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Securities

  • June 19, 2019

    Facebook's Libra Prepared To Counter Privacy Concerns

    Scrutiny of Facebook’s new cryptocurrency Libra is expected to be intense, but experts say early regulatory inspection, a carefully designed governance system and a slate of established partners put the digital token on solid footing.

  • June 19, 2019

    Investors' OneJet Suit Is Grounded In Pa. Fed. Court

    A Pennsylvania federal judge rejected investors' attempts Wednesday to remand their securities case against OneJet Airlines executives to Pennsylvania state court, agreeing with the defendant executives the case shares enough issues with OneJet's federal bankruptcy proceedings that they should be handled together by the same court.

  • June 19, 2019

    Keryx Fights Investor's Bid To Lead Kidney Drug Stock Suit

    A Keryx investor seeking to lead a shareholder class action over a 2016 stock drop shouldn’t head up the suit because his shares were bought through a now-defunct trust and the vital information allegedly hid by the company was actually disclosed, a Massachusetts federal judge heard Wednesday.

  • June 19, 2019

    Thailand Hotelier Got Fraud Funds Via Coinbase, Feds Say

    A Swedish hotel owner based in Thailand has been arrested on charges of running a multimillion-dollar online investment scam and laundering funds through Liberty Reserve, a defunct payment platform whose founder is in prison, and popular cryptocurrency exchange Coinbase, prosecutors announced on Wednesday.

  • June 19, 2019

    Regulatory Inaction Will Drive Crypto Cos. Abroad, Rep. Says

    Facebook’s decision to base its planned cryptocurrency in Switzerland rather than the U.S. could be the start of a bigger trend if Congress keeps stalling on legislation, an Ohio representative who co-authored a bill that seeks to exclude digital tokens from the statutory definition of a security said during a House hearing Wednesday.

  • June 19, 2019

    Mass. Regulator Ready To Rumble On SEC Broker Standards

    Massachusetts securities regulator William F. Galvin is confident that federal law leaves room for states to pass their own fiduciary duty rule for broker-dealers and is vigorously pursuing one of the nation’s first, telling Law360 that investors deserve better than the standards recently set by the U.S. Securities and Exchange Commission.

  • June 19, 2019

    AbbVie, Investors Reach $17M Deal Over Failed Inversion

    Drugmaker AbbVie Inc. has reached a $16.75 million agreement to settle a claim that it misled investors about the risks of its failed $54 billion merger with Irish pharmaceutical company Shire PLC, according to documents filed Wednesday in Illinois federal court.

  • June 19, 2019

    Conspiracy To Bribe Haitian Officials Was Explicit, Jury Hears

    Recorded conversations involving two men who were pursuing an $84 million port project in Haiti offer clear evidence that they intended to bribe government officials in exchange for approvals, a prosecutor told jurors in Massachusetts federal court Wednesday as a seven-day trial concluded.

  • June 19, 2019

    US Trustee Names Investors Suing Elk To Ch. 11 Committee

    The U.S. Trustee appointed three investor entities that are suing Elk Petroleum Inc. in Chancery Court to the Committee of Preferred Equity Security Holders in Elk’s bankruptcy case in Delaware on Wednesday, giving them a voice in the company’s reorganization.

  • June 19, 2019

    Mass. Securities Regulator Examining Cannabis Investments

    Massachusetts' state securities enforcement division will be taking a closer look at investment offerings involving the state's cannabis businesses, it said Wednesday, after charging a man with selling $1.3 million in unregistered cannabis securities.

  • June 19, 2019

    US Steel Says Investors Can't 'Skate By' With Class Cert. Bid

    U.S. Steel challenged a class certification bid in Pennsylvania federal court Tuesday, arguing the investors who accuse the company of misrepresenting maintenance plans for its plants and equipment are improperly trying to “skate by on generalities” in their proposed securities class action.

  • June 19, 2019

    Bancor To Block US Users Amid Regulatory Uncertainty

    Decentralized exchange platform Bancor is planning to block U.S. residents from trading digital tokens using its web application due to "increased regulatory uncertainty" in the cryptocurrency space.

  • June 19, 2019

    Feds Say HSBC Holding Out On Key Docs In FIRREA Case

    A Brooklyn federal prosecutor asked a judge on Tuesday to compel HSBC to comply with a year-old subpoena in a civil fraud case against a former Deutsche Bank trader over the financial crisis, saying the government needs the files to prove its case under the Financial Institutions Reform, Recovery, and Enforcement Act.

  • June 19, 2019

    Nikko Can't Escape Suit Over $50M Loss To Stock Plan

    Nikko Asset Management Co. Ltd. and its CEO must face a lawsuit accusing them of depriving workers of $50 million by manipulating an employee stock option plan, with a New York federal court refusing Wednesday to reconsider its decision to let the suit continue.

  • June 19, 2019

    Clovis Directors Plead Ignorance On Rules In Drug Trial Suit

    Attorneys for the directors of biomedical company Clovis Oncology Inc. told a Delaware Chancery Court judge Wednesday that company management didn't inform the board that cancer drug trial results were being reported to federal regulators with non-conforming information.

  • June 19, 2019

    Credit Suisse Hit With Disclosure Fine In Hong Kong

    Hong Kong's securities watchdog said Wednesday it has fined Credit Suisse for failing to comply with disclosure requirements in reports released by the investment bank focusing on Hong Kong-listed securities.

  • June 19, 2019

    SEC Fights Ex-Xerox CFO's Bid To Lift 16-Year-Old Gag Order

    The U.S. Securities and Exchange Commission challenged a bid by a former Xerox executive to lift a gag order in his 16-year-old settlement with the agency, telling a New York federal court Tuesday that the man waived his First Amendment rights when he agreed to the consent judgment.

  • June 19, 2019

    Texas AG Fraud Case In Limbo After Prosecutor Pay Ruling

    The prosecutors in a felony securities fraud case against the Texas attorney general couldn't convince a Texas appeals court to reconsider its ruling that they can't be paid $300 an hour for their work, leaving observers to wonder whether they will make good on a threat to withdraw from the case.

  • June 19, 2019

    PG&E Wants Bankruptcy Court To Stop Securities Suit

    Beleaguered PG&E Corp. has asked the Northern California bankruptcy court to put a stop to a securities suit alleging that company directors misled investors about the utility's wildfire-related liability, saying it should be shielded from the suit while under Chapter 11 protection.

  • June 19, 2019

    Ex-Alaska Telecom Exec Gets 5 Years For $270M Scheme

    A Manhattan federal judge sentenced a former CEO of telecom company Quintillion Networks LLC to five years behind bars Wednesday for forging contracts in order to trick funders into investing $270 million to build a fiber optic data network in Alaska.

  • June 19, 2019

    White Eagle Ch. 11 Plan, Lender Settlement Confirmed

    Saved from an apocalyptic court fight by a settlement with prepetition lenders, bankrupt life insurance investor White Eagle Asset Portfolio secured confirmation of its Delaware Chapter 11 plan on Wednesday, triggering a race to pay off a $382.7 million debt through refinancing or asset sales.

  • June 19, 2019

    Danske Bank, Ex-Execs Want Suit Over Estonia Scandal Axed

    Danske Bank and its former leadership fired back at an investor suit on Tuesday, saying the European money-laundering scandal miring the Danish bank has little to do with securities and nothing to do with fraud.

  • June 18, 2019

    Judge Rips Bernstein Litowitz, MoFo Over Buried 'Side Deal'

    A California federal judge considering Restoration Hardware's proposed $50 million stock-drop settlement admonished attorneys from Bernstein Litowitz and Morrison & Foerster on Tuesday for failing to bring a confidential “side deal” to her attention, saying she's warned other judges that the lawyers buried mention of the deal deep inside settlement papers.

  • June 18, 2019

    FHFA, Wells Fargo Agree To Put Suit Over $1B RMBS On Hold

    The Federal Housing Finance Agency has agreed to pause its lawsuit against Wells Fargo over $1 billion in pre-crisis residential mortgage-backed securities purchased by Freddie Mac, a truce that means the agency will proceed first with its Second Circuit fight to have the case's claims excluded from a related $165 million settlement.

  • June 18, 2019

    Exchanges Want Another 2nd Circ. Look At 'Flash Boys' Suits

    A group of seven major U.S. stock exchanges are hoping the Second Circuit will take a second look at a consolidated group of class actions inspired by the high-frequency trading exposé “Flash Boys” that recently survived a dismissal bid.

Expert Analysis

  • DOJ's Citgo Case Highlights Reach, And Limits, Of FCPA

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    The bribes a Miami businessman recently admitted paying to executives of gasoline retailer Citgo violated the Foreign Corrupt Practices Act, because Citgo is owned by the Venezuelan government. But there is scant case law for the U.S. Department of Justice to rely on in a case against Citgo itself, says Timothy Belevetz of Ice Miller.

  • Financial Services Regulation For Fintech Companies: Part 2

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    In the second part of this series on regulatory challenges faced by fintech innovators, Nathan Greene and Justin Reda of Shearman & Sterling caution entrepreneurs in the financial space to be aware of when their products could be categorized as securities, and of the many regulatory obligations that can arise as a result.

  • 5 Ways Law Firms Can Improve Their Job Interviews

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    When evaluating potential new hires, law firms should utilize structured interviews in order to create a consistent rating system that accurately and effectively assesses candidates' skills and competencies, says Jennifer Henderson of Major Lindsey.

  • Financial Services Regulation For Fintech Companies: Part 1

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    Firms in the U.S. financial sector are surrounded by a virtual moat of complex regulations, mandatory disclosures and compliance infrastructure. Nathan Greene and Justin Reda of Shearman & Sterling offer an overview of the regulatory context — and some of the crocodiles lurking in that moat — for fintech entrepreneurs entering the sector.

  • How New IRS Rules Help Tribes Holding Special Benefit Bonds

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    Recent Internal Revenue Service guidance gives tribal economic development bond issuers more flexibility to alter bond terms without losing tax advantages and a greater opportunity to realize debt-service savings, say attorneys at Greenberg Traurig.

  • What To Expect When You're Expecting The End Of Libor

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    The significant adjustments that market participants need to make when Libor is phased out will be undertaken while replacement rates and fallback provisions remain unresolved. Now is the time to take stock of your company’s exposures and map a path forward, say Gregory Harrington and Arturo Caraballo at Arnold & Porter.

  • SEC Proposes Welcome Streamlining Of M&A Disclosures

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    The U.S. Securities and Exchange Commission recently proposed extensive changes to financial disclosure requirements under Regulation S-X for business acquisitions and dispositions. These changes should further simplify line-item disclosures with respect to capital formation, and reduce the time and expense associated with preparing them, say attorneys at Skadden. 

  • Opinion

    Retailers Should Stay Away From Cryptocurrency

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    A number of big-name retailers are reportedly poised to begin accepting bitcoin and other digital currency, but given cryptocurrency's complete and utter lack of oversight, these companies run a perilous gamut of legal, regulatory, financial, ethical and reputational dangers, says cybersecurity consultant John Reed Stark.

  • The SEC Is Cracking Down On Insider Trading By Lawyers

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    A recent series of actions brought by the U.S. Securities and Exchange Commission suggests that insider trading by lawyers may be on the rise. Legal departments and law firms should understand the four types of cases the SEC is pursuing in this area, says Daniel Hawke of Arnold & Porter.

  • Series

    Why I Became A Lawyer: A Fateful Phone Call

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    When I was growing up, my mother was always the more mild-mannered parent. But during a trans-Atlantic phone call in 1991, when I told her I wanted to go to culinary school instead of law school, she started yelling — at a volume I had never heard from her, says Jason Brookner of Gray Reed.

  • Law Firms Can Do Better With Their Mentoring Programs

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    There are a few practical, proactive steps law firms can take to create a mentoring program that pays dividends — instead of creating a mediocre program that both parties see as an obligation, says Kate Sheikh of Major Lindsey & Africa.

  • Opinion

    The SEC Should Let Broker-Dealers Unbundle Research Costs

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    The U.S. Securities and Exchange Commission has the tools to allow U.S. money managers to unbundle research from execution, and pay for research with hard dollars — a legally well-founded and common-sense policy outcome, say attorneys with Sidley Austin.

  • The Latest Developments In Criminal Cases Against Execs

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    This spring, there was some noteworthy news in white collar government investigations impacting executives, including the first successful prosecution in the opioid bribery scheme and the first criminal charges for failure to report under the Consumer Product Safety Act, say attorneys at Miller & Chevalier.

  • 'Rocket Docket' Justifies Its Name For 11th Straight Year

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    The U.S. District Court for the Eastern District of Virginia “rocket docket” is still the fastest federal civil trial court in the country despite some recent trends causing its median time to trial to grow to 13.2 months, says Robert Tata of Hunton.

  • Companies In Canada Must Prepare For Shareholder Activism

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    The trend of increased shareholder activism in Canada continues in 2019, with 10 public proxy contests launched since January. It is important that boards and management try to listen and understand the views of shareholders — including activists — in good faith, say Jonathan Feldman and Michael Partridge of Goodmans.