Securities

  • May 09, 2024

    Chancery Tosses Qualcomm Investor's Diversity Suit

    A shareholder who sued Qualcomm Inc. for allegedly misleading the public and investors about its efforts to diversify its board has failed to show that the company didn't consider diverse candidates, Delaware's Court of Chancery said Thursday, dismissing the shareholder's case.

  • May 09, 2024

    Designer, Hotelier Sued For Allegedly Duping EB-5 Investors

    Chinese investors in a luxury California hotel for green cards lodged a potential class action Thursday against a prominent interior designer and her hotelier husband for allegedly duping backers into believing Marriott would manage the hotel.

  • May 09, 2024

    Trump SPAC Investor Convicted Of Insider Trading

    A Manhattan federal jury on Thursday convicted a Florida investment pro of securities fraud and conspiracy for allegedly exploiting confidential plans to take Donald Trump's media company Truth Social public in a $23 million insider trading case.

  • May 09, 2024

    Ex-Pharma Exec Asks 1st Circ. To DQ Judge In Contempt Case

    U.S. District Judge Mark Wolf cannot be impartial and must be disqualified from presiding over a criminal contempt trial against a former pharmaceutical executive accused of using an alias to flout a civil judgment, the defendant told the First Circuit in a Wednesday filing.

  • May 08, 2024

    Quinn Emanuel Atty Says Asset Freeze Hurt Outcome Defense

    The U.S. government's overreach in restraining millions more than it could reasonably trace back to a $1 billion fraud by Outcome Health prevented the company's former CEO from hiring Quinn Emanuel Urquhart & Sullivan LLP attorneys to defend the charges like he originally wanted, an Illinois federal judge heard Wednesday.

  • May 08, 2024

    Opioid Maker Beats Investor Suit Over FDA Warning For Good

    A California federal judge has permanently dismissed a lawsuit from investors of acute pain drug company AcelRx Pharmaceuticals Inc. accusing it of engaging in misbranding violations that put it at greater risk for regulatory scrutiny.

  • May 08, 2024

    Hawaii Utility Seeks Exit From Shareholder Suit Over Maui Fire

    Hawaiian Electric Industries Inc. has asked a California federal judge to toss an investor suit over a downturn in the company's stock price after a deadly fire broke out on Maui, saying it did not mislead investors about efforts to mitigate fire risk or completely outrule the risk of fire.

  • May 08, 2024

    Tesla Slams Class Bid For Musk Shares Lockdown In Del.

    Attorneys for Elon Musk and Tesla Inc. and its board have blasted class attorney motions to sequester billions worth of the automotive company's shares as an improper attempt to shield a nonfinal court ruling on Musk's 10-year compensation plan and as potential interference in a Tesla bid to reincorporate in Texas.

  • May 08, 2024

    Credit Suisse Urges Mich. Panel To Reverse Biz Loss Denial

    A Credit Suisse attorney pressed the Michigan Court of Appeals on Wednesday to clarify how the state's tax laws account for losses from real estate mortgage investment conduits, saying a lower court incorrectly denied its attempt to carry forward $21.3 million in losses.

  • May 08, 2024

    ESOP Trustee Can't Ax Suit Claiming $60M Inflated Stock Deal

    A Michigan federal judge left most of a suit intact Wednesday alleging the trustee of a steel company's employee stock ownership plan allowed it to buy $60 million in company stock at an inflated price, ruling that the worker behind the suit backed his claims with enough detail.

  • May 08, 2024

    Digitex Founder Pleads Guilty To Bank Secrecy Act Violation

    The founder of Digitex Futures Exchange has pled guilty to violating the Bank Secrecy Act by refusing to implement policies designed to prevent money laundering on his cryptocurrency futures platform.

  • May 08, 2024

    Sens. Call For Revamp Of SEC's Nixed Stock Buyback Rules

    The U.S. Securities and Exchange Commission should "promptly" reissue disclosure rules vacated by the Fifth Circuit last year so that companies are required to publicly disclose more information on their share repurchase plans, a bipartisan pair of U.S. senators told the agency's leader on Monday.

  • May 08, 2024

    FTX Says Full Recovery Coming Based On 2022 Crypto Price

    Bankrupt cryptocurrency exchange FTX Trading Ltd. has claimed its proposed Chapter 11 plan would be able to pay creditors in full with a $13 billion distribution that exceeds the estimated allowable $11.2 billion in claims, but the payout is based on the value of cryptocurrency in November 2022, when the exchange filed for bankruptcy protection. 

  • May 08, 2024

    Bill To Undo SEC Crypto Accounting Bulletin Passes House

    Lawmakers in the U.S. House of Representatives on Wednesday voted to overturn the U.S. Securities and Exchange Commission's controversial cryptocurrency accounting guidance despite protests from Democrats to take a more targeted approach to amend the directive and a White House pledge to veto the bill.

  • May 08, 2024

    Truth Social Backer's Insider Trading Alibi In Jury's Hands

    A Manhattan federal jury weighed charges Wednesday against a Florida investor accused of fueling a $23 million insider trading scheme that exploited confidential plans to take Truth Social public, after the defense argued it was someone else who tipped speculators.

  • May 08, 2024

    SEC Doubles Down On $2B Ripple Labs Sanction Bid

    The U.S. Securities and Exchange Commission is standing by its call for crypto platform Ripple Labs to pay $2 billion as punishment for selling unregistered securities, telling a New York federal judge that a lower penalty would send the wrong message to the industry at large.

  • May 08, 2024

    AMC Objector Says Chancery Settlement Lacked Due Process

    An AMC Entertainment Inc. stockholder who opposed a class settlement that the company reached with other shareholders to end Chancery Court litigation over a controversial share conversion told Delaware's Supreme Court Wednesday that the deal should be unwound for lack of due process.

  • May 08, 2024

    SEC Says Startup Founder Siphoned $10.8M In Investor Funds

    The U.S. Securities and Exchange Commission has filed suit against the CEO of a chemical coatings startup, alleging that over roughly four years, the executive "siphoned off" $10.8 million, or roughly a third of the $32.5 million his company raised from investors and spent it on extravagances including a private jet.

  • May 08, 2024

    Labaton, Boston Pension Win Bid to Lead NYCB Investor Suit

    A New York magistrate judge appointed Boston's municipal pension plan and its attorneys from Labaton Keller Sucharow LLP to lead a proposed securities class action against New York Community Bancorp Inc. after the pension plan successfully showed that the plaintiff with the greatest losses bought their shares too late.

  • May 08, 2024

    Prison Officer Gets 2 Years For Bribes Linked To Rajaratnam

    A former federal corrections officer in Massachusetts who accepted bribes and a loan from a billionaire inmate, reportedly the convicted insider trader Raj Rajaratnam, was sentenced Wednesday to two years in prison for engaging in what a Boston federal judge called "corruption of the most dangerous sort."  

  • May 08, 2024

    Robins Kaplan File Flub Bad Look For Both Sides, Panel Says

    A Manhattan appeals panel expressed concern Wednesday that Robins Kaplan LLP had poked through an opposing party's Dropbox database that was accidentally shared in investor litigation, while also criticizing the other side for failing to catch the error.

  • May 08, 2024

    SEC Fines Real Estate Developer Over Unregistered Offering

    A real estate development company and its owner will pay $250,000 to settle the U.S. Securities and Exchange Commission's claims they sold investors $1.4 million in promissory notes in an unregistered offering.

  • May 08, 2024

    Scooter Co.'s Mismanagement Cost ESOP Millions, Suit Says

    A scooter company violated federal benefits law by putting too much of workers' retirement funds into investments that produced meager returns and causing its employee stock ownership plan to lose out on about $3.3 million since 2018, a proposed class action filed in Pennsylvania federal court said.

  • May 08, 2024

    Shockwave Medical Investor Challenges $13B Deal With J&J

    A shareholder of cardiovascular treatment company Shockwave Medical Inc. is attempting to halt the company's "unfair" $13 billion proposed transaction with Johnson & Johnson by filing a securities suit, saying the transaction will only benefit company insiders and damage public shareholders.

  • May 08, 2024

    Icahn, Xerox Investors Settle Nixed HP Merger Suit For $2.2M

    Carl Icahn will pay $2.2 million to Xerox under an agreement reached with a pair of the company's stockholders, who accused the billionaire investor in a consolidated shareholder derivative lawsuit of trading on non-public information regarding Xerox's now-doomed bid to acquire HP Inc. for $33 billion.

Expert Analysis

  • Series

    Serving As A Sheriff's Deputy Made Me A Better Lawyer

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    Skills developed during my work as a reserve deputy — where there was a need to always be prepared, decisive and articulate — transferred to my practice as an intellectual property litigator, and my experience taught me that clients often appreciate and relate to the desire to participate in extracurricular activities, says Michael Friedland at Friedland Cianfrani.

  • Fears About The End Of Chevron Deference Are Overblown

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    While some are concerned about repercussions if the U.S. Supreme Court brings an end to Chevron deference in the Loper and Relentless cases this term, agencies and attorneys would survive just fine under the doctrines that have already begun to replace it, say Daniel Wolff and Henry Leung at Crowell & Moring.

  • Opinion

    The SEC Is Engaging In Regulation By Destruction

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    The U.S. Securities and Exchange Commission's recent use of regulation by enforcement against digital assets indicates it's more interested in causing harm to crypto companies than providing guidance to the markets or protecting investors, says J.W. Verret at George Mason University.

  • Series

    NJ Banking Brief: All The Notable Legal Updates In Q1

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    Early 2024 developments in New Jersey financial regulations include new bills that propose regulating some cryptocurrency as securities and protecting banks that serve the cannabis industry, as well as the signing of a data privacy law that could change banks’ responsibility to vet vendors and borrowers, say attorneys at Chiesa Shahinian.

  • Former Minn. Chief Justice Instructs On Writing Better Briefs

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    Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.

  • ShapeShift Fine Epitomizes SEC's Crypto Policy, And Its Flaws

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    A recent U.S. Securities and Exchange Commission order imposing a fine on former cryptocurrency exchange ShapeShift for failing to register as a securities dealer showcases the SEC's regulation-by-enforcement approach, but the dissent by two commissioners raises valid concerns that the agency's embrace of ambiguity over clarity risks hampering the growth of the crypto economy, says Keith Blackman at Bracewell.

  • 2nd Circ. Adviser Liability Ruling May Shape SEC Enforcement

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    The Second Circuit’s recent decision in U.S. Securities and Exchange Commission v. Rashid, applying basic negligence principles to reverse a finding of investment adviser liability, provides a road map for future fraud enforcement proceedings, says Elisha Kobre at Bradley Arant.

  • Stay Interviews Are Key To Retaining Legal Talent

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    Even as the economy shifts and layoffs continue, law firms still want to retain their top attorneys, and so-called stay interviews — informal conversations with employees to identify potential issues before they lead to turnover — can be a crucial tool for improving retention and morale, say Tina Cohen Nicol and Kate Reder Sheikh at Major Lindsey.

  • New Concerns, Same Tune At This Year's SIFMA Conference

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    At this year's Securities Industry and Financial Markets Association conference on legal developments affecting the financial services industry, government regulators’ emphasis on whistleblowing and AI washing represented a new refrain in an increasingly familiar chorus calling for prompt and thorough corporate cooperation, say attorneys at Fried Frank.

  • And Now A Word From The Panel: Benefits Of MDL Transfers

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    A recent order from the Judicial Panel on Multidistrict Litigation highlights a critical part of the panel's work — moving cases into an existing MDL — and serves as a reminder that common arguments against such transfers don't outweigh the benefits of coordinating discovery and utilizing lead counsel, says Alan Rothman at Sidley Austin.

  • 8 Tips As GCs Prep For New SEC Climate Disclosure Rules

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    The U.S. Securities and Exchange Commission's recently adopted rules governing climate-related disclosures represent a major change to the existing public company disclosure regime, so in-house counsel should begin to evaluate existing systems and resources related to emissions data, and identify the changes that will need to be made, say attorneys at Bracewell.

  • An Overview Of Key Financing Documents In Venture Capital

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    The Delaware Chancery Court’s recent Moelis decision highlights the importance of structuring corporate governance around investor demand, meaning early-stage companies seeking venture funding through sales of preferred stock should understand the legal documents needed to do so successfully, say Daniel Bell-Garcia and Tristan Kaisharis at Winstead.

  • Reducing Risk While DOJ Plans New Whistleblower Rewards

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    In light of the Department of Justice's newly announced plan to create a comprehensive whistleblower reward program to fill the gaps in the current patchwork of federal incentives, companies should mitigate their risk of external claims now by implementing internal systems where employees can confidently and anonymously report concerns, say Caleb Hayes-Deats and Walter Hawes at MoloLamken.

  • Series

    Spray Painting Makes Me A Better Lawyer

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    My experiences as an abstract spray paint artist have made me a better litigator, demonstrating — in more ways than one — how fluidity and flexibility are necessary parts of a successful legal practice, says Erick Sandlin at Bracewell.

  • How Activision Ruling Favors M&A Formalities Over Practice

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    The Delaware Chancery Court’s recent nod to a proposed class action, alleging shareholder notice violations in Activision Blizzard’s sale to Microsoft, puts practitioners on notice that customary merger and acquisition market practices do not offer protection from potential liability, say John Stigi and Eugene Choi at Sheppard Mullin.

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