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Securities
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March 07, 2025
SEC Reopens Defunct Broker's Decade-Old NYSE Appeal
The U.S. Securities and Exchange Commission has issued a lengthy order reopening disciplinary proceedings against a clearing broker penalized by the New York Stock Exchange more than a decade ago, saying certain short trades may not have been prohibited by a recession-era trading freeze.
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March 07, 2025
Cloud Network Co. Brass Face Suit Over Lockdown-Era Glut
Officers and directors of cloud-based computer networking equipment maker Extreme Networks Inc. face shareholder derivative claims that they hurt investors by concealing how a glut of COVID-19 lockdown-era customer orders cast a yearslong shadow on its revenue.
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March 07, 2025
Goodyear Must Include Microplastic Proposal In Proxy
The U.S. Securities and Exchange Commission has rejected Goodyear Tire & Rubber Co.'s bid to exclude from its annual proxy statement a shareholder proposal calling for goals and timelines related to reducing tire wear shedding and subsequent microplastic pollution.
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March 07, 2025
Oscar Health Beats Shareholder Suit Over IPO Disclosures
Health insurance company Oscar Health Inc. has escaped a proposed investor class action accusing it of making omissions in its registration statement ahead of its 2021 initial public offering, with the court ruling that the plaintiffs have not shown that the defendants misled investors about the adequacy of Oscar's internal controls.
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March 07, 2025
Robinhood To Pay $30M To Settle FINRA Supervisory Claims
Two Robinhood units on Friday agreed to pay $29.75 million to settle a sprawling series of supervisory and disclosure failures in a case brought by the Financial Industry Regulatory Authority, including that they failed to establish proper protocols to curb money laundering and give customers accurate disclosures about a particular equities strategy.
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March 07, 2025
Boeing Investors Certified As Class In 737 Blowout Suit
A Virginia federal judge on Friday certified a class of Boeing investors in a securities fraud suit accusing the aviation giant of making false statements about the safety of its 737 Max fleet.
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March 07, 2025
Tariffs, Diversity And DOGE Dominate Trump 2.0 'Risk Factors'
Public companies are busily reworking risk disclosures since the arrival of President Donald Trump's second administration, seeking to walk a fine line of being upfront with investors about potential threats to business despite vast legal and policy uncertainties.
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March 07, 2025
Pa. Bitcoin Miner Sues In Del. Alleging Host Co. Padlocking
A bitcoin mining venture has sued its western Pennsylvania hosting company in Delaware's Court of Chancery, accusing the host of blocking access to nearly 22,000 mining servers after the venture owners terminated a contract and announced plans to move the equipment.
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March 07, 2025
Bed Bath & Beyond Investors Can't Move Judge On Class Cert.
Bed Bath & Beyond shares did not trade on an efficient market during the class period, a Washington, D.C., federal judge confirmed again, refusing to reconsider his class certification denial in a suit from the now-bankrupt retailer's investors who alleged they were misled by company executives and a billionaire investor.
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March 07, 2025
Investment Adviser Charged In 2-Year Client Swindle Scheme
Federal prosecutors in Chicago have charged a suburban investment adviser with wire fraud for allegedly stealing thousands of dollars from clients by convincing them to invest in nonexistent business opportunities.
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March 07, 2025
Tulane Panel Clashes Over Activist Investor Motivations
There's no debate that activist investor campaigns have increasingly taken aim at CEOs, but attorneys on a Friday panel at the annual Tulane Corporate Law Institute were sometimes at odds on the activists' motivations.
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March 07, 2025
FINRA Fines Baird For Reg BI Violations At Subsidiary
Broker-dealer Robert W. Baird & Co. agreed to pay over $650,000 in combined penalties and restitution to settle Financial Industry Regulatory Authority claims that its subsidiary charged excessive fees and violated Regulation Best Interest by enrolling customers in programs they were already paying for.
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March 07, 2025
Clifford Chance Adds Ex-Latham Energy Financing Pro In NY
Energy and infrastructure financing attorney Gianluca Bacchiocchi has returned to Clifford Chance LLP as a partner on its global financial markets team after a four-year run at Latham & Watkins LLP.
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March 06, 2025
Trump Executive Order Creates 'Strategic Bitcoin Reserve'
President Donald Trump on Thursday signed an executive order establishing a "Strategic Bitcoin Reserve" that White House crypto czar David Sacks said would hold Bitcoin forfeited in criminal or civil asset forfeiture proceedings.
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March 06, 2025
Frank Wanted Artificial Data To Ensure $175M Deal, Jury Told
A JPMorgan Chase & Co. engineering executive on Thursday told a Manhattan federal jury that Frank founder Charlie Javice and her deputy asked him to produce artificial data for millions of purported users of the education company's services, in order to induce the bank into buying the startup for $175 million.
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March 06, 2025
Amid Court Setbacks, Trump Wants Foes To Foot Legal Bills
With judges hitting the brakes on the White House's aggressive agenda, President Donald Trump on Thursday vowed to up the ante with his legal adversaries by seeking legal costs and damages if his administration ultimately prevails after initial setbacks in litigation.
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March 06, 2025
AppLovin Hit With Suit Over 'Forced Shadow Downloads'
Technology company AppLovin faces a proposed investor class action alleging it invoked "cutting-edge AI technologies" in touting growth that allegedly resulted from manipulative practices triggering forced shadow downloads of its apps.
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March 06, 2025
SEC Urged To Address Impact Of Slack Ruling On Investor Suits
Investor advocates on Thursday urged the U.S. Securities and Exchange Commission to address the growing number of companies that may be taking advantage of a recent U.S. Supreme Court ruling in order to avoid getting sued after going public.
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March 06, 2025
Del. Chancery Fast-Tracks Review Of $8B Paramount Merger
Delaware's chancellor on Thursday rejected Paramount shareholders' bid for a temporary restraining order that sought to block its proposed $8.2 billion sale to Skydance Media, but she agreed to expedite the proceeding at a "break-neck pace" over breach of fiduciary duty claims involving Paramount's response to an alternative $13.5 billion offer.
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March 06, 2025
Crypto Cos. Want Justices To Settle Venue Statute Circuit Split
A Binance-branded U.S. exchange and affiliated crypto data site CoinMarketCap have asked the U.S. Supreme Court to settle what they call a circuit split over whether a trader must show the firms had contacts in their state, or if ties to the country as a whole are enough to press a manipulation claim under the Commodity Exchange Act.
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March 06, 2025
High Court Urged To Toss $22M SEC Disgorgement Order
An investment advisory firm has asked the U.S. Supreme Court to review a First Circuit ruling that upheld an order for the firm to pay $22 million in disgorgement to the U.S. Securities and Exchange Commission, arguing that courts cannot impose disgorgement when investors have not suffered any financial harm.
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March 06, 2025
Fla. Court Told Cannabis Biz Investor Agreed Not To Sue
The CEO of an Arizona-based cannabis business on Thursday urged a Florida federal court to toss a securities fraud lawsuit brought by an investor alleging an undisclosed $13 million tax liability, saying the investor agreed not to bring claims based on whether critical nonpublic information may have been withheld.
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March 06, 2025
Coinbase Investors Ask Court To Lead Direct Listing Suit
Two new contenders have filed to lead a shareholder class action over crypto exchange Coinbase's direct listing hours after its original lead plaintiff dropped out following the Ninth Circuit's dismissal of a similar case brought against Slack Technologies.
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March 06, 2025
Del. Corporate Law Rework Under Pressure At Tulane
An attorney whose firm largely represents investors and consumers told a corporate law conference in New Orleans on Thursday that the list of plaintiff-friendly rulings that would be effectively overturned by a pending corporation law bill in Delaware "will probably be just as long as the bill itself."
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March 06, 2025
E.L.F. Beauty Hit With Investor Suit After Muddy Waters Report
Cosmetics giant e.l.f. Beauty's shareholders filed a proposed class action in California federal court on Thursday, accusing the company of overstating its revenue while hiding growing inventory issues due to inadequate sales — troubles that investment research firm Muddy Waters revealed in a November report that caused share prices to plunge.
Expert Analysis
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Del. Dispatch: Lessons From Failed Albertsons-Kroger Merger
The allegations in Albertsons' lawsuit against Kroger following the grocery stores' blocked merger demonstrate how a target company can best ensure that a buyer timely and effectively complies with its obligations to pursue the necessary regulatory approvals for a deal, say attorneys at Fried Frank.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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Future Of Crypto-Asset Classification Is In 2nd Circ.'s Hands
A definitive ruling from the Second Circuit in a rare interlocutory appeal in the U.S. Securities and Exchange Commission's ongoing court battle with Coinbase could finally establish clear guidelines on the classification of digital assets, influencing how they are regulated and traded in the U.S., say attorneys at Manatt.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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More Environmental Claims, More Greenwashing Challenges
As companies prepare for the 2025 greenwashing landscape, they should take heed of a D.C. appellate decision that shows that environmental claims are increasingly subject to attack and provides plaintiffs with a playbook for challenging corporate claims of sustainability, say attorneys at Sidley.
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And Now A Word From The Panel: How MDLs Fared In 2024
A significant highlight of the Judicial Panel on Multidistrict Litigation's practice during 2024 was the increase in the percentage of new MDL petitions granted by the panel, with 25 granted and only eight denied — one of the highest grant rates in years, says Alan Rothman at Sidley.
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Assessing Gary Gensler's Legacy At The SEC
Gary Gensler's tenure as U.S. Securities and Exchange Commission chair is defined by a record of commonsense regulation in some areas and social activism in others, and by increasing judicial skepticism about the SEC's authority to fulfill its regulatory, enforcement, administrative law and adjudicatory functions, say attorneys at Arnold & Porter.
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Calif. Cannabis Decision Deepens Commerce Clause Divide
In Peridot Tree v. Sacramento, the Eastern District of California joined a growing minority of courts that have found the dormant commerce clause inapplicable to state-regulated marijuana, and the Ninth Circuit will soon provide important guidance on this issue, say attorneys at Perkins Coie.
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Takeaways From DOJ Fraud Section's 2024 Year In Review
Attorneys at Paul Weiss highlight notable developments in the U.S. Department of Justice Fraud Section’s recently released annual report, and discuss what the second Trump administration could mean for enforcement in the year to come.
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Recent SEC Actions Highlight Importance Of Filing Form D
The U.S. Securities and Exchange Commission's enforcement action against three companies last month for failing to timely file Form D is an unprecedented step that should put an end to Regulation D issuers' views that filing these forms is a technical requirement or somewhat voluntary, says Patrick McCloskey at McCloskey Law.
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The 7th Circ.'s Top 10 Civil Opinions Of 2024
Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2024, and explain how they may affect issues related to mass arbitration, consumer fraud, class certification and more.
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Kansas Bank's Suit Could Upend FDIC Enforcement Authority
Should CBW Bank's federal lawsuit in Kansas challenging the Federal Deposit Insurance Corp.'s enforcement authority gain traction with a post-Chevron U.S. Supreme Court, it could have profound implications for the FDIC and the banking industry at large, says Jack Harrington at Bradley Arant.
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End-Of-Year FCPA Enforcement Surge Holds Clues For 2025
The last three months of 2024 saw more Foreign Corrupt Practices Act enforcement actions than any quarter in the previous four years, providing lessons for companies — even as a new administration raises doubts about whether this momentum will continue, say attorneys at Norton Rose.
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What's Next For Accounting Enforcement After SEC's Big 2024
The U.S. Securities and Exchange Commission under the Trump administration will likely continue to focus enforcement efforts on many of the same accounting and auditing issues that it pursued over the past year — but other areas, such as ESG, internal controls and cryptocurrency cases, may fall out of focus, say attorneys at Debevoise.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.