Securities

  • October 29, 2024

    Biopharma Co. Escapes Investor Suit Over Drug Approval Lies

    Biopharmaceutical company Spero Therapeutics Inc. has escaped a proposed investor class action accusing it of concealing warning signs that it would not secure regulatory approval of one of its drugs, with the court ruling that Spero's interactions with the U.S. Food and Drug Administration do not indicate Spero should have known its application would be rejected.

  • October 29, 2024

    Investors Float $21M Deal To End Life Sciences SPAC Suit

    Shareholders in special purpose acquisition company CM Life Sciences Holdings have reached a tentative $21 million class settlement in Delaware's Court of Chancery after suing over alleged missing or misleading disclosures in the lead-up to the take-public merger of clinical data and genomics company Sema4 Holdings in July 2021.

  • October 29, 2024

    Sham Getty Stock Offer Lands Investor 10-Month Prison Term

    A former Massachusetts corporate executive will serve 10 months in prison for launching a sham takeover bid for Seattle-based Getty Images Holdings to drive up its share price and make hundreds of thousands of dollars in profit, a Boston federal judge said Tuesday.

  • October 29, 2024

    2nd Circ. Revives Investor Suit Against Chinese News App

    The Second Circuit has revived a securities class action alleging that Chinese news aggregation app Qutoutiao hid changes in its advertising policies that allegedly spurred fraudulent advertisements on the app and eventually caused its share price to decline, finding that the lower court erred in determining that the suit's claims sound in fraud.

  • October 29, 2024

    2 Firms Tapped To Lead Five Below Investor Suit

    Berger Montague PC and Bernstein Litowitz Berger & Grossmann LLP will represent a proposed class of investors in a suit alleging that teen-focused retail chain Five Below overstated its growth prospects, then saw trading prices crater when it announced that its sales expectations fell short.

  • October 29, 2024

    Burns & Levinson Atty Duo Latest To Join Blank Rome

    Blank Rome has announced it added a pair of attorneys from Burns & Levinson to its office in Boston, a move that the firm said bolsters its litigation and corporate capabilities and serves as the latest example of lawyers moving between the two firms since Blank Rome opened the office in April with 25 Burns & Levinson corporate and finance attorneys.

  • October 29, 2024

    Oil Trader's Brother Gets Probation, Fine For Brazilian Bribes

    An ailing Connecticut man who admitted to helping his brother pull off a scheme to bribe officials at Brazil's state-owned oil company has been sentenced to probation, a fine and asset forfeiture, federal court records showed Tuesday.

  • October 29, 2024

    Financial Firm Gets $1.4M Placeholder Against Adviser

    A Connecticut state court judge has granted a financial firm's bid for a nearly $1.4 million placeholder against an exiting financial adviser during ongoing FINRA arbitration, reasoning the firm has shown a likely chance of proving the adviser siphoned customers during a transition to a new broker-dealer.

  • October 29, 2024

    Alibaba's $433.5M Investor Suit Deal Gets Initial OK

    A New York federal judge granted preliminary approval to a $433.5 million deal settling a suit between Alibaba Group and investors alleging the company made misstatements about its exclusivity practices and the planned $34 billion initial public offering of a fintech affiliate.

  • October 29, 2024

    1st Circ. Scraps Securities Fraud Case Against 3D Printing Co.

    The First Circuit has affirmed a ruling throwing out a securities fraud lawsuit against 3D printing business Desktop Metal, finding the investor behind the action abandoned one of her claims and failed to adequately allege the other. 

  • October 29, 2024

    Ex-Jones Day Litigator Joins Honigman In Detroit

    Honigman LLP has brought on a former Jones Day business and tort litigation associate as a business litigation practice group partner.

  • October 28, 2024

    JPMorgan CEO Says Banks Must 'Fight Back' As Regs Mount

    JPMorgan Chase & Co. CEO Jamie Dimon said Monday that it's time for the banking industry to "fight back" against aggressive federal regulators, criticizing what he described as an "onslaught" of unnecessary, overly harsh rulemaking.

  • October 28, 2024

    Masimo Sues Founder Over Alleged 'Empty Voting' Scheme

    Masimo Corp. has sued its founder for allegedly conspiring with an investment firm and company stockholder to manipulate a shareholder vote in order to maintain his seat on the medical technology company's board of directors.

  • October 28, 2024

    SEC Sues To Enforce Subpoena On Telehealth Co.

    The U.S. Securities and Exchange Commission has asked a New York federal judge to order a weight loss-focused telehealth company to comply with a subpoena issued in connection with the SEC's investigation into whether the company violated federal securities laws.

  • October 28, 2024

    Ontrak Founder Can't Wipe Novel Insider Trading Verdict

    A California federal judge has upheld Ontrak founder Terren Peizer's first-of-its-kind insider trading conviction, holding that jurors had "more than enough evidence" to determine he based a $20 million share sale on nonpublic information that the health tech company was about to lose its biggest client.

  • October 28, 2024

    Ex-Atty Charged With $9.2M Commodities Ponzi Scheme

    Federal prosecutors have charged a former New Orleans-based attorney with operating a Ponzi scheme, saying he promised dozens of individuals that he would invest their $9.2 million in low-risk commodities when he was really using the funds to gamble and to pay off personal expenses.

  • October 28, 2024

    Investment Firm's Head Indicted For Alleged Ponzi Scheme

    Federal prosecutors have unsealed an indictment accusing a Utah man of carrying out a Ponzi scheme to embezzle millions of dollars from private investors who believed they were contributing to restaurant ventures.

  • October 28, 2024

    Fidelity Investments Sued Over Money Market Fund's Fees

    Fidelity Investments has been hit with a class action suit in New York federal court alleging it charged high fees, mismanaged the administration of one of its money market funds, and failed to act in the best interests of the fund's shareholders. 

  • October 28, 2024

    $4M Settlement Over NBA-Themed NFTs Gets Final OK

    A New York federal judge on Monday granted final approval to a $4 million settlement between the firm behind NBA-focused non-fungible tokens and a class of purchasers who accused the digital assets company of selling the tokens as unregistered securities, and awarded roughly a third of the settlement fund in attorney fees.

  • October 28, 2024

    Moderna Brass Hit With Investor Suit Over RSV Shot Claims

    Officers and directors of Moderna face shareholder derivative allegations that they overstated how effective the company's RSV vaccine candidate was as the pharmaceutical giant sought regulatory permission to expedite its development.

  • October 28, 2024

    Boeing Moves Ahead With $19B Share Sale Amid Cash Crunch

    Boeing launched plans Monday to sell common and preferred stock estimated to raise nearly $19 billion, potentially easing the aviation giant's cash crush amid a prolonged strike and production setbacks, represented by Kirkland & Ellis LLP and underwriters' counsel Davis Polk & Wardwell LLP.

  • October 28, 2024

    Metals Co. Owner Convicted Of Tax Fraud In $58M Theft Case

    A Delaware federal jury convicted the owner of a gold and silver depository of tax fraud and other crimes tied to the government's accusations that he stole $58 million in precious metals from his customers, according to court filings.

  • October 28, 2024

    Labor Dept.'s Proposed ESOP Rule Moves Toward Release

    The White House Office of Management and Budget is reviewing the U.S. Department of Labor's proposal for a rule related to how employee stock ownership valuations are conducted, the last step before the long-awaited proposed regulation is released to the public for comment.

  • October 28, 2024

    Ozy Media CEO Wants Conviction Nixed Over Judge's Assets

    The New York federal judge who presided over the fraud and identity theft trial of former Ozy Media CEO Carlos Watson should be disqualified from the case because he failed to disclose that he had investments in four of the companies victimized by Watson, according to the onetime executive, who is trying to get his conviction overturned.

  • October 28, 2024

    Report Says To Allow Bulk Of Software Investor Suit

    A U.S. magistrate judge has recommended against dismissing the bulk of an investor's suit alleging Decentral Life Inc. and a group of its licensees, including a cannabis social media site, misled him into investing more than $1.7 million by boasting bogus user counts.

Expert Analysis

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

  • Evolving Regulatory Oversight For AI And Asset Management

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    Attorneys at K&L Gates discuss the evolving regulatory and legislative landscape for artificial intelligence in the asset management industry, as the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and Congress consider how to address potential investor protection and systemic risks associated with AI.

  • 3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy

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    The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.

  • Series

    A Day In The In-House Life: Block CLO Talks Problem-Solving

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    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.

  • Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days

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    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.

  • Navigating Antitrust Considerations In ESG Collaborations

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    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.

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    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.

  • Jarkesy's Impact On SEC Enforcement Will Be Modest

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    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.

  • Series

    Rock Climbing Makes Me A Better Lawyer

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    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.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    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.

  • Examining Chancery's Relaxed New Confidential Filing Rules

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    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.

  • Opinion

    After Jarkesy, IRS Must Course-Correct On Captive Insurance

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    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.

  • Dissecting Treasury's Call For Input On AI In Financial Sector

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    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.

  • NYSE Delisting May Be The Cost Of FCPA Compliance

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    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.

  • CFTC Action Highlights Necessity Of Whistleblower Carveouts

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    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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