Asset Management

  • February 09, 2024

    Merrill Customer Sues Over Lax WhatsApp Supervision

    A Merrill customer has filed suit against two of the broker-dealer's branch managers for allegedly failing to supervise advisers who used WhatsApp to communicate about risky options strategies that ultimately wiped out his account.

  • February 09, 2024

    DC Circ. Affirms Union Pension Fund Can Dodge Arb. Awards

    The D.C. Circuit on Friday affirmed two employers' losses in two suits brought by a pension fund for the International Association of Machinists, finding an actuary can set assumptions for a measurement date after the fact based on information that was available as of that date.

  • February 09, 2024

    SafeMoon CEO Finally Gets Bail In $300M Crypto Fraud Case

    A New York federal judge on Friday agreed to let the CEO of bankrupt cryptocurrency asset company SafeMoon out on bail, after a monthslong, multijurisdictional tug of war over fears he would flee rather than face trial over accusations that he bilked investors out of $300 million.

  • February 09, 2024

    SEC's 'Orwellian' Trade Database Is Unlawful, 11th Circ. Told

    Citadel Securities LLC and the American Securities Association have laid out their objections to a U.S. Securities and Exchange Commission directive that requires brokerage firms to fund the buildup of a database known as the consolidated audit trail, telling the Eleventh Circuit that the tool created an "Orwellian surveillance regime" that puts American investors at risk of being hacked.

  • February 09, 2024

    Seattle YWCA Says BNY Mellon Mismanaged $20M Fund

    A Seattle-area chapter of the nonprofit Young Women's Christian Association has sued BNY Mellon alleging the bank's mismanagement of an investment portfolio caused $1.4 million in losses for the organization.

  • February 09, 2024

    Consulting Co. Can't Sink Class Challenge To 401(k) Roster

    A Washington federal judge refused to grant a win to a consulting company in a class action brought by a former worker who accused it of costing its 401(k) millions of dollars by offering risky investment options, teeing up the suit to head to trial in April.

  • February 09, 2024

    1st Circ. Wipes Out German's $3M Penalty In SEC Fraud Case

    The First Circuit on Friday ruled that a German citizen does not have to pay back $3.3 million in allegedly laundered funds sought by the U.S. Securities and Exchange Commission, reversing a lower court's order and finding that American courts have no basis for sanctioning the foreign national.

  • February 09, 2024

    2nd Circ. Revives Investors' Mexican Bond-Rigging Claims

    The Second Circuit on Friday reinstated U.S. investor claims accusing major banks of a yearslong collusion to rig Mexican government bond prices, saying a New York district court wrongly found it didn't have jurisdiction over the matter.

  • February 09, 2024

    Apache Investors Get Class Cert. In Suit Over Natural Gas Play

    A group of Apache Corp. investors received class certification in their suit against the Houston oil and gas company on Friday, with a Texas magistrate judge saying there's enough evidence the company misrepresented a specific natural gas play to go forward with a lawsuit.

  • February 09, 2024

    Healthcare-Focused SPAC Hits The Market After $160M IPO

    Blank-check company Helix Acquisition Corp. II hit the public markets on Friday following its upsized initial public offering, which raised $160 million by offering 16 million shares at a price of $10 apiece.

  • February 09, 2024

    Simpson Thacher, Cleary Steer Mexican Grocer's $589M IPO

    Mexican grocery chain BBB Foods Inc.'s shares rallied Friday after the company completed a $589 million initial public offering, represented by Simpson Thacher & Bartlett LLP and underwriters counsel Cleary Gottlieb Steen & Hamilton LLP, thanks to strong appetite from investors.

  • February 09, 2024

    Activist Says CEO's Family Is Problem For Chef's Warehouse

    Specialty foods company The Chef's Warehouse has become the latest target of activist investor Legion Partners, which is asking the company's shareholders to nominate four new board members to turn around "chronic underperformance" stemming from the board's family connections.

  • February 09, 2024

    SF Atty Faces Misconduct Charges Over $1.33M In Trust Fees

    A San Francisco attorney is facing disciplinary charges for allegedly overcharging a trust account client who struggled with mental health and other personal issues, the State Bar of California's Office of Chief Trial Counsel announced Friday.

  • February 09, 2024

    SEC To Collect $81M In Fines In Latest Texting Probe Cases

    The U.S. Securities and Exchange Commission announced Friday that it has secured agreements to pay more than $81 million in fines from 16 firms over their employees' use of personal messaging apps to do business, though the agency added that one set of firms ended up paying much less for having self-reported the violations.

  • February 09, 2024

    What To Know About 'Novel' Johnson & Johnson ERISA Suit

    A new lawsuit from a Johnson & Johnson worker claims the company violated federal law by letting pharmacy benefit manager Express Scripts overcharge health plan participants for drugs, potentially signaling that fee litigation under the Employee Retirement Income Security Act is shifting focus from retirement savings to health benefits, attorneys say.

  • February 09, 2024

    Fund Formation Group Of The Year: Simpson Thacher

    Simpson Thacher & Bartlett LLP's fund formation practice advised private equity behemoth Blackstone in 2023 on a $30.4 billion successor real estate fund, one of the milestones earning the group a spot in Law360's Fund Formation Groups of the Year.

  • February 09, 2024

    CORRECTED: 11th Circ. Says Guilty Plea Sinks Appeal In Investment Fraud Case

    The Eleventh Circuit declined to take up the appeal of a man who pled guilty to wire fraud after being accused of stealing investment funds from a wealthy widow, ruling that his plea was unconditional. Correction: A previous version of this story misidentified the defendant and had an incorrect case number and counsel information. The errors have been corrected.

  • February 09, 2024

    NY AG Seeks $2B More From Genesis Parent Co. In Fraud Suit

    New York's attorney general filed an expanded complaint Friday accusing Digital Currency Group and other cryptocurrency companies of defrauding customers out of more than $3 billion, shortly after reaching a settlement with its subsidiary Genesis Global Capital in its bankruptcy case.

  • February 09, 2024

    Taxation With Representation: Sullivan & Cromwell, Kirkland

    In this week's Taxation With Representation, California Resources Corp. acquires Aera Energy, ZeroFox Holdings goes private, and Acerinox purchases Haynes International.

  • February 08, 2024

    High Court Ruling Solidifies SOX Whistleblower Protections

    The U.S. Supreme Court's unanimous decision Thursday in favor of a UBS whistleblower has solidified whistleblower protections across a wide range of industries, with one attorney saying the ruling has made the Sarbanes-Oxley Act the most pro-employee labor law in the country.

  • February 08, 2024

    Fed, OCC Urged To Create 'Unaffiliated' Director Rule For Banks

    The Federal Reserve Board and Office of the Comptroller of the Currency were petitioned Thursday to issue new rules mandating that large banks appoint at least some outside, independent directors to their boards as a safeguard against conflicted decision-making within big corporate families.

  • February 08, 2024

    SEC Fights Hedge Fund Priest's Fee Bid After Mixed Verdict

    The U.S. Securities and Exchange Commission has urged a Massachusetts federal judge not to grant more than $1.7 million in attorney fees to a Greek Orthodox priest and hedge fund manager who fended off some of the agency's claims at trial, saying there is no justification for giving "adjudicated fraudsters money for their legal fees."

  • February 08, 2024

    5th Circ. Skeptical Of Gatekeeper Clause In Highland Ch. 11

    A Fifth Circuit panel on Thursday appeared to balk at a provision in financially troubled investment firm Highland Capital Management LP's reorganization plan that requires court approval for parties to bring claims against the estate, suggesting the measure was an unnecessarily blunt instrument to prevent frivolous litigation.

  • February 08, 2024

    M&T Bank's Freeze 'Crumbled' Fla. Law Firm, $1.5M Suit Says

    A Florida law firm has sued M&T Bank for $1.5 million in Tampa federal court over allegations that the bank "crumbled" the firm's business by unreasonably restricting its trust account during a recent chargeback dispute.

  • February 08, 2024

    SEC, CFTC Jointly Demand More Hedge-Fund Disclosures

    The U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission jointly passed rules Thursday requiring additional disclosures from hedge funds and other private fund advisers, aimed at improving market stability and transparency, despite dissent from Republican commissioners of both agencies who say the requirements are overreaching.

Expert Analysis

  • Industry Must Elevate Native American Women Attys' Stories

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    The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.

  • A Breakdown Of The OCC's New Venture Lending Pointers

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    In light of the Office of the Comptroller of the Currency's recent bulletin outlining venture lending risks for banks, Matt Schwartz and Jeffrey Hare at DLA Piper highlight key considerations for both lenders and venture-backed companies seeking or maintaining loans from OCC-regulated national banks and federal thrifts.

  • Crypto, Audit Cases Dominate SEC's Enforcement Focus In '23

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    Attorneys at Covington examine the U.S. Securities and Exchange Commission's fiscal year 2023 enforcement results, which marked the SEC's third consecutive year of increasing enforcement activity since Chair Gary Gensler took over in 2021 — this time driven by a focus on combating cryptocurrency-related scams and enforcing recordkeeping compliance.

  • Understanding Discovery Obligations In Era Of Generative AI

    Excerpt from Practical Guidance
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    Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.

  • 5 Steps To Meet CFTC Remediation Expectations

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    After the U.S. Commodity Futures Trading Commission recently updated its enforcement policies, organizations should implement elements of effective remediation — from root-cause analyses to design effectiveness tests — to mitigate the risk of penalties and third-party oversight, say Jonny Frank and Chris Hoyle at StoneTurn Group.

  • An Informed Guide To Mastering Retirement Plan Forfeitures

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    When considering how to allocate departing retirement plan participants’ forfeitures, sponsors should consider recently filed lawsuits that allege Employee Retirement Income Security Act violations for using such funds to offset employer contributions, as well as proposed IRS guidance concerning how and when they must be used, says Eric Gregory at Dickinson Wright.

  • Asserting 'Presence-Of-Counsel' Defense In Securities Trials

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    As illustrated by the fraud trial of FTX founder Sam Bankman-Fried, defense attorneys in securities trials might consider arguing that counsel had some involvement in the conduct at issue — if the more formal advice-of-counsel defense is unavailable and circumstances allow for a privilege waiver, say Joseph Dever and Matthew Elkin at Cozen O'Connor.

  • Series

    ESG Around The World: Mexico

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    ESG has yet to become part of the DNA of the Mexican business model, but huge strides are being made in that direction, as more stakeholders demand that companies adopt, at the least, a modicum of sustainability commitments and demonstrate how they will meet them, says Carlos Escoto at Galicia Abogados.

  • Crypto Has Democratized Trading In Bankruptcy Claims

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    Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.

  • The Case For Post-Bar Clerk Training Programs At Law Firms

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    In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.

  • What SEC Retreat In Ripple Case Means For Crypto Regulation

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    The U.S. Securities and Exchange Commission has chosen a regulation-by-enforcement approach to cryptocurrency policy rather than through rulemaking, but the agency's recently aborted enforcement action against two Ripple Labs executives for alleged securities law violations demonstrates the limits of this piecemeal tactic, says Keith Blackman at Bracewell.

  • SEC Whistleblower Action Spotlights Risks For Private Cos.

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    The U.S. Securities and Exchange Commission’s recent whistleblower action against Monolith Resources holds important implications for private companies, who could face unprecedented regulatory scrutiny amid the agency's efforts to beef up environmental, social and governance reporting and enforcement, say attorneys at Wiley.

  • Attorneys Have An Ethical Duty To Protect The Judiciary

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    The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.

  • DOL's Retirement Security Rule Muddies Definitional Waters

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    The latest proposal changing how the Employee Retirement Income Security Act defines "investment advice," which the White House framed as a narrowly tailored regulation, would implement a sweeping regulatory overhaul that changes how the retirement services industry interacts with plans, participants and account owners, says Michael Kreps at Groom Law Group.

  • A Deep Dive Into FSOC's Expansion Of Nonbank Oversight

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    The Financial Stability Oversight Council's new nonbank guidance, designed to provide the council with added flexibility in risk response, not only modifies the process for designating nonbanks as systemically important institutions, but also sends a clear signal that the FSOC may assume a more active role in addressing financial stability risks across the economy, say attorneys at Simpson Thacher.

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