Securities

  • February 20, 2024

    Judge Spikes Ebix Investors' Bid For Ch. 11 Equity Committee

    A Texas bankruptcy judge declined Tuesday to take the rare step of ordering the appointment of an equity committee to act on behalf of a group of shareholders in Ebix Inc.'s Chapter 11 case, ruling that the investors will be adequately represented without one. 

  • February 20, 2024

    Developers Deny 'Shell Game' Amid Push For More Sanctions

    Real estate developers facing potential imprisonment over their failure to pay EB-5 investors at least $26 million in settlement and sanction judgments have told an Illinois federal court their money is not hidden in a "shell game" but rather tied up in receivership proceedings the investors already know about.

  • February 20, 2024

    Crypto-Friendly Atty Challenges Warren For Senate Seat

    An attorney known for his pro-crypto views and criticism of the U.S. Securities and Exchange Commission announced on Tuesday a campaign to unseat incumbent and crypto critic Sen. Elizabeth Warren in the Massachusetts senatorial race.

  • February 20, 2024

    US Trustee Wants Sorrento Ch. 11 Tossed Or Relocated

    The U.S. Trustee's Office has moved to have Sorrento Therapeutics' Chapter 11 case dismissed, alleging the biopharmaceutical company manufactured a venue in Texas bankruptcy court, even as the debtor asked for court approval to sell off its assets to its CEO under a revised reorganization plan.

  • February 20, 2024

    Chancery Trounces New Jersey Attys' Bid To Bar Doc Reviews

    A Delaware vice chancellor has pointedly rejected what he called New Jersey discovery rule "exceptionalism" in a dispute over absolute protection claims for documents sought in a suit accusing advisers of siphoning millions from a family-controlled trust briefly chartered in Delaware.

  • February 20, 2024

    Biotech Co. SomaLogic, Former Exec Settle Fight Over Stock

    Colorado-based biotechnology company SomaLogic Inc. and a former co-founder of a company it purchased in 2022 have resolved a lawsuit over the executive's departure and the fate of 400,000 unvested shares, with a California federal judge dismissing the case for good on Friday.

  • February 20, 2024

    Binance, Prosecutors Urge Court To Affirm $4.3B Penalty

    Binance Holdings Ltd. and federal prosecutors have called on a Washington federal court to confirm a historic $4.3 billion penalty, including a $1.8 billion criminal fine and a $2.5 billion forfeiture, that the crypto exchange agreed to pay last fall when admitting to a series of banking and sanctions violations.  

  • February 20, 2024

    $71M Deal Proposed To End Premier Inc. Share Exchange Suit

    Healthcare-purchasing giant Premier Inc. has agreed to a $71 million settlement of a derivative stockholder suit in Delaware's Chancery Court that challenged a $473.5 million payout in a 2020 restructuring, with stockholder attorneys seeking an award of up to $14 million in fees.

  • February 20, 2024

    Pharma Co. Can Get D&O Coverage For Securities Suit

    A pharmaceutical company that developed a drug for rare genetic blood disorders is covered under a recent directors and officers policy for a securities class action, a Delaware state court ruled, rejecting its insurers' contention that the action was related to an SEC subpoena and thus fell under an older policy. 

  • February 20, 2024

    Solar Co. Preyed On Elderly Prior To DOE Loan Deal, Suit Says

    Sunnova Energy International Inc. was hit with a proposed investor class action alleging shareholders were damaged when reports revealed that it routinely engaged in predatory tactics against elderly homeowners before it entered a deal with the U.S. Department of Energy to help disadvantaged communities.

  • February 20, 2024

    Chancery Won't Block TripAdvisor's Nevada Move

    In a ruling with implications for other Delaware-chartered companies pondering corporate charter relocations, a Delaware vice chancellor on Monday refused to block travel planning giant TripAdvisor Inc.'s reincorporation in Nevada, but kept alive minority stockholder damage claims alleging the vote was unfair and tainted by controller clout.

  • February 20, 2024

    Sullivan & Cromwell Accused Of Aiding FTX Fraud

    Sullivan & Cromwell LLP has been accused of knowing about and helping facilitate the massive fraud that brought down cryptocurrency exchange FTX while serving as FTX's outside counsel, and profiting on the back end by overseeing FTX's ongoing bankruptcy, according to a racketeering lawsuit filed last week.

  • February 20, 2024

    Full 5th Circ. To Hear Appeal Of Nasdaq Board Diversity Rule

    The Fifth Circuit agreed Tuesday to rehear en banc a lawsuit challenging a Nasdaq board diversity rule that the U.S. Securities and Exchange Commission had approved, granting conservative groups that brought the lawsuit another shot at overturning a rule that requires Nasdaq-listed companies to disclose board diversity data.

  • February 20, 2024

    Boomerang In Default For Silence On $7M Del. Contract Suit

    A defunct steel tube plant that failed to respond to a Delaware Chancery Court lawsuit seeking $7.35 million for unpaid invoices was found in default Tuesday after failing to appear in court for more than a year and a half.

  • 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.

Expert Analysis

  • Key Maritime Law Issues In 2024: Environmental Challenges

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    In the second installment of this three-part article examining key concerns for the maritime sector this year, Sean Pribyl at Holland & Knight considers how the industry will be affected by environmental concerns — including the growing push for decarbonization, and regulatory scrutiny around greenwashing and ESG issues.

  • As Promised, IRS Is Coming For Crypto Tax Evaders

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    The IRS is fulfilling its promise to crack down on those who have neglected to pay taxes on cryptocurrency earnings, as demonstrated by recently imposed prison sentences, enforcement initiatives and meetings with international counterparts — suggesting a few key takeaways for taxpayer compliance, say attorneys at BakerHostetler.

  • 5 Reasons Associates Shouldn't Take A Job Just For Money

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    As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.

  • SEC Registrants Likely Won't Get Cyber Disclosure Delays

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    The U.S. Securities and Exchange Commission's sweeping cybersecurity disclosure final rules, its SolarWinds enforcement action and recent U.S. Department of Justice guidance show the pressure is on registrants to disclose incidents timely and accurately, but the circumstances in which an extension will be granted are extremely rare, say attorneys at Pillsbury.

  • Key Maritime Law Issues In 2024: Geopolitics And Sanctions

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    Major challenges are on the horizon for the U.S. maritime sector in 2024, including geopolitical tensions in the Red Sea and ever-evolving sanctions targeting Iran and Russia — which may lead to higher shipping costs and greater compliance burdens for stakeholders, says Sean Pribyl at Holland & Knight.

  • New SDNY Whistleblower Program May Be A Game-Changer

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    A new pilot program in the U.S. Attorney’s Office for the Southern District of New York promises to immunize from prosecution certain individuals who blow the whistle on financial crimes and corruption, and if similar self-disclosure programs are any indication, this significant new policy may measurably increase white collar investigations, say attorneys at Paul Hastings.

  • Series

    Playing Competitive Tennis Makes Me A Better Lawyer

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    My experience playing competitive tennis has highlighted why prioritizing exercise and stress relief, maintaining perspective under pressure, and supporting colleagues in pursuit of a common goal are all key aspects of championing a successful legal career, says Madhumita Datta at Lowenstein Sandler.

  • A Guide To New Russia Sanctions For Foreign Financial Cos.

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    Attorneys at Foley Hoag take foreign financial companies on a deep dive into the compliance advice the U.S. Office of Foreign Assets Control issued after President Joe Biden's December executive order widened a Russian import ban and authorized sanctions against businesses that transact with Russia's military-industrial base.

  • The Questions Around Prometheum's SEC-Compliant Strategy

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    While the rest of the crypto industry has been engaged in a long-running battle to escape the U.S. Securities and Exchange Commission's jurisdiction, a once-obscure startup called Prometheum has instead embraced the SEC's view to become the first crypto special-purpose broker-dealer, but it's unclear whether it can turn its favored status into a workable business, says Keith Blackman at Bracewell.

  • Series

    The Pop Culture Docket: Judge Djerassi On Super Bowl 52

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    Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.

  • Reverse Merger Tips For Biotechs After SEC's Recent Actions

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    Several recent U.S. Securities and Exchange Commission developments could limit the viability of reverse mergers for biotech companies, and will require additional creativity and analysis for private companies looking to go public, say attorneys at Orrick.

  • Black-Led VC Fund Case Could Hinge On Nature Of Grants

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    Organizations whose missions involve any manner of race-conscious funding should closely monitor arguments this week in American Alliance v. Fearless Fund, a case filed against a grant program that seeks to address the gap in venture capital funding for Black women-led businesses, which will examine whether grants are charitable under Civil Rights Act Section 1981 liability, say Kali Schellenberg and John Stapleton at LeVan Stapleton, and Kenneth Trujillo at Chamberlain Hrdlicka.

  • Ex-OpenSea Staffer Case May Clarify When Info Is Property

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    In considering the appeal of a former OpenSea manager’s wire fraud conviction in U.S. v. Chastain, the Second Circuit may soon provide guidance about whether economic information is traditional property in certain insider trading prosecutions — a theory of fraud that the U.S. Supreme Court has repeatedly narrowed, say attorneys at Debevoise.

  • Takeaways From SEC's Aggressive Cybersecurity Moves

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    The U.S. Securities and Exchange Commission's intensifying policy on cybersecurity and securities violations in the wake of a data breach — like its enforcement action against SolarWinds and its security officer — has emboldened shareholders to file related suits, creating a heightened threat to public companies, say attorneys at Baker McKenzie.

  • Considerations For Lawyer Witnesses After FTX Trial

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    Sam Bankman-Fried's recent trial testimony about his lawyers' involvement in FTX's business highlights the need for attorney-witnesses to understand privilege issues in order to avoid costly discovery disputes and, potentially, uncover critical evidence an adversary might seek to conceal, says Lawrence Bluestone at Genova Burns.

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