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Capital Markets
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January 16, 2025
DOL Proposes Rule On Valuing Stock For Purchase By ESOPs
The U.S. Department of Labor proposed a rule Thursday to help plan managers determine the value of company stock for purchase by an employee stock ownership plan while also withdrawing a previous rule that the DOL proposed in 1988 but never finalized.
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January 15, 2025
DeFi Upstart Brings On Seasoned Crypto Legal Chief
Veteran crypto in-house attorney Rebecca Rettig will take on the chief legal officer role at Jito Labs, a developer of products on the Solana blockchain, as the firm's first legal hire, the company announced Thursday.
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January 15, 2025
Wells Fargo Unit Sued Over Ex-Rep's EB-5 Investment Scheme
A Wells Fargo subsidiary has been hit with a suit in Nevada federal court by an attorney and real estate developer who claims she and several other entities were hit with a U.S. Securities and Exchange Commission enforcement action because the Wells Fargo subsidiary and one of its former employees gave bad investment advice.
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January 15, 2025
SEC's Last-Minute Musk Suit Could Be Scuttled Under Trump
The U.S. Securities and Exchange Commission's latest lawsuit against Elon Musk is unlikely to be viewed favorably by the incoming administration of President-elect Donald Trump, which may press for a lesser penalty or even move to dismiss the case outright, attorneys told Law360 on Wednesday.
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January 15, 2025
SEC Says Restaurant Tech Co. Misled Investors On AI Product
The U.S. Securities and Exchange Commission reached a non-monetary settlement with Presto Automation Inc. to resolve claims the restaurant technology company made false and misleading statements about aspects of its artificial intelligence product, which uses AI-assisted speech recognition technology to automate aspects of drive-thru order taking at quick-service restaurants.
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January 15, 2025
SEC Fines Advisers For Link To Alleged $410M IPO Fraud
Three investment adviser representatives have agreed to pay the U.S. Securities and Exchange Commission nearly $540,000 to end the regulator's claims that they acted as unregistered brokers while soliciting investors for a private equity firm accused of defrauding investors in a $410 million pre-IPO share scheme.
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January 15, 2025
SEC Dings Pharma Co., Ex-CFO Over Prescription Scheme
The U.S. Securities and Exchange Commission announced it has settled claims against bankrupt DMK Pharmaceuticals Corp. and its ex-chief financial officer over their alleged role in a fraudulent scheme to generate revenues using illegal prescriptions for horse medications.
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January 15, 2025
Tenn. Judge Says PCAOB Authority Challenge Belongs In DC
A Tennessee federal judge on Wednesday transferred a certified public accountant's constitutional challenge against the Public Company Accounting Oversight Board to Washington, D.C., finding the board's headquarters, regulatory actions and related cases in that district made it the more appropriate venue.
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January 15, 2025
Crypto Co. Kraken's Legal Chief Says He's Stepping Down
The legal head of Kraken announced Wednesday that he is stepping down as chief legal officer and stepping into a senior adviser role that will see him build a global advisory council at the crypto exchange.
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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.
Expert Analysis
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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UCC Article 12 Offers Banks A Chance To Dive Into 'DePINs'
The 2022 update to Article 12 of the Uniform Commercial Code, which provides a legal framework for decentralized physical infrastructure networks, could offer trade and commodity finance banks attractive opportunities, like the energy-related DePIN projects that have recently made headlines, says Chris McDermott at Cadwalader.
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Short-Seller Implications Of 10th Circ.'s Overstock Decision
The Tenth Circuit's Oct. 15 decision in Overstock Securities Litigation provides clarity on the pleading standard for a market manipulation claim under the Exchange Act, and suggests that short sellers might not be able to rely on the fraud-on-the-market presumption typically invoked by securities plaintiffs, say attorneys at Paul Weiss.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Crypto.com's Suit Against SEC Could Hold Major Implications
Crypto.com's recent lawsuit against the U.S. Securities and Exchange Commission could affect the operation and regulation of crypto markets in the U.S., potentially raising more questions about the SEC's authority to regulate the industry when it's unclear whether another agency is ready to assume it, say attorneys at McGuireWoods.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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SEC Fine Shows Risks Of Nonpublic Info In X, LinkedIn Posts
The U.S. Securities and Exchange Commission recently announced a settlement with DraftKings over charges arising from posting material nonpublic information on the CEO's social media accounts, highlighting that information posted to company websites and social media sites does not automatically qualify as "publicly disclosed" for purposes of Regulation FD, say attorneys at O'Melveny.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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CFTC Anti-Fraud Blitz Is A Warning To Carbon Credit Sellers
With its recent enforcement actions against a carbon offset project developer and its senior executives for reporting false information about the energy savings of the company's projects, the Commodity Futures Trading Commission is staking out its position as a primary regulator in the voluntary carbon credit market, say attorneys at Morgan Lewis.
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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.