CFTC Takes 1st Steps Toward Prediction Market Regulations

By Jessica Corso

The U.S. Commodity Futures Trading Commission opened the door Thursday to promised prediction market regulation, calling for public feedback on what such rules might look like while laying out the staff's view on the current rules that the platforms should follow in order to offer betting on sports and other events.

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Musk Banker Tells Jury Twitter Held Up Takeover Deal

By Bonnie Eslinger

An ex-Morgan Stanley banker who advised Elon Musk on his $44 billion Twitter acquisition testified Thursday in a trial seeking billions for investors claiming Musk tanked the social media company's stock to disrupt the takeover, saying Twitter was the one that obstructed the deal.

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Feds Rip 'Incoherent' SBF Claim Of Political Weaponization

By Aislinn Keely

Federal prosecutors fired back at convicted FTX founder Sam Bankman-Fried's pro se bid for a new trial as a "transparent attempt" to further allegedly false narratives that his collapsed crypto exchange was solvent, and he was a victim of political retribution.

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Epilepsy Drugmaker's Statements Insulated From Stock Suit

By P.J. D'Annunzio

A Pennsylvania federal judge has trimmed a shareholder class action against Marinus Pharmaceuticals alleging it misled investors about the probability of success of an epilepsy drug, ruling that certain statements made by company leadership were immunized by the Private Securities Litigation Reform Act.

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Fed's Bowman Previews Plan To Rewrite Bank Capital Rules

By Jon Hill

Federal Reserve Vice Chair for Supervision Michelle Bowman said Thursday that federal regulators will move next week to propose a sweeping overhaul of U.S. bank capital rules, previewing changes that are expected to result in a "modest" net easing for larger banks.

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Lawmakers Seek Clarity On Trump's Stock Buyback Order

By Madeline Lyskawa

Four Democratic lawmakers have called on President Donald Trump and U.S. Department of Defense Secretary Pete Hegseth to provide clarity on how they plan to enforce a recent executive order barring defense contractors from buying back their stock or paying shareholder dividends if they are underperforming on their contracts. 

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Brief

Democrats Vow To Oversee DOJ's Reported Binance Inquiry

By Sarah Jarvis

Three Democratic U.S. senators said Thursday that they will oversee a reported investigation by the U.S. Department of Justice into potential Iran sanctions violations carried out on the cryptocurrency exchange Binance.

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UBS Whistleblower Suit Ends In Settlement After Retrial Order

By Sarah Jarvis

A New York federal judge on Thursday dismissed a fired UBS worker's whistleblower retaliation lawsuit after the parties reached a settlement in principle earlier this week, ending a long-running case that was revived by the U.S. Supreme Court and saw the judge order a retrial last month.

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Celsius Accuses Fireblocks Of 'Staggering' Crypto Negligence

By Dorothy Atkins

The Chapter 11 plan administrator for defunct cryptocurrency platform Celsius Network urged a New York bankruptcy judge Wednesday to order Fireblocks to respond to discovery demands over the cybersecurity company's alleged "staggering negligence" that led to the destruction of cryptographic keys and the loss of Ethereum tokens worth tens of millions of dollars.

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Brief

Kalshi Appeals Ohio Ruling On Sports Contracts To 6th Circ.

By Katryna Perera

Kalshi plans to ask the Sixth Circuit to overturn a lower court's refusal to grant it an injunction that would shield its sports betting contracts from scrutiny in Ohio.

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NJ AG Fines Firm $375K For Lax Fraud Prevention Procedures

By Sydney Price

Broker-dealer Network 1 Financial Securities Inc. will pay nearly $400,000 to settle claims from the New Jersey attorney general that its procedures related to anti-money laundering, customer identity verification and market abuse prevention were ineffectively established and performed.

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UiPath Execs Hid Risks, Ditched $394M+ In Stock, Suit Alleges

By Jarek Rutz

A UiPath Inc. shareholder has filed a derivative lawsuit in Delaware Chancery Court accusing the company's top executives and directors of misleading investors about slowing growth and intensifying competition in the robotic process automation market while insiders sold hundreds of millions of dollars' worth of stock.

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Orthopedics Co. Investors See Merger Claims Trimmed

By Emilie Ruscoe

Orthofix Medical Inc. must face claims that it failed to tell investors that a company it was merging with recently settled class action discrimination allegations, but will not have to face some securities fraud allegations, a Texas federal judge has ruled.

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PayPal Execs Hit With Derivative Suit Over 2027 Forecast

By Sydney Price

PayPal executives and directors were hit with a shareholder's derivative suit accusing them of damaging the company with comments about the strong growth trajectory for its branded checkout segment that the investor said turned out to be untrue.

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Trip.com, Execs Downplayed China Monopoly Risks, Suit Says

By Katryna Perera

One-stop travel service provider Trip.com and its executives "recklessly understated" to shareholders the risks of their business activities running afoul of China's antimonopoly laws, according to a new proposed class action in New York federal court.

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Cogent CEO's Stock Pledges Spark Derivative Suit

By Emilie Ruscoe

The CEO and board members of internet service provider Cogent Communications Holdings Inc. face shareholder derivative claims the CEO improperly collateralized his commercial real estate portfolio with his stake in the company, causing trading prices to plummet when he was forced to sell off those shares amid financial distress.

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Investors Sue Florida Trading 'Savant' Over Ponzi-Style Fraud

By Carolina Bolado

Investors sued a self-styled foreign exchange trading "savant" claiming he solicited millions from friends and relatives that were meant to be pooled into legitimate investments but were instead funneled into a Ponzi scheme.

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DOJ Wants Morgan Stanley, DOL Opinion Dispute Tossed

By Katryna Perera

The U.S. government has moved to dismiss a suit from former Morgan Stanley financial advisers challenging a U.S. Department of Labor advisory opinion that said the bank's deferred compensation plans likely aren't covered by federal benefits law, with the advisers responding by saying the agency's finding is hurting them because the bank is using it in arbitration proceedings.

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FDIC Owns SVB Insurance Claims, Court Told

By Abigail Harrison

The Federal Deposit Insurance Corp., as receiver for Silicon Valley Bank after its historic collapse in early 2023, is entitled to recover on what could be tens of millions of dollars in financial institution bond proceeds, the FDIC's counsel told a North Carolina federal court Thursday.

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Sidley Adds Cooley Corporate And Securities Pro In San Diego

By James Mills

Sidley Austin LLP continues expanding its California team, bringing in another Cooley LLP lawyer — this one a corporate and securities expert — as a partner in its San Diego office.

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What The CFTC's Event Contracts Amicus Brief Is Missing

The U.S. Commodity Futures Trading Commission's recent amicus brief in the Ninth Circuit's North American Derivatives Exchange v. Nevada case declines to define the boundary between swaps and wagers, leaving market participants, exchanges and intermediaries operating within a regulatory framework whose boundaries remain undrawn, says Tamara de Silva at De Silva Law Offices.

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Series

Podcasting Makes Me A Better Lawyer

Podcasting has changed how I ask questions and connect with people, sharpening my ability to listen without interrupting or prejudging, and bringing me closer to what law is meant to be: a human profession grounded in understanding, judgment and trust, says Donna DiMaggio Berger at Becker.

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4th Circ. Scolds Atty Suspected Of Using AI In Race Bias Suit

By Patrick Hoff

The Fourth Circuit has reprimanded an attorney suspected of using generative artificial intelligence to draft briefs in a race discrimination lawsuit against Baltimore Gas and Electric Co., warning that courts need to grapple with the technology as it "may soon become the norm."

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Democrats Seek Review Of Bondi's Role In Brother's Cases

By Alison Knezevich

Two Democratic lawmakers have asked the U.S. Department of Justice's inspector general to review whether Attorney General Pam Bondi "adequately recused herself" from cases involving clients represented by her brother Brad Bondi, who is a partner at Paul Hastings LLP.

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Sinema Says Tryst With Ex-Guard Not In NC Court's Reach

By Abigail Harrison

Former U.S. Sen. Kyrsten Sinema, now a Hogan Lovells attorney, told a North Carolina federal court Thursday that a lawsuit alleging her cross-country affair with a former member of her security detail ended a 14-year marriage must be dismissed because the trysts occurred outside state borders.

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Ex-Judge Testifies About Alleged Forgeries In Amazon Case

By Kelcey Caulder

The former chief judge of the U.S. District Court for the Northern District of Georgia testified Thursday about the alleged forging of court documents, signatures and court stamps in a criminal case against a woman accused of defrauding Amazon out of $9.4 million through fraudulent invoices. 

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Judge Newman Takes Suspension Battle To Supreme Court

By Ryan Davis

Federal Circuit Judge Pauline Newman brought her fight against a suspension imposed on her by her colleagues to the U.S. Supreme Court on Thursday, arguing that a lower court wrongly held that her challenges to the order are not subject to judicial review.

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Calif. Bar Says Internal Docs Bolster Claims Against Exam Co.

By Emily Sawicki

The State Bar of California has bulked up its breach of contract and fraud suit against the administrator of its "disastrous" February 2025 bar exam, filing an amended complaint in light of information it says it learned from internal communications unearthed amid discovery.

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Holyoak's US Attorney Nomination Advances

By Courtney Bublé

The nomination of Melissa Holyoak, former commissioner of the Federal Trade Commission, to be U.S. attorney for the District of Utah was sent to the full Senate on Thursday.

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