Securities

  • October 14, 2019

    Barclays Exec 'Fretted' Qatar Fees Looked Like Bribe

    A former Barclays executive told in-house lawyers he was worried that a secret payment to Qatar to secure an investment as part of an emergency fundraising during the financial crisis would be seen as a bribe, prosecutors said at a London fraud trial Monday.

  • October 11, 2019

    Bear Stearns, Reed Smith Settle $500M Malpractice Suit

    Two now-defunct Bear Stearns investment funds have agreed to end a malpractice suit in New York court accusing Reed Smith LLP of bungling its representation of the funds to the tune of half a billion dollars during a suit against ratings agencies.

  • October 11, 2019

    SEC Blocks $1.7B Digital Token Offering In Court

    The U.S. Securities and Exchange Commission obtained a temporary restraining order in New York federal court Friday to block two offshore entities from carrying out a $1.7 billion digital token offering that the agency says violates securities laws.

  • October 11, 2019

    Look Beyond Crypto Labels, SEC, CFTC And FinCEN Warn

    A trio of federal financial regulators released a joint statement on Friday urging anyone dealing with digital currencies to ensure they are adhering to obligations under anti-money laundering and countering the financing of terrorism regulations, regardless of what those digital assets are called.

  • October 11, 2019

    Feds Call Ex-Deutsche Traders 'Emblematic' Of Banking Ills

    Federal prosecutors say two former Deutsche Bank traders’ deserve substantial prison time for Libor rigging as a crime “emblematic” of big banks’ bad behavior, while the traders argue that they had already suffered enough as two of the few to be prosecuted over the international scandal.

  • October 11, 2019

    Chancery Lets 1 Claim Survive In $40M Sporting Co. Sale Suit

    The Delaware Chancery Court dismissed all but one of six counts Friday in a suit accusing majority investors in a sporting and fitness goods manufacturer of unfairly pushing through a $40 million company sale that left the minority, including the company’s two founders, with nothing.

  • October 11, 2019

    Rakoff Hammers Salon Owner With $500K Insider Trading Fine

    U.S. District Judge Jed S. Rakoff allowed Manhattan hairdresser Abell Oujaddou to avoid prison for insider trading Friday, citing his remorse and cooperation with prosecutors, but smacked the wealthy business owner with a $500,000 fine for a crime of "sheer greed."

  • October 11, 2019

    Boustani Heads To Trial In $2B Mozambique Fraud Case

    The long-awaited trial of Privinvest executive Jean Boustani over his role in a securities fraud, bribery and kickback scheme involving $2 billion in Mozambican government loans is scheduled to commence on Tuesday.

  • October 11, 2019

    CVR Loses Bid To Reignite Malpractice Fight With Wachtell

    A New York federal judge axed CVR Energy Inc.’s malpractice suit against Wachtell Lipton Rosen & Katz on Wednesday and said the oil company’s request to retool its complaint “blatantly disregards” an earlier order that limited the scope of revisions CVR was already allowed to make.

  • October 11, 2019

    DC Circ. Presses SEC To Justify Exchange Fee Program

    The D.C. Circuit on Friday seemed skeptical that the U.S. Securities and Exchange Commission had identified an existing problem warranting a two-year pilot program that could cap the fees major exchanges receive.

  • October 11, 2019

    Chicago's Ex-Chief Judge Turns To 'Unfinished Business'

    After 25 years on the federal bench in Chicago, former Chief U.S. District Judge Rubén Castillo is returning to private practice as a man with a mission, ready to tackle "unfinished business."

  • October 11, 2019

    Firms Want $2M In Fees For Quantum Accounting Settlement

    Kirby McInerney and Glancy Prongay & Murray asked a California federal court Thursday for roughly $2 million in fees for their efforts securing a tentative $8 million from data storage company Quantum Corp. to resolve a shareholder lawsuit over its accounting practices.

  • October 11, 2019

    Committee Opposes Releases In Orchids Ch. 11 Proposal

    The unsecured creditors of bankrupt paper maker Orchids Paper Products Co. claim its proposed Chapter 11 plan is “fatally flawed” because it includes releases that would prevent creditors from suing Orchids’ directors and officers individually, arguing that to even permit a vote on the plan would be a waste of money.

  • October 11, 2019

    Investors Fight Bid To Ax Suit Alleging College App Fraud

    Shareholders accusing a China-based education company of ghostwriting college applications said Thursday that rather than addressing their revamped allegations, the company's latest dismissal bid merely rehashes a judge's order tossing an old incarnation of the proposed class action.

  • October 11, 2019

    Abrams, Olshan Draw Guff For $22M Fee Bid On $47M Deal

    Abrams & Bayliss and Olshan Frome Wolosky faced pushback Thursday on a $22 million fee bid for brokering a potential $47 million deal on behalf of a putative class of investors challenging Medley Capital Corp.'s proposed tie-up with Sierra Income Corp., as the defendants cast doubt that the deal is worth that much.

  • October 11, 2019

    Visa, MasterCard, EBay Drop Out Of Libra Association

    MasterCard, eBay and Visa confirmed to Law360 on Friday that they won't be joining the Facebook-led Libra digital currency project, a move that comes one week after PayPal announced it was ending its involvement.

  • October 11, 2019

    US, China Reach Truce To Delay Next Tariff Wave

    The Trump administration will hold off on raising tariffs against Chinese goods, according to a Friday announcement that marks a moment of conciliation in the sprawling trade conflict that has enveloped the two nations for over a year.

  • October 11, 2019

    Reed Smith Nabs Ex-Morrison & Foerster Capital Markets Atty

    Reed Smith LLP has added a capital markets attorney from Morrison & Foerster LLP as a partner in its global corporate practice in New York.

  • October 11, 2019

    EB-5 Scheme Fundraiser To Pay $527K In SEC Deal

    An oil and gas official accused of fundraising for a visa fraud scheme that targeted Chinese citizens interested in obtaining an EB-5 investor visa will pay $527,000 under an agreement with the U.S. Securities and Exchange Commission.

  • October 11, 2019

    9 Months For Ex-Accountant Who Leaked Secrets To KPMG

    A Manhattan federal judge hit former Public Company Accounting Oversight Board accountant Jeffrey Wada with nine months in prison Friday for passing inspection secrets from the financial watchdog to KPMG, calling him a “crucial” component of an illegal scheme that led to six convictions.

  • October 11, 2019

    Philly Refinery Puts Restructuring, Sale Options In Ch. 11 Plan

    Philadelphia's sprawling PES Holdings LLC refinery filed a three-option Chapter 11 plan in Delaware late Thursday, with leeway for an equity restructuring, sale or auction of the 1,300-acre complex, blasted by a June explosion into its second bankruptcy in less than two years.

  • October 11, 2019

    Congress Looks To Expand Financial Whistleblower Definition

    Congress seems poised to broaden the relatively narrow definition of whistleblower as it pertains to reporting violations of securities laws that was laid out by the U.S. Supreme Court last year, a development attorneys say would benefit potential whistleblowers and their employers alike.

  • October 11, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The past week has seen asset manager BlueCrest drag a U.S. hedge fund into court following its expansion into the U.K., a City watchdog sue a Panamanian connected to an illegal land sale scheme and a Hong Kong food distributor file suit against shipping giant MSC. Here, Law360 looks at those and other new claims in the U.K.

  • October 11, 2019

    Ex-Barclays Execs Faked Paper Trail To Hide Fraud, Jury Told

    Barclays executives who conspired to pay £322 million ($396 million) in secret fees to secure capital from Qatar during the financial crisis created a fake “audit trail” to cover their tracks, prosecutors told a London jury Friday during the bankers’ fraud trial.

  • October 11, 2019

    SEC's 'Test The Waters' Expansion Could Spur More Offerings

    The U.S. Securities and Exchange Commission’s decision to allow all companies to pursue “testing-the-waters” communications with institutional investors before registering their offerings is welcomed by corporate attorneys, who say the policy could spur more deal-making, though investor groups are skeptical that the public will benefit from the rule change.

Expert Analysis

  • How Emotionally Intelligent AI Could Assist With E-Discovery

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    While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

  • FinCEN 'Travel Rule' Update Sets Challenges For Crypto Cos.

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    It is unclear how the virtual currency sector will find a practical way to comply with the recent expansion of the Financial Crimes Enforcement Network regulation known as the travel rule, but any solution is likely to have both unintended consequences and unintended benefits, say attorneys with King & Spalding.

  • Rebuttal

    Data Pinpoints Expert Valuation Differences In Del. Appraisals

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    A recent Law360 guest article called on experts in appraisal proceedings to present valuations closer to deal price, but an examination of 20 cases involving disinterested transactions of public targets indicates this call to action is more apt for petitioner valuations than those of respondents, says Michael Cliff at Analysis Group.

  • Preventable Risks Your Law Firm May Be Overlooking

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    Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

  • Data Privacy Compliance Best Practices For Asset Managers

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    An asset manager can more nimbly engage with the nuances of new data privacy legislation by following a best practices model, developed through universal protocols, that can more readily be adapted to comply with a variety of laws, say attorneys at Ropes & Gray.

  • 6 Ethics Tips For Attorneys Making Lateral Transfers

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    With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

  • Rebuttal

    Mutual Funds Should Consider Shareholder Litigation

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    A recent Law360 guest article attempts to dissuade mutual funds from engaging in shareholder litigation, but it ignores the practical realities of how, under the right circumstances, it often makes sense for mutual funds to participate, say attorneys at Labaton Sucharow.

  • The Ins And Outs Of SEC's Expanded 'Test The Waters' Rule

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    The U.S. Securities and Exchange Commission’s recent expansion of permissible prefiling communications between issuers and certain potential investors may allow issuers to be in a better position to gauge interest in the market in a cost-effective manner, say attorneys at Debevoise.

  • Regulatory Scrutiny Exposes Crypto Oversight Challenges

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    A recent U.S. House Committee on Financial Services hearing highlights the lack of clarity on cryptocurrencies' legal obligations, as well as potentially shifting expectations as legislators and regulators consider how to oversee cryptocurrencies as a consumer financial product, say Duane Pozza and Antonio Reynolds at Wiley Rein.

  • 5 Steps Toward Broker Conduct Rule Compliance

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    As the June 30 deadline to comply with the U.S. Securities and Exchange Commission's Regulation Best Interest approaches, broker-dealers must start translating their implementation strategies into concrete actions, say attorneys at Eversheds Sutherland.

  • Consider The Power Of Tactical Empathy

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    By employing tactical empathy techniques to understand the interests behind the positions taken by others, attorneys can gain the upper hand in deal negotiations and litigation while still promoting and preserving long-term relationships with opponents, judges and others, say Shermin Kruse of TEDxYouth@Wrigleyville and Ursula Taylor of Strategic Health.

  • Post-Libor Rate Comes With Interest Accrual Concerns

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    The way the Alternative Reference Rates Committee calculates interest for its proposed backup successor to Libor results in an accrual hybrid that is analytically problematic in its suspension of compounding on nonbusiness days, says Thomas Volet at Moses & Singer.

  • The Problem — And Opportunity — Of Implicit Bias In The Bar

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    Law firms are beginning to recognize implicit bias as a problem. But too few recognize that it is also an opportunity to broaden our thinking and become better legal problem solvers, says Daniel Karon of Karon LLC.

  • Series

    Judging A Book: Thapar Reviews Gorsuch's 'A Republic'

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    U.S. Supreme Court Justice Neil Gorsuch's new book "A Republic, If You Can Keep It" offers hope for our constitutional system through stories of American greatness, and sheds much-needed light on originalism for skeptics, says Sixth Circuit Judge Amul Thapar.

  • Opinion

    Proxy Advisers Should Be Designated ERISA Fiduciaries

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    With Eugene Scalia confirmed as the U.S. secretary of labor, his department should prioritize designating proxy advisers — the primary provider of shareholder voting recommendations — as investment advice fiduciaries to protect Employee Retirement Income Security Act plan beneficiaries, says Bernard Sharfman of the Main Street Investors Coalition advisory council.