Securities

  • April 04, 2024

    SEC Points Jury To 'Coincidence' In Shadow Trading Trial

    A U.S. Securities and Exchange Commission attorney on Thursday cross-examined a former executive of pharmaceutical company Medivation about his alleged "shadow trading" in the stock of rival pharma company Incyte, pressing the executive repeatedly to assert that various facts and circumstances supporting the agency's position were merely "coincidence."

  • April 04, 2024

    SEC Officials Say Existing Policies Key To Cyber Rule Reports

    Companies grappling with the U.S. Securities and Exchange Commission's new rule to publicly disclose material cybersecurity incidents will have an easier time defending reporting missteps if they work to put robust policies in place before a breach occurs, a pair of agency officials said Thursday. 

  • April 04, 2024

    MoneyLion's Woes Draw Del. Suit Against SPAC Insiders

    Investors have sued the sponsor of a blank-check company and several of its directors and controllers in Delaware's Chancery Court, accusing them of overvaluing a merger with digital finance platform MoneyLion, which was sued by the Consumer Financial Protection Bureau in 2022.

  • April 04, 2024

    Snowflake Investor Accuses Brass Of Insider Trading

    A Snowflake Inc. investor filed a lawsuit Thursday against the cloud data platform's leadership team, accusing company insiders of shedding over $1 billion worth of stock at inflated prices while knowing about or recklessly disregarding a scheme to misrepresent sales data following the company's $3.3 billion public debut.

  • April 04, 2024

    Investors Want To Try Fraud Case Receiver Won't

    Investors in a company accused by securities regulators of a $125 million Ponzi scheme said Thursday they should get to pursue fraudulent transfer claims against other companies themselves, after a receiver indicated he didn't have the resources to go after them.

  • April 04, 2024

    9th Circ. Unconvinced Judge's Past Job Hurt Tesla Investor

    The Ninth Circuit on Thursday refused to revive claims brought by a short-seller accusing Tesla Inc. and CEO Elon Musk of using social media to artificially inflate the company's stock, ruling that the plaintiff wasn't prejudiced by a district judge's former employment with the predecessor of a firm that represented Tesla for a portion of the litigation.

  • April 04, 2024

    Google Files RICO Suit Alleging Crypto, Investing App Scams

    Google hit a pair of China-based app developers with a racketeering lawsuit in New York federal court Thursday, claiming they defrauded more than 100,000 users with dozens of fake investment and cryptocurrency exchange apps placed on the Google Play store that bilked users out of their money.

  • April 04, 2024

    Crypto Bank, Chair Blast FTX Investors' 'Gatling Gun' Claims

    A crypto bank and its chairman have urged a Florida federal judge to toss a second amended complaint from FTX investors alleging they helped Sam Bankman-Fried abscond with $8 billion in customer assets, saying the investors "employ a Gatling gun approach to pleading."

  • April 04, 2024

    Morgan Stanley, Goldman Sachs Can't Duck Archegos Claims

    A New York appellate court on Thursday affirmed a decision refusing to dismiss ViacomCBS investors' claims against Morgan Stanley, Goldman Sachs and a long list of banks over the collapse of Archegos Capital Management, finding that investors plausibly identified statements the banks made that could have been misleading.

  • April 04, 2024

    Crypto Co. Fined $700,000 For Duping Investors Into 'AI' Trading

    The owner of an unlicensed cryptocurrency investment firm wooed a cancer patient and other investors with promises of AI-driven trading, only to use their funds for rent payments and other personal expenses, Connecticut regulators said Wednesday in ordering a $700,000 fine.

  • April 04, 2024

    SEC Fines Adviser Senvest $6.5M In Texting Probe Case

    Investment adviser Senvest Management LLC has agreed to pay the U.S. Securities and Exchange Commission $6.5 million for its failure to hold on to certain electronic communications, the SEC said, expanding the list of settlements the agency has secured with firms in recent months over off-channel texting violations.

  • April 04, 2024

    Wells Fargo Hit With Del. Suit Targeting Account Abuses

    Citing billions of dollars in regulatory agency sanctions, fines and judgments and allegedly chronic disregard of "red flag" reports and fake account investigations, a Wells Fargo & Co. stockholder has sued 23 current and former bank directors and officers in Delaware's Court of Chancery, seeking derivative recoveries for the losses.

  • April 04, 2024

    BAE Stuck $8.2B Retirement Plan With Hefty Fees, Court Told

    Aerospace and defense company BAE Systems breached federal benefits law by saddling its $8.2 billion retirement plan with excessive recordkeeping fees and causing participants' savings to plummet, a proposed class action filed in D.C. federal court said.

  • April 04, 2024

    Ginnie Mae, HUD Must Face Bank's Vacated Lien Suit

    A Texas federal judge trimmed but declined to dismiss Texas Capital Bank's suit against the U.S. Department of Housing and Urban Development and its Government National Mortgage Association program over a vacated loan lien that the bank says was worth tens of millions of dollars.

  • April 04, 2024

    BitMEX Can't Ax Investor Suit After 2nd Circ.'s Binance Ruling

    A New York federal judge has refused to toss a proposed class action accusing cryptocurrency platform BitMEX and its executives of using their "God access" to customer accounts to manipulate trades and liquidate the accounts, finding that under the Second Circuit's recent Binance ruling, the transactions occurred in the U.S.

  • April 04, 2024

    Attys Awarded $1.5M In Fees On Tax Disclosure Suit

    Attorneys who won a $4.5 million settlement for a class of investors claiming a Chinese startup misrepresented its tax liability will receive their requested $1.5 million in attorney fees, a New York federal judge ruled.

  • April 04, 2024

    Judge Recuses Herself From Cartel Case Over Exxon Stock

    A Nevada federal judge has recused herself from a batch of antitrust lawsuits claiming U.S. shale oil producers colluded with OPEC to drive up prices at the pump, citing her ownership of a "significant" amount of Exxon Mobil Corp. stock.

  • April 04, 2024

    Judge Won't Pause Dismissal Of $114M Discord Stock Case

    A Houston judge has denied a bid from federal prosecutors to pause the dismissal of an indictment that accused eight men of running a $114 million pump-and-dump stock scheme, writing that the government's argument for a stay largely rehashes the merits of dismissing the case and "is not particularly persuasive."

  • April 04, 2024

    SEC Voluntarily Puts Climate Regs On Ice During Court Battle

    The U.S. Securities and Exchange Commission announced Thursday that it is voluntarily delaying the implementation of climate disclosure regulations while it fights an Eighth Circuit challenge seeking to vacate the rules, with the regulator saying that it hopes the voluntary stay will speed resolution of the case. 

  • April 04, 2024

    UK Billionaire Lewis Avoids Prison For Insider Trading

    A New York federal judge on Thursday sentenced British billionaire Joe Lewis to three years of probation for feeding his girlfriend and private-jet pilots nonpublic stock tips about his private equity firm's portfolio companies, saying a prison term would put the 87-year-old at "serious risk" of death.

  • April 04, 2024

    Ex-CEO Reaches Legal Fee Agreement With Trump-Tied SPAC

    A Delaware vice chancellor has signed off on an agreement between Donald Trump-tied Digital World Acquisition Corp. and its former CEO to have the venture pay his legal costs related to federal probes and litigation in multiple states.

  • April 04, 2024

    Del. Justices Reverse Chancery On Match.com Deal Fairness

    Delaware's Supreme Court on Thursday undid a Chancery Court dismissal of a challenge to Match.com's 2019 reverse-spinoff from Barry Diller-controlled IAC Interactive, in a closely watched case rejecting the lower court's finding that Match had justified the use of a less onerous fairness test.

  • April 04, 2024

    Withers Adds Former In-House Corp. Atty In San Francisco

    Withers has hired the former in-house general counsel for a financial software company, who joins the firm to continue his practice working with entrepreneurs in the technology, e-commerce and digital publishing industries, the firm announced Wednesday.

  • April 04, 2024

    IT Firm ConvergeOne To Wipe $1.6B Of Debt In Ch. 11

    Information technology company ConvergeOne Holdings Inc. received preliminary approval for a disclosure statement Thursday that describes its plan to slash $1.6 billion from its balance sheet in a prepackaged Chapter 11.

  • April 03, 2024

    SEC Disclosures Show Public Cos. Backing DEI, Study Finds

    Public companies overwhelmingly prioritized diversity, equity and inclusion principles in their mandatory workforce disclosures to the U.S. Securities and Exchange Commission in 2023 despite a flurry of litigation and legislative proposals aimed at deterring those initiatives in the corporate world, a study from Seyfarth Shaw LLP attorneys found.

Expert Analysis

  • Series

    Coaching High School Wrestling Makes Me A Better Lawyer

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    Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.

  • Implications For Digital Assets After SEC Settlement With DAO

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    The U.S. Securities and Exchange Commission's December settlement with BarnBridge — finding that the decentralized autonomous organization's products were securities under federal law — foreshadows increased enforcement attention on digital assets, and reveals arguments the SEC may use in similar disputes with decentralized finance protocols, say attorneys at K&L Gates.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • Bitcoin ETF Approval Doesn't Mean SEC Approves Of Crypto

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    While the U.S. Securities and Exchange Commission's approval last month of 11 applications for spot exchange-traded funds tracking bitcoin is a landmark moment for the crypto-asset industry, investors who are hopeful that the SEC will approve similar crypto-based ETFs may be disappointed, says attorneys at Mintz.

  • A Closer Look At Novel Jury Instruction In Forex Rigging Case

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    After the recent commodities fraud conviction of a U.K.-based hedge fund executive in U.S. v. Phillips, post-trial briefing has focused on whether the New York federal court’s jury instruction incorrectly defined the requisite level of intent, which should inform defense counsel in future open market manipulation cases, say attorneys at Lankler Siffert.

  • Reducing Carbon Footprint Requires A Tricky Path For CRE

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    As real estate owners find themselves caught between rapidly evolving environmental, social and governance initiatives and complicated societal debate, they will need to carefully establish formal plans to remain both competitive and compliant, say Michael Kuhn and Mahira Khan at Jackson Walker.

  • Del.'s Tesla Pay Takedown Tells Boards What Not To Do

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    The Delaware Chancery Court’s ruthless dissection of the Tesla board’s extreme departures from standard corporate governance in its January opinion striking down CEO Elon Musk’s $55 billion pay package offers a blow-by-blow guide to mistakes Delaware public companies can avoid when negotiating executive compensation, say attorneys at Cleary.

  • The Corporate Disclosure Tug-Of-War's Free Speech Issues

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    The continuing conflict over corporate disclosure requirements — highlighted by a lawsuit against Missouri's anti-ESG rules — has important implications not just for investors and regulated entities but also for broader questions about the scope of the First Amendment, say Colin Pohlman, and Jane Luxton and Paul Kisslinger at Lewis Brisbois.

  • What New Calif. Strike Force Means For White Collar Crimes

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    The recently announced Central District of California strike force targeting complex corporate and securities fraud — following the Northern District of California's model — combines experienced prosecutorial leadership and partnerships with federal agencies like the IRS and FBI, and could result in an uptick in the number of cases and speed of proceedings, say attorneys at MoFo.

  • Del. Dispatch: Clarification On Fiduciary Duties Of Controllers

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    The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.

  • Navigating The Sunset Of Sibor And Other Key Benchmarks

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    Similar to the recent transition away from Libor, the expected cessation deadlines of the Canadian Dollar Offered Rate and Singapore Interbank Offered Rate are nigh, so Canadian and Singapore dollar-denominated credit facilities will likely need to be amended, say attorneys at Cadwalader.

  • What Shareholder Approval Rule Changes Mean For Cos.

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    The U.S. Securities and Exchange Commission recently approved proposed rule changes to shareholder requirements by the New York Stock Exchange, an approval that will benefit listed companies in many ways, including by making it easier to raise capital from passive investors, say attorneys at Baker Botts.

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • Series

    ESG Around The World: Brazil

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    Environmental, social and governance issues have increasingly translated into new legislation in Brazil since 2020, and in the wake of these recently enacted regulations, we are likely to see a growing number of legal disputes in the largest South American country related to ESG issues such as greenwashing if companies are not prepared to adequately adapt and comply, say attorneys at Mattos Filho.

  • The FINRA Reports That May Foreshadow New AI Rules

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    By reading the Financial Industry Regulatory Authority’s 2024 annual report detailing the regulatory implications of artificial intelligence tools alongside a similar 2020 FINRA publication, member firms may be able to anticipate which industry areas may soon face AI-specific regulations, say attorneys at Mintz.

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