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Securities
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March 14, 2025
Off The Bench: Ex-Jet Sues Over Favre Clip, New Soccer Build
In this week's Off The Bench, a retired football superstar claims an argument with icon Brett Favre should have never been aired on television, one trading card company gets the upper hand on another in dueling antitrust suits, and an English soccer club opts for a new stadium over a rebuild of the old one.
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March 14, 2025
Brooklyn Man Gets 45 Months For 'Seinfeld'-Themed Fraud
A Brooklyn federal judge sentenced a podcaster and purported cryptocurrency guru to 45 months in prison after he pled guilty to scamming investors out of more than $2 million using fictitious businesses, including one apparently named after "Seinfeld" character George Costanza's fake prospective employer Vandelay Industries.
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March 13, 2025
Jessica Alba's Honest Co. Inks $28M Deal In IPO Class Action
Jessica Alba's The Honest Co., its executives and others involved in the baby and beauty product company's initial public offering have agreed to pay nearly $28 million to resolve a class action in California federal court alleging they failed to disclose negative trends ahead of the IPO.
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March 13, 2025
Chinese Fund Opposes Businessman's Bid To Pause Award
A Chinese investment fund has objected in California federal court to a businessman's bid to pause recognition of a $4.8 million foreign arbitral award against him, arguing that he lost his dispute in two venues and can't prevent execution of the judgment.
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March 13, 2025
SEC's Expansion Of Confidential Filings Likely To Spur Deals
The U.S. Securities and Exchange Commission's latest effort to expand companies' ability to confidentially file for more securities offerings during initial stages should accelerate the pace of public issuances, according to capital markets lawyers.
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March 13, 2025
Federal Judge Still Skeptical Of Amazon Securities Fraud Suit
A Washington federal judge said he was "struggling" with a group of Amazon shareholders' stance in a securities fraud suit on Thursday, doubtful that stock sales numbers were enough to back claims that Jeff Bezos had a motive to dupe investors about the company's fulfillment capacity and third-party seller practices.
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March 13, 2025
Bike Parts Maker Fox Factory Beats Post-COVID Investor Suit
Georgia bicycle parts maker Fox Factory Holding Corp. no longer faces a proposed investor class action accusing the company of hurting investors by hiding slumping demand, although a federal judge offered the investor who brought the suit a chance to revise his claims.
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March 13, 2025
Judge Won't Toss $35M Ch. 11 Bank Fee Clawback Lawsuit
A Delaware bankruptcy judge has denied a summary judgment bid to dismiss a lawsuit alleging that an $1.8 billion loan set medical testing company Millennium Laboratories on course for its 2015 Chapter 11.
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March 13, 2025
Texas Court Rules Against Unresponsive Crypto DAO
A Texas federal judge on Thursday entered a default judgment against a decentralized crypto exchange that failed to respond to an online summons posted by individuals who say they lost money on the exchange, but questions remain as to who will pay any penalties that may be handed down against the platform.
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March 13, 2025
Stifel Owes $132.5M Over Structured Notes, FINRA Panel Says
Broker-dealer Stifel Nicolaus & Co. Inc. owes a family more than $132.5 million in a Financial Industry Regulatory Authority arbitration stemming from allegations their accounts were overinvested in structured notes.
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March 13, 2025
Host Co. Can't Force Bitcoin Miner From Pa. Property, For Now
A western Pennsylvania bitcoin mining venture won a temporary restraining order in Delaware's Court of Chancery Thursday in a ruling that barred a hosting company from continuing to use or block access to more than 20,000 mining systems that had been installed for the tenant operation.
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March 13, 2025
Cemetery Arborist Cuts Deal To Resolve SEC Fraud Claims
The former arborist for a Boston-area cemetery has agreed to pay nearly $400,000 to resolve claims by the U.S. Securities and Exchange Commission that he convinced co-workers, friends and his church community to invest in the foreign currency exchange market while falsely promising extravagant returns, according to federal court filings Thursday.
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March 13, 2025
Energy Co. Faces Investor Suit Alleging AES, Siemens Rifts
Energy storage company Fluence Energy Inc. faces a proposed investor class action alleging it concealed the impact to its revenues of growing rifts and falling business with its founders, German conglomerate Siemens AG and U.S. utility company AES Corp.
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March 13, 2025
Founder Wants $14.7M In Logistics Developer SPAC Dispute
The founder of a Latin America-based logistics property developer told a Florida federal court that he is owed at least $14.7 million as part of a 2024 special purpose acquisition company merger.
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March 13, 2025
ADM Can't Duck Suit Over Nutrition Biz Investigation
An Illinois federal judge has refused to dismiss an investor suit claiming that the purported growth of Archer Daniels Midland's nutrition segment was based on improper accounting practices, saying the shareholders have made "robust" allegations that company executives made knowingly false statements about its profitability.
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March 13, 2025
Amid Del. Corporate Law Overhaul Push, Texas Turns Up Heat
As Delaware lawmakers advance changes to the state's general corporation law — aimed in part at stopping companies from moving their corporate charters — they are facing increased pressure from their counterparts in Texas, where legislation appears to be on a fast dash in an attempt to convince more businesses to make it their legal home.
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March 13, 2025
Del.'s Divisive Corporate Law Rework Passes In State Senate
Divisive amendments to Delaware's general corporation law cleared the state Senate Thursday with multiple questions but little debate and without dissenting votes, and will now be sent to the House amid warnings that failure to approve could weaken the state's standing as a top corporate charter hub.
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March 13, 2025
Senate Stablecoin Bill Advances With Democrats Divided
The Republican-led U.S. Senate Banking Committee advanced its stablecoin framework Thursday with the help of Democrats who broke from ranking member Sen. Elizabeth Warren's opposition, while a separate bill on what is being called debanking passed along party lines.
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March 13, 2025
Vanguard's $40M Deal In Tax Suit Gets Delay In Final Approval
A Pennsylvania federal judge delayed a proposed $40 million settlement between Vanguard and investors who claimed the firm unfairly stuck them with big tax bills, saying both sides must respond to objections about the effects of a recent SEC settlement on the deal.
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March 13, 2025
SEC Drops Dealer-Registration Case Criticized By Hedge Fund
The U.S. Securities and Exchange Commission is dropping its claim that a Boston hedge fund should have registered as a broker-dealer, abandoning a case that the defense had argued overstepped the law and would subject more firms to federal oversight.
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March 13, 2025
NY Taps Ex-CFPB Official For Top Financial Enforcement Role
New York's financial services regulator said Thursday that it has hired a new top consumer protection cop, bringing aboard a veteran enforcement official recently departed from the Consumer Financial Protection Bureau.
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March 13, 2025
Judge Orders Reinstatement Of Many Fired Federal Workers
A California federal judge on Thursday ordered the immediate reinstatement of certain probationary employees fired from six federal agencies, saying the Office of Personnel Management did not have the authority to direct those terminations, making the firings "unlawful."
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March 13, 2025
Willkie Farr Hires Kirkland Private Funds Partner In NY
Willkie Farr & Gallagher LLP has hired a private funds attorney in New York who spent the past four years at Kirkland & Ellis LLP advising fund sponsors on operational and other matters, the firm announced Wednesday.
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March 13, 2025
Paul Hastings Adds Ex-DLA Piper Structured Credit Pro In NY
Paul Hastings LLP has added a structured credit attorney previously with DLA Piper as a partner in New York, the firm announced Thursday.
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March 12, 2025
Capital One Nearly Bought Frank For $125M, Javice Jury Told
A Capital One investment banker told a New York federal jury on Wednesday that the lender was eyeing student financial aid startup Frank for a potential $125 million acquisition before backing out, $50 million less than what JPMorgan Chase & Co. ultimately paid for the company, the result of what prosecutors say was a scheme to fraudulently induce JPMorgan to make the purchase.
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.