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Capital Markets
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November 01, 2024
'Razzlekhan' Asks For Time Served For Role In Crypto Hack
The wife of a hacker convicted for his role in a scheme to steal bitcoin worth billions of dollars from crypto exchange Bitfinex has asked to dodge future prison time ahead of sentencing for her role laundering the scheme's proceeds.
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November 01, 2024
Crypto Co. Gemini Teed Up For CFTC Trial After Appeal Denied
A New York federal judge has denied crypto exchange Gemini's bid to immediately appeal his decision that Gemini could be held liable for alleged misrepresentations to the U.S. Commodity Futures Trading Commission concerning its proposed bitcoin futures contract, sending the case to trial.
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November 01, 2024
Crypto Co. CoinShares Appoints Citadel Alumna As GC
Crypto investment company CoinShares International Ltd. has appointed an alumna of Sidley Austin LLP and investment firm Citadel to serve as group general counsel, the company announced.
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November 01, 2024
Newbury Street SPAC Returns To Market With $150M Offering
Special purpose acquisition company Newbury Street II Acquisition Corp. began trading Friday after raising a $150 million initial public offering, guided by three law firms, and marking the second Newbury Street vehicle to go public under similar management.
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November 01, 2024
CFPB Fines VyStar $1.5M For 'Botched' Web Platform Rollout
The Consumer Financial Protection Bureau has fined VyStar Credit Union $1.5 million for an alleged "botched" rollout of a new online banking platform that made it hard for members to perform basic banking functions for weeks, with some features unavailable for more than six months.
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November 01, 2024
Del. Chancellor To Issue Musk Pay Suit Ruling By Year's End
Delaware's chancellor said she'll issue a final ruling by the end of the year in the lawsuit challenging Tesla CEO Elon Musk's multibillion-dollar stock-based compensation plan, stating it's taking longer than expected to determine whether to allow a post-verdict stockholder vote to resurrect the pay package.
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November 01, 2024
Blockchain Gaming Co. Immutable Says SEC May Bring Suit
Blockchain gaming firm Immutable said Friday that the U.S. Securities and Exchange Commission is considering bringing an enforcement action after the firm received notice of the regulator's scrutiny on an "accelerated timeline" ahead of the U.S. election.
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November 01, 2024
Rent The Runway Wants Redo On Investor Suit Exit Bid
Rent the Runway, actress Gwenyth Paltrow and the company's underwriters have urged a New York federal judge to rethink her September order that kept alive certain claims in a proposed investors class action alleging the clothing rental company failed to inform investors about major challenges it was facing in the run-up to its 2021 initial public offering.
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November 01, 2024
Blockchain Coinvestors SPAC To Dissolve With No Biz Combo
Special purpose acquisition company Blockchain Coinvestors Acquisition Corp. I will dissolve and return investors their money after two failed merger attempts, the company has announced, marking the latest SPAC to close shop amid lean market conditions.
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November 01, 2024
Taxation With Representation: Kirkland, Davis Polk, Wachtell
In this week's Taxation with Representation, BC Partners sells its majority equity interest in GardaWorld, Lone Star Funds sells specialty chemicals company AOC to Nippon Paint Holdings, Crescent Biopharma takes GlycoMimetics private, and Francisco Partners buys AdvancedMD from Global Payments.
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November 01, 2024
MVP: Sidley's Samir A. Gandhi
Sidley Austin LLP partner Samir A. Gandhi guided landmark capital raises despite jittery markets over the past year, from marketing automation startup Klaviyo's $576 million initial public offering to hospital operator Ardent Health's long-awaited listing, plus several sizable debt offerings, earning him a spot as one of the 2024 Law360 Capital Markets MVPs.
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October 31, 2024
Ex-Goldman Exec Says 1MDB Judge Thwarted His Defense
Former Goldman Sachs executive Roger Ng on Thursday told the Second Circuit that his trial defense over the massive $6.5 billion 1MDB scheme was marred by the wrongful exclusion of video evidence that supported his claim that $35 million he received in alleged kickbacks was actually investment proceeds.
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October 31, 2024
Instacart Says Investors Based Pre-IPO Suit On Anecdotes
Grocery delivery company Instacart has urged a California federal judge to toss a proposed class action suit claiming it misrepresented its growth potential in the lead-up to its initial public offering, saying investors are "attempting to conjure a securities fraud lawsuit out of thin air."
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October 31, 2024
2nd Circ. Draws BDO Back In Investor Suit In Revised Opinion
The Second Circuit on Thursday reversed course in an amended opinion about an investor suit over financial restatements made by AmTrust Financial Services Inc., finding that auditor BDO USA LLP is not off the hook for certifying the insurer's financial statements.
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October 31, 2024
Ex-Citadel Reps Can't Escape Trade Secrets Suit
A New York federal judge has greenlighted most claims in Citadel Securities' lawsuit accusing a Swiss cryptocurrency trading firm founded by two of its former employees of stealing its trade secrets, while tossing those asserted against the firm's French angel investor for lack of jurisdiction.
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October 31, 2024
JPMorgan To Pay $151M To Resolve SEC Disclosure Claims
The U.S. Securities and Exchange Commission announced Thursday that two JPMorgan Chase & Co. affiliates agreed to pay $151 million to resolve five separate enforcement actions over a number of allegations, including making misleading disclosures to investors and failing to make recommendations in the best interest of customers.
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October 31, 2024
Feds: No 'Willfulness' Needed In Texas AG-Tied Investor Case
Federal prosecutors asked a Texas federal judge to reject an attempt by an investor at the center of the failed impeachment of Texas Attorney General Ken Paxton to toss the fraud case, saying Wednesday that "willfulness" isn't needed for a conspiracy to commit wire fraud conviction.
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October 31, 2024
10 Firms Vie To Lead, Consolidate Super Micro Investor Suits
Ten firms have submitted competing bids to lead and consolidate proposed class actions alleging that artificial intelligence server manufacturer Super Micro Computer Inc.'s shares fell roughly 20% after a short seller report accused it of violating its previous settlement with the U.S. Securities and Exchange Commission over accounting improprieties.
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October 31, 2024
NY Court Urged To Reject 'Audacious' Shareholder Test Cases
Leading business groups have come to the aid of Bayer AG and Barclays PLC as the companies seek to fend off a pair of "audacious" test cases that have landed in New York's highest court, with the groups arguing that allowing the lawsuits to move forward would flood the state court with derivative lawsuits against foreign companies and overturn decades of precedent.
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October 31, 2024
Crypto Lobby Says Members Spent $426M Fighting SEC
The Blockchain Association, a cryptocurrency lobby, said in a report released Thursday that its members reported incurring $426 million in legal costs so far defending actions from the U.S. Securities and Exchange Commission.
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October 31, 2024
Warren Says DOJ's 'Legal Gymnastics' Let TD Bank Off Easy
U.S. Sen. Elizabeth Warren, D-Mass., pressed Attorney General Merrick Garland on Thursday over what she characterized as a lax settlement agreement for TD Bank earlier this month and the Justice Department's "legal gymnastics" that left top bank executives off the hook.
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October 31, 2024
Masimo Sues Ex-CEO Over 'Unprecedented' $450M Demand
Masimo Corp. has sued its founder in Delaware Chancery Court, seeking a declaration that a $450 million payout triggered in part by the founder's loss of control or his ouster as CEO and chairman is unenforceable, saying the amount is "unprecedented" and shouldn't be paid by shareholders who were simply exercising their voting rights.
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October 31, 2024
A Boeing Space Exit, $3B Hot Dogs And More Deal Rumors
Like the two astronauts currently stranded on the International Space Station, Boeing is reportedly looking to get out of space — by exiting its NASA business. In earthly news, foreign meat companies are reportedly eyeing popular hot dog brand Oscar Mayer at a price tag that could approach an arguably gluttonous $3 billion, and Blackstone could shell out five big ones — $5 billion, that is — for a cellphone infrastructure business. Here, Law360 breaks down these and other deal rumors from the past week.
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October 31, 2024
Web Designer Who Built IcomTech Ponzi Site Gets 8 Years
A Manhattan federal judge on Thursday hit a California website designer with eight years in prison for his role in building online properties that made it look as if the $58 million IcomTech cryptocurrency Ponzi scheme was legitimate.
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October 31, 2024
SBA Cries Foul On Globetrotters' $10M COVID Grant Suit
The U.S. Small Business Administration has defended its denial of a $10 million COVID-19 relief grant to the Harlem Globetrotters, telling a D.C. federal judge that it had no legal obligation to hand over the money to the basketball entertainment organization.
Expert Analysis
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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SEC Fine Shows Risks Of Nonpublic Info In X, LinkedIn Posts
The U.S. Securities and Exchange Commission recently announced a settlement with DraftKings over charges arising from posting material nonpublic information on the CEO's social media accounts, highlighting that information posted to company websites and social media sites does not automatically qualify as "publicly disclosed" for purposes of Regulation FD, say attorneys at O'Melveny.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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CFTC Anti-Fraud Blitz Is A Warning To Carbon Credit Sellers
With its recent enforcement actions against a carbon offset project developer and its senior executives for reporting false information about the energy savings of the company's projects, the Commodity Futures Trading Commission is staking out its position as a primary regulator in the voluntary carbon credit market, say attorneys at Morgan Lewis.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.