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Securities
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March 27, 2025
SEC Liquidity Rule Suit Can't Be Axed Just Yet, Judge Says
A New York federal judge on Thursday refused to toss the U.S. Securities and Exchange Commission's suit alleging that Pinnacle Advisors LLC exceeded its allowed allotment of illiquid investments, as the intervening Loper Bright ruling has changed the standard for evaluating agency action since the dismissal bid was filed.
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March 27, 2025
Chinese Fintech Investors Urge NJ Court To Keep Suit Alive
Investors in Chinese fintech company 9F Inc. urged a New Jersey federal judge to keep their securities class action alive on Thursday, arguing that their third amended complaint now includes the specific details the court previously said would make their securities fraud claims viable.
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March 27, 2025
Crypto YouTuber Should Face Logan Paul's Suit, Judge Says
A Texas magistrate judge said media personality Logan Paul should be able to pursue his defamation claims against the YouTuber who called Logan's failed cryptocurrency project a "scam," given that the YouTuber presented the allegations as more fact than opinion.
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March 27, 2025
EV Co. Pumped Stocks Ahead Of 'Reverse' Splits, Suit Claims
Electric vehicle maker Mullen Automotive Inc. faces a proposed investor class action alleging that the company and a trio of its executives manipulated trading prices for the company's shares in advance of reverse stock splits that consolidated the number of shares of the company five times over roughly two years.
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March 27, 2025
Upstart Investors Land Class Cert. In Insider Selling Suit
Shareholders who allege that tech-based lender Upstart and its executives participated in a $2.7 billion insider stock selling scheme can now proceed with their claims as a class, an Ohio federal judge determined on Thursday.
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March 27, 2025
Alibaba Investors' Attys Awarded $108M In IPO Settlement
A New York federal judge on Thursday granted final approval to Alibaba Group's $433.5 million settlement with investors suing the company over alleged misstatements about its exclusivity practices and its planned initial public offering of a fintech affiliate, awarding the investors' attorneys 25%, or roughly $108 million.
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March 27, 2025
Umpqua Bank Strikes Deal With Investors In $300M Ponzi Suit
Umpqua Bank and a class of investors on Thursday informed a California federal judge they've reached a settlement to resolve claims the bank helped execute an alleged $300 million Ponzi scheme led by a since-deceased real estate investment manager.
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March 27, 2025
Russian Oligarch-Linked Firm Owner Can't Shake SEC's Claim
A New York federal judge has declined to toss claims brought by the U.S. Securities and Exchange Commission against an investment firm owner who allegedly managed a Russian oligarch's wealth in America without ever registering with the SEC as required.
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March 27, 2025
New Del. Claims Filed In Jenzabar Stock Warrant Battle
Investors in a fund focused on higher education software company Jenzabar Inc., a company mired in years-old Delaware Court of Chancery battles over stock warrants dating to 2004, have filed an expanded, nine-count suit accusing the company and key officials of looting the fund and wrongly terminating their interests.
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March 27, 2025
PayPal Investors Drop Derivative Suit Over SEC, CFPB Probes
Shareholders of PayPal voluntarily dismissed their derivative suit against the company's executives and directors accusing them of making false statements about PayPal's practices that allegedly led to federal investigations, saying the dismissal is proper since the defendants were not liable in a similar securities class action filed against them.
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March 27, 2025
Coverage Row Over OpenText Merger Now Moot, Judge Says
A Michigan federal court tossed on Thursday an insurer's lawsuit seeking a declaration that it had no duty to indemnify a shareholder class action stemming from Covisint's 2017 merger with software company OpenText, finding the dispute is now moot because the insurer's coverage limit has already been exhausted.
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March 27, 2025
FINRA Improperly Acts As Government Agency, 6th Circ. Told
The owner of a consulting company has urged the Sixth Circuit to overturn a decision by the U.S. Securities and Exchange Commission affirming sanctions imposed by the Financial Industry Regulatory Authority for alleged securities fraud, arguing that FINRA never had jurisdiction over him.
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March 27, 2025
SEC Drops Defense Of Biden-Era Climate Disclosure Rules
The U.S. Securities and Exchange Commission said Thursday it would no longer defend regulations requiring some of the world's largest corporations to publicly disclose the effects climate change could have on their businesses, walking away from an Eighth Circuit challenge to the rules that the agency's acting chair called "unnecessarily intrusive."
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March 27, 2025
Atkins Suggests He May Open SEC's Doors To DOGE
Paul Atkins, President Donald Trump's pick to lead the U.S. Securities and Exchange Commission, on Thursday appeared to welcome the potential arrival of Elon Musk's Department of Government Efficiency at the agency, while also pushing back on suggestions that his earlier votes as a Republican commissioner exacerbated the 2008 financial crisis.
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March 27, 2025
Faegre Drinker Securities Ace Joins Spencer Fane In Denver
Spencer Fane LLP has added a securities litigation partner from Faegre Drinker Biddle & Reath LLP to its Denver office, the firm announced Thursday.
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March 27, 2025
9th Circ. Won't Stay Injunction Compelling Fed. Worker Rehire
A split Ninth Circuit panel has refused to block an injunction compelling the Trump administration to reinstate about 16,000 probationary employees to six federal agencies, saying the administration will likely lose its argument that the agencies weren't acting on an order from above when they fired the workers.
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March 27, 2025
FCPA 'Purgatory' Frustrates White Collar Bar, Anxious Clients
An abrupt pause in Foreign Corrupt Practices Act enforcement has created tension between clients eager to resolve investigations and their attorneys, who are having trouble reaching decision-makers at the U.S. Department of Justice and are more inclined to await further guidance from the government.
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March 26, 2025
Feds Led Jury Astray About $175M JPMorgan Deal, Javice Says
A lawyer for Frank founder Charlie Javice on Wednesday told a Manhattan federal jury that prosecutors have spent weeks misleading them about evidence purporting to show that she conned JPMorgan Chase & Co. into buying the now-defunct educational startup for $175 million, based on false information.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
Supreme Court Skeptical Of Nixing FCC Subsidy Fund
Conservative justices took aim Wednesday at rising costs in the country's multibillion-dollar phone and broadband subsidy system, questioning whether lawmakers put meaningful limits on the program's growth, but some argued the fund works just like others created by Congress that rely on revenues from industry fees.
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March 26, 2025
7 Firms Compete To Lead Novo Nordisk Securities Suit
Levi & Korsinsky LLP, Pomerantz LLP and the Rosen Law Firm PA are among seven law firms vying to lead proposed class claims accusing Novo Nordisk A/S of misleading investors about a clinical trial for an obesity drug.
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March 26, 2025
Crypto Co. CEO Must Face Suit Alleging Refund Fraud
The CEO of Power Block Coin LLC, which does business as SmartFi, must face a suit accusing him and the company of refusing to fulfill their "buyback guarantee" of its SmartFi tokens, with a Pennsylvania federal court ruling that the plaintiffs have sufficiently alleged that the CEO promised SmartFi would refund investors their money.
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March 26, 2025
Standard General's $4.6B Bally's Buy Draws Del. Court Suit
Hedge fund Standard General LP and its founder Soohyung Kim pulled the strings on Bally's Corp.'s $4.6 billion sale, grabbed control of the post-transaction entity and ultimately hurt stockholders, investors claim in a proposed class action filed Monday in Delaware Chancery Court.
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March 26, 2025
Atty's Falsehoods In Key Docs Aided $23M Fraud, Suit Says
A pair of investment funds and two investors have hit a lawyer with professional malpractice and misrepresentation claims in Illinois federal court, accusing him of making false statements in solicitation documents to help their since-convicted managing member carry out a $23 million fraud.
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March 26, 2025
Atkins' Industry Ties To Be Under Scope At SEC Nom Hearing
President Donald Trump's pick to lead the U.S. Securities and Exchange Commission is expected to receive a friendly reception from Republican senators at his confirmation hearing on Thursday, but one leading Democrat has promised to press Paul Atkins on his ties to industry and the conflicts that could create.
Expert Analysis
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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.
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Best Practices To Find Del. Earnout Provisions That Hold Up
Recent Delaware earnout litigation illustrates the need for careful drafting and proactive planning to avoid later divergent interpretations of the signed contract, and a series of drafting tips can help, say attorneys at Cozen O'Connor.
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Climate Disclosure Spotlight Shifts To 2 Calif. Laws
With Donald Trump's election spelling the all-but-certain demise of the proposed federal climate disclosure rules, new laws in California currently stand as the nation's only broadly applicable climate disclosure requirements — and their brevity is both a blessing and a curse, say attorneys at Davis Polk.
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What's Ahead As Transparency Act Comes To A Crossroads
Synthesizing the contrasting federal district and appellate court rulings on the Corporate Transparency Act’s validity reveals several main areas of debate that will likely remain at issue as challenges to the law continue winding through the courts, say attorneys at Farella Braun.
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UBS Ruling Shows SDNY's Pro-Award Confirmation Stance
A New York federal court's recent ruling upholding an arbitration award in Lakah v. UBS, a long-running dispute over a bond debt default, serves as a reminder that New York courts carry a strong presumption toward binding parties to arbitration agreements and enforcing arbitral awards, say attorneys at Mayer Brown.
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Where Payments Law And Regulation Are Headed In 2025
The Trump administration will likely bring significant changes to payments regulations in 2025, but maintaining internal compliance efforts in the absence of robust federal oversight will remain key as state authorities and private plaintiffs step into the breach, say attorneys at Stinson.
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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.