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Capital Markets
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January 15, 2025
Silvergate's Ex-CFO Fires Back At SEC Accounting Claims
The former chief financial officer of defunct crypto-focused bank Silvergate Capital urged a New York federal judge to toss the U.S. Securities and Exchange Commission's allegations that he concealed the bank's precarious financial position, saying he didn't have anything to gain from hiding Silvergate's financial woes.
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January 15, 2025
Sidley-Led Flowco Raises $427M In Year's First Major IPO
Oilfield equipment and services provider Flowco Holdings Inc. on Wednesday priced a $427 million initial public offering above its range, represented by Sidley Austin LLP and underwriters' counsel Latham & Watkins LLP, marking the year's first sizable IPO.
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January 15, 2025
Del. Court Nixes Bid For Truth Social Share Attachment
A Delaware vice chancellor on Wednesday rejected an investor motion for a prejudgment attachment of remaining shares held by the blank-check company that took President-elect Donald Trump's Truth Social platform public, saying the move exceeded the court's authority.
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January 15, 2025
Block Pays Regulators $80M Over Cash App AML Compliance
Jack Dorsey's fintech company Block Inc. has reached an $80 million settlement over alleged anti-money laundering compliance failures by its mobile payments platform Cash App, a coalition of state banking regulators announced Wednesday.
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January 15, 2025
Buyers In Cheese Co. Deal Fight To Keep Claims In Fla.
Two Florida companies asked the Eleventh Circuit on Wednesday to revive their lawsuit accusing Savencia Cheese USA LLC and its executives of fraudulently selling them a worthless cheese distribution company for $17 million, arguing the presence of deal counsel in Miami is enough to keep the suit in Florida federal court.
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January 15, 2025
Plum Acquisition's Latest SPAC Leads 2 IPOs Raising $200M
Plum Acquisition IV Corp., the latest special-purpose acquisition company backed by investment firm Plum Partners, and Tokyo-based SPAC Ribbon Acquisition Corp. began trading today after the vehicles raised $200 million combined, guided by four law firms.
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January 15, 2025
9th Circ. Open To Reviving Robinhood Suit Over $2.1B IPO
Judges on a Ninth Circuit panel appeared open Wednesday to reviving a proposed securities class action alleging Robinhood hid how a "meme stock" and cryptocurrency trading frenzy had impacted its outlook ahead of its $2.1 billion initial public offering, saying the lower court may have applied the wrong standard in tossing the case.
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January 15, 2025
Broker, Traders Charged With $1M Insider Trading Scheme
A securities broker and three traders have been charged in New York federal court for their roles in what prosecutors described as a yearslong, $1 million insider trading scheme that involved tips about upcoming secondary stock offerings, including one by the owner of DVD rental company Redbox, an indictment unsealed Wednesday showed.
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January 15, 2025
SEC Announces Departure Of Top Economist And Accountant
The U.S. Securities and Exchange Commission's chief economist and chief accountant are stepping down, the agency has announced, marking the latest departures given the pending inauguration of President-elect Donald Trump.
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January 15, 2025
Judge Warns DOJ: Settle Burger Forfeiture Suit Or Pay Up
A Michigan federal judge on Tuesday expressed frustration with Justice Department officials' delays in resolving a civil forfeiture action over an alleged $11 million healthcare fraud scheme involving money laundered through Big Boy Restaurant, telling federal prosecutors they have until next week to settle the case or pay the chain's recent legal bills.
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January 15, 2025
Banks Must Face Pension Funds' Mexican Bond-Rigging Suit
A Manhattan federal judge refused Wednesday to throw out a case brought by U.S. pension funds that accused a group of banks of conspiring to rig Mexican government bond prices, saying chatroom transcripts between traders showed evidence of collusion.
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January 15, 2025
BitMEX Fined $100M For 5 Years Of Flouting US Banking Law
A Manhattan federal judge slapped BitMEX with a $100 million fine Wednesday, rejecting its suggestion that $110 million of earlier penalties sufficed to punish the offshore crypto exchange for a five-year course of evading U.S. financial controls as it earned $1.3 billion.
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January 15, 2025
Clifford Chance, Wachtell Help Pfizer To Cut Haleon Stake
Pharmaceutical titan Pfizer has reduced its stake in Haleon PLC, the British healthcare giant, to 7.3% by selling shares worth £2.5 billion ($3 billion), a bookrunner for the sale said Wednesday.
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January 14, 2025
Wells Fargo Fights To Drop Officers From Investors' Bias Suit
Wells Fargo & Co. urged a California federal judge Tuesday to free three executives from a derivative lawsuit filed by shareholders claiming the bank's leadership failed to address the company's discriminatory lending and hiring practices, saying there are no allegations that explain why a presuit demand to the board would have been futile.
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January 14, 2025
Latham Grabs Top Spot For 2024 IPOs By Large Margin
Latham & Watkins LLP guided more initial public offerings than any law firm in 2024, capturing a diverse mix of large listings for companies that seized opportunities to go public as the broader IPO market inched toward recovery, new data shows.
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January 14, 2025
CFTC To Review Crypto Co.'s Sports Event Contracts
The U.S. Commodity Futures Trading Commission said Tuesday it plans to take a closer look at contracts tied to the outcome of high-profile sporting events trading on digital asset exchange Crypto.com, which self-certified the products in the final days of 2024.
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January 14, 2025
SEC Sues Elon Musk Over Late Twitter Buy-Up Disclosure
Elon Musk violated securities laws by failing to timely disclose his initial buy-up of Twitter stock ahead of his $44 billion acquisition of the company, allowing him to purchase shares at artificially low prices, the U.S. Securities and Exchange Commission alleged in a D.C. federal lawsuit filed Tuesday.
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January 14, 2025
Fla. Judge Won't Toss CFTC Suit Over $283M Trading Scheme
A Florida federal judge on Tuesday declined to dismiss the Commodity Futures Trading Commission's claims accusing an agent of financial firm Algo FX Capital Advisor LLC of helping The Traders Domain orchestrate a $283 million commodity transactions scheme.
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January 14, 2025
DXC Says Investor Suit Shows Integration Problems, Not Fraud
DXC Technology has asked a Virginia federal court to toss a shareholder suit alleging the information technology giant overhyped efforts to reduce restructuring and integration costs after acquiring several companies, arguing hindsight critiques from the current CEO do not establish securities fraud.
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January 14, 2025
Luxembourg Investor Sells Dunhill Parent Shares For £1.2B
Reinet Investments SCA said Tuesday that it has agreed to sell its remaining stake in cigarette giant British American Tobacco PLC to institutional investors for approximately £1.2 billion ($1.46 billion).
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January 13, 2025
Quinn Emanuel Scoops Up SDNY Securities Fraud Chief
Quinn Emanuel Urquhart & Sullivan LLP announced Monday that it has hired the former chief of the U.S. Attorney's Office for the Southern District of New York's securities and commodities fraud task force as a partner in its Manhattan office.
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January 13, 2025
Robinhood Users Oppose Arbitration Of 'Meme Stock' Claims
Stock trading platform Robinhood has failed to lay the groundwork for sending user disputes to arbitration, seven users of the platform claimed Monday in a bid to keep their claims in federal court over the company's 2021 suspension certain so-called meme stock trades.
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January 13, 2025
SEC Fines Robinhood $45M For Recordkeeping, Cyber Woes
The U.S. Securities and Exchange Commission announced Monday that Robinhood's broker-dealer units will pay a combined $45 million to settle a host of claims ranging from an alleged failure to file timely suspicious activity reports and address cybersecurity risks to alleged failures concerning data retention and recordkeeping.
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January 13, 2025
Binance Can't Get High Court To Review Class Cert. Decision
The U.S. Supreme Court on Monday passed on a petition from crypto exchange Binance Holdings Ltd. and its former CEO to consider whether transactions on its platform were beyond the reach of U.S. securities laws after a Second Circuit decision found enough stateside ties to revive a suit from the exchange's users.
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January 13, 2025
Colo. Justices Reject Co.'s Challenge To Storm Gas Bill
Colorado's highest court on Monday rejected a building materials company's challenge to charges on its electric bill related to extra natural gas purchased ahead of a 2021 winter storm, finding the company presented no facts to back its claim that the charges amounted to an unconstitutional taking.
Expert Analysis
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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With Esmark Case, SEC Returns Focus To Tender Offer Rules
The U.S. Securities and Exchange Commission's recent enforcement action against Esmark in connection with its failed bid to acquire U.S. Steel indicates the SEC's renewed attention under Rule 14e‑8 of the Exchange Act on offerors' financial resources as a measure of the veracity of their tender offer communications, say attorneys at MoFo.
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What FDIC Expansion Of Change In Bank Control Could Mean
A recent Federal Deposit Insurance Corp. proposal pertaining to the Change in Bank Control Act has the potential to create uncertainty around investments by mutual fund complexes in banking organizations, which represent a stable source of capital for the banking industry, say attorneys at Sullivan & Cromwell.
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Can SEC's Consolidated Audit Trail Survive Post-Chevron?
The U.S. Securities and Exchange Commission is currently in a showdown at the Eleventh Circuit over its authority to maintain a national market system and require that the industry spend billions to maintain its consolidated audit trail, a case that is further complicated by the Loper Bright decision, says Daniel Hawke at Arnold & Porter.
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What's Inside Feds' Latest Bank Merger Review Proposals
Recent bank merger proposals from a trio of federal agencies highlight the need for banks looking to grow through acquisition to consider several key issues much earlier in the planning process than has historically been necessary, say attorneys at Simpson Thacher.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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Making Sure Your Co. Isn't In The Next Section 13(f) Sweep
Enforcement actions taken against 11 institutional investment managers for alleged failures to file forms required by Section 13(f) of the Securities Exchange Act serve as a reminder that firms should carefully monitor their obligations to avoid becoming the target of the next enforcement sweep, say attorneys at Ropes & Gray.