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Capital Markets
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January 28, 2025
GigaCloud Partially Escapes Suit Over Revenue, Tech Claims
GigaCloud Technology Inc. and its top brass have partially escaped a proposed class action alleging it misrepresented its operating metrics and revenues and use of artificial intelligence, with a New York federal judge saying that a federal securities law violation "cannot be premised upon a company's disclosure of accurate historical data."
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January 28, 2025
Ex-SEC Enforcement Chief Says Staff Faced Uptick In Threats
The U.S. Securities and Exchange Commission's recently departed enforcement chief said Tuesday he wishes he could have done more to insulate his staff from the uptick in threats they received while he headed the program, and he urged his successor to do what they could to protect the agency's attorneys.
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January 28, 2025
Founder Can't Explain Hedge Fund's Filing Mismatch To Jury
A hedge fund founder told a Denver jury Tuesday that he doesn't know why some of the fund's regulatory filings don't identify it as a director for a Colorado biopharmaceutical company, in a suit brought by stockholders who claim the fund must return $11 million earned from short-swing trades.
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January 28, 2025
Citron Research Founder Slams DOJ's Fraud Suit
Citron Research's founder urged a California federal judge to throw out the federal government's securities fraud case alleging he published unfavorable reports about companies to manipulate stock prices, arguing Monday he never published false information about any public company, and prosecutors fail to allege he intended to defraud his audience.
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January 28, 2025
DC Judge Doubts Lawfulness Of USCIS EB-5 Guidance
A D.C. federal judge expressed deep skepticism Tuesday that U.S. Citizenship and Immigration Services acted lawfully when the agency shortened the minimum investment period for foreign investors seeking green cards, outlining plans to toss the rule or pause a lawsuit challenging it pending rulemaking.
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January 28, 2025
Drugs Made In America SPAC Nets $200M To Buy Pharma Biz
Blank-check company Drugs Made In America Acquisition Corp. began trading Tuesday after completing a downsized $200 million initial public offering with the intention of acquiring a U.S.-based pharmaceutical business, represented by Loeb & Loeb LLP and underwriter's counsel Winston & Strawn LLP.
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January 28, 2025
Dolce & Gabbana Wants 'Worthless' NFT Outfit Suit Tossed
The U.S. division of Italian luxury fashion brand Dolce & Gabbana has urged a New York federal judge to toss a proposed investor class action accusing it of abandoning a nonfungible tokens project while retaining the more than $25 million that was used to fund it, arguing that the U.S. arm of the company was not at all involved in the project.
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January 28, 2025
SEC Wells Meetings Likely Back On The Table, Official Says
The U.S. Securities and Exchange Commission's acting deputy director of enforcement said Tuesday that leadership was open to meeting more frequently with those facing SEC investigations and hinted at the possibility that it would pursue fewer industry bars against those who violate the securities laws.
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January 28, 2025
Silk Road Pardon Sparks Hope For More Crypto Clemency
President Donald Trump's decision to free the convicted Silk Road operator Ross Ulbricht brought praise from crypto advocates and spurred some to seek the ear of the new administration in hopes that the president will pardon other alleged crypto criminals, too.
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January 28, 2025
Cement Maker Carve-Out Titan America Plans For $396M IPO
The U.S. business of worldwide cement producer Titan Cement Group on Tuesday announced the terms for its initial public offering, planning to raise $396 million.
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January 28, 2025
Capital Markets Group Of The Year: Debevoise
The complex transactions that Debevoise & Plimpton LLP's capital markets practice group executed over the past year for clients in the insurance and utility industries — worth millions and billions of dollars — earn it a spot among the 2024 Law360 Capital Markets Practice Groups of the Year.
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January 28, 2025
Paul Hastings, Cravath Lead Smithfield's Reduced $522M IPO
Shares of pork producer Smithfield Foods Inc., which has spun off from China's WH Group, began trading Tuesday after the company priced a downsized $522 million initial public offering below its initial range, with Paul Hastings LLP advising Smithfield in the offering and Cravath Swaine & Moore LLP representing its underwriters.
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January 27, 2025
Radiology Co.'s Ex-Workers Win Class Cert. In ESOP Suit
A Colorado federal judge on Friday certified an ERISA class action accusing a radiology company and its trustee of overcharging its employee stock ownership plan for purchase of company stock.
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January 27, 2025
Lummis Tells 2nd Circ. SEC 'Flouts' Congress In Crypto Cases
Sen. Cynthia Lummis, R.-Wyo., told the Second Circuit that the U.S. Securities and Exchange Commission's ongoing suit against Coinbase Inc. has complicated congressional efforts to set rules for digital assets, filing her support for the crypto exchange's bid for a quick ruling from the appeals court on how securities laws apply to the transactions on its platform.
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January 27, 2025
Crypto Exchange KuCoin Pleads Out, Agrees To Pay $297M
Cryptocurrency exchange KuCoin on Monday pled guilty and agreed to pay $297 million for failing to implement anti-money laundering protocols and allowing more than $5 billion worth of criminal funds to flow through its trading platform.
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January 27, 2025
Fund Tells Jury No Need To Return $11M Short-Swing Profits
A hedge fund told a Denver federal jury Monday that the $11 million it earned from the short-swing sales of a biopharmaceutical company's stock doesn't need to be returned because the transactions fall under an exception to securities law on insider trading.
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January 27, 2025
Archegos CFO Gets 8 Years For $100M Stock Fraud Ploy
The former chief financial officer of defunct hedge fund Archegos on Monday was sentenced in New York federal court to eight years in prison for his role in a $100 billion scheme to manipulate the market and defraud banks.
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January 27, 2025
Obesity-Focused Metsera Leads Biotech Firms Eyeing IPOs
Obesity-focused drug developer Metsera launched plans on Monday for an estimated $275 million initial public offering, joined by kidney-disease focused Maze Therapeutics, both of which plan to tap the markets this week under combined guidance of four law firms.
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January 27, 2025
SEC OKs Nasdaq Pulling Diversity Rules After 5th Circ. Loss
The U.S. Securities and Exchange Commission has greenlighted Nasdaq's proposal to undo the exchange's rules requiring that companies listed on it disclose board diversity data, following a narrow, en banc ruling from the Fifth Circuit last month finding the rules ran afoul of federal securities law.
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January 27, 2025
NFL Union, DraftKings Reach Settlement In NFT Licensing Suit
The NFL Players Association and DraftKings Inc. asked a New York federal judge Monday to pause a lawsuit that accused the betting platform of failing to follow through on a licensing agreement related to nonfungible tokens while they iron out details of a settlement.
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January 27, 2025
Ga. Accountant Must Face Fintech Co.'s Share Price Suit
A Georgia federal judge has declined to dismiss most of a British fintech company's suit against Atlanta-based accounting firm Frazier & Deeter LLC over an allegedly bungled stock valuation, ruling Monday that a hold harmless clause in the companies' contract was largely unenforceable.
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January 27, 2025
Drone Co., Media Biz And Tire-Maker Announce SPAC Mergers
Three overseas companies spanning industries from drones to fashion media and tire manufacturing announced plans on Monday to go public in the U.S. by merging with special purpose acquisition companies in deals projected to exceed $1.1 billion in value, guided by at least eight law firms.
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January 27, 2025
Novo Nordisk's Obesity Drug Study Allegedly Duped Investors
Novo Nordisk was hit with a proposed securities class action in New Jersey federal court Friday, accusing the drugmaker of duping investors about its new weight loss drug CagriSema by failing to disclose that obesity patients were taking different dosages in a clinical study, which allegedly skewed results.
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January 27, 2025
Deutsche Bank Can't Add Norway Rulings To Asset Sale Fight
A Connecticut state judge has rejected Deutsche Bank AG's request to add a series of rulings by Norwegian courts into the state court's record while the bank pursues claims that Norwegian billionaire Alexander Vik and his daughter sabotaged an asset sale — rulings that the bank initially said were irrelevant.
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January 27, 2025
Skadden Grows In Houston With V&E's Global M&A Co-Leader
Skadden Arps Slate Meagher & Flom LLP announced Monday that the former global co-head of Vinson & Elkins LLP's mergers and acquisitions and capital markets group has joined the firm in Houston, bolstering the firm's corporate and energy offerings.
Expert Analysis
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Crypto Regs Could See A Reset Under The Next President
Donald Trump has taken a permissive policy stance favoring crypto, while Kamala Harris has been silent on the issue, but no matter who wins the presidential election, we may see a more lenient regulatory climate toward the digital currency than from the Biden administration, says Liam Murphy at McKool Smith.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Key Concerns To Confront In FDIC Brokered Deposit Proposal
Banks and fintech companies should note several fundamental issues with the Federal Deposit Insurance Corp.'s recent proposal to widen how it classifies brokered deposits, an attempt to limit prudential risk that could expose the industry and underbanked consumers who rely on bank-fintech apps to widespread unintended consequences, say attorneys at Gibson Dunn.
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4 Steps To Address New Sanctions Time Bar Extension
Recent guidance from the Office of Foreign Assets Control clarifies details of the newly extended statute of limitations for civil and criminal enforcement of U.S. sanctions law, so compliance teams should implement key updates, including to lookback periods and recordkeeping policies, say attorneys at Freshfields.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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3 Ways To Limit Risks Of Black-Box AI In Financial Services
As regulators increasingly highlight the potential for artificial intelligence to make unfair consumer credit decisions, and require financial institutions to explain how these so-called black-box algorithms arrive at conclusions, companies should consider three key questions to reduce their regulatory risks from these tools, say Jeffrey Naimon and Caroline Stapleton at Orrick.
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Tips For Revamping Patent Portfolio Strategy In AI Deal Era
Recent data suggests patents are significantly enhancing exit valuations, particularly with cutting-edge technologies like those powered by artificial intelligence, but it is necessary to do more than simply align patent strategy with business goals, says Keegan Caldwell at Caldwell Law.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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How Corner Post Affects Enviro Laws' Statutes Of Limitations
The U.S. Supreme Court's recent ruling in Corner Post v. Federal Reserve Board has helped to alter the fundamental underpinnings of administrative law — and its plaintiff-centric approach may have implications for some specific environmental laws' statutes of limitations, say Chris Leason and Liam Martin at Gallagher and Kennedy.
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Jarkesy May Thwart Consumer Agencies' Civil Penalty Power
The U.S. Supreme Court's ruling in U.S. Securities and Exchange Commission v. Jarkesy not only implicates future SEC administrative adjudications, but those of other agencies that operate similarly — and may stymie regulators' efforts to levy civil monetary penalties in a range of consumer protection enforcement actions, say attorneys at Holland & Knight.
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Lessons From Recent SEC Cyber Enforcement Actions
The recent guidance by the SEC's Division of Corporation Finance is helpful to any company facing a cybersecurity threat, but just as instructive are the warnings raised by the SEC's recent enforcement actions against SolarWinds, R.R. Donnelley and Intercontinental Exchange, say attorneys at O'Melveny.
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2nd Circ. Ruling Reaffirms Short-Swing Claims Have Standing
The Second Circuit's recent ruling in Packer v. Raging Capital reversing the dismissal of a shareholder's Section 16(b) derivative suit seeking to recover short-swing profits for lack of constitutional standing settles the uncertainty of the district court's decision, which could have undercut Congress' intent in crafting Section 16(b) in the first place, say attorneys at Simpson Thacher.