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Asset Management
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November 20, 2024
SEC Cooperators More Likely To See Pay Reprieve In 2024
The U.S. Securities and Exchange Commission's recent emphasis on cooperation seems to have paid off for both the agency and some of the entities it regulates, according to a report released Thursday, which found that more public companies entered into nonmonetary settlements with the SEC in fiscal year 2024 than in any year over the previous decade.
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November 20, 2024
US Called Upon To Lead Cross-Border Payment Overhaul
A senior official with the U.S. Department of the Treasury has warned that wide adoption of a poorly designed, cross-border payment system could threaten international financial stability and economic security, advising the U.S. to take the lead in developing and governing such systems.
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November 20, 2024
Ex-Wells Fargo Adviser Admits To Stealing $3M From Clients
A former Wells Fargo broker and investment adviser admitted on Wednesday to stealing more than $3 million from his clients and customers and using the money for, among other things, buying gold coins, New Jersey federal prosecutors said.
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November 20, 2024
Fla. Couple Ask To Revive Suit Over Unclaimed Property
A Florida couple asked the Eleventh Circuit Wednesday to revive their proposed class suit against the state's chief financial officer over a law that allows officials to hold unclaimed money indefinitely, arguing that it is a taking without just compensation because the state never pays interest on the amount held.
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November 20, 2024
6th Circ. Revives 401(k) Fund Suit Against Parker-Hannifin
A split panel of the Sixth Circuit on Wednesday revived a proposed class action against Parker-Hannifin Corp. from workers who alleged mismanagement of their employee retirement plan, finding a lower court erred in dismissing claims that high-fee and poorly performing investment offerings in the plan violated federal benefits law.
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November 20, 2024
Archegos Founder Gets 18 Years For Massive Market Fraud
Bill Hwang, the founder of collapsed hedge fund Archegos, was sentenced Wednesday to 18 years in prison after he was convicted of lying to banks in order to secure billions of dollars in loans used to manipulate the market.
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November 19, 2024
Pfizer Unit Can't Get $75M Left In Insider Trading Deal Fund
A New York federal judge Tuesday agreed with the U.S. Securities and Exchange Commission that roughly $75.2 million leftover in settlement funds should be transferred to the U.S. Treasury — not a Pfizer subsidiary — now that distribution of the $602 million insider trading deal has concluded.
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November 19, 2024
Ex-OpenSea Staffer Says Insider Trading Verdict Must Fall
A former OpenSea manager accused of insider trading from digital tokens sold on his employer's platform urged the Second Circuit Tuesday to overturn his conviction, saying his ideas about what to feature on his company's website cannot be construed as property.
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November 19, 2024
10th Circ. Mulls Constitutional Challenge To Securities Orgs
A three-judge panel of the Tenth Circuit on Tuesday heard arguments in a case challenging the constitutionality of the nation's largest securities clearing organizations, with the judges weighing whether they should stop the organizations from acting against a broker-dealer while the case is ongoing.
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November 19, 2024
Finnish Sports Co. Fights NHL Agent's Bid To Ax $1.2M Suit
A Finnish sports talent corporation has slammed an NHL agent's bid in Massachusetts federal court to toss its lawsuit over $1.2 million in arbitration awards, saying he has systemically used shell companies to dodge collection of the judgments against him.
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November 19, 2024
CFPB's Medical Debt Guidance Faces Industry Injunction Bid
Debt collectors asked a D.C. federal court on Monday to put an immediate hold on recent Consumer Financial Protection Bureau guidance aimed at the medical debt collection market, escalating their challenge to the document ahead of its looming effective date.
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November 19, 2024
Dentons Atty Owed No Duty In $54M Currency Swap, Jury Told
A Hunton Andrews Kurth LLP partner on Tuesday defended the actions of a former Dentons attorney in a failed $54 million bolivar-to-dollars currency swap, telling jurors that she did not owe a duty to the Venezuelan attorney suing her for malpractice because she never represented him as his attorney.
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November 19, 2024
Graham Capital Sues To Stop Ex-Exec's Return To Competitor
Graham Capital Management LP, a Connecticut investment firm with more than $19 billion in assets under management, is asking a Connecticut state trial court judge to block a former managing director from working in California for a competitor that previously employed him in Connecticut for 11 years.
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November 19, 2024
No Venue Change For Baseball Team Sale Clash
A company accused of stiffing a baseball travel team operator for $1.3 million from the purported purchase of his organization had its bid to move the case to Nebraska rejected by a Texas federal judge.
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November 19, 2024
Cravath-Led Robinhood To Acquire TradePMR In $300M Deal
Stock trading app Robinhood Markets Inc., advised by Cravath Swaine & Moore LLP, on Tuesday announced plans to buy registered investment adviser-focused custodial and portfolio management platform TradePMR, led by Stradley Ronon Stevens & Young LLP, in a cash-and-stock deal valued at $300 million.
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November 18, 2024
Fringe Benefits Co.'s Ex-Atty Can't 'Abandon' Them, DOL Says
The U.S. Department of Labor on Monday urged a Maryland federal court not to let a fringe benefits company's former attorney "abandon" the company ahead of a civil contempt hearing over $3.8 million in unpaid mismanaged funds meant for government contractor employees' benefits, citing potentially "severe" consequences for the company.
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November 18, 2024
Industry Group Wants Trump-Era SEC Proxy Rules Reinstated
The National Association of Manufacturers has urged the D.C. Circuit to reverse a ruling that struck down a U.S. Securities and Exchange Commission regulation on proxy voting, arguing the ruling severely limits the agency's regulatory power without any statutory backing.
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November 18, 2024
J&J Posts $1.17B Bond For Del. Merger Milestone Appeal
Johnson & Johnson Inc. has posted a $1.167 billion surety-backed bond ahead of its planned appeal challenging a Delaware Chancery Court's finding that it owes more than $1 billion to a medical robotics developer's former shareholders caught up in a post-acquisition dispute.
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November 18, 2024
Mutual Fund Manager Owes SEC, CFTC $11M After Trial
A Wisconsin federal judge has ordered the operator of a mutual fund to pay more than $11 million to the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission after being found liable by a jury of making untrue statements and breaching his fiduciary duty to investors.
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November 18, 2024
StraightPath Execs Must Face $386M IPO Fraud Charges
A New York federal judge denied a bid Monday by three principals of Florida-based private equity firm StraightPath Venture Partners to dismiss an indictment accusing them of raising $386 million by defrauding over 2,000 investors through false promises about purchases of pre-IPO shares in private companies.
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November 18, 2024
Latham-Led Software Startup ServiceTitan Joins IPO Pipeline
Venture-backed software startup ServiceTitan Inc. filed plans on Monday for an initial public offering, represented by Latham & Watkins LLP and underwriters' counsel Wilson Sonsini Goodrich & Rosati PC, joining a growing list of IPO prospects.
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November 18, 2024
Chancery Orders Paybacks In Decade-Old Lease Co. Suit
Former directors of a global temporary housing business that served corporations worldwide must repay indemnification payouts under a multipart Court of Chancery ruling on a suit originally brought in 2014 alleging breaches of a shareholder agreement and fiduciary duty.
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November 18, 2024
Bain Capital Lands $5.7B For Global Special Situations Fund
Private equity giant Bain Capital, advised by Ropes & Gray LLP, on Monday announced that it finished fundraising for its second global special situations fund after securing $5.7 billion from investors.
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November 18, 2024
Wachtell-Led CVS Adds Glenview CEO, Others To Board
CVS Health, represented by Wachtell Lipton Rosen & Katz, said Monday it has struck a deal with activist investor Glenview Capital Management to appoint four new board members, including Glenview CEO Larry Robbins.
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November 18, 2024
Bechtel Retiree Seeks Class Status In 401(k) Fee Suit
A Bechtel Global Corp. retiree asked a Virginia federal judge to let her represent 7,000 retirement plan participants in her suit claiming the engineering company overcharged its $5.7 billion plan by tapping a pricey default investment option.
Expert Analysis
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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.
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So You Want To Move Your Law Practice To Canada, Eh?
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.
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A Look At Similarities Between SOX And SEC's Cyber Rule
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.
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Class Actions At The Circuit Courts: November Lessons
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.
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5 Areas Congress May Investigate After GOP Election Wins
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.
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Trump's 2nd Term May Be A Boost To Banking Industry
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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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.