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Securities
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March 19, 2025
FCPA Uncertainty May Lead Attys To 'Gamble' On Disclosure
The Trump administration's pullback on Foreign Corrupt Practices Act enforcement is sowing confusion in the white collar bar, as companies consider whether to voluntarily disclose potential violations of the anti-bribery law while the chances of getting a favorable resolution seem good or keep quiet until the dust settles.
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March 18, 2025
Emisphere, Novo Nordisk Sale Suit On Track For Settlement
Former Emisphere Technologies Inc. stockholders are set to settle stockholder litigation over the $1.8 billion sale of the biotechnology company to Novo Nordisk A/S, a Robbins Geller Rudman & Dowd LLP attorney informed Delaware's Chancery Court on Tuesday, saying a stipulation of settlement should be in next month.
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March 18, 2025
PVC Pipe Giant's Top Brass Sued For Hiding Price-Fix Scheme
PVC pipe maker Atkore Inc.'s top executives and board members were hit with derivative claims Tuesday for allegedly shielding the company's participation in a pandemic-era price-fixing scheme, just days after investors sued the company and three executives for the same alleged conduct.
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March 18, 2025
OCC's Hood Says He Won't Tolerate 'Odious' Debanking
The Office of the Comptroller of the Currency's acting chief, Rodney Hood, told bankers on Tuesday that his agency won't tolerate so-called debanking, saying "lawful" businesses — including crypto firms — should be eligible for bank accounts and other services.
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March 18, 2025
Drugmaker's $10.5M Deal In Investor FDA Approval Suit OK'd
A California federal judge has preliminarily approved a $10.5 million settlement between oncology drug company ImmunityBio and investors who claim they were misled over the likelihood the U.S. Food and Drug Administration would approve the company's bladder cancer drug.
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March 18, 2025
Crypto Firms Tied To Milei-Promoted Libra Token Face NY Suit
A trio of crypto firms linked to a token known as Libra face a proposed class action accusing them of fraudulently raising $107 million from the controversial project, which was promoted by Argentine President Javier Milei prior to its collapse.
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March 18, 2025
Trading Giant Virtu Must Face Suit Over Confidentiality Issues
A New York federal judge has trimmed a consolidated class action accusing trading giant Virtu Financial Inc. of misleading investors on issues around access to confidential customer trading information, finding that one category of statements in the complaint is not actionable but otherwise allowing the suit to proceed.
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March 18, 2025
Citi, HSBC Ink $12M Deal To End UK Bond Price-Fixing Suit
A New York federal judge gave his preliminary blessing Monday to a $12 million settlement between investors and major financial institutions, including Citigroup and HSBC Bank, in a proposed antitrust class action accusing the banks' traders of colluding to fix the prices of U.K. government bonds through digital communications.
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March 18, 2025
PetroSaudi Says Feds' Suit Over $380M Award Must Proceed
A PetroSaudi unit is fighting the U.S. government's bid to stay its years-long suit to seize part of a $380 million arbitral award while criminal proceedings in Switzerland play out against the unit's former owner, telling a California federal court the move is a stall tactic.
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March 18, 2025
Fla. Mall Investor Gets 5 Years In $77M WeWork Stock Fraud
A Manhattan federal judge sentenced a real estate investor and former owner of a Florida waterfront shopping complex to five years in prison Tuesday following a fraud conviction in connection with manipulating the price of WeWork Inc.'s stock at $77 million shortly before the company declared bankruptcy.
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March 18, 2025
Nasdaq Plans New Regional HQ In Texas Amid Competition
Nasdaq said Tuesday it plans to build a regional headquarters in Dallas, marking the latest move among major stock exchanges to expand operations in Texas amid fierce competition for visibility in the Lone Star State.
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March 18, 2025
BlackRock Calls Red States' Suit Over Coal Prices 'Farfetched'
BlackRock Inc. and two other large asset managers have urged a Texas federal judge to toss claims brought by a coalition of Republican-led states alleging the firms ran a scheme to drive up coal prices as part of an "investment cartel," saying the case "spins a farfetched theory."
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March 18, 2025
Bancorp Downplayed CRE Bridge Loan Risks, Investor Claims
An investor in The Bancorp Inc. is accusing the financial holding company in Delaware federal court of causing stock value to decline by misleading investors, including by not fully disclosing how its commercial real estate bridge loans were in danger of defaulting.
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March 18, 2025
Judge Probes Atty Conflict In Vanguard $40M Settlement
A Pennsylvania federal judge questioned whether attorneys representing investors suing Vanguard over surprise tax bills have a conflict of interest in pushing for a $40 million settlement, adding to concerns about a parallel regulatory settlement that has delayed approval of the deal.
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March 18, 2025
Convicted Insurance Mogul's Co. Liable For $57M Fraud
A Malta-based advisory firm controlled by convicted insurance mogul Greg Lindberg violated the Investment Advisers Act of 1940 by helping facilitate his misappropriation of $57 million in client funds, a North Carolina federal court ruled, noting Lindberg and another firm executive already admitted to fraud in separate consent judgments.
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March 18, 2025
Fried Frank Adds Simpson Thacher Private Funds Pro In NY
Fried Frank Harris Shriver & Jacobson LLP has expanded its global asset management practice with the addition of a longtime Simpson Thacher & Bartlett LLP attorney, the firm announced Tuesday.
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March 18, 2025
Simpson Thacher Gains Securitization Expert In NY
A former Vinson & Elkins LLP aviation finance practice co-head has joined Simpson Thacher & Bartlett LLP as a New York partner, the firm said Tuesday.
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March 18, 2025
Hogan Lovells Adds Ex-Apis Atty Amid Expected M&A Pickup
The former head of legal compliance at Apis & Heritage Capital Partners is now Hogan Lovells' head of New York financial institutions mergers and acquisitions, the firm announced Monday as it prepares for what it expects will be a rise in M&A activity.
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March 18, 2025
Ancora Wants US Steel Meeting Delayed After Blocked Sale
U.S. Steel Corp. shareholder Ancora Holdings Group on Tuesday urged the company's board to delay its upcoming 2025 annual meeting of shareholders until more information comes out about the company's blocked $14.9 billion deal with Japan's Nippon Steel Corp.
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March 17, 2025
Meta Facing Investor Suit Over €1.2B EU Data Privacy Fine
A pair of pension funds on Monday filed suit against Meta Platforms Inc. in Delaware's Court of Chancery, accusing the company of repeatedly violating data privacy laws, a pattern that the funds say led to the company being fined €1.2 billion ($1.3 billion) by European authorities.
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March 17, 2025
PVC Pipe Co. Faces Investor COVID-Era Antitrust Claims
PVC pipe maker Atkore Inc. and three current and former executives face a proposed investor class action over the company's alleged involvement in a conspiracy to fix prices for PVC pipes amid the COVID-19 pandemic.
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March 17, 2025
Judge Axes Bid To Recoup Short-Swing Profits In Novel Ruling
A New York federal judge has ruled in a matter of first impression that sporting goods company Clarus Corp. cannot recoup $57 million in short-swing profits a trading firm made from a series of transactions because the high-volume trades fit an exemption for market-making activities.
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March 17, 2025
DOJ Dismisses BitClout Crypto Fraud Case, Court Filings Say
Federal prosecutors have dropped their fraud case against the founder of crypto project BitClout accused of ripping off a venture capital firm, while the U.S. Securities and Exchange Commission is engaged in talks about a possible end to its own civil action against him, court documents show.
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March 17, 2025
Singaporean Tech Co. Inks $46M Investor Settlement
Singaporean tech conglomerate Sea Ltd. has reached a $46 million settlement to end a putative securities class action over investor statements that allegedly downplayed massive losses to its video game and e-commerce divisions, according to a filing in Arizona federal court.
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March 17, 2025
Toyota Seeks Exit From Investors' Emission Tests Fraud Suit
Toyota Motor Corp. has asked a California federal judge to dump a proposed class action alleging it deceived investors by failing to thoroughly investigate reports of falsified vehicle certification data, saying the plaintiffs have twisted executives' public statements to inflate their securities fraud claims.
Expert Analysis
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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The Current State Of Play Around Corporate Transparency Act
Although a Texas court preliminarily enjoined enforcement of the Corporate Transparency Act and paused an impending Dec. 31 reporting deadline, multiple states have similar requirements, so companies should continue to monitor compliance obligations regardless of the CTA's constitutionality, say attorneys at Simpson Thacher.
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Implications Of NY Climate Case For Generating Facilities
Regardless of how Greenidge Generation LLC v. New York Department of Environmental Conservation develops on remand, this decision has immediate repercussions for generating facilities seeking permit applications and renewals in New York, likely involving Climate Leadership and Community Protection Act considerations, say attorneys at Hodgson Russ.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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How White Collar Attys Can Use Mythic Archetypes At Trial
A careful reading of a classic screenwriting guide shows that fairy tales and white collar trials actually have a lot in common, and defense attorneys would do well to tell a hero’s journey at trial, relying on universal character archetypes to connect with the jury, says Jack Sharman at Lightfoot Franklin.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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5th Circ. Crypto Ruling Shows Limits On OFAC Authority
The Fifth Circuit's recent decision that immutable smart contracts on the Tornado Cash crypto-transaction software protocol are not "property" subject to Office of Foreign Assets Control jurisdiction may signal that courts can construe OFAC's authority more restrictively after Loper Bright, say attorneys at Morgan Lewis.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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FTX Exec's Sentencing Shows Pros And Cons Of Cooperation
The sentencing of former FTX tech deputy Gary Wang, whose cooperation netted him a rare outcome of no prison time, offers critical takeaways for attorneys and clients navigating the burgeoning world of crypto-related prosecutions, says Andrew Meck at Whiteford.
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SEC Custody Rule Creates Crypto Compliance Conundrum
While the U.S. Securities and Exchange Commission's application of the custody rule may be a good faith attempt to enhance consumer protections for client assets, it doesn't appreciate the unique characteristics of crypto-assets, forcing advisers to choose between pursuing their clients' objectives and complying with the rule, say attorneys at Willkie.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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What Insurers Need To Know About OFAC's Expanded FAQs
The Office of Foreign Assets Control's recently expanded insurance FAQs clarify how OFAC views insurance policies in a number of specific circumstances involving sanctioned parties, and make plain that sanctions compliance is the responsibility of all participants in the insurance ecosystem, including underwriters, brokers and agents, say attorneys at Morgan Lewis.
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Rethinking Clawback Policies For 2025 Compensation Season
The start of a new year presents an opportunity for companies to reassess their executive compensation clawback policies, and while mandatory Dodd-Frank clawbacks are necessary, discretionary policies can offer companies greater flexibility to address misconduct, protect their reputations and align with shareholder priorities, say attorneys at Debevoise.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.