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Securities
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January 13, 2025
Madoff Trustee Blasts Katten's 2nd Bid To Drop Client
The trustee overseeing the long-running liquidation of Bernie Madoff's bankruptcy estate is fighting a renewed attempt by Katten Muchin Rosenman LLP to drop its client, French investment fund Access International Advisors, telling the court that the firm's motion to withdraw as counsel lacks novel arguments differentiating it from an earlier bid that had already been denied.
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January 13, 2025
Hotel Asset Manager Ashford Settles SEC Cyber Report Suit
Ashford Inc. has agreed to pay more than $115,000 to settle the U.S. Securities and Exchange Commission's charges that the asset manager failed to properly disclose a cyberattack that led to the leak of hotel customers' personal information.
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January 13, 2025
Sen. Warren To Grill Treasury Pick On Trump's Tax Agenda
Sen. Elizabeth Warren, D-Mass., plans to ask Treasury secretary nominee Scott Bessent at his confirmation hearing in front of the Senate Finance Committee on Thursday about President-elect Donald Trump's tax agenda and plans for the Internal Revenue Service, according to a letter she sent the nominee.
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January 13, 2025
Truth Social SPAC Ex-CEO Seeks Del. Suit Toss Or Freeze
The former manager of the blank check company that sponsored a deal to take now President-elect Donald Trump's social media platform public heads into a pivotal Delaware Court of Chancery hearing Wednesday, seeking to freeze or scuttle a suit claiming that he and others secretly diverted millions of shares from co-investors.
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January 13, 2025
SEC To Collect $63M In Latest Recordkeeping Sweep
The U.S. Securities and Exchange Commission announced Monday that subsidiaries of Blackstone Inc. and Charles Schwab Corp. were among those swept up in the latest round of recordkeeping fines, promising to collect over $63 million from 12 firms whose employees are accused of discussing business through their personal devices.
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January 13, 2025
SEC Must Explain Coinbase Crypto Rule Denial, 3rd Circ. Says
A Third Circuit panel delivered a partial win to Coinbase on Monday when it ordered the U.S. Securities and Exchange Commission to provide "a more complete explanation" of why it denied the crypto exchange's request for rulemaking on how securities laws apply to digital assets.
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January 13, 2025
BMO Unit To Pay SEC $40M Over Bond Desk Supervision
BMO Capital Markets has agreed to pay $40 million to end a U.S. Securities and Exchange Commission investigation into the broker-dealer's supervision of its mortgage-back bonds salespeople, with the SEC saying Monday that the brokerage firm failed to stop employees from providing inaccurate information about the bonds.
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January 10, 2025
FDIC's Hill Calls For 'New Direction' In Preview Of Agenda
Federal Deposit Insurance Corp. Vice Chairman Travis Hill signaled Friday that he intends to steer the agency in a "new direction" when he takes over as its acting chief later this month, mapping out plans for a more tech-friendly, lighter-touch approach.
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January 10, 2025
New Pirate Loot Claims Lodged In Chancery
A Flying Dutchman of a legal wrangle over a treasure-laden, sunken pirate ship off Cape Cod, Massachusetts, surfaced again Friday in Delaware's Court of Chancery in an investor suit demanding books and records on a decades-long salvage operation and alleging possible fraudulent conveyances by "rogue fiduciaries."
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January 10, 2025
4 Trends That Will Shape Venture Capital Funding In 2025
Venture capital funding appears primed to improve in 2025 as market participants shake off the effects of a post-pandemic crash, with surging demand for artificial intelligence, expectations of friendlier government policies, and more exits through public listings and acquisitions.
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January 10, 2025
9th Circ. Affirms Hearing Aid Co.'s Win Over Investor Suit
The Ninth Circuit on Friday handed a win to Eargo Inc. and affirmed the dismissal of a securities class action against the hearing aid company, which alleged that the company and its top brass acted with intent to commit insurance billing fraud.
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January 10, 2025
SEC's $93M Win Not Backed By Proof, Adviser Tells 1st Circ.
Commonwealth Financial asked a First Circuit panel Friday to undo a $93 million award the U.S. Securities and Exchange Commission won last year, saying the lower court was too quick to find that the firm's disclosure practices harmed investors.
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January 10, 2025
SEC Fines Cannabis Co. Acreage Over Accounting Violations
A multi-state cannabis industry operator recently acquired by Canadian cannabis industry giant Canopy will pay $225,000 to resolve administrative U.S. Securities and Exchange Commission claims that it orchestrated a $4.2 million round-trip transaction with an affiliate to inflate its reported cash balance.
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January 10, 2025
American Airlines Faulted For ESG Focus In 401(k) Plan
A Texas federal judge ruled Friday that American Airlines violated federal benefits law by emphasizing environmental, social and governance factors in its 401(k) plan decisions, but he put off deciding whether the retirees suffered losses and what remedy they should receive.
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January 10, 2025
SafeMoon CEO Wants 'Misleading' Reddit Post Explained
The CEO of bankrupt cryptocurrency asset company SafeMoon LLC asked a Brooklyn federal judge Friday to order the government to explain whether it had a role in a social media user's "misleading" post that promised to connect SafeMoon investors with the U.S. government.
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January 10, 2025
Liquidnet To Pay SEC $5M Over Market Access Rule Issues
Liquidnet Inc. agreed Friday to pay $5 million to resolve claims from the U.S. Securities Exchange Commission that the broker-dealer failed to have the proper controls and procedures related to market access in place and failed to protect confidential subscriber trading information, among other things.
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January 10, 2025
Ex-CEO's Sentencing In COVID Test Securities Fraud Delayed
A New Jersey federal judge delayed a former healthcare CEO's sentencing for securities fraud arising from his touting a $670 million COVID-19 test kit contract that later fell through, granting the ex-executive's request Friday for a one-month delay while he helps care for ailing family members.
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January 10, 2025
Semiconductor Co. Hit With Investor Suit Over Demand Slump
Semiconductor manufacturing company Micron Technology Inc. has been hit with a proposed shareholder class action alleging Micron began overstating demand for its products after two years of disappointing sales in order to keep share prices artificially inflated.
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January 10, 2025
Crypto Buyers Say They Were Duped Out Of Millions
Investors in two crypto projects — Phoenix Community Capital and its offshoot, Xeta Capital — alleged in Tennessee federal court that the projects' leaders duped them out of tens of millions of dollars with false promises of "returns, transparency, and the legitimacy of the enterprises."
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January 10, 2025
BCLP's Global Healthcare Chair Jumps To Dechert
Dechert LLP has brought on the former global chair of healthcare and life sciences at Bryan Cave Leighton Paisner LLP as a corporate and securities partner and leader of its healthcare regulatory practice.
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January 10, 2025
Vince McMahon Resolves SEC Probe Over Secret Settlements
Embattled World Wrestling Entertainment co-founder Vince McMahon signed two multimillion-dollar deals to buy silence from a former employee and a contractor without making the required disclosures to organization officials and staffers, according to a settlement announced Friday by the U.S. Securities and Exchange Commission.
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January 09, 2025
CFPB Bars Ex-Agency Attys From Revived Innovation Policies
The Consumer Financial Protection Bureau has said it will not consider applications for its rebooted no-action letter and compliance sandbox policies when those applications are submitted by financial service companies represented by former bureau attorneys as outside counsel.
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January 09, 2025
SEC Sues To Enforce $3M Cannabis Investment Fraud Deal
The U.S. Securities and Exchange Commission has asked a Utah federal court to enforce an administrative cease-and-desist order requiring a wealth management company and its owner to give the regulator over $3 million they previously agreed to pay to end claims they defrauded investors in a $19.5 million cannabis-linked fund raise.
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January 09, 2025
Target Brass Face Derivative Suit Over DEI Fallout
Target Corp.'s executives and directors have been hit with a shareholder derivative suit in Florida federal court alleging that the company's diversity, equity and inclusion initiatives and its offerings of LGBTQ+ merchandise harmed investors.
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January 09, 2025
Activision Brands $75B Del. Merger Suit 'Scattershot'
An attorney for former Activision-Blizzard directors and top officers told Delaware's chancellor on Thursday that stockholder attorneys are pursuing a massive but "scattershot" suit challenging the company's $75.4 billion merger with Microsoft Corp., a deal that produced both a disputed $31 billion premium and a 329-page third amended lawsuit.
Expert Analysis
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A Look At PCAOB's Record-Breaking Enforcement In 2024
The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
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2 Cases May Enlighten UK Funds' Securities Litigation Path
Following recent nine-figure settlements in securities class actions against Apple and Under Armour, U.K. pension funds may increasingly lead U.S. shareholder derivative suits, advocating for transparency, better risk management and stronger governance practices, say lawyers at Labaton Keller.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Takeaways From SEC's Mixed Results In '24 Crypto Litigation
Though the U.S. Securities and Exchange Commission's new leadership seems likely to create a more favorable cryptocurrency regulatory environment, it must also confront the consequences of, and lingering questions raised by, the SEC's 2024 policy of investigating and charging cryptocurrency trading platforms for operating unregistered exchanges, say attorneys at Dechert.
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Predicting What's Next For SEC By Looking At Past Dissents
While Paul Atkins' nomination to be the next chair of the U.S. Securities and Exchange Commission has taken center stage, an analysis of Republican Commissioners Hester Peirce and Mark Uyeda's past votes and dissents provides a preview of where enforcement may shift in the new administration, say attorneys at Gibson Dunn.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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What 2024's Noncompete Turmoil Means For Banks In 2025
A look back at the most significant legal challenges to the enforceability of various restrictive covenants like noncompete and nonsolicitation agreements in 2024 can help financial institutions address the use of these critical tools this year, say attorneys at Maynard Nexsen.
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Opinion
3 New Year's Resolutions For Antitrust Agencies To Consider
James Fredricks at Skadden rings in 2025 with his wish list for the federal antitrust agencies, starting with a provision for a presumptive safe harbor for information sharing.
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New Year, New Risks: 8 Top Cyber Issues For Finance In 2025
As financial institutions forge ahead in 2025, they must strike a delicate balance between embracing technological innovation and guarding against its darker threats, which this year could include everything from supply chain vulnerabilities to deepfakes, say attorneys at Baker Donelson.
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FTC Focus: A Changing Of The Guard
While rigorous antitrust enforcement is unlikely to slow down at the Federal Trade Commission, the focus will undoubtedly change, including when it comes to Big Tech, as Andrew Ferguson prepares to take the reins from Chair Lina Khan, say attorneys at Proskauer.
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5th Circ.'s Nasdaq Ruling Another Piece In DEI Policy Puzzle
The Fifth Circuit's recent en banc opinion vacating Nasdaq's board diversity listing rule wades into the hotly debated topic of diversity, equity and inclusion initiatives at a time when many public companies are navigating the attention that DEI commitments are drawing from activists and shareholders, say attorneys at Debevoise.
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8 Trends And Predictions Following PE's Late 2024 Surge
Private equity will remain at the forefront of value creation in 2025, and anticipated market trends include sponsors' desire to return capital to investors and a more business-friendly tack by the Antitrust Division of the U.S. Department of Justice, say attorneys at Weil.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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Lessons From The SEC's 2024 Crackdown On AI Washing
AI washing was the subject of increased scrutiny from the U.S. Securities and Exchange Commission in 2024 following a surge in the commercial adoption of generative artificial intelligence technologies in 2023, highlighting the importance of transparency, accuracy and accountability when communicating about AI, say attorneys at Perkins Coie.
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The 6 Most Significant FCRA Litigation Developments Of 2024
From a key sovereign immunity decision at the U.S. Supreme Court to a ruling on creditworthiness out of the Seventh Circuit, several important Fair Credit Reporting Act cases wound their way through the courts in 2024, each offering takeaways for both plaintiffs and defendants, say attorneys at Shipkevich.