Simpson Thacher Atty Says Patriot Nat'l Founder Sank Co.

By Madison Arnold

A Simpson Thacher & Bartlett LLP partner wrapped up her testimony Monday in a Florida state malpractice trial brought by the founder of Patriot National Inc., telling the jury that the founder was willing to forgo establishing a floor on the value of so-called Series B warrants, which he says contributed to the company's demise.

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Mexico Billionaire Not Financier's Only Victim, Judge Told

By Pete Brush

A Greek financier who allegedly swiped $450 million from Mexican billionaire Ricardo Salinas Pliego in a fraudulent stock-for-cash loan deal has "numerous other victims," a prosecutor told a Manhattan federal judge Monday.

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SEC Fines Simplify $400K Over ETF Transaction Violations

By Katryna Perera

A Delaware-based registered investment adviser has agreed to pay a $400,000 fine to the U.S. Securities and Exchange Commission to resolve claims that, among other things, it caused an affiliated trust to engage in prohibited transactions and separately caused one of its exchange-traded funds to exceed leverage thresholds for derivatives trading.

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Minn. Prediction Market Ban Gets Temporarily Blocked

By Hailey Konnath

A Minnesota federal judge on Monday issued a temporary injunction blocking the state's first-of-its kind law banning prediction markets, ruling that the state likely overstepped its authority just days before the measure was set to take effect.

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NY AG Says States Must Have Power To Police Crypto, Ethics

By Aislinn Keely

New York Attorney General Letitia James called on federal lawmakers Monday to amend a pending proposal to regulate crypto markets to give states more latitude to protect consumers, go after scammers and hold government officials like the president accountable for profiting from the industry.

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Kalshi To 'Geofence' Nevada After Regulators Expose Gap

By Aislinn Keely

Kalshi will implement additional tech tools to block Nevada users from its platform or face daily six-figure fines after the state's gambling regulators showed they could still place trades in the state despite a standing court order barring the prediction market platform from serving Nevada residents.

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Kalshi Seeks To Keep Operating In Wash. Pending Appeal

By Katryna Perera

Kalshi has urged a Washington judge to pause a recent order granting the state attorney general's bid to preliminarily enjoin the prediction market platform from operating within the state, saying the injunction causes Kalshi to face a "'Hobson's choice' between state enforcement and its federal duties."

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FTX's $1.8B Clawback Suit Against Binance, Zhao Can Proceed

By Sarah Jarvis

A Delaware federal bankruptcy judge has allowed FTX's bankruptcy estate to continue to try to claw back a $1.76 billion payment to the cryptocurrency platform though she trimmed certain claims.

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NY AG Urges 2nd Circ. To Deny Kalshi Sports Bet Ban Shield

By Sydney Price

New York regulators urged the Second Circuit to deny Kalshi's request for an emergency order that would allow the prediction market company to continue conducting business in New York while its challenge to the state's gambling laws is resolved, arguing the company's operations are both prohibited and predatory.

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Amex Bracing For Enforcement Action Amid AML Scrutiny

By Jon Hill

American Express Co. may face regulatory fines over its anti-money-laundering compliance programs and has been working to "identify and remediate deficiencies" in them, according to its latest public investor disclosures.

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Crypto Hedge Fund Manager Gets 3 Years For Tax Evasion

By Craig Clough

A crypto hedge fund manager who renounced his U.S. citizenship and moved to the Cayman Islands was sentenced to over three years in prison for tax evasion, the U.S. Attorney's Office for the Western District of Texas said Monday.

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PE Shop Founder Pleads Guilty In $50M Ponzi Scheme

By Jade Martinez-Pogue

The managing partner of a New Hampshire-based private equity firm has pled guilty in New York federal court to multiple counts of fraud and money laundering in connection with a scheme that solicited over $50 million in investments for purported health and wellness companies.

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Del. Judge Tosses Challenge To Envestnet's $4.5B Bain Sale

By Jarek Rutz

The Delaware Chancery Court has dismissed a stockholder challenge to Envestnet Inc.'s $4.5 billion take-private sale to Bain Capital affiliates, ruling that investors approved the deal through a fully informed vote and that the complaint failed to support claims that the company's independent directors or financial adviser Morgan Stanley acted improperly.

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court last week tackled disputes involving restrictive covenants, corporate governance, trade secrets, real estate investments, receiverships, and books and records demands.

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Health Data Co. Inks $4.8M Settlement To End Investor Suit

By Sydney Price

The health diagnostics company formerly known as Sema4 has reached a $4.8 million settlement with investors accusing the company of misleading them about a nonexistent, artificial intelligence-driven data platform it claimed to operate.

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Elf Beauty Investors Seek Class Cert. In Inventory Suit

By Katryna Perera

Investors in cosmetics business e.l.f. Beauty Inc. who are suing the company for allegedly hiding growing inventory issues stemming from inadequate sales have asked a California federal judge for class certification and to appoint Labaton Keller Sucharow LLP as class counsel, saying the requirements for certification fit the case "like a glove."

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Using Disclosure Process Defense In Securities Fraud Cases

Courts' recent endorsement of the involvement-of-counsel defense in securities fraud litigation has clarified that its use depends on how evidence is used, carrying important lessons for presenting evidence of a disclosure process to undermine scienter, say attorneys at Sidley.

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From Order To Regulation: How EOs Are Reshaping Banking

The pattern of regulatory activity emerging in the wake of the Trump administration's first 18 months of executive orders makes clear that financial institutions should treat presidential directives as early warning signs and not wait for final rules to assess the accompanying compliance impact, says Jonathan Kolodziej at Bradley.

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Series

Judges On AI: Examining Administrative, Organizational Uses

U.S. District Judge Alan Albright of the Western District of Texas examines how artificial intelligence could transform a court's ability to deal with administrative work and organize materials when preparing for hearings or drafting opinions, thereby affording judges more time to resolve contested issues.

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AG Watch: Minn. Defends Prediction Markets Ban

Minnesota Attorney General Keith Ellison has aggressively defended the state's landmark statute banning prediction markets, but the court's July 27 temporary injunction in U.S. v. Minnesota blocking the law from taking effect could set the template for state authority across the country, say attorneys at Crowell & Moring.

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Brief

Milbank Issues Bonuses To Associates, Special Counsel

By Andrea Keckley

Milbank LLP is continuing to lead the way on bonuses, confirming Monday it has issued a round of special bonuses ranging from $6,000 for the class of 2026 and 2025 associates to $25,000 for the class of 2021 associates and beyond.

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Cooley Owes $25.4M Judgment To NJ Biotech Co. Founder

By Brian Steele

A New Jersey state court on Monday entered a $25.4 million judgment against Cooley LLP after a jury found the multinational firm had committed malpractice in its representation of a biotech founder who said his own lawyers assisted in shoving him out of his company.

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ABA Says Feds' Susman Godfrey DQ Bid Is More Intimidation

By Lauren Berg

The American Bar Association on Monday urged the D.C. federal judge overseeing its lawsuit challenging 2025 executive orders targeting law firms to reject the Trump administration's bid to have Susman Godfrey LLP disqualified as plaintiffs' counsel, calling it the latest "effort to intimidate" the American legal profession.

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Quinn Emanuel's Ethics Training 'Promising,' Judge Says

By Bonnie Eslinger

A California federal judge Monday approved a court-ordered ethics training program prepared by Quinn Emanuel in the wake of misrepresentations the firm made concerning an expert in a false advertising suit brought by Guardant Health against its client Natera, saying the firm had designed an "extremely promising" eight-hour program.

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300+ Public Defenders Strike In The Bronx

By Andrea Keckley and Daniel Moritz-Rabson

More than 300 attorneys and staff with the Bronx Defenders Union went on strike Monday, one year after the last time the union walked off the job.

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Comey Says Seashell Post No Threat To Trump

By Abigail Harrison

Former FBI Director James Comey urged a North Carolina federal court Monday to dismiss an indictment stemming from a social media post he made last year, arguing the post doesn't constitute a "true threat" to President Donald Trump.

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