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Asset Management
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January 15, 2025
GE Investors' $362.5M Settlement Gets Initial Greenlight
Investors in manufacturing giant General Electric Co. have gotten an initial nod for their proposed $362.5 million eve-of-trial deal to end long-running claims that the company fraudulently concealed cash flow problems, allegedly resulting in plummeting shares after its fiscal woes were disclosed.
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January 15, 2025
SEC Fines Advisers For Link To Alleged $410M IPO Fraud
Three investment adviser representatives have agreed to pay the U.S. Securities and Exchange Commission nearly $540,000 to end the regulator's claims that they acted as unregistered brokers while soliciting investors for a private equity firm accused of defrauding investors in a $410 million pre-IPO share scheme.
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January 15, 2025
Tenn. Judge Says PCAOB Authority Challenge Belongs In DC
A Tennessee federal judge on Wednesday transferred a certified public accountant's constitutional challenge against the Public Company Accounting Oversight Board to Washington, D.C., finding the board's headquarters, regulatory actions and related cases in that district made it the more appropriate venue.
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January 15, 2025
Sidley-Led Flowco Raises $427M In Year's First Major IPO
Oilfield equipment and services provider Flowco Holdings Inc. on Wednesday priced a $427 million initial public offering above its range, represented by Sidley Austin LLP and underwriters' counsel Latham & Watkins LLP, marking the year's first sizable IPO.
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January 15, 2025
9th Circ. Eyes Undoing Trans Patients' Win In ACA Bias Suit
The Ninth Circuit seemed inclined Wednesday to strike down a trial court win for patients who challenged Blue Cross Blue Shield of Illinois' administration of their employer-provided health plans containing gender-affirming care exclusions, with two judges questioning why those employers weren't part of the case.
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January 15, 2025
Plum Acquisition's Latest SPAC Leads 2 IPOs Raising $200M
Plum Acquisition IV Corp., the latest special-purpose acquisition company backed by investment firm Plum Partners, and Tokyo-based SPAC Ribbon Acquisition Corp. began trading today after the vehicles raised $200 million combined, guided by four law firms.
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January 15, 2025
Fla. Credit Union Sued Over DACA Loan Denial
A Deferred Action for Childhood Arrivals recipient living in Florida has filed a proposed class action against Florida Credit Union, alleging he was denied membership to the union and an auto loan because of his immigration status.
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January 15, 2025
9th Circ. Open To Reviving Robinhood Suit Over $2.1B IPO
Judges on a Ninth Circuit panel appeared open Wednesday to reviving a proposed securities class action alleging Robinhood hid how a "meme stock" and cryptocurrency trading frenzy had impacted its outlook ahead of its $2.1 billion initial public offering, saying the lower court may have applied the wrong standard in tossing the case.
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January 15, 2025
Booz Allen Must Pay For Harm Of Tax Info Leaks, Court Told
A proposed class action in Maryland federal court blames IRS contractor Booz Allen Hamilton over the thousands of tax returns that were stolen by an employee who took financial information about President-elect Donald Trump and others while on the job and leaked it to the media.
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January 15, 2025
SEC Announces Departure Of Top Economist And Accountant
The U.S. Securities and Exchange Commission's chief economist and chief accountant are stepping down, the agency has announced, marking the latest departures given the pending inauguration of President-elect Donald Trump.
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January 15, 2025
Judge Warns DOJ: Settle Burger Forfeiture Suit Or Pay Up
A Michigan federal judge on Tuesday expressed frustration with Justice Department officials' delays in resolving a civil forfeiture action over an alleged $11 million healthcare fraud scheme involving money laundered through Big Boy Restaurant, telling federal prosecutors they have until next week to settle the case or pay the chain's recent legal bills.
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January 15, 2025
Origis Energy Lands $1B-Plus Infusion From Brookfield, Antin
Renewable energy platform Origis Energy, led by Latham & Watkins LLP, on Wednesday announced that it has received new investments from private equity shops Brookfield Asset Management, advised by Vinson & Elkins LLP, and Antin Infrastructure Partners that combined could exceed $1 billion.
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January 15, 2025
Canada Greenlights $18B Viterra-Bunge Grain Deal
The Canadian government has approved grain and seed supplier Bunge Ltd.'s plan to buy global grain trader Viterra Ltd. for $18 billion, but with "extensive" conditions, including Bunge having to invest at least $520 million in Canada over the next five years.
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January 14, 2025
Wells Fargo Fights To Drop Officers From Investors' Bias Suit
Wells Fargo & Co. urged a California federal judge Tuesday to free three executives from a derivative lawsuit filed by shareholders claiming the bank's leadership failed to address the company's discriminatory lending and hiring practices, saying there are no allegations that explain why a presuit demand to the board would have been futile.
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January 14, 2025
Navy Capital Fund Firm Settles SEC's AML Allegations
Navy Capital Green Management LLC on Tuesday agreed to pay $150,000 to settle allegations from the U.S. Securities and Exchange Commission that the investment adviser made misrepresentations to investors about its anti-money laundering due diligence practices.
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January 14, 2025
Latham Grabs Top Spot For 2024 IPOs By Large Margin
Latham & Watkins LLP guided more initial public offerings than any law firm in 2024, capturing a diverse mix of large listings for companies that seized opportunities to go public as the broader IPO market inched toward recovery, new data shows.
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January 14, 2025
Mastercard Agrees To $26M Deal In Hiring Bias Suit
Mastercard Inc. has agreed to shell out $26 million and change its hiring practices to put to rest a proposed class and collective action alleging sex, gender, race and ethnicity-based employment discrimination, according to a motion filed Tuesday, the same day the workers sued in New York federal court.
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January 14, 2025
Crypto Co.'s Lax Compliance Enabled Hackers, Suit Says
A proposed class action in California federal court accused digital asset exchange OKX of flouting U.S. laws and allowing criminals to launder stolen funds through its platform, including $725,000 worth of crypto looted from the crypto investor leading the suit.
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January 14, 2025
4th Circ. Tosses Constitutional Case Against FINRA
The Fourth Circuit on Tuesday threw out a lawsuit claiming that the Financial Industry Regulatory Authority's in-house disciplinary process is unconstitutional, ruling that it couldn't hear the case until the regulator had finalized its own ruling against the suing broker.
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January 14, 2025
Retroactive Foreclosure Rule Bars Suit, Mich. County Says
A Michigan county has urged a federal judge to toss a proposed class action alleging that it kept surplus proceeds from tax-foreclosed home sales, saying the homeowner bringing the claims hasn't yet used the state's process for securing the proceeds.
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January 14, 2025
DOL Finalizes ERISA Voluntary Correction Program Changes
The U.S. Department of Labor's employee benefits arm has finalized changes to a program allowing retirement plan managers to voluntarily self-correct when they fail to forward employee contributions on time or make other transaction errors, according to a notice the agency posted online Tuesday.
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January 13, 2025
NYDFS Launches Staff Exchange With Bank Of England
The New York Department of Financial Services on Monday launched an international secondment program to allow the department to exchange staff with other regulators, starting with a digital assets-focused exchange with the Bank of England next month.
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January 13, 2025
Texas Judge Urged To Halt CFPB Medical Debt Reporting Rule
Trade groups suing the Consumer Financial Protection Bureau over its new rule banning medical debt from credit reports have asked a Texas federal judge to put a court-ordered hold on the measure while they proceed with their challenge to its legality.
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January 13, 2025
Fund Managers To Pay SEC $2M For Overcharging Expenses
The U.S. Securities and Exchange Commission announced two Colorado-based fund managers and their sole owner will pay over $2 million to settle allegations they breached their fiduciary duties by failing to disclose conflicts of interest regarding certain expenses charged to two private funds.
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January 13, 2025
Investment Firm Seeks Coverage For Hertz Buyback Suits
An investment adviser said its insurers must provide coverage for underlying actions related to the adviser's involvement in car rental company Hertz Global Holdings Inc.'s stock buybacks, telling a Delaware state court that its primary carrier improperly denied coverage.
Expert Analysis
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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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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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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.
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Best Practices To Find Del. Earnout Provisions That Hold Up
Recent Delaware earnout litigation illustrates the need for careful drafting and proactive planning to avoid later divergent interpretations of the signed contract, and a series of drafting tips can help, say attorneys at Cozen O'Connor.
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5 Evolving Concerns For Family Offices In 2025
Complex regulatory changes and emerging operational risks will force family offices to stay on their toes in 2025, with timely action particularly necessary to address several tax and reporting developments that may affect their investments and business operations, say attorneys at Morgan Lewis.
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2024 Was A Banner Year For Shareholder Activism
Shareholder activism campaigns in 2024 continued at an elevated pace globally, with activist investors exploiting valuation gaps and pushing aggressively for corporate governance reforms, including the ouster of many companies' chief executives, a trend that could continue once President-elect Donald Trump takes office, say attorneys at Sidley.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Impact Of Successful Challenges To SEC's Rulemaking Ability
In 2024, the U.S. Securities and Exchange Commission faced significant legal challenges to its aggressive rulemaking agenda as several of its rules were vacated by the Fifth Circuit, which could hinder the SEC's ability to enact rules extending beyond express statutory authority in the future, say attorneys at Debevoise.
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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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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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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.