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Securities
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April 03, 2025
Del. Suit Challenges 'DExit' Corporate Law, Dropbox Move
One of Delaware's oldest law firms on Thursday challenged the constitutionality of a corporate law overhaul pushed through the General Assembly last month in a declared bid to stem "DExit" corporate charter relocations to other states and protect the state's legal industry and $2 billion in annual corporate franchise fees.
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April 03, 2025
Tequila Maker Sues Acquirer In Del. Alleging Earnout Dodge
A stockholder representative of tequila company 21Seeds Inc. has filed suit against Diageo North America, accusing the global liquor giant of undercutting post-acquisition earn-out targets for 21Seeds and putting the company "in mothballs" in a scheme to develop its own competing brand to the women-founded flavored tequila.
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April 03, 2025
Feds Say Cash Advance Biz Owner Ran $40M Ponzi Scheme
Federal prosecutors said Thursday that a Miami man ran a $40 million Ponzi scheme through a company that purported to make money through quick loans to small businesses.
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April 03, 2025
SEC's Gemini Crypto Trading Suit Paused For More Deal Talks
A New York federal judge paused the U.S. Securities and Exchange Commission's unregistered securities trading claims against cryptocurrency exchange Gemini Trust Co. after the agency and the company informed the court they were approaching a resolution, which would be the second deal reached in the case.
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April 03, 2025
'No Serious Question' Federal Firings Broke Law, Justices Told
Federal employee unions and advocacy groups urged the U.S. Supreme Court on Thursday to reject the Trump administration's bid to pause a California court order reinstating tens of thousands of probationary workers fired from six agencies, arguing the government can't escape self-inflicted harms brought on by its allegedly unlawful actions.
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April 03, 2025
Senate Advances Noms Of Trump's SEC, OCC Picks
The U.S. Senate Banking Committee voted along party lines Thursday to advance the nominations of President Donald Trump's chosen leaders for the U.S. Securities and Exchange Commission and the Office of the Comptroller of the Currency, sending both to the full Senate for a final confirmation vote.
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April 03, 2025
Bakkt Holdings Faces Suit Over Lost Crypto Revenue
Bakkt Holdings Inc. and its top brass have been hit with a potential class action in New York federal court by an investor alleging that the crypto technology company and its executives misrepresented the stability of its crypto services revenue after it acquired a crypto platform.
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April 03, 2025
Judge OKs Toss Of FCPA Case Against Ex-Cognizant Execs
A New Jersey federal judge on Thursday granted the federal government's bid to end the Foreign Corrupt Practices Act case against two former executives of Cognizant Technology Solutions Corp., ending a legal battle that was beset by delays throughout its six-year run.
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April 03, 2025
Atty Suspended Over Billing Lapses In State Street Case
The former managing partner of Thornton Law Firm LLP has received a 30-day license suspension for his decision to sign an inaccurate billing declaration to a federal judge in an investor action against State Street Bank.
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April 03, 2025
Cango Selling China Biz For $352M In Bitcoin Mining Push
Cango Inc. said Thursday it has agreed to sell its existing business in China to Ursalpha Digital Ltd. for roughly $352 million in cash, as the company looks to transition from its Chinese automotive roots to focus on its growing international cryptocurrency operations.
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April 02, 2025
QuantumScape, SPAC Brass Settle Merger Suit For $8.75M
QuantumScape Corp., its directors and officers and the special-purpose acquisition company that took the lithium-metal battery maker public agreed to an $8.75 million settlement resolving a stockholder derivative suit that alleged the SPAC's brass breached their fiduciary duties in connection with the go-public merger, a Wednesday stipulation states.
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April 02, 2025
Binance Can't Send All Investors' Claims To Arbitration
Crypto exchange Binance has suffered a setback in its bid to send a proposed class action filed by investors to arbitration in Singapore, after a New York federal judge partially denied the motion under an arbitration clause included in a 2019 unilateral update to its terms of use.
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April 02, 2025
Aspiration Partners Gets Interim OK For Ch. 11 Financing
Sustainability-focused financial services provider Aspiration Partners Inc. on Wednesday secured the Delaware bankruptcy court's interim approval to tap $2.2 million of an $18 million Chapter 11 financing facility as the company looks for a buyer, following its co-founder's arrest last month on federal fraud charges.
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April 02, 2025
Trump Media Refiles President's Shares For Potential Sale
Trump Media and Technology Group Corp. on Wednesday filed papers to reregister for sale some 114 million shares held by President Donald Trump worth more than $2 billion, though the company says there are no imminent plans to sell the shares.
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April 02, 2025
Insurer Says $9M OpenText Merger Settlement Not Covered
An insurer said it is not obligated to contribute to a $9 million settlement in a shareholder class action stemming from Covisint's 2017 merger with software company OpenText, telling a Michigan federal court that the settlement does not constitute a covered loss.
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April 02, 2025
Opendoor To Settle Shareholders' Real Estate Tech Suit
Investors in real estate firm Opendoor Technologies Inc. said in a court filing Wednesday that they've struck a deal to end a lawsuit accusing the company of overhyping its pricing algorithm software prior to going public in a reverse merger with a special-purpose acquisition company.
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April 02, 2025
SEC Wins $12.5M Judgment On Assets Tied To Fugitive Trader
The U.S. Securities and Exchange Commission can recoup a $12.5 million supplemental enrichment judgment from frozen assets tied to a fugitive trader accused of funneling $67 million from his employer Oak Management Corp. to himself, his companies and his relatives, a Connecticut federal judge has ruled.
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April 02, 2025
Endeavor-Silver Lake Deal Sparks Over $1B In Appraisal Suits
A growing number of investors in recently taken-private sports and entertainment giant Endeavor Group Holdings have sued in Delaware's Court of Chancery for a post-deal appraisal of more than $1 billion in stock based on the deal price as of Wednesday, challenging the $27.50 per share paid by private equity firm Silver Lake.
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April 02, 2025
BakerHostetler Adds Ex-Federal Prosecutor As Partner
A former assistant U.S. attorney for the Northern District of Illinois has joined BakerHostetler in its Chicago office as a partner in the firm's litigation practice group, where he will focus on white collar matters, internal investigations and civil litigation.
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April 02, 2025
Longtime Philly Federal Prosecutor Rejoins Berger Montague
A former assistant U.S. attorney has returned to Berger Montague's Philadelphia office after more than 25 years, with plans to continue fighting on behalf of consumers and investors who have been wronged.
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April 02, 2025
Davis Polk, Skadden Lead Stablecoin Issuer Circle's IPO Filing
Venture-backed stablecoin issuer Circle Internet Group Inc. is moving forward with its long-awaited initial public offering amid expectations of favorable regulatory policies for crypto firms, represented by Davis Polk & Wardwell LLP and underwriters' counsel Skadden Arps Slate Meagher & Flom LLP.
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April 02, 2025
Davis Wright Welcomes Longtime Jones Day Finance Atty
Davis Wright Tremaine LLP announced Tuesday that it has hired a longtime Jones Day attorney focused on advising investment management industry participants, praising his decades of experience helping clients navigate U.S. federal securities laws.
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April 02, 2025
Feds Drop FCPA Case Against Ex-Cognizant Execs
The federal government on Wednesday moved to dismiss its Foreign Corrupt Practices Act case against two former Cognizant Technology Solutions Corp. executives, ending a long-running case that had been stalled by President Donald Trump's executive order curtailing bribery prosecutions and another now-rescinded presidential decree targeting Paul Weiss Rifkind Wharton & Garrison LLP, which had been representing one of the defendants.
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April 02, 2025
Law Profs Back Cert. Reversal In Boeing Stock-Drop Fight
Law professors and former U.S. Securities and Exchange Commission officials urged the Fourth Circuit to undo class certification for Boeing investors who accused the company of overstating the safety of its 737 Max fleet, calling the certification order a "master class" in misinterpreting precedent.
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April 02, 2025
Norfolk Southern Investors Appeal Train Derailment Ruling
Shareholders of railroad operator Norfolk Southern Corp. have gone to the Second Circuit seeking to revive a proposed class action accusing the company of making false claims about its commitment to safety ahead of a 2023 derailment and toxic chemical spill in East Palestine, Ohio.
Expert Analysis
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.
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Litigation Funding Disclosure Debate: Strategy Considerations
In the ongoing debate over whether courts should require disclosure of litigation funding, funders and plaintiffs tend to argue against such mandates, but voluntarily disclosing limited details about a funding arrangement can actually confer certain benefits to plaintiffs in some scenarios, say Andrew Stulce and Marc Cavan at Longford Capital.
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Understanding Risks Of Celebrities 'Hawking' Crypto Tokens
Prominent social media personality Haliey Welch was recently sued over the promotion and sale of the Hawk Tuah cryptocurrency memecoin, underscoring the importance of public figures conducting due diligence to verify they aren't endorsing a token that is in fact a security, say attorneys at Sheppard Mullin.
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Top Considerations For Insurance Companies In 2025
As insurance industry participants look to plan for the year, regulatory changes, climate-related challenges, the ongoing effects of social inflation and the potential for significant mergers and acquisitions will be among the key items for insurer boards and management to have on their radar, say attorneys at Debevoise.
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Del. Dispatch: Lessons From Failed Albertsons-Kroger Merger
The allegations in Albertsons' lawsuit against Kroger following the grocery stores' blocked merger demonstrate how a target company can best ensure that a buyer timely and effectively complies with its obligations to pursue the necessary regulatory approvals for a deal, say attorneys at Fried Frank.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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Future Of Crypto-Asset Classification Is In 2nd Circ.'s Hands
A definitive ruling from the Second Circuit in a rare interlocutory appeal in the U.S. Securities and Exchange Commission's ongoing court battle with Coinbase could finally establish clear guidelines on the classification of digital assets, influencing how they are regulated and traded in the U.S., say attorneys at Manatt.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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More Environmental Claims, More Greenwashing Challenges
As companies prepare for the 2025 greenwashing landscape, they should take heed of a D.C. appellate decision that shows that environmental claims are increasingly subject to attack and provides plaintiffs with a playbook for challenging corporate claims of sustainability, say attorneys at Sidley.
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And Now A Word From The Panel: How MDLs Fared In 2024
A significant highlight of the Judicial Panel on Multidistrict Litigation's practice during 2024 was the increase in the percentage of new MDL petitions granted by the panel, with 25 granted and only eight denied — one of the highest grant rates in years, says Alan Rothman at Sidley.
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Assessing Gary Gensler's Legacy At The SEC
Gary Gensler's tenure as U.S. Securities and Exchange Commission chair is defined by a record of commonsense regulation in some areas and social activism in others, and by increasing judicial skepticism about the SEC's authority to fulfill its regulatory, enforcement, administrative law and adjudicatory functions, say attorneys at Arnold & Porter.
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Calif. Cannabis Decision Deepens Commerce Clause Divide
In Peridot Tree v. Sacramento, the Eastern District of California joined a growing minority of courts that have found the dormant commerce clause inapplicable to state-regulated marijuana, and the Ninth Circuit will soon provide important guidance on this issue, say attorneys at Perkins Coie.
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Takeaways From DOJ Fraud Section's 2024 Year In Review
Attorneys at Paul Weiss highlight notable developments in the U.S. Department of Justice Fraud Section’s recently released annual report, and discuss what the second Trump administration could mean for enforcement in the year to come.
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Recent SEC Actions Highlight Importance Of Filing Form D
The U.S. Securities and Exchange Commission's enforcement action against three companies last month for failing to timely file Form D is an unprecedented step that should put an end to Regulation D issuers' views that filing these forms is a technical requirement or somewhat voluntary, says Patrick McCloskey at McCloskey Law.
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The 7th Circ.'s Top 10 Civil Opinions Of 2024
Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2024, and explain how they may affect issues related to mass arbitration, consumer fraud, class certification and more.