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Capital Markets
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October 29, 2024
Cash-Strapped Boeing Prices Upsized $21B Share Sale
Boeing said Tuesday it had priced an upsized sale of common and depositary shares to raise more than $21 billion, in an offering guided by Kirkland & Ellis LLP and Davis Polk & Wardwell LLP that would bolster the plane maker's cash balances amid a protracted strike.
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October 29, 2024
MoFo Adds Kirkland Capital Markets Ace In San Diego
Morrison Foerster LLP is boosting its transactions team, announcing Tuesday that it is bringing in a Kirkland & Ellis LLP capital markets pro as a partner in its San Diego office as part of the firm's plan to increase high-level talent on the West Coast.
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October 29, 2024
Oil Trader's Brother Gets Probation, Fine For Brazilian Bribes
An ailing Connecticut man who admitted to helping his brother pull off a scheme to bribe officials at Brazil's state-owned oil company has been sentenced to probation, a fine and asset forfeiture, federal court records showed Tuesday.
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October 29, 2024
Financial Firm Gets $1.4M Placeholder Against Adviser
A Connecticut state court judge has granted a financial firm's bid for a nearly $1.4 million placeholder against an exiting financial adviser during ongoing FINRA arbitration, reasoning the firm has shown a likely chance of proving the adviser siphoned customers during a transition to a new broker-dealer.
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October 29, 2024
M&A Rebounded As Equity Issuance, IPOs Faltered In Q3
The number of global M&A deal announcements increased for the second consecutive quarter in the third quarter, but global equity issuance and IPO activity slowed, according to a Tuesday report from S&P Global Market Intelligence.
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October 29, 2024
Crescent Inks Oncology Merger With $200M In Private Funding
Crescent Biopharma Inc. has agreed to take fellow cancer-focused biotech GlycoMimetics Inc. private in a deal that includes $200 million of investments from well over a dozen firms to help fund the combined company's operations through 2027, GlycoMimetics revealed Tuesday.
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October 29, 2024
MVP: Davis Polk's Derek Dostal
Derek Dostal of Davis Polk & Wardwell LLP led the team representing underwriters in chip designer Arm Ltd.'s $4.9 billion initial public offering and advised placement agents in connection to the upsized private investment in public equity related to Lionsgate's $4.6 billion SPAC merger, earning him a spot as one of the 2024 Law360 Capital Markets MVPs.
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October 28, 2024
JPMorgan CEO Says Banks Must 'Fight Back' As Regs Mount
JPMorgan Chase & Co. CEO Jamie Dimon said Monday that it's time for the banking industry to "fight back" against aggressive federal regulators, criticizing what he described as an "onslaught" of unnecessary, overly harsh rulemaking.
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October 28, 2024
Crypto Co. Operator Faces Money Laundering, Tax Charges
Federal prosecutors accused an Indiana property owner of laundering the proceeds of a crypto money transmitter — AurumXchange — that they say should have been licensed and of failing to file tax returns despite realizing six figure gains from investing the proceeds.
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October 28, 2024
Masimo Sues Founder Over Alleged 'Empty Voting' Scheme
Masimo Corp. has sued its founder for allegedly conspiring with an investment firm and company stockholder to manipulate a shareholder vote in order to maintain his seat on the medical technology company's board of directors.
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October 28, 2024
Investment Firm's Head Indicted For Alleged Ponzi Scheme
Federal prosecutors have unsealed an indictment accusing a Utah man of carrying out a Ponzi scheme to embezzle millions of dollars from private investors who believed they were contributing to restaurant ventures.
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October 28, 2024
Fidelity Investments Sued Over Money Market Fund's Fees
Fidelity Investments has been hit with a class action suit in New York federal court alleging it charged high fees, mismanaged the administration of one of its money market funds, and failed to act in the best interests of the fund's shareholders.Â
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October 28, 2024
$4M Settlement Over NBA-Themed NFTs Gets Final OK
A New York federal judge on Monday granted final approval to a $4 million settlement between the firm behind NBA-focused non-fungible tokens and a class of purchasers who accused the digital assets company of selling the tokens as unregistered securities, and awarded roughly a third of the settlement fund in attorney fees.
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October 28, 2024
Boeing Moves Ahead With $19B Share Sale Amid Cash Crunch
Boeing launched plans Monday to sell common and preferred stock estimated to raise nearly $19 billion, potentially easing the aviation giant's cash crush amid a prolonged strike and production setbacks, represented by Kirkland & Ellis LLP and underwriters' counsel Davis Polk & Wardwell LLP.
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October 28, 2024
Labor Dept.'s Proposed ESOP Rule Moves Toward Release
The White House Office of Management and Budget is reviewing the U.S. Department of Labor's proposal for a rule related to how employee stock ownership valuations are conducted, the last step before the long-awaited proposed regulation is released to the public for comment.
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October 28, 2024
Simpson Thacher Taps Atty Duo As 1st Banking Team Leaders
Simpson Thacher & Bartlett LLP has named two longtime New York City-based partners, including the co-head of its global banking and credit practice, as the first co-leaders of its global investment banking practice, the firm announced Monday.
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October 28, 2024
Linklaters Adds 4 A&O Shearman Finance Partners In NY
Linklaters LLP announced Monday the addition of four partners from the recently merged Allen Overy Shearman Sterling to the firm's finance division, deepening its U.S. capital markets and restructuring offerings in New York.
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October 28, 2024
MVP: Sullivan & Cromwell's Cathy Clarkin
Sullivan & Cromwell LLP partner Cathy Clarkin steered multibillion-dollar capital raises that funded big acquisitions for energy producer Enbridge Inc. and Fulton Bank's owner over the past year, as well as advising underwriters on Goldman Sachs' preferred stock and debt offerings totaling $15.5 billion to bolster the investment bank's balance sheet, earning her a spot as one of the 2024 Law360 Capital Markets MVPs.
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October 28, 2024
Paul Hastings Adds REIT Partners In Boston, Chicago
Paul Hastings LLP announced Monday that a pair of experienced real estate attorneys who have worked on some of the industry's largest initial public offerings have joined its Boston and Chicago offices as partners — additions the firm said are part of a strategic focus on capital markets.
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October 25, 2024
Sports Co. Says SEC's $4M Damages Bid Spells Disaster
A multimillion-dollar securities fraud judgment against two companies linked to a virtual sports trading platform would be disastrous for the already-struggling organizations, their attorney argued before a D.C. federal judge Friday.
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October 25, 2024
Failed Pot-Friendly Neobank Exec Says Court Must Hold Cash
Dozens of "defrauded businesses" are left without the cash they deposited into a defunct cannabis-focused "neobank," the former chief executive said when urging an Oregon federal court not to earmark the remaining money left in accounts to just one ripped-off cannabis company.
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October 25, 2024
SEC Wants PE Firm's 'Fishing Expedition' Claims Paused
The U.S. Securities and Exchange Commission has asked a Texas federal judge to pause a real estate-focused private equity fund's suit alleging that the regulator subjected it to an unconstitutional "fishing expedition" outside its regulatory purview.
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October 25, 2024
FTX Reaches $228M Deal With Crypto Co. Bybit
The FTX bankruptcy estate reached a deal worth about $228 million to resolve its lawsuit against cryptocurrency exchange Bybit and the firm's investment arm, Mirana Corp., that alleged they unfairly jumped the line to withdraw funds during FTX's meltdown in late 2022 and held the estate's own funds hostage.
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October 25, 2024
Va. Man Gets 7½ Years For $15M Gov't Contract Investor Scam
A Virginia man was sentenced Friday to over seven years in prison for defrauding dozens of investors out of $15 million by misleading them into believing that his company had millions of dollars in contracts with federal and state government agencies.
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October 25, 2024
Glocal, UpHealth May Settle $115M Award Feud
Indian healthcare services platform Glocal and bankrupt digital health services company UpHealth may be on the verge of resolving their bitter dispute over an ill-fated merger that resulted in a $115 million arbitral award, Glocal has informed an Illinois federal court in a recent request to stay enforcement proceedings.Â
Expert Analysis
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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Amid SEC Rule Limbo, US Cos. Subject To ESG Regs In EU
Though the U.S. Securities and Exchange Commission is facing legal challenges to its climate-disclosure rulemaking, the implementation of the Corporate Sustainability Reporting Directive in the European Union will force U.S. companies to comply with exactly the kinds of ESG disclosures that are not yet mandated in the U.S., say attorneys at Squire Patton.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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6 Considerations To Determine If A Cyber Incident Is Material
The U.S. Securities and Exchange Commission's recent guidance on material cybersecurity incidents covers a range of ransomware scenarios, from a company paying a sum and regaining operations to recovering payment via cyberinsurance, but makes it clear that no single factor determines whether a cybersecurity incident is material, say attorneys at Troutman Pepper.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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Carbon Offset Case A Win For CFTC Enviro Fraud Task Force
An Illinois federal court's decision in Commodity Futures Trading Commission v. Ikkurty — earning the CFTC a sizeable monetary award that will likely incentivize similar enforcement pursuit — shows the impact of the commission's Environmental Fraud Task Force, say attorneys at Steptoe.
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Whistleblowers Must Note 5 Key Differences Of DOJ Program
The U.S. Department of Justice’s recently unveiled whistleblower awards program diverges in key ways from similar programs at other agencies, and individuals must weigh these differences and look first to programs with stronger, proven protections before blowing the whistle, say Stephen Kohn and Geoff Schweller at Kohn Kohn.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Foreign Threat Actors Pose Novel Risks To US Tech Cos.
A recent bulletin jointly issued by several U.S. intelligence agencies warns technology startups and the venture capital community about national security risks posed by foreign threat actors, so companies interested in raising foreign capital should watch for several red flags, say Robert Friedman and Jacob Marco at Holland & Knight.
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Open Questions 3 Years After 2nd Circ.'s Fugitive Ruling
The Second Circuit’s 2021 decision in U.S. v. Bescond, holding that a French resident indicted abroad did not meet the legal definition of a fugitive, deepened a circuit split on the fugitive disentitlement doctrine, and courts continue to grapple with the doctrine’s reach and applicability, say attorneys at Lankler Siffert.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Crypto Regs Could See A Reset Under The Next President
Donald Trump has taken a permissive policy stance favoring crypto, while Kamala Harris has been silent on the issue, but no matter who wins the presidential election, we may see a more lenient regulatory climate toward the digital currency than from the Biden administration, says Liam Murphy at McKool Smith.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Key Concerns To Confront In FDIC Brokered Deposit Proposal
Banks and fintech companies should note several fundamental issues with the Federal Deposit Insurance Corp.'s recent proposal to widen how it classifies brokered deposits, an attempt to limit prudential risk that could expose the industry and underbanked consumers who rely on bank-fintech apps to widespread unintended consequences, say attorneys at Gibson Dunn.
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4 Steps To Address New Sanctions Time Bar Extension
Recent guidance from the Office of Foreign Assets Control clarifies details of the newly extended statute of limitations for civil and criminal enforcement of U.S. sanctions law, so compliance teams should implement key updates, including to lookback periods and recordkeeping policies, say attorneys at Freshfields.