Securities

  • September 25, 2020

    Principia Investor Sues For Records On $3.7B Sanofi Deal

    A Principia Biopharma investor filed suit Friday in Delaware Chancery Court for access to records on the company's pending $3.7 billion sale to Sanofi, saying he wants to investigate whether the transaction was fueled by "selfish desires" of certain Principia directors.

  • September 25, 2020

    Clearing House Fight Not For Arbitration, 11th Circ. Told

    A Nebraska-based clearing house asked the Eleventh Circuit on Friday to overturn an order compelling arbitration with a securities trader whose actions cost the clearing house $16.6 million, arguing that a settlement the parties reached after the loss does not contain an arbitration clause.

  • September 25, 2020

    Care.com Escapes Investors' Background Check Suit

    A Massachusetts federal judge on Friday tossed a proposed class action that alleged home care referral website Care.com and its executives led investors to believe it did background checks on care providers, ruling the company didn't say it would vet every caregiver on its website.

  • September 25, 2020

    Calif. Men Sentenced In CBD Co. Pump-And-Dump Scheme

    Two California men have been sentenced to more than a year in prison after pleading guilty to a pump-and-dump stock scheme involving a shell company styling itself as a maker of CBD hemp water, Pennsylvania federal prosecutors said.

  • September 25, 2020

    Google Parent Makes 'Sweeping' Deal To Boost Diversity

    Google parent Alphabet Inc. has agreed to spend $310 million on diversity and inclusion initiatives to settle California litigation alleging the company misled investors by covering up sexual harassment and abuse by executives, the shareholders' attorneys said Friday.

  • September 25, 2020

    BNY Mellon Accused Of Aiding Ex-BigLaw Atty In $4B Fraud

    Bank of New York Mellon was accused of playing a "central role" in the $4 billion OneCoin cryptocurrency scam by investors in a proposed class action amended on Thursday.

  • September 25, 2020

    Investor Sues $2.6B Allergy Drug Maker Over Nestle Deal

    An investor in a $2.6 billion biopharmaceutical company that's making the first federally approved peanut allergy treatment for children alleged that the company left out key financial information in disclosures surrounding its planned sale to Nestle, contending in a New York federal court complaint that the omission makes it impossible for shareholders to properly weigh the deal.

  • September 25, 2020

    Fla. Investment Exec Gets 7 Years For $18M Pre-IPO Fraud

    A tearful Florida fund manager was sentenced to seven years in prison Friday for perpetrating an $18 million fraud involving sham investments in technology companies prior to their initial public offerings, avoiding a request by New York federal prosecutors for at least 14 years behind bars.

  • September 25, 2020

    Dime Community Investor Sues To Block $489M Bank Merger

    A Dime Community Bancshares Inc. investor has filed a proposed class action in Delaware federal court seeking to block the bank's planned $489 million sale to Bridge Bancorp Inc., claiming not enough information has been provided for shareholders to make an informed decision on the transaction.

  • September 25, 2020

    SEC Says Biotech Boss Conned Investors Over COVID-19 Test

    The U.S. Securities and Exchange Commission filed suit in California federal court Friday against a top executive of biotechnology company Arrayit Corp. who it says conned investors into believing the company had developed a COVID-19 test and misled them about the status of financial reports.

  • September 25, 2020

    Brown Law Tapped To Lead Tivity Health Class Suit In Del.

    The Brown Law Firm PC emerged Thursday as lead counsel in a federal consolidated suit seeking damages from directors and officers in the name of nutrition company Tivity Health Inc., who are blamed for a steep stock slump tied to its $1.3 billion acquisition of Nutrisystem Inc. in 2019.

  • September 25, 2020

    Accountant Challenging SEC ALJs Seeks Full 5th Circ. Review

    A Texas-based accountant is seeking a full-panel review from the Fifth Circuit as her battle to prove the unconstitutionality of the U.S. Securities and Exchange Commission's administrative law judges continues.

  • September 25, 2020

    Jury Convicts Ex-Deutsche Traders Of Wire Fraud

    An Illinois federal jury on Friday convicted two former Deutsche Bank traders of wire fraud but cleared them of conspiracy charges stemming from what prosecutors called an unlawful precious metals market spoofing scheme that tricked competing market participants and helped them execute orders at better prices.

  • September 25, 2020

    Qudian Investors Fight Bid To Nix Securities Suit Over IPO

    A proposed class of investors in online microlender Qudian Inc. urged a New York federal judge Thursday to reject bids to dismiss a securities suit alleging the Chinese company hid its unfair debt collection practices, business plan and data vulnerabilities, causing its stock to tank after its initial public offering.

  • September 25, 2020

    Taxation With Representation: Weil, Latham, Skadden

    In this week's Taxation With Representation, United Wholesale Mortgage goes public in a $16 billion merger, biotechnology firm Illumina Inc. buys cancer detection company Grail for $8 billion, and Microsoft spends $7.5 billion for two video game companies.

  • September 25, 2020

    LNG Shipper Sued After Exec Tied To Petrobras Bribery Probe

    An investor in liquefied natural gas shipping company Golar LNG has filed a putative class action claiming its artificially inflated stock prices fell following reports that the CEO of a company joint venture was named in the Brazilian anti-corruption sweep Operation Car Wash.

  • September 25, 2020

    Investor Says $100M Credit Suisse RMBS Suit Not Too Late

    A Jersey-based investment vehicle has said time should not be a barrier in its $100 million London lawsuit against Credit Suisse over toxic mortgage-backed securities, as it took U.S. prosecutors years to uncover the alleged misconduct.

  • September 25, 2020

    EU Securities Watchdog Reviews Centralized Trading Rules

    Europe's securities watchdog said Friday it is reviewing its post-global financial crisis rules that force trading in derivatives and bonds to be moved onto centralized and regulated platforms.

  • September 25, 2020

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

    This week in London saw Deutsche Bank sue the Italian city of Naples over derivatives, Nationwide Building Society sue law firm Manches, and institutional investors file two new cases against supermarket chain Tesco. Here, Law360 looks at those and other new claims in the U.K.

  • September 25, 2020

    CFTC, States Say Metals.com Swindled Seniors Out Of $185M

    Two precious metals dealers targeted senior citizens in an alleged $185 million fraud scheme perpetrated in part through false claims that company principals were friends with an unnamed conservative television host, according to a joint civil enforcement action filed by the U.S. Commodity Futures Trading Commission and 30 state regulators on Friday.

  • September 24, 2020

    Feds Ask Justices To Ignore Convicted HSBC Banker's Appeal

    Federal prosecutors have urged the U.S. Supreme Court to reject former HSBC executive Mark Johnson's bid for review of his fraud conviction over a $3.5 billion trade, saying taking another party's "right to control" its own assets is a settled form of wire fraud.

  • September 24, 2020

    SEC Rule A Bittersweet Victory For Whistleblower Advocates

    While applauding the U.S. Securities and Exchange Commission's decision to nix a controversial plan to limit the largest whistleblower awards, whistleblower advocates are lamenting the newfound uncertainty and ambiguity they say the SEC has injected into the program.

  • September 24, 2020

    Ex-SEC Enforcement Co-Chief To Rejoin Sullivan & Cromwell

    Steven Peikin, most recently co-director of the U.S. Securities and Exchange Commission's enforcement division, will return to his former firm Sullivan & Cromwell LLP on Nov. 2 as the head of its securities and commodities investigations and enforcement practice.

  • September 24, 2020

    Attys Decry Co-Counsel's 'Irrational' Fee Bid In ICO Suit

    Half of a co-lead counsel team cried foul play over the allegedly "irrational" disbursement of an $8.3 million counsel fee following settlement of an investors' securities offering fraud suit against Swiss blockchain company Tezos Stiftung.

  • September 24, 2020

    BMW To Pay $18M To End SEC's Inflated Disclosure Claims

    BMW and two of its subsidiaries will pay $18 million to end allegations from the U.S. Securities and Exchange Commission that the carmaker inflated its reported retail sales in the U.S. through misleading disclosures, the agency announced on Thursday.

Expert Analysis

  • A Likely Tipping Point For Nonlawyer Ownership Of Law Firms

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    The Arizona Supreme Court's recent decision to eliminate prohibitions on nonlawyer ownership of law firms may show that the organized bar's long-standing rhetoric that such rules are essential to protecting the legal profession's core values is overblown, say Anthony Sebok at Cardozo School of Law and Bradley Wendel at Cornell Law School.

  • Practical Lessons From 2nd Circ. Lehman Bankruptcy Ruling

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    The Second Circuit's recent decision in the Lehman Brothers bankruptcy litigation provides guidance for market participants who structure or invest in complex finance transactions involving derivatives, as well as a useful perspective for creditors seeking to protect their rights in a bankruptcy proceeding, say Thomas Mitchell at Orrick and attorney Steven Fink.

  • Bank Lessons From OCC's Stablecoin Custody Go-Ahead

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    With the Office of the Comptroller of the Currency recently authorizing banks to hold stablecoin reserves, financial institutions should keep several compliance considerations in mind with respect to deposit insurance, anti-money laundering, risk management, liquidity, issuer identification and audit requirements, say attorneys at Morgan Lewis.

  • Key Points From New Blockchain Legal Guidance

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    Mark Dawkins and Jenny Arlington at Akin Gump analyze the Law Society and Tech London Advocates' recent guidance on blockchain, smart legal contracts, crypto assets and other advanced technologies, and explain why legal practitioners should familiarize themselves with it.

  • Foreign Securities Class Actions 10 Years After Morrison

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    The U.S. Supreme Court’s landmark 2010 decision in Morrison v. National Australia Bank has had a sweeping impact on the application of the federal securities laws to transnational securities fraud, but it has not brought the predictability and consistency it promised and has exposed foreign issuers to greater U.S. class action liability, say attorneys at Cleary.

  • A Road Map For Drafting Persuasive Discovery Motions

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    Best practices that can help litigators write convincing discovery motions include thinking about the audience, addressing a few key questions, and leaving out boilerplate from supporting briefs, says Tom Connally at Hogan Lovells.

  • Framing The Legacy Of The SEC Under Clayton

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    Attorneys at Sidley analyze recent speeches from U.S. Securities and Exchange Commission Chairman Jay Clayton and Division of Enforcement Director Stephanie Avakian in light of the commission’s last four years of enforcement achievements, and with an eye toward the agency’s forward priorities.

  • How Congress Can Depoliticize The Supreme Court

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    Congress has multiple means to take the politics out of federal judicial nominations and restore the independence of the U.S. Supreme Court — three of which can be implemented without a constitutional amendment, says Franklin Amanat at DiCello Levitt.

  • Competing Libor-Transition Proposals Create More Problems

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    While the U.S., U.K. and EU have proposed legislation in anticipation of the approaching Libor end date, the multiplicity of their approaches gives rise to uncertainty for market participants rather than eliminating it, say Anne Beaumont at Friedman Kaplan and Janine Alexander and Audrey Favreau at Collyer Bristow.

  • Opinion

    The Case For A Nonpolitical Federal Judiciary

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    For the last 20 years, at the insistence of both parties, U.S. Supreme Court nominations have been fierce ideological battles — which is bad for the country and bad for the public's perception of the legitimacy of the court, say Judge Eric Moyé, Judge Craig Smith and Winston & Strawn partner Tom Melsheimer.

  • Anthem-Cigna Merger Ruling Highlights Post-Deal Issues

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    The Delaware Chancery Court's recent decision to halt the Anthem-Cigna merger on antitrust grounds is most notable for not holding Cigna liable for breaching its obligation to support the transaction, and underscores the vulnerability of merger-of-equals transactions to post-signing issues, say attorneys at Fried Frank.

  • The Keys To A Better Privilege Logging Paradigm

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    Current privilege logging practices to identify what information is being withheld from discovery often lead to costly disputes, so practitioners should adopt a system based on trust and good faith, similar to the presumptions embedded in the business judgment rule for corporate directors and officers, say Kevin Brady at Volkswagen and Charles Ragan and Ted Hiser at Redgrave.

  • Opinion

    Pending Changes Pose Threat To SEC Whistleblower Program

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    If the U.S. Securities and Exchange Commission approves changes to the Dodd-Frank Act whistleblower rules on Wednesday, it will weaken protections for tipsters and radically undermine a regime that has returned $750 million to investors and collected over $2.5 billion in sanctions, says Stephen Kohn of Kohn Kohn & Colapinto.

  • White House Due Process Memo Could Reform Enforcement

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    A little-noticed memo recently issued by the Trump administration in response to the pandemic, directing federal agencies to provide greater due process to individuals and companies under regulatory investigation, represents a long-overdue sea change in the way justice is carried out in enforcement proceedings, say Joan Meyer and Norman Bloch at Thompson Hine.

  • What Shifting FCPA Enforcement Means For Financial Cos.

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    In this brief video, Tom Firestone and Daniela Fonseca Puggina at Baker McKenzie analyze how Foreign Corrupt Practices Act enforcement is placing greater emphasis on bribe recipients, and what this trend means for financial institutions and their know-your-customer policies and practices.

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