Securities

  • April 09, 2020

    Wave Of Suits Could Lead To New Era In Crypto Litigation

    A flood of securities class action complaints filed last week in New York federal court against a host of digital asset exchanges and issuers may foreshadow a new phase in fintech litigation, building on a flurry of targeted actions and guidance over the past year.

  • April 09, 2020

    Preston Hollow Gets No Relief For Nuveen's 'Lies'

    A Delaware vice chancellor on Thursday ruled that financial industry giant Nuveen LLC used “threats and lies” to harm competitor Preston Hollow Capital LLC, but he granted no relief for the bad acts, saying the Chancery Court cannot provide the equitable relief Preston Hollow sought.

  • April 09, 2020

    Lieff Cabraser Fights Order To Repay $1M In State Street Deal

    Lieff Cabraser said Thursday that it plans to challenge a $1.1 million repayment ordered by a Massachusetts federal judge who said the firm had overbilled a class of investors in a $300 million settlement with State Street Corp. over its foreign exchange practices.

  • April 09, 2020

    SEC Enforcement Expected To Surge On COVID Volatility

    Following the erratic stock market swings fueled by the COVID-19 crisis, attorneys expect a surge in U.S. Securities and Exchange Commission investigations tackling a broad range of potential violations, from outright fraud to disclosure issues.

  • April 09, 2020

    SEC Urges Public Cos. To Bolster Disclosures Amid Outbreak

    The U.S. Securities and Exchange Commission’s top brass stressed the importance of “high quality” disclosures amid COVID-19, urging SEC-registered public companies to bolster forward-looking statements as they prep for earnings releases.

  • April 09, 2020

    Legg Mason Investor Seeks To Block Vote On Franklin Merger

    Legg Mason Inc. and its board of directors were hit Wednesday by an investor's lawsuit seeking to block a shareholder vote on the company's proposed acquisition by fellow asset management firm Franklin Resources Inc. subsidiary Alpha Sub Inc.

  • April 09, 2020

    Kraft Heinz ERISA Stock Price Suit Kicked To Illinois

    A Pennsylvania federal judge on Thursday kicked to Illinois federal court a proposed Employee Retirement Income Security Act class action accusing Kraft Heinz executives of letting workers invest their retirement savings in overvalued company stock, saying similar litigation is already happening in the Prairie State.

  • April 09, 2020

    Wesco Aircraft Ditches Investor Suit Over $1.9B Merger

    Wesco Aircraft Holdings Inc. and several former executives escaped securities fraud claims over its 2019 merger with Platinum Equity Advisors LLC after a New York federal judge found that Wesco’s alleged misstatements were not actionable.

  • April 09, 2020

    Claims Over News Release OK'd In Taronis Investor Suit

    Energy technology company Taronis Technologies Inc. can't end some of the claims in a proposed shareholder class action in Arizona federal court accusing the company of lying about having a contract with the city of San Diego.

  • April 09, 2020

    Proxy Firm OKs Poison Pills, Bashes Buybacks In Pandemic

    Short-term poison pills may be a reasonable response to coronavirus-related stock drops, but companies should be extremely wary about share repurchases during the pandemic, Institutional Shareholder Services Inc. said in releasing its COVID-19 policies.

  • April 09, 2020

    BofA, JPMorgan, RBS Agree To $25M Settlement In Libor Suit

    JPMorgan Chase, Bank of America and RBS have agreed to shell out a combined $25.5 million to settle bondholders' claims that they rigged the London Interbank Offered Rate, according to a bid for initial approval of the deal filed in New York federal court Wednesday.

  • April 09, 2020

    SEC Settles With 2 Traders Over 2016 Hack Of Its Database

    The U.S. Securities and Exchange Commission has resolved claims with two stock traders allegedly involved in the 2016 hack of the agency’s Edgar electronic filing system by a Ukrainian national.

  • April 09, 2020

    1st Circ. Finds No Fraud In Ocular Therapeutix Stock Suit

    Biotech company Ocular Therapeutix didn't intentionally mislead investors in conference calls and filings about manufacturing problems that led to the U.S. Food and Drug Administration twice denying its steroid treatment for eye pain, the First Circuit said Thursday.

  • April 09, 2020

    SEC Provides COVID-19 Relief To Business Development Cos.

    The U.S. Securities and Exchange Commission has temporarily relaxed financing rules for business development companies to allow additional financial support to portfolio companies struggling with the effects of COVID-19.

  • April 09, 2020

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

    The past week in London has seen a major Portuguese bank join the queue of lenders suing Mozambique in the wake of a $2 billion fraud scandal, Russia's sovereign wealth fund target another news outlet over coverage, and BP add to the legal woes for its rival Glencore. Here, Law360 looks at those and other new claims in the U.K.

  • April 08, 2020

    Trustwave Merger Suit Survives Due To 'Skimpy' Disclosure

    A Delaware vice chancellor on Wednesday let stand a lone claim from a consolidated investor suit alleging Trustwave Holdings Inc. unfairly gave certain stockholders preferential treatment in its roughly $850 million merger with Singapore Telecommunications Ltd., saying a claim related to a “decidedly skimpy” transaction disclosure can proceed.

  • April 08, 2020

    2nd Circ. Won't Ruffle Key Theory As Goldman Case Plows On

    The Second Circuit was split on whether to decertify a class of Goldman Sachs investors on Tuesday, but unanimous in declining to augment a key theory on which the class is asserting securities claims against the investment bank.

  • April 08, 2020

    Investors Say Atty Helped Vape Co. Hide Fraud Allegations

    A pair of investors in what was supposed to be a national vape shop franchise sued the business and its attorney in Florida federal court Tuesday, claiming the lawyer helped the franchiser hide allegations of fraud levied in several lawsuits from potential backers.

  • April 08, 2020

    Owlcam Investors Say Amazon Aided Executives' Self-Dealing

    Executives at Owlcam shortchanged investors with help from Amazon in a scheme to sell the dashboard camera maker's intellectual property to the tech titan in exchange for a $1 million kickback and promises of future employment, according to a lawsuit in Delaware court.

  • April 08, 2020

    DC Circ. Urged To Toss CCO's Fine For Missing Red Flags

    A former broker-dealer chief compliance officer has asked the D.C. Circuit to toss $40,000 in fines against him affirmed by the U.S. Securities and Exchange Commission, saying he shouldn’t be liable for missing a new hire’s ties to a barred broker.

  • April 08, 2020

    Ousted Factory CEO Urges Chancery To Open Path For Return

    Attorneys for Braidy Industries Inc. founder Craig T. Bouchard told Vice Chancellor Kathaleen S. McCormick during a teleconference proceeding that the company's directors flatly ignored a shareholder agreement allowing him to remove four other members of the board and reappoint a new majority, and instead improperly orchestrated his removal.

  • April 08, 2020

    DQ Sought For Attys Repping Co. And Board In Derivative Suit

    A shareholder in his family's manufacturing business urged a Kansas federal judge to disqualify two law firms from representing both the company and his siblings on its board of directors in his derivative suit over alleged self dealing, arguing that dual representation is a conflict of interest.

  • April 08, 2020

    SEC Eases Regulations On Business Development Companies

    The Securities and Exchange Commission on Wednesday agreed to ease rules on business development companies and certain funds over the objection of a dissenting commissioner, who argued the agency is weakening investor protections amid market turbulence and a health crisis.

  • April 08, 2020

    Crypto Co. Touted 'Recession Special,' Texas Regulator Says

    Texas' securities regulator announced Wednesday it took emergency action against a purported cryptocurrency miner, accusing the company of promising investors unrealistically high returns and attempting to profiteer off the global pandemic.

  • April 08, 2020

    Shareholders Sue Zoom Over Privacy, Hacking Concerns

    Video conferencing provider Zoom was hit with a proposed class action accusing it of misleading shareholders about the degree of its data privacy and security measures and failing to disclose that its service was not end-to-end encrypted.

Expert Analysis

  • Tax Considerations For REITs In A Coronavirus-Driven Market

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    Notwithstanding their well-deserved reputation for complexity, commercial mortgage real estate investment trusts possess a number of creative solutions to what can at first appear to be intractable problems at the intersection of tax law and finance when it comes to adapting to the pandemic, say attorneys at Skadden.

  • Key Risks For Green Bond Issuers When Plans Change

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    Green bond issuers struggling to adhere to their frameworks amid a pandemic-prompted economic downturn should prioritize communication with investors consistent with their reporting obligations under the relevant securities laws, contracts and listing rules, say attorneys at Latham.

  • Early Securities Class Actions Highlight COVID Litigation Risk

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    Securities class actions against Norwegian Cruise Lines and Inovio Pharmaceuticals in Florida and Pennsylvania federal courts underscore the precautions companies should consider when evaluating whether their public filings appropriately disclose coronavirus-related exposure, say attorneys at Alston & Bird.

  • A Look At Fed's New Facility For Money Market Mutual Funds

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    By quickly establishing the Money Market Mutual Fund Liquidity Facility, the Federal Reserve has taken early action aimed at stabilizing the money markets and avoiding further significant financing dislocation as a result of the COVID-19 pandemic, say attorneys at Simpson Thacher.

  • Don't Forget Firm Culture When Adapting To Remote Work

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    While law firms suddenly pivoting to remote work due to coronavirus restrictions are busy dealing with logistical challenges, an equally pressing and perhaps more difficult task may be adjusting a long-standing brick-and-mortar culture to working remotely for the first time, say Heather Clauson Haughian and Grant Walsh at Culhane Meadows.

  • SEC's New Variable Contract Disclosures Promote Readability

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    The U.S. Securities and Exchange Commission's recent updates to variable annuity and variable life insurance contract disclosures — which introduce a new summary prospectus — should improve investors' understanding of their investments' features, fees and risks, say Ronald Holinsky at Lincoln Financial Group and Robert Robertson at Dechert.

  • Ghosn Flight Shows Need For Extradition Treaty Cooperation

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    Ex-Nissan CEO Carlos Ghosn's escape from financial misconduct charges in Japan demonstrates the importance of governments working together to shore up extradition treaties, provide resources to Interpol, and support cross-border enforcement, say Tai-Heng Cheng and Ariel Atlas at Sidley.

  • Beware Intense Insider Trading Scrutiny In Current Climate

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    Ongoing investigations into several senators' stock transactions following confidential COVID-19 briefings should serve as a cautionary tale for companies — insider trading is now an area of heightened scrutiny by both public and private actors, say Haimavathi Marlier and David Newman at MoFo.

  • ERISA Fiduciary Best Practices During Market Instability

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    Plan fiduciaries can assist participants and mitigate Employee Retirement Income Security Act risk amid market uncertainty due to the coronavirus pandemic by closely monitoring investments, maintaining a diverse lineup, paying attention to employer stock funds, planning ahead and documenting processes, say attorneys at Mayer Brown.

  • How To Prepare Clients For Ponzi Schemes Amid COVID-19

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    As the major market indexes free-fall because of pandemic fears, practitioners should be on alert for Ponzi schemes and up to speed on how to manage their fallout in coordination with various federal agencies, say attorneys Dennis Cohen and Marianne Recher.

  • Minimizing Lender Risk In Health Care Finance

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    As growth in health care spending creates lucrative opportunities, lenders can mitigate unique financing issues by considering traditional collateral during the underwriting process, maximizing security over government receivables, understanding their borrower's regulatory framework, and including transaction-specific representations and warranties in credit agreements, says David Wilhelmsen at Snell & Wilmer.

  • Filling Void Of Consumer Collections Limits Amid Pandemic

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    Attorneys at Cleary examine a series of state and federal proposals that may fill the current lack of restrictions on consumer debt collection during the global pandemic, as well as enforcement risks arising from COVID-19-related defaults.

  • Inside Shareholder Rights Plans Adopted Amid COVID-19

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    Companies including Williams, Occidental Petroleum, Dave & Buster's and Delek have recently adopted shareholder rights plans to protect against unauthorized accumulations of stock as prices decline due to the pandemic. Attorneys at Fried Frank take an in-depth look at these plans and what other companies should consider.

  • Oil And Gas Cos. Must Prepare For Counterparty Bankruptcies

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    With many U.S. oil and gas producers, midstream companies and oil field service businesses struggling to survive the economic shocks from COVID-19 and the Saudi Arabia/Russia standoff, players in this space should be ready for counterparties to seek bankruptcy protection, say attorneys at Reed Smith.

  • Conducting Court Hearings Remotely: 12 Considerations

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    As more courts begin to explore remote hearings during the COVID-19 crisis, attorneys and courts should be aware of some of the common concerns accompanying video- and teleconferencing technology and make allowances to avoid these issues, say Attison Barnes III and Krystal Swendsboe at Wiley Rein.

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