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Securities
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January 21, 2025
Trump Names Interim Top Prosecutors In Manhattan, Brooklyn
President Donald Trump named two high-ranking prosecutors to be interim U.S. attorneys in the Southern and Eastern districts of New York while his long-term picks for the posts await Senate confirmation, spokespeople for the offices confirmed Tuesday.
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January 21, 2025
Crypto Firm To Plead Guilty In Market Manipulation Case
A financial services firm based in the United Arab Emirates has agreed to plead guilty to a fraudulent "wash trading" scheme and will stop working in the U.S. cryptocurrency industry as part of a deal announced Tuesday by Boston federal prosecutors.
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January 21, 2025
Ex-Cannabis Exec Hit With Insider Trading Charges
A former executive of cannabis giant Verano Holdings and friends from his country club have been hit with both criminal charges and a civil lawsuit for insider trading, with the government alleging they bought stock in a rival cannabis company Verano had planned to acquire based on nonpublic information.
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January 21, 2025
Medical Cannabis REIT Misled Investors, Suit Claims
A medical cannabis-focused real estate investment trust lied to its shareholders about the profitability of its leasing operations and declining rents, a new suit has alleged in Maryland federal court.
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January 21, 2025
New SEC Task Force Eyes 'Sensible' Crypto Regulations
A day after being appointed acting chairman of the U.S. Securities and Exchange Commission, Mark T. Uyeda on Tuesday launched a cryptocurrency task force to develop "a comprehensive and clear regulatory framework" for such assets.
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January 21, 2025
Weil Adds SEC's Asset Management Co-Chief To NY Group
A more-than 12-year veteran of the U.S. Securities and Exchange Commission, who most recently co-led the agency's Asset Management Unit, is joining Weil Gotshal & Manges LLP as the firm continues adding former regulators to begin the New Year.
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January 21, 2025
Trump Orders Federal Workers Back To Office
On his first day back in the Oval Office, President Donald Trump ordered federal workers back to theirs.
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January 17, 2025
Law360 Names Practice Groups Of The Year
Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2024, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.
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January 17, 2025
Law360 Names Firms Of The Year
Eight law firms have earned spots as Law360's Firms of the Year, with 54 Practice Group of the Year awards among them, steering some of the largest deals of 2024 and securing high-profile litigation wins, including at the U.S. Supreme Court.
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January 20, 2025
Trump, Musk Sued By Nonprofits Over DOGE Transparency
Public Citizen and other nonprofits hit the Trump administration with multiple lawsuits seeking to shut down the new Department of Government Efficiency in D.C. federal court Monday, alleging the Elon Musk-led advisory committee targeting government waste lacks requisite transparency guardrails to prevent DOGE from solely advancing private interests.
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January 17, 2025
FDIC Missed Some Crypto 'Pause' Letters, Coinbase Ally Says
The research consultancy suing the Federal Deposit Insurance Corp. on behalf of Coinbase for documents on the regulator's internal views on crypto said Friday that it intends to update its complaint with new allegations that the FDIC did not conduct a thorough search and may be engaging in unlawful practices, based on purported whistleblower reports.
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January 17, 2025
DC Circ. Unsure On Restoring CFTC's Election Betting Ban
The D.C. Circuit seemed hesitant Friday to reimpose a ban that the U.S. Commodity Futures Trading Commission had placed on gambling over the fate of U.S. elections, as the judges spent over an hour trying to parse what Congress meant when it said that gaming on derivatives platforms was prohibited.
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January 17, 2025
Par Funding's Fraud Caused $288M In Losses, Pa. Judge Says
Par Funding caused $288 million in losses stemming from a scheme to defraud investors who poured money into its cash advance business, a Pennsylvania federal judge said Friday, days after holding an evidentiary hearing where the government and the defendants sparred over dueling loss amounts.
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January 17, 2025
SEC Fines Transamerica $2.9M Over Retirement Biz Conflicts
The U.S. Securities and Exchange Commission on Friday fined registered investment adviser Transamerica Retirement Advisors LLC $2.9 million to settle claims it concealed conflicts of interest generated by Transamerica's incentive compensation payments to representatives.
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January 17, 2025
Feds Say Pa. Investment Adviser Stole $20M From Clients
A Pennsylvania investment adviser's alleged misappropriation of more than $20 million worth of client funds has landed him criminal charges and civil enforcement action from U.S. Securities and Exchange Commission.
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January 17, 2025
FirstEnergy Execs Hit With RICO Charges Over Bribe Scandal
Two former executives of FirstEnergy Corp. have been hit with federal racketeering charges over their alleged scheme to bribe Ohio House of Representatives members for a billion-dollar bailout that has drawn scrutiny from government agencies and led to long prison sentences for others involved in the scandal.
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January 17, 2025
CFPB, Student Loan Co. Ink $2.25M Deal Over Debt Practices
The National Collegiate Student Loan Trusts agreed to pay $2.25 million to resolve the Consumer Financial Protection Bureau's suit accusing it of harming borrowers through unfair collection tactics on private student loan debts, according to a joint motion to approve the stipulated judgment filed in Delaware federal court.
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January 17, 2025
Crypto Coder Sues Feds To Block 'Money Transmitter' Label
Crypto policy think tank Coin Center is supporting one of its fellows in suing the federal government over its allegedly "mistaken view" of how criminal money transmission statutes apply to crypto software.
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January 17, 2025
Michigan Justices Won't Answer Securities Test Issue
The Michigan Supreme Court on Friday denied an appeal from a developer asking justices to find a state law test rather than a federal one should be used to determine if a promissory note is a security, leaving in place a ruling that keeps the developer liable for notes issued in a $6 million project.
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January 17, 2025
SEC Says Food Tech Startup Overstated Revenue By $550M
The U.S. Securities and Exchange Commission on Friday fined venture-backed food technology startup GrubMarket $8 million for allegedly misleading investors by overstating revenue by more than $550 million, with faulty accounting that regulators say the company should have known was unreliable.
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January 17, 2025
LPL Fined $18M Over Lax Anti-Money Laundering Compliance
The U.S. Securities and Exchange Commission on Friday fined LPL Financial LLC $18 million to settle claims that the firm's anti-money laundering program suffered from significant shortcomings, including the failure to close high-risk accounts such as cannabis-related and international accounts.
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January 17, 2025
Lyft Shareholder Suit Over Earnings Report Error Tossed
A California federal judge tossed a proposed class action Thursday against Lyft that alleged the ride-sharing giant defrauded investors when it issued an earnings release with an error that caused its stock to shoot up and then fall in under an hour when the error was corrected.
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January 17, 2025
Nasdaq Pulls Board Diversity Rules After 5th Circ. Loss
Nasdaq has moved to formally undo its rules requiring that companies listed on the exchange disclose board diversity data, following a narrow, en banc ruling from the Fifth Circuit last month finding that the rules ran afoul of federal securities law.
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January 17, 2025
Wells Fargo, BofA Units Pay SEC $60M Over Cash Sweeps
The U.S. Securities and Exchange Commission on Friday announced that Merrill Lynch and two units of Wells Fargo will pay a combined $60 million to settle claims they failed to implement preventative procedures concerning their cash sweep programs.
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January 17, 2025
Drink Maker Celsius Settles SEC's Accounting Claims For $3M
The U.S. Securities and Exchange Commission on Friday fined beverage company Celsius Holdings Inc. $3 million to settle claims that it issued financial statements that were materially inaccurate and misleading due to misreported stock award information.
Expert Analysis
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Managing Litigation Side-Switching During 2nd Trump Admin
Now that the new presidential administration is in place, the government will likely switch positions in a number of pending cases, and stakeholders should employ strategies to protect their interests, say attorneys at Covington.
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Chancery May Have Raised Bar For Books, Records Requests
The Delaware Court of Chancery recently approved the denial of a books and records demand against Amazon, raising important questions about what evidence and purpose a stockholder is required to show to succeed on such a request, say attorneys at Selendy Gay.
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The Blueprint For A National Bitcoin Reserve
The new administration has the opportunity to pave the way for a U.S.-backed crypto reserve, which could conceptually function as a strategic asset akin to traditional reserves like gold markets, hedge against economic instability, and influence global crypto adoption, say attorneys at Duane Morris.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Takeaways From SEC's Registered Investment Cos. Risk Alert
The U.S. Securities and Exchange Commission's Division of Examinations' recent risk alert pertaining to registered investment companies provides a high-level overview of its risk-based approach to selecting RICs for examination — a potential hint that the division is investigating some of the covered topics, say attorneys at Simpson Thacher.
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How DOGE's Bite Can Live Up To Its Bark
All signs suggest that the Department of Government Efficiency will be an important part of the new Trump administration, with ample tools at its disposal to effectuate change, particularly with an attentive Republican-controlled Congress, say attorneys at K&L Gates.
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Small Biz Caught In Corporate Transparency Act Crossfire
Despite compliance being put on hold due to a nationwide preliminary injunction, small businesses have been caught in the middle of the legal battle over the Corporate Transparency Act — and confusion over the law's requirements could result in major penalties, say attorneys at Snell & Wilmer.
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5 Notable Information Security Events In 2024
B. Stephanie Siegmann at Hinckley Allen discusses 2024's largest and most destructive data breaches seen yet, ranging from ransomware disrupting U.S. healthcare systems on a massive scale, to tensions increasing between the U.S. and China over cyberespionage and the control of U.S. data.
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Series
Playing Rugby Makes Me A Better Lawyer
My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
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What Broker-Dealers Must Know Before Selling Bitcoin ETPs
Interest in bitcoin exchange-traded products is already high, and only expected to grow in light of the incoming Trump administration's pro-crypto stance, but broker-dealers must still consider numerous regulatory requirements before recommending a bitcoin ETP to a client, say Frank Weigand and Justine Woods at Cahill Gordon.
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Series
Texas Banking Brief: All The Notable Legal Updates In Q4
The fourth quarter of 2024 brought noteworthy developments to the Texas financial services sector, particularly a new state artificial intelligence bill and a Consumer Financial Protection Bureau rule that will affect an outsize number of Texas community banks, says Tyler George at Naman Howell.
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Cyber Disclosure Is A Mainstay In 2025 SEC Exam Priorities
Despite a new administration and a new U.S. Securities and Exchange Commission chair incoming, the SEC's 2025 examination priorities signal that cybersecurity disclosures and risk management practices will remain important due to the growing threat of cyberattacks, says Anjali Das at Wilson Elser.
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Opinion
No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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The Compliance Trends And Imperatives On Tap In 2025
The corporate ethics and compliance landscape is rapidly evolving, posing challenges from conflicting stakeholder expectations to technological disruptions, and businesses will need to explore human-centered, data-driven and evidence-based practices, says Hui Chen at CDE Advisors.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.