in cases involving Section 11 of the Securities Act, Congress could remove unnecessary statutory ambiguity from the Private Securities Litigation Reform Act and enable litigants to price potential settlements with greater certainty, say attorneys at Sidley.
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Stablecoin Committee Promotes Uniformity But May Fall Short
While the Genius Act's establishment of the Stablecoin Certification Review Committee will provide private stablecoin issuers with more consistent standards, fragmentation remains due to the disparate regulatory approaches taken by different states, say attorneys at Morgan Lewis.
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Agentic AI Puts A New Twist On Attorney Ethics Obligations
As lawyers increasingly use autonomous artificial intelligence agents, disciplinary authorities must decide whether attorney responsibility for an AI-caused legal ethics violation is personal or supervisory, and firms must enact strong policies regarding agentic AI use and supervision, says Grace Wynn at HWG.
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Parsing Trump Admin's First 6 Months Of SEC Enforcement
The U.S. Securities and Exchange Commission's enforcement results for the first six months of the Trump administration show substantially fewer new enforcement actions compared to the same period under the previous administration, but indicate a clear focus on traditional fraud schemes affecting retail investors, say attorneys at King & Spalding.
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Series
Being A Professional Wrestler Makes Me A Better Lawyer
Pursuing my childhood dream of being a professional wrestler has taught me important legal career lessons about communication, adaptability, oral advocacy and professionalism, says Christopher Freiberg at Midwest Disability.
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How FDIC Appeals Plan Squares With Fed, OCC Processes
The Federal Deposit Insurance Corp.'s recent proposal to revise its appeals process merits a fresh comparison to the appeals systems of the Federal Reserve and Office of the Comptroller of the Currency, and would provide institutions with greater transparency and independence, say attorneys at Alston & Bird.
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SEC Rulemaking Radar: The Debut Of Atkins' 'New Day'
The U.S. Securities and Exchange Commission's regulatory flex agenda, published last week, demonstrates a clear return to appropriately tailored and mission-focused rulemaking, with potential new rules applicable to brokers, exchanges and trading, among others, say attorneys at Goodwin.
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Series
Law School's Missed Lessons: Adapting To The Age Of AI
Though law school may not have specifically taught us how to use generative artificial intelligence to help with our daily legal tasks, it did provide us the mental building blocks necessary for adapting to this new technology — and the judgment to discern what shouldn’t be automated, says Pamela Dorian at Cozen O'Connor.