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Securities
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March 10, 2025
Illinois Judge Floats Sanctions In Akorn Mootness Fee Fight
An Illinois federal judge signaled Tuesday that he was open to sanctions including a mandatory violation disclosure against plaintiffs' counsel as he continues navigating a challenge to so-called mootness fees paid to settle and dismiss allegedly baseless Akorn Inc. merger disclosure suits.
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March 10, 2025
Real Estate Cos. Commingled $50M Investor Funds, SEC Says
A Washington, D.C., area man and dozens of companies under his control have agreed to pay a total of $3.3 million to settle U.S. Securities and Exchange Commission allegations they deceived their investors with improper accounting practices that involved commingling $50 million in earmarked money.
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March 10, 2025
Binance, Ex-CEO Urge Arbitration Of Crypto Investor Suit
Binance and its former CEO Changpeng Zhao asked a Florida federal judge to send a suit launched by a proposed class of investors to arbitration, arguing the suit's amended claims fall under the parties' arbitration agreement, and the investors cannot try to avoid arbitration by dropping one of the defendants.
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March 10, 2025
Masimo Founder Urges Toss Of 'Empty Voting' Suit
The founder of Masimo Corp. has urged a New York federal court to permanently toss the medical technology company's suit alleging he manipulated a shareholder vote, arguing that the suit fails to state a plausible claim under the Exchange Act.
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March 10, 2025
Alsup Refuses To Vacate Hearing Into OPM Mass Firings
U.S. District Judge William Alsup on Monday denied the Trump administration's request to vacate an upcoming evidentiary hearing into the U.S. Office of Personnel Management's mass firings of probationary federal employees, and required OPM director Charles Ezell to appear in person or else be deposed.
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March 10, 2025
Split SEC Pulls Subpoena Authority From Enforcement Head
A divided U.S. Securities and Exchange Commission on Monday withdrew a 15-year-old policy that allowed the director of enforcement to greenlight new investigations and approve the issuance of subpoenas, leaving the decision squarely in the hands of the agency's Republican majority.
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March 10, 2025
Tech Co. Beats Shareholder Suit Over Phony Amazon Reviews
A New York federal judge dismissed a securities class action against Chinese software company Tuya Inc., ruling that the registration statement for Tuya's initial public offering was not misleading for failing to disclose that some of its merchant customers procured fake reviews on Amazon.
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March 10, 2025
JPMorgan Sued Over $481M CMBS Loan With 'Inflated' Metric
Wells Fargo sued JPMorgan in New York federal court on Monday to make it pay up for a soured $481 million commercial real estate loan that it originated and securitized, allegedly based on "dramatically inflated" supporting financial data.
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March 10, 2025
All Agencies Trump Ordered To Drop DEI Must Heed Injunction
A preliminary injunction blocking President Donald Trump's executive orders axing diversity, equity and inclusion-related work applies equally to all executive agencies given directives to purge the programming, a Maryland federal judge said Monday.
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March 10, 2025
Calif. Pharma Exec Pleads Guilty To Insider Trading
A California medical doctor has pled guilty to insider trading in the securities of biopharmaceutical company Acadia Pharmaceuticals Inc. while serving on Acadia's drug safety team, admitting to trading on confidential information that helped him avoid $1.3 million in losses.
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March 10, 2025
OCC Nixes Supervisory Hurdle For Banks' Crypto Biz
The Office of the Comptroller of the Currency has told banks that they no longer need to obtain a nonobjection from the regulator to push forward with crypto plans, reaffirming interpretations issued under the first Trump administration and rescinding a Biden-era supervisory requirement for crypto activities.
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March 10, 2025
Del. Bar Panel OKs Corp. Law Bill To Curb Class Suits, Fees
A key panel of the Delaware's State Bar Association overwhelmingly approved on Monday a pending bill to put new constraints on corporate stockholder lawsuits, over objections that the measure will snuff out shareholder protections from conflicted boards and corporation controllers.
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March 10, 2025
2nd Circ. Won't Free Ex-JPMorgan Banker From Industry Ban
The Second Circuit on Monday upheld a lifetime investment advising ban against a former JPMorgan Chase & Co. and Perella Weinberg Partners investment banker convicted of insider trading, saying that the U.S. Securities and Exchange Commission presented substantial evidence demonstrating that the ban was appropriate.
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March 10, 2025
Ex-NFL Player Gets 2½ Years For $5.3M Ponzi Scheme
A former NFL linebacker was sentenced to two and a half years in prison Monday after pleading guilty to running a Ponzi scheme in which he bilked $5.3 million from investors who believed they were buying into luxury real estate and gold mines in Alaska and Ghana.
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March 10, 2025
MicroStrategy Seeks To Raise $21B To Buy More Bitcoin
MicroStrategy Inc. on Monday filed plans to raise up to $21 billion from equity sales in order to buy more bitcoin, potentially bolstering its stockpile of the flagship digital currency, represented by Latham & Watkins LLP and placement agents' counsel Davis Polk & Wardwell LLP.
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March 10, 2025
Money Manager Can't Block Alleged Client Poach, Judge Says
Connecticut investment firm TJT Capital Group LLC has not demonstrated that it will suffer irreparable harm without a temporary restraining order that bars a former member from using client information he allegedly misappropriated, a federal judge has ruled in denying the request.
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March 10, 2025
NJ Man Gets 18 Months In $50M Off-Road Tire Ponzi Scheme
A New Jersey man who pled guilty to wire fraud for his role in a $50 million Ponzi scheme in which he took investor money on the promise he could buy and resell off-the-road tires at a substantial profit has been sentenced to 18 months in prison.
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March 10, 2025
SEC Leaves Meme Coin Fraud For Other Cops To Chase
The U.S. Securities and Exchange Commission staff's decision to say that so-called meme coins are beyond the agency's purview is a welcome change from past practices, experts say, but the devil is in the details when it comes to policing fraud and helping consumers recover when projects go bust.
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March 10, 2025
Colo. Justices To Weigh Attys' Duties When Borrowing Claims
Colorado justices will consider if and when attorneys can borrow claims from other lawsuits and still satisfy their personal duty to conduct a "reasonable inquiry" under professional rules, according to an order on Monday agreeing to hear a telecommunications company's challenge to a stockholder suit.
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March 10, 2025
Ex-Cognizant Execs Support 180-Day Trial Delay In FCPA Case
Two former Cognizant Technology Solutions Corp. executives have told a New Jersey federal judge they agree with prosecutors that their bribery trial should be delayed for 180 days after the Trump administration paused enforcement of the Foreign Corrupt Practices Act.
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March 07, 2025
Musk To Give Deposition In Twitter Shareholder Suit
Elon Musk has agreed to sit for a deposition in early April in a proposed shareholder class action accusing him of fraudulently claiming Twitter had a bot problem to get out of his $44 billion acquisition of the site, his attorneys said Friday.
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March 07, 2025
FINRA Says High Court Appeal Shouldn't Stop Broker's Case
The Financial Industry Regulatory Authority told the U.S. Supreme Court on Friday that it would like to move forward with disciplinary proceedings against a broker currently challenging the organization's constitutionality before the high court, arguing that the broker doesn't face the immediate harm of expulsion from the industry while the case is pending.
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March 07, 2025
SEC Reopens Defunct Broker's Decade-Old NYSE Appeal
The U.S. Securities and Exchange Commission has issued a lengthy order reopening disciplinary proceedings against a clearing broker penalized by the New York Stock Exchange more than a decade ago, saying certain short trades may not have been prohibited by a recession-era trading freeze.
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March 07, 2025
Cloud Network Co. Brass Face Suit Over Lockdown-Era Glut
Officers and directors of cloud-based computer networking equipment maker Extreme Networks Inc. face shareholder derivative claims that they hurt investors by concealing how a glut of COVID-19 lockdown-era customer orders cast a yearslong shadow on its revenue.
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March 07, 2025
Goodyear Must Include Microplastic Proposal In Proxy
The U.S. Securities and Exchange Commission has rejected Goodyear Tire & Rubber Co.'s bid to exclude from its annual proxy statement a shareholder proposal calling for goals and timelines related to reducing tire wear shedding and subsequent microplastic pollution.
Expert Analysis
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How Decline Of Deference Will Affect Trump Policymaking
An administrative law regime without Chevron deference may limit the Trump administration’s ability to implement new policies in the short term, but ultimately help it in the long term, and all parties with an interest in regulatory changes will have to take a fresh approach to litigation, say attorneys at Covington.
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5 Evolving Concerns For Family Offices In 2025
Complex regulatory changes and emerging operational risks will force family offices to stay on their toes in 2025, with timely action particularly necessary to address several tax and reporting developments that may affect their investments and business operations, say attorneys at Morgan Lewis.
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Series
Ohio Banking Brief: All The Notable Legal Updates In Q4
Ohio's banking and financial services sector saw several significant developments in the fourth quarter of 2024, including a landmark Uniform Commercial Code ruling, adjustments to the state's Homebuyer Plus Program and the launch of the state's first women-led bank, says attorney Alex Durst.
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2024 Was A Banner Year For Shareholder Activism
Shareholder activism campaigns in 2024 continued at an elevated pace globally, with activist investors exploiting valuation gaps and pushing aggressively for corporate governance reforms, including the ouster of many companies' chief executives, a trend that could continue once President-elect Donald Trump takes office, say attorneys at Sidley.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Impact Of Successful Challenges To SEC's Rulemaking Ability
In 2024, the U.S. Securities and Exchange Commission faced significant legal challenges to its aggressive rulemaking agenda as several of its rules were vacated by the Fifth Circuit, which could hinder the SEC's ability to enact rules extending beyond express statutory authority in the future, say attorneys at Debevoise.
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A Look At PCAOB's Record-Breaking Enforcement In 2024
The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
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2 Cases May Enlighten UK Funds' Securities Litigation Path
Following recent nine-figure settlements in securities class actions against Apple and Under Armour, U.K. pension funds may increasingly lead U.S. shareholder derivative suits, advocating for transparency, better risk management and stronger governance practices, say lawyers at Labaton Keller.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Takeaways From SEC's Mixed Results In '24 Crypto Litigation
Though the U.S. Securities and Exchange Commission's new leadership seems likely to create a more favorable cryptocurrency regulatory environment, it must also confront the consequences of, and lingering questions raised by, the SEC's 2024 policy of investigating and charging cryptocurrency trading platforms for operating unregistered exchanges, say attorneys at Dechert.
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Predicting What's Next For SEC By Looking At Past Dissents
While Paul Atkins' nomination to be the next chair of the U.S. Securities and Exchange Commission has taken center stage, an analysis of Republican Commissioners Hester Peirce and Mark Uyeda's past votes and dissents provides a preview of where enforcement may shift in the new administration, say attorneys at Gibson Dunn.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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What 2024's Noncompete Turmoil Means For Banks In 2025
A look back at the most significant legal challenges to the enforceability of various restrictive covenants like noncompete and nonsolicitation agreements in 2024 can help financial institutions address the use of these critical tools this year, say attorneys at Maynard Nexsen.
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Opinion
3 New Year's Resolutions For Antitrust Agencies To Consider
James Fredricks at Skadden rings in 2025 with his wish list for the federal antitrust agencies, starting with a provision for a presumptive safe harbor for information sharing.