Securities

  • September 04, 2024

    Robinhood Inks $3.9M Deal In Calif.'s Crypto Withdrawal Probe

    Robinhood's cryptocurrency trading platform will pay a $3.9 million penalty to resolve the state of California's claims that the Menlo Park-based company didn't allow customers to make withdrawals from their accounts from 2018 to 2022, California Attorney General Rob Bonta announced on Wednesday.

  • September 04, 2024

    SEC Lets Deadline Pass For 5th Circ. Private Funds Appeal

    The U.S. Securities and Exchange Commission won't challenge a Fifth Circuit decision that vacated its recently passed disclosure rules for private fund advisers, taking no action as its deadline to appeal to the U.S. Supreme Court passed.

  • September 04, 2024

    FINRA Beats Post-Jarkesy Challenge To Enforcement Powers

    The Financial Industry Regulatory Authority has beaten back a broker's bid to use the U.S. Supreme Court's recent Jarkesy decision to challenge its enforcement regime, after a Pennsylvania federal judge found other high court precedent barred him from hearing the broker's constitutional challenge to the regulator's proceedings.

  • September 04, 2024

    UBS Financial Gets Wrapped Up In Cash Sweep Class Action

    UBS Financial Services has been hit with a proposed class action suit alleging it prioritized its own financial interests and those of its affiliated banks over customers by using its cash sweep program to direct customers' uninvested cash balances into accounts that disproportionately benefited the investment bank.

  • September 04, 2024

    PE Advisers Flouted Registration Requirements, SEC Says

    A pair of Florida-based private equity advisers and their CEO have agreed to settle U.S. Securities and Exchange Commission allegations that they broke federal securities laws by improperly declaring themselves exempt from registering as advisers to private funds, according to the agency.

  • September 04, 2024

    Icahn Enterprises Investor Sues Alleging 'Ponzi-Like' Scam

    An Icahn Enterprises LP investor hit the partnership's billionaire founder Carl Icahn and its board with a derivative suit in Florida federal court Tuesday, accusing them of hiding "highly significant" risks, including the partnership's alleged "Ponzi-like" structure, which purportedly inflated its price and exposed it to regulatory probes and litigation.

  • September 04, 2024

    Ripple Gets OK To Pause SEC Penalty As It Mulls Appeal

    A New York federal judge on Wednesday signed off on Ripple Labs' request to hold off on paying the U.S. Securities and Exchange Commission the $125 million penalty it owes to allow time for either side to appeal the landmark ruling in the agency's registration case.

  • September 04, 2024

    SEC Fines NJ Financial Cos. For Whistleblowing Violations

    New Jersey-based brokerage Nationwide Planning Associates Inc. and two affiliated investment advisers have agreed to collectively pay $240,000 to settle allegations that they prevented their clients from acting as whistleblowers, the U.S. Securities and Exchange Commission announced Wednesday.

  • September 04, 2024

    Atty Tied To Ponzi Scheme Can't Discharge CFTC Debt

    A Colorado federal judge on Wednesday denied an attorney's request to have his debt to the Commodity Futures Trading Commission discharged after he and others were found liable for $10 million for their roles in a Ponzi scheme.

  • September 04, 2024

    SEC Says $5M Fraud Scheme Targeted Venezuelan-Americans

    A pair of Miami area residents and a company they control have agreed to pay the U.S. Securities and Exchange Commission over $3.25 million to settle affinity fraud allegations involving a purported proprietary automated trading platform they were developing.

  • September 04, 2024

    Judge Says EB-5 Investors, Fund Must Disclose More Info

    An Illinois federal judge told a group of Chinese investors and a development fund on Wednesday they both must provide additional information in a suit accusing the fund of making off with $13.2 million intended for the development of a Hawaii resort.

  • September 04, 2024

    NC Biz Court Bulletin: Blackbeard IP Fight, Firm Data Breach

    As summer winds down, the North Carolina Business Court tackled usage rights pertaining to footage and artifacts from Blackbeard's shipwreck while grappling with uncovering the details of a cyberattack that exposed the data of Cadwalader Wickersham & Taft LLP. In case you missed those and others, here are the highlights.

  • September 04, 2024

    Ex-Lender Says FDIC Can't 'Trap' Him In Dispute Without Trial

    A former small-business financier has doubled down on his push to immediately halt an enforcement proceeding against him filed by the Federal Deposit Insurance Corp., arguing it would be unjust to block his claims after a "sea change" in relevant case law.

  • September 04, 2024

    Fintech Investor Tries To Undo 'Formulistic' Nix Of NCino Suit

    A pension fund invested in financial technology company nCino Inc. urged Delaware's Supreme Court on Wednesday to revive its suit against company directors and investment firm Insight Venture Partners over a $1.2 billion acquisition, arguing the Chancery Court "missed the mosaic for the tiles" by dismissing the case.

  • September 04, 2024

    Solana Labs Denied Arbitration In Token Crypto Fraud Suit

    A California federal judge has denied a motion to compel arbitration in a suit alleging Solana Labs Inc. and its key investors promoted and sold Solana cryptocurrency tokens as unregistered securities, saying that Solana failed to prove that the lead plaintiff agreed to the terms of service that included an arbitration clause, among other things.

  • September 04, 2024

    SEC Fines Investor Over $7.5M In Undisclosed Affiliate Fees

    The U.S. Securities and Exchange Commission has fined Florida-based investor Digital Bridge for failing to properly disclose about $7.5 million worth of payments to affiliates for services provided to a group of funds the firm manages.

  • September 04, 2024

    FINRA Fines Broker-Dealer $900K Over Lax AML Compliance

    Broker-dealer Brex Treasury has agreed to pay $900,000 to settle the Financial Industry Regulatory Authority's claims that it overrelied on automated anti-money laundering compliance software not reasonably designed to meet its needs.

  • September 04, 2024

    Feds Say Litigation Funding Co. Was A $10M Ponzi Scheme

    A purported investment company's owner faces criminal charges and a suit from the U.S. Securities and Exchange Commission after she allegedly made false claims to investors that she would lend their money to personal injury attorneys but instead used the money for a Ponzi-like scheme and personal expenses.

  • September 04, 2024

    Brazilian Oil Bribery Case Jury Warned Of 'Liar' Witness

    Attorneys for a Connecticut trader accused of bribing Brazilian oil officials urged a jury on Wednesday not to trust an alleged co-conspirator scheduled to testify for the government, calling that man a "skilled and adept liar" who would "substantially assist" prosecutors in possible return for a favorable family immigration decision.

  • September 04, 2024

    J&J Hit With $1B Damages In Del. Merger Milestone Fight

    Johnson & Johnson owes more than $1 billion to a medical robotics developer and entrepreneur caught up in a multibillion-dollar post-acquisition dispute, a Delaware vice chancellor ruled Wednesday.

  • September 04, 2024

    CFTC Fines Uniswap Over Bitcoin, Ether Liquidity Pools

    Decentralized finance platform Uniswap Labs has agreed to pay the U.S. Commodity Futures Trading Commission $175,000 to settle allegations that it illegally offered access to liquidity pools underpinned by bitcoin and ether, the regulator said Wednesday.

  • September 03, 2024

    8th Circ. Again Scraps Class Cert. For TD Ameritrade Clients

    The Eighth Circuit reversed Tuesday a lower court's ruling certifying a class of TD Ameritrade clients for the second time in a lawsuit alleging the stockbroker routed orders to trading venues that didn't always provide the best execution, rejecting the named plaintiff's new class-wide damages theory based on commissions.

  • September 03, 2024

    Teva Investors Get Go-Ahead To Resume Kickbacks Class Suit

    A shareholder's certified class action against pharmaceutical company Teva can resume after being paused for two years, as the company says it is working towards a settlement with the U.S. Department of Justice over related claims it used kickbacks to raise the price of its multiple sclerosis drug Copaxone, a Philadelphia federal judge has decided.

  • September 03, 2024

    2nd Circ. Backs Toss Of Ericsson Investors' ISIS Bribes Suit

    The Second Circuit on Tuesday upheld a New York federal judge's decision to toss an investor class action against telecom giant Ericsson and several members of its top brass over claims that they hid knowledge of possible bribes to the Islamic State from U.S. investors and committed other violations of federal securities laws.

  • September 03, 2024

    Alphabet Beats Investor Suit Over Antitrust Issues, For Now

    A California federal judge on Tuesday tossed a proposed securities fraud class action against Google and its parent company Alphabet Inc., saying investors failed to adequately allege that Google intended to deceive them when responding to a congressional query on concerns of anti-competitive ad tech practices.

Expert Analysis

  • Opinion

    Agencies Should Reward Corporate Cyber Victim Cooperation

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    The increased regulatory scrutiny on corporate victims of cyberattacks — exemplified by the U.S. Securities and Exchange Commission's case against SolarWinds — should be replaced with a new model that provides adequate incentives for companies to come forward proactively and collaborate with law enforcement, say attorneys at McDermott.

  • 9 Liability Management Tips As Debt Maturity Cliff Looms

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    As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.

  • How Transaction Lookbacks Can Guide Fintech Companies

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    As transaction lookbacks continue to be a key focus of enforcement actions, newer financial institutions like fintech companies should know they can benefit from proactively investigating their potential failure to identify suspicious activity, creating a compliance road map and building trust with regulators in the process, say attorneys at Jenner & Block.

  • Firms Must Offer A Trifecta Of Services In Post-Chevron World

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    After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.

  • 5 Ways Life Sciences Cos. Can Manage Insider Trading Risk

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    In light of two high-profile insider trading jury decisions against life sciences executives this year, public companies in the sector should revise their policies to account for regulators' new and more expansive theories of liability, says Amy Walsh at Orrick.

  • Series

    A Day In The In-House Life: Narmi GC Talks Peak Productivity

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    On a work-from-home day in August, Narmi general counsel Amy Pardee chronicles a typical day in her life in which she organizes her time to tackle everything from advising on products and contract negotiations to volunteering and catching up on the New York Times crossword.

  • How Ripple Final Judgment Fits In Broader Crypto Landscape

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    The Southern District of New York's recent $125 million civil penalty levied in U.S. Securities and Exchange Commission v. Ripple will have a broad impact on the crypto industry as it was the first to hold that blind sales of digital assets are not securities, even if deemed securities in other circumstances, say attorneys at BakerHostetler.

  • 5 Tips To Succeed In A Master Of Laws Program And Beyond

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    As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.

  • Series

    After Chevron: SEC Climate And ESG Rules Likely Doomed

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    Under the U.S. Supreme Court's recent decision in Loper Bright, without agency deference, the U.S. Securities and Exchange Commission's climate disclosure and environmental, social and governance rules would likely be found lacking in statutory support and vacated by the courts, says Justin Chretien at Carlton Fields.

  • Assessing Whether Jarkesy May Limit FINRA Prosecutions

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    The U.S. Supreme Court’s recent decision in Jarkesy v. U.S. Securities and Exchange Commission, holding that civil securities fraud defendants are entitled to jury trials, may cause unpredictable results when applied to Financial Industry Regulatory Authority prosecutions, say Barry Temkin and Kate DiGeronimo at Mound Cotton.

  • Series

    Being An Opera Singer Made Me A Better Lawyer

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    My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.

  • Amid SEC Rule Limbo, US Cos. Subject To ESG Regs In EU

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    Though the U.S. Securities and Exchange Commission is facing legal challenges to its climate-disclosure rulemaking, the implementation of the Corporate Sustainability Reporting Directive in the European Union will force U.S. companies to comply with exactly the kinds of ESG disclosures that are not yet mandated in the U.S., say attorneys at Squire Patton.

  • How Law Firms Can Avoid 'Collaboration Drag'

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    Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.

  • 6 Considerations To Determine If A Cyber Incident Is Material

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    The U.S. Securities and Exchange Commission's recent guidance on material cybersecurity incidents covers a range of ransomware scenarios, from a company paying a sum and regaining operations to recovering payment via cyberinsurance, but makes it clear that no single factor determines whether a cybersecurity incident is material, say attorneys at Troutman Pepper.

  • Opinion

    Litigation Funding Disclosure Key To Open, Impartial Process

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    Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.

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