Securities

  • January 17, 2020

    Ribbon Communications Investor Sues To Block $456M Deal

    An investor filed a lawsuit in Delaware federal court Thursday seeking to block Ribbon Communications Inc.’s proposed $456 million acquisition of ECI Telecom Group Ltd., claiming not enough information has been disclosed for stockholders to make an informed vote on the transaction.

  • January 17, 2020

    Pulling Up Stakes: Sidley, Baker Botts, Hogan Lovells

    In our latest roundup of deal-makers on the move, Sidley Austin snagged a private equity pro from Linklaters for its Singapore office, Baker Botts bolstered its media and telecommunications practice and Hogan Lovells added a veteran capital markets practitioner in London.

  • January 17, 2020

    Stockholder Accuses PPG Execs Of Lax Financial Oversight

    A former PPG Industries executive harmed the company and cost it millions of dollars in market valuation and goodwill with accounting practices that "smoothed out" financial ups and downs from 2016-2018, according to a derivative lawsuit a stockholder filed Thursday in a Pennsylvania federal court.

  • January 17, 2020

    Chancery Energizes Investor Bids To Probe Corporations

    A ruling by Delaware Vice Chancellor J. Travis Laster has recharged stockholder rights of access to company books and records, beating down AmerisourceBergen Corp.'s efforts to stop an investor probe of opioid-control oversight failures and potentially shoring up cases the plaintiffs bar considered to be at risk.

  • January 17, 2020

    Former RBC Analyst Avoids Prison For Insider Trading

    A Manhattan federal judge on Friday allowed a former RBC Capital Markets junior analyst to avoid prison for reaping $126,000 of profit via insider trading, including trading ahead of a secret private equity deal, crediting his quick guilty plea and remorse.

  • January 17, 2020

    Feds Seek To Jam Revolving Door In High-Profile Cases

    Federal prosecutors are questioning whether a Skadden attorney should be disqualified from defending a former trader at JP Morgan against spoofing charges in the latest example of the U.S. Department of Justice claiming an ex-government attorney may have brought too much inside information through the revolving door.

  • January 17, 2020

    SEC Fights Bahamian Adviser's Bid To Kill Fraud Suit

    The U.S. Securities and Exchange Commission urged a Colorado federal court to keep alive its suit accusing Mediatrix Capital Inc. of defrauding investors out of millions through unregistered offerings and stolen funds, arguing that contrary to the adviser's argument, the investment funds they sold do constitute securities.

  • January 17, 2020

    Taxation With Representation: Skadden, Simpson, White

    In this week’s Taxation with Representation, Visa acquires fintech company Plaid for $5.3 billion, a Blackstone real estate trust makes a $4.6 billion play for two Vegas hotels, and Saudi Aramco’s IPO raises another $3.8 billion.

  • January 17, 2020

    Western Union Brass Accused Of Shoddy Anti-Fraud Efforts

    An investor has filed a derivative suit in Delaware Chancery Court asserting that Western Union’s officers failed for years to implement effective anti-fraud measures, resulting in the money transfer company having to pay hundreds of millions in fines and penalties.

  • January 17, 2020

    Crypto Market Maker Sues Fr8 Token Issuer For $1.8M

    A global cryptocurrency market maker and an investor filed a $1.8 million lawsuit in New York federal court accusing Fr8 Network Inc. and two principals of fleecing them with a fraudulent token offering.

  • January 17, 2020

    Blockchain Duo Accused Of $30M Investment Scheme

    Two people with a blockchain technology company were charged in New Jersey federal court Friday with duping investors about their backgrounds and business relationships to raise $30 million in cash and cryptocurrency, with prosecutors alleging one fraudster used aliases and changed his appearance to hide his criminal past.

  • January 17, 2020

    Securities Group Of The Year: Skadden

    Skadden Arps Slate Meagher & Flom LLP set the pace for defense wins and resolutions in the securities litigation industry in 2019, helping BlackRock Inc. knock down one of the largest ever excessive-fee suits against a mutual fund and obtaining a complete dismissal of shareholder claims against Foot Locker Inc., earning the firm its sixth honor as one of Law360’s Securities Groups of the Year.

  • January 17, 2020

    RBS Demands £24M From Insurers Over Madoff Fraud Losses

    The Royal Bank of Scotland has taken aim at five insurers who wrote computer fraud polices for one of its subsidiaries, saying it is owed more than £24 million ($31.3 million) for losses caused by Bernard Madoff’s investment vehicle.

  • January 17, 2020

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen a tech company sue an online football stock exchange, a number of seafood distributors and their insurers sue cargo company Maersk, and several hotels add to Visa and MasterCard's swipe-fee class action woes. Here, Law360 looks at these claims and more. 

  • January 16, 2020

    Telegram, SEC Seek Quick Result In $1.7B Crypto Case

    Telegram and the U.S. Securities and Exchange Commission have filed dueling motions for summary judgment in a case where the agency alleges that the messaging company's $1.7 billion offering of digital tokens constituted the sale of unregistered securities.

  • January 16, 2020

    Exxon Says Mass. AG Timed Climate Suit With NY Trial

    ExxonMobil on Thursday suggested Massachusetts Attorney General Maura Healey timed the launch of her lawsuit accusing the oil giant of deceiving investors and consumers about business risks from climate change to coincide with a landmark climate fraud trial in New York. 

  • January 16, 2020

    Bid To Move Crypto Suit Overseas Called 'Pious' Pretense

    A motion to end a proposed federal cryptocurrency class action stateside — and move the claims to Italy — is a thinly disguised attempt to kill the allegations altogether, according to a California man who claims he lost $260,000 on a defective digital currency exchange.

  • January 16, 2020

    DC Judge Appears Wary Of Blocking EB-5 Program Overhaul

    A D.C. federal judge does not seem likely to move to preliminarily block the Trump administration's overhaul of the EB-5 investor visa program after a hearing on Thursday afternoon.

  • January 16, 2020

    Prudential Misled Investors On Financial Outlook, Suit Says

    Prudential Financial Inc. was hit with a proposed securities class action Thursday in New Jersey federal court alleging the insurance giant misled investors about the company's financial health, leading them to buy stock at "artificially inflated prices."

  • January 16, 2020

    Zeichner Ellman Wants $150M Malpractice Suit Tossed In NY

     A New York federal court should toss a legal malpractice suit that contends a law firm schemed to wrongfully divert more than $150 million from the assignee of a trust fund, as the assignee fails to substantiate its claim, the firm has contended.

  • January 16, 2020

    Highland Capital Says Ch. 11 Trustee Worst Possible Option

    Bankrupt investment firm Highland Capital Management told a Texas judge late Wednesday that the appointment of a Chapter 11 trustee to manage the debtor during its bankruptcy case would be the worst possible option in the proceedings and is unnecessary given recent changes in the company's oversight.

  • January 16, 2020

    Reps. Seek To Exempt Crypto Transaction Gains Under $200

    Lawmakers in the U.S. House of Representatives introduced bipartisan legislation on Thursday that would provide a tax exemption for everyday virtual currency transactions with gains worth $200 or less in value.

  • January 16, 2020

    Cassin & Cassin Grows NY Real Estate Presence With 4 Attys

    Cassin & Cassin LLP has hired four real estate associates in two separate offices in New York State, expanding its commercial mortgage-backed securities practice in the process, the firm announced on Thursday.

  • January 16, 2020

    Ex-REIT Exec Tells Wary 2nd Circ. Witness Hid Payment Offer

    The Second Circuit looked tempted Thursday to erase the conviction of ex-real estate investment trust chief financial officer Brian Block, after his lawyer accused a key trial witness of hiding an offer of financial support that came from a friend who filed a whistleblower complaint against Block's former company.

  • January 16, 2020

    Outspoken SEC Commissioner Jackson To Leave Agency

    U.S. Securities and Exchange Commissioner Robert Jackson, who has vigorously opposed many of the agency's deregulatory moves that he considered a threat to investor protection, said Thursday he will leave office on Feb. 14 to teach at New York University School of Law.

Expert Analysis

  • PCAOB's 2019 Enforcement Actions Hint At 2020 Focus

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    The Public Company Accounting Oversight Board's modest increase in enforcement actions in 2019 suggest the board's 2020 priorities will include non-U.S. firms, quality control standards, workpaper accuracy and independence violations, says Robert Cox of Briglia Hundley.

  • 5 Predictions For FCPA Enforcement In 2020

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    In addition to joining the chorus of others who predict that increased global engagement by U.S. authorities will lead to record levels of Foreign Corrupt Practices Act enforcement, we also expect 2020 will bring changes in FCPA restitution, calculation of damages, declinations to prosecute and more, say attorneys at V&E.

  • FIRREA Remains Potent Civil Fraud Enforcement Tool

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    Last year, three court decisions addressing the Financial Institutions Reform, Recovery and Enforcement Act's civil monetary penalties provision — two at the final judgment stage and one at the pleadings stage — expanded FIRREA jurisprudence and remind us why this statute cannot be ignored, say attorneys at Morgan Lewis.

  • Managing Money Laundering Risk In The Art Trade

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    The Office of Foreign Assets Control's recent declaration that a Lebanese art dealer's gallery was used to conceal Hezbollah financing is a reminder to the art community of the need for strict compliance with U.S. criminal anti-money laundering laws, say Nicole Horowitz and Brendan Hanifin of Ropes & Gray.

  • What SEC's Accredited Investor Proposal Means For PE Funds

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    A recent proposal from the U.S. Securities and Exchange Commission would allow more investors to participate in private offerings, but divisions at the SEC and among investment advocates suggest further debate may be ahead before a finalized rule emerges, say Michael Gold and Nicholas Stewart at Saul Ewing.

  • How Associate Life Has Evolved Over The Past Decade

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    During the last 10 years, the need to embrace change was fundamental for law firms, and that change affected associates in many ways — most, but not all, for the better, says Brad Kaufman, co-president of Greenberg Traurig.

  • Tribune Ruling Charts Course For Bankruptcy Safe Harbor

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    In upholding the dismissal of fraudulent conveyance claims against former shareholders of the bankrupt Tribune Company, the Second Circuit may have laid out a path for parties looking to stay within a crucial Bankruptcy Code safe harbor provision, say attorneys at Cadwalader.

  • Where The Fight Over FTC's Enforcement Authority Stands

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    A flurry of year-end activity, including three petitions before the U.S. Supreme Court and a spate of proposed legislation, requires a recap on the current status of the debate over the Federal Trade Commission's Section 13(b) authority to obtain permanent injunctions and restitution, say John Villafranco and Khoury DiPrima of Kelley Drye.

  • 2nd Circ. Ruling Could Lower Bar For Insider Trading Charges

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    ​​​​​​​The Second Circuit’s recent decision in U.S. v. Blaszczak potentially makes it easier to prosecute insider trading cases by ruling the government doesn't need to prove an insider received any personal benefit in exchange for sharing material, nonpublic information, say attorneys at Goodwin.

  • 3rd Circ. Sheds Light On Ch. 11 Liability Release Approval

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    In Millennium Lab, the Third Circuit recently upheld the Delaware bankruptcy court's authority to approve a Chapter 11 plan containing nonconsensual liability releases, offering guidance on the factors courts may consider in deciding whether to approve them, says Jane VanLare of Cleary.

  • Series

    Judging A Book: Dyk Reviews 'Democracy And Equality'

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    In their new book "Democracy and Equality: The Enduring Constitutional Vision of the Warren Court," Geoffrey Stone and David Strauss provide valuable context for U.S. Supreme Court decisions under Chief Justice Earl Warren that have profoundly affected the country, but their overly protective attitude sometimes obscures reality, says Federal Circuit Judge Timothy Dyk.

  • SEC's Audit Proposal May Bolster Compliance, Competition

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    A newly proposed rule from the U.S. Securities and Exchange Commission on public companies' relationships with their auditors could make the current auditor independence framework easier to comply with, and mitigate competition pressure from issues that should not reasonably threaten an auditor’s objectivity, say Charles Smith and Andrew Fuchs at Skadden.

  • The Pitfalls Of SEC's Crypto Regulation By Enforcement

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    Absent clear rules to govern cryptocurrency, the U.S. Securities and Exchange Commission’s continued regulation by enforcement could result in industry stagnation, increased global competition, problematic messaging and due process issues, say attorneys at Quinn Emanuel.

  • Reviewing 2019's White Collar Cases And Controversies

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    From the “Varsity Blues” investigation to the Mueller report, white collar criminal cases were at the forefront of the national dialogue last year. Attorneys at Keker Van Nest look back at the most significant white collar cases and trends from 2019 and highlight what to watch for in 2020.

  • Rodeo Ruling Clarifies Atty Conflict Rules In Derivative Suits

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    While the Texas Supreme Court's recent decision not to disqualify Kelly Hart & Hallman's representation of owners of the Billy Bob's Texas rodeo in a dispute over control of the business is noteworthy, its clarification on firms' conflicts of interest in derivative cases is the more important point, says former Texas Court of Appeals Justice Douglas Lang, of Dorsey & Whitney.