Securities

  • February 19, 2025

    Constitutional Claims Fail To Stop SEC Insider Trading Suit

    A Texas man must face U.S. Securities and Exchange Commission claims that he profited off of inside information about a Boston Scientific acquisition that he learned about from his domestic partner after a federal judge rejected his arguments that the regulator sued him unconstitutionally.

  • February 19, 2025

    Chancery Releases Cannabis Firm Founders From $13M Fee

    The Delaware Court of Chancery ruled that a cannabis investment firm's $39.9 million settlement in a shareholder derivative lawsuit frees it from having to pay a nearly $13 million licensing agreement for the use of Bob Marley's name.

  • February 19, 2025

    Constellation Brands Faces Investor Suit Over Profit Slump

    Alcoholic beverage company Constellation Brands Inc. has been hit with a proposed shareholder class action alleging it misled investors about attempts to revive its wine and spirits business, which were reportedly shown to be ineffective when the company announced quarterly earnings last month.

  • February 19, 2025

    'Death Knell' For SEC Dealer Rule As Regulator Drops Appeal

    The U.S. Securities and Exchange Commission on Wednesday dropped its bid to revive its expansion of the dealer definition at the Fifth Circuit after industry groups representing private funds and crypto firms successfully challenged the rule in Texas federal court last year.

  • February 19, 2025

    Casino SPAC Shareholders Sue Execs Over Failed Merger

    A public shareholder of a blank check company that failed to merge with a Philippines-based casino has accused the special purpose acquisition company's directors of orchestrating a deal process with "recklessness, deceit, and bad faith," is and seeking damages beyond the $11 million settlement the company struck in another related suit.

  • February 19, 2025

    Del.'s High-Speed Corporate Law Rework May Blunt Plaintiffs

    A fast-moving amendment of Delaware's mainstay corporation law, aimed in part at curbing big fees, limiting some breach of fiduciary claims and stemming a perceived corporate exodus, has left plaintiffs attorneys playing catch-up as the recently revealed measure heads toward a first hearing next month.

  • February 19, 2025

    Robinhood Says It Faces New Scrutiny From States, FDIC

    Online brokerage Robinhood is facing investigations from Massachusetts' state securities regulator and the Federal Deposit Insurance Corp. alongside an ongoing probe from the New York attorney general, the firm disclosed in its latest filing with the U.S. Securities and Exchange Commission.

  • February 19, 2025

    SEC Says Duo Ran $1.5M Scam To Fund Deal With Red Flags

    The U.S. Securities and Exchange Commission has accused two California insurance brokers and their firm of fraudulently raising $1.5 million from an investor and then losing the money to an overseas investment scheme that the agency said presented many red flags. 

  • February 19, 2025

    Judge Won't Halt PBM Case Over Attack On FTC Independence

    A Missouri federal judge refused to temporarily block the Federal Trade Commission's in-house case accusing pharmacy benefits managers of artificially inflating insulin prices through unfair rebate schemes, rejecting the PBMs' claims that the Trump administration's attempt to eliminate safeguards protecting FTC members from at-will presidential removal favors their attempt to stop the case.

  • February 19, 2025

    Silver Point Knocks SEC Suit Over Attorney Info Access Rules

    Investment adviser Silver Point Capital LP said it did not need to write special rules banning a now-deceased former BigLaw bankruptcy attorney from sharing information between its business units, accusing the U.S. Securities and Exchange Commission of filing a "farfetched theory of noncompliance" in a Connecticut enforcement action.

  • February 19, 2025

    3D Printing Co. Escapes Chancery Suit Over $575M Merger

    An ExOne Co. investor failed to show why the 3D printer manufacturer should have postponed a shareholder vote over its rival's purchase of the company, a Delaware vice chancellor has ruled, tossing the investor's proposed class action that alleged the company's board of directors breached its fiduciary duties.

  • February 19, 2025

    Crypto Group Urges Rollback Of IRS Broker Rule

    A coalition of members of the cryptocurrency trade group Blockchain Association urged congressional leaders Wednesday to repeal a final U.S. Treasury Department rule implementing additional reporting requirements for decentralized finance brokers.

  • February 19, 2025

    Equinix Shareholder Claims Its Board Manipulated Financials

    An Equinix Inc. shareholder lodged a derivative shareholder suit accusing the data center-focused real estate investment trust's executives of manipulating financials to dupe investors, marking the latest legal challenge to arise since an investment research firm first made the claim last year.

  • February 19, 2025

    Cintas 401(k) Class Counsel Get OK For $1.3M Fee

    Counsel for a class of 50,000 people who sued uniform supplier Cintas for mismanaging retirement benefits have been awarded $1.3 million in fees after striking a $4 million settlement with the company.

  • February 19, 2025

    Securities Group Of The Year: Winston & Strawn

    Winston & Strawn LLP secured a unanimous victory on behalf of client Macquarie Infrastructure Corp. before the U.S. Supreme Court last year, winning the firm a spot among the 2024 Law360 Securities Groups of the Year.

  • February 19, 2025

    Wu-Tang Album Owner Wants Shkreli To Pay Fees

    The crypto project that holds the only physical copy of a Wu-Tang Clan album that once belonged to Martin Shkreli has asked a Brooklyn federal court to make him pay for months of noncompliance with a preliminary injunction requiring him to account for all copies of the album he may have made.

  • February 18, 2025

    Pandemic No Excuse To Alter $150M Notes, Alter Domus Says

    An auto parts magnate and his manufacturing company should not get away with using the COVID-19 pandemic as an excuse for changing promissory notes worth $150 million in ways that deflated their value, lending agent Alter Domus LLC asserted in Michigan federal court Tuesday.

  • February 18, 2025

    Trump Exec Order Expands Control Over Independent Agencies

    President Donald Trump signed an executive order Tuesday to limit the autonomy of independent agencies such as the U.S. Securities and Exchange Commission and Federal Communications Commission by requiring them to submit draft regulations for presidential review.

  • February 18, 2025

    Coinbase Brass Face Investor Suit Over Firm's Legal Liabilities

    A Coinbase shareholder has sued the crypto exchange's executive officers and board members in New Jersey federal court on allegations they breached their fiduciary duties with disclosure failures and securities law violations that left the firm open to lawsuits and other events that jeopardized its financial condition to the detriment of shareholders.

  • February 18, 2025

    Wells Fargo Fights Class Cert. Bid In 'Sham' Hiring Case

    Wells Fargo & Co. is seeking to avoid class claims in a lawsuit accusing it of deceiving investors about its hiring practices, arguing that suing shareholders have not shown how a downturn in the bank's stock price was caused by the supposedly "sham" job interviews rather than a challenging interest rate environment.

  • February 18, 2025

    Data Science Co. Director Admits $7M Skim In Del. Hearing

    An officer and co-founder of a Hong Kong-headquartered data science company who acknowledged skimming nearly $7 million from the business during a Delaware Court of Chancery hearing was found Tuesday to have breached his fiduciary duty to the company and was ordered to return the cash.

  • February 18, 2025

    Web Data Co. Hid Customer Usage Slowdown, Suit Says

    Web data collection solutions company Alarum has been hit with a proposed shareholder class action in New Jersey federal court alleging the company failed to disclose its struggles in keeping and expanding customer engagements, which led to reduced customer spending.

  • February 18, 2025

    Gas Co. Venture Global Faces Suit Over IPO Disclosures

    Liquefied natural gas company Venture Global was hit with a proposed class action alleging the company raised $1.75 billion in its initial public offering last month without disclosing legal issues it is facing from oil companies Shell and BP.

  • February 18, 2025

    Acccounting Firm Blames Broker For Losing $1M In Coverage

    A Texas accounting firm accused its insurance broker of causing it to lose $1 million coverage by failing to inform an excess insurer that the firm was subpoenaed in connection with the investigation of a $12 million seismic data collection company embezzlement scheme, the broker told a Texas federal court.

  • February 18, 2025

    Stablecoin Firm Gets Securities Claim Cut From Class Action

    A New York federal judge has trimmed the securities claim from a putative class action brought by buyers of GMO-Z.com Trust's GYEN stablecoin who argued they suffered losses when the value of the digital asset temporarily fluctuated, but allowed the bulk of the consumer protection claims to move forward.

Expert Analysis

  • The Bar Needs More Clarity On The Discovery Objection Rule

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    Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.

  • The AI Consumer Class Action Threat Is Not A Hallucination

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    As regulators scrutinize whether businesses can deliver on claims about their artificial intelligence products and services, the industry faces a wave of consumer fraud class actions — but AI companies can protect themselves by prioritizing fundamental best practices that are often overlooked, say Ronald Levine at Herrick Feinstein and Richard Torrenzano at the Torrenzano Group.

  • What's Next For The CFTC After The Election

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    While much of the U.S. Commodity Futures Trading Commission's enforcement actions in line with its traditional priorities will continue as usual in the near term, postelection leadership changes at the CFTC and new congressional priorities may alter the commission's regulatory framework in 2025 and beyond — particularly its oversight of crypto, say attorneys at WilmerHale.

  • Del. Dispatch: Clarifying Charter Amendment Vote Obligations

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    The Delaware Court of Chancery recently held in Gunderson v. The Trade Desk that only a majority stockholder vote is needed to approve a company's proposed reincorporation from Delaware to Nevada through a corporate conversion, which bodes well for other companies also considering leaving the First State, say attorneys at Fried Frank.

  • What's Still Up In The Air After Ruling On Calif. Climate Laws

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    A California federal court's recent ruling on challenges to California's sweeping climate disclosure laws resolved some issues, but allows litigation over the constitutionality of the laws to continue, and leaves many important questions on what entities will need to do to comply with the laws unanswered, say attorneys at Paul Hastings.

  • Series

    Being A Navy Reservist Makes Me A Better Lawyer

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    Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.

  • Navigating DOJ's Patchwork Whistleblower Regime

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    In the past few months, the U.S. Department of Justice and several individual U.S. attorney’s offices have issued different pilot programs aimed at incentivizing individuals to blow the whistle on misconduct, but this piecemeal approach may create confusion and suboptimal outcomes, say attorneys at BakerHostetler.

  • So You Want To Move Your Law Practice To Canada, Eh?

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    Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.

  • A Look At Similarities Between SOX And SEC's Cyber Rule

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    Just as the Sarbanes-Oxley Act paved the way for greater transparency and accountability in financial reporting, the SEC's cybersecurity rule is doing much the same for cybersecurity, ensuring that companies are resilient in the face of growing cyber threats, says Padraic O'Reilly at CyberSaint.

  • Trump Rollback Of Biden Enviro Policies: What To Expect

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    Donald Trump's upcoming second presidential term will usher significant shifts in U.S. environmental and natural resource law and policy — and while the Biden administration is racing to secure its legacy, the incoming Trump administration is making plans to dramatically roll back most, if not all, of Biden's environmental initiatives, say attorneys at Beveridge & Diamond.

  • Class Actions At The Circuit Courts: November Lessons

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    In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses six federal court decisions that touch on Rule 23 of the Federal Rules of Civil Procedure, and when individual inquiries are needed to prove economic loss.

  • 5 Areas Congress May Investigate After GOP Election Wins

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    With Republicans poised to take control of Congress in addition to the executive branch next year, private companies can expect an unprecedented uptick in congressional investigations focused on five key areas, including cryptocurrency and healthcare, say attorneys at Cahill Gordon.

  • Trump's 2nd Term May Be A Boost To Banking Industry

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    President-elect Donald Trump's personnel appointments could be instrumental in reshaping the financial regulatory landscape during his second administration, likely allowing for greater merger activity and halting or undoing some of the Biden administration's more restrictive financial services policies, say attorneys at Debevoise.

  • Why K-Cup Claims Landed Keurig In Hot Water With SEC

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    The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.

  • Legislation Most Likely To Pass In Lame Duck Session

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    As Congress begins its five-week post-election lame duck session, attorneys at Greenberg Traurig break down the legislative priorities and which proposals can be expected to pass.

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