A court-appointed receiver and defendants in the U.S. Securities and Exchange Commission's case against crypto project Debt Box requested Wednesday that the regulator pay roughly $1.8 million in sanctions to cover the fees incurred by an allegedly ill-gotten temporary restraining order and receivership.
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FRIDAY, APRIL 19, 2024 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

SEC Faces $1.8M Atty Fee Bid After Sanctions In Crypto Case

By Aislinn Keely

A court-appointed receiver and defendants in the U.S. Securities and Exchange Commission's case against crypto project Debt Box requested Wednesday that the regulator pay roughly $1.8 million in sanctions to cover the fees incurred by an allegedly ill-gotten temporary restraining order and receivership.

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Crypto Trader Convicted Of $110M Mango Markets Scam

By Pete Brush

A Manhattan federal jury found a cryptocurrency trader guilty Thursday of illegally taking $110 million out of Mango Markets by inflating the value of its tokens, then borrowing against that valuation to suck money out of the decentralized exchange.

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Ex-Autonomy CEO Wanted Whistleblower Fired, Ex-GC Says

By Bonnie Eslinger

Former Autonomy CEO Michael Lynch thought a finance department whistleblower was "trying to destroy the company" and wanted him fired, the software company's former U.S. general counsel testified Thursday in a criminal fraud trial over claims Lynch conned HP into buying the British company at an inflated price of $11.7 billion.

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Perkins Coie 'Beating A Dead Horse' To Duck Case, Judge Says

By Celeste Bott

An Illinois judge on Thursday refused to reconsider his decision to let an investment company move ahead with its lawsuit accusing Perkins Coie of helping the company's former investment manager steal $12 million and opted not to certify questions raised by the firm about his reasoning to the Illinois Supreme Court.

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Chancery OKs Case Lead For Blue Bell Creameries Suit

By Jeff Montgomery

A Delaware vice chancellor on Thursday restored a Blue Bell Creameries Inc. stockholder's widow as lead plaintiff in a derivative suit seeking to hold directors and officers of the ice cream company accountable for deadly food-safety oversight failures in 2015.

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SEC Exams Division Flags Misleading Claims In Adviser Ads

By Sarah Jarvis

Investment advisers are publishing various misrepresentations and omissions in marketing materials, according to a recent risk alert from the U.S. Securities and Exchange Commission's examinations division that flagged a litany of compliance issues with the agency's marketing rule.

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POLICY & REGULATION

Red States Back Call To Overturn Nasdaq Diversity Rule

By Katryna Perera

Utah and 23 other Republican-led states have filed an amicus brief asking the full Fifth Circuit to vacate a Nasdaq board diversity rule and declare it unconstitutional, saying the U.S. Securities and Exchange Commission, which approved the rule, is "affirmatively perpetuating" race-based discrimination instead of eliminating it.

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COMPLIANCE

Senate Dems Question 4 Biggest Banks Over Fraud Controls

By Aislinn Keely

Two Democratic senators have asked the nation's four largest banks to share their systems to combat wire fraud and protect consumers from the fallout of unauthorized transfers.

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WHITE COLLAR

Ex-BigLaw Atty Can Stay Free During OneCoin Fraud Appeal

By Henrik Nilsson

A Manhattan federal judge Thursday granted a former Locke Lord LLP partner's motion for bail pending appeal of his 10-year prison sentence after he was found guilty of laundering around $400 million in proceeds from the global OneCoin cryptocurrency scam, saying he does not pose a flight risk given his medical conditions.

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Defense Paints Friend As Snitch In Ex-Ecuador Official's Trial

By David Minsky

The defense attorney for former Ecuador comptroller Carlos Ramon Polit Faggioni painted a reinsurer who testified Wednesday against the official as a snitch and turncoat during a federal money laundering trial in Miami, saying he effectively became a government agent to get information that could be used against his friend.

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DELAWARE

Investors In Failed Manila Casino Deal Sue For SPAC Shares

By Leslie A. Pappas

Shareholders in a blank-check company that failed to take a Philippines casino public have intervened in two Delaware Chancery Court lawsuits to recoup their failed investments, with one seeking to litigate damages from the busted $2.6 billion deal and the other pushing for the company's liquidation.

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INVESTOR ACTIONS

Pomerantz To Rep Investors In AT&T Lead Cable Class Action

By Sydney Price

A New Jersey federal judge approved Pomerantz LLP as the lead counsel for a proposed investor class action alleging AT&T lied about its effort to be environmentally conscious while contributing to the installation of toxic lead cables, with the New York City Public Pension Funds serving as lead plaintiff.

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Doximity Faces Investor Suit Over Slashed Revenue Hopes

By Emilie Ruscoe

Medical professional networking service Doximity Inc., likened to "LinkedIn for doctors," and two of its executives are facing a proposed class action alleging it hurt investors by concealing slowing sales.

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Satellite Broadband Co. Faces Investor Suit Over Project Delay

By Sydney Price

Satellite manufacturer AST SpaceMobile Inc. was hit with an investor suit accusing it of concealing supply issues that prevented the timely launch of a satellite fleet intended to provide broadband services, leading to a 24% share price decline when the issues were eventually disclosed.

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Wife Of Alleged $3B TelexFree Scammer 'Hounded' In MDL

By Julie Manganis

The estranged wife of alleged TelexFree Ponzi schemer Carlos Wanzeler said Thursday that plaintiffs in a decade-old civil suit are needlessly "hounding" her for information they already have and urged a Massachusetts federal court to free her from the "litigation purgatory." 

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ERISA & BENEFITS

Pharma Ex-Exec Can't Revive $12M Underpayment Suit in US

By Jonathan Capriel

A Manhattan federal judge has refused to rethink her decision tossing a $12 million suit accusing Altum Pharmaceuticals Inc. and its cannabis-focused parent company, BetterLife Pharma Inc., of stock dilution and underpaying a former executive chairman of the board of directors, saying the claims are better suited for Canadian courts.

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DEALS LITIGATION

Hedge Fund Says Its $100M Award Over Peru Bonds Is Valid

By Joyce Hanson

A hedge fund has asked a D.C. federal judge not to throw out its suit seeking to enforce a $100 million arbitral award it secured over Peru's valuation of old government bonds, saying the country wants to relitigate claims that were already rejected by the arbitrators.

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PEOPLE

Crowell & Moring Adds Corporate Partners From Neal Gerber

By Rose Krebs

Crowell & Moring LLP has added two longtime partners and practice group leaders from Chicago-based firm Neal Gerber & Eisenberg LLP to help bolster its corporate, mergers and acquisitions and capital markets services and expand its services in the Windy City.

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EXPERT ANALYSIS

Corp. Transparency Act Could Survive 11th Circ. Several Ways

If the Eleventh Circuit upholds an Alabama federal court’s injunction against the Corporate Transparency Act, the anti-money laundering law could persist as a narrower version that could moot some constitutional challenges, but these remedies would likely generate additional regulatory or statutory ambiguities that would result in further litigation, say attorneys at Perkins Coie.

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What FERC's Disclosure Demands Mean For Cos., Investors

Two recent Federal Energy Regulatory Commission orders reflect the commission's increasingly meticulous approach to reviewing corporate structures in applications for approval of proposed consolidations, acquisitions or changes in control — putting the onus on the regulated community to track and comply with ever-more-burdensome disclosure requirements, say attorneys at Willkie.

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LEGAL INDUSTRY

Potter Anderson Raises Associate Starting Salary To $210K

By James Boyle

In a bid to remain a competitive destination for young attorneys, Wilmington, Delaware-based firm Potter Anderson & Corroon LLP has increased the starting salary for associate attorneys to $210,000 from $190,000, effective immediately.

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Cohen Seglias Suit Says DOD Must Unblock Its Web Domain

By Emily Sawicki

Cohen Seglias Pallas Greenhall & Furman PC has sued a communications arm of the Department of Defense over claims a government software system mistakenly flagged the firm's web domain as malware, asking the agency to clear a "bureaucratic quagmire" and lift the block keeping DOD officials from contacting its lawyers.

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Antitrust Case Judge Reveals Husband's Ties With Apple

By George Woolston

A New Jersey federal magistrate judge assigned to the U.S. Department of Justice's recent iPhone antitrust case disclosed on Friday her husband has ties to Apple, but told the parties she does not believe she needs to recuse herself.

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Gibbons Atty Won't Testify In Menendez Bribery Trial

By Carla Baranauckas

A Gibbons PC lawyer who is counsel for one of U.S. Sen. Robert Menendez's co-defendants in his federal bribery trial set to start next month will not be called to the witness stand after defense lawyers and prosecutors agreed Friday to a stipulation about the facts that would have been part of his testimony.

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Quinn Emanuel Fights Sanctions Bid Over Musk Deposition

By Jake Maher

Quinn Emanuel Urquhart & Sullivan LLP protested a move by a man suing Elon Musk for defamation to sanction partner Alex Spiro for his conduct during a deposition of Musk, telling a Texas state court Spiro was simply speaking up to protect Musk's interests and that the plaintiff was taking part in "school-yard antics."

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Trump's Trial Is Unprecedented. Attys On Juries? Not So Much

By Cara Salvatore

With two BigLaw attorneys tapped for the jury box in Donald Trump's first-in-history criminal case, Law360 spoke to trial vets who said their own experience in this tables-turned situation shows lawyers can make for highly engaged jurors under the right circumstances.

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Man Lights Himself On Fire Near Trump Trial Courthouse

By Frank Runyeon, Rachel Scharf and Stewart Bishop

A man suffered critical injuries Friday after setting himself on fire in a park across the street from the Manhattan courthouse where former President Donald Trump's criminal trial is taking place.

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The Week In Trump: NY Trial And A High Court Date Loom

By Phillip Bantz

Despite a few snags, jury selection for Donald Trump's hush money trial in Manhattan unfolded relatively quickly, clearing the way for opening statements Monday in the historic case as the former president prepped for a U.S. Supreme Court debate over his supposed immunity.

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Paxton Can't Duck Ethics Suit Over 2020 Election Challenge

By Jack Karp

Texas Attorney General Ken Paxton must face the State Bar of Texas' ethics lawsuit over his attempts to reverse the results of the 2020 presidential election since the suit is against Paxton in his personal capacity and does not violate the separation of powers, a Texas appellate court has ruled.

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Analysis

Climate Lawsuits Aren't The SEC's Only Legal Headache

By Jessica Corso

The U.S. Securities and Exchange Commission has been grabbing headlines over the past couple of months as it attempts to fend off a host of lawsuits challenging recently enacted climate disclosure rules, but the agency has been no stranger to litigation brought by business groups opposing everything from new stock buyback disclosures to the agency's growing private fund oversight to its hands-off approach to crypto rule writing. 

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Lawyer Too Late To Collect Fees From Aretha Franklin Estate

By Emily Sawicki

Michigan appellate judges have upheld the denial of a bid for attorney fees for a lawyer who complained he was not properly paid for work he did for the late "Motown legend and Queen of Soul, Aretha Franklin," as the court described her, with judges determining the claims were time-barred.

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Law360's Legal Lions Of The Week

By Kevin Penton

Winston & Strawn LLP and attorney Richard Reinthaler lead this week's U.S. Supreme Court-dominated edition of Law360 Legal Lions, after the high court ruled that a corporation's failure to disclose certain information about its future business risks cannot, under certain circumstances, be the basis of a private securities fraud claim.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

Tesla is thumbing its nose at the Delaware Chancery Court by again asking its shareholders to approve a $55 billion pay package for Elon Musk — essentially the same pay package the court voided in January. And British telecom giant BT Group will reward two law firms for successful diversity and AI programs with automatic spots on its pared down legal panel. These are some of the stories in corporate legal news you may have missed in the past week.

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

By Max Austin

This past week in London has seen U.K. holiday resort chain Butlins target Aviva and a huddle of insurers, Meta and WhatsApp tackle a patents claim by telecommunications company Semitel, an ongoing construction dispute between Essex County Council and Balfour Beatty, and Formycon AG hit a pharmaceutical company for infringing medical products. Here, Law360 looks at these and other new claims in the U.K.

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LAW FIRMS IN TODAY'S NEWS

Ahmad Zavitsanos

Aldous PLLC

Allen & Overy

BDB Pitmans LLP

Baker Botts

Baker McKenzie

Bird & Bird

Bird Marella

Bishop & Sewell

Bissinger Oshman

Black Srebnick

Blaser Mills

Bonsignore Trial Lawyers

Boyden Gray

Brodies LLP

Buchalter APC

Burges Salmon

Burns Charest

Chimicles Schwartz

Clark Hill

Clarke Willmott

Clifford Chance

Clyde & Co

Clyde Snow

Coffey Burlington

Cohen Seglias

Cohne Kinghorn

Covington & Burling

Cravath Swaine

Crowell & Moring

Curtis Mallet-Prevost

Davis Wright Tremaine LLP

Debevoise & Plimpton

El Dabe Ritter

Eversheds Sutherland

Farrar & Ball

Fenchurch Law

Flood & Flood

Freshfields

Gibbons PC

Glancy Prongay

Gordons LLP

Greenberg Traurig

Gupta Wessler

Hamlins LLP

Herbert Smith Freehills

Herrick Feinstein

Hill Dickinson

Hogan Lovells

Holland & Knight

Holtzman Vogel

Horwich Farrelly

Irvine & Conner

Jones Day

Kendall Law Group PLLC

Kesler & Rust

Kessler Topaz

Kirkland & Ellis

Kunzler Bean

Labaton Keller

Lewis Silkin

Lichten & Liss Riordan

Locke Lord

Loeb & Loeb

Lowenstein Sandler

McCarney Law

McCarter & English

McCollom D'Emilio

McDermott Will & Emery

McNeill Von Maack

Meluney Alleman

Milbank LLP

Miller Shakman

Mishcon de Reya

Morris James

Morris Kandinov

Morris Nichols

Morrison Cohen

Neal Gerber

Norton Rose

Paul Hastings

Perkins Coie

Pinsent Masons

Polsinelli PC

Pomerantz LLP

Potter Anderson

Potter Clarkson

Quinn Emanuel

Richards Layton

Schertler Onorato

Seyfarth Shaw

Shakespeare Martineau

Sheppard Mullin

Shoosmiths LLP

Stephenson Harwood

Steptoe LLP

Stevens & Bolton

Tabet DiVito

Talkin Muccigrosso

Walsh Pizzi

Waymaker LLP

Weil Gotshal

Willkie Farr

Winston & Strawn

Withersworldwide

Young Conaway

de Castro PC

gunnercooke LLP

COMPANIES IN TODAY'S NEWS

A.P. Moller-Maersk

AT&T Inc.

AbbVie Inc.

Aldi GmbH & Co. KG

Amazon.com Inc.

American Bar Association

Apple Inc.

Aviva SA

BDO LLP

BT Group PLC

Balfour Beatty PLC

Bank of America Corp.

Berkshire Hathaway Inc.

Blue Bell Creameries LP

Bridgepoint Advisers Ltd.

Cash App

Cisco Systems Inc.

Citadel Securities LLC

Coinbase Global Inc.

Corporate Legal Operations Consortium

Deloitte Touche Tohmatsu Ltd.

Deutsche Post

Early Warning Services LLC

Financial Industry Regulatory Authority Inc.

Flowers Foods Inc.

George Washington University

Google LLC

Gramercy Funds Management LLC

HP Inc.

HSBC Holdings PLC

Hartree Partners LP

Hearst Corp.

Hiscox Ltd.

Instagram Inc.

Institute for Justice

International Centre for Settlement of Investment Disputes

International Legal Finance Association

Intuit Inc.

Investec PLC

JPMorgan Chase & Co.

Lincoln National Corp.

LinkedIn Corp.

Macquarie Infrastructure Corp.

Mercedes-Benz USA LLC

Merck & Co. Inc.

Merck KGaA

Meta Platforms Inc.

Microsoft Corp.

NASDAQ Inc.

National Association for Law Placement Inc.

National Association of Manufacturers

National Grid PLC

Netflix Inc.

New Civil Liberties Alliance

Oaktree Capital Management

Odebrecht SA

Okada Manila

Pacific Legal Foundation

Packaging Corp. of America

RenaissanceRe Holdings Ltd.

Sierra Club

Sony Music Entertainment Inc.

Spotify Technology SA

State Bar of Texas

State Farm Mutual Automobile Insurance Co.

TelexFree LLC

Tesla Inc.

The Charles Schwab Corp.

TransAlta Corporation

Twitter Inc.

U.S. Chamber of Commerce

VTB Capital PLC

Venmo LLC

Vistra Corp.

Vodafone Group PLC

Walmart Inc.

Walt Disney Parks & Resorts Worldwide Inc.

Wells Fargo & Co.

YouTube Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Armed Services Board of Contract Appeals

Defense Information Systems Agency

Delaware Court of Chancery

Federal Bureau of Investigation

Federal Energy Regulatory Commission

Financial Crimes Enforcement Network

Illinois Supreme Court

Library of Congress

Los Angeles Superior Court

New Jersey Supreme Court

Office of the Attorney General for the District of Columbia

Texas Judicial Branch

Texas Supreme Court

U.S. Army

U.S. Army Corps of Engineers

U.S. Attorney's Office

U.S. Attorney's Office for the District of New Jersey

U.S. Attorney's Office for the Northern District of California

U.S. Attorney's Office for the Southern District of Florida

U.S. Attorney's Office for the Southern District of New York

U.S. Court of Appeals for the Eleventh Circuit

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the Sixth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Agriculture

U.S. Department of Justice

U.S. Department of the Treasury

U.S. District Court for the District of Columbia

U.S. District Court for the District of Maine

U.S. District Court for the District of Massachusetts

U.S. District Court for the District of New Jersey

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Texas

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. District Court for the Western District of Michigan

U.S. District Court for the Western District of Texas

U.S. Patent and Trademark Office

U.S. Postal Service

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the Northern District of Alabama

United States District Court for the Northern District of Ohio

United States District Court for the Northern District of West Virginia