Securities

  • July 22, 2019

    Equifax To Pay Up To $700M To Settle Data Breach Probes

    Credit reporting giant Equifax Inc. said Monday that it has agreed to pay up to $700 million to settle federal and state investigations and consumer claims stemming from a breach that exposed Social Security numbers and other personal data for nearly 150 million people.

  • July 19, 2019

    Attys Seek $6M Award For El Pollo Loco Stock-Drop Deal

    Lawyers have asked a California federal court to award them $6 million in attorneys’ fees after settling a suit for an investor class that claimed El Pollo Loco’s top executives concealed the source of the chicken chain's decreasing sales then sold their own shares ahead of a stock plunge.

  • July 19, 2019

    Ex-Credit Suisse Director Cops To Role In $2B Loan Fraud

    A former Credit Suisse managing director on Friday admitted to his role in a bribery and investor fraud scheme involving $2 billion in loans to state-backed companies in Mozambique, telling a New York federal judge he conspired to defraud those who invested in the debt.

  • July 19, 2019

    Failed Tech Co. Execs Get Claims Trimmed In Investor's Suit

    The Delaware Chancery Court has partly dismissed a suit brought against former executives at now-defunct Basho Technologies Inc. by an investor, who accused them of violating their fiduciary duties by inducing him to invest millions in what they knew was a failing enterprise.

  • July 19, 2019

    Chancery Nixes Investor Bid For $5B Jarden Appraisal Bump

    A Delaware vice chancellor on Friday rejected a post-deal appraisal challenge by hedge fund investors that claimed the $13.2 billion sale of Jarden Corp. to Newell Rubbermaid Corp. in 2016 was undervalued by roughly $5 billion, citing recent Delaware Supreme Court decisions as a road map in setting the merger's fair share value.

  • July 19, 2019

    CFTC Gets $2.9M Win Against No-Show Alleged Fraudster

    A Texas federal judge granted the Commodity Futures Trading Commission a $2.9 million final judgment on Friday against an alleged fraudster who never appeared in the case or responded to the agency’s complaint.

  • July 19, 2019

    Chatting With The CCO: Fidelity's Norm Ashkenas

    Norm Ashkenas helped guide Fidelity's brokerage and retirement products through the 2008 financial crisis and is one of its top compliance executives at a time when standards for financial professionals are in flux.

  • July 19, 2019

    Money Moves: Covington, Weil, Eversheds Sutherland

    Covington & Burling LLP snagged a lobbying firm's formal general counsel, Weil Gotshal & Manges LLP added to its London office and Eversheds Sutherland is building out its banking team after a record year — this is Law360's latest roundup of personnel moves in the banking arena.

  • July 19, 2019

    Fraud Ring Posing As Gov't Officials, DHS Watchdog Warns

    The Department of Homeland Security’s watchdog has issued an alert about a scheme by an Atlanta-based transnational fraud ring that poses as government procurement officials to steal electronics from unsuspecting contractors.

  • July 19, 2019

    Wells Fargo Says Tribe Must Pay In $250M Loan Dispute

    Wells Fargo has sued the Picayune Rancheria of Chukchansi Indians of California in New York state court, accusing the tribe and its economic development authority of participating in a scheme to avoid making payments owed as part of a $250 million loan agreement.

  • July 19, 2019

    Groups Urge Libra Partners To Stand Up To Facebook

    Four public advocacy groups on Thursday urged the Libra Association's more than two dozen partners to withdraw from the Facebook-led cryptocurrency project, a day after skeptical lawmakers grilled the social media giant.

  • July 19, 2019

    SFX Directors, CEO To Pay $7.5M To End Shareholder Suit

    The directors of dance music festival promoter SFX Entertainment Inc. and its CEO have agreed to pay $7.5 million to settle an investor suit alleging they tried to fraudulently bolster the company's stock price before declaring bankruptcy in February 2016.

  • July 19, 2019

    FINRA Presses Brokers For Voluntary Notice On Digital Assets

    The Financial Industry Regulatory Authority has asked U.S. broker-dealers to proactively alert it if they plan to work with digital assets, adding another 12 months to a request for voluntary disclosures that FINRA launched one year ago.

  • July 19, 2019

    Engine Maker Execs Inflated Revenues By $25M, Feds Say

    An Illinois-based alternative-energy engine maker’s former executives got hit with criminal and civil securities fraud charges Friday over claims they engaged in an accounting fraud scheme that inflated company revenues by $25 million.

  • July 19, 2019

    Crypto 'IEOs' Grow Globally Despite US Legal Obstacles

    Initial exchange offerings, a fast-rising global phenomenon where cryptocurrency exchanges administer token sales on behalf of blockchain startups, stand little chance of taking off in the U.S. because of legal risks tied to this novel form of capital raising, lawyers say.

  • July 19, 2019

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

    The last week has seen the owner of a Manchester skyscraper that needed repair sue several underwriters at Lloyd's, a prominent cryptocurrency trader drag a U.K. digital currency exchange into court and an executive for Honeywell sue HSBC Bank PLC. Here, Law360 looks at those and other new claims in the U.K.

  • July 18, 2019

    Honeywell Faces FCPA Probe Related To Petrobras

    Honeywell International Inc. announced Thursday that it is under investigation by U.S. and Brazillian authorities for possible violations of the U.S. Foreign Corrupt Practices Act in relation to former third party workers from its Brazilian oil business and to Petróleo Brasileiro SA.

  • July 18, 2019

    Texas Co. Says YPF Not Entitled To $1.2M In Atty Fees

    A Texas oil and gas company told a federal court on Wednesday that it has no obligation to pay nearly $1.2 million in costs and fees to YPF SA in litigation to enforce a confirmed $9.87 million arbitral award the Argentine energy giant won against the U.S. company.

  • July 18, 2019

    Investors Push For Class Cert. In Oil Co. Stock Fraud Row

    A proposed class of investors in Dakota Plains Holdings Inc. on Thursday urged a New York federal judge to certify a class action against the bosses of the defunct oil transloading company over a purported stock manipulation scheme, citing the commonality of investor claims.

  • July 18, 2019

    Binary Options Exec Trained Reps To Con Investors, Jury Told

    On the second day of binary options executive Lee Elbaz’s fraud trial, one of her former subordinates took the stand to tell a Maryland federal jury that Elbaz coached her on how to lie to investors to bring in more cash.

  • July 18, 2019

    Linklaters Hires Blockchain Wonk As 1st US Fintech Leader

    London-based legal mammoth Linklaters LLP has hired a noted blockchain lawyer to lead its financial technology work in the United States, the firm announced Thursday on the heels of heated U.S. congressional hearings on Facebook Inc.'s potential foray into cryptocurrency.

  • July 18, 2019

    SEC Told To Emphasize That Earnings Guidance Not Required

    The U.S. Securities and Exchange Commission should make it more clear that companies are not required to give quarterly earnings guidance, certain members of a panel told agency officials on Thursday, worried that fixation on short-term results is unhealthy for America’s public markets.

  • July 18, 2019

    9th Circ. Asked To Revive Tesla Model 3 Disclosures Suit

    Investors told the Ninth Circuit that Tesla Inc. knowingly misled the public about the pace of production of its Model 3 sedan and shouldn't be allowed to dodge proposed class claims that its investors bore the brunt of the damage when Tesla's stock declined.

  • July 18, 2019

    SEC Slaps Former OSI Systems Exec With Insider Trading Suit

    A former executive of X-ray technology developer OSI Systems Inc. fraudulently used insider information to make more than $400,000, the U.S. Securities and Exchange Commission said in a suit filed in California federal court Thursday.

  • July 18, 2019

    NJ AG Says Online Rental Co., CEO Sold Unregistered Tokens

    New Jersey's attorney general slapped an online rental marketplace and its president with a state court suit Wednesday accusing them of selling more than $400,000 worth of unregistered securities to more than 200 investors in a so-called initial token offering.

Expert Analysis

  • Books And Records Requests In The Era Of Text Messages

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    Company managers are increasingly using informal electronic communications to discuss issues and make decisions. Recent decisions in Delaware and New Jersey show how courts are trying to balance shareholders’ rights to access these communications with companies’ and managers' rights to confidentiality, say Jason Levine and Andrew Erdlen of Hangley Aronchick.

  • Opinion

    7th Circ. Decision Creates Minefield For Insurance Industry

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    The Seventh Circuit's recent decision in Emmis v. Illinois National Insurance unfairly limits directors and officers coverage for policyholders, encourages litigation of insurance claims and also generates enormous liability exposure for brokers, say attorneys at Plews Shadley.

  • E-Discovery Experts Could Increase Fed. Court Efficiency

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    As electronic data demands on federal courts continue to increase, it may be time to consider whether the courts should establish an office that could be staffed with technical experts familiar with electronic discovery issues, says Douglas Smith of Kirkland.

  • Digital Asset Securities Statement May Be Missed Opportunity

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    The long-anticipated joint statement issued earlier this month by the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority reminds entities effecting transactions in digital asset securities of broker-dealer compliance requirements with regard to custody, but falls short of providing actionable guidance, say attorneys at Morgan Lewis.

  • Remembering Justice Stevens As A Law Firm Leader

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    Rothschild Barry's John Coffey, who joined Justice John Paul Stevens' law firm in 1965, shares what it was like to watch Justice Stevens practice law, mentor younger lawyers and land a malfunctioning plane.

  • Opinion

    NY Credit Card Securitization Class Action Misuses Madden

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    In Cohen v. Capital One Funding in New York federal court, the plaintiffs' argument — that special purpose trusts charged and collected interest rates in excess of New York's usury limits — relies on a flawed understanding of the Second Circuit's decision in Madden v. Midland Funding, which was itself erroneous and harmful to credit markets, says Walter Zalenski of Buckley.

  • A Look At SEC's New Auditor Independence Rule

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    The U.S. Securities and Exchange Commission's recent amendments to the rules governing auditor independence standards will narrow substantially the entities that an auditor and funds must evaluate for purposes of assessing the auditor's independence, say attorneys at Proskauer.

  • Answers To Key Legal Finance Ethics Questions

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    While there is discussion in some quarters about new regulations on commercial legal finance, the hands-off approach taken by the majority of courts and legislatures is an implicit recognition that it is already sufficiently regulated, says Danielle Cutrona of Burford Capital.

  • How The SEC Could Expand Access To Private Offerings

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    The U.S. Securities and Exchange Commission is seeking public comment on whether the definition of an "accredited investor" should be expanded to increase access to private securities placements. The move may be a response to growing complaints that small investors are being shut out of these higher-return offerings, says David Stockton of Kilpatrick Townsend.

  • Federal Agencies Need A Uniform Record-Keeping Process

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    The administrative record is very important to federal agency litigation — as showcased in last month's U.S. Supreme Court decision concerning the addition of a citizenship question to the 2020 census — yet there is no set of consistent principles to guide agencies in compiling these official records, say attorneys at WilmerHale.

  • What To Know About Pending Insider Trading Legislation

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    Recently introduced in the U.S. House of Representatives, the Insider Trading Prohibition Act will represent a potentially significant clarification of U.S. insider trading laws if it proceeds further. And it could be viewed as extending criminal liability to “reckless” conduct, say attorneys at Cleary.

  • Patchwork Of Broker Conduct Regs Complicates Compliance

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    Until challenges to the U.S. Securities and Exchange Commission's newly adopted Regulation Best Interest play out in court, broker-dealers can reconcile conflicting state and federal standards of conduct by complying with the most restrictive applicable regulatory requirements, say Ghillaine Reid and Kurt Wolfe of Troutman Sanders.

  • The Role Of Dictionaries In Last Term's High Court Decisions

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    Since 32 of the 67 decisions issued by the U.S. Supreme Court during its October term cite dictionaries, it’s worth reviewing the opinions to learn which dictionaries the justices consulted and how they used them, say Bruce Wessel and Brian Weissenberg of Irell & Manella.

  • How To Evaluate The Rise In Legal Employment

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    Although the rate of employment for law school graduates — which had been falling steadily — saw a small increase over the last year, other factors, such as fewer graduates overall and potential future job growth stagnation, temper the good news for those pursuing law degrees, say Tiffane Cochran and Tyler Grimm of AccessLex Institute.

  • How Proposed Law Could Affect SEC Disqualification Waivers

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    Legislation introduced in Congress this month would reshape the U.S. Securities and Exchange Commission’s process for granting waivers to companies disqualified from certain financial activities by government enforcement actions, potentially injecting politics into the waiver process, and hamstringing authorities' ability to settle rather than litigate cases, say attorneys at Simpson Thacher.