Securities

  • February 16, 2024

    Old Rules Face New Risks As Justices Hear Truck Stop's Case

    A North Dakota truck stop's long-haul quest to save on bank card fees reaches the U.S. Supreme Court on Tuesday in a case that could hand businesses a double-edged sword with which to hack away at even decades-old regulations.

  • February 16, 2024

    Feds Charge Ex-Commodities Trader With $3.7M Scheme

    A former commodities trader has been charged with misappropriating $3.7 million from would-be investors using misrepresentations that he later repeated to undercover agents, New Jersey federal prosecutors said Friday.

  • February 16, 2024

    JPMorgan Faces $350M Fine Over Trade Reporting Gaps

    JPMorgan Chase & Co. revealed in a U.S. Securities and Exchange Commission filing Friday that it expects to pay $350 million in civil penalties to settle claims it failed to enter certain trading data into market surveillance systems.

  • February 16, 2024

    6th Circ. Rejects FirstEnergy Objector's Appeal In $180M Case

    The Sixth Circuit on Friday rejected an appeal from a FirstEnergy investor who was holding up a $180 million settlement in a derivative suit seeking to hold the utility company responsible for its involvement in a $1 billion bribery scandal.

  • February 16, 2024

    Athira Pharma Investors Win OK Of $10M Deal On Second Try

    Over 30,000 Athira Pharma investors have scored preliminary approval of a $10 million settlement over claims its former CEO manipulated studies relating to an Alzheimer's drug, five months after a Washington federal judge rejected their first bid but let them try again to address concerns over conflicts and equitable treatment.

  • February 16, 2024

    NYCB Brass Face Investor Suit Over Signature Bank Takeover

    Executives and directors of New York Community Bank were named in a new shareholder derivative suit, adding to the growing list of litigation the bank and its leaders are facing over the fallout from its acquisition of Signature Bank's assets last year.

  • February 16, 2024

    VanEck Pays SEC $1.75M Over Influencer Role In ETF Launch

    Financial product issuer VanEck agreed to pay the U.S. Securities and Exchange Commission a $1.75 million penalty over allegations it failed to disclose how it paid influencer Dave Portnoy to boost the launch of its social media-tied fund to the product's board.

  • February 16, 2024

    Oat Milk Co. Settles Greenwashing Investor Suit For $9.25M

    Investors suing Swedish alternative milk manufacturer Oatly asked a New York federal judge Friday to preliminarily approve a $9.25 million deal to settle claims that the company pitched its business as more environmentally friendly than it is.

  • February 16, 2024

    Cavco Exec's Insider Trading Case Paused Pending SEC Deal

    An Arizona federal judge on Friday paused the U.S. Securities and Exchange Commission's insider trading case against a former executive from modular home manufacturer Cavco Industries Inc. after the two sides reached a settlement in principle on the agency's 2017 claims.

  • February 16, 2024

    $520K Deal Could End ICO Fraud Claims After Earlier $6M Deal

    Companies accused of holding an unregistered offering of digital assets and some of their current and former employees have received an initial nod for a $520,000 deal to end remaining claims in investor litigation after earlier reaching a $6 million partial deal.

  • February 16, 2024

    Catching Up With Delaware's Chancery Court

    News broke last week that Delaware's Court of Chancery will say goodbye to its current longest-serving jurist, a development that quickly overshadowed a busy week of new merger and board disputes, fee rulings, settlements, and books-and-records demands.

  • February 16, 2024

    2nd Circ. Shows How To Shut Down ERISA Self-Dealing Suits

    A recent Second Circuit decision affirming Goldman Sachs' win in a class action that took aim at proprietary funds in the bank's 401(k) plan provides an employer-side "road map" for staving off or defeating legal challenges to allegedly subpar in-house investment options, attorneys say.

  • February 16, 2024

    Malware Schemer 'Tank' Pleads Guilty To Stealing Millions

    Accused hacker group leader Vyacheslav Igorevich Penchukov, known online as "Tank," pled guilty in Nebraska federal court to charges stemming from two malware schemes Thursday.

  • February 16, 2024

    Chamberlain Hrdlicka Adds Corporate Attorney In Philly

    A seasoned transactions attorney has returned to private practice after more than 10 years as in-house counsel and joined Chamberlain Hrdlicka White Williams & Aughtry's Philadelphia office.

  • February 16, 2024

    Baker Donelson Won't Owe Profits To Ponzi Scheme Victims

    A Mississippi federal judge has limited certain damages Baker Donelson Bearman Caldwell & Berkowitz PC may have to pay in a federal receiver's suit claiming the firm allowed a Ponzi scheme to unfold in one of its offices, but left the door open for other types of damages.

  • February 16, 2024

    Paxton Prosecutor Steps Down After Row Over Pretrial Deal

    One of two appointed prosecutors overseeing a securities fraud case against Texas Attorney General Ken Paxton told a state court judge Friday that he is stepping down from the case, citing a disagreement over whether the state's chief legal officer should be allowed to resolve the charges through pretrial intervention.

  • February 16, 2024

    Ex-Staffing Co. Execs Plead Guilty In $70M Bank Fraud

    Two brothers who ran a staffing firm have pled guilty to charges they defrauded lenders and investors of $70 million by fraudulently boosting their company's revenue, Manhattan federal prosecutors said.

  • February 16, 2024

    TIAA Unit To Pay SEC $2.2M In Regulation Best Interest Case

    The U.S. Securities and Exchange Commission on Friday announced that a brokerage subsidiary of financial services firm Teachers Insurance and Annuity Association of America has agreed to pay $2.2 million to settle allegations that it failed to steer investors toward lower-cost products in violation of Regulation Best Interest.

  • February 15, 2024

    To Catch Crypto Crime, Look Offshore, Lawmakers Told

    Former regulators and prosecutors now employed by crypto-focused firms told U.S. House lawmakers Thursday that law enforcement needs additional power to go after offshore exchanges and other points where U.S. dollars enter and exit the digital asset economy in order to fight illicit finance in crypto.

  • February 15, 2024

    FINRA Fines Morgan Stanley $1.6M In Muni Securities Case

    Morgan Stanley Smith Barney LLC has been fined $1.6 million by the Financial Industry Regulatory Authority for alleged compliance and supervisory failures related to municipal securities transactions, in what the self-regulatory organization described as its first disciplinary case related to certain close-out requirements.

  • February 15, 2024

    'Body Sculpting' Device Co. Faces Investor Suit Over Pricing

    Cosmetic medical device maker InMode Ltd. and certain members of its brass face claims in California federal court that they hurt investors, after trading prices for InMode shares sank because they allegedly misrepresented its product pricing and its U.S. Food and Drug Administration regulatory compliance.

  • February 15, 2024

    SpaceX Heads To Texas After Musk's Tesla Pay Package Axed

    Elon Musk announced Wednesday that he is taking SpaceX's business incorporation from Delaware to Texas, after Delaware's chancellor last month struck down his proposed $55 billion Tesla pay package.

  • February 15, 2024

    Restaurant Franchise Owner Hit With $30.7M Jury Verdict

    A Dallas County, Texas, jury has returned a $30.7 million verdict against major restaurant franchise company Sun Holdings Inc. and its owner in favor of an executive who claimed they refused to pay him his fair share of profits for operating nearly 150 Popeyes eateries.

  • February 15, 2024

    Cos. See Shareholder Activism As Growing Risk, Study Finds

    Companies are increasingly identifying shareholder activism as a risk in their corporate disclosures, as the number of U.S. companies publicly subjected to activist demands rose nearly 8% from 2022 to 2023, according to a report released Thursday.

  • February 15, 2024

    Judge Tosses Credit Suisse Investors' RICO Suit

    A New York federal judge has thrown out a proposed class action lawsuit filed against Credit Suisse AG subsidiaries and the bank's auditor, KPMG, in the wake of the Swiss bank's sudden takeover, saying that suing investors could not skirt an earlier state ruling that found the case did not belong in the U.S.

Expert Analysis

  • 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.

  • Series

    Competing In Dressage Makes Me A Better Lawyer

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    My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.

  • What Financial Cos. Must Know For Handling T+1 Settlements

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    The U.S. Securities and Exchange Commission has adopted a groundbreaking new T+1 settlement rule for securities transactions in order to improve market efficiency — but it presents significant challenges for the financial services industry, especially private equity firms, hedge funds and institutional asset managers, says Adam Weiss at Petra Funds Group.

  • Breaking Down FDIC's New Advertising And Signage Rule

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    The Federal Deposit Insurance Corp.’s final rule on signage and advertising, coming on the heels of a campaign against nonbank businesses purporting to offer FDIC-insured deposit products, introduces important new requirements and clarifies existing regulations for both traditional depository institutions and novel digital platforms, say attorneys at Venable.

  • The Double-Edged Sword Of Biometrics In Financial Services

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    Financial institutions are increasingly turning to biometrics for identity verification and fraud prevention, and while there are many benefits to such features, banks must remain vigilant against growing AI technologies that could make users' information vulnerable to biometrics hackers, say Elizabeth Roper at Baker McKenzie and Chris Allgrove at Ingenium Biometric Laboratories.

  • CFTC Moves May Boost Interest In Voluntary Carbon Markets

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    As companies try to reduce their net greenhouse gas emissions, many have been cautious about embracing voluntary carbon credit markets — but recent moves by the U.S. Commodity Futures Trading Commission to regulate this sector may address some of its well-known challenges, say Deborah North and Laura Daugherty at Cleary.

  • Musk Pay Package Ruling Offers Detailed Lesson On Del. Law

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    Anat Alon-Beck and John Livingstone at Case Western Reserve University discuss the specifics that led Delaware's chancellor to rescind Elon Musk's $55.8 billion Tesla pay package on Jan. 30, how the state’s entire fairness doctrine played into the ruling, and its bigger-picture impact on the executive compensation landscape.

  • Chancery's Sears Ruling Clarifies Stockholder Duties

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    In a recent landmark decision involving stockholders of Sears Hometown and Outlet Stores, the Delaware Chancery Court addressed for the first time what precise duties a controlling stockholder owes, highlighting that controller interference with board action is not per se invalid and that enhanced scrutiny is a reasonableness test, say Christopher Chuff and Taylor Bartholomew at Troutman Pepper.

  • Del. Ruling Adds Momentum For Caremark Plaintiffs

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    The Delaware Supreme Court's recent opinion in Lebanon County Employees' Retirement Fund v. Collis could be viewed as expanding plaintiffs' ability to viably plead a Caremark claim against directors, so Delaware companies should be on heightened alert and focus on creating a record of board oversight, say attorneys at V&E.

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