Securities

  • August 20, 2019

    AIG's $13M Battle May Bolster Insurers' Settlement Challenges

    The Ninth Circuit recently sought the Arizona Supreme Court’s help to decide whether an AIG unit was justified in its refusal to cover the University of Phoenix's $13 million settlement of a class action, and attorneys say a ruling in the insurance company’s favor could give other carriers more leverage to challenge the reasonableness of policyholders’ deals.

  • August 20, 2019

    Fintech Adoption Poised For Growth In US Despite Lag

    The adoption of fintech products that provide online banking and money transmission services has been uneven across the globe, with U.S. consumers lagging behind those in China and India, but with regulatory clarity potentially on the horizon, some see the potential for a surge in use in the U.S.

  • August 20, 2019

    Russian Crypto Ratings Agency Settles SEC's Promo Claims

    The U.S. Securities and Exchange Commission on Tuesday said Russia-based cryptocurrency ratings company ICO Ratings has agreed to pay hundreds of thousands of dollars to settle claims that it failed to disclose payments from issuers for publicizing their blockchain-based digital assets.

  • August 20, 2019

    Pandora Investors Want To Rewind $3.5B Sirius Buyout

    Former Pandora Media investors challenged the company's $3.5 billion buyout by Sirius XM Radio in Delaware's Chancery Court on Tuesday, pointing to conflicted acts by the companies that produced an unfair price and an invalid merger.

  • August 20, 2019

    NY AG Gets Go-Ahead To Continue Bitfinex Investigation

    A New York state judge said Monday he would not put an end to the state attorney general’s probe into cryptocurrency exchange Bitfinex, finding that he is obligated by law to facilitate the AG’s investigation.

  • August 20, 2019

    Drugmaker Pays $200K To End SEC Fight Over Study Leaks

    A Florida pharmaceutical company will pay a $200,000 civil penalty to the U.S. Securities and Exchange Commission to end allegations it leaked medical studies that bolstered its case for approval of a drug to market analysts before giving that information to investors.

  • August 20, 2019

    5th Circ. Invokes Chanel In Siding With Pier 1 Over Stock Drop

    The Fifth Circuit affirmed the dismissal of a shareholder suit alleging Pier 1 hid the possibility that it might cut prices to sell excess inventory, using a Coco Chanel quote to reject claims executives knew their products were at risk of discounts because they were trendy.

  • August 20, 2019

    Crypto Co. Veritaseum Asks Court To End SEC's Asset Freeze

    Cryptocurrency company Veritaseum Inc. pushed back in New York federal court Monday against an asset freeze won by the U.S. Securities and Exchange Commission as part of its suit accusing the company's owner of bilking investors out of $15 million through its Veri Token offering.

  • August 20, 2019

    2nd Ex-JP Morgan Metals Trader Cops To Spoofing

    A former JPMorgan Chase metals trader pled guilty in Brooklyn federal court Tuesday to spoofing commodities transactions for most of his 12-year career, making him the second trader at the bank to admit to such a scheme.

  • August 20, 2019

    Crypto Platform Sets $130M Target In Rare IPO Filing

    Cryptocurrency trading platform INX Ltd. filed plans to raise up to $129.5 million in an initial public offering with the help of McDermott Will & Emery LLP, Horn & Co. Law Offices and Hassans International Law Firm, making it one of a few cryptocurrency companies to pursue a U.S. listing. 

  • August 20, 2019

    Dean Foods Ex-Chair Diverts $9.7M Fraud Restitution Suit

    The former Dean Foods Co. chairman convicted of insider trading does not have to face the company's lawsuit in Texas seeking to recoup $9.7 million it spent on the case, including millions for his legal defense, after a state judge ruled Monday that the case belongs in Delaware.

  • August 20, 2019

    Sports Stock Market Owner Faces SEC's $1.5M Fraud Suit

    The Securities and Exchange Commission has sued the man behind an experimental sports marketplace, alleging he sold nearly $1.5 million in bogus shares by promising investors for years that he would properly register them soon.

  • August 20, 2019

    Petrobras Objector's Reduced Fee Award Concerns 2nd Circ.

    The Second Circuit seemed tempted Tuesday to return a fee dispute in the settled, $3 billion Petrobras securities class action to U.S. District Judge Jed S. Rakoff, after a settlement objector complained that his work saved the class $46 million but he only got an $11,700 award for his trouble.

  • August 20, 2019

    $54M Ponzi Scheme's Architect Gets 22-Year Sentence

    The mastermind behind a $54 million Ponzi scheme was handed a 22-year prison sentence Tuesday as a judge questioned whether the admitted fraudster could ever be trusted to respect the law after cooking up a second plan to pilfer investors while on bail for the original crime.

  • August 20, 2019

    Investors Reach $12.8M Partial Deal Over Fund Collapse

    A proposed class of investors asked an Illinois federal judge Monday to give initial approval to a $12.8 million cash settlement to resolve allegations that parties affiliated with a mutual fund they bought into covered up aggressive investment tactics that ultimately led to an 80% stock drop.

  • August 20, 2019

    Bank Regulators Sign Off On Finalized Volcker Rule Changes

    Federal banking regulators on Tuesday approved a final set of changes to the Volcker Rule's proprietary trading ban, dropping an industry-criticized plan to introduce an accounting-based test for vetting whether trades are prohibited under the rule.

  • August 19, 2019

    McKinsey Critic Can't Prevail On RICO Claims, Judge Rules

    Turnaround pro Jay Alix has suffered another setback in his yearslong crusade against McKinsey & Co. over perceived failures to reveal conflicts of interest in its bankruptcy work, as a New York federal judge said Alix's allegations were "concerning," but nonetheless threw out his RICO claims.

  • August 19, 2019

    Under Armour Ditches Stock-Drop Suit

    Athletic apparel company Under Armour on Monday escaped a proposed securities class action accusing it of hiding a decrease in demand for its products, with a Maryland federal judge finding the company’s investors failed to convincingly plead their case.

  • August 19, 2019

    Commerzbank Bids For Quick Wins In BNY Mellon RMBS Suit

    Commerzbank AG has asked the Manhattan federal judge overseeing its residential mortgage-backed securities trustee suit against the Bank of New York Mellon for key rulings that it said would leave damages as the only question remaining to be tried for nearly half of the dozens of mortgage trusts at issue in the case.

  • August 19, 2019

    SEC Opposes Bid For New Judges In Fla. Microcap Case

    The U.S. Securities and Exchange Commission on Monday opposed a bid for new judges in its case against a Florida attorney and her husband over their involvement in a pair of microcap schemes, arguing they have raised “woefully insufficient” claims of bias.

  • August 19, 2019

    Chancery Tosses Suit Claiming Energy Co. Loan-To-Own Plot

    A string of fatal flaws — including sold-away shares and standing to sue — led to dismissal Monday of a Chancery Court suit accusing private equity investors of exploiting loans and stock warrants to gain control of a clean-energy finance business.

  • August 19, 2019

    Ex-Alstom Exec Can't Dodge Charges Despite 'Close' Call

    A former Alstom SA executive lost a bid to dismiss foreign bribery charges on Monday over years of delay, although a Connecticut federal judge said the case was a "close" one that illustrates the difficulty of deciding when a case is so old that it violates a defendant's right to a speedy trial.

  • August 19, 2019

    Seismic Data Co. Under SEC Review Hit With Stock-Drop Suit

    An oilfield services company that specializes in providing seismic data was hit with a stock-drop suit by a proposed class of investors on Sunday, three days after it announced the U.S. Securities and Exchange Commission was investigating its conduct in recent accounting matters.

  • August 19, 2019

    Binance Eyes Gov't Partnerships With New Crypto Initiative

    Binance, one of the largest cryptocurrency exchanges in the world, on Monday announced its Venus initiative, a blockchain project aimed at developing “localized stablecoins and digital assets” with companies and government partners.

  • August 19, 2019

    Lexmark Investors Seek Class Cert. In Stock-Drop Suit

    Lexmark investors on Friday asked a New York federal judge to certify a class in a suit alleging the printer manufacturer caused its stock price to tumble after it oversupplied some of its markets overseas, temporarily inflating the company's value.

Expert Analysis

  • Changes Bring Structure To SEC Settlement Waiver Process

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    The U.S. Securities and Exchange Commission's decision to allow firms to make settlements with the regulator contingent on requests to waive disqualifications under the federal securities laws gives firms more clarity around the collateral consequences of offers of settlement, say attorneys at Sidley Austin.

  • CFTC's Silence Stings In Wheat Futures Manipulation Case

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    The U.S. Commodity Futures Trading Commission v. Kraft and Mondelez case was expected to clarify new standards for prosecuting market manipulation, but instead ended in a settlement that failed to provide any guidance or context, and even barred the CFTC from publicly commenting on the case, says Braden Perry at Kennyhertz Perry.

  • Breaking Down The SEC's Regulation Best Interest

    Excerpt from Lexis Practice Advisor
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    The U.S. Securities and Exchange Commission's recently adopted Regulation Best Interest represents a significant rulemaking for the retail financial services industry that will require significant time and resources to make the necessary operational and compliance changes, say Jay Baris and Russell Sacks at Shearman & Sterling.

  • Issues To Avoid In Fintech, Consumer Financial Services M&A

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    Fintech-specific considerations and persistent regulatory scrutiny highlight the need to understand the risks involved — and necessary due diligence — before acquiring a consumer financial products and services business, says Jonathan Pompan at Venable.

  • Class Settlements And The Risks Of Viral Media Attention

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    When class settlements go viral — increasingly as a result of websites that promote settlement payouts — companies face extreme losses that could exceed reserves and available cash on hand. But there are several considerations that may help minimize this risk, says Kevin Skrzysowski at Risk Settlements.

  • Crisis Messaging To Protect Law Firm Brand And Bottom Line

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    When crises occur, such as data security incidents or gender bias suits, a well-prepared law firm has a thoroughly tested communications plan at the ready, which ensures the firm is the most proactive news source, prevents the crisis from escalating and notifies stakeholders about mitigation efforts, says Zach Olsen at Infinite Global.

  • Shareholder Activism Pushes Boundaries Of Board Duties

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    The Delaware Supreme Court’s recent decision in Marchand v. Barnhill may signal a shift in how the state recognizes broader stakeholder interests in the name of shareholder value, say Beth Boland and Andrew Howell at Foley & Lardner.

  • Assessing The Cost, Legal Fallout Of Capital One Data Breach

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    Following Capital One's recent massive data breach, Jack Lu of IPMAP estimates the incremental direct cost incurred for management of the breach and for post-breach legal and regulatory processes, shedding light on the economic and legal uncertainties.

  • Perspectives

    What You Should Know About Courtroom Closures

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    At attorney Greg Craig’s trial in D.C. federal court this week, the courtroom was cleared so prospective jurors could answer sensitive questions. Even seasoned litigators were left wondering about the nature of this subtle, yet significant, issue involving Sixth Amendment public trial rights, says Luke Cass at Quarles & Brady.

  • Private M&A Indemnification Clarified In Chancery Ruling

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    In Hill v. LW Buyer, the Delaware Chancery Court's opinion underscores the importance of including as much detail as possible in M&A parties' indemnification claims and submitting them in a timely manner to preserve their indemnification rights, says Sawyer Duncan at King & Spalding.

  • Chancery Decision Demonstrates When To Skip Appraisal

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    The Delaware Chancery Court's Appraisal of Jarden opinion shows that stockholders should seek out appraisal proceedings arising from mergers with caution, and consider a fiduciary duty action based on an inadequate sales process if the buyer is a strategic buyer, say Michael Maimone and Joseph Schoell at Drinker Biddle.

  • Series

    Why I Became A Lawyer: A Seaweed Scientist's Odyssey

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    In the early 1980s, I was working on my Ph.D. in marine biology and ecology. As part of an international team of scientists studying oil spill impacts on marine ecosystems, I saw a niche opportunity to combine science and law, says Andrew Davis of Shipman & Goodwin.

  • Advisers Can Borrow From Banking's Model Risk Playbook

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    In the absence of U.S. Securities and Exchange Commission rules to govern the investment management industry's use of models, asset managers can look to the Federal Reserve Board and U.S. Office of the Comptroller of the Currency's supervisory guidance on model risk management amid ongoing regulatory scrutiny of this area, say Michael Sullivan and Nicholas Kiritz at Promontory Financial Group.

  • SEC's Amendments Streamline Reporting — In Some Cases

    Excerpt from Lexis Practice Advisor
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    In light of the U.S. Securities and Exchange Commission's newly adopted amendments to Regulation S‑K, reporting companies should take a fresh look at quarterly reports on Form 10‑Q, as well as exhibits in their Form 10‑K, Form 10‑Q or registration statements, say attorneys at Gibson Dunn.

  • Blockstack Token Offering Establishes Reg A+ Prototype

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    The market's first-ever regulated digital token offering — from Blockstack in July — outlines the U.S. Securities and Exchange Commission's position on issuing digital securities under Reg A+, but token-specific guidance is still needed to fill in the gaps, says Daniel Payne at Murphy & McGonigle.