Securities

  • 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.

  • 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.

  • January 15, 2025

    GE Investors' $362.5M Settlement Gets Initial Greenlight

    Investors in manufacturing giant General Electric Co. have gotten an initial nod for their proposed $362.5 million eve-of-trial deal to end long-running claims that the company fraudulently concealed cash flow problems, allegedly resulting in plummeting shares after its fiscal woes were disclosed.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • January 15, 2025

    Del. Justices Mull 'Reasonable' Effort Duty In Drug Biz Deal

    An attorney for former stockholders of Ception Therapeutics Inc. told Delaware's top court on Wednesday that a now-retired vice chancellor "asked the wrong question" in dismissing a suit alleging breaches of an agreement to use commercially reasonable efforts before abandoning a new drug prospect.

  • 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.

  • 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.

  • 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.

  • January 15, 2025

    Celsius Drink Co. Overstated Pepsi Partnership, Investor Says

    Energy drink company Celsius Holdings Inc. has been hit with a proposed shareholder class action accusing it of touting the initial success of its partnership with PepsiCo Inc. to conceal that its rapid growth rate was unsustainable.

  • 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.

  • 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.

  • 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.

  • 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.

  • January 14, 2025

    Navy Capital Fund Firm Settles SEC's AML Allegations

    Navy Capital Green Management LLC on Tuesday agreed to pay $150,000 to settle allegations from the U.S. Securities and Exchange Commission that the investment adviser made misrepresentations to investors about its anti-money laundering due diligence practices.

  • 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.

  • January 14, 2025

    TikTok Moderation Co.'s $5.5M Investor Deal Gets Initial OK

    A Florida federal judge on Tuesday gave the first green light to a $5.5 million deal between TikTok content moderation company Teleperformance and a pension fund, resolving claims that investors were harmed after investigative reports were published claiming that Teleperformance was working its staff into the ground and forcing them to watch harmful content with no support.

  • January 14, 2025

    Frank Exec Wants Fraudster Comparisons Blocked At Trial

    The founder of student financial aid startup Frank has asked a Manhattan federal judge to block prosecutors from comparing her to well-known convicted fraudsters at her upcoming trial on charges that she tricked JPMorgan Chase & Co. into buying her company for $175 million.

  • January 14, 2025

    4th Circ. Tosses Constitutional Case Against FINRA

    The Fourth Circuit on Tuesday threw out a lawsuit claiming that the Financial Industry Regulatory Authority's in-house disciplinary process is unconstitutional, ruling that it couldn't hear the case until the regulator had finalized its own ruling against the suing broker.

Expert Analysis

  • Mental Health First Aid: A Brief Primer For Attorneys

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    Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.

  • Series

    Calif. Banking Brief: All The Notable Legal Updates In Q3

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    In the third quarter of the year, California continued to be at the forefront of banking regulation as it enacted legislation on unfair banking practices and junk fees, and the state Department of Financial Protection and Innovation notably initiated enforcement actions focused on crypto-assets and student loan debt relief, say Stuart Richter and Eric Hail at Katten.

  • John Deere Penalty Shows Importance Of M&A Due Diligence

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    The U.S. Securities and Exchange Commission's recent $10 million penalty against John Deere underscores the risks of not conducting robust preacquisition due diligence and not effectively integrating a new subsidiary into the existing compliance framework, say attorneys at Ropes & Gray.

  • Enviro Policy Trends That Will Continue Beyond The Election

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    Come October in a presidential election year, the policy world feels like a winner-take-all scenario, with the outcome of the vote determining how or even whether we are regulated — but there are several key ongoing trends that will continue to drive environmental regulation regardless of the election results, say J. Michael Showalter and Samuel Rasche at ArentFox Schiff.

  • 2 High Court Securities Cases Could Clarify Pleading Rules

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    In granting certiorari in a pair of securities fraud cases against Facebook and Nvidia, respectively, the U.S. Supreme Court has signaled its intention to align interpretations of the heightened pleading standard under the Private Securities Litigation Reform Act amid its uneven application among the circuit courts, say attorneys at V&E.

  • Series

    Collecting Art Makes Me A Better Lawyer

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    The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.

  • Del. Dispatch: Cautionary Tales Of 2 Earnout Effort Breaches

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    The Delaware Court of Chancery's tendency to interpret earnout provisions precisely as written, highlighted in two September rulings that found buyers breached their shareholder obligations when they failed to make reasonable efforts to hit certain product development milestones, demonstrates the paramount importance of precisely wording these agreements, say attorneys at Fried Frank.

  • Series

    A Day In The In-House Life: Best Egg CLO Talks Power Of Prep

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    On a typical Monday in her life, Best Egg Chief Legal Officer Amy Thoreson Long chronicles a remote workday in which she makes time for everything from getting ahead on regulatory issues and researching recent Supreme Court decisions to dog walks and podcast breaks.

  • Takeaways From TOTSA Settlement And Critical CFTC Dissent

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    The U.S. Commodity Futures Trading Commission's recent settlement with TOTSA highlights the agency's commitment to enforcing market integrity and deterring manipulative practices, while Commissioner Caroline Pham's dissent to the settlement spotlights the need for transparency and consistency in enforcement actions, say attorneys at Davis Wright.

  • Litigation Inspiration: Honoring Your Learned Profession

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    About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.

  • Payward And The Secondary Crypto Transaction Confusion

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    Following orders in cases against Coinbase and Binance, the recent California federal court ruling in U.S. Securities and Exchange Commission v. Payward raises even more questions about regulation of secondary transactions involving crypto-assets, as it tries to sidestep fundamental flaws in the SEC's legal theories, say attorneys at Cahill Gordon.

  • Opinion

    AI May Limit Key Learning Opportunities For Young Attorneys

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    The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.

  • Key Takeaways From DOJ's New Corp. Compliance Guidance

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    The U.S. Department of Justice’s updated guidance to federal prosecutors on evaluating corporate compliance programs addresses how entities manage new technology-related risks and expands on preexisting policies, providing key insights for companies about increasing regulatory expectations, say attorneys at Debevoise.

  • What's In The Cards For CFTC's Election Betting Case

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    A D.C. federal judge's Sept. 12 ruling, allowing KalshiEx to offer derivative contracts trading on the outcome of the U.S. congressional elections over objections from the U.S. Commodity Futures Trading Commission, could mark a watershed moment in the permissibility of election betting if upheld on appeal, say attorneys at BakerHostetler.

  • Kubient Case Shows SEC's Willingness To Charge Directors

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    The U.S. Securities and Exchange Commission's recent fraud charges against Kubient's former CEO, chief financial officer and audit committee chair signal a willingness to be more aggressive against officers and directors, underscoring the need for companies to ensure that they have appropriate channels to gather, investigate and document employee concerns, say attorneys at Jenner & Block.

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