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Securities
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November 20, 2024
Musk, Ramaswamy Say High Court Rulings OK Federal Cuts
Billionaire Elon Musk and former presidential candidate Vivek Ramaswamy, President-elect Donald Trump's picks to lead a newly created "Department of Government Efficiency," on Wednesday said two recent U.S. Supreme Court rulings will give them the authority to cut off power to regulatory agencies and conduct massive federal layoffs.
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November 20, 2024
Lululemon Execs Hit With Derivative Suit Over DEI Program
Lululemon leadership was hit with a shareholder derivative suit Wednesday claiming they made false statements related to the company's new "Inclusion, Diversity, Equity and Action" program that artificially boosted the company's stock price and also concealed problems with the company's inventory allocation.
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November 20, 2024
Adani Group Chairman Charged In Sprawling Bribery Case
Prosecutors unsealed a sprawling criminal indictment in New York federal court Wednesday, accusing Adani Group Chairman Gautam S. Adani and seven others of orchestrating a $250 million bribery scheme to secure lucrative Indian government renewable energy contracts, while misleading investors about the Adani Group subsidiary's dealings.
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November 20, 2024
Ex-Pharma CEO Demands Legal Fees For SEC Probe
Cancer treatment development company Eagle Pharmaceuticals Inc.'s founder and ex-CEO told Delaware's Chancery Court Wednesday that he is entitled to legal fees he says the company owes him in connection with a U.S. Securities and Exchange Commission probe into the company's accounting practices, saying he continues to incur fees in addition to the $875,000 he has already requested.
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November 20, 2024
5 Charged For 'Scattered Spider' Phishing Hacks, Crypto Theft
California federal prosecutors unveiled a criminal case Wednesday accusing five alleged members of the "Scattered Spider" cybercrime group of using a phishing scheme to access the confidential data of media and technology companies and steal $11 million worth of cryptocurrency from digital wallets.
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November 20, 2024
FDIC Says BofA Deliberately Underpaid For Deposit Insurance
A D.C. federal judge on Wednesday weighed the Federal Deposit Insurance Corp.'s $1.1 billion unjust enrichment suit against Bank of America, promising to rule shortly on competing summary judgment motions in the years-long proceeding, but not tipping her hand as to how she might ultimately come down.
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November 20, 2024
Ex-Wells Fargo Adviser Admits To Stealing $3M From Clients
A former Wells Fargo broker and investment adviser admitted on Wednesday to stealing more than $3 million from his clients and customers and using the money for, among other things, buying gold coins, New Jersey federal prosecutors said.
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November 20, 2024
Bumble Brass Fumbled App Revamps, Investor Suit Says
Current and former brass of dating app Bumble's parent company face shareholder derivative claims that they projected overconfidence about revamping its app, then saw trading prices crater when Bumble lowered its 2024 growth projections amid the tinkering.
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November 20, 2024
Xerox Faces Investor Suit Over 'Reinvention' Strategy
Business technology company Xerox Inc. has been hit with a proposed shareholder class action in New York federal court alleging the company's stockholders were harmed by a "reinvention" strategy it introduced in 2023 that yielded lower sales and revenue.
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November 20, 2024
Advance Notice Bylaw Measures Fuel Chancery Battle
Arguing that recent corporate advance notice bylaws have resulted in "real, actual harm" to stockholders of Owings Corning and The AES Corp., attorneys for shareholders of both urged a Delaware vice chancellor on Wednesday to reject calls to dismiss challenges to the measures.
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November 20, 2024
Scotts Miracle-Gro Leaders Sued Over Post-Pandemic Glut
Executives, directors and an heir to the CEO of consumer gardening giant The Scotts Miracle-Gro Co. face a shareholder derivative action alleging the company flooded its sales channels with post-pandemic excess inventory as it struggled to avoid defaulting on its debt.
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November 20, 2024
Wells Fargo Must Turn Over E-Docs In TelexFree Litigation
A Massachusetts magistrate judge on Wednesday ordered Wells Fargo Advisors LLC to hand over electronic files maintained by a compliance manager who investigated potential misconduct by an employee handling accounts of TelexFree associates under investigation in a $3 billion Ponzi scheme.
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November 20, 2024
$2.6M Deal Proposed To End Chancery Lottery.com Suit
Five executives of the special purpose acquisition company that took Lottery.com public have reached a $2.6 million settlement with company shareholders to resolve claims that the 2021 take-public deal misled investors about the potential value of the business.
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November 20, 2024
Hinshaw Brings On Ex-JPMorgan Counsel From Ballard Spahr
A Ballard Spahr LLP attorney and former in-house counsel for JPMorgan Chase & Co. has joined Hinshaw & Culbertson LLP as a partner in the firm's consumer financial services practice group in New York, where he will advise banks, lenders and fintechs on state and federal regulations, compliance matters and litigation.
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November 20, 2024
Firms For Ohio Funds Aim To Steer ZoomInfo Investor Suit
Two Ohio retirement funds asked a Washington federal judge to name their attorneys from Labaton Keller Sucharow LLP and Byrnes Keller Cromwell LLP as lead counsel and liaison counsel in investor claims brought against ZoomInfo Technologies Inc. over its allegedly misguided attempts to maintain a pandemic-era customer boom.
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November 20, 2024
Biden Bank Regulators Punt Big-Ticket Rulemakings To Trump
Top Biden administration banking regulators told House lawmakers on Wednesday that they don't plan to move forward on efforts to strengthen banks' requirements for capital, liquidity or long-term debt before President-elect Donald Trump takes office, although the Federal Reserve's supervision chief said he's not leaving anytime soon.
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November 20, 2024
Archegos Founder Gets 18 Years For Massive Market Fraud
Bill Hwang, the founder of collapsed hedge fund Archegos, was sentenced Wednesday to 18 years in prison after he was convicted of lying to banks in order to secure billions of dollars in loans used to manipulate the market.
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November 20, 2024
Cleary Hires Milbank Atty For Capital Markets Team
Cleary Gottlieb Steen & Hamilton LLP announced the addition of a former Milbank LLP transactional attorney to its New York office on Wednesday, saying she will be an asset for its capital markets clients.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
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November 19, 2024
Pfizer Unit Can't Get $75M Left In Insider Trading Deal Fund
A New York federal judge Tuesday agreed with the U.S. Securities and Exchange Commission that roughly $75.2 million leftover in settlement funds should be transferred to the U.S. Treasury — not a Pfizer subsidiary — now that distribution of the $602 million insider trading deal has concluded.
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November 19, 2024
Ex-OpenSea Staffer Says Insider Trading Verdict Must Fall
A former OpenSea manager accused of insider trading from digital tokens sold on his employer's platform urged the Second Circuit Tuesday to overturn his conviction, saying his ideas about what to feature on his company's website cannot be construed as property.
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November 19, 2024
11th Circ. Weighs Whether Tornado Cash Sanctions Overreach
An Eleventh Circuit panel on Tuesday dove deep into the mechanisms of cryptocurrency mixing service Tornado Cash as the judges weighed whether government sanctions intended to curb illicit finance on the protocol are permitted under the law.
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November 19, 2024
Calif. Judge Says Crypto DAOs Are Entities That Can Be Sued
A California federal judge has held that decentralized autonomous organizations and their governing members can indeed be sued, refusing to throw out a Golden State cryptocurrency investor's suit against Lido DAO that the judge said presents "several new and important questions" about liability in the crypto world.
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November 19, 2024
Blood Vessel Maker Faces Investor Suit Over FDA Findings
Biotechnology company Humacyte Inc. faces an investor's proposed class action alleging the company failed to disclose quality assurance issues at its manufacturing facilities that allegedly delayed regulatory review for its bioengineered blood vessel product candidate, leading to stock price declines.
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November 19, 2024
10th Circ. Mulls Constitutional Challenge To Securities Orgs
A three-judge panel of the Tenth Circuit on Tuesday heard arguments in a case challenging the constitutionality of the nation's largest securities clearing organizations, with the judges weighing whether they should stop the organizations from acting against a broker-dealer while the case is ongoing.
Expert Analysis
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Look At Similarities Between SOX And SEC's Cyber Rule
Just as the Sarbanes-Oxley Act paved the way for greater transparency and accountability in financial reporting, the SEC's cybersecurity rule is doing much the same for cybersecurity, ensuring that companies are resilient in the face of growing cyber threats, says Padraic O'Reilly at CyberSaint.
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Trump Rollback Of Biden Enviro Policies: What To Expect
Donald Trump's upcoming second presidential term will usher significant shifts in U.S. environmental and natural resource law and policy — and while the Biden administration is racing to secure its legacy, the incoming Trump administration is making plans to dramatically roll back most, if not all, of Biden's environmental initiatives, say attorneys at Beveridge & Diamond.
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Class Actions At The Circuit Courts: November Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses six federal court decisions that touch on Rule 23 of the Federal Rules of Civil Procedure, and when individual inquiries are needed to prove economic loss.
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5 Areas Congress May Investigate After GOP Election Wins
With Republicans poised to take control of Congress in addition to the executive branch next year, private companies can expect an unprecedented uptick in congressional investigations focused on five key areas, including cryptocurrency and healthcare, say attorneys at Cahill Gordon.
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Trump's 2nd Term May Be A Boost To Banking Industry
President-elect Donald Trump's personnel appointments could be instrumental in reshaping the financial regulatory landscape during his second administration, likely allowing for greater merger activity and halting or undoing some of the Biden administration's more restrictive financial services policies, say attorneys at Debevoise.
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Legislation Most Likely To Pass In Lame Duck Session
As Congress begins its five-week post-election lame duck session, attorneys at Greenberg Traurig break down the legislative priorities and which proposals can be expected to pass.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Dissecting New Circuit Split Over SEC's Proxy Adviser Rule
The Sixth Circuit recently upheld the U.S. Securities and Exchange Commission's partial rescission of enhanced conflict-of-interest disclosure requirements for proxy voting advice businesses, creating a circuit split over broader questions concerning the standard for assessing the legality of agency actions in general, say attorneys at Cahill Gordon.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.