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Securities
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March 25, 2025
GOP-Led House Committee Mulls Bills To Ease Capital Raising
The U.S. House of Representatives Financial Services Committee on Tuesday debated bills that would ease rules governing private and public securities offerings, marking Congress' latest push to deregulate capital markets under President Donald Trump's second term.
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March 25, 2025
Edison Shareholder Latest To Sue Utility Brass Over Eaton Fire
Southern California's Eaton Fire could have been prevented had directors and officers of Southern California Edison's parent company not breached their duty to mitigate fire risks, especially in light of the public utility's "unfortunate long history" of improperly maintaining equipment, according to a new derivative shareholder filed in California state court.
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March 25, 2025
FDIC Will Seek To 'Eradicate' Its Use Of Reputation Risk
The Federal Deposit Insurance Corp. plans to "eradicate" the concept of reputation risk from its oversight of banks and is working to take its approach to digital assets in "a new direction," the agency's acting chief has told Congress.
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March 25, 2025
FINRA President Hints At Offloading Arbitration Oversight
The president of the Financial Industry Regulatory Authority said Tuesday that he's considering whether another entity should take up the brokerage regulator's arbitration oversight, questioning whether it's an appropriate function for FINRA to continue running.
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March 25, 2025
AI Clean Energy Co.'s Execs Get Shareholder Suit Axed
Leaders of artificial intelligence-driven clean energy company Stem Inc. have avoided, for now, a suit accusing them of misleading investors ahead of a merger, with the court ruling the suit is a "puzzle pleading" that does not sufficiently justify why certain statements should be considered fraudulent.
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March 25, 2025
Delaware Legislature Passes Divisive Corporate Law Rework
Delaware lawmakers overwhelmingly approved and sent to the state's governor Tuesday legislation that eases restrictions on some conflicted corporate acts and limits some stockholder document inspection demands, after House members overwhelmingly shot down five amendments aimed at limiting the measure's reach.
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March 25, 2025
Pension Seeks To Opt Class Out Of Cutera Ch. 11 Releases
A pension fund heading up a class action against skin care technology group Cutera has urged a Texas bankruptcy court to find the shareholder has authority to opt all class members out of the company's Chapter 11 plan.
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March 25, 2025
Ripple Labs To Pay SEC $50M To End Case, Legal Chief Says
Ripple Labs legal chief Stuart Alderoty said Tuesday the cryptocurrency firm will pay the U.S. Securities and Exchange Commission a $50 million civil penalty to resolve the agency's landmark enforcement action, or a fraction of the $125 million fine that a federal court originally imposed upon it over past unregistered institutional token sales.
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March 25, 2025
3D Printing Tech Co. Wins Chancery Order For Merger Closing
Delaware's chancellor issued a short-fuse post-trial order late Monday giving high-tech electronics board maker Nano Dimensions 48 hours to secure a national security agency agreement needed to acquire Israeli 3D printing defense contractor Desktop Metal.
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March 24, 2025
Google Pares Back Investors' Suit Over Antitrust Probe
A California federal judge Monday allowed investors to move forward with a securities fraud claim against Google, its CEO Sundar Pichai and parent company Alphabet Inc. over an allegedly false statement to Congress in 2020 about the fairness of ad auctions, but tossed the rest of the suit for good.
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March 24, 2025
Wells Fargo Loses Bid To Toss Suit Over $300M Ponzi Scheme
A Florida federal judge on Monday adopted a magistrate judge's recommendation to deny Wells Fargo's bid to toss two retirees' putative class action accusing the bank of aiding and abetting a $300 million Ponzi scheme that deceived more than 1,000 investors, mostly elderly investors.
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March 24, 2025
Bank Groups Take Aim At Fed's Stress-Test Methodology
Top bank trade groups are pressing their Ohio federal court challenge to the Federal Reserve Board's stress tests of big banks, asking for a ruling that would force major changes to the way the annual assessments of firm resilience are designed and executed.
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March 24, 2025
Feds, Javice Rest In Trial Over JPMorgan's $175M Frank Buy
Manhattan federal prosecutors and Charlie Javice on Monday both wrapped up their cases in the trial of the former Frank CEO and another executive, who are accused of tricking JPMorgan into buying the education startup for $175 million based on false information.
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March 24, 2025
Expensify Beats Investor Claim Over CEO's Pro-Biden Email
An Oregon federal judge said Monday that she agreed to trim claims in a shareholder suit accusing Expensify of propping up its initial public offering by hiding the details of a new pricing strategy and effects of statements its CEO made urging customers to vote for President Joe Biden in the 2020 election.
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March 24, 2025
Live Nation Inks $20M Deal Over Swift Tour-Tied Investor Suit
Investors suing Live Nation Entertainment Inc. have asked a California federal judge to approve a $20 million deal ending claims that the company made misleading statements about its operations when news of alleged anticompetitive practices with Ticketmaster caused stock prices to drop following the tickets sales debacle for Taylor Swift's The Eras Tour.
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March 24, 2025
FINRA Fines Pa. Broker-Dealer $1M Over Muni Bond Sales
A Pittsburgh-based brokerage has agreed to penalties and disgorgement totaling over $1 million to resolve Financial Industry Regulatory Authority claims it got undue order priority for certain new municipal bond orders by failing to mention those orders were for its own dealer account.
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March 24, 2025
'Enough Is Enough': Tornado Cash Users Demand Judgment
Challengers to the Treasury Department's now-dissolved sanctions of crypto mixer Tornado Cash on Monday urged a Texas federal judge to make clear that the designation was unlawful despite the government's claims that the case is moot now that it has removed Tornado Cash from its blocked persons list.
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March 24, 2025
Bread Financial Gets Investor's Spinoff Suit Tossed For Good
Bread Financial Holdings Inc. and some of its executives have beaten a shareholder suit alleging that they tried to defraud investors by concealing issues with now-bankrupt spinoff company Loyalty Ventures, with a court ruling that the defendants had made necessary disclosures to investors.
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March 24, 2025
Kenvue, J&J Must Face Investor Suit Over FDA Concerns
Consumer health products business Kenvue Inc. and former parent company Johnson & Johnson cannot escape a consolidated lawsuit accusing the companies of failing to warn investors about the potential ineffectiveness of leading products like Tylenol and Sudafed ahead of Kenvue's initial public offering, a New Jersey federal judge ruled on Monday.
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March 24, 2025
Teladoc Beats Investor Suit For Good On 2nd Circ. Remand
A New York federal judge has tossed, for good, a shareholder class action against Teladoc Health Inc. and its top brass that alleged they made misleading statements about the success of Teladoc's merger with another health company, finding the investors failed to plead that any of the remaining misleading statements were made intentionally or recklessly.
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March 24, 2025
Skadden, Latham Lead Crypto Platform EToro's IPO Filing
Crypto-friendly trading platform eToro Group Ltd. on Monday publicly filed its long-awaited plans for an initial public offering, represented by Skadden Arps Slate Meagher & Flom LLP and underwriters' counsel Latham & Watkins LLP.
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March 24, 2025
Mass. Wants Info On Robinhood's March Madness Contracts
Massachusetts' secretary of state has issued a subpoena to Robinhood Markets Inc. related to the trading platform's sporting event contracts tied to this year's March Madness tournaments, officials said Monday.
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March 24, 2025
Chancery OKs Paramount Global Docs Suit For Interim Appeal
Citing unsettled issues covering the use of confidential sources and pre- or post-petition evidence in stockholder books and records cases, a Delaware vice chancellor on Monday asked Delaware's Supreme Court for mid-case review of a decision that revived a Paramount Global records demand suit.
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March 24, 2025
Chancery Won't Restart Disputed Bitcoin ATMs For Now
Delaware's Court of Chancery refused on Monday to order reactivation of dozens of bitcoin cryptocurrency ATM kiosks shut down by an Iowa grocery chain after that state's attorney general sued Bitcoin Depot and a similar operation for alleged scamming of users.
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March 24, 2025
Investors Blame Electrotherapy Co.'s Practices For Stock Drop
Electrotherapy device maker Zynex Inc. faces a proposed investor class action claiming it harmed shareholders after it was booted from at least one insurer network for U.S. military members, allegedly due to oversupplying its customers.
Expert Analysis
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Where Payments Law And Regulation Are Headed In 2025
The Trump administration will likely bring significant changes to payments regulations in 2025, but maintaining internal compliance efforts in the absence of robust federal oversight will remain key as state authorities and private plaintiffs step into the breach, say attorneys at Stinson.
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How Decline Of Deference Will Affect Trump Policymaking
An administrative law regime without Chevron deference may limit the Trump administration’s ability to implement new policies in the short term, but ultimately help it in the long term, and all parties with an interest in regulatory changes will have to take a fresh approach to litigation, say attorneys at Covington.
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5 Evolving Concerns For Family Offices In 2025
Complex regulatory changes and emerging operational risks will force family offices to stay on their toes in 2025, with timely action particularly necessary to address several tax and reporting developments that may affect their investments and business operations, say attorneys at Morgan Lewis.
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Ohio Banking Brief: All The Notable Legal Updates In Q4
Ohio's banking and financial services sector saw several significant developments in the fourth quarter of 2024, including a landmark Uniform Commercial Code ruling, adjustments to the state's Homebuyer Plus Program and the launch of the state's first women-led bank, says attorney Alex Durst.
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2024 Was A Banner Year For Shareholder Activism
Shareholder activism campaigns in 2024 continued at an elevated pace globally, with activist investors exploiting valuation gaps and pushing aggressively for corporate governance reforms, including the ouster of many companies' chief executives, a trend that could continue once President-elect Donald Trump takes office, say attorneys at Sidley.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Impact Of Successful Challenges To SEC's Rulemaking Ability
In 2024, the U.S. Securities and Exchange Commission faced significant legal challenges to its aggressive rulemaking agenda as several of its rules were vacated by the Fifth Circuit, which could hinder the SEC's ability to enact rules extending beyond express statutory authority in the future, say attorneys at Debevoise.
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A Look At PCAOB's Record-Breaking Enforcement In 2024
The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
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2 Cases May Enlighten UK Funds' Securities Litigation Path
Following recent nine-figure settlements in securities class actions against Apple and Under Armour, U.K. pension funds may increasingly lead U.S. shareholder derivative suits, advocating for transparency, better risk management and stronger governance practices, say lawyers at Labaton Keller.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Takeaways From SEC's Mixed Results In '24 Crypto Litigation
Though the U.S. Securities and Exchange Commission's new leadership seems likely to create a more favorable cryptocurrency regulatory environment, it must also confront the consequences of, and lingering questions raised by, the SEC's 2024 policy of investigating and charging cryptocurrency trading platforms for operating unregistered exchanges, say attorneys at Dechert.
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Predicting What's Next For SEC By Looking At Past Dissents
While Paul Atkins' nomination to be the next chair of the U.S. Securities and Exchange Commission has taken center stage, an analysis of Republican Commissioners Hester Peirce and Mark Uyeda's past votes and dissents provides a preview of where enforcement may shift in the new administration, say attorneys at Gibson Dunn.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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What 2024's Noncompete Turmoil Means For Banks In 2025
A look back at the most significant legal challenges to the enforceability of various restrictive covenants like noncompete and nonsolicitation agreements in 2024 can help financial institutions address the use of these critical tools this year, say attorneys at Maynard Nexsen.