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Securities
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July 16, 2025
Ex-FirstEnergy Execs Can't Sway Judge With Jury-Taint Fears
An Ohio federal judge has rejected objections that former FirstEnergy Corp. executives facing criminal charges raised over recommended changes to a protective order in a securities class action against them and the company.
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July 15, 2025
MaxLinear, Silicon Motion Beat Suit Over Failed $3.8B Merger
A California federal judge on Tuesday threw out a proposed class action that accused semiconductor company MaxLinear and chipmaker Silicon Motion of misleading investors about a $3.8 billion merger that fell through, saying Silicon Motion shareholders couldn't sue MaxLinear or prove that Silicon Motion knew about an alleged breach of the merger agreement.
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July 15, 2025
Biohaven's Drug Prospects Were Overhyped, Suit Says
Biopharmaceutical company Biohaven Ltd. was hit with an investor suit claiming it overstated the odds that two of its product candidates would receive regulatory approval, hurting investors as it announced disappointing results.
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July 15, 2025
Tornado Founder Wasn't In On Crypto Laundering, Jury Told
Counsel for a Seattle-area software developer and co-founder of Tornado Cash told a New York federal jury on Tuesday that he had nothing to do with North Korean cybercriminals and others who used the cryptocurrency mixer to launder more than $1 billion in ill-gotten gains.
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July 15, 2025
Interactive Brokers To Pay OFAC $11.8M For Sanctions Lapses
Interactive Brokers LLC has agreed to pay more than $11.8 million to settle allegations from the U.S. Department of the Treasury's trade sanctions enforcement arm that the electronic broker-dealer violated various sanctions programs over a period of more than seven years.
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July 15, 2025
Pool Supply Co. Escapes Investor Suit Over COVID-Era Sales
Arizona-based pool supply company Leslie's Inc. won dismissal, for now, of an investor class action led by North Carolina's state treasurer that alleged the company botched disclosures about waning demand during the COVID-19 pandemic, with the court finding the allegations failed to state a claim for federal securities law violations.
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July 15, 2025
PCAOB Chief Erica Williams Has Resigned, SEC Chair Says
Erica Y. Williams has resigned as chair and a board member of the Public Company Accounting Oversight Board after more than three years in the position, according to a statement issued Tuesday by U.S. Securities and Exchange Commission Chairman Paul S. Atkins.
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July 15, 2025
FDIC Says Farella Braun Can't Get Fees In First Republic Suit
The Federal Deposit Insurance Corp. has asked a California federal court to toss a more than $50,000 legal fee claim tied to First Republic Bank's collapse, arguing that Farella Braun, the law firm behind the claim, failed to submit a valid written agreement or itemized invoices and its claim is legally insufficient.
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July 15, 2025
Gould Sworn In As Comptroller Of Currency
Former Jones Day partner Jonathan Gould on Tuesday was sworn in as the next leader of the Office of the Comptroller of the Currency, marking his return to the agency where he spent more than two years as chief counsel.
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July 15, 2025
SEC Drops Bribery Suit Against Ex-Cognizant Execs
The U.S. Securities and Exchange Commission told a New Jersey federal court Tuesday that it will drop its lawsuit against the former president and chief legal officer of Cognizant Technology Solutions Corp. over an alleged bribery scheme, after the U.S. Department of Justice dropped a related criminal case.
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July 15, 2025
3rd Circ. Backs FAA's Civil Penalty Actions Post-Jarkesy
The Third Circuit on Tuesday backed the Federal Aviation Administration's adjudicatory authority to impose civil penalties for air safety rules violations, saying in a precedential ruling that the U.S. Supreme Court's Jarkesy decision doesn't entitle a paint supplier to a jury trial in a case stemming from a leaky paint can on a FedEx plane.
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July 15, 2025
Deep Sea Mining Co. Gets Suit Over 'Green' Investments Axed
A New York federal judge has dismissed in its entirety a suit accusing The Metals Co. Inc. of misleading investors about the magnitude of its "green" investments and its private equity backing before going public, finding that the suit's challenged statements were not false when made.
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July 15, 2025
BofA Says $657M Payment To FDIC Should End Premiums Suit
Bank of America and the FDIC are at odds over how to calculate the prejudgment interest rate on a $540 million payment the bank was ordered to pay in a case over underpaid deposit insurance assessments, with the bank arguing its recent payment of over $657 million satisfies its obligation.
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July 15, 2025
Betting Site Polymarket Says Feds Have Dropped Probe
Federal prosecutors have ended an investigation into the betting site Polymarket without taking any action against the platform, the company's CEO said in a social media post Tuesday.
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July 15, 2025
Texas Gambler Took $9M From Would-Be Investors, SEC Says
A Texas man faces U.S. Securities and Exchange Commission allegations he defrauded investors out of $9 million, holding himself out as an experienced trader seeking to help the Hispanic community when, in fact, he was spending his victims' money on himself, on Ponzi payments and to help his ex-girlfriend's family purchase real estate.
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July 15, 2025
Weedmaps, SPAC Officers Want Out Of Investor SEC Fine Suit
Cannabis tech company Weedmaps Technology Inc. and leaders of a blank check company that it merged with have asked to be released from an investor's proposed class action alleging damages following the U.S. Securities and Exchange Commission's announcement that it fined Weedmaps $1.5 million for allegedly making misleading statements about its monthly active users.
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July 15, 2025
LA Deputies Admit Using Positions To Aid Crypto 'Godfather'
Two Los Angeles County sheriff's deputies admitted using their official positions to harass enemies of a cryptocurrency founder who called himself "The Godfather" and failed to report $36 million in income from selling hacked Meta business accounts, the U.S. Department of Justice said.
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July 14, 2025
Regulators Outline Crypto 'Safekeeping' Guidelines For Banks
Federal regulators said Monday that banks are free to offer cryptocurrency "safekeeping" services but should be mindful of the risks involved, stressing the need for strong cybersecurity and clear customer agreements, among other considerations.
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July 14, 2025
NBA Deal Investor Suit Doesn't Hold Up, Warner Bros. Says
Warner Bros. Discovery has asked a New York federal judge to throw out investors' proposed class action over its failed negotiations for a new media rights agreement with the NBA, arguing that the investors haven't pointed to any evidence showing that Warner Bros. intended to mislead them about the deal.
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July 14, 2025
Nev. Says Crypto.com Twisted Fed Law For Sports Betting Biz
The Nevada Gaming Control Board urged a federal court to stay out of its way as it takes action to block Crypto.com from offering sports events contracts, arguing that its moves aren't preempted by federal regulation of the commodity futures market.
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July 14, 2025
Court Says Insider Trading Rules Unscathed By Loper Bright
A U.S. Supreme Court ruling that curtailed deference to agency interpretations of law did not undermine the U.S. Securities and Exchange Commission's rules against insider trading, a Pennsylvania federal court ruled Friday.
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July 14, 2025
Nvidia Investors Push For Cert. After High Court Pass
Nvidia Corp. investors are asking a California judge to grant them class status on claims that the chipmaker and its CEO undersold the company's reliance on the volatile crypto market, putting the case back in the spotlight six months after the U.S. Supreme Court pulled the plug on issuing a ruling.
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July 14, 2025
LA Investors Sue Atty After $40M Cannabis Deal Falls Apart
A group of Los Angeles investors are looking to shift liability to their former business partner and legal counsel as they face a $40 million lawsuit filed by a defunct cannabis manufacturer that has accused them of tanking its business and invalidating its cannabis license.
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July 14, 2025
2nd Circ. Affirms Biotech Founder's Win In Trading Suit
The Second Circuit on Monday affirmed an early win for the founder of biotech Y-mAbs Therapeutics Inc. in a suit alleging he realized more than $2.5 million in short-swing profits after he exchanged his shares for those of another company, agreeing with the lower court that the move didn't constitute a "purchase."
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July 14, 2025
Masimo Corp. Settles Investor Suit Over Revenue Disclosures
Masimo Corp. has settled proposed class claims alleging the health technology firm misrepresented the company's finances and plans to investors, according to a filing in Southern California federal court.
Expert Analysis
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How Latin American Finance Markets May Shift Under Trump
Changes in the federal government are bringing profound implications for Latin American financial institutions and cross-border financing, including increased competition from U.S. banks, volatility in equity markets and stable green investor demand despite deregulation in the U.S., says David Contreiras Tyler at Womble Bond.
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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.