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Securities
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October 21, 2024
Ontrak Jury Lacked Key Compliance Instruction, Judge Told
Counsel for convicted Ontrak founder Terren Peizer urged a California federal judge Monday to grant a new trial in the healthcare executive's novel insider trading case, saying jurors weren't properly instructed that they should acquit if Peizer's $20 million share sale was blessed by a compliance officer.
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October 21, 2024
MVP: Simpson Thacher's Craig S. Waldman
Craig Waldman of Simpson Thacher & Bartlett LLP helped secure a ruling of first impression on behalf of Bumble Inc. that enabled the company to fight off an investor suit challenging its unique voting structure, earning him a spot as one of the 2024 Law360 Securities MVPs.
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October 18, 2024
Law360 MVP Awards Go To Top Attys From 74 Firms
The attorneys chosen as Law360's 2024 MVPs have distinguished themselves from their peers by securing hard-earned successes in high-stakes litigation, complex global matters and record-breaking deals.
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October 18, 2024
Carrier To Pay $615M Over Kidde-Fenwal Fire Foam Claims
Carrier Global Corp. revealed in a U.S. Securities and Exchange Commission filing Friday that it will pay at least $615 million as part of a settlement in connection to its ownership of bankrupt Kidde-Fenwal Inc., which faces multidistrict litigation arising from its manufacture of firefighting foam with deadly "forever chemicals."
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October 18, 2024
Downstream Lumentum Tippee Settles SEC Claims For $443K
A New Jersey man will pay nearly $443,000 to end the latest insider trading allegations made by the U.S. Securities and Exchange Commission involving the 2021 acquisition of photonics company NeoPhotonics by optical product maker Lumentum Holdings Inc.
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October 18, 2024
How Dickinson Wright Attys Won A Victory Before The SEC
It took more than four years and possibly an alleged slip-up by the U.S. Securities and Exchange Commission's enforcement staff for Dickinson Wright PLLC attorneys to secure what they said is a first-of-its-kind ruling by the agency when it reversed a trading suspension against a firm client over the objections of the SEC's own staff.
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October 18, 2024
Consultant Ducks Prison For Helping OneCoin Launder $35M
A New York federal judge declined on Friday to sentence a co-founder of business consultancy and investment firm InterAmerican Group to any time in prison for his role in a scheme to launder about $35 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scam.
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October 18, 2024
Consumer Capital One-Discover Suit Paused For Gov't Review
A Virginia federal judge hit pause Friday on a private cardholder proposed class action challenging Capital One's planned $35 billion acquisition of Discover Financial Services, agreeing with the companies that it's best to let still-pending review by banking regulators play out first.
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October 18, 2024
SEC Updates Binance Complaint As Judge Limits Discovery
The U.S. Securities and Exchange Commission has updated its case against Binance with new allegations attempting to draw similarities between the crypto exchange and traditional securities platforms, but a Washington, D.C., federal judge made clear that discovery on those points and others won't move forward for the time being.
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October 18, 2024
Chancery Keeps Better Therapeutics SPAC Suit Alive
A Delaware vice chancellor on Friday refused to dismiss a suit challenging the take-public merger of now-defunct Better Therapeutics, saying the investors have sufficiently pleaded direct breach of fiduciary duty claims against the medical technology business' special purpose acquisition company partner and its directors.
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October 18, 2024
US Fights PetroSaudi Bid To Limit $380M Seizure
The U.S. on Friday slammed a PetroSaudi company's request for a California federal court to clarify that officials can only seize 5% of a $380 million award, calling the request an improper attempt at revisiting a 3-year-old court ruling.
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October 18, 2024
Hong Kong Regulators Unveil Plans To Quicken IPOs
Hong Kong regulators and stock exchange officials announced a plan on Friday to accelerate their time frames for reviewing initial public offerings, a bid to improve the region's attractiveness for new listings amid intense global competition.
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October 18, 2024
Credit Suisse, PwC Fight Bondholders' Separate Merger Suits
Credit Suisse and PwC have urged a New York federal judge to toss a proposed class action alleging that they concealed the impact of quarterly losses and the bank's inability to retain client funds leading up to its takeover by UBS AG, saying the plaintiff launched the suit to circumvent its rejected bid to be lead plaintiff in a similar suit.
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October 18, 2024
Weedmaps' Parent Co. Faces Investor Suit After SEC Fine
The parent company of cannabis tech company Weedmaps was hit with an investor's proposed class action alleging shareholders were damaged following the U.S. Securities and Exchange Commission's announcement that it fined the company $1.5 million for allegedly making misleading statements about its monthly active users.
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October 18, 2024
Crypto Coder Asks 2nd Circ. To Delay Expert Witness Reveal
The founder of cryptocurrency service provider Tornado Cash urged the Second Circuit on Friday to pause a district court judge's order for him to disclose who he might call as an expert witness at an upcoming money laundering and sanctions trial.
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October 18, 2024
Paramount-Skydance Merger Triggers Class Atty Fight In Del.
A five-firm stockholder attorney team investigating the proposed $7 billion Paramount Global-Skydance Media LLC merger has urged Delaware's Court of Chancery to put the brakes on another firm's motion for co-lead plaintiff appointment for a deal challenge, arguing that the move would reward a rush to the courthouse.
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October 18, 2024
Allianz, Santander End Shareholder Suit Coverage Fight
Allianz has agreed to drop its request in Massachusetts federal court for a ruling that it is not obligated to cover Santander Holdings' defense in a now-settled 2022 shareholder lawsuit, a recent filing showed.
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October 18, 2024
Conn. Brother Wants No Jail Time In Brazilian Oil Scheme
A Connecticut man who pled guilty to laundering money in a Brazilian oil bribery scheme that also ensnared his brother says he should not be sentenced to jail time because he needs cancer treatments and has been "devastated financially."
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October 18, 2024
JPMorgan Says Trial 'Needless' After Couple Loses $20M Suit
JPMorgan Chase Bank NA told a Massachusetts federal judge Thursday there is no need for a two-week trial on the bank's counterclaims after it scored a pretrial win in a suit brought by an elderly couple who said bad investments cost them $20 million.
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October 17, 2024
SEC Fines Broker-Dealer PHX, Sues Rep Over Reg BI Claims
The U.S. Securities and Exchange Commission has fined broker-dealer PHX Financial Inc. and sued one of its registered representatives over claims that the representative improperly advised a handful of retail clients to engage in a trading strategy that caused them massive losses but generated significant fees and commissions for the firm and the representative.
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October 17, 2024
Trump Media Investors Get Prison For Insider Trading
A New York federal judge on Thursday sentenced a Florida venture capitalist to over two years in prison for insider trading on confidential plans to take the media company behind former President Donald Trump's Truth Social network public, a scheme that netted the investor and his brother nearly $23 million.
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October 17, 2024
Acadia Hid Wrongful Detainment Of Patients, Investor Claims
Behavioral healthcare provider Acadia Healthcare was hit with a proposed securities class action in Tennessee federal court alleging that investors were damaged after The New York Times published an investigative report saying the company detained patients in its psychiatric facilities for financial gain rather than out of medical necessity.
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October 17, 2024
Stockholders Sue Tech Co. Controllers Over Equity Shuffle
Stockholders of materials science venture Footprint International have sued the company, several current and former board members and its controlling shareholders in Delaware Chancery Court, seeking damages for allegedly conflicted refinancing moves that stripped regular shareholders of their interests and rights.
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October 17, 2024
CFTC Says Court 'Erred At Every Turn' In Election Betting Suit
The U.S. Commodity Futures Trading Commission told the D.C. Circuit that the district court "erred at every turn" when it allowed trading platform KalshiEx LLC to offer event contracts based on the outcome of U.S. elections.
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October 17, 2024
DOL, Red States Spar Over Loper Bright Impact On ESG Rule
Conservative-led states suing the U.S. Department of Labor have told a Texas federal court that the end of the Chevron doctrine boosts their bid to end a rule allowing retirement plan advisers to consider environmental, social and governance factors in investment choices, while the DOL argued that it deserves another summary judgment win.
Expert Analysis
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Supreme Court's ALJ Ruling Carries Implications Beyond SEC
In its recent Jarkesy opinion, the U.S. Supreme Court limited the types of cases that can be tried before the U.S. Securities and Exchange Commission's in-house administrative law judges, setting the stage for challenges to the constitutionality of ALJs across other agencies, say Robert Robertson and Kimberley Church at Dechert.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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Series
After Chevron: No Deference, No Difference For SEC Or CFTC
The Chevron doctrine did not fundamentally alter the interplay between the courts and the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission in the development of the securities and commodities laws — and its demise will not do so either, says Dan Berkovitz at Millennium Management.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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Roundup
After Chevron
Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 36 different rulemaking and litigation areas.
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Opinion
Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Proposed Customer ID Rule Could Cost Investment Advisers
A rule recently proposed by FinCEN and the U.S. Securities and Exchange Commission to make financial advisers collect more customer information parallels an anti-money laundering and counterterrorism rule proposed this spring, but firms may face new compliance costs when implementing these screening programs, say attorneys at Lowenstein Sandler.
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What Passage Of House Crypto Bill Could Mean For Industry
While the prospects of the Financial Innovation and Technology for the 21st Century Act, which recently passed the House in a bipartisan fashion, becoming law remain murky, the manner of its passage may give crypto markets a real cause for hope, say Neel Maitra and Dale Beggs at Dechert.
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What 2 Rulings On Standing Mean For DEI Litigation
Recent federal court decisions in the Fearless Fund and Hello Alice cases shed new light on the ongoing wave of challenges to diversity, equity and inclusion initiatives, with opposite conclusions on whether the plaintiffs had standing to sue, say attorneys at Moore & Van Allen.
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Series
Skiing And Surfing Make Me A Better Lawyer
The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.
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Advisers Can Avoid Gaps In SEC Marketing Rule Compliance
A recent risk alert from the U.S. Securities and Exchange Commission and the enforcement history of the marketing rule indicate that advisers have encountered persistent difficulties in achieving compliance — but there are steps advisers can take to mitigate risks of violations, say Scott Moss and Jimmy Kang at Lowenstein Sandler.
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Class Actions At The Circuit Courts: June Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers two recent decisions from the Third and Tenth Circuits, and identifies practice tips around class action settlements and standing in securities litigation.
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Unpacking The Circuit Split Over A Federal Atty Fee Rule
Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.