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Asset Management
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November 26, 2024
9th Circ. Reopens Teachers' Retirement Savings Interest Suit
The Ninth Circuit on Tuesday revived a class action accusing the Washington state pension agency of unlawfully skimming interest earned by thousands of teachers on their retirement accounts, ruling the trial court went too far when it ruled the educators' suit was untimely.
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November 26, 2024
California's Top Bank, Fintech Regulator To Exit At Year's End
The top banking and fintech regulator for California is departing from the state's Department of Financial Protection and Innovation in a little more than a month, an agency spokesperson told Law360 on Tuesday.
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November 26, 2024
Ropes & Gray Atty Is Kirkland's Latest Debt Finance Hire
Kirkland & Ellis LLP announced the latest of several recent additions to its debt finance group on Monday, a Ropes & Gray LLP partner with a host of multibillion-dollar deals under his belt.
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November 25, 2024
Ex-Wamco Exec Charged In 'Criminal Cherry-Picking Scheme'
Federal prosecutors have accused Ken Leech, the former chief investment officer of Western Asset Management Co., of participating in a $600 million "criminal cherry-picking scheme" in which he favored certain clients at the expense of others, according to an indictment unsealed Monday in New York federal court.
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November 25, 2024
SEC Secured Historic $8.2B Enforcement Haul In 2024
The U.S. Securities and Exchange Commission obtained $8.2 billion in civil penalties and disgorgement via successful enforcement actions in 2024, the highest amount in the history of the agency despite a significant decline in total enforcement actions, the SEC has announced.
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November 25, 2024
Gov't Defends EB-5 Rule That Hikes Up Petition Fees
The U.S. Department of Homeland Security and its U.S. Citizenship and Immigration Services agency pushed for an early win in Texas federal court against a suit challenging increases for filing fees for petitions related to USCIS' EB-5 immigrant investor program.
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November 25, 2024
Grayscale Seeks Win In Rival's $2M Unfair Practices Suit
Digital asset management firm Grayscale Investments LLC seeks a quick finding in its favor that certain securities-related conduct it is being sued over did not violate Connecticut's unfair trade practices law because the law has a securities matters carveout.
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November 25, 2024
7th Circ. Says Schwab Race Bias Suit Filed Too Late
The Seventh Circuit said a Black call center worker can't revive her suit claiming Charles Schwab blocked her from career advancements because of her race, ruling that an attorney's error led her to file the case too late, preventing the court from granting her any leeway.
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November 25, 2024
Hedge Fund-Backed SPAC Returns To Market With 3rd IPO
Inflection Point Acquisition Corp. III, the third special purpose acquisition company affiliated with executives of hedge fund Kingwood Capital Management, filed plans on Monday for a $220 million initial public offering, guided by three law firms.
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November 25, 2024
J.S. Held Acquires Forensic Accounting Firm Luttrell Wegis
J.S. Held, a global consulting firm, has acquired Lutrell Wegis LLP, a California-based forensic accounting and business valuation firm, in a move one of the new company's co-founders said will strengthen their companies' capabilities.
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November 25, 2024
Vanguard, Investors Get Initial OK On $40M Deal In Tax Suit
A Pennsylvania federal judge gave initial approval Monday to a $40 million settlement between Vanguard and investors who claimed the firm breached its fiduciary duty when it triggered a sell-off of assets that left investors with hefty tax bills.
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November 25, 2024
NC Biz Owner Settles SEC's $28M Fraud Claims
An investment firm owner has agreed to return the proceeds of an alleged $28 million Ponzi-like manufacturing debt investment scheme and pay a civil penalty to the U.S. Securities and Exchange Commission, according to an order signed by a North Carolina federal judge.
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November 25, 2024
Kirkland, Milbank Shape $3.5B Blackstone-EQT Corp. JV
EQT Corp., led by Kirkland & Ellis, will form a $3.5 billion joint venture with Blackstone Credit & Insurance to take over ownership of the Mountain Valley Pipeline and other midstream assets that EQT got in its re-acquisition of Equitrans Midstream, the partners announced Monday.
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November 25, 2024
Macy's Delays Earnings Report After $154M Employee Error
Macy's said Monday that an employee had misstated up to $154 million in delivery expenses since 2021, forcing the retailer to delay releasing its third-quarter results for the year, just ahead of the holiday shopping season.
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November 25, 2024
SDNY's Williams To Resign Before Trump Takes Office
Manhattan U.S. Attorney Damian Williams said Monday he will resign Dec. 13, clearing the way for President-elect Donald Trump's nominee, former U.S. Securities and Exchange Commission chair Jay Clayton, to run the office next year.
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November 25, 2024
5 Firms Build CA$12.1B Take-Private Of CI Financial
Canada-based asset and wealth management company CI Financial Corp. on Monday announced that it has agreed to go private through an acquisition by Mubadala Capital that boasts an enterprise value of roughly CA$12.1 billion ($8.7 billion) and was built by five law firms.
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November 22, 2024
Private Cos. Seek Pre-IPO Share Sales Amid Liquidity Crunch
Following a dearth of initial public offerings in recent years, more private companies are arranging secondary-share sales to help employees and early investors pare down equity stakes without waiting for a public listing, a trend capital markets attorneys expect will continue for the foreseeable future, even if IPOs rebound.
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November 22, 2024
Democratic SEC Member To Step Down Amid GOP Takeover
U.S. Securities and Exchange Commission member Jaime Lizárraga said Friday that he plans to step down before President-elect Donald Trump takes office, a day after SEC Chair Gary Gensler announced his plans to leave, further clearing the way for new Republican Party leadership.
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November 22, 2024
Chinese EV Maker's European Unit Eyes $410M SPAC Merger
Hudson Acquisition I Corp. and Aiways Automobile Europe GmbH said Friday they have inked an agreement to go public through a SPAC merger, with the electric vehicle maker achieving a $410 million pre-merger equity valuation.
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November 22, 2024
Software-Focused VC Firm Closes 2nd Fund At $450M
Software-focused venture capital firm Theory Ventures on Friday announced that it closed its second fund with $450 million in tow.
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November 22, 2024
Taxation With Representation: Stradley Ronon, Davis Polk
In this week's Taxation With Representation, Amcor PLC buys Berry Global Group Inc., AeroVironment buys BlueHalo, Robinhood Markets Inc. acquires TradePMR, and Comcast Corp. spins off a suite of NBCUniversal cable television networks.
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November 21, 2024
FDIC's 'Hot Money' Revamp Gets Bank, Fintech Cold Shoulder
Banking and fintech lobbyists are calling on the Federal Deposit Insurance Corp. to scrap its proposal to overhaul rules on brokered deposits, also known as "hot money," arguing the effort represents a step backward for the industry that would raise costs for everyone.
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November 21, 2024
FirstEnergy Investors Slam Ex-Execs' Info 'Bogeyman' Story
FirstEnergy shareholders have accused two former executives of the energy company of exploiting confidentiality rules by seeking to shield documents relevant to their suit over a stock plummet that followed a massive bribery scheme, telling an Ohio federal judge he should reject the executives' "informational bogeyman" story.
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November 21, 2024
Forex Trader Gets 23 Years For $93M Investor Fraud
A Colorado federal judge on Thursday sentenced a retired Marine convicted of wire fraud and conspiracy to 23 years in prison for his role in a scheme that swindled investors out of $93 million.
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November 21, 2024
SEC Seeks More Data On Nasdaq Plan To Speed Up Delistings
The U.S. Securities and Exchange Commission has postponed deciding on a Nasdaq proposal that would accelerate delistings of companies with low-priced stocks that take extended time to regain compliance or rely on reverse-stock splits to elevate their share prices, saying more data is needed before it takes action.
Expert Analysis
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.
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With Precautions, AI Can Help With Suspicious Activity Filings
While artificial intelligence can enhance suspicious activity report processes, financial services firms should review applicable expectations and areas of deficiencies that can lead to enforcement actions before using AI to help write SARs, say attorneys at Jenner.
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How Crypto Cos. Can Take Advantage Of 'Mini-IPOs'
Against the backdrop of U.S. Securities and Exchange Commission enforcement in the crypto space, mini-initial public offerings, with less burdensome requirements than full registration, can serve as an alternative way for token issuers to raise funds, say attorneys at O'Melveny.
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Nvidia Supreme Court Case May Not Make Big Splash
The skeptical tenor of the justices' questioning at oral argument in Nvidia v. Ohman Fonder suggests that the case is unlikely to alter the motion to dismiss pleading standard in securities class actions, as some had feared, say attorneys at WilmerHale.
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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How To Safely Leverage AI In The Digital Assets Industry
Digital asset businesses that use or plan to implement artificial intelligence should assess their risk management frameworks to ensure that AI-related business areas, including customer support and fraud detection, are in compliance with applicable laws and regulatory guidance from the last year, say attorneys at Winston & Strawn.
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What Trump Presidency May Mean For Climate Reporting
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.
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SEC Action Indicates Continued Focus On ESG Disclosures
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.
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The Bar Needs More Clarity On The Discovery Objection Rule
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.
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What's Next For The CFTC After The Election
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.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
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.
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Cos. Should Inventory Issues To Prep For New Congress
As the legislative and oversight agendas of the 119th Congress come into sharper focus, corporate counsel should assess and plan for areas of potential oversight risk — from tax policy changes to supply chain integrity — even as much uncertainty remains, say attorneys at WilmerHale.
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OCC Recovery Guidance Can Help Banks Bounce Back Better
The Office of the Comptroller of the Currency's recently finalized recovery guidelines add to the constellation of exercises that larger banks must undertake, while also aiding information-gathering and preparedness efforts that can help prevent — or better manage — bank failures, say attorneys at Davis Wright.
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Navigating DOJ's Patchwork Whistleblower Regime
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.