Securities

  • October 02, 2024

    Coinbase Seeks CFTC Docs To Defend SEC Enforcement Case

    Coinbase has asked a Washington, D.C., federal court to direct the Commodity Futures Trading Commission to produce communications the regulator may have had with certain digital asset issuers as the cryptocurrency exchange prepares to defend registration claims from the U.S. Securities and Exchange Commission in New York.

  • October 02, 2024

    SEC Plans To Appeal Ripple Labs Decision To 2nd Circ.

    The U.S. Securities and Exchange Commission told a New York federal judge on Wednesday that it plans to appeal her decision in its registration suit against blockchain firm Ripple Labs to the Second Circuit.

  • October 02, 2024

    CFPB's $5M Student Loan Deal Gets OK Over PIMCO Objections

    A Pennsylvania federal judge has finalized a proposed $5 million settlement of a Consumer Financial Protection Bureau case that alleged pandemic-era servicing failures involving securitized student loans, overruling objections that money manager PIMCO raised on behalf of loan investors.

  • October 02, 2024

    Enviro Groups Step Up Effort To Block JBS' US Listing

    Eighteen sustainability-focused investor groups are urging the U.S. Securities and Exchange Commission to reject a potential U.S. stock listing by Brazilian meat conglomerate JBS SA, alleging the company is misleading the public regarding climate risks posed by its operations.

  • October 02, 2024

    Defense Atty Escapes DQ In $3M Transaction Row, For Now

    An attorney representing a businessman facing a $3 million fraud suit over a botched business transaction will not be forced to step away from the case, a South Dakota federal judge determined Wednesday, denying a motion seeking to disqualify the lawyer because he worked on the deal at issue in the suit.

  • October 02, 2024

    'Netflix Of China' Beats Investor Suit Over Inflated User Claims

    China-based streaming service iQIYI, dubbed the "Netflix of China," and another streaming service, Baidu Inc., have beaten proposed shareholder class action suits alleging the companies falsely beefed up iQIYI's user metrics, causing stock price drops when the truth was later revealed in a short seller report.

  • October 02, 2024

    DC Circ. Says Election Betting Contracts Can Go Live

    The D.C. Circuit on Wednesday allowed betting on election outcomes to move forward after finding that the U.S. Commodity Futures Trading Commission hasn't shown that KalshiEx's listing of election-based event contracts would likely harm the public while the regulator challenges a ruling that gave the trading platform the green light to offer such services.

  • October 02, 2024

    Crypto Fund Manager Bitwise Files Plans For XRP-Tied Fund

    Crypto-focused asset manager Bitwise filed a registration statement Wednesday that proposes to list the first exchange-traded product tied to the price of XRP, a digital currency that has long faced regulatory resistance.

  • October 02, 2024

    Chancery Drops Curtain On AMC Stock Dilution Suit

    A Delaware vice chancellor dismissed on Wednesday a proposed class action seeking damages or additional shares for former AMC Entertainment Corp. preferred stockholders who say the value of their shares was wrongly reduced last year in a deal that settled a hotly contested share conversion and reverse split.

  • October 02, 2024

    4th Circ. Says Murdaugh Can't Appeal Fraud Sentence

    Former South Carolina attorney Alex Murdaugh, who is serving life in prison for murder, was denied an appeal of a separate 40-year sentence after pleading guilty to stealing at least $9 million from clients by a Fourth Circuit panel that said he'd waived his right to appeal.

  • October 02, 2024

    SEC's Top Cop Departing After Record-Breaking Tenure

    The U.S. Securities and Exchange Commission announced Wednesday that enforcement director Gurbir Grewal will be leaving the agency next week following a three-year tenure, during which the agency brought in record penalties and frequently clashed with crypto industry participants objecting to a string of lawsuits brought under Grewal's leadership.

  • October 02, 2024

    Baker Donelson Must Face Mississippi Ponzi Scheme Suit

    A Mississippi federal judge has denied Baker Donelson's effort to escape civil conspiracy claims alleging the firm allowed a timber company's $164.5 million Ponzi scheme to unfold, with the judge stating he was "not persuaded" by the firm's argument, as it was based on the Eleventh Circuit's interpretation of Florida law.

  • October 02, 2024

    Tilray Gets Investor Stock Suit Scrubbed For Good

    A New York federal judge has dismissed with prejudice an investor suit alleging cannabis company Tilray Inc. and its officers misled investors about a co-branding agreement's prospects, saying the latest amended complaint fails to show that the company's CEO had intent to defraud or other nefarious motives.

  • October 01, 2024

    Meta Must Face Bulk Of Social Media Harms Securities Suit

    A California federal judge on Monday trimmed but refused to throw out a proposed securities class action claiming Meta Platforms Inc. and its executives misled investors about the harmful effects of social media, finding that the investors pointed to plausibly misleading statements regarding mental health and keeping children safe.

  • October 01, 2024

    Merrill Lynch To Pay $2M FINRA Fine Over Trade Report Flaws

    Merrill Lynch Pierce Fenner & Smith Inc. has agreed to pay the Financial Industry Regulatory Authority $2 million to settle allegations of trade-reporting compliance shortcomings, including its alleged failure to properly trace millions of relevant retail customer transactions for over a decade.

  • October 01, 2024

    Lordstown Brass Beat Investor Suit Over Failed Foxconn Deal

    An Ohio federal judge on Monday freed current and former executives of Lordstown Motors Corp., now Nu Ride, from a proposed securities class action alleging they concealed problems ahead of a failed partnership with Taiwan-based Foxconn, saying delays and "other minor issues" didn't make general, positive statements inaccurate.

  • October 01, 2024

    CFTC Fines Barclays, 3 Others Over Swap Rule Violations

    Barclays Bank PLC on Tuesday agreed to pay the Commodity Futures Trading Commission $4 million for swap reporting violations, and three other swaps market participants copped to reporting and safeguards violations and agreed to pay more than $2 million combined in settlements that drew criticism from one commissioner.

  • October 01, 2024

    Peloton Beats Investor Suit Over COVID-19 Sales For Good

    Peloton has won the permanent dismissal of a shareholder suit accusing it of intentionally misleading investors to believe that its COVID-19 spike in demand was sustainable, with a New York federal judge saying the investors have not "articulated sufficient factual allegations to carry their assertions beyond the speculative level."

  • October 01, 2024

    Rocket Cos. Investors Lose Cert Bid In Post-Goldman Ruling

    A Michigan federal judge has declined to grant class status to Rocket Cos. investors suing over the company's post-pandemic loan portfolio, saying that optimistic statements about the firm's future were too generic to be relied upon in light of a recent U.S. Supreme Court ruling in Goldman Sachs' favor that dealt with a similar issue.

  • October 01, 2024

    Foley & Lardner Accused Of Malpractice In GWG Transactions

    Foley & Lardner LLP did not heed the fiduciary duty it owed to GWG Holdings when it facilitated loans and other transactions unfair to the life insurance-backed bond seller and, instead, enriched a group of "corrupt" shareholders, according to a lengthy adversary lawsuit filed in Texas bankruptcy court.

  • October 01, 2024

    Tesla Dodges Investor Suit Over Self-Driving Tech Claims

    A California federal judge has released Tesla Inc. from litigation accusing it of deceiving investors about the capabilities and safety record of its self-driving technology, granting it at least a temporary reprieve from the class action litigation because suing shareholders hadn't shown that CEO Elon Musk knew his statements about the technology were false.

  • October 01, 2024

    Chancery Tosses Class Suit Over TransUnion CFPB Violations

    Observing that "imperfect compliance is not bad faith," a Delaware vice chancellor dismissed on Tuesday a stockholder derivative suit seeking damages on behalf of consumer credit reporting company TransUnion for alleged board and officer failures to comply with a Consumer Financial Protection Bureau order issued in 2017.

  • October 01, 2024

    Israeli Analytics Co. Beats 'Social Engineering' Suit, For Now

    A New York federal judge has dismissed a proposed investor class action against Israeli security analytics company Cognyte Software Ltd. over claims that its tools were used to surveil and "social-engineer" journalists and politicians, saying many of the alleged misstatements are inactionable as currently presented.

  • October 01, 2024

    Starbucks Investor Suit Seems 'Premature,' Court Official Says

    A Washington appellate commissioner gave Starbucks another chance to end a shareholder suit accusing the company's leadership of turning a blind eye to union-busting by managers, saying the lawsuit appears "premature" since it mostly relies on unfair labor practice complaints that are still pending.

  • October 01, 2024

    Ex-CBD Exec Must Face SEC Fraud Suit Over $13M Deal

    The U.S. Securities and Exchange Commission sufficiently backed its claims that a former cannabidiol products executive misled investors, including by making false statements in press releases, a Connecticut federal judge has ruled.

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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