Securities

  • December 02, 2024

    Metropolitan Commercial Bank Aided Voyager Fraud, Suit Says

    Voyager Digital's former bank, Metropolitan Commercial Bank, has been hit with a 53-count complaint in New York federal court alleging it was complicit in bad behavior by the now-defunct crypto lender and should be on the hook for repaying platform users.

  • December 02, 2024

    SEC, Ill. Lender Reach $4M Deal Over Failure To Register

    An Illinois convertible note dealer and its president have agreed to pay the U.S. Securities and Exchange Commission over $3.9 million to resolve claims they violated registration provisions of the federal securities laws while lending to penny stock issuers.

  • December 02, 2024

    SEC Crypto Cases To Face Review Under Trump

    President-elect Donald Trump's promises of a friendlier approach to the digital asset industry means a review is coming for the U.S. Securities and Exchange Commission's controversial crypto suits, but experts agreed that this doesn't mean enforcement actions in the space will grind to a halt.

  • December 02, 2024

    Investor Alleges Medical Device Co. Misled On FDA Clearance

    The executives and directors of dialysis equipment company Outset Medical Inc. have been hit with a shareholder derivative suit in California federal court alleging they allowed the company to market its product without proper clearance from the U.S. Food and Drug Administration.

  • December 02, 2024

    Bipartisan Bill Calls For AI Studies From Financial Regulators

    Leaders of the U.S. House Financial Services Committee want to codify their commitment to regulating and cultivating the use of artificial intelligence in the financial services industry with legislation introduced Monday that directs financial and housing regulators to produce reports on the use of AI in their respective sectors.

  • December 02, 2024

    Chancery OKs $21M Deal To End Gene Co. Class Suit

    A $21 million settlement of stockholder challenges to a blank check company's take-public merger with clinical data and genomics company Sema4 Holdings in July 2021 won Delaware Court of Chancery approval Monday, with nearly $4.1 million carved out for attorney fees.

  • December 02, 2024

    SEC Taps Former Crypto Chief To Head Litigation Efforts

    The former acting chief of the U.S. Securities and Exchange Commission unit in charge of overseeing cybersecurity and cryptocurrency-related cases has been promoted to chief litigation counsel, expanding his oversight authority even as a more crypto-friendly administration is slated to enter the Oval Office in January. 

  • December 02, 2024

    Top Promoter Of $58M IcomTech Crypto Ponzi Gets 10 Years

    A Manhattan federal judge hit a Florida cryptocurrency salesman on Monday with a 10-year prison sentence for his role in promoting the $58 million IcomTech Ponzi scheme, saying he victimized others in a "get rich quick" scam and may do so again.

  • December 02, 2024

    Funds Get $30M Payout From SEC's Fight With Fugitive Trader

    A Connecticut federal judge has approved a receiver's plan to distribute $30 million to four Oak Management Corp. funds that were among the victims of a former in-house trader who spent a decade defrauding investors and misappropriating $67 million, court records show.

  • December 02, 2024

    JPMorgan, Tesla Agree To End $162M Suit Over Musk Tweet

    JPMorgan Chase & Co. and Tesla told a New York federal judge on Monday the parties have agreed to voluntarily end JPMorgan's suit alleging Tesla owes it $162 million over expired stock warrants after Tesla CEO Elon Musk mulled taking the company private in an August 2018 tweet.

  • December 02, 2024

    Chancery OKs $345M Fee Award For $55B Musk Pay Fight

    Delaware's chancellor approved a $345 million attorney fee award Monday in the case that scuttled Tesla CEO Elon Musk's 10-year, $55.6 billion compensation plan, rejecting the plaintiff's bid for $5.6 billion in freely tradable company shares and declining to reinstate Musk's proposed pay.

  • December 02, 2024

    Freshfields Lands Onetime SEC Acting Enforcement Head

    Freshfields has added a litigation partner in its Washington, D.C., office who brings with her nearly 17 years of government experience including time as acting director of the U.S. Securities and Exchange Commission's enforcement division, according to a Monday announcement.

  • December 02, 2024

    EB-5 Visa Scam Suit Against Fla. Immigration Atty Ends

    A Florida federal judge on Monday dismissed with prejudice a lawsuit against an immigration attorney over a $500,000 visa scam after the two parties filed a stipulation of dismissal.

  • December 02, 2024

    Australia Passes Public Country-By-Country Reporting

    Multinational businesses with large operations in Australia are required to publicly disclose information about their operations in tax havens as designated by the government under a country-by-country reporting law that lawmakers adopted following a two-year saga over concerns about the data's confidentiality.

  • December 02, 2024

    Ex-Palo Alto Engineer Fights Fraud Conviction At 9th Circ.

    A former Palo Alto Networks engineer urged the Ninth Circuit on Monday to overturn his securities fraud conviction and 18-month prison sentence, arguing that he didn't have a personal relationship with the tipper and so there isn't sufficient evidence to show he traded off of insider information.

  • November 27, 2024

    Zoom Offers SEC $18M To Settle 2020 Privacy Probe

    Zoom Communications disclosed in a U.S. Securities Exchange and Commission filing that it has offered $18 million to settle an agency investigation into "various security, data protection and privacy matters," including the videoconferencing platform's encryption.

  • November 27, 2024

    GM, Cruise Say DPA Has No Bearing On Securities Fraud Suit

    General Motors and its driverless car unit Cruise LLC have told a Michigan federal judge that Cruise's deferred prosecution agreement with the U.S. Department of Justice over a San Francisco pedestrian accident doesn't help investors in a proposed securities fraud class action.

  • November 27, 2024

    Law Profs Tell Del. Justices Moelis Appeal Would Blunt DGCL

    Fourteen law professors have urged Delaware's Supreme Court to reject what they branded as a corporate bar effort to use an appeal from a Chancery Court ruling — potentially mooted for future claims by a new law — in order to "enact a sweeping transformation of the way that Delaware's corporate law gets made."

  • November 27, 2024

    Rentokil Hid Terminix Merger Issues, Pension Fund Alleges

    A pension fund claims in a new proposed class action that pest control company Rentokil Initial PLC hid disruptions and challenges during its merger with Terminix Global Holdings Inc. to fully integrating the acquired business, negatively impacting Rentokil's revenue growth as a result.

  • November 27, 2024

    GOP-Led States Accuse BlackRock Of Driving Up Coal Prices

    Texas is leading a coalition of nearly a dozen Republican-led states suing BlackRock Inc. and two other large asset managers for allegedly running an "investment cartel" that takes advantage of their large holdings in publicly traded energy companies to drive up coal prices, a claim that BlackRock has said is "baseless and defies common sense."

  • November 27, 2024

    CFPB Fights Student Loan Servicer's Bid To Pause Deal

    The Consumer Financial Protection Bureau has told a Pennsylvania federal court that student loan servicer Pennsylvania Higher Education Assistance Agency shouldn't get to pause its work fulfilling a settlement just because a third party had appealed a separate deal with the loan holders.

  • November 27, 2024

    5th Circ. Reverses Treasury's Block Of Crypto Mixer

    The Fifth Circuit has rejected the government's blacklisting of Tornado Cash for "its role in laundering virtual currency for malicious cyber actors," saying the cryptocurrency service's immutable smart contracts, or lines of privacy-enabling software code, are not "property" and are therefore unownable and cannot be blocked under the International Emergency Economic Powers Act.

  • November 27, 2024

    Ga. CPA Must Pay SEC $850K For Ponzi Scheme Role

    An Atlanta certified public accountant accused of serving as a front man for a convicted former Oppenheimer & Co. adviser's $110 million Ponzi scheme was hit with a money judgment of more than $854,000 by a Georgia federal judge.

  • November 27, 2024

    SEC Exempts More Debt Securities From New Trading Rules

    The U.S. Securities and Exchange Commission is relieving broker-dealers who quote unlisted stocks from increased information-gathering requirements that would have also applied to many fixed-income securities, a development attorneys say will prove welcome for debt issuers.

  • November 26, 2024

    GE Inks $362.5M Settlement In Investors' Stock Fraud Suit

    General Electric Co. shareholders asked a Manhattan federal judge to greenlight a $362.5 million settlement resolving long-running litigation on the cusp of trial that alleged the industrial giant's stock price plummeted after it was revealed the company fraudulently concealed cash flow problems.

Expert Analysis

  • What Trump Presidency May Mean For Climate Reporting

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    While the Trump administration will likely take a hands-off approach to climate-related disclosures and rescind regulations promulgated under the Biden administration, state and international ESG laws mean the private sector may not reverse course on such disclosures, say attorneys at Seyfarth.

  • SEC Action Indicates Continued Focus On ESG Disclosures

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    The U.S. Securities and Exchange Commission's recently settled enforcement action against Invesco Advisers provides a road map for how regulatory agencies will continue to focus on ESG-related disclosures going forward, and underscores a focus on greenwashing, say attorneys at V&E.

  • The Bar Needs More Clarity On The Discovery Objection Rule

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    Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.

  • The AI Consumer Class Action Threat Is Not A Hallucination

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    As regulators scrutinize whether businesses can deliver on claims about their artificial intelligence products and services, the industry faces a wave of consumer fraud class actions — but AI companies can protect themselves by prioritizing fundamental best practices that are often overlooked, say Ronald Levine at Herrick Feinstein and Richard Torrenzano at the Torrenzano Group.

  • What's Next For The CFTC After The Election

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    While much of the U.S. Commodity Futures Trading Commission's enforcement actions in line with its traditional priorities will continue as usual in the near term, postelection leadership changes at the CFTC and new congressional priorities may alter the commission's regulatory framework in 2025 and beyond — particularly its oversight of crypto, say attorneys at WilmerHale.

  • Del. Dispatch: Clarifying Charter Amendment Vote Obligations

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    The Delaware Court of Chancery recently held in Gunderson v. The Trade Desk that only a majority stockholder vote is needed to approve a company's proposed reincorporation from Delaware to Nevada through a corporate conversion, which bodes well for other companies also considering leaving the First State, say attorneys at Fried Frank.

  • What's Still Up In The Air After Ruling On Calif. Climate Laws

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    A California federal court's recent ruling on challenges to California's sweeping climate disclosure laws resolved some issues, but allows litigation over the constitutionality of the laws to continue, and leaves many important questions on what entities will need to do to comply with the laws unanswered, say attorneys at Paul Hastings.

  • Series

    Being A Navy Reservist Makes Me A Better Lawyer

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    Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.

  • Navigating DOJ's Patchwork Whistleblower Regime

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    In the past few months, the U.S. Department of Justice and several individual U.S. attorney’s offices have issued different pilot programs aimed at incentivizing individuals to blow the whistle on misconduct, but this piecemeal approach may create confusion and suboptimal outcomes, say attorneys at BakerHostetler.

  • So You Want To Move Your Law Practice To Canada, Eh?

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    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.

  • A Look At Similarities Between SOX And SEC's Cyber Rule

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    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.

  • Trump Rollback Of Biden Enviro Policies: What To Expect

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    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.

  • Class Actions At The Circuit Courts: November Lessons

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    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.

  • 5 Areas Congress May Investigate After GOP Election Wins

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    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.

  • Trump's 2nd Term May Be A Boost To Banking Industry

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    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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