Securities

  • July 10, 2024

    Feds Say Guo Ran 'Fraud Empire' As Racketeering Trial Wraps

    Manhattan federal prosecutors urged a jury on Wednesday to convict Chinese dissident Miles Guo for operating his political movement as a vast racketeering conspiracy that "brainwashed" supporters into spending more than $1 billion on scam investments.

  • July 10, 2024

    Deutsche Bank Settles Ex-Trader's Malicious Prosecution Suit

    Deutsche Bank has settled a lawsuit brought by a former trader who claimed the bank scapegoated him when the U.S. Department of Justice began an investigation into suspected interest rate rigging, according to a Wednesday filing in New York federal court.

  • July 10, 2024

    Ex-CEO Of Mogul-Tied Co. Fired For Failures, Fraud Suit Says

    A European IT company tied to convicted mogul Greg Lindberg struck back against a lawsuit by its former CEO who alleges he was fired abruptly, accusing the former executive of shirking his leadership duties in a counterclaim.

  • July 10, 2024

    AdaptHealth Investor Attys Get 25% Of $51M Deal, With Caveat

    A Pennsylvania federal judge on Wednesday granted final approval to a $51 million settlement between AdaptHealth and investors over allegations tied to its merger with a blank check company, but the plaintiffs' counsel must wait for certain shares to be sold before they can collect their $12.8 million fee.

  • July 10, 2024

    Peloton Investors Get Final OK For $14M Settlement

    A New York magistrate judge has given the final approval to a $14 million settlement between Peloton and investors over claims that the home exercise equipment maker failed to properly disclose issues with its treadmills after a 6-year-old was killed by one.

  • July 10, 2024

    Thoma Bravo's Qualtrics Bid Fell Short, SAP Tells Chancery

    Thoma Bravo LP may have offered $1.2 billion more than Silver Lake Management to buy Qualtrics International Inc. from software company SAP SE in 2023, but other aspects of the bid were less attractive than Silver Lake's $12.5 billion offer, an attorney for SAP directors told Delaware's Court of Chancery on Wednesday.

  • July 10, 2024

    Behnam Tells Senate CFTC Is Ready To Be Retail Crypto Cop

    U.S. Commodity Futures Trading Commission Chair Rostin Behnam sought to assure lawmakers that his agency is ready to protect retail investors if it is given oversight of digital asset markets during a Wednesday Senate hearing setting the stage for a coming legislative proposal on the future of cryptocurrency regulation.

  • July 10, 2024

    Archegos Founder Convicted Of $100B Fraud On Wall Street

    A Manhattan federal jury on Wednesday convicted Archegos founder Bill Hwang of illegally injecting over $100 billion into Wall Street markets with lies to banks that ballooned stocks and his assets, before running his family-office hedge fund into the ground.

  • July 10, 2024

    House Panel Votes To Nix Biden's Retirement Advice Rule

    A Republican-controlled panel of U.S. House lawmakers advanced legislation Wednesday to block recently finalized regulations from the U.S. Department of Labor that expand the definition of a fiduciary under the Employee Retirement Income Security Act, after a brief debate on retirement policy that clearly split along party lines.

  • July 10, 2024

    SEC Probes NYSE's Bid To Extend SPAC Merger Deadlines

    The U.S. Securities and Exchange Commision wants more time to investigate a New York Stock Exchange proposal that would lengthen deadlines to complete certain mergers involving special purpose acquisition companies to 42 months, saying NYSE's proposal departs from typical time limits intended to protect investors.

  • July 10, 2024

    Ex-CEO Convicted In COVID Test Kit Fraud Case

    A former healthcare software executive was found guilty of securities fraud Wednesday by a New Jersey federal jury in the retrial of a case that ended in a hung jury in December.

  • July 09, 2024

    FINRA Fines UBS For Missing Rep's $7.2M Sell-Away Scheme

    The Financial Industry Regulatory Authority has fined UBS Financial Services Inc. $850,000 as part of a deal to resolve allegations that the firm failed to detect for more than two decades one of its representative's outside sales of mismarketed securities to his UBS clients.

  • July 09, 2024

    Private Funds Say 5th Circ. Ruling Sinks SEC's AI, Cyber Bids

    Several trade groups for the private fund industry urged the U.S. Securities and Exchange Commission on Tuesday to withdraw rule proposals on artificial intelligence and investment adviser outsourcing and cybersecurity risk management, in light of a Fifth Circuit ruling that dealt a blow to the agency's private fund oversight.

  • July 09, 2024

    Chancery OKs $100K Incentive Fee In $18.8M Class Settlement

    An $18.8 million settlement ended Tuesday a Delaware Court of Chancery derivative suit alleging a $220 million breach of fiduciary duty by Guggenheim Funds Investment Advisors LLC and trustees of a closed-end fund client, with the court also approving a rare $100,000 plaintiff incentive fee.

  • July 09, 2024

    Slam By CFTC Member Backs Sanctions Bid, Forex Firm Says

    A foreign exchange firm that accused the U.S. Commodity Futures Trading Commission of misconduct in bringing an action against it has cited recent criticism of the agency's enforcement division by one of its commissioners in support of its bid to toss the case and sanction the regulator.

  • July 09, 2024

    3rd Circ. Rips 2nd Circ. In Asset Freeze Ruling For SEC

    The Third Circuit is standing by a lower court's decision to freeze a private equity executive's assets as he fights insider trading claims brought by the U.S. Securities and Exchange Commission, criticizing its sister circuit's approach to handling such issues in a precedential ruling Tuesday.

  • July 09, 2024

    NJ Panel Revokes Coverage For Pharma Co. In Fraud Row

    A pharmaceutical company isn't covered for underlying accusations that it was a middleman in a self-dealing scheme orchestrated by its now-deceased board chairman, a New Jersey state appeals court ruled Tuesday, reversing a decision that a capacity exclusion in the company's directors and officers policy didn't apply.

  • July 09, 2024

    5th Circ. Presses SEC On Whistleblower Award Calculation

    The Fifth Circuit heard oral arguments Tuesday in a case accusing the U.S. Securities and Exchange Commission of shortchanging two whistleblowers who uncovered the largest fraud in Texas history, with one judge pressing the agency's attorney over how much money it was able to collect after the fraudster declared bankruptcy.

  • July 09, 2024

    NJ Jury Begins Deliberating COVID Test Kit Fraud Case

    Jurors began deliberating Tuesday in the retrial of a securities fraud case that ended with a dramatic mistrial after a juror announced in open court last December that he disagreed with the guilty verdict that had just been delivered by the jury forewoman.

  • July 09, 2024

    Del. Chancellor Sends SwervePay Merger Suit Toward Trial

    Delaware's Court of Chancery on Tuesday rejected dismissal for an amended complaint filed by e-payment venture SwervePay accusing buyers affiliated with payment collection business Ontario Systems LLC of overstating by tens of billions revenue-producing transactions expected under a proposed 2020 tie-up.

  • July 09, 2024

    Yellen Says Customer Due Diligence Proposal Planned For Fall

    Treasury Secretary Janet Yellen told members of Congress Tuesday that her department is aiming to release a proposal this fall to revise the Financial Crimes Enforcement Network's customer due diligence rule, while facing criticism over "duplicative" reporting regimes.

  • July 09, 2024

    Feds Seek 37 Mos. For Tippee In JPMorgan Insider Case

    California federal prosecutors are seeking a three-year prison sentence for a Los Angeles man who was found guilty of trading on privileged information supplied by a childhood friend who was an analyst at JPMorgan Securities LLC, saying that his repeated lies under oath suggest he does not fully understand the consequences of his actions.

  • July 09, 2024

    2 Cooperators In Bankman-Fried Case To Be Sentenced In Fall

    Two former FTX executives who pled guilty and testified for the government at the trial of Sam Bankman-Fried, the collapsed cryptocurrency exchange's founder, will be sentenced this fall, a New York federal judge said Tuesday.

  • July 09, 2024

    Ackman's Pershing Square USA Kicks Off IPO Roadshow

    Pershing Square USA Ltd., a closed-end fund backed by hedge-fund giant Bill Ackman, on Tuesday said it has launched a marketing roadshow for an initial public offering that could enable retail investors to own part of one of the U.S.'s largest listed funds.

  • July 09, 2024

    Ex-DOJ Atty Tells Guo Jury Of Illicit Extradition Campaign

    Prominent Chinese Communist Party critic Miles Guo capped off his defense to $1 billion fraud charges Tuesday with testimony from a former U.S. Department of Justice attorney, who admitted to participating in a plot to lobby the U.S. government for Guo's extradition to China.

Expert Analysis

  • 3 Ways Agencies Will Keep Making Law After Chevron

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    The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.

  • Opinion

    Atty Well-Being Efforts Ignore Root Causes Of The Problem

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    The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.

  • Proposed Customer ID Rule Could Cost Investment Advisers

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    A rule recently proposed by FinCEN and the U.S. Securities and Exchange Commission to make financial advisers collect more customer information parallels an anti-money laundering and counterterrorism rule proposed this spring, but firms may face new compliance costs when implementing these screening programs, say attorneys at Lowenstein Sandler.

  • What Passage Of House Crypto Bill Could Mean For Industry

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    While the prospects of the Financial Innovation and Technology for the 21st Century Act, which recently passed the House in a bipartisan fashion, becoming law remain murky, the manner of its passage may give crypto markets a real cause for hope, say Neel Maitra and Dale Beggs at Dechert.

  • What 2 Rulings On Standing Mean For DEI Litigation

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    Recent federal court decisions in the Fearless Fund and Hello Alice cases shed new light on the ongoing wave of challenges to diversity, equity and inclusion initiatives, with opposite conclusions on whether the plaintiffs had standing to sue, say attorneys at Moore & Van Allen.

  • Series

    Skiing And Surfing Make Me A Better Lawyer

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    The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.

  • Advisers Can Avoid Gaps In SEC Marketing Rule Compliance

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    A recent risk alert from the U.S. Securities and Exchange Commission and the enforcement history of the marketing rule indicate that advisers have encountered persistent difficulties in achieving compliance — but there are steps advisers can take to mitigate risks of violations, say Scott Moss and Jimmy Kang at Lowenstein Sandler.

  • Class Actions At The Circuit Courts: June Lessons

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    In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers two recent decisions from the Third and Tenth Circuits, and identifies practice tips around class action settlements and standing in securities litigation.

  • Unpacking The Circuit Split Over A Federal Atty Fee Rule

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    Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.

  • Arbitration Implications Of High Court Coinbase Ruling

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    The U.S. Supreme Court's recent Coinbase v. Suski ruling not only reaffirmed the long-standing principle that arbitration is a matter of contract, but also established new and more general principles concerning the courts' jurisdiction to decide challenges to delegation clauses and the severability rule, say Tamar Meshel at the University of Alberta.

  • Banks As Crypto Custodians May Rest On SEC Bulletin's Fate

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    Banks' willingness to accept custody of cryptocurrency assets, like the exchange-traded funds approved by the U.S. Securities and Exchange Commission this spring, may hinge on whether a 2022 SEC accounting bulletin directing banks to track customers' digital assets on their balance sheets can survive Congress' attempts to strike it down, says Roger Chari at Duane Morris.

  • After A Brief Hiccup, The 'Rocket Docket' Soars Back To No. 1

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    The Eastern District of Virginia’s precipitous 2022 fall from its storied rocket docket status appears to have been a temporary aberration, as recent statistics reveal that the court is once again back on top as the fastest federal civil trial court in the nation, says Robert Tata at Hunton.

  • Takeaways From Regulators' £61.6M Citigroup Trading Fine

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    Following the Financial Conduct Authority and Prudential Regulation Authority’s recent significant fining of Citigroup for its catastrophic trading error, and with more enforcement likely, institutions should update their controls and ensure system warnings do not become routine and therefore disregarded, says Abdulali Jiwaji at Signature Litigation.

  • Big Banks Face Potential Broader Recovery Plan Rules

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    The Office of the Comptroller of the Currency's recent call for potentially subjecting more banks to recovery planning standards would represent a significant expansion of the scope of the recovery guidelines, and banks that would be affected should assess whether they’re prepared, say attorneys at Debevoise.

  • Practical Private Equity Lessons From 2 Delaware Deals

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    A pair of Delaware Chancery Court cases remind private equity sponsors that specificity is crucial through the lens of deal certainty, particularly around closing conditions and agreement sections of acquisition agreements, say Robert Rizzo and Larissa Lucas at Weil Gotshal and William Lafferty at Morris Nichols.

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