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Securities
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July 23, 2025
Vietnamese Investors Seek Funds Back From EB-5 Project
Fourteen Vietnamese nationals have sued a Virginia law firm and its head attorney, seeking to cancel their $500,000 investments in a hotel redevelopment project after the federal government said it was denying their petitions for conditional permanent residency.
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July 23, 2025
Stitch Fix Execs Hid Losses And Sold $102M In Stock, Suit Says
Stitch Fix's top brass have been hit with a shareholder derivative suit accusing them of selling more than $102 million worth of company stock on insider information, as the company's new purchasing option was undercutting and cannibalizing its core curated box subscription.
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July 23, 2025
Medical Device Co. Faces Investor Suit Over Sales Decline
Eye surgery equipment manufacturer RxSight Inc. has been hit with a proposed shareholder class action accusing it of concealing "adoption challenges" and declining sales of its products, which led to a nearly 38% hit to shares when it finally disclosed the shortcomings.
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July 23, 2025
MicroStrategy Sued In Del. After No-Vote Stock Expansion
A stockholder of cryptocurrency venture MicroStrategy Inc. has launched a proposed class suit in Delaware's Court of Chancery, accusing the company and its chairman and former CEO, Michael Saylor, of amending — without a stockholder vote — liquidation preference rules for some preferred company stock.
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July 23, 2025
3rd Circ. Backs Off 2nd Look At Class Action Fraud Sanction
The Third Circuit has reissued an opinion upholding the conviction of a man accused of defrauding shareholder settlement funds, but saying it should not have previously ordered the lower court to potentially increase the $31 million judgment against the man.
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July 23, 2025
Ex-Cannabis Co. CFO OK'd To Argue Good Faith In SEC Case
A former executive of cannabis company Acreage Holdings Inc., accused of falsifying the company's financials, will be permitted to argue that he was acting in good faith, a Manhattan federal judge said Wednesday, finding it was too early to know whether attorney-client privilege would block his defense.
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July 23, 2025
Adviser Drops FINRA 5th Amendment Challenge
A financial adviser has dropped his Fifth Amendment challenge against the Financial Industry Regulatory Authority, following the regulator's arguments that it is not subject to constitutional requirements when carrying out its self-regulatory responsibilities.
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July 23, 2025
SEC Asks 8th Circ. To Rule On Abandoned Climate Regs
The U.S. Securities and Exchange Commission asked the Eighth Circuit on Wednesday to decide the fate of Biden-era climate disclosure rules that the agency has said it will no longer defend against challenges brought by Republican-led states and business interests.
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July 23, 2025
Chancery Denies Toss Of AT&T Cos.' Investor Payout Suits
A Delaware vice chancellor sent toward trial Wednesday a fleet of coordinated, derivative suits seeking hundreds of millions of dollars in damages from AT&T and affiliates for allegedly claiming excessive shares of partnership revenues, in a ruling that also limited time windows for some claims.
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July 23, 2025
Ex-Real Estate Finance Pro Tapped For OCC Chief Of Staff
President Donald Trump's top national bank regulator has hired a new chief of staff, bringing on a former federal housing finance official from the private sector to help steer policy coordination and internal operations at the Office of the Comptroller of the Currency, the agency said Wednesday.
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July 23, 2025
CFTC Settles With Puerto Rico-Based Gas Futures Trader
The Commodity Futures Trading Commission and a Puerto Rico-based natural gas futures trader on Wednesday announced that they had reached a settlement, ending the agency's suit alleging that the trader used nonpublic information to make profitable energy trades.
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July 22, 2025
Becton Dickinson Investors Seek Final OK Of $9M Deal
Investors in medical tech manufacturer Becton Dickinson are seeking final approval of their $9 million deal that will end derivative claims the company was damaged by its attempts to hide regulatory problems regarding sales of its Alaris pump, which would add to the list of settlements the company has entered over the alleged misrepresentations.
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July 22, 2025
SEC Says Ariz. Man Traded On Pal's Divulged Merger Info
An Arizona man has agreed to pay the U.S. Securities and Exchange Commission nearly $168,000 to resolve claims he engaged in insider trading of a trucking company's shares after a friend who worked for the company's competitor informally mentioned his employer's secret acquisition talks.
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July 22, 2025
EQT Investors' $167.5M Deal To End Merger Suit Gets 1st OK
Investors in energy company EQT Corp. have gotten an initial green light for their $167.5 million settlement to end claims the company overstated the benefits of its $6.7 billion merger with Rice Energy, drawing what's purported to be the largest shareholder settlement in the Western District of Pennsylvania closer to a close.
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July 22, 2025
Basel Exit Could Hurt US Influence, Experts Warn At Fed Event
Banking industry experts warned Tuesday that the U.S. risks undermining its global influence and keeping bank capital costs elevated if it doesn't implement some form of the so-called Basel III endgame, with one former Federal Reserve official likening the prospect of such a retreat to the "Peanuts" gag of Lucy yanking the football from Charlie Brown.
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July 22, 2025
GOP Senators Float Crypto Market Structure Discussion Draft
Republicans on the Senate Banking Committee on Tuesday circulated a discussion draft of their bill to regulate crypto markets building on the House's Clarity Act, which passed the lower chamber last week.
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July 22, 2025
Convicted Crypto Hacker Used Tornado Cash To Aid Coverup
A former Amazon engineer who was sentenced to three years in prison after admitting to stealing approximately $12 million from cryptocurrency exchanges testified Tuesday that he used Tornado Cash as part of a complex scheme to cover his hacking activities, as the trial of its co-founder entered its second week.
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July 22, 2025
CFTC Denied Early Win In $185M Metals Fraud Suit
A Texas federal judge has denied summary judgment to both the Commodity Futures Trading Commission and two individual defendants in a fraud suit that accuses them and their entities of ripping off more than 1,600, mostly elderly, investors and causing over $185 million in customer losses, setting the matter up for a potential trial.
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July 22, 2025
CME E-Trading Was Open Before Data Center, Jury Hears
Chicago Mercantile Exchange members were using electronic trading connectivity tools alongside nonmembers and paying equal access fees for at least a decade before the exchange opened a data center that some members alleged violated their contractual floor exclusivity and access rights, an Illinois jury heard Tuesday.
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July 22, 2025
Del. Boutique Wins 'Heated' Battle To Lead Endeavor Suit
Litigation boutique Abrams & Bayliss LLP has been handed the reins to a potential blockbuster lawsuit alleging that sports and entertainment giant Endeavor Group Holdings was undervalued in a $13 billion take-private deal, with a Delaware vice chancellor on Tuesday settling what she described as a "heated," and at times personal, leadership fight in the case.
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July 22, 2025
Bitcoin ATM Co. Enables Crypto Scams, Class Action Says
A retiree who lost $7,000 to scammers filed a proposed class action against bitcoin ATM operator Bitcoin Depot Inc., claiming the company facilitates schemes that target the elderly by failing to intervene in suspicious transactions, misrepresenting its services' security and continuing to take a cut of "red flag" transactions.
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July 22, 2025
Ex-Broker Charged In $9.5M Ponzi Scheme Targeting Investors
An ex-securities broker was indicted on one count of wire fraud and one count of money laundering for allegedly orchestrating a $9.5 million Ponzi scheme involving purported bond investment opportunities and faces a parallel civil suit from the U.S. Securities and Exchange Commission.
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July 22, 2025
Pot Co. Claims Landlord Stole Trade Secrets, Started Rival Co.
A Los Angeles dispensary and cannabis grower has claimed that its landlord, the Art Rubinstein Family Trust, lured it into a business partnership so the landlord could steal trade secrets and later coerce the tenant into extending its lease, according to a lawsuit filed in California state court.
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July 22, 2025
Ex-Informant Gentile Should Pay SEC $15.5M, Judge Says
A U.S. magistrate judge has recommended that former government informant Guy Gentile pay $15.5 million to the U.S. Securities and Exchange Commission for failing to register his Bahamas-based brokerage firm with the regulator.
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July 22, 2025
Chancery Tosses Derivative Suit For Pharma Lawsuit Costs
A Delaware vice chancellor tossed on Tuesday a Corcept Therapeutics Inc. stockholder suit seeking derivative recovery of millions the company paid out to regulators for "aggressive" off-label marketing and sales of its sole drug, used to treat complications of the rare disease Cushing's syndrome.
Expert Analysis
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New FCPA Guidance Creates 5 Compliance Imperatives
In light of new Foreign Corrupt Practices Act guidelines that mark a fundamental shift in enforcement priorities, companies should consider several specific steps to ensure compliance, from enhanced due diligence to robust whistleblower protections, says Andrew Wirmani at Reese Marketos.
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Series
Playing The Violin Makes Me A Better Lawyer
Playing violin in a string quartet reminds me that flexibility, ambition, strong listening skills, thoughtful leadership and intentional collaboration are all keys to a successful legal practice, says Julie Park at MoFo.
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SEC Proposal Could Hurt Foreign Issuers' US Market Access
The U.S. Securities and Exchange Commission’s June call for feedback on potentially narrowing how it designates foreign private issuers of securities could ultimately result in significant new barriers for traders that rely on FPI accommodations to participate in U.S. markets, say attorneys at Gibson Dunn.
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DOJ's 1st M&A Declination Shows Value Of Self-Disclosures
The U.S. Department of Justice's recent decision not to charge private equity firm White Deer Management — the first such declination under an M&A safe harbor policy announced last year — signals that even in high-priority national security matters, the DOJ looks highly upon voluntary self-disclosures, say attorneys at Perkins Coie.
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Series
Law School's Missed Lessons: Practicing Self-Care
Law schools don’t teach the mental, physical and emotional health maintenance tools necessary to deal with the profession's many demands, but practicing self-care is an important key to success that can help to improve focus, manage stress and reduce burnout, says Rachel Leonard at MG+M.
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Nev. Steps Up Efforts To Attract Incorporations With New Law
Recent amendments to Nevada corporate law, which will narrow controlling stockholders’ liability, streamline mergers and allow companies to opt out of jury trials, show the interstate competition to attract new and reincorporating companies is still heating up, say attorneys at Simpson Thacher.
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ABA Opinion Makes It A Bit Easier To Drop A 'Hot Potato'
The American Bar Association's recent ethics opinion clarifies when attorneys may terminate clients without good cause, though courts may still disqualify a lawyer who drops a client like a hot potato, so sending a closeout letter is always a best practice, say attorneys at Thompson Hine.
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3rd-Party Audit Tactics To Improve Export Control Compliance
Companies should take a strategic approach to third-party audits in response to the Trump administration's ramp-up of export control enforcement with steps that strengthen their ability to identify the control weaknesses of distributors, dealers and resellers, say Michael Huneke at Hughes Hubbard, and John Rademacher and Abby Williams at Secretariat Advisors.
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Can Companies Add Tariffs Back To Earnings Calculations?
With the recent and continually evolving tariffs announced by the Trump administration, John Ryan at King & Spalding takes a detailed look at whether those new tariffs can be added back in calculating earnings before interest, taxes, depreciation and amortization — an important question that may greatly affect a company's compliance with its financial covenants.
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Series
My Opera And Baseball Careers Make Me A Better Lawyer
Though participating in opera and the world of professional baseball often pulls me away from the office, my avocations improve my legal career by helping me perform under scrutiny, prioritize team success, and maintain joy and perspective at work, says Adam Unger at Herrick Feinstein.
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A Look At DOJ's Dropped Case Against Early Crypto Operator
The prosecution of an early crypto exchange operator over alleged unlicensed money transmission was recently dropped in Indiana federal court, showcasing that the U.S. Justice Department may be limiting the types of enforcement cases it will bring against digital asset firms, say attorneys at Greenberg Traurig.
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Policy Shifts Bring New Anti-Money Laundering Challenges
In the second half of 2025, the U.S. anti-money laundering regulatory landscape is poised for decisive shifts in enforcement priorities, compliance expectations and legislative developments — so investment advisers and other financial institutions should take steps to prepare for potential new obligations and areas of risk, say attorneys at Linklaters.
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8 Ways Lawyers Can Protect The Rule Of Law In Their Work
Whether they are concerned with judicial independence, regulatory predictability or client confidence, lawyers can take specific meaningful actions on their own when traditional structures are too slow or too compromised to respond, says Angeli Patel at the Berkeley Center of Law and Business.
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Assessing New Changes To Texas Officer Exculpation Law
Consistent with Texas' recent modernization of its corporate law, the recently passed S.B. 2411 allows officer exculpation, streamlines certificate of formation amendments, authorizes representatives to act on shareholders' behalf in mergers and makes other changes aimed toward companies seeking a more codified, statutory model of corporate governance, say attorneys at Bracewell.
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Is SEC Moving Away From Parallel Insider Trading Cases?
The U.S. Securities and Exchange Commission's apparent lack of follow-up in four recent criminal cases of insider trading brought by the Justice Department suggests the SEC may be reconsidering the expense and effort of bringing parallel civil charges for insider trading, say attorneys at Dentons.