Securities

  • October 02, 2024

    Baker Donelson Must Face Mississippi Ponzi Scheme Suit

    A Mississippi federal judge has denied Baker Donelson's effort to escape civil conspiracy claims alleging the firm allowed a timber company's $164.5 million Ponzi scheme to unfold, with the judge stating he was "not persuaded" by the firm's argument, as it was based on the Eleventh Circuit's interpretation of Florida law.

  • October 02, 2024

    Tilray Gets Investor Stock Suit Scrubbed For Good

    A New York federal judge has dismissed with prejudice an investor suit alleging cannabis company Tilray Inc. and its officers misled investors about a co-branding agreement's prospects, saying the latest amended complaint fails to show that the company's CEO had intent to defraud or other nefarious motives.

  • October 01, 2024

    Meta Must Face Bulk Of Social Media Harms Securities Suit

    A California federal judge on Monday trimmed but refused to throw out a proposed securities class action claiming Meta Platforms Inc. and its executives misled investors about the harmful effects of social media, finding that the investors pointed to plausibly misleading statements regarding mental health and keeping children safe.

  • October 01, 2024

    Merrill Lynch To Pay $2M FINRA Fine Over Trade Report Flaws

    Merrill Lynch Pierce Fenner & Smith Inc. has agreed to pay the Financial Industry Regulatory Authority $2 million to settle allegations of trade-reporting compliance shortcomings, including its alleged failure to properly trace millions of relevant retail customer transactions for over a decade.

  • October 01, 2024

    Lordstown Brass Beat Investor Suit Over Failed Foxconn Deal

    An Ohio federal judge on Monday freed current and former executives of Lordstown Motors Corp., now Nu Ride, from a proposed securities class action alleging they concealed problems ahead of a failed partnership with Taiwan-based Foxconn, saying delays and "other minor issues" didn't make general, positive statements inaccurate.

  • October 01, 2024

    CFTC Fines Barclays, 3 Others Over Swap Rule Violations

    Barclays Bank PLC on Tuesday agreed to pay the Commodity Futures Trading Commission $4 million for swap reporting violations, and three other swaps market participants copped to reporting and safeguards violations and agreed to pay more than $2 million combined in settlements that drew criticism from one commissioner.

  • October 01, 2024

    Peloton Beats Investor Suit Over COVID-19 Sales For Good

    Peloton has won the permanent dismissal of a shareholder suit accusing it of intentionally misleading investors to believe that its COVID-19 spike in demand was sustainable, with a New York federal judge saying the investors have not "articulated sufficient factual allegations to carry their assertions beyond the speculative level."

  • October 01, 2024

    Rocket Cos. Investors Lose Cert Bid In Post-Goldman Ruling

    A Michigan federal judge has declined to grant class status to Rocket Cos. investors suing over the company's post-pandemic loan portfolio, saying that optimistic statements about the firm's future were too generic to be relied upon in light of a recent U.S. Supreme Court ruling in Goldman Sachs' favor that dealt with a similar issue.

  • October 01, 2024

    Foley & Lardner Accused Of Malpractice In GWG Transactions

    Foley & Lardner LLP did not heed the fiduciary duty it owed to GWG Holdings when it facilitated loans and other transactions unfair to the life insurance-backed bond seller and, instead, enriched a group of "corrupt" shareholders, according to a lengthy adversary lawsuit filed in Texas bankruptcy court.

  • October 01, 2024

    Tesla Dodges Investor Suit Over Self-Driving Tech Claims

    A California federal judge has released Tesla Inc. from litigation accusing it of deceiving investors about the capabilities and safety record of its self-driving technology, granting it at least a temporary reprieve from the class action litigation because suing shareholders hadn't shown that CEO Elon Musk knew his statements about the technology were false.

  • October 01, 2024

    Chancery Tosses Class Suit Over TransUnion CFPB Violations

    Observing that "imperfect compliance is not bad faith," a Delaware vice chancellor dismissed on Tuesday a stockholder derivative suit seeking damages on behalf of consumer credit reporting company TransUnion for alleged board and officer failures to comply with a Consumer Financial Protection Bureau order issued in 2017.

  • October 01, 2024

    Israeli Analytics Co. Beats 'Social Engineering' Suit, For Now

    A New York federal judge has dismissed a proposed investor class action against Israeli security analytics company Cognyte Software Ltd. over claims that its tools were used to surveil and "social-engineer" journalists and politicians, saying many of the alleged misstatements are inactionable as currently presented.

  • October 01, 2024

    Starbucks Investor Suit Seems 'Premature,' Court Official Says

    A Washington appellate commissioner gave Starbucks another chance to end a shareholder suit accusing the company's leadership of turning a blind eye to union-busting by managers, saying the lawsuit appears "premature" since it mostly relies on unfair labor practice complaints that are still pending.

  • October 01, 2024

    Ex-CBD Exec Must Face SEC Fraud Suit Over $13M Deal

    The U.S. Securities and Exchange Commission sufficiently backed its claims that a former cannabidiol products executive misled investors, including by making false statements in press releases, a Connecticut federal judge has ruled.

  • October 01, 2024

    Binance GC Is Building The Firm's Future, One Atty At A Time

    Binance general counsel Eleanor Hughes says she inherited "probably one of the most stressful situations a lawyer can face" when she entered her role as the company negotiated a $4.3 billion settlement with U.S. authorities, but since then her focus has been on building the right team to guide the firm's compliance forward.

  • October 01, 2024

    Boeing Can't Escape Investors' 737 Max Fraud Suit

    An Illinois federal judge trimmed but refused to toss a proposed securities class action against Boeing over claims that it harmed investors by misrepresenting the 737 Max's safety, pushing back against defendants who wanted him to reach the same conclusion as the suit's previously assigned judge.

  • October 01, 2024

    Ex-NBA Star's Big Paydays Not Relevant In Hoops Fraud Trial

    Dwight Howard's NBA contracts exceeding $240 million over his 18-year playing career are irrelevant to charges that an Atlanta businessman defrauded the ex-basketball superstar out of $7 million, a Manhattan federal judge held Tuesday.

  • October 01, 2024

    Amgen Must Face Suit It Misled Investors On $10.7B Tax Bill

    Amgen lost an attempt to escape a potential class action claiming the pharmaceutical giant hid a $10.7 billion tax bill from investors after a New York federal court ruled there was sufficient evidence for the action to proceed.

  • October 01, 2024

    Biotech Investors Reach $32.5M Deal Over Failed COVID Test

    A class of Talis Biomedical Corp. investors accusing the company of inflating their stock price in the run-up to its IPO and then failing to launch a COVID-19 diagnostic test asked a California federal judge on Monday to preliminarily approve their $32.5 million settlement, citing Talis' shrinking cash reserves and imminent plans to file for bankruptcy.

  • October 01, 2024

    Big Banks Urge Panel To Toss NJ Bond Marketing Claims

    A New Jersey state judge erred when he applied a recent change in state law to deny a bid by JPMorgan Chase & Co. and other big banks to toss a suit accusing them of a scheme to inflate the interest rates of certain bonds, the banks argued Tuesday before a state appellate panel.

  • October 01, 2024

    Ex-Interior Dept. Deputy's Oil Stocks Violated Ethics Laws

    The onetime deputy secretary of the Interior, Tommy Beaudreau, who moved into private practice last year and now co-leads WilmerHale's energy practice, violated government ethics laws by failing to recuse himself from drilling-related matters while knowingly holding petroleum stocks, according to an internal watchdog's ethics report released Tuesday.

  • October 01, 2024

    Bybit Adds Ex-Binance Atty As Legal And Compliance Chief

    Crypto exchange Bybit has added a Binance and ByteDance alum to head its legal and compliance operations, the firm announced Tuesday.

  • October 01, 2024

    SEC Fines Marathon Asset Over Nonpublic Info Policies

    The U.S. Securities and Exchange Commission announced that Marathon Asset Management LP will pay $1.5 million to settle allegations that the debt investment firm failed to have adequate policies and procedures to prevent the misuse of nonpublic information in relation to its business of analyzing debtors' financial obligations.

  • October 01, 2024

    Jenner & Block Welcomes Davis Wright's Chicago Head

    Jenner & Block LLP announced the addition of the former Chicago office leader at Davis Wright Tremaine LLP on Tuesday, touting the longtime financial litigator's skills in litigation and regulatory counseling.

  • September 30, 2024

    AI Safety Bill Veto Shows Calif. Taking Regulatory 'Baby Steps'

    The California governor's rejection of sweeping legislation to ensure the safe deployment of large-scale artificial intelligence models — and his simultaneous embrace of more targeted proposals to regulate the technology — is likely to result in the wider creation of regimes that favor "baby steps" over broad strokes, experts say. 

Expert Analysis

  • Series

    Fishing Makes Me A Better Lawyer

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    Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge​​​​​​​ at Robinson Bradshaw.

  • Parsing Controversial Del. General Corporation Law Proposals

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    In response to issues raised in three recent high-profile Delaware Court of Chancery decisions, many amendments to the Delaware General Corporation Law were quickly proposed that, if enacted, would bring significant changes likely to be hotly debated — and litigated — for the foreseeable future, say attorneys at Morgan Lewis.

  • 5th Circ. Venue-Transfer Cases Highlight Mandamus Limits

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    Three ongoing cases filed within the Fifth Circuit highlight an odd procedural wrinkle that may let district courts defy an appellate writ: orders granting transfer to out-of-circuit districts, but parties opposing intercircuit transfer can work around this hurdle to effective appellate review, says Charles Fowler at McKool Smith.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

  • To Make Your Legal Writing Clear, Emulate A Master Chef

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    To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.

  • Takeaways From SEC's New Data Breach Amendments

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    The U.S. Securities and Exchange Commission's recent amendment of its consumer privacy rules to require investment advisers and broker-dealers to put procedures in place to uncover data breaches and report them to customers evidences that protecting client records and information remains an SEC priority, say attorneys at Simpson Thacher.

  • Circuit Judge Writes An Opinion, AI Helps: What Now?

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    Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.

  • NY Ruling Paves A Court Payment Shortcut For More Creditors

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    A recent New York state appeals court ruling expands access to an expedited statutory procedure for court enforcement of promissory notes or unconditional guaranties, allowing more creditors to minimize the risk of potentially challenging litigation on threshold issues, says Alexander Levi at Friedman Kaplan.

  • 9th Circ. COVID 'Cure' Case Shows Perks Of Puffery Defense

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    The Ninth Circuit's March decision in a case surrounding a company's statements about a potential COVID-19 cure may encourage defendants to assert puffery defenses in securities fraud cases, particularly in those involving optimistic statements about breakthrough drugs that are still untested, say attorneys at Cahill Gordon.

  • BF Borgers Clients Should Review Compliance, Liability

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    After the U.S. Securities and Exchange Commission's recently announced enforcement proceedings against audit firm BF Borgers for fabricating audit documentation for hundreds of public companies, those companies will need to follow special procedures for disclosure and reporting — and may need to prepare for litigation from the plaintiffs bar, say attorneys at Debevoise.

  • Class Actions At The Circuit Courts: May Lessons

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    In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses four notable circuit court decisions on topics from automobile insurance to securities — and provides key takeaways for counsel on issues including circuit-specific ascertainability requirements and how to conduct a Daubert analysis prior to class certification.

  • 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.

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