Securities

  • September 24, 2021

    Theranos Execs Put PR Over Patients, Ex-Lab Chief Testifies

    A former Theranos laboratory director testified in ex-CEO Elizabeth Holmes' criminal trial Friday that he resigned after company executives insisted on rolling out blood-testing devices riddled with technical problems that caused serious inaccuracies, saying management "believed more about PR and funding than about patient care."

  • September 24, 2021

    SEC's 1st Crowdfunding Enforcement Turns Heat On Portals

    The U.S. Securities and Exchange Commission's decision to target a crowdfunding portal in its first enforcement action involving such capital campaigns sends a strong signal that regulators expect intermediaries to thoroughly vet these fundraising efforts or face repercussions, attorneys said.

  • September 24, 2021

    Interest-Earning Crypto Crackdown Is Bigger Than Coinbase

    Coinbase's cancellation of a planned cryptocurrency lending program over threatened litigation from the U.S. Securities and Exchange Commission is just the latest and most conspicuous episode in a wider regulatory crackdown on interest-earning crypto products.

  • September 24, 2021

    China Bans All Crypto Transactions In Broad Clampdown

    China declared all cryptocurrency transactions in the country illegal Friday, marking its harshest crackdown yet on the burgeoning industry.

  • September 24, 2021

    Kentucky Joins Clampdown On Celsius' Crypto Accounts

    Kentucky has ordered digital asset company Celsius to stop offering interest-bearing cryptocurrency accounts, becoming the latest state to flag the product as a security amid wider scrutiny of cryptocurrency lending products.

  • September 24, 2021

    Novo Nordisk To Pay $100M To Settle Investor Class Action

    Novo Nordisk announced Friday that it has reached a $100 million settlement in an investor class action alleging the Danish pharmaceutical giant boasted about its finances while concealing a scheme to pay kickbacks to pharmacy benefit managers to get its insulin drugs on stores' recommended product lists.

  • September 24, 2021

    SEC Pays $36M To Tipster Who Was Also 'Culpable' In Scheme

    The U.S. Securities and Exchange Commission announced Friday that it has paid about $36 million to a whistleblower, even though the related order states that the individual delayed reporting their information for over five years and was "culpable" in the underlying scheme. 

  • September 24, 2021

    SEC Sues UK Father And Son, 2 Others In Microcap Scam

    The U.S. Securities and Exchange Commission filed two separate complaints in New York federal court on Thursday alleging that four individuals and five entities ran a fraudulent transatlantic microcap scheme that generated more than $10 million in unlawful stock sales.

  • September 24, 2021

    House Panel Urges DC Circ. To OK Full Trump Subpoena

    A congressional committee urged the D.C. Circuit to allow for full enforcement of the committee's subpoena seeking financial records from former President Donald Trump's accounting firm, saying a lower court wrongly circumscribed the request because of unsupported separation-of-powers concerns.

  • September 24, 2021

    Crypto Exchange Blacklisting To Test US Sanctions' Teeth

    The U.S. Department of the Treasury's unprecedented blacklisting of a cryptocurrency platform accused of helping cybercriminals convert funds into real-world currency will test its ability to sway ransomware actors' behavior, as officials sharpen their pitch for victims to report attacks.

  • September 24, 2021

    SEC Says $100M Auto-Loan Securitization Was Fraudulent

    The U.S. Securities and Exchange Commission has filed suit against two former executives of an Illinois-based automobile finance company for allegedly misleading investors about the subprime automobile loans that backed a $100 million offering by the company.

  • September 24, 2021

    Robinhood Taps Crypto CCO, And Other Top People Moves

    Robinhood Markets Inc. has hired an ex-counsel with Ripple and Blockchain.com as the new chief compliance officer of its cryptocurrency trading unit, while an ex-J.P. Morgan attorney landed at a New York-based private equity firm and Swedbank launched a search to replace its retiring compliance chief. 

  • September 24, 2021

    Pension Fund Unlikely To Get 2nd Shot At MiMedx Class

    A Georgia federal judge said Friday that he's likely to reject an effort by a pension fund to reopen a securities fraud class action against MiMedx Group Inc., saying there have been no new arguments raised since he dismissed the fund's claims for lack of standing.

  • September 24, 2021

    SPAC Investor Sues Over Post-Deal Slide Of Telehealth Co.

    A blank-check company stockholder whose shares began a deep nosedive immediately after its $1.35 billion reverse merger with digital health management venture UpHealth has sued sponsor Avi Katz and others in Delaware, claiming fiduciary duty breaches and unjust enrichment.

  • September 24, 2021

    Cousin Of Ticket Fraudster Avoids Prison For Role In Scam

    A Manhattan federal judge on Friday sentenced a former compliance professional to a year of home confinement for using a sports and theater ticket resale business to funnel money away from its investors and toward his now-incarcerated cousin.

  • September 24, 2021

    Saxena White Can't Lead FIFA Suit After Robbins Geller DQ

    A New York federal judge who disqualified Robbins Geller Rudman & Dowd LLP from securities litigation related to the FIFA corruption scandal on Thursday rejected Saxena White PA's request to take over the case, chastising the firm for seeking continued advice from Robbins Geller.

  • September 24, 2021

    Stroock Adds Experienced Litigation Partner In Miami

    Stroock & Stroock & Lavan LLP continued its active growth in 2021 with the addition of a Miami-based litigation partner with experience in a wide variety of disputes and arbitrations including prisoner class actions and EB-5 investment suits, the firm announced.

  • September 24, 2021

    SEC Strikes $19M Bribery Settlement With Ad Giant WPP

    The U.S. Securities and Exchange Commission and WPP PLC struck a more than $19 million deal on Friday, resolving allegations that the advertising giant violated the anti-bribery provisions of the Foreign Corrupt Practices Act as it scooped up subsidiaries across the globe and repeatedly failed to act on red flags of corruption.

  • September 23, 2021

    Schwab Clients Urge Cert. Over Trades Routed Through UBS

    Charles Schwab clients urged a California federal judge Thursday to grant them class status in their securities lawsuit accusing the financial services giant of violating its duty to get them the "best execution" on trade orders by intentionally concealing an agreement routing trade orders through UBS Securities LLC.

  • September 23, 2021

    Del. Justices Toughen Demand-Futility Test In Facebook Row

    Delaware's Supreme Court adopted a new more stringent demand-futility standard for derivative suits Thursday and upheld the dismissal of a Facebook investor's $95 million derivative suit that sought to recover litigation fees Facebook spent defending CEO Mark Zuckerberg's eventually abandoned stock reclassification plan.

  • September 23, 2021

    SEC Letter Raises Climate Reporting Bar Before Rules Drop

    The U.S. Securities and Exchange Commission has begun rolling out letters nudging public companies to bolster their disclosures related to climate-related risks in SEC filings, an apparent effort to set a higher bar for business in anticipation of the agency's long-awaited rulemaking on the matter.

  • September 23, 2021

    Liberty Media Sued Over Slow-Mo Sirius Minority Squeeze-Out

    A Sirius XM Holdings Inc. stockholder sought damages for the company and its shareholders in Delaware's Chancery Court on Thursday in connection with controlling investor Liberty Media Corp.'s alleged ongoing plan for a slow-moving, $16 billion or more squeeze-out of minority shares, at Sirius' expense.

  • September 23, 2021

    SEC Brings First Disclosure Rule Action Against Muni Adviser

    The U.S. Securities and Exchange Commission on Thursday filed what it called a first-of-its-kind case against a municipal adviser and one of its principals in California federal court, alleging they unlawfully engaged in municipal advisory activities with four charter school clients. 

  • September 23, 2021

    JPMorgan To Pay Treasury Futures Investors $16M For Spoofs

    JPMorgan Chase and a proposed class of investors have reached a $15.7 million settlement over allegations of harm from a yearslong scheme by the bank's traders to manipulate the U.S. Treasury futures market.

  • September 23, 2021

    Canadian Regulators Warn Crypto Platforms About Marketing

    Canadian securities regulators on Thursday warned digital asset platforms against "gambling-style" promotions and social media marketing tactics, saying some strategies could be violating securities laws.

Expert Analysis

  • 3 Attorney Ethics Considerations For Litigation Funding

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    The growth of the litigation finance industry has generated questions on the obligations of counsel when their clients are seeking outside capital to fund litigation, which litigators must understand when providing information to a third-party funder and discussing legal strategy with a client, says Matthew Oxman at LexShares.

  • Key Trends In Recent Cyber-Related Securities Class Actions

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    ​​​​​​​A review of trends from recent cyber-related securities class actions suggests that shareholder plaintiffs will likely continue to focus on public companies' reporting deficiencies, so companies should evaluate and update their disclosures in light of litigation and information security risks, say Cara Peterman and Sierra Shear at Alston & Bird.

  • 4 Steps For Improving Board Diversity Per New Nasdaq Rule

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    Companies should view Nasdaq's recently finalized board diversity rules as an opportunity to tap into the knowledge and resources of potential board members who may not look like or have the same life experiences as individuals who have historically served on boards, say attorneys at Shook Hardy.

  • How ABA Opinion Shifts Alternative Biz Structure Landscape

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    A recent American Bar Association opinion approving lawyers' passive investment in nonlawyer-owned firms eliminates a hurdle for law firms wishing to scale their practice through alternative business structures, but aspiring investors should follow a few best practices, say Hilary Gerzhoy and Deepika Ravi at Harris Wiltshire.

  • How Crypto Cos. Can Help Curb Pandemic Relief Fraud

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    The conversion of pandemic relief funds to cryptocurrency impedes oversight and raises questions about whether taxpayer dollars are going to bad actors, so crypto companies should partner with law enforcement to curb fraud, while gaining credibility and protecting the industry's reputation, say Special Inspector General for Pandemic Recovery Brian Miller and former SIGPR special counsel Chris Cooke.

  • Opinion

    Why Coinbase Was Destined To Lose Its Battle With The SEC

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    In the wake of Coinbase's pulling of its new lending product, despite the crypto platform's initial rejection of U.S. Securities and Exchange Commission scrutiny, cybersecurity consultant John Reed Stark explains why Coinbase's defenses were doomed and that the program was obviously a security.

  • Series

    Embracing ESG: HPE Counsel Talk Effective Board Oversight

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    Governance teams can more effectively shape board oversight of environmental, social and governance issues by ensuring organizationwide agreement on the most relevant issues, building a materiality framework that reflects stakeholder input, and monitoring the integration of ESG into operations, say Rishi Varma and Derek Windham at Hewlett Packard Enterprise.

  • Bankruptcy Courts' Equitable Discretion May Be In Danger

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    The Eighth Circuit’s recent equitable discretion decision in VeroBlue sends a warning to practitioners and the bench that courts' overuse of this bankruptcy doctrine in dismissing post-plan confirmation appeals may result in elimination of the useful tool altogether, say Brian Shaw and Mark Radtke at Cozen O'Connor.

  • Opinion

    Justice Gap Demands Look At New Legal Service Models

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    Current restrictions on how lawyers structure their businesses stand in the way of meaningful access to justice for many Americans, so states should follow the lead of Utah and Florida and test out innovative law firm business models through regulatory sandboxes, says Zachariah DeMeola at the Institute for the Advancement of the American Legal System.

  • Navigating Dealer Status After SEC Settlement With Adviser

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    Following the U.S. Securities and Exchange Commission's recent settlement with Murchinson over allegations the investment adviser caused a hedge fund to act as an unregistered dealer, hedge funds should reassess their trading practices to avoid triggering SEC and Financial Industry Regulatory Authority dealer registration requirements, say Ignacio Sandoval and Steven Stone at Morgan Lewis.

  • How ERISA Fiduciaries Can Use ESG: Part 2

    Excerpt from Practical Guidance
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    While case law suggests fiduciaries face risk in using environmental, social and governance factors as the primary criterion in retirement plan investing, it also provides a road map for using ESG in a manner compliant with Employee Retirement Income Security Act duties, says Elizabeth Goldberg at Morgan Lewis.

  • How SPAC Investors Might Rethink Material Adverse Effect

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    Buyers in special purpose acquisition company transactions involving early-stage technology companies should consider allocating key business risks in an acquisition agreement outside the construct of material adverse effect, due to the difficulty of proving a material adverse effect on a pre-revenue target company in Delaware court, say attorneys at White & Case.

  • How ERISA Fiduciaries Can Use ESG: Part 1

    Excerpt from Practical Guidance
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    The U.S. Department of Labor's back-and-forth position on the Employee Retirement Income Security Act's treatment of environmental, social and governance factors in investing has created significant confusion, but case law may provide the framework needed to use ESG in retirement plan investing, says Elizabeth Goldberg at Morgan Lewis.

  • Board Diversity Considerations In Light Of New Nasdaq Rules

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    Public companies of varying sizes may face discrete challenges meeting Nasdaq's recently finalized board diversity objectives, which could be a harbinger of further U.S. Securities and Exchange Commission rulemaking on environmental, social and governance issues, say attorneys at Paul Weiss.

  • Series

    Embracing ESG: Leidos GC Talks Social Responsibility

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    Recent criticisms of corporate commitments to stakeholders such as employees and communities — implicitly opposing environmental, social and governance initiatives — are fundamentally flawed and display a serious misunderstanding of contemporary investor priorities and dynamics, says Jerald Howe at Leidos.

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