Securities

  • July 03, 2024

    Enviva Execs Individually Escape ESG Investor Action

    A Maryland federal judge dismissed several executives and underwriters for wood pellet giant Enviva Inc. from a proposed securities class action seeking recompense for stock drops over reports they "greenwashed" claims of sustainability, saying the suit failed to show the defendants made conscious misstatements.

  • July 03, 2024

    McKinsey Can Exit Rival's Bankruptcy Conflicts RICO Suit

    A Manhattan federal judge Wednesday tossed a lawsuit brought by the founder of turnaround consultant AlixPartners accusing rival McKinsey & Co. of intentionally failing to disclose disqualifying conflicts of interest in big bankruptcy cases, saying the founder doesn't have standing to sue under the Racketeer Influenced and Corrupt Organizations Act.

  • July 03, 2024

    Guo Witnesses Point To Chinese Harassment Of Dissidents

    Defense witnesses in the $1 billion fraud trial of Miles Guo told a Manhattan federal jury Wednesday that the Chinese dissident is a prime target of "Operation Fox Hunt," an alleged program within China's government that aims to silence and repatriate critics of the regime.

  • July 03, 2024

    SEC Says Apparel Co.'s Preemptive Crypto Suit Is Unripe

    The U.S. Securities and Exchange Commission told a Texas federal judge on Wednesday a crypto industry group and apparel company can't sue the regulator over its alleged "digital-asset policy" since the parties can't point to any rule or action to challenge.

  • July 03, 2024

    NYC Pensions Defeat Challenge To Fossil Fuel Divestments

    A trio of New York City pension plans on Wednesday beat a lawsuit claiming they'd damaged public employees' retirement funds by removing $3.9 billion from investments in fossil fuels, with a New York state judge ruling the workers hadn't shown they'd been harmed by the divestments.

  • July 03, 2024

    Blackwells Loses Bid To See Disney Books On ValueAct

    The Walt Disney Co. does not have to give activist shareholder Blackwells Capital more information about an agreement that Disney made with ValueAct Capital, a Delaware Chancery Court judge ruled Wednesday, finding that Blackwells had "failed to meet its burden to prove a credible basis to suspect wrongdoing."

  • July 03, 2024

    SentinelOne Beats Investor Suit Over $27M Revision, For Now

    Cybersecurity company SentinelOne Inc. has beaten a proposed investor class action filed after its $27 million downward revision of one of its key business metrics for its 2023 fiscal year, though a California federal judge gave the shareholders a chance to revise their suit.

  • July 03, 2024

    Deal Reached In Del. Suit Targeting Gores-Backed UWM SPAC

    Architects of a $16 billion special purpose acquisition company merger that took United Wholesale Mortgage public have reportedly agreed to settle a Delaware Chancery Court stockholder suit accusing private equity billionaire Alec Gores and others of misleading investors.

  • July 03, 2024

    NBA Marketing Arm Must Face NFT Privacy Suit

    A California federal judge kept alive a proposed class action against the NBA's marketing arm over privacy concerns related to the nonfungible token marketplace known as NBA Top Shot, saying the amended version of the suit addresses previous deficiencies in pleading that NBA Properties participated in a joint venture.

  • July 03, 2024

    Feds Can't Get Atty Communications With NJ Fraudster Yet

    A New Jersey federal judge on Wednesday rejected a bid from prosecutors to get access to communications between convicted, and later pardoned, fraudster Eliyahu Weinstein and an Israeli attorney who admitted to participating in an alleged Ponzi scheme, ruling it is too early for the court to determine if the information is privileged.

  • July 03, 2024

    Morgan Lewis Benefit Plan Exits Atty's ERISA Suit

    An attorney at Morgan Lewis & Bockius LLP agreed to drop claims against her employee benefit plan in an Employee Retirement Income Security Act suit in Pennsylvania federal court alleging her long-term disability benefits were abruptly terminated after applying criteria irrelevant to her work.

  • July 03, 2024

    1st Circ. Hands Hearing Loss Biotech Win In Stock-Drop Suit

    A panel of the First Circuit declined to revive an investor class action alleging that a hearing loss treatment company and some of its executives concealed disappointing clinical trial results, saying there was no evidence the company had knowingly made false statements about the trial.

  • July 03, 2024

    Cerevel Investors Allege Insider Trades Pre-$8.7B AbbVie Deal

    A pension fund shareholder of Cerevel Therapeutics Holdings Inc. has sued the biopharmaceutical company in Delaware's Court of Chancery, seeking documents to investigate potential fiduciary duty breaches and possible insider trading shortly before the company announced its pending $8.7 billion merger with AbbVie Inc.

  • July 03, 2024

    Weil Adds Mayer Brown Corporate Partner In New York

    Weil Gotshal & Manges LLP has hired a former Mayer Brown LLP partner, who joins the firm's New York office to work on private funds issues and with investors, according to an announcement Tuesday.

  • July 03, 2024

    After Chevron Deference: What Lawyers Need To Know

    This term, the U.S. Supreme Court overturned Chevron deference, a precedent established 40 years ago that said when judges could defer to federal agencies' interpretations of law in rulemaking. Here, catch up with Law360's coverage of what is likely to happen next.

  • July 03, 2024

    Chancery Tosses Challenge To $3B AstraZeneca Viela Bio Sale

    AstraZeneca PLC and a U.K. affiliate beat late Tuesday a Delaware Court of Chancery stockholder suit accusing the company of orchestrating an underpriced, $3 billion sale of clinical stage biopharmaceutical venture Viela Bio Inc. in order to clear the way for AstraZeneca's purchase of a larger competitor.

  • July 02, 2024

    Ozy's Watson Says He's No Fraudster, Judge Accused Of Bias

    Ozy Media founder Carlos Watson on Tuesday sought to rebut claims of deceiving financial backers of the media and entertainment company, denying any involvement in a ploy to impersonate a YouTube executive in order to secure funding from Goldman Sachs, while defense counsel continued to accuse the trial judge of bias.

  • July 02, 2024

    Ex-Senior Apple Atty To Pay SEC $1.1M For Insider Trading

    Apple's former director of corporate law must pay $1.1 million to securities regulators stemming from criminal insider trading charges to which he pled guilty in 2022, a New Jersey federal judge said Tuesday, finding that his "egregious" violations warrant the penalty since "his very job" was to ensure compliance with securities laws.

  • July 02, 2024

    DraftKings Must Face Securities Suit Over NFTs

    A Massachusetts federal judge won't toss a proposed class action claiming that DraftKings Inc. sold unregistered non-fungible tokens on its marketplace, ruling that the suit plausibly alleges that the company falsely advertised that its NFTs would appreciate in value.

  • July 02, 2024

    Judge Expedites Briefing For Consensys SEC Challenge

    Crypto firm Consensys' preemptive case against the U.S. Securities and Exchange Commission is set to move forward on an expedited basis after a Texas federal judge allowed the parties to brief any potential bids from the regulator to toss the case at the same time as Consensys' motion for a judgment in its favor.

  • July 02, 2024

    Prosecutors Rest In Chinese Exile's $1B Fraud Trial

    Manhattan federal prosecutors on Tuesday concluded their case-in-chief in the $1 billion fraud trial of Chinese dissident Miles Guo, and the defense team began putting on its own witnesses to rebut the charges that the businessman convinced his followers to invest in sham companies.

  • July 02, 2024

    Even If There's A Better Reading, Follow Arbitrator, 9th Circ. Says

    The Ninth Circuit has affirmed an arbitration award requiring two venture capital funds to dissolve in a suit alleging the funds' general partners breached their fiduciary duty, saying "even if there is a better interpretation, the arbitrator's interpretation controls, 'however good, bad, or ugly.'"

  • July 02, 2024

    Harvest Capital Class Ends Chancery Merger Suit For $3.85M

    Stockholder attorneys who secured a $3.85 million pretrial class settlement for an allegedly unfair Harvest Capital Credit Corp. merger deal won an above-average 25% share of the award Tuesday, in what a Delaware vice chancellor indicated was a move to reward top-flight attention to smaller-stakes litigation.

  • July 02, 2024

    Pharma Co. Scores Exit In Investor Suit Over Primate Imports

    A Massachusetts federal judge tossed every claim in a proposed class action claiming that pharmaceutical company Charles River Laboratories and its executives concealed their involvement in the illegal importation of nonhuman primates for research, ruling that the disputed statements are not false or misleading.

  • July 02, 2024

    Levi & Korsinsky Appointed Lead In Instacart Pre-IPO Action

    Levi & Korsinsky LLP has been appointed lead counsel for the investors in a suit alleging the grocery delivery company Instacart misrepresented its growth potential in the lead-up to its initial public offering.

Expert Analysis

  • Del. Dispatch: Chancery's Evolving Approach To Caremark

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    Though Caremark claims are historically the least likely corporate claims to lead to liability, such cases have been met in recent years with increased judicial receptivity — but the Delaware Court of Chancery still expressly discourages the reflexive filing of Caremark claims following corporate mishaps, say attorneys at Fried Frank.

  • A GC's Guide To Multijurisdictional Regulatory Compliance

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    Overlapping cybersecurity regulation has created an increasingly fragmented regulatory landscape with elevated oversight for organizations across the globe, but general counsel can help develop a best-in-class approach to manage these complexities by building a compliance strategy holistically, say David Dunn and Meredith Griffanti at FTI Consulting.

  • Global Bribery Probes Are Complicating FCPA Compliance

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    The recent rise in collaboration between the U.S. Department of Justice and foreign authorities in bribery enforcement can not only affect companies' legal exposure as resolution approaches vary by country, but also the decision of when and whether to disclose Foreign Corrupt Practices Act violations to the DOJ, say Samantha Badlam and Catherine Conroy at Ropes & Gray.

  • Series

    Teaching Yoga Makes Me A Better Lawyer

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    Being a yoga instructor has helped me develop my confidence and authenticity, as well as stress management and people skills — all of which have crossed over into my career as an attorney, says Laura Gongaware at Clyde & Co.

  • Clarity Is Central Theme In FCA's Greenwashing Guidance

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    Recent Financial Conduct Authority guidance for complying with the U.K. regulator's anti-greenwashing rule sends an overarching message that sustainability claims must be clear, accurate and capable of being substantiated, say lawyers at Cadwalader.

  • A Vision For Economic Clerkships In The Legal System

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    As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.

  • Asset Manager Exemption Shifts May Prove Too Burdensome

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    The U.S. Department of Labor’s recent change to a prohibited transaction exemption used by retirement plan asset managers introduces a host of new costs, burdens and risks to investment firms, from registration requirements to new transition periods, say attorneys at Simpson Thacher.

  • Pay-To-Play Deal Shows Need For Strong Compliance Policies

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    The U.S. Securities and Exchange Commission, through its recent settlement with Wayzata, has indicated that it will continue stringent enforcement of the pay-to-play rule, so investment advisers should ensure strong compliance policies are in place to promptly address potential violations as the November elections approach, say attorneys at WilmerHale.

  • 7 Effects Of DOL Retirement Asset Manager Exemption Rule

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    The recent U.S. Department of Labor amendment to the retirement asset manager exemption delivers several key practical impacts, including the need for managers, as opposed to funds, to register with the DOL, say attorneys at Ropes & Gray.

  • Standardizing Early Case Appraisal In Securities Class Actions

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    While an initial economic assessment of securities class action litigation is far too often not undertaken, it's an important step in planning the defense strategy that can provide counsel, clients and insurers with a much clearer view of the case, and can be simplified through standardized analyses, says Assen Koev at SCA iPortal.

  • Del. Ruling Highlights M&A Deal Adviser Conflict Disclosures

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    The Delaware Supreme Court recently reversed the Court of Chancery's dismissal of challenges to Nordic Capital's acquisition of Inovalon, demonstrating the importance of full disclosure of financial adviser conflicts when a going-private merger seeks business judgment rule review, say attorneys at Debevoise.

  • E-Discovery Quarterly: Recent Rulings On Text Message Data

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    Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.

  • Dual-Track IPO-M&A Exit Strategies For Life Science Cos.

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    A dual-track process for life sciences companies offers a proven path to securing favorable deal terms for an exit, and strategic moves can include running a crossover financing round in the lead-up, say attorneys at McDermott.

  • Keeping Up With Class Actions: A New Era Of Higher Stakes

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    Corporate defendants saw unprecedented settlement numbers across all areas of class action litigation in 2022 and 2023, and this year has kept pace so far, with three settlements that stand out for the nature of the claims and for their high dollar amounts, says Gerald Maatman at Duane Morris.

  • 5 Climate Change Regulatory Issues Insurers Should Follow

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    The climate change landscape for insurers has changed dramatically recently — and not just because of the controversy over the U.S. Securities and Exchange Commission's climate-related risk disclosure rules, says Thomas Dawson at McDermott.

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