Securities

  • November 18, 2024

    Justices Urged To Pass On 3rd Circ. CFPB Loan Trust Case

    The Consumer Financial Protection Bureau has asked the U.S. Supreme Court to deny an appeal by a group of student loan trusts fighting an enforcement action by the agency, arguing that industry concerns about the Third Circuit case are overblown and unavailing.

  • November 18, 2024

    Ex-AutoZone CEO Must Face $1M 'Short-Swing' Profit Suit

    A Tennessee federal judge said a former AutoZone Inc. CEO must face an investor suit seeking to recover over $1 million in alleged "short-swing" trading profits on behalf of the company, saying the shareholder has plausibly alleged that the ex-CEO's trades were not exempt from certain insider trading rules.

  • 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.

  • 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.

  • November 18, 2024

    Ex-Crypto CEO Bribe Case Unsealed As Firm Inks $10M Deal 

    The former CEO of a cryptocurrency mining company tried to bribe Japanese government officials to be able to open a resort in the country, according to an indictment unsealed Monday alongside the company's $10 million deferred prosecution agreement.

  • November 18, 2024

    Hacker's Wife Gets 18 Months For Laundering Stolen Crypto

    The wife of a hacker who stole what is now billions of dollars' worth of bitcoin from the crypto exchange Bitfinex was sentenced in D.C. federal court Monday to 18 months in prison for her role in helping to launder the stolen funds.

  • 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.

  • 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.

  • November 18, 2024

    SEC Sued Over FINRA's One-Day Bond Reporting Timeline

    The U.S. Securities and Exchange Commission has been hit with a lawsuit seeking to overturn a newly adopted rule that will require brokerage firms to report bond transactions more quickly, with the suing organization previously claiming there was no evidence justifying a need for such a change.

  • November 18, 2024

    Webtoon Brass Hit With Derivative Suit Over Post-IPO Plunge

    Executives and directors of online comics platform Webtoon Entertainment Inc. face a shareholder derivative claim alleging the company went public while concealing that it was seeing minimal growth.

  • November 18, 2024

    Chancery Consolidates 2 Musk, Derivative Damage Suits

    Delaware's chancellor on Monday combined two class suits that separately targeted Elon Musk's massive sales of Tesla Inc. stock and alleged diversions of Tesla talent to Musk's spun-off artificial intelligence venture, while ordering coordination with a suit seeking damages arising from alleged insider trading in late 2022.

  • November 18, 2024

    Operator Of Darknet Crypto Laundering Tool Gets 3 Years

    An Ohio man who had pled guilty to operating a darknet cryptocurrency tool used by drug dealers to launder millions of proceeds from darknet drug markets has been sentenced to three years in prison, the U.S. attorney for the District of Columbia announced.

  • November 18, 2024

    Former GE Exec Guilty Of Faking Docs In $1.1B Power Deal

    A Manhattan federal jury on Monday convicted a former GE Power executive of using forged documents, then taking a $5 million kickback, in what federal prosecutors called a corrupt effort to close a $1.1 billion energy deal in Angola.

  • November 18, 2024

    Ozy Media CEO Turns To 2nd Circ. Over Judge's Investments

    The "atypical" conflict and threat to public confidence in the judiciary created by a New York federal judge's financial investments warrant the Second Circuit stepping in to undo former Ozy Media CEO Carlos Watson's fraud and identity theft convictions sooner rather than later, Watson told the appellate court on Monday.

  • November 15, 2024

    Big Banks Still Need To Beef Up Controls, Fed Report Says

    The Federal Reserve said Friday that even as the banking system has remained "sound and resilient," large banks continue to grapple with governance and controls issues, while regional and small banks have seen increases in outstanding supervisory findings.

  • November 15, 2024

    Jordan Says DOJ, FTC, CFTC Teed Up Actions Ahead Of Trump

    House Judiciary Committee Chairman Jim Jordan, R-Ohio, lambasted three federal departments and their leaders, accusing them of either trying to push out enforcement actions or make last-minute hires during President Joe Biden's final days in office.

  • November 15, 2024

    Trump's SDNY Pick A Familiar Face In Wall Street's Legal Wing

    Jay Clayton's nomination to be the Manhattan U.S. attorney would seat a highly regarded Wall Street lawyer in one of the top law enforcement jobs in the country, but he may face headwinds over his industry relationships and lack of criminal prosecution experience.

  • November 15, 2024

    SEC-Sanctioned Accounting Firm Sued Over Pre-IPO Work

    The former public company accounting firm BF Borgers is facing a California state lawsuit by an ex-client that says it was forced to scuttle its plans for an initial public offering after the U.S. Securities and Exchange Commission accused the firm of being a "sham auditing mill."

  • November 15, 2024

    Venezuelan Lawyer Relied On Ex-Dentons Atty In $54M Swap

    A Venezuelan lawyer suing Dentons over a failed $54 million bolivar-to-dollars currency swap admitted Friday on the stand that he did not do any due diligence for the transaction but instead relied on what he called misinformation from an ex-Dentons attorney that she relayed to his representative.

  • November 15, 2024

    SEC Says Risky Bond Recommendations Violated Reg BI

    A Texas-headquartered broker-dealer has agreed to pay nearly $154,000 to resolve U.S. Securities and Exchange Commission allegations that it improperly recommended risky bonds in violation of the federal investor protection measure known as Regulation Best Interest.

  • November 15, 2024

    7th Circ. Takes Issue With Atty's Insider Trading Acquittal

    A Seventh Circuit judge signaled Friday that an Illinois attorney's insider trading acquittal may be on shaky ground, saying the trial court made a post-conviction ruling that seems "hard to defend."

  • November 15, 2024

    Kalshi Fires Back At CFTC's 'Futile' Election Betting Appeal

    The Commodity Futures Trading Commission is attempting to "rewrite" its governing statute by claiming that placing bets on the outcome of elections is a form of prohibited gaming, trading platform KalshiEx LLC told the D.C. Circuit on Friday as it fought to continue listing election contracts in the future.

  • November 15, 2024

    Healthcare Co. PACS Made False Claims Before IPO, Suit Says

    Healthcare holding company PACS Group Inc. has been hit with a proposed shareholder class action on the heels of a short seller's report that alleged the company engaged in deceptive practices to boost its value ahead of its initial public offering, including Medicare claims fraud.

  • November 15, 2024

    GOP Sens. Decry 'Lack Of Urgency' On FDIC Misconduct

    Six Republican senators wrote a letter to the Federal Deposit Insurance Corp. Inspector General Jennifer L. Fain asking for a briefing on the FDIC's progress investigating claims of widespread misconduct at the agency, asserting there has been "a shocking lack of urgency."

  • November 15, 2024

    Semiconductor Co. ASML Faces Suit Over Trade Downturn

    Semiconductor industry supplier ASML Holding NV has been hit with a shareholder class action alleging that it stunned investors as it significantly lowered its 2025 revenue forecast after earlier brushing off the potential impact of economic headwinds affecting its industry.

Expert Analysis

  • Class Actions At The Circuit Courts: August Lessons

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    In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers certification cases touching on classwide evidence of injury from debt collection practices, defining coupon settlements under the Class Action Fairness Act, proper approaches for evaluating attorney fee awards in class action settlements, and more.

  • Crypto Regs Could See A Reset Under The Next President

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    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.

  • Planning Law Firm Content Calendars: What, When, Where

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    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.

  • Key Concerns To Confront In FDIC Brokered Deposit Proposal

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    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.

  • Crypto Gatekeepers May Be The Next Front Of Enforcement

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    Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.

  • Series

    Playing Golf Makes Me A Better Lawyer

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    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.

  • Law Firms Should Move From Reactive To Proactive Marketing

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    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.

  • 3 Ways To Limit Risks Of Black-Box AI In Financial Services

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    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.

  • 3 High Court Rulings May Shape Health Org. Litigation Tactics

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    Three separate decisions from the U.S. Supreme Court's most recent term — Loper Bright, Corner Post and Jarkesy — will likely strengthen healthcare organizations' ability to affirmatively sue executive agencies to challenge regulations governing operations and enforcement actions, say attorneys at McDermott.

  • Opinion

    The Big Issues A BigLaw Associates' Union Could Address

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    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.

  • Opinion

    It's Time For A BigLaw Associates' Union

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    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.

  • Why DOJ's Whistleblower Program May Have Limited Impact

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    The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.

  • How Justices Upended The Administrative Procedure Act

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    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.

  • How Corner Post Affects Enviro Laws' Statutes Of Limitations

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    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.

  • FTC Drives Crackdown On Connected Cars' Data Privacy Risk

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    After the Federal Trade Commission's warning to automakers about data privacy, which continues to emerge as a national concern, automakers must carefully examine their data collection, use and retention practices, say Catherine Castaldo and Michael Rubayo at Reed Smith.

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