Securities

  • July 18, 2024

    Del. Justices Asked To Undo Firm's 'Malicious' Suit Escape

    Applied Energetics is asking the Delaware Supreme Court to revive a complaint alleging Gusrae Kaplan Nusbaum PLLC and a former partner filed a frivolous federal securities fraud suit in order to hobble other litigation against the company's former chief executive officer.

  • July 18, 2024

    SolarWinds Beats Most Claims In SEC's Data Breach Suit

    A New York federal judge on Thursday delivered a heavy blow to the U.S. Securities and Exchange Commission's case against software developer SolarWinds Corp. by dismissing substantial portions of the lawsuit, including claims that the company committed securities fraud by minimizing the severity of a state-sponsored attack on its flagship product.

  • July 17, 2024

    Politan Sues Masimo Over Delayed Board Election Meeting

    Activist investment firm Politan Capital Management LP launched a lawsuit Wednesday against Masimo Corp. in Delaware Chancery Court just days after the medical technology company accused it of violating securities laws by trying to gain control of Masimo through a proxy contest that duped Masimo shareholders using "lies and deceit."

  • July 17, 2024

    SEC's Peirce Calls For Rule Agenda Reset After Court Rulings

    Hester Peirce, a member of the U.S. Securities and Exchange Commission, called on the agency Wednesday to reconsider its rulemaking agenda given recent court rulings, saying it should "really think about hewing closely" to its statutory mandate, in comments made just weeks after the U.S. Supreme Court's decision to end Chevron deference.

  • July 17, 2024

    Ex-SEC Lawyer's Fellow Penny Stock Fraudster To Pay $1M

    A Texas federal judge handed down final judgment Tuesday to a co-defendant of an ex-SEC lawyer turned fraudster in a civil case involving a penny stock scheme, barring Justin Herman from ever dealing penny stocks again and ordering him to pay over $1 million.

  • July 17, 2024

    SEC Says Ex-CEO Of Trump-Tied SPAC Hid Merger Talks

    The U.S. Securities and Exchange Commission on Wednesday accused the former CEO of Digital World Acquisition Corp. of falsely representing that the special purpose acquisition company had no potential merger targets when he was actually personally discussing a merger with former President Donald Trump's social media company.

  • July 17, 2024

    Defense Contractor CAE Faces Investor Suit Over Overruns

    Defense contractor CAE was hit with a proposed shareholder class action alleging it misrepresented major incurred costs related to contracts the company entered into before the COVID-19 pandemic.

  • July 17, 2024

    Off-Channel Comms Top Concern For Compliance Pros

    Investment advisers' compliance officers have listed electronic communications surveillance as their hottest topic, beating out concerns about the U.S. Securities and Exchange Commission's marketing rule, according to a new survey of compliance professionals representing nearly 600 investment advisers.

  • July 17, 2024

    SEC Awards $37 Million To Whistleblower

    The U.S. Securities and Exchange Commission on Wednesday announced a $37 million award to a whistleblower who provided information that the commission did not previously know, which contributed to a successful enforcement action.

  • July 17, 2024

    1st Circ. Affirms SEC's $32M Win Against Investment Adviser

    The First Circuit upheld roughly $32 million in fees, disgorgement and interest the U.S. Securities and Exchange Commission won against a Nevada-based investment adviser, who was found to have defrauded clients about the track record of a once popular investment scheme, saying the adviser "acted with a high degree of recklessness" in promoting the strategy. 

  • July 17, 2024

    Merrill Lynch Urges Arbitration Of Sweeping RICO Lawsuit

    Merrill Lynch told a Texas federal judge Tuesday that a wealthy telecommunications entrepreneur who is accusing the bank of a sweeping money laundering fraud doesn't have the right to bring the case to court, as the entrepreneur agreed to arbitration when he parked his money with Merrill.

  • July 17, 2024

    Stitch Fix Unravels Investor Suit Over 'Direct Buy' Biz Line

    A California federal judge has tossed, for now, a shareholder lawsuit brought against Stitch Fix Inc. alleging the personal styling platform's former and current executives misled investors about the impact of a new business line, saying the suit fails to plead any actionable false statements or knowledge of wrongdoing by the defendants.

  • July 17, 2024

    Del. Gov. Signs Hotly Contested Corp. Law Amendments

    Delaware Gov. John Carney signed into law on Wednesday state code amendments allowing corporations to cede some governance rights to stockholders, as well as some state corporate oversight to other jurisdictions.

  • July 17, 2024

    CFTC Says Its Sanctions Spat Not Relevant To Gemini Case

    The U.S. Commodity Futures Trading Commission has pushed back against Gemini Trust Co.'s efforts to paint the regulator's defense of misconduct claims in one case as contradictory to its arguments in its enforcement action against the Winklevoss-owned crypto exchange, telling a federal court that the two matters have "no legal or factual bearing" on each other.

  • July 17, 2024

    Nasdaq Seeks To Tighten Delisting Rules Governing SPACs

    Nasdaq is proposing to strengthen its rules governing delistings and trading suspensions of special-purpose acquisition companies that fail to complete mergers within 36-month deadlines or that violate other listing standards.

  • July 17, 2024

    Teladoc Hit With Another Investor Suit Over BetterHelp Woes

    The telehealth company that owns online counseling platform BetterHelp has been slapped with a second investor suit accusing it of not being honest with investors about how profitable the mental health service actually was.

  • July 17, 2024

    Co. Seeks $17M Refund Of Celsius' Payments For Mining Site

    The successor to Celsius' bitcoin mining operation alleged in a New York bankruptcy court it is owed over $17 million in refunds for payments that the cryptocurrency platform company made to another firm that promised to build a crypto farm in Texas and failed to satisfy the agreement.

  • July 17, 2024

    Grayscale Rival's False Ad Suit Won't Move To New Court

    A Connecticut state judge on Wednesday denied Grayscale Investments LLC's request to transfer a competitor's unfair trade practices lawsuit from Bridgeport to the state court system's complex litigation docket, sustaining the plaintiff's objection that said the move would unduly delay a July 2025 trial without a valid reason.

  • July 17, 2024

    Ga. Man Ordered To Pay SEC Over Church Ponzi Scheme

    A Georgia federal judge has ordered a company and its owner to pay $1.1 million to settle claims from the U.S. Securities and Exchange Commission that they duped church members into investing in a Ponzi scheme.

  • July 17, 2024

    6th Circ. To Review 2 Standards In FirstEnergy's Cert. Fight

    The Sixth Circuit indicated Wednesday that it would have to examine the applicability of two different class certification standards in a securities suit by FirstEnergy investors, as the company insisted there was no proof its statements influenced stock prices, and that purported omissions didn't factor into the mix.

  • July 17, 2024

    Rocket Mortgage Says Results Refute Investors' Fraud Claims

    Rocket Mortgage is arguing that the company didn't mislead its shareholders when Rocket's former CEO claimed the company could grow its lending business in a rising interest rate environment because the firm's actual financial performance ended up proving that prediction true.

  • July 17, 2024

    Bruised SPAC Market Pins Revival Hopes On Veteran Backers

    More special-purpose acquisition companies are conducting initial public offerings, mostly backed by dealmakers who have completed prior mergers, bringing life to a listings market that was largely barren over the past year.

  • July 17, 2024

    FINRA Hires JPMorgan GC For Senior Enforcement Role

    The Financial Industry Regulatory Authority has hired two new senior vice presidents of enforcement, one of whom is returning to the agency after serving as general counsel of JPMorgan Chase's wealth management line, the agency announced Wednesday.

  • July 17, 2024

    Robinhood's $9M Promo Text Suit Settlement Gets Final Nod

    A Washington federal judge has awarded $2.2 million in attorney fees and granted final approval to a $9 million settlement resolving claims that stock-trading app Robinhood's referral program caused nonusers to receive unsolicited promotional texts, in violation of Evergreen State law.

  • July 17, 2024

    Ex-Goldman Sachs Analyst Gets Over 2 Years For Insider Tips

    A Manhattan federal judge hit a former Goldman Sachs analyst with a 28-month prison sentence Wednesday for tipping his stepbrother and a friend to market-moving information, saying the Long Island native wanted to be "the big man" among his peers.

Expert Analysis

  • Perspectives

    Trauma-Informed Legal Approaches For Pro Bono Attorneys

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    As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.

  • Opinion

    Del. Needs To Urgently Pass Post-Moelis Corporate Law Bill

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    After the Delaware Chancery Court's decision in West Palm Beach Firefighters' Pension v. Moelis sparked confusion around governance rights, recently proposed amendments to the Delaware General Corporation Law would preserve the state's predictable corporate governance system, says Lawrence Hamermesh at Widener University Delaware Law School.

  • 4 Arbitration Takeaways From High Court Coinbase Ruling

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    The U.S. Supreme Court's May 23 decision in Coinbase v. Suski, which provides clarity to parties faced with successive contracts containing conflicting dispute resolution provisions, has four practical impacts for contracting parties to consider, say Charles Schoenwetter and Eric Olson at Bowman and Brooke.

  • Series

    Playing Music Makes Me A Better Lawyer

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    My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.

  • How Attys Can Avoid Pitfalls When Withdrawing From A Case

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    The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.

  • FEPA Cases Are Natural Fit For DOJ's Fraud Section

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    The U.S. Department of Justice’s recent announcement that its Fraud Section would have exclusive jurisdiction over the Foreign Extortion Prevention Act — a new law that criminalizes “demand side” foreign bribery — makes sense, given its experience navigating the political and diplomatic sensitivities of related statutes, say James Koukios and Rachel Davidson Raycraft at MoFo.

  • Using A Children's Book Approach In Firm Marketing Content

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    From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.

  • The State Of Play In DEI And ESG 1 Year After Harvard Ruling

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    Almost a year after the U.S. Supreme Court decided Students for Fair Admissions v. Harvard, attorney general scrutiny of environmental, social and governance-related efforts indicates a potential path for corporate diversity, equity and inclusion initiatives to be targeted, say attorneys at Crowell & Moring.

  • 2 Oil Trader FCPA Pleas Highlight Fine-Reduction Factors

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    Recent Foreign Corrupt Practices Act settlements with Gunvor and Trafigura — the latest actions in a yearslong sweep of the commodities trading industry — reveal useful data points related to U.S. Department of Justice policies on cooperation credit and past misconduct, say Michael DeBernardis and Laura Perkins at Hughes Hubbard.

  • Influencer Considerations As FINRA Initiates Crackdown

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    To avert risks when evaluating influencer and referral programs, firms should assess the Financial Industry Regulatory Authority's recent settlements involving the supervision of social media tastemakers, as well as recent FINRA guidance in this area, say attorneys at Troutman Pepper.

  • New Crypto Reporting Will Require Rigorous Recordkeeping

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    The release of a form for reporting digital asset transactions is a pivotal moment in the Internal Revenue Service's efforts to track cryptocurrency activities that increases oversight by requiring brokers to report investor sales and exchanges, say Shaina Kamen and Max Angel at Holland & Knight.

  • What Transactional Attys Must Know About Texas Biz Courts

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    As Texas prepares to launch its new business courts, transactional attorneys — especially those involved in commercial, securities and internal governance matters — should keep several issues in mind when considering use of the state's business court system to facilitate deals and settle disputes, say attorneys at Katten.

  • Crypto Mixer Laundering Case Provides Evidentiary Road Map

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    A Washington, D.C., federal court’s recent decision to allow expert testimony on blockchain analysis software in a bitcoin mixer money laundering case — which ultimately ended in conviction — establishes a precedent for the admissibility of similar software-derived evidence, say Peter Hardy and Kelly Lenahan-Pfahlert at Ballard Spahr.

  • Series

    Being An EMT Makes Me A Better Lawyer

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    While some of my experiences as an emergency medical technician have been unusually painful and searing, the skills I’ve learned — such as triage, empathy and preparedness — are just as useful in my work as a restructuring lawyer, says Marshall Huebner at Davis Polk.

  • 5 Lessons From Ex-Vitol Trader's FCPA Conviction

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    The recent Foreign Corrupt Practices Act and money laundering conviction of former Vitol oil trader Javier Aguilar in a New York federal court provides defense takeaways on issues ranging from the definition of “domestic concern” to jury instruction strategy, says attorney Andrew Feldman.

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