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Securities
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March 27, 2025
Umpqua Bank Strikes Deal With Investors In $300M Ponzi Suit
Umpqua Bank and a class of investors on Thursday informed a California federal judge they've reached a settlement to resolve claims the bank helped execute an alleged $300 million Ponzi scheme led by a since-deceased real estate investment manager.
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March 27, 2025
Russian Oligarch-Linked Firm Owner Can't Shake SEC's Claim
A New York federal judge has declined to toss claims brought by the U.S. Securities and Exchange Commission against an investment firm owner who allegedly managed a Russian oligarch's wealth in America without ever registering with the SEC as required.
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March 27, 2025
New Del. Claims Filed In Jenzabar Stock Warrant Battle
Investors in a fund focused on higher education software company Jenzabar Inc., a company mired in years-old Delaware Court of Chancery battles over stock warrants dating to 2004, have filed an expanded, nine-count suit accusing the company and key officials of looting the fund and wrongly terminating their interests.
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March 27, 2025
PayPal Investors Drop Derivative Suit Over SEC, CFPB Probes
Shareholders of PayPal voluntarily dismissed their derivative suit against the company's executives and directors accusing them of making false statements about PayPal's practices that allegedly led to federal investigations, saying the dismissal is proper since the defendants were not liable in a similar securities class action filed against them.
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March 27, 2025
Coverage Row Over OpenText Merger Now Moot, Judge Says
A Michigan federal court tossed on Thursday an insurer's lawsuit seeking a declaration that it had no duty to indemnify a shareholder class action stemming from Covisint's 2017 merger with software company OpenText, finding the dispute is now moot because the insurer's coverage limit has already been exhausted.
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March 27, 2025
FINRA Improperly Acts As Government Agency, 6th Circ. Told
The owner of a consulting company has urged the Sixth Circuit to overturn a decision by the U.S. Securities and Exchange Commission affirming sanctions imposed by the Financial Industry Regulatory Authority for alleged securities fraud, arguing that FINRA never had jurisdiction over him.
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March 27, 2025
SEC Drops Defense Of Biden-Era Climate Disclosure Rules
The U.S. Securities and Exchange Commission said Thursday it would no longer defend regulations requiring some of the world's largest corporations to publicly disclose the effects climate change could have on their businesses, walking away from an Eighth Circuit challenge to the rules that the agency's acting chair called "unnecessarily intrusive."
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March 27, 2025
Atkins Suggests He May Open SEC's Doors To DOGE
Paul Atkins, President Donald Trump's pick to lead the U.S. Securities and Exchange Commission, on Thursday appeared to welcome the potential arrival of Elon Musk's Department of Government Efficiency at the agency, while also pushing back on suggestions that his earlier votes as a Republican commissioner exacerbated the 2008 financial crisis.
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March 27, 2025
Faegre Drinker Securities Ace Joins Spencer Fane In Denver
Spencer Fane LLP has added a securities litigation partner from Faegre Drinker Biddle & Reath LLP to its Denver office, the firm announced Thursday.
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March 27, 2025
9th Circ. Won't Stay Injunction Compelling Fed. Worker Rehire
A split Ninth Circuit panel has refused to block an injunction compelling the Trump administration to reinstate about 16,000 probationary employees to six federal agencies, saying the administration will likely lose its argument that the agencies weren't acting on an order from above when they fired the workers.
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March 27, 2025
FCPA 'Purgatory' Frustrates White Collar Bar, Anxious Clients
An abrupt pause in Foreign Corrupt Practices Act enforcement has created tension between clients eager to resolve investigations and their attorneys, who are having trouble reaching decision-makers at the U.S. Department of Justice and are more inclined to await further guidance from the government.
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March 26, 2025
Feds Led Jury Astray About $175M JPMorgan Deal, Javice Says
A lawyer for Frank founder Charlie Javice on Wednesday told a Manhattan federal jury that prosecutors have spent weeks misleading them about evidence purporting to show that she conned JPMorgan Chase & Co. into buying the now-defunct educational startup for $175 million, based on false information.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
Supreme Court Skeptical Of Nixing FCC Subsidy Fund
Conservative justices took aim Wednesday at rising costs in the country's multibillion-dollar phone and broadband subsidy system, questioning whether lawmakers put meaningful limits on the program's growth, but some argued the fund works just like others created by Congress that rely on revenues from industry fees.
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March 26, 2025
7 Firms Compete To Lead Novo Nordisk Securities Suit
Levi & Korsinsky LLP, Pomerantz LLP and the Rosen Law Firm PA are among seven law firms vying to lead proposed class claims accusing Novo Nordisk A/S of misleading investors about a clinical trial for an obesity drug.
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March 26, 2025
Crypto Co. CEO Must Face Suit Alleging Refund Fraud
The CEO of Power Block Coin LLC, which does business as SmartFi, must face a suit accusing him and the company of refusing to fulfill their "buyback guarantee" of its SmartFi tokens, with a Pennsylvania federal court ruling that the plaintiffs have sufficiently alleged that the CEO promised SmartFi would refund investors their money.
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March 26, 2025
Standard General's $4.6B Bally's Buy Draws Del. Court Suit
Hedge fund Standard General LP and its founder Soohyung Kim pulled the strings on Bally's Corp.'s $4.6 billion sale, grabbed control of the post-transaction entity and ultimately hurt stockholders, investors claim in a proposed class action filed Monday in Delaware Chancery Court.
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March 26, 2025
Atty's Falsehoods In Key Docs Aided $23M Fraud, Suit Says
A pair of investment funds and two investors have hit a lawyer with professional malpractice and misrepresentation claims in Illinois federal court, accusing him of making false statements in solicitation documents to help their since-convicted managing member carry out a $23 million fraud.
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March 26, 2025
Atkins' Industry Ties To Be Under Scope At SEC Nom Hearing
President Donald Trump's pick to lead the U.S. Securities and Exchange Commission is expected to receive a friendly reception from Republican senators at his confirmation hearing on Thursday, but one leading Democrat has promised to press Paul Atkins on his ties to industry and the conflicts that could create.
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March 26, 2025
Crypto Firm Dfinity Gets Investor Suit Tossed Over Timeliness
A California federal judge has tossed a shareholder suit against cryptocurrency firm Dfinity, siding with the firm's argument that claims it sold unregistered securities were too dated to proceed.
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March 26, 2025
Coalition Says Trump Admin Flouted Federal Rehiring Order
The Trump administration responded to an injunction compelling it to rehire over 15,000 fired probationary employees by placing them on leave, not bringing them back to work, a coalition of advocates for the workers told a California federal judge Wednesday, saying the administration hasn't complied with the injunction.
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March 26, 2025
Crypto Expert Seeks OK Of $28M Bitcoin Arbitration Award
A Malta-based cryptocurrency expert and his two companies have asked a Manhattan federal judge to enforce a more than $28 million arbitral award against a bitcoin mining server supplier they claim sent them faulty machinery.
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March 26, 2025
Ga. Judge Orders 3 To Pay $1.4M In SEC's Ponzi Scheme Suit
A Georgia federal judge has ordered three investment advisers to pay, in total, more than $1.4 million in monetary relief over their alleged roles in a Ponzi scheme involving a private equity fund named Horizon Private Equity III.
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March 26, 2025
Resort Developer Asks To Unwind Pre-Ch. 11 Equity Deal
California resort developer SilverRock Development Co. filed an adversary complaint in its Chapter 11 case Tuesday asking a Delaware court to unwind a pre-bankruptcy securitization transaction that converted preferred shares into secured debt.
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March 26, 2025
Soured Colo. Housing Partnership Spawns Another Suit
A Colorado affordable housing project undermined by a trio of investors' soured partnership generated yet another lawsuit filed by an original investor alleging a partner brought on later intentionally tanked the project out of "seething vindictiveness."
Expert Analysis
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Implications Of NY Climate Case For Generating Facilities
Regardless of how Greenidge Generation LLC v. New York Department of Environmental Conservation develops on remand, this decision has immediate repercussions for generating facilities seeking permit applications and renewals in New York, likely involving Climate Leadership and Community Protection Act considerations, say attorneys at Hodgson Russ.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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How White Collar Attys Can Use Mythic Archetypes At Trial
A careful reading of a classic screenwriting guide shows that fairy tales and white collar trials actually have a lot in common, and defense attorneys would do well to tell a hero’s journey at trial, relying on universal character archetypes to connect with the jury, says Jack Sharman at Lightfoot Franklin.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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5th Circ. Crypto Ruling Shows Limits On OFAC Authority
The Fifth Circuit's recent decision that immutable smart contracts on the Tornado Cash crypto-transaction software protocol are not "property" subject to Office of Foreign Assets Control jurisdiction may signal that courts can construe OFAC's authority more restrictively after Loper Bright, say attorneys at Morgan Lewis.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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FTX Exec's Sentencing Shows Pros And Cons Of Cooperation
The sentencing of former FTX tech deputy Gary Wang, whose cooperation netted him a rare outcome of no prison time, offers critical takeaways for attorneys and clients navigating the burgeoning world of crypto-related prosecutions, says Andrew Meck at Whiteford.
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SEC Custody Rule Creates Crypto Compliance Conundrum
While the U.S. Securities and Exchange Commission's application of the custody rule may be a good faith attempt to enhance consumer protections for client assets, it doesn't appreciate the unique characteristics of crypto-assets, forcing advisers to choose between pursuing their clients' objectives and complying with the rule, say attorneys at Willkie.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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What Insurers Need To Know About OFAC's Expanded FAQs
The Office of Foreign Assets Control's recently expanded insurance FAQs clarify how OFAC views insurance policies in a number of specific circumstances involving sanctioned parties, and make plain that sanctions compliance is the responsibility of all participants in the insurance ecosystem, including underwriters, brokers and agents, say attorneys at Morgan Lewis.
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Rethinking Clawback Policies For 2025 Compensation Season
The start of a new year presents an opportunity for companies to reassess their executive compensation clawback policies, and while mandatory Dodd-Frank clawbacks are necessary, discretionary policies can offer companies greater flexibility to address misconduct, protect their reputations and align with shareholder priorities, say attorneys at Debevoise.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Federal Embrace Of Crypto Regs Won't Lower State Hurdles
Even if the incoming presidential administration and next Congress focus on creating clearer federal regulatory frameworks for the cryptocurrency sector, companies bringing digital asset products and services to the market will still face significant state-level barriers, say attorneys at Mayer Brown.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.