Securities

  • December 13, 2019

    USCIS Must Rethink Terminating Co.'s EB-5 Investment Status

    A Washington federal court has ordered the U.S. government to reopen nearly 160 immigrant investors' visa applications after finding that the government had failed to account for an organization's corporate restructuring when terminating its EB-5 regional center designation.

  • December 13, 2019

    Del. Vice Chancellor Flags Possible Crimes In Estate Case

    Citing Chancery Court testimony pointing to possible criminal perjury and forgery in an estate dispute, a Delaware vice chancellor on Friday took the rare step of diming out parties accused of defrauding a U.K. widow in the civil case to Delaware's attorney general.

  • December 13, 2019

    NJ Business Relocation Grants Are Tax-Exempt, 3rd Circ. Told

    A financial services company shot back at the Internal Revenue Service's Third Circuit bid to levy taxes on $56 million in New Jersey business relocation grants the company received, arguing Thursday that U.S. Supreme Court precedent and the tax code consider such incentives to be tax-exempt capital contributions.

  • December 13, 2019

    Another Investor Says Canopy Skewed Canadian Pot Demand

    Canopy Growth has been hit with another proposed securities class action, this time by investors represented by Pomerantz LLP, accusing the cannabis behemoth of misrepresenting the size of the Canadian pot market.

  • December 13, 2019

    Endo's $82.5M Deal In Suit Over Opioid Drug Gets Final OK

    An $82.5 million cash deal ending investors' claims that pharmaceutical company Endo International PLC hid safety issues with an opioid drug was finalized in Pennsylvania federal court Friday.

  • December 13, 2019

    Investors Fight Performance Sports Execs' Bid To Nix Suit

    Investors suing two executives of Performance Sports Group for allegedly bankrupting the sports gear manufacturer are fighting back against a dismissal bid, saying the bigwigs clearly misled shareholders by touting "organic" growth that was really driven by self-destructive "gun to head" sales practices and accounting gimmicks.

  • December 13, 2019

    Shareholders Sue Cardinal Health Execs Over Opioid Crisis

    A group of shareholders for Cardinal Health Inc. hit the company's current and former directors with a suit on Friday alleging that, despite years of red flags, the directors ignored their duty to stem the tide of opioids entering the illegal market, costing the company billions as a result of the opioid crisis.

  • December 13, 2019

    Oil Execs To Pay $3M To Settle SEC's Insider Trading Suit

    Two oil and gas company executives have agreed to pay a combined penalty of nearly $3 million to settle an insider trading lawsuit brought by the U.S. Securities and Exchange Commission, the agency said Thursday, for trades made on the acquisition of Irish health care company Covidien PLC by medical device giant Medtronic PLC.

  • December 13, 2019

    CBD Co. Says It Never Misled Investors About Energy Drink

    A Maryland-based CBD company has asked a federal judge to consider the full range of documents that it says show the company never misrepresented the legality of its products, as investors have alleged in a proposed class action for securities fraud.

  • December 13, 2019

    Chicago Exchanges Urge 7th Circ. To Uphold Antitrust Win

    Two Chicago exchanges urged the Seventh Circuit on Friday to uphold their pretrial win over claims that they conspired to block a competing outfit from entering the market, arguing the First Amendment protects their conduct in responding to related legislative inquiries.

  • December 13, 2019

    Shareholder Committee Nixed In RAIT Funding Ch. 11 Case

    Preferred shareholders of bankrupt real estate venture RAIT Funding LLC failed Friday in their efforts to form an official committee of equity security holders when a Delaware judge said they were unlikely to achieve any significant recoveries in the case.

  • December 13, 2019

    Fuel Card Co. FleetCor Settles Stock-Drop Suit For $50M

    FleetCor Technologies Inc. has agreed to pay $50 million to resolve a securities suit in Georgia federal court from investors who claim the fuel-card company covered up its fraudulent overcharging of customers.

  • December 13, 2019

    Investor Sues To Block Foamix-Menlo All-Stock Merger

    A Foamix Pharmaceuticals Ltd. investor has filed a lawsuit seeking to block the Israeli firm's proposed all-stock merger with a Menlo Therapeutics Inc. subsidiary, saying shareholders need more information about the financial picture driving the deal.

  • December 13, 2019

    Scammer Who Hyped Caffeinated-Snack Venture Gets 4 Years

    Manhattan U.S. District Judge Jed S. Rakoff sentenced a 73-year-old California man to four years in prison Thursday for helping his wife steal $2.3 million from investors who thought they were backing a food venture that was going to bring caffeinated snacks to market.

  • December 13, 2019

    Global Securities Watchdog Eyes Highly Leveraged Funds

    A global standard-setter for securities published new guidelines on Friday to help regulators monitor asset managers and assess whether highly leveraged funds pose a threat to financial stability.

  • December 12, 2019

    Expedia Seeks Pause On Chancery Suit To Probe $2.6B Deal

    Expedia Group moved late Wednesday to sideline a direct and derivative stockholder suit in Delaware Chancery Court challenging the company's $2.6 billion acquisition of Liberty Expedia Holdings in July, pending a six-month investigation by a newly appointed, two-member special litigation committee.

  • December 12, 2019

    Ex-Braskem Exec Granted $30M Bail In Bribery Case

    The former CEO of Brazilian oil company Braskem satisfied a reluctant magistrate judge on Thursday that cash and investments worth about $30 million, or around half his wealth, will be enough to ensure he appears in Brooklyn to face charges of conspiring to bribe officials in his home country.

  • December 12, 2019

    Labaton Will Lead Midstream Co. Investors' Take-Private Suit

    A New York federal judge on Wednesday appointed Labaton Sucharow LLP lead counsel for a proposed class of shareholders who claim they lost out when a midstream energy company was taken private after the company's stock price was allegedly pushed down on purpose.

  • December 12, 2019

    Eventbrite Seeks Out Of Investors' Suit Over IPO

    Eventbrite is urging a California federal court to toss a proposed securities class action accusing it of concealing the bumpy integration of a recent acquisition ahead of its 2018 initial public offering, arguing that investors failed to point to specific false or misleading statements.

  • December 12, 2019

    Shopin CEO Cops To $42.5M Fraudulent Crypto Offering

    The CEO of online retail platform Shopin pled guilty to securities fraud for a cryptocurrency scheme in which he lied to investors about the company and held a $42.5 million unregistered initial coin offering, the New York attorney general’s office announced Thursday.

  • December 12, 2019

    Investor Wants To Block $9.7B Novartis-Medicines Co. Deal

    Novartis AG and biopharmaceutical firm The Medicines Co. were hit with a lawsuit Thursday by an investor seeking to block their proposed $9.7 billion merger until the companies provide shareholders with a financial justification for the deal.

  • December 12, 2019

    NYSE Amends Plan To Allow Capital Raising In Direct Listings

    The New York Stock Exchange on Wednesday submitted a revised plan that would permit companies that go public through direct listings to also raise capital, coming just days after regulators rejected the exchange’s initial proposal.

  • December 12, 2019

    Rabobank Sues Ex-Trader For Exit Package Over Libor Fight

    Rabobank has demanded that a former trader repay a £119,000 ($157,000) exit package that he allegedly violated by suing the Dutch lender for not coming to his defense when U.S. prosecutors charged him with rigging a key benchmark interest rate.

  • December 11, 2019

    Del. Justices Dismayed By Lack Of Record In Forum Dispute

    The Delaware Supreme Court on Wednesday pressed both sides in a battle for control of a Delaware-chartered tech company over missing pieces on foreign law in the record of a dispute that the Chancery Court said ought to be waged in Austria.

  • December 11, 2019

    Former NY Attys Want Out Of SEC's PixarBio Merger Suit

    A pair of former New York attorneys who recently accepted disbarment have asked a Massachusetts judge to dismiss an unrelated U.S. Securities and Exchange Commission action accusing them of facilitating a sham merger involving biotech PixarBio, saying they are not subject to the Bay State’s jurisdiction.

Expert Analysis

  • Managing Financial Product Data In Antitrust Cases

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    The data considerations required in antitrust cases involving financial products are different than those for tangible products when it comes to economic analyses for class certification, liability and damages, say George Korenko and Matthew Milner at Edgeworth Economics.

  • Voting Records Support Concerns Over Proxy Firms' Influence

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    Research indicates thousands of asset managers mostly vote in line with proxy advisers' recommendations and aren't always transparent about it, validating concerns over proxy firms' outsize influence on investment management and our capital markets, says professor Paul Rose at the Ohio State University Moritz College of Law.

  • Insider Trading Bill Would Clarify, Expand Years Of Case Law

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    While still subject to Senate approval, the House's recent passage of the Insider Trading Prohibition Act is significant because it shows bipartisan approval for codifying — and potentially broadening — grounds for prosecuting insider trading established in case law, say attorneys at Baker Botts.

  • Strategies To Maintain Privilege In Crisis Response Scenarios

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    In several recent cases, courts have overridden claims that attorney-client privilege applies to communications with public relations firms in connection with litigation and to documents generated in internal investigations, but businesses can use several best practices to avoid the potential risk of waiving privilege, say attorneys at Ropes & Gray.

  • US Strengthened And Expanded Economic Sanctions In 2019

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    Stateside regulation of economic sanctions continued at a breakneck pace this year, with new rules targeting Venezuela, Cuba, Turkey and Iran, expanded guidance from the Office of Foreign Assets Control, and one of the most active enforcement years on record, say attorneys at Ropes & Gray.

  • Slack's Direct Listing Tests Limits Of Securities Act

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    Amid an evolving initial public offering market, Slack Technologies’ recent direct listing and resulting shareholder litigation highlight tension between listing requirements and potentially dated Securities Act investor protections, say attorneys at Labaton Sucharow.

  • How To Ward Off Nonclient Suits Over Lawyers' Speech

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    Because lawyers are often sued by nonclients based on public statements they have made, lawyers should be trained to avoid potentially actionable statements when speaking and writing, and they should also understand the overarching defenses against such lawsuits, says Matthew O’Hara at Freeborn & Peters.

  • State Protections For Vulnerable Investors Advance In 2019

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    This year several states passed laws aiming to improve protections for seniors and other vulnerable investors by expanding report and hold laws to cover suspicious transactions, extending hold periods for investigations, and broadening the range of people who can be contacted in investigations, say Lawrence Fenster and Andrew Mount at Bressler Amery.

  • Opinion

    Exit Of SEC's Jackson Would Create Wall Street Free-For-All

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    An early departure of Commissioner Robert Jackson from the U.S. Securities and Exchange Commission without a replacement lined up would give the Republican-leaning regulator free rein to push rulemaking that allows Wall Street to operate unrestrained, says Shawn Sebastian of the Working Families Party and Iowa Citizens for Community Improvement Action Fund.

  • What Is A 'Reasonably Useful Form' For Production Of ESI?

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    While federal rules require production of electronically stored information in its native format or a "reasonably useful form," recent court rulings offer guidance on avoiding production of ESI in its native format when it would be unduly burdensome, say Matthew Hamilton and Donna Fisher at Pepper Hamilton.

  • Key Takeaways From CFTC's Compliance Officer Guidance

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    The U.S. Commodity Futures Trading Commission's newly issued guidance on chief compliance officer reporting raises important questions about materiality thresholds and enterprise-level compliance operations, says Steptoe & Johnson's Matt Kulkin, former director of the CFTC’s Division of Swap Dealer and Intermediary Oversight.

  • 5 Tips For Maximizing Insurance Claims In A Hard Market

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    As policyholders experience increases in premiums, reduced capacity and more restrictive terms in all lines of insurance coverage, many are turning to new strategies to increase claims recovery, says Micah Skidmore of Haynes and Boone.

  • IPO Benefits And Challenges For Early-Stage Biotech Cos.

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    While initial public offerings can provide early-stage biotech companies with market exposure and access to significant capital, they warrant careful consideration because they can also drain valuable time and resources, say Faith Charles and Paige Connelly of Thompson Hine.

  • Bank Regulators' Proposals Won't Erase Madden Uncertainty

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    While recently proposed rules from the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency aim to clarify that a bank loan's interest rate doesn't change when it is sold or securitized, they're unlikely to fully resolve the ambiguity introduced by the Second Circuit’s controversial Madden decision, say attorneys at White & Case.

  • And Now A Word From The Panel: It's Nothing Personal

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    A recent ruling on personal jurisdiction from the Judicial Panel on Multidistrict Litigation makes clear that parties should not be able to utilize the MDL process as an end-run around well-established due process considerations, says Alan Rothman of Arnold & Porter.