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Securities
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November 08, 2024
SEC Sues Ex-Fed Examiner For Insider Trading On Bank Stocks
The U.S. Securities and Exchange Commission filed suit against a former senior banking supervisor with the Richmond Federal Reserve Bank, accusing him of insider trading on stocks of New York Community Bancorp and Capital One Financial Corp.
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November 08, 2024
Pot Co. Employees Accuse Billionaire Owner Of Fraud
Former executives of troubled medical marijuana startup Parallel are suing its former CEO and heir to the Wrigley gum fortune, claiming the billionaire paid them in "worthless" shares that he overvalued, resulting in tax bills they can't afford.
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November 08, 2024
Investors Duped By Opportunity Zone Promises, Colo. Says
Colorado's securities commissioner accused a California businessman on Thursday of selling investors on a project ostensibly meant to purchase single-family homes using a federal program for revitalizing economically distressed areas, while instead using company assets as a "personal piggy bank."
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November 08, 2024
FTX Investment Firm Seeks Return Of $11M In Crypto Assets
Alameda Research, an investment arm of the now-bankrupt FTX digital asset empire, has filed a lawsuit against cryptocurrency exchange Crypto.com in Delaware bankruptcy court, seeking the return of $11.4 million in assets still held on the platform despite multiple requests from the debtor.
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November 07, 2024
Ex-Celsius CEO OK'd To Seek Testimony From Abroad
A New York federal judge Thursday gave former Celsius Network CEO Alex Mashinsky the green light to seek deposition testimony from witnesses reading abroad that he claims is crucial to his defense, but declined to narrow the case against the founder of the now-bankrupt cryptocurrency-lending platform.
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November 07, 2024
Super Micro Top Brass Face Suit Over Governance 'Red Flags'
The top brass of Super Micro Computer Inc. have been hit with a shareholder derivative suit in California federal court alleging they caused the artificial intelligence server manufacturer to make false assurances about the effectiveness of the company's internal controls, the accuracy of its financial statements and other corporate governance red flags.
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November 07, 2024
Ill. Judge Anticipates 'Massive' Outcome Investor Restitution
An Illinois federal judge signaled Thursday that he anticipates three former Outcome Health executives will pay a "massive" amount in restitution to investors such as Goldman Sachs and CapitalG that were persuaded to give Outcome money in a fraudulent effort to grow the company.
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November 07, 2024
Chancery Mulls Stay, Toss Of SPAC Suit Pending NJ Ruling
Attorneys for the sponsor of a deal that took digital health equipment venture Butterfly Network public in February 2021 argued Thursday for a stay or dismissal of a Delaware Court of Chancery suit challenging the deal, citing extensive overlap with an earlier-filed federal securities action in New Jersey.
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November 07, 2024
JPMorgan Sues Adviser Who Jumped To Morgan Stanley
The broker-dealer arm of JPMorgan has accused a former Michigan-based employee of using its confidential information to lure its customers at her new job at Morgan Stanley's wealth management unit, including a half a dozen clients with nearly $12 million in combined assets who have already jumped ship from JPMorgan.
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November 07, 2024
Vanguard Investors Ink $40M Settlement In Tax Liability Suit
Vanguard investors have asked a Pennsylvania federal judge to give the first green light to a $40 million settlement reached with the firm over it allegedly breaching its fiduciary duty when it triggered a sell-off of assets that left investors with massive tax bills.
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November 07, 2024
Car Dealer To Pay $5.8M To Investors Over Pot Stock Scheme
A Michigan car dealer accused of selling shares for a largely bogus cannabis company has admitted to violating state securities law and has agreed to return investor money, roughly $5.8 million, according to a consent order issued by an Ohio federal judge.
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November 07, 2024
FINRA Orders Ga. Broker To Pay $2M Over Trading Strategy
A Georgia-based brokerage firm has agreed to pay $2 million in partial restitution to settle allegations from the Financial Industry Regulatory Authority that the firm recommended a trading strategy to customers without fully understanding it.
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November 07, 2024
Truth Social Tipper Gets 28 Mos. In Trump SPAC Insider Case
A Manhattan federal judge hit a career securities trader from Florida with a 28-month prison sentence Thursday after a jury convicted him of conveying tips that fueled a $23 million insider trading scheme exploiting plans to take Truth Social public.
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November 07, 2024
Fed Chair Powell Says He Won't Step Down If Trump Asks
Federal Reserve Chair Jerome Powell said Thursday that he would not step down from his role if President-elect Donald Trump asked him to, doubling down on his commitment to serving out the remaining two years of his appointment leading the central bank.
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November 07, 2024
Colo. Says Man Sold $3M In Unregistered Securities
Colorado securities regulators filed a lawsuit in state court alleging a man sold more than $3 million of unregistered securities to investors, many of them friends, students or women he met through dating apps, while withholding important information or misrepresenting the investments.
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November 07, 2024
Investors Accuse Truth Social SPAC's Ex-CEO Of Stock Theft
The former CEO of the special purpose acquisition company that combined with Donald Trump's Truth Social company has been accused of stealing millions of SPAC shares by funneling them to offshore shell entities and misappropriating investments to fund his "lavish" Miami lifestyle.
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November 07, 2024
FINRA Grants Client Poach Injunction To TD Bank
The Financial Industry Regulatory Authority has issued a permanent injunction against Raymond James Financial and its subsidiary Crescent Point Private Wealth that bars their solicitation of certain TD Bank clients until April 2025, according to a status report filed in a federal lawsuit in the District of Connecticut.
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November 07, 2024
'Where Have You Been?' Conn. Judge Asks About Late DQ Bid
A motion to remove a Shipman & Goodman LLP partner from a court battle over a garbage sorting facility permit because he is allegedly an important fact witness could have come much sooner, a Connecticut state court judge suggested Thursday while working to nail down why the plaintiff waited until a trial was imminent.
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November 07, 2024
Shook Hardy Adds Former Assistant Illinois AG
In its effort to become one of the nation's premier white collar firms, Shook Hardy & Bacon LLP is bringing in from Dechert LLP a former Illinois assistant attorney general as a partner in its Chicago office.
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November 07, 2024
BCLP Adds Former AUSA, FINRA Lawyer In San Francisco
Bryan Cave Leighton Paisner LLP on Thursday announced that a former assistant U.S. attorney and in-house lawyer at the Financial Industry Regulatory Authority joined the firm's San Francisco office as a partner.
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November 07, 2024
Investors Want Final Approval Of $3.6M Global Payments Deal
Investors asked a Georgia federal judge on Wednesday to give final approval to a $3.6 million deal settling their class action alleging a subsidiary of Atlanta-based Global Payments Inc. "tricked" consumers into signing up for a program that had undisclosed fees.
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November 07, 2024
Former Delaware DOJ Attorney Joins Chancery As Magistrate
Delaware's judiciary announced this week that a former Young Conaway Stargatt & Taylor LLP attorney who also previously worked for the state's Department of Justice has been appointed to serve as a magistrate in the Chancery Court.
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November 06, 2024
Trump's SEC Expected To See 'Dramatic' Enforcement Change
Former President Donald Trump's reelection means a notable shift in the types of cases the U.S. Securities and Exchange Commission is expected to bring, attorneys said Wednesday at a Washington, D.C., conference, while the agency's current top enforcer vowed business as usual for now as it carries on with its well over 1,500 investigations.
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November 06, 2024
FTX Exec Looks To Avoid Prison For 'Smallest Share' Of Crime
Former FTX technology chief Zixiao "Gary" Wang on Wednesday asked a Manhattan federal judge not to give him prison time for his part in the $11.2 billion fraud case, calling himself "the one who stands convicted of the smallest share of misconduct" among former CEO Sam Bankman-Fried's lieutenants.
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November 06, 2024
LGBcoin Trustee Can't Get SEC Subpoena Stayed Amid Appeal
A hedge fund manager associated with the political-meme-inspired digital asset LGBcoin can't get an administrative subpoena from the U.S. Securities and Exchange Commission stayed while he seeks an appeal, a Miami federal judge has decided.
Expert Analysis
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Series
A Day In The In-House Life: Block CLO Talks Problem-Solving
Amid the busy summer months, Block Inc. Chief Legal Officer Chrysty Esperanza chronicles a typical Wednesday where she conquered everything from unexpected fintech regulatory issues and team building to Bay Area commutes and school drop-off.
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Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days
In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.
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Navigating Antitrust Considerations In ESG Collaborations
The intersection of ESG goals and antitrust laws presents a complex challenge for businesses and their counsel — but by creating clear frameworks for collaboration, adhering to established guidelines and carefully considering the competitive implications of their actions, companies can work toward sustainability while mitigating legal risks, say attorneys at Morgan Lewis.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Jarkesy's Impact On SEC Enforcement Will Be Modest
Though the U.S. Supreme Court’s recent U.S. Securities and Exchange Commission v. Jarkesy decision found that fraud defendants have a constitutional right to a jury trial, the ruling will have muted impact on the agency’s enforcement because it’s already bringing most of its cases in federal court, say Jeremiah Williams and Alyssa Fixsen at Ropes & Gray.
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Examining Chancery's Relaxed New Confidential Filing Rules
The Delaware Court of Chancery’s overhauled Rule 5.1, which governs confidential filings, risks permitting nonconfidential information to be shielded from public review unless and until a challenge notice is filed — but several potential solutions could help to override this issue, says Delaware attorney Daniel J. McBride.
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Opinion
After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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Dissecting Treasury's Call For Input On AI In Financial Sector
The U.S. Department of the Treasury's request for comments on the potential benefits and challenges AI may pose to the financial services sector, which asks how stakeholders are addressing and mitigating increased fraud risks, reflects the federal government's continued interest in AI's effects across the economy, say attorneys at Hogan Lovells.
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NYSE Delisting May Be The Cost Of FCPA Compliance
ABB’s recent decision to delist its U.S. depository receipts from the New York Stock Exchange, coupled with having settled three Foreign Corrupt Practices Act enforcement actions, begs the question of whether the cost of FCPA compliance should factor into a company's decision to remain listed in the U.S., says John Joy at FTI Law.
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CFTC Action Highlights Necessity Of Whistleblower Carveouts
The U.S. Commodity Futures Trading Commission's novel settlement with a trading firm over allegations of manipulating the market and failing to create contract carveouts for employees to freely communicate with investigators serves as a beacon for further enforcement activity from the CFTC and other regulators, say attorneys at Davis Wright.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.
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Half-Truths Vs. Omissions: Slicing Justices' Macquarie Cake
The U.S. Supreme Court's recent ruling in Macquarie v. Moab provides a road map for determining whether corporate reports that omit information should be considered misleading — and the court baked it into a dessert analogy that is key to understanding the guidelines, say Daniel Levy and Pavithra Kumar at Advanced Analytical Consulting Group.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.