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Capital Markets
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February 04, 2025
Wells Fargo Clears 2 More Consent Orders Amid Rehab Efforts
The Federal Reserve said Tuesday that Wells Fargo & Co. has exited a pair of mortgage-related consent orders from more than a decade ago, another step forward in the banking giant's regulatory rehabilitation efforts.
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February 04, 2025
Sen. Banking Chair Sets 100-Day Dash For Crypto Legislation
Senate Banking Committee Chair Tim Scott, R-S.C., said Tuesday that he intends to pass crypto legislation out of his chamber in the first 100 days of the new administration with the help of a working group composed of committee chairs in both chambers of Congress.
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February 04, 2025
AI Clean Energy Co. SPAC Suit Should Be Zapped, Judge Says
A federal magistrate judge has recommended dismissing, without prejudice, a derivative shareholder suit accusing the top brass of Stem Inc., an artificial intelligence-driven clean energy company, of making misleading statements leading up to a conflicted merger with a special purpose acquisition company, saying no one should have to "connect the dots" to figure out what is specifically being alleged against them.
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February 04, 2025
Robinhood Halts Super Bowl Offerings After Request By CFTC
Robinhood Markets' derivatives subsidiary pulled back its planned offering of Super Bowl online trading markets on Tuesday, one day after announcing the offering, saying the U.S. Commodity Futures Trading Commission requested that it stop.
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February 04, 2025
SEC Receiver, Atty Agree To Settle Fraud Transfer Claims
A court-appointed receiver for a U.S. Securities and Exchange Commission case has reached a settlement with parties who allegedly received hundreds of thousands of dollars' worth of transfers from a fraudulent foreign exchange trading scheme, including the attorney and family of a convicted executive.
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February 04, 2025
Coinbase Taps BigLaw Firms In Bid To End Crypto 'Debanking'
Crypto exchange Coinbase urged regulators Tuesday to clarify that banks can offer crypto custody and execution services, submitting a letter featuring a report from three BigLaw firms asserting that federal laws and regulations already allow banks to wade further into digital asset activities.
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February 04, 2025
SEC Says Pre-IPO Stock Firm Was $70M Boiler Room Scheme
The U.S. Securities and Exchange Commission has accused several New York City residents of participating in a fraudulent scheme in which sales representatives allegedly used high-pressure tactics to induce investments in private companies that had not yet held initial public offerings, while benefiting from the hidden fees charged to investors.
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February 04, 2025
PE-Backed Identity Software Firm SailPoint Primes $1B IPO
Cybersecurity firm SailPoint on Tuesday unveiled plans for an estimated $1 billion initial public offering that would mark its return to public markets three years after a private-equity buyout, represented by Kirkland & Ellis LLP and the underwriters' counsel, Davis Polk & Wardwell LLP.
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February 04, 2025
Trump Taps GOP Senate Staffer For Treasury Bank Policy Role
President Donald Trump on Monday nominated Luke Pettit, a senior adviser to Sen. Bill Hagerty, R-Tenn., and former Federal Reserve policy analyst, to become the U.S. Department of the Treasury's top bank policy official.
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February 03, 2025
Trump Orders Plan For Creating US Sovereign Wealth Fund
President Donald Trump on Monday signed an executive order calling on the U.S. Department of the Treasury and U.S. Department of Commerce to come up with a plan to create a U.S. sovereign wealth fund and said the social media app TikTok could potentially be put in the proposed fund.
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February 03, 2025
Credit Suisse Gets Investor Suit Over Collapse Booted To NY
Credit Suisse can fight a proposed investor class action in New York, instead of New Jersey, alongside similar litigation related to its rapid deterioration and subsequent takeover in March 2023, a Garden State magistrate judge has determined.
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February 03, 2025
Boeing Slams Funds' Bid To Bump 737 Max Fraud Suit To Va.
Boeing has told an Illinois federal judge that equity funds suing the American aerospace giant for allegedly defrauding investors by downplaying the 737 Max jets' safety flaws following a pair of deadly crashes in 2018 and 2019 shouldn't be allowed to forum-shop by moving their suit to Virginia.
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February 03, 2025
Texas' Bid To Launch Stock Exchange Moves Forward
As the owner of the new Texas Stock Exchange LLC gears up to begin trading by next year, capital markets attorneys are closely watching how the company plans to penetrate a market long dominated by two New York-based juggernauts.
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February 03, 2025
11th Circ. Weighs Future Of SEC's Market Surveillance Tool
The Eleventh Circuit on Monday questioned whether brokerage firms were being unfairly burdened with the cost of building up a U.S. Securities and Exchange surveillance tool known as the consolidated audit trail while appearing unmoved by arguments that the surveillance tool should never have been built.
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February 03, 2025
Baby Sock Co. Inks $3.5M Deal In Investor's FDA Approval Suit
Investors suing digital baby monitoring device manufacturer Owlet Inc. have asked a California federal court to preliminarily approve a $3.5 million deal to settle claims the company misled investors about approvals required from the U.S. Food and Drug Administration to sell its "smart socks."
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February 03, 2025
SEC's Former Acting Enforcement Director Joins Weil In NY
A former acting enforcement director of the U.S. Securities and Exchange Commission who led some of the agency's biggest cases over the past two decades has joined Weil Gotshal & Manges LLP as a partner in the firm's New York office.
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February 03, 2025
Utah Court Urged To Preserve $8.3M In Messner Reeves Funds
Several companies from Florida, New York and Utah have urged a Utah federal court to order Messner Reeves LLP to preserve $8.3 million purportedly locked away in an escrow fund, saying the law firm appears to be breaking a business loan agreement by dissipating the funds to unknown entities.
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February 03, 2025
Capital Markets Group Of The Year: Davis Polk
Davis Polk & Wardwell LLP's global team mastered the gamut of capital-raising transactions across continents in 2024, including billion-dollar-plus initial public offerings involving Finnish sporting goods giant Amer Sports and Swiss skincare company Galderma, earning the firm a spot among the 2024 Law360 Capital Markets Groups of the Year.
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February 03, 2025
Cystic Fibrosis Drug Developer Sionna Targets $150M IPO
Cystic fibrosis-focused drug developer Sionna Therapeutics Inc. on Monday launched plans for an estimated $150 million initial public offering, joining a growing number of biotechnology companies entering the IPO pipeline, represented by Goodwin Procter LLP and underwriters counsel Ropes & Gray LLP.
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January 31, 2025
$577M In Virus Fraud Cases At Risk Unless Congress Acts: IG
The federal government's top pandemic relief watchdog has issued an urgent plea for Congress to save his agency from imminent closure, warning that hundreds of millions of dollars in ongoing fraud investigations hang in the balance.
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January 31, 2025
January's IPO Market Was Active Despite Tepid Debuts
Capital markets lawyers kept busy in January thanks to a sizable increase in initial public offerings, but the largest IPOs performed weaker than expected, likely sobering market participants' expectations going forward.
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January 31, 2025
Bank Wants Investment Co.'s $60M RICO Suit Tossed
Western Alliance Bank is seeking the dismissal of a $60 million suit filed by an investment management firm alleging the bank played a role in a mortgage loan sale scheme to steam the firm's property rights in the loans and their proceeds, saying the complaint "attempts to recast a series of secured lending transactions as a vast racketeering conspiracy."
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January 31, 2025
Red States Back Trump Against 'Distracting' Truth Social Suit
Fifteen Republican-led states have joined President Donald Trump's fight against a lawsuit filed by early investors in his social media platform, with the states on Friday urging a Delaware state court to dismiss the case so as not to "distract" Trump from his presidential duties.
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January 31, 2025
Supreme Court Eyes Its 'Next Frontier' In FCC Delegation Case
A case about broadband subsidies will give the U.S. Supreme Court the chance to revive a long-dormant separation of powers principle that attorneys say could upend regulations in numerous industries and trigger a power shift that would make last term's shake-up of federal agency authority pale in comparison. And a majority of the court already appears to support its resurrection.
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February 14, 2025
Law360 Seeks Members For Its 2025 Editorial Boards
Law360 is looking for avid readers of our publications to serve as members of our 2025 editorial advisory boards.
Expert Analysis
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Implications Of NY Climate Case For Generating Facilities
Regardless of how Greenidge Generation LLC v. New York Department of Environmental Conservation develops on remand, this decision has immediate repercussions for generating facilities seeking permit applications and renewals in New York, likely involving Climate Leadership and Community Protection Act considerations, say attorneys at Hodgson Russ.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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FTX Exec's Sentencing Shows Pros And Cons Of Cooperation
The sentencing of former FTX tech deputy Gary Wang, whose cooperation netted him a rare outcome of no prison time, offers critical takeaways for attorneys and clients navigating the burgeoning world of crypto-related prosecutions, says Andrew Meck at Whiteford.
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SEC Custody Rule Creates Crypto Compliance Conundrum
While the U.S. Securities and Exchange Commission's application of the custody rule may be a good faith attempt to enhance consumer protections for client assets, it doesn't appreciate the unique characteristics of crypto-assets, forcing advisers to choose between pursuing their clients' objectives and complying with the rule, say attorneys at Willkie.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Federal Embrace Of Crypto Regs Won't Lower State Hurdles
Even if the incoming presidential administration and next Congress focus on creating clearer federal regulatory frameworks for the cryptocurrency sector, companies bringing digital asset products and services to the market will still face significant state-level barriers, say attorneys at Mayer Brown.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.
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Equitable Mootness Insights From Greenlit Ch. 11 Plan Appeal
A Texas federal court recently allowed a challenge to ConvergeOne's Chapter 11 bankruptcy plan to proceed because it wouldn't disrupt the IT company's confirmed plan or harm creditors, reinforcing the importance of judicial restraint in applying equitable mootness where limited relief is possible, say attorneys at Parkins & Rubio.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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How Boards And Officers Should Prep For New Trump Admin
In anticipation of President-elect Donald Trump's proposed tariffs and mass deportation campaign, company officers and board members should pursue proactive, comprehensive contingency planning to not only advance the best interests of the companies they serve, but to also properly exercise their fiduciary duty of care, say attorneys at Winston & Strawn.