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Securities
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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.
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November 06, 2024
9th Circ. Says No New Trial For Tesla Investors' Suit
The Ninth Circuit on Wednesday ruled that a lower court didn't err in denying Tesla investors' request for a new trial regarding their $12 billion claim over Elon Musk's 2018 tweets that he had "funding secured" to take the electric car giant private, saying there were no improper instructions given to the jury.
Expert Analysis
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How Companies Are Approaching Insider Trading Policies
An analysis of insider trading policies recently disclosed by 49 S&P 500 companies under a new U.S. Securities and Exchange Commission rule reveals that while specific provisions vary from company to company, certain common themes are emerging, say attorneys at Gibson Dunn.
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Increased IPOs In '24 Shows Importance Of Strategic Planning
Initial public offerings, debt issuances and M&A activity so far in 2024 have shown substantial increases over comparable periods in 2023, highlighting why counsel should educate clients on market trends and financing alternatives to proactively prepare them to be ready to take advantage of opportunities, say attorneys at Skadden.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Navigating New Enforcement Scrutiny Of 'AI Washing'
The U.S. Securities and Exchange Commission's recent lawsuit against Joonko Diversity, its first public AI-focused enforcement action against a private company, underscores the importance of applying the same internal legal and compliance rigor to AI-related claims as other market-facing statements, say attorneys at Fried Frank.
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How Fund Advisers Can Limit Election Year Pay-To-Play Risks
With Minnesota Gov. Tim Walz now the Democratic candidate for vice president, politically active investment advisers should take practical steps to avoid triggering strict pay-to-play rules that can lead to fund managers facing mutli-year timeouts from working with public funds after contributing to sitting officials, say attorneys at Dechert.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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'Pig Butchering': The Scam That Exploits Crypto Confusion
Certain red flags can tip off banks to possible "pig-butchering," and with the scam's increasing popularity, financial institutions need to take action to monitor entry points into the crypto space, detect suspicious activity and provide a necessary backstop to protect customers, say Brandon Essig and Mary Parrish McCracken at Lightfoot Franklin.
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Opinion
Agencies Should Reward Corporate Cyber Victim Cooperation
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.
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9 Liability Management Tips As Debt Maturity Cliff Looms
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.
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How Transaction Lookbacks Can Guide Fintech Companies
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.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
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.
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5 Ways Life Sciences Cos. Can Manage Insider Trading Risk
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.
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Series
A Day In The In-House Life: Narmi GC Talks Peak Productivity
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.
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How Ripple Final Judgment Fits In Broader Crypto Landscape
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.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
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.