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Capital Markets
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September 30, 2024
Ropes & Gray, Kirkland Guide PE-Backed Education Co.'s IPO
Private equity-financed early childhood education provider KinderCare announced Monday it plans to go public in an estimated $600 million initial public offering, with Ropes & Gray representing the company and Kirkland serving as counsel for the underwriters, leading one of two companies scheduled to price their IPOs next week.
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September 30, 2024
SEC Fines LA Man In Truth Social-Linked Insider Trading Case
The U.S. Securities and Exchange Commission announced that Los Angeles-based entrepreneur Eric Hannelius will pay over $365,000 to settle allegations that he traded on inside information ahead of a blank check company's acquisition of the owner of social media platform Truth Social.
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September 30, 2024
PE-Backed IT Provider Ingram Micro Files Long-Awaited IPO
Private equity-owned technology company Ingram Micro made public its U.S. initial public offering filing Monday, more than two years after the Irvine, California-based electronics distributor laid the foundation for its return to stock markets.
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September 30, 2024
Schwab Nears Deal In Antitrust Suit Over TD Ameritrade Buy
Charles Schwab Corp. has reached "an agreement in principle" with retail investors who filed a proposed class action alleging increased transaction costs for trades and other antitrust injury following the Schwab-TD Ameritrade merger, the parties told a Texas federal judge Friday.
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September 27, 2024
Binance Founder Zhao Released From Federal Custody
Binance founder Changpeng Zhao was released from a California correctional facility Friday after he was sentenced to four months in prison for his failure to implement an effective anti-money laundering program at the global cryptocurrency exchange, the Federal Bureau of Prisons confirmed to Law360.
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September 27, 2024
Corporate Raider Accused Of Shirking $180M SEC Judgment
Corporate takeover specialist Paul A. Bilzerian, accused of ducking a more than $180 million judgment owed to the U.S. Securities and Exchange Commission for decades, was indicted alongside his longtime accountant and his cannabis company on Thursday, California federal prosecutors said Friday.
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September 27, 2024
Elliot Unit To Pay $7.29B As Citgo Parent Co. Sale Looms
An affiliate of hedge fund Elliott Investment Management LP has emerged as the successful bidder in an upcoming auction of Citgo's parent company aimed at satisfying billions of dollars in Venezuelan debt, agreeing to pay $7.286 billion to purchase the shares in PDV Holding Inc.
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September 27, 2024
SEC Says Ex-Chewy Exec Inside Traded On Pet Insurer Deal
A former executive at pet supply company Chewy agreed Friday to pay more than $35,000 to settle charges from the U.S. Securities and Exchange Commission that he traded on inside information about the company's plans to announce a deal with a pet insurance company.
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September 27, 2024
CFTC Fines Olam Group $3.25M Over Cotton Sales Reports
The Commodity Futures Trading Commission on Friday fined Singapore-based integrated supply chain manager Olam Group Ltd. $3.25 million for allegedly submitting false, misleading or inaccurate reports to the CFTC and the U.S. Department of Agriculture about its sale of U.S. cotton worth more than $190 million.
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September 27, 2024
SEC Drops Case Against Marcum CPA After High Court Ruling
The U.S. Securities and Exchange Commission quietly dropped an in-house proceeding Friday against a Marcum LLP accountant whose case was called into question by a U.S. Supreme Court ruling that curtailed the agency's use of its administrative courts.
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September 27, 2024
SEC Fines Firms, Sues Ex-Reps' Over Cherry-Picking Scheme
The U.S. Securities and Exchange Commission said Friday that Illinois-based Cetera Investment Advisers LLC and formerly California-based First Allied Advisory Services Inc. have each agreed to pay $200,000 to settle claims that two investment advisers formerly associated with both firms ran separate, multiyear, cherry-picking schemes that harmed investors.
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September 27, 2024
FTX Users Say Binance Manipulated Market To Spark Collapse
Users of the now-defunct cryptocurrency exchange FTX told a Florida federal judge that social media posts by competing exchange Binance still manipulated markets to cause the collapse of FTX and harm users even if the statements themselves weren't false.
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September 27, 2024
UK Man Indicted On $4M 'Hack-To-Trade' Scheme
New Jersey federal prosecutors announced Friday that a U.K. man has been arrested and is awaiting extradition on charges of hacking into the email accounts of several corporate executives in order to steal nonpublic information that he used to turn a profit of almost $4 million.
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September 27, 2024
Mango Markets Crypto Cos. Ink $700K Deal Over SEC Claims
The U.S. Securities and Exchange Commission announced Friday that the business entities behind decentralized cryptocurrency exchange Mango Markets agreed to a nearly $700,000 settlement to resolve alleged registration violations, which the regulator brought after the marketplace was bilked of more than $100 million.
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September 27, 2024
Musk Skirts Sanctions In Missed Twitter Deposition, For Now
A California federal judge on Friday declined to sanction Elon Musk, for now, after he skipped a deposition over his $44 billion Twitter takeover, allowing the parties to resolve the issue and advising them to wait to see if he appears for the deposition that's been rescheduled for this coming Friday.
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September 27, 2024
CFTC Accuses Firms Of $3.6M Retail Forex Fraud
The Commodity Futures Trading Commission on Friday targeted a commodity trading platform the regulator alleged was behind a scheme that scammed $3.6 million from Asian American customers who thought they were investing in retail foreign exchange and commodity futures contracts.
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September 27, 2024
CFTC Fines Futures Firm $650K For Botched Records, Trades
The Commodity Futures Trading Commission has fined CHS Hedging LLC $650,000 to settle allegations that it did not properly record thousands of calls between associates and customers and failed to obtain customer authorizations before entering trades over a four-year period.
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September 27, 2024
Early Trump Media Backer Dumps Shares As Lockup Expires
An early investor in former President Donald Trump's social media platform has unloaded most of its stake, marking the first divestiture following the expiration of a lockup period that restricted sales after Trump's entity went public earlier this year.
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September 27, 2024
Puerto Rico Utility Creditors Seek OK For Bond Claims Suit
Representatives of the Puerto Rico Electric Power Authority's unsecured creditors are asking a New York federal judge to allow them to contest what they say is the wrongful lumping of $8.4 billion in bondholder claims with their own claims against the utility.
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September 27, 2024
Life Sciences Firms Energize IPO Market As Recovery Builds
Initial public offerings are closing the year's third quarter on an upswing, led mostly by pre-revenue drug developers and select large companies that are seizing opportunities in friendlier capital markets buoyed by interest-rate cuts, generating momentum that experts say could carry over into next year.
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September 27, 2024
Polsinelli Adds Debt Finance Shareholder In Denver
Polsinelli PC has boosted its transaction services in Denver with the addition of an attorney specializing in private credit who moved his practice after two years with Michael Best & Friedrich LLP.
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September 27, 2024
Ault Disruptive To Dissolve After Failing To Ink SPAC Deal
Blank check company Ault Disruptive Technologies Corp. said on Friday that it plans to dissolve and liquidate because it will not be able to complete an initial business combination before Dec. 20.
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September 26, 2024
SEC Fines Cassava $40M Over Alzheimer's Treatment Claims
Neuroscience-focused biopharmaceutical company Cassava Sciences Inc. and two of its former executives agreed to pay over $40 million to resolve U.S. Securities and Exchange Commission claims related to allegedly misleading statements about clinical trial results for a potential Alzheimer's disease therapeutic, the regulator announced on Thursday.
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September 26, 2024
Cannabis REIT Beats Investor Class Action For Good
A New Jersey federal judge has allowed a cannabis-focused real estate investment trust and certain executives to permanently escape a proposed class action brought by the company's shareholders, finding the lawsuit failed to allege the defendants did not conduct proper due diligence on a major tenant accused of engaging in fraud.
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September 26, 2024
2nd Circ. Questions Crypto Co.'s 'Control' In Scam Token Suit
Investors attempting to revive their suit around decentralized crypto exchange Uniswap Labs told a Second Circuit panel on Thursday that their claims were prematurely dismissed, while a judge pressed them to show how any of the defendants had control of the alleged "rampant fraud" on the platform.
Expert Analysis
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Perspectives
Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.
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CFPB's Expanding Scope Evident In Coding Bootcamp Fine
The Consumer Financial Protection Bureau's recent penalty against a for-profit coding bootcamp that misrepresented its tuition financing plans is a sign that the bureau is seeking to wield its supervisory and enforcement powers in more industries that offer consumer financing, say Jason McElroy and Brandon Sherman at Saul Ewing.
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Fintech Compliance Amid Regulatory Focus On Sensitive Data
The Consumer Financial Protection Bureau's recent, expansive pursuit of financial services companies using sensitive personal information signals a move into the Federal Trade Commission's territory, and the path forward for fintech and financial service providers involves a balance between innovation and compliance, say attorneys at Wilson Sonsini.
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Opinion
Del. Needs To Urgently Pass Post-Moelis Corporate Law Bill
After the Delaware Chancery Court's decision in West Palm Beach Firefighters' Pension v. Moelis sparked confusion around governance rights, recently proposed amendments to the Delaware General Corporation Law would preserve the state's predictable corporate governance system, says Lawrence Hamermesh at Widener University Delaware Law School.
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5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant
In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.
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4 Arbitration Takeaways From High Court Coinbase Ruling
The U.S. Supreme Court's May 23 decision in Coinbase v. Suski, which provides clarity to parties faced with successive contracts containing conflicting dispute resolution provisions, has four practical impacts for contracting parties to consider, say Charles Schoenwetter and Eric Olson at Bowman and Brooke.
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Series
Playing Music Makes Me A Better Lawyer
My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.
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How Attys Can Avoid Pitfalls When Withdrawing From A Case
The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.
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Using A Children's Book Approach In Firm Marketing Content
From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.
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The State Of Play In DEI And ESG 1 Year After Harvard Ruling
Almost a year after the U.S. Supreme Court decided Students for Fair Admissions v. Harvard, attorney general scrutiny of environmental, social and governance-related efforts indicates a potential path for corporate diversity, equity and inclusion initiatives to be targeted, say attorneys at Crowell & Moring.
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CFPB Poised To Up The Ante After Supreme Court Victory
When the U.S. Supreme Court emphatically ruled last week that the Consumer Financial Protection Bureau's funding structure did not violate the Constitution, the agency boasted that it was "here to stay," signaling that it is moving full steam ahead with its regulatory, enforcement and supervisory agenda, says Jim Sandy at McGlinchey Stafford.
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2 Oil Trader FCPA Pleas Highlight Fine-Reduction Factors
Recent Foreign Corrupt Practices Act settlements with Gunvor and Trafigura — the latest actions in a yearslong sweep of the commodities trading industry — reveal useful data points related to U.S. Department of Justice policies on cooperation credit and past misconduct, say Michael DeBernardis and Laura Perkins at Hughes Hubbard.
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Influencer Considerations As FINRA Initiates Crackdown
To avert risks when evaluating influencer and referral programs, firms should assess the Financial Industry Regulatory Authority's recent settlements involving the supervision of social media tastemakers, as well as recent FINRA guidance in this area, say attorneys at Troutman Pepper.
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New Crypto Reporting Will Require Rigorous Recordkeeping
The release of a form for reporting digital asset transactions is a pivotal moment in the Internal Revenue Service's efforts to track cryptocurrency activities that increases oversight by requiring brokers to report investor sales and exchanges, say Shaina Kamen and Max Angel at Holland & Knight.
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A Comparison Of FDIC, OCC Proposed Merger Approaches
Max Bonici and Connor Webb at Venable take a closer look at the Federal Deposit Insurance Corp.'s and Office of the Comptroller of the Currency's respective bank merger proposals and highlight certain common themes and important differences, in light of regulators continually rethinking their approaches to bank mergers.