Securities

  • February 14, 2024

    Breach Of Contract Claims Trimmed In $30M GameStop Suit

    A Delaware federal court dropped some allegations related to the breach of contract claims against GameStop in a $30 million fee dispute, saying the plaintiff, Boston Consulting Group, has not pled a viable claim in some instances despite having three chances to do so.

  • February 14, 2024

    SEC Says Bankruptcy Doesn't Stop Crowdfunding Fraud Case

    Securities regulators are urging a Michigan federal judge to allow them to press on with their claims against the alleged mastermind behind a $2 million crowdfunding scheme — who has since quietly changed his name and allegedly bilked his attorney — arguing that his recent bankruptcy filing shouldn't pause proceedings.

  • February 14, 2024

    Chicago Eatery Biz Exec's Bid For Atty Privilege Challenged

    Investors in Chicago restaurant Maple & Ash told an Illinois court that a principal at the eatery's management firm wrongly acted as a lawyer in their corporate theft lawsuit against the firm, saying he inappropriately seeks to assert attorney-client privilege over 6,000 documents in the suit.

  • February 14, 2024

    Deputy AG Warns Of Harsher Penalties For Crimes Aided By AI

    Deputy Attorney General Lisa Monaco on Wednesday said the U.S. Department of Justice will seek harsher penalties for crimes committed with the aid of artificial intelligence, calling the technology a "double-edged sword" that can be exploited by criminals but utilized by prosecutors with the right controls in place.

  • February 14, 2024

    Drug Co. Paratek's Officers Sued In Del. Over $462M Sale

    Former stockholders of drug developer Paratek Pharmaceuticals Inc. have sued five directors and officers in Delaware's Court of Chancery, accusing those named of slow-walking company sale efforts and snubbing up to 50% higher offers in favor of a $462 million deal that allegedly assured the directors and officers maximum benefits.

  • February 14, 2024

    Chancery Flipped SeaWorld Stock Claims, Ex-Execs Tell Court

    A Chancery Court judge "got it backwards" when he concluded that 19 former executives of SeaWorld Entertainment Inc. weren't entitled to vesting rights in connection with a 2017 stock sale, because he read the executives' separation and equity agreements out of order, an attorney for the executives told Delaware's Supreme Court on Wednesday.

  • February 14, 2024

    Glancy Prongay To Lead Wood Pellet Co. Dividend Suit

    Glancy Prongay & Murray LLP has been appointed lead counsel in an investor suit alleging wood pellet manufacturer Enviva misled investors about the financial health of the company and its ability to pay dividends.

  • February 14, 2024

    Fox News' Sorrento Report Takes Center Stage At 9th Circ.

    Counsel for Sorrento Therapeutics Inc. investors urged the Ninth Circuit on Wednesday to revive a securities suit alleging executives made misleading statements to Fox News about its COVID-19 research, prompting one judge to ask whether "you have to take things you hear on Fox News with a grain of salt."

  • February 14, 2024

    NYCB Faces Another Class Action Over CRE Challenges

    A New York Community Bank investor has brought a proposed class action alleging that executives falsely boasted of the bank's financial condition after making two large acquisitions, when the deals in fact weighed down its balance sheet and led to a significant dividend reduction.

  • February 14, 2024

    2nd Circ. Backs Goldman's Victory In 401(k) Self-Dealing Suit

    The Second Circuit upheld Goldman Sachs' win in a class action from 29,000 employee 401(k) plan participants who said the banking giant violated federal benefits law by including underperforming proprietary investment funds in their investment roster, citing evidence Wednesday of a "robust process" to manage potential conflicts.

  • February 14, 2024

    Feds Get Pause Of Fla. Malpractice Suit Amid Criminal Case

    A Florida federal judge has put a malpractice lawsuit against a New York attorney on hold while federal prosecutors pursue a securities fraud case against the lawyer's former client in Pennsylvania.

  • February 14, 2024

    Genesis Gets Nod To Sell $1.6B In Grayscale Shares In Ch. 11

    Cryptocurrency lender Genesis Global won a New York bankruptcy judge's approval Wednesday to start selling more than $1.6 billion of shares in Grayscale Investments trusts to fund payouts to creditors, defeating an objection by Digital Currency Group over sale timing and the parent company's plea to consult on transactions.

  • February 14, 2024

    Dechert Hires Weil Middle-Market Financing Partner In NY

    Dechert LLP has hired a Weil Gotshal & Manges LLP partner with over 25 years of experience to continue working on private credit and securities law matters, Dechert announced Wednesday.

  • February 14, 2024

    Shareholders Seek Approval For $7.5M Faraday Future Deal

    Faraday Future Intelligent Electric Inc. investors are asking a California federal judge to certify a settlement class and approve a $7.5 million deal to resolve their claims that the company misled them about its electric vehicle reservations and financial prospects before a go-public special-purpose acquisition company merger.

  • February 13, 2024

    Ambrx Shareholders Sue Over Proposed $2B J&J Deal

    Two new suits filed in Delaware federal court allege Ambrx Biopharma Inc. and its top executives omitted important information about a $2 billion proposed Johnson & Johnson buyout in the deal's proxy statement.

  • February 13, 2024

    BofA Unit Hit With Trader's Suit Over Alleged Spoofing

    A Bank of America unit faces a trader's proposed class action seeking to hold it liable for allegedly manipulating markets for U.S. Treasury futures and options after the firm paid a $24 million fine to the U.S. Financial Industry Regulatory Authority over the same alleged misconduct.

  • February 13, 2024

    FinCEN Eyes Enlisting Fund Managers In Illicit Finance Fight

    The Financial Crimes Enforcement Network moved Tuesday to expand federal anti-money laundering requirements to hedge fund managers, private equity firms and other so-called investment advisers, issuing a proposal that seeks to harden a multitrillion-dollar segment of the financial sector against exploitation by criminals.

  • February 13, 2024

    PR Giant Ketchum Sued Over Voyager's Celeb Crypto Promos

    A class of users of bankrupt crypto lender Voyager have sued public relations company Ketchum Inc. in Florida federal court over its work organizing a Voyager event with an NBA basketball team and other promotional materials, which the users say amounted to aiding and abetting the crypto platform's sale of unregistered securities.

  • February 13, 2024

    Accused Crypto Mixer 'Key' To Online Drug Market, Gov't Says

    Bitcoin Fog laundered hundreds of millions of dollars worth of bitcoin and played a "key role" in the online drug economy, prosecutors said in an opening statement Tuesday to kick off the trial of the accused operator of the cryptocurrency mixer in D.C. federal court.

  • February 13, 2024

    Exxon Investors Urge Judge To Toss SEC 'Proxy Battle'

    The ExxonMobile Corp. investors who backed off plans to call for a shareholder vote on the company's climate change policies now say the company's lawsuit attempting to bar the proposal should be dismissed, arguing the company is only moving forward with the case to indirectly challenge the authority of the U.S. Securities and Exchange Commission.

  • February 13, 2024

    Voyager Investors Suing Mark Cuban Reach Deal With Gronk

    Investors suing billionaire Mark Cuban over his role in promoting now-bankrupt Voyager Digital Ltd. said Tuesday they had reached a tentative agreement with former NFL star Rob Gronkowski to stay claims tied to his social media posts and appearances boosting the cryptocurrency firm.

  • February 13, 2024

    Soroc Tech Sues In Del. For $115M Merger Takeback

    Soroc Technology Holdings LLC sued MainOne Technology Solutions LLC on Tuesday in Delaware's Court of Chancery, seeking recovery of the $115 million it paid in early 2022 for its acquisition of MainOne's interest in DecisionOne Corp.

  • February 13, 2024

    SEC's Gensler Promises 'War' On AI Fraud

    U.S. Securities and Exchange Commission Chair Gary Gensler told an audience of Yale Law School students on Tuesday that financial firms using so-called artificial intelligence could face the agency's wrath if they don't put proper safeguards in place to combat fraud against investors.

  • February 13, 2024

    Digitex CEO Let Unverified Users Trade Crypto, Gov't Alleges

    The founder of Digitex Futures Exchange was charged in Florida federal court over allegations he refused to implement policies designed to prevent money laundering on his cryptocurrency futures platform, the U.S. Attorney's Office for the Southern District of Florida said in a statement Tuesday.

  • February 13, 2024

    Qihoo 360, Investors Ink $29.75M Deal Over $9.3B Merger Suit

    Investors suing Chinese software company Qihoo 360 Technology Co. Ltd. asked a New York federal judge to approve a $29.75 million settlement ending claims the firm worked to push down its share price in order to pay shareholders an unfairly low price when it went private by means of a $9.3 billion merger.

Expert Analysis

  • The Most-Read Securities Law360 Guest Articles Of 2023

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    Securities guest article topics that piqued reader interest this year include how the U.S. Securities and Exchange Commission utilized seldom-used rules to go after bad actors, and how Delaware courts increased scrutiny on boards of directors — sometimes in surprising ways.

  • The Most-Read Legal Industry Law360 Guest Articles Of 2023

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    A range of legal industry topics drew readers' attention in Law360's Expert Analysis section this year, from associate retention strategies to ethical billing practices.

  • How SEC And NY Cyber Reporting Rules Affect Key Industries

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    The new U.S. Securities and Exchange Commission and New York State Department of Financial Services cybersecurity disclosure requirements, and their competing obligations, reveal the increasing complexity for organizations evaluating and reacting to cybersecurity incidents — particularly those in the healthcare and financial services industries, say attorneys at Manatt.

  • Attorneys' Busiest Times Can Be Business Opportunities

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    Attorneys who resolve to grow their revenue and client base in 2024 should be careful not to abandon their goals when they get too busy with client work, because these periods of zero bandwidth can actually be a catalyst for future growth, says Amy Drysdale at Alchemy Consulting.

  • Bribery Bill Fills Gap In Foreign Corruption Enforcement

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    Congress recently passed the Foreign Extortion Prevention Act, significantly expanding the U.S. government's ability to prosecute foreign officials who seek or demand bribes, but if enacted, the legislation could also create tension with other nations, say attorneys at Ropes & Gray and Mayer Brown.

  • In The World Of Legal Ethics, 10 Trends To Note From 2023

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    Lucian Pera at Adams and Reese and Trisha Rich at Holland & Knight identify the top legal ethics trends from 2023 — including issues related to hot documents, artificial intelligence and cybersecurity — that lawyers should be aware of to put their best foot forward.

  • Del. Dispatch: The 2023 Corporate Cases You Need To Know

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    Corporate and mergers and acquisitions litigation has continued at a fevered pace this year, with the Delaware courts addressing numerous novel issues with important practical implications, including officer exculpation and buyer aiding-and-abetting liability, say attorneys at Fried Frank.

  • Volume-Based Transaction Pricing Proposal Raises Questions

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    A rule recently proposed by the U.S. Securities and Exchange Commission, which would prohibit securities exchanges from offering volume-based transaction pricing for agency or riskless principal orders in certain stocks, is meant to address competitive concerns — but there are reasons to question the logic behind this proposal, say attorneys at Sidley.

  • SEC, NY Cybersecurity Rules Create Complexity For Insurers

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    Two separate cybersecurity rules recently adopted by the New York Department of Financial Services and the U.S. Securities and Exchange Commission pose distinct challenges for insurance industry participants, with important interactions, and potential tensions, for those required to comply with both frameworks, say attorneys at Debevoise.

  • How Attorneys Can Be More Efficient This Holiday Season

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    Attorneys should consider a few key tips to speed up their work during the holidays so they can join the festivities — from streamlining the document review process to creating similar folder structures, says Bennett Rawicki at Hilgers Graben.

  • Top 10 Whistleblowing And Retaliation Events Of 2023

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    The U.S. Securities and Exchange Commission and federal and state courts made 2023 another groundbreaking year for whistleblower litigation and retaliation developments, including the SEC’s massive whistleblower awards, which are likely to continue into 2024 and further incentivize individuals to submit tips, say attorneys at Proskauer.

  • Understanding Advance Notice Bylaws Is Key For All Parties

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    Recent developments in Delaware case law show that advance notice bylaws will be strictly construed and that Delaware courts will generally uphold clear, unambiguous bylaws adopted and applied reasonably, a lesson for both companies and stockholders alike as the number of companies rejecting director nominations by dissident stockholders has increased, say attorneys at MoFo.

  • 3 Defense Takeaways From The Bankman-Fried Trial

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    FTX founder and former CEO Sam Bankman-Fried’s recent fraud conviction offers several key lessons for future white collar defendants, from the changing nature of cross-examination to the continued risks of taking the stand, say Jonathan Porter and Gregg Sofer at Husch Blackwell.

  • Series

    Children's Book Writing Makes Me A Better Lawyer

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    Becoming a children's book author has opened doors to incredible new experiences of which I barely dared to dream, but the process has also changed my life by serving as a reminder that strong writing, networking and public speaking skills are hugely beneficial to a legal career, says Shaunna Bailey at Sheppard Mullin.

  • Parsing 2023's Energy Markets Enforcement

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    A review of the Federal Energy Regulatory Commission's and Commodity Futures Trading Commission's recently released fiscal year 2023 enforcement reports highlight the significant energy market enforcement activities, litigation pursued and settlements reached by both agencies, as well as their respective strategic goals and focus areas, say attorneys at Morgan Lewis.

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