Securities

  • October 16, 2024

    Ex-Pharma Co. Employee Traded On GSK Deal Info, SEC Says

    The former director of analytical development at Canada-based drug company Bellus Health Inc. has agreed to pay the U.S. Securities and Exchange Commission over $120,000 to settle claims that he sold shares on nonpublic information about pharma giant GSK's impending takeover of his company, according to court filings.

  • October 16, 2024

    SEC To Settle Claims CBD Exec Took $13M From Hospital

    The U.S. Securities and Exchange Commission is ready to make a deal with a former cannabidiol products executive accused of taking $13 million from a hospital after falsely promising to deliver urgently needed masks during the height of the pandemic.

  • October 16, 2024

    Alphatec Investor Seeks $9.5M Atty Fee After Chancery Win

    A family office investment company that recently won a five-year battle over millions worth of securities purchase rights not honored by a surgical and medical device developer asked Delaware's Court of Chancery on Wednesday to shift more than $9.5 million in fees and expenses to the developer.

  • October 16, 2024

    NYSE Seeks To Curb Reverse Splits In Latest Crackdown

    The New York Stock Exchange wants to limit companies' ability to rely on reverse stock splits to raise their share prices and avoid delisting, submitting a proposal shortly after regulators approved a Nasdaq plan to rein in such splits.

  • October 16, 2024

    SEC Data Contractor Faked Audit Certification, Feds Say

    The CEO of a company that received roughly $11 million from the U.S. Securities and Exchange Commission to provide data infrastructure services was charged in D.C. federal court with creating a shell entity to fraudulently claim his business was certified for high-level reliability and security, prosecutors announced Wednesday.

  • October 16, 2024

    PE Firm Trashed Exec To Avoid Payout In $98M Deal, Suit Says

    A Summit Partners affiliate and several executives concocted false allegations of misconduct to get out of fully compensating the owner of an investment management firm as part of an acquisition worth a reported $97.6 million, according to a complaint filed in Massachusetts state court.

  • October 16, 2024

    2 SDNY Terror Finance Cases Against Binance Stay Separate

    Two suits claiming Binance unlawfully fostered terrorist activity, filed in the wake of the cryptocurrency platform's $4.3 billion settlement with the U.S. Department of Justice, will proceed separately in the Southern District of New York, a Manhattan federal judge said Wednesday.

  • October 16, 2024

    RTX To Pay $1B For Qatari Bribes And Defrauding US Gov't

    RTX Corp. and its Raytheon subsidiary have agreed to pay approximately $1 billion and enter into two separate deferred prosecution agreements in connection with a bribery scheme to secure Qatari military contracts, as well as separate ploys to defraud the U.S. government in deals for Patriot missile and radar systems.

  • October 16, 2024

    US Fails To Revoke Bail Of Crypto Chief Wanted In Fraud Case

    The U.S. government failed on Wednesday to keep the former chief executive of a $7.5 billion crypto-asset business in custody while he fights extradition for allegedly manipulating the market for his company's virtual tokens, as a judge deemed him a low flight risk.

  • October 15, 2024

    Conn. Trader Pilfered $4.1M From Struggling Firm, SEC Says

    A Greenwich, Conn.-based investment adviser stole more than $4.1 million from a pair of investment funds he managed to help prop up his family's "expensive lifestyle" and counter his personal financial woes, including several tax liens and foreclosure attempts on his home, the U.S. Securities and Exchange Commission has alleged.

  • October 15, 2024

    Santander Settles Investors' Squeeze-Out Suit For $162.5M

    Santander Consumer USA Holdings Inc. has agreed to shell out $162.5 million to put to rest stockholders' consolidated class action challenging a $2.5 billion minority squeeze-out merger, according to a stipulation filed Monday in Delaware's Court of Chancery.

  • October 15, 2024

    Exec's $77M WeWork Offer Was Stupid, Not Fraud, Jury Told

    Counsel for the former CEO of real estate investment firm Arciterra told a Manhattan federal jury Tuesday his client was a fool for making what prosecutors described as a fake $77 million tender offer for a controlling stake in WeWork before its bankruptcy, but he wasn't trying to falsely pump up the coworking company's stock price.

  • October 15, 2024

    Crypto Huckster Slammed With 20 Years For Forcount Fraud

    A New York federal judge on Tuesday sentenced an Ecuadorean man from Florida to 20 years in prison for pushing the $14 million, international Forcount cryptocurrency Ponzi scheme on his fellow Latinos over five years, saying he caused incalculable damage.

  • October 15, 2024

    10th Circ. Won't Reboot Short Sellers' Suit Against Overstock

    In a decision dealing with matters of first impression, the Tenth Circuit on Tuesday declined to revive a hedge fund's proposed class action accusing Overstock.com Inc. and its leadership of manipulating the market when it said it would pay shareholders using cryptocurrency but abandoned the plan to force short sellers into a "squeeze."

  • October 15, 2024

    SafeMoon Execs Can't Beat Fraud Charges Now, Feds Say

    The crypto executives behind the alleged SafeMoon fraud can't claim their conduct was beyond the reach of U.S. courts at this stage of litigation, federal prosecutors said in a brief that pushed back on the executives' bid to dismiss the indictment.

  • October 15, 2024

    SEC Says Robot Co.'s AI Caretaker Was Mostly A Dummy

    The U.S. Securities and Exchange Commission sued a robotics and artificial intelligence startup and its founder in Florida federal court Tuesday, accusing them of misleading investors about the company's ability to develop an AI-infused hologram and a robot to help families with childcare and other tasks.

  • October 15, 2024

    Kirkland-Led Boeing Seeks Up To $35B Amid Labor Strike

    Boeing notified regulators on Tuesday of plans to raise up to $35 billion through securities offerings and a credit agreement, guided by Kirkland & Ellis LLP, as the aviation giant seeks access to cash amid a prolonged strike and production cuts.

  • October 15, 2024

    Hedge Fund Urges Justices To Hear Swing-Trade Case

    The U.S. Supreme Court has been asked by a hedge fund facing insider trading allegations to address "significant and recurring issues" that allowed a 1-800-Flowers.com shareholder to proceed with his derivative lawsuit despite failing to prove that the company was harmed in any way by the fund's short-swing trades.

  • October 15, 2024

    Chancery Urged To Toss Smart & Final $1.1B Sale Challenge

    An attorney for funds of Ares Alternative Management Corp. told Delaware's chancellor on Tuesday a stockholder suit alleging breaches of fiduciary duty and corporate waste in a $1.1 billion sale of Smart & Final Stores Inc. failed to show disabling conflicts among company principals or advisers.

  • October 15, 2024

    No 'Third Bite' For Ex-Lender's FDIC Suit, Judge Rules

    A D.C. federal judge has tossed a lawsuit from a former small business financier contesting the constitutionality of a Federal Deposit Insurance Corp. enforcement action against him, saying the plaintiff has already twice litigated and lost the case in Rhode Island.

  • October 15, 2024

    Morgan Stanley, BofA Sued Over Cash Sweep Programs

    Minnesota-based financial services company Safron Capital Corp. launched a pair of proposed class actions against Morgan Stanley and Bank of America in New York alleging the firms used their so-called cash sweep programs "to generate massive revenue for themselves at the expense of their customers."

  • October 15, 2024

    Aurora Cannabis Gets First Nod For $8M Investor Suit Deal

    Aurora Cannabis Inc.'s $8.05 million settlement with a proposed class of investors who accused it of orchestrating a $21.7 million "round-trip sale" to keep its stock prices high got a U.S. magistrate judge's initial sign-off along with an order pausing the parties' dispute while the deal is reviewed.

  • October 15, 2024

    Walmart, Execs Settle Chancery Opioid Suit For $123M

    Walmart and its directors and officers have agreed to a $123 million deal to end a stockholder class derivative lawsuit in Delaware's Court of Chancery that accused the nationwide retailer of multiyear opioid prescription oversight failures, potentially resolving class claims dating to early 2020.

  • October 15, 2024

    Ga. Fund Manager Who Fled Country Cops To Fraud Charge

    An Atlanta financier admitted Tuesday to running a fund that ripped off investors to the tune of millions of dollars before fleeing the country as the scheme collapsed, pleading guilty to a single charge of interstate transfers of stolen money, prosecutors said.

  • October 15, 2024

    Coinbase Ally Seeks To Compel SEC To Fulfill Info Request

    A research consultancy working with crypto exchange Coinbase said Tuesday that it plans to seek a quick win in its case to compel internal documents from the U.S. Securities and Exchange Commission after the agency allegedly said it would restart its review of the requests three years from now.

Expert Analysis

  • 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.

  • Series

    Being A Luthier Makes Me A Better Lawyer

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    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.

  • Half-Truths Vs. Omissions: Slicing Justices' Macquarie Cake

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    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.

  • Lead Like 'Ted Lasso' By Embracing Cognitive Diversity

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    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.

  • 3 Areas Of Enforcement Risk Facing The EV Industry

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    Companies in the EV manufacturing ecosystem are experiencing a boom in business, but with this boom comes increased regulatory and enforcement risks, from the corruption issues that have historically pervaded the extractive sector to newer risks posed by artificial intelligence, say attorneys at MoFo.

  • American Airlines ESG Ruling Could Alter ERISA Landscape

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    The Spence v. American Airlines ESG trial, speeding toward a conclusion in a Texas federal court, could foretell a dramatic expansion in ERISA liability, with plan sponsors vulnerable to claims that they didn't foresee short-term dips in stock prices, say attorneys at Mayer Brown.

  • SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early

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    After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.

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