Securities

  • June 29, 2022

    Giuliani Pal Gets 20 Months For Election Crimes, Fraud

    Former Rudy Giuliani associate Lev Parnas on Wednesday was sentenced to one year and eight months in prison following his conviction at trial of campaign finance violations and his admission to conspiring to defraud investors in his anti-fraud startup Fraud Guarantee.

  • June 29, 2022

    Switch Omitted Financial Info On $11B Merger, Investors Say

    A pair of stockholders claimed in separate lawsuits that data center operator Switch Inc. didn't disclose key financial information about a proposed $11 billion go-private deal with investment firms DigitalBridge and IFM Investors.

  • June 29, 2022

    Lowenstein Sandler Finds No Impropriety In FINRA Arbitration

    Lowenstein Sandler LLP's independent review of the Financial Industry Regulatory Authority's arbitration system has found no evidence of an improper agreement to remove certain arbitrators from cases, contradicting the findings of a Georgia state judge earlier this year.

  • June 29, 2022

    Bradley Adds M&A Specialist To Growing Dallas Office

    Bradley Arant Boult Cummings LLP has hired a new partner to its corporate and securities practice group for its Dallas office – which has tripled in size over the last three years.

  • June 28, 2022

    Frustrated Court Says Lender Must Face Ponzi Scheme Suit

    A Texas federal judge has declined to toss a Ponzi scheme fraud suit brought against a lending company and the CEO of a real estate development company, noting that court has spent many resources on dismissal motions in the case thus far and that the defendants should not file any more dismissal motions.

  • June 28, 2022

    SEC Wins Default Judgment In Ex-Herbalife Exec's Absence

    A New York district court judge ordered a former executive at the Chinese subsidiary of California-based health supplement company Herbalife Ltd. to pay $550,092 in civil penalties after he was charged with plotting to bribe Chinese officials.

  • June 28, 2022

    Former Ann Taylor Execs Beat Claims Of Duping Investors

    Former executives with the onetime owner of the Ann Taylor retail clothing brand defeated class claims alleging that they overstated the company's value before unveiling a roughly $1.3 billion impairment, with a New Jersey federal judge on Tuesday concluding that their "rosy" estimates did not amount to duping investors.

  • June 28, 2022

    Chancery Urged To Consider Firms' Bid To Lead Ionis Suit

    An Ionis Pharmaceuticals Inc. investor is urging a Delaware vice chancellor to consider his bid to consolidate two suits and have his counsel lead litigation filed over allegedly excessive company director pay, arguing that the request should be considered even though a settlement is already pending in one of the suits.

  • June 28, 2022

    Feds Ask For Vigilance On Russian Export Sanctions

    Bureaus of the U.S. Treasury Department and U.S. Commerce Department urged financial institutions Tuesday to monitor for efforts of Russia and Belarus to evade export sanctions related to the invasion of Ukraine, providing some pointers that could help keep certain equipment out of the hands of Russia's military. 

  • June 28, 2022

    Investor Sues Auto Insurer Over Customer Recruitment Costs

    Directors and executives of auto insurance startup Root Inc. have been hit with a derivative investor suit in Delaware federal court alleging they misled shareholders about how much money the company spends acquiring new customers and caused the company's stock price to plummet.

  • June 28, 2022

    Cabot Worker Says Merger Should've Triggered Stock Award

    An employee of the former Cabot Oil & Gas Corp. claimed in a lawsuit that the company's 2021 tie-up with Cimarex Energy Co. should have triggered "change-in-control" clauses in a pair of incentive agreements and awarded him 6,100 shares of company stock, according to a complaint filed in Pennsylvania state court.

  • June 28, 2022

    Ernst & Young Fined $100M For Cheating On CPA Exams

    The U.S. Securities and Exchange Commission hit Ernst & Young LLP with a $100 million fine on Tuesday after the accounting giant admitted that its audit professionals cheated on certified public accountant license exams, and that it also withheld evidence of the cheating from the agency.

  • June 28, 2022

    Feds Drop Haitian Bribe Case After Discovering New Evidence

    Federal prosecutors in Boston dropped a Foreign Corrupt Practices Act case against a former U.S. Army colonel and a lawyer just days before they were set to be tried for a second time, after the FBI unearthed text messages suggesting the two were innocent.

  • June 27, 2022

    Groupon To Pay $13.5M To End Investors' Hidden Losses Suit

    Groupon Inc. has agreed to pay $13.5 million to end a proposed securities class action that alleges it misled investors about its financial health before ending its sale of physical goods and announcing the departure of two top executives, the investor said in Illinois federal court on Monday.

  • June 27, 2022

    Gold Price-Fixing Deal Could Imperil Other Claims, Court Told

    An investor suing Scotiabank for alleged precious metals futures spoofing is objecting to a proposed $50 million settlement that would end a separate gold price-fixing case against the bank and other financial institutions, telling a New York federal judge that the deal's release of claims should be narrowed.

  • June 27, 2022

    Chancery Nixes Aerojet CEO's Bid For Neutral Counsel

    Aerojet Rocketdyne Holdings Inc.'s board chairman will preside over an upcoming meeting where shareholders will vote for directors, the Delaware Chancery Court ruled Monday, rejecting a bid from the chair's rival, the company's CEO, for neutral counsel to conduct the meeting.

  • June 27, 2022

    Stanford International Chairman Seeks Ax Of SEC Ponzi Suit

    The chairman of the Stanford International Bank has asked a federal judge in Dallas to toss the U.S. Securities and Exchange Commission's long-running litigation accusing him of using companies under his control to run a $7.2 billion Ponzi scheme.

  • June 27, 2022

    Twitter Stock Pumper Avoids Prison For Microcap Fraud

    A would-be Twitter-based stock sage on Monday was sentenced to six months of house arrest for what prosecutors say was a social media-based pump-and-dump scheme designed to induce his followers to drive up the share price of a worthless shell company.

  • June 27, 2022

    Balwani's Trial Features Tears, Tension And Holmes' Shadow

    On the heels of ex-Theranos CEO Elizabeth Holmes' high-profile trial and conviction, former Theranos executive Ramesh "Sunny" Balwani's criminal fraud trial has had its own memorable moments, from contentious exchanges between defense counsel and the judge to emotional witness testimony.

  • June 27, 2022

    Catching Up With Delaware's Chancery Court

    The Delaware Chancery Court drew a step closer last week to filling an empty seat on the bench, a debt maven fought for control of a cosmetics company, and new cases came in involving cryptocurrency, building products, business software, and of course, private equity. Here's your weekly roundup of news from Delaware's Chancery Court.

  • June 27, 2022

    Sustainability Group Sees 'Clear' US Progress On Climate Risk

    U.S. financial regulators have made big strides over the past year in moving to monitor and mitigate the risks that climate change poses to the financial system, but they're still way behind some of their peers internationally, according to a report released Monday by an influential sustainability group.

  • June 27, 2022

    DOL Seeks To Toss 'Downright Bizarre' ERISA Guidance Suit

    The U.S. Department of Labor urged a Florida federal court to toss an American Securities Association suit claiming agency guidance illegally imposed new obligations under federal benefits law, arguing that the guidelines weren't required to go through formal rulemaking procedures.

  • June 27, 2022

    Fed Bans Golden Pacific Bancorp Affiliate From Bank Industry

    The Federal Reserve Board of Governors has prohibited an individual from future participation in the banking industry after he allegedly lied in his application to acquire control of Golden Pacific Bancorp Inc., a former bank holding company in California.

  • June 27, 2022

    2nd Circuit Backs $100M Loan Default Ruling In UBS Suit

    The Second Circuit has sided with a lower court's ruling that energy holding company Greka Integrated Inc. must pay $100 million to UBS AG's London branch following Greka's failure to repay loans it owes to the bank.

  • June 27, 2022

    Car Rental Co. Sued Over Blocked Insurance Payments

    An investor in a company that allows car owners to rent out their vehicles for ride-sharing services wants to inspect the company's books and records in Delaware Chancery Court, to investigate whether it suppressed insurance claim payments through a claims adjuster founded by the rental company's CEO.

Expert Analysis

  • Investment Adviser ESG Lessons From BNY Mellon Case

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    With the U.S. Securities and Exchange Commission's recent $1.5 million settlement with BNY Mellon over environmental, social and governance disclosure violations, we appear to be at the dawn of a new era of enforcement — which means investment advisers should take new compliance steps, say attorneys at Saul Ewing.

  • Crypto Litigation May Grow In Absence Of Regulatory Scheme

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    Three recent cases in the digital asset space illustrate how regulatory uncertainty has created fertile ground for litigation and enforcement to grow, leaving cryptocurrency trading platforms and users to closely monitor guidance from applicable regulatory agencies, say attorneys at Choate.

  • 5th Circ. Ruling Signals Judicial Shift On SEC Admin Process

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    The Fifth Circuit’s decision in Jarkesy v. U.S. Securities and Exchange Commission signals a growing discomfort in the judiciary with the SEC's administrative process, and those dealing with enforcement actions should bring their constitutional challenges early and often, say Benjamin Daniels and Trevor Bradley at Robinson & Cole.

  • 5th Circ.'s Nixing Of SEC Judges May Mean Trouble For FERC

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    The Fifth Circuit's recent ruling against the U.S. Securities and Exchange Commission's use of administrative law judges also calls into question the constitutionality of the Federal Energy Regulatory Commission's ALJs — with a critical question being whether the subject of an enforcement action has the option to go to federal court, say Elizabeth Cassady and Daniel Mullen at Steptoe.

  • Opinion

    Now's The Time To Address Archaic Law School Curricula

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    With law school enrollments jumping significantly ahead of a potential recession and more students graduating than the market can absorb, law schools should turn to creative solutions to teach students how to negotiate, work with clients, specialize and use technology to practice their craft more efficiently, says University of Colorado adjunct professor Jason Mendelson.

  • The Case For Company-Directed Offensive ESG Litigation

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    Rather than treat environmental, social and governance litigation as a source of liability, there is a serious benefit for companies and their lawyers to evaluate and pursue offensive ESG litigation, says Bob Koneck at Woodsford.

  • Determining Interest Rate Floors With Transition To SOFR

    Excerpt from Practical Guidance
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    As commercial loans shift from Libor to Secured Overnight Financing Rate term rates, counsel should review existing credit agreements and any amendments, and pay close attention to whether any floors are transitioned or become applicable as a result of an agreement's transition, says Ann Dziuba at LexisNexis.

  • Lessons From Lawyer Fee-Sharing Agreements Gone Wrong

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    The recent fee-sharing dispute between Edelson and Girardi Keese is a reminder that lawyers who do not strictly follow the applicable rules may risk a disciplinary complaint, lose their share of the fee, or wind up in costly litigation with co-counsel, says David Grossbaum at Hinshaw.

  • LeClairRyan Bankruptcy Highlights Pass-Through Tax Issue

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    A Virginia bankruptcy court's recent ruling in the case of defunct law firm LeClairRyan shows there may be serious tax consequences for pass-through entity partners who give up their ownership interest without following operating agreement exit provisions and updating bankruptcy court filings, say Edward Schnitzer and Hannah Travaglini at Montgomery McCracken.

  • SEC Crypto Unit Expansion Is A Warning To Industry

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    The U.S. Securities and Exchange Commission’s recent decision to expand its Crypto Assets and Cyber Unit is a clear signal that federal regulators may increase enforcement against those violating securities laws in the digital asset space, say attorneys at BakerHostetler.

  • Navigating White Collar Attorney-Client Privilege Waivers

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    In light of increased reliance-on-counsel defenses and waivers of attorney-client privilege in corporate fraud cases, defense counsel should think broadly about how attorney-client communications demonstrate that their client acted in good faith, and without fraudulent intent, says Edward Imperatore at MoFo.

  • 8 Steps To Creating A Legal Ops Technology Road Map

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    Legal departments struggling to find and implement the right technologies for their operations should consider creating a road map that summarizes their approach to technology changes, provides clearly defined metrics for success, and serves as the single source of truth for stakeholders, says Melanie Shafer at SimpleLegal.

  • 2 Years Since Liu, Disgorgement Case Law Is Favoring SEC

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    In the two years since the U.S. Supreme Court’s decision in Liu v. the U.S. Securities and Exchange Commission, circuit courts have weighed in to answer the decision's open questions, and recent cases suggest that courts are unwilling to disrupt disgorgement orders, even where the awards would not survive Liu scrutiny, say attorneys at Ropes & Gray.

  • Latest SPAC Trends Point To Risk Of Negative Outcomes

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    Interest in initial public offerings of special purpose acquisition companies has reached its apex, and in the second half of this year we anticipate sustained levels of SPAC shareholder redemptions, increased liquidations for those unable to consummate an initial business combination and increased litigation risk, say attorneys at The Brattle Group.

  • An Early Step Toward Regulation Of Carbon Offset Market

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    A recent convening held by the Commodity Futures Trading Commission highlighted a need for greater transparency in voluntary carbon markets and for standardization of what constitutes a good or high-quality carbon offset, as well as the CFTC's potential role in regulating the market, say Levi McAllister and Pamela Tsang Wu at Morgan Lewis.

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