Securities

  • June 18, 2025

    Reddit Execs Downplayed Google AI's Impact, Investors Say

    Reddit and its top brass downplayed the impact Google's artificial intelligence-generated search results had on the forum website's traffic and ad revenues, causing stocks to drop when the truth emerged about weakening revenues, according to an investor's proposed class action filed Wednesday in California federal court.

  • June 18, 2025

    £20M Buybacks Weren't Mainly For Tax Benefit, UK Court Says

    Obtaining a tax advantage wasn't the main purpose of two businessmen arranging £20 million ($26.8 million) in share buybacks, despite that being the effect, so they aren't liable for an anti-avoidance action by HM Revenue & Customs, the U.K. Upper Tribunal said in overturning a lower court's ruling.

  • June 18, 2025

    Former Holland & Knight Partner Joins Husch Blackwell

    Husch Blackwell has announced that former Holland & Knight LLP partner Bruce Toppin has joined the Kansas City, Missouri-headquartered law firm as a partner in its financial services and capital markets industry group.

  • June 18, 2025

    AGs Tell 3rd Circ. To Close 'Loophole' In Kalshi Betting Case

    A bipartisan group of attorneys general co-led by Ohio Attorney General Dave Yost, a Republican, pressed the Third Circuit to prevent trading platform Kalshi's "broad preemptive coup," urging the appellate court to allow New Jersey to regulate the company.

  • June 18, 2025

    InnovAge IPO Investors Get Initial OK Of $27M Settlement

    A Colorado federal judge has preliminarily approved a $27 million settlement between InnovAge Holding Corp., its underwriters and a class of stockholders accusing the senior-health care company of making misleading statements in an initial public offering that later caused stock prices to tank after a government audit exposed the falsehoods.

  • June 17, 2025

    Senate Passes Stablecoin Legislation With Bipartisan Support

    The Senate's proposal to regulate stablecoins passed the chamber on Tuesday with support from both parties, sending it on to the House where lawmakers are still working on their own proposal.

  • June 17, 2025

    Crypto Co. Says Meme-Coin Creating Atty Can't Rep Theft Suit

    Cryptocurrency wallet provider Phantom Technologies has asked a New York federal judge to disqualify an attorney from representing a group of plaintiffs, including himself, in a suit he filed over the alleged theft of half-a-million dollars worth of a meme coin he created in honor of his pet dachshund.

  • June 17, 2025

    Decarb Investors Reach $8.8M Deal In Hyzon Motors SPAC Suit

    An investor who challenged a $2.1 billion take-public merger for Hyzon Motors Inc. in 2021 that he says deprived them of the opportunity to make an informed choice between sticking with the deal or cashing out told a Delaware vice chancellor Monday they've settled the case for $8.8 million.

  • June 17, 2025

    Utah Man Can't Escape SEC's Microcap Stock Scheme Suit

    A Utah bookkeeper can't escape U.S. Securities and Exchange Commission allegations he served as a middleman in a penny stock pump-and-dump scheme because the SEC's complaint appropriately details its assertion that he was, at least, reckless, in connection with the matter, a federal judge has determined.

  • June 17, 2025

    Beverage Co.'s Rihanna Rum Claims Were Bunk, SEC Says

    A purported beverage company and its founder face Securities and Exchange Commission claims they defrauded would-be investors out of $3.6 million by misrepresenting how they aimed to use funds they raised and inaccurately suggesting the company was poised to collaborate with pop star Rihanna.

  • June 17, 2025

    ImmunityBio's $10.5M Investor Deal Gets Final OK

    A California federal judge has granted final approval to a $10.5 million settlement between oncology drug company ImmunityBio Inc. and investors who claim they were misled over the likelihood the U.S. Food and Drug Administration would approve the company's bladder cancer drug.

  • June 17, 2025

    Energy Co. Brass Faces Investor Suit Over LNG Project Delays

    Executives and directors of New Fortress Energy Inc. have been hit with a shareholder's derivative suit accusing them of misleading investors about the company's timeline for completing a liquefied natural gas facility off the coast of Mexico.

  • June 17, 2025

    Del. Justices Undo $200M Award In TransCanada Case

    Pointing in part to an earlier appellate ruling, Delaware's highest court on Tuesday reversed a Court of Chancery decision that ordered the former TransCanada Corp. to pay $199 million to former Columbia Pipeline Group Inc. shareholders allegedly shorted in a 2016 merger.

  • June 17, 2025

    Canadian Banks Decry BioPharma's 'Abusive' Spoofing Suit

    The brokerage arms of the Royal Bank of Canada and the Canadian Imperial Bank of Commerce are fighting a lawsuit accusing them of spoofing the stock of a biopharmaceutical company, arguing that the "abusive litigation" does not belong in a U.S. courtroom.

  • June 17, 2025

    Cannabis REIT Reckless To Claim Due Diligence, 3rd Circ. Told

    Investors in a cannabis-focused real estate investment trust urged the Third Circuit on Tuesday to revive their proposed class action alleging it violated securities laws by ignoring information about a tenant, saying it was reckless to have claimed it conducted due diligence when it knew it did not.

  • June 17, 2025

    GOP Lawmaker Praises DOL IG's Law Firm Agreements Audit

    The chair of the Republican-led U.S. House Committee on Education and the Workforce on Tuesday praised a U.S. Department of Labor watchdog for investigating the agency over allegations it shared confidential information with plaintiffs attorneys, which comes after the panel called for an investigation in November.

  • June 17, 2025

    Investors Say Exxon Trial Should Remain On Schedule

    A class of investors has told a Texas federal judge that Exxon Mobil has no basis to ask the court to stall a November trial for a suit accusing the oil giant of misleading investors, saying Exxon didn't point out any factors that would merit a delay.

  • June 17, 2025

    AT&T Beats Investor Suit Over Lead-Lined Cables, For Now

    A Texas federal judge has tossed a securities class action against AT&T and several of its executives alleging they misled investors about removing lead-covered copper cables from the company's network, finding that the plaintiffs have failed to meet the heightened pleading bar for securities fraud.

  • June 17, 2025

    Commodities Scheme Operator Gets 65 Years, Owes $75M

    The operator of a commodities scheme who evaded taxes and stole precious metals from his clients was sentenced to 65 years in prison and ordered to pay more than $75 million in restitution Tuesday by a Delaware federal court that also denied his request for a new trial.

  • June 17, 2025

    FINRA Fines Ex-Canaccord Compliance Head Over Monitoring

    The Financial Industry Regulatory Authority has suspended Canaccord Genuity LLC's former chief compliance officer and the former head of its trading compliance group, and fined them a combined $15,000 for alleged surveillance lapses.

  • June 17, 2025

    Gemini Says CFTC Enforcement Went 'Trophy-Hunting' In Suit

    The crypto exchange Gemini on Tuesday slammed the U.S. Commodity Futures Trading Commission's Enforcement Division and the attorneys who pursued a now-settled case against the firm, calling the division "out of control" and accusing its attorneys of engaging in "trophy-hunting lawfare."

  • June 17, 2025

    Alston & Bird Hires Former EDNY Deputy Section Chief

    Alston & Bird LLP announced Tuesday that it has welcomed the former deputy chief of the Business and Securities Fraud Section in the U.S. Attorney's Office for the Eastern District of New York.

  • June 17, 2025

    Florida Judge Awards $487K In Real Estate Fraud Case

    A Florida federal judge awarded more than $487,000 to two investors who alleged that they were tricked into providing funds for multiple South Florida real estate projects in a multimillion-dollar real estate fraud scheme.

  • June 16, 2025

    DOJ Won't Charge PE Firm That Acquired Sanctions Violator

    The U.S. Department of Justice has decided not to go after private equity firm White Deer Management LLC after it discovered and voluntarily disclosed that Unicat's former leadership had violated economic sanctions and export laws, according to an announcement made Monday.

  • June 16, 2025

    Krispy Kreme Brass Face Investor Suit Over McDonald's Deal

    Officers and directors of doughnut chain Krispy Kreme Inc. are facing shareholder derivative claims that they concealed that a partnership with burger chain McDonald's was yielding disappointing results, hurting investors when the company finally conceded that it was facing financial uncertainty in connection with the deal.

Expert Analysis

  • Buyer Beware Of Restrictive Covenants In Delaware

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    Based on recent Delaware Chancery Court opinions rejecting restricted covenants contained in agreements in the sale-of-business context, businesses need to craft narrowly tailored restrictions that have legitimate interests, say attorneys at Saul Ewing.

  • Series

    Brazilian Jiujitsu Makes Me A Better Lawyer

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    Competing in Brazilian jiujitsu – often against opponents who are much larger and younger than me – has allowed me to develop a handful of useful skills that foster the resilience and adaptability necessary for a successful legal career, says Tina Dorr of Barnes & Thornburg.

  • Challenges For Fiduciaries Adding Crypto To 401(k) Plans

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    As cryptocurrencies gain popularity and their restrictions loosen, investors may become interested in adding crypto options to their retirement plans, but fiduciaries should consider how to balance the increased demand and their obligations under the Employee Retirement Income Security Act, say attorneys at Jenner & Block.

  • Opportunities And Challenges For The Texas Stock Exchange

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    While the new Texas Stock Exchange could be an interesting alternative to the NYSE and the Nasdaq due to the state’s robust economy and the TXSE’s high-profile leadership and publicity opportunities for listings, its success as a national securities exchange may hinge on resolving questions about its regulatory and cost advantages, say attorneys at Norton Rose.

  • Energy Order Brings Risks For Lenders And Borrowers Alike

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    A recent executive order directing the attorney general to submit a report next month with recommendations for halting enforcement of state laws the administration says are hampering energy resources presents risks for lenders and borrowers using state-generated carbon credits, but proactive steps now can help insulate against adverse consequences, say attorneys at Faegre Drinker.

  • What's At Stake As Trump Admin Targets Carbon Markets

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    Trading in greenhouse gas emissions and reductions has long been touted as a way to leverage market forces to tackle climate change cost-effectively, and that theory may be put to the test amid momentous progress and fresh challenges, particularly as the Trump administration takes aim at climate initiatives, say attorneys at DLA Piper.

  • Series

    Power To The Paralegals: An Untapped Source For Biz Roles

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    Law firms looking to recruit legal business talent should consider turning to paralegals, who practice several key skills every day that prepare them to thrive in marketing and client development roles, says Vanessa Torres at Lowenstein Sandler.

  • The Legal Risks Of US Restrictions On Investments In China

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    The second Trump administration has continued to embrace a more restrictive economic policy toward China, including an ongoing review of further restrictions on the flow of U.S. capital to China, so early planning and enhanced diligence can reduce exposure to the challenges resulting from further restrictions, say attorneys at Cleary.

  • Using Federal Forum Provisions To Nix State Securities Cases

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    A California appeals court's recent decision in Bullock v. Rivian clarifies that underwriters may enforce federal forum provisions to escape state court Securities Act claims, marking progress in restoring such lawsuits to federal court and reducing the litigation costs arising from duplicative state court litigation, say attorneys at Paul Weiss.

  • Series

    Playing Poker Makes Me A Better Lawyer

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    Poker is a master class in psychology, risk management and strategic thinking, and I’m a better attorney because it has taught me to read my opponents, adapt when I’m dealt the unexpected and stay patient until I'm ready to reveal my hand, says Casey Kingsley at McCreadyLaw.

  • Does R-Squared Have A Role In Event Study Analysis?

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    With 2024 marking the second consecutive year to experience an increase in securities class action filings, determining the reliability of event study models is of utmost importance, but it's time to reconsider the traditional method of doing so, say analysts at StoneTurn Group.

  • Opinion

    Why It's Time To Retire The Efficient Market Hypothesis

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    As agentic artificial intelligence systems increasingly affect financial markets, the efficient market hypothesis no longer offers a viable foundation for legal and regulatory engagement, and a new theoretical foundation is needed, say Zachary Brenner, a student at California Western School of Law, and attorney Gary Brenner.

  • Avoiding The Risk Of Continued AI-Washing Enforcement

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    A recent action brought by the U.S. Securities and Exchange Commission and Department of Justice, alleging a software developer defrauded investors by lying about his app’s artificial intelligence capabilities, suggests this administration will continue to target AI washing, so companies should adopt practices to mitigate enforcement risk, say attorneys at Debevoise.

  • Cos. Should Review Pay Strategies In Light Of 2025 Tariffs

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    Companies should think about what they can or should do to ensure the ongoing effectiveness of their compensation plans in light of rising material costs, reduced profit margins, market volatility and other impacts of the Trump administration’s evolving tariff regime, say attorneys at Cooley.

  • Key Aspects Of FDIC's Resolution Planning FAQ

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    The Federal Deposit Insurance Corp.'s recent FAQ on changes to its resolution plan rule ease burdensome requirements for some large institutions and exempt others from discussion of franchise components, making it easier for banks to finalize submissions before the July 1 deadline, say attorneys at Moore & Van Allen.

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