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Securities
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May 06, 2025
Investors Sue West Pharma Over Post-COVID Stock Losses
The New England Teamsters Pension Fund has sued West Pharmaceutical Services Inc. and its top brass, alleging they misled investors by overstating demand for the company's high-margin products and hiding the loss of contracts after the COVID-19 pandemic, causing a stock price drop when the truth was finally revealed.
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May 06, 2025
TV Producer Gets 18 Months For Embezzlement, Fraud
The producer of a yet-to-be-released thriller television series was sentenced to 18 months in prison Tuesday after pleading guilty to defrauding the show's main financial backer.
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May 06, 2025
SafeMoon CEO Tells Jury Founder To Blame For Investor Fib
Counsel for a U.S. Army veteran in Utah who served as CEO of SafeMoon told a Brooklyn, New York, federal jury Tuesday that he did not conspire to loot the crypto company's assets, implying its fugitive founder is to blame for a key misrepresentation.
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May 06, 2025
Ex-Investor In Cannabis-Infused Water Wants Charges Tossed
A former shareholder of American Premium Water Corp. is urging an Ohio federal judge to throw out the charges against him alleging that he participated in a $10 million pump-and-dump scheme, saying the indictment doesn't properly allege his wrongdoing.
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May 06, 2025
Senate Panel Advances Bowman For Fed Supervision Chief
The U.S. Senate Banking Committee on Tuesday endorsed President Donald Trump's selection of Federal Reserve Gov. Michelle Bowman to be the top bank regulatory official at the central bank, advancing her as part of his latest slate of financial nominees.
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May 05, 2025
Calif. Atty Gets 21 Months In Prison For $8.8M Investor Scam
An Orange County lawyer who purported to provide short-term high-interest loans to the rich and famous but used the funds to gamble away about $8.8 million at Las Vegas casinos and live a lavish lifestyle was sentenced to 21 months in prison on Monday in California federal court.
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May 05, 2025
Long Island Judge Installed As Interim EDNY US Atty
Long Island state court Judge Joseph Nocella Jr. was sworn in Monday as the interim U.S. attorney for the Eastern District of New York, a post he will hold for 120 days, or until the U.S. Senate confirms his nomination by President Donald Trump, the attorney's office announced.
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May 05, 2025
CFTC Drops DC Circ. Appeal Over Kalshi's Election Contracts
The U.S. Commodity Futures Trading Commission moved Monday to voluntarily drop its D.C. Circuit challenge over trading platform Kalshi's election contracts, which allow users to trade on the outcome of U.S. elections.
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May 05, 2025
Skadden-Led Crypto Platform EToro Eyes $480M IPO
Crypto-friendly trading platform eToro Group Ltd. on Monday launched plans for an initial public offering that could raise $480 million for the company and its shareholders, marking another sign that the IPO market's recent cold spell is beginning to thaw.
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May 05, 2025
Crypto Exec Says Feds Failed To Disclose Key Evidence
An indicted co-founder of crypto mixing service Samourai Wallet told a New York federal judge on Monday about prosecutors' alleged "shocking" failure to disclose evidence that calls into question the criminal charges brought against him and asked for a hearing into the alleged slip-up.
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May 05, 2025
Pharma Co. Escapes Investor Liver Drug Trial Suit, For Now
Biopharmaceutical company Akero Therapeutics Inc. and its executives have escaped, for now, a proposed class action alleging they misled investors about the patient population in a clinical trial for Akero's liver disease treatment, with a California federal judge on Monday rejecting the suit's theory of motive for the defendants.
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May 05, 2025
Celsius Exec Decries 'Venom-Laced' Gov't Sentencing Memo
The founder of defunct cryptocurrency platform Celsius told a Manhattan federal judge that a sentencing memorandum in which prosecutors asked for a 20-year prison sentence was a "venom-laced" attempt to paint him as a "fiend" and ignore his prior law-abiding business ventures and status as a Soviet Jewish refugee.
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May 05, 2025
Crypto Miner Objects To Celsius Sanctions Try In Ch. 11 Case
Crypto mining company Mawson Infrastructure Group Inc. asked a Delaware bankruptcy judge to throw out an attempt by Celsius Network to impose sanctions on Mawson in the company's involuntary Chapter 11 case, saying its failed bid to extend an automatic stay to its subsidiaries was performed in good faith.
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May 05, 2025
Colo. Pastor Claims No Ill Intent In Alleged Crypto Scheme
A Colorado pastor accused of inducing $3.4 million in investments into a worthless cryptocurrency and pocketing more than a third of those investor funds told a state court Monday that the project didn't go as planned, but he and his wife had "no intent to evade the law."
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May 05, 2025
5 Firms Pilot Pershing Square's $900M Howard Hughes Deal
Hedge fund Pershing Square will grow its ownership stake in Howard Hughes Holdings and expand the company's business lines beyond real estate development in a $900 million deal put together by five law firms, the companies said Monday.
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May 05, 2025
Umpqua Bank Class Seeks Approval Of $55M Ponzi Suit Deal
A class of Umpqua Bank investors has asked a California federal judge to give the initial OK to a $55 million settlement to end a suit alleging the bank helped execute a $300 million Ponzi scheme led by a since-deceased real estate investment manager.
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May 02, 2025
Smith & Wesson Says Catholic Investors' Suit Misfires
Firearms manufacturer Smith & Wesson Brands Inc. slammed as mere "social activism" an investor lawsuit filed by groups of Catholic sisters seeking to curb company sales and marketing of AR-15-style rifles that are sometimes used in mass shootings, urging a Nevada federal judge to dismiss the suit and the claims that it violated a fiduciary duty.
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May 02, 2025
Head Of 'Mother Teresa' Ponzi Scheme Owes SEC $4.1M
A self-styled "Mother Teresa" serving a 20-year prison sentence for wire fraud conspiracy in a $194.1 million Ponzi scheme is liable for $4.1 million in connection with U.S. Securities and Exchange Commission fraud claims, though that debt is satisfied by the $186 million forfeiture order in her federal criminal case, a Florida federal judge has determined.
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May 02, 2025
Dems Urge Fed To Rethink $35B Capital One-Discover Deal
Democratic Sen. Elizabeth Warren of Massachusetts and Rep. Maxine Waters, D-Calif., have formally petitioned the Federal Reserve to pause and revisit its approval of Capital One's $35 billion acquisition of Discover, saying the central bank's analysis of the transaction had glaring gaps that make its conclusion legally unsustainable.
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May 02, 2025
11th Circ. Urged To Revive Fla. Suit Over Car Co. Buybacks
An investor urged the Eleventh Circuit on Friday to revive his claim that the CEO of a Florida company that develops navigation technology for self-driving cars improperly made nearly $24 million from share buybacks, saying his "indirect pecuniary" interest in the transaction precludes him from profits under federal law.
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May 02, 2025
Dick's Sporting Goods Execs Sued Over Post-COVID Issues
The top brass of Dick's Sporting Goods was hit with a shareholder derivative suit Friday alleging that the company failed to disclose excess inventory and increased shrinkage or theft following the COVID-19 pandemic, which caused Dick's stock price to drop by more than 24% once the truth was revealed.
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May 02, 2025
Texas-Led AGs Defend BlackRock Coal Investments Suit
A coalition of Republican states led by Texas are arguing that BlackRock Inc.'s public commitments to reducing its carbon footprint are evidence that it and two other leading asset managers teamed up to suppress the production of coal in the United States, asking a federal judge not to dismiss their case against the firms.
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May 02, 2025
'Smart' Glass Maker Settles SPAC Merger Suit For $11M
"Smart" glass manufacturer View Inc. and investors have reached an $11 million deal to resolve a proposed class action over an internal probe the company announced following its go-public merger with a special purpose acquisition company.
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May 02, 2025
More Crypto Easing For Banks Is 'Critical,' Trade Groups Say
A coalition of Wall Street trade groups urged the executive branch to continue removing "barriers" limiting financial institutions from engaging with digital assets in a joint letter calling for uniform risk-management expectations over processes that require firms to clear their crypto activities with banking regulators ahead of time.
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May 02, 2025
Ex-SCWorx CEO Seeks Sentencing Delay Over Restitution Row
The former chief executive of SCWorx Corp. who was convicted of securities fraud after publicizing a $670 million COVID-19 test kit contract that never materialized told a New Jersey federal court Friday that he's seeking a one-month delay in his sentencing, citing the government's statement that it would pursue more than $140 million in restitution.
Expert Analysis
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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SEC Confidential Review Process Provides Issuers Flexibility
The U.S. Securities and Exchange Commission's recently announced enhancements to the process for confidentially submitting draft registration statements will be immediately impactful for issuers seeking to access the public capital markets, and should provide more grounds to explore and plan public offerings, say attorneys at Lowenstein Sandler.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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How Del. Law Rework Limits Corporate Records Requests
Newly enacted amendments to a section of the Delaware General Corporation Law that allows stockholders and beneficial owners to demand inspection of Delaware corporations' books and records likely curtails the scope of such inspections and aids defendants in framing motions to dismiss at the pleading stage, says Jonathan Richman at Brown Rudnick.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q1
Among the most notable developments in California banking in the first quarter of the year, regulators and legislators issued regulations interpreting debt collection laws, stepped up enforcement actions, and expanded consumer protections for those affected by wildfires, says Stephen Britt at Severson & Werson.
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How The ESG Investing Rule Survived Loper Bright, For Now
A Texas federal court's recent decision in Utah v. Micone upholding the U.S. Department of Labor's 2022 ESG investing rule highlights how regulations can withstand the post-Loper Bright landscape when an agency's interpretation of its statutorily determined boundaries is not granted deference, say attorneys at Miller & Chevalier.