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Securities
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November 05, 2024
Trump's Win Expected To Pare Back Gensler's SEC Agenda
The reelection of President Donald Trump will bring with it many big changes to the U.S. Securities and Exchange Commission, including a new chair who could set a more crypto- and business-friendly policy that would translate into a downtick in rulemaking and enforcement cases in comparison to outgoing President Joe Biden.
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November 05, 2024
Trump Has Official Immunity. What About His Aides?
Whether the U.S. Supreme Court's decision on presidential immunity extends to subordinates who follow a president's orders has become a more pressing question in the wake of Donald Trump's projected election win, according to legal experts.
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November 05, 2024
How Trump Can Quash His Criminal Cases
Donald Trump's projected victory at the polls also translates to a win in the courts, as the second-term president will have the power to end both of his federal criminal cases. And the U.S. Supreme Court's decision on presidential immunity would shield him from any consequences for ordering his charges to be dismissed, experts say.
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November 05, 2024
An Early Look At Trump's Supreme Court Shortlist
With former President Donald Trump projected to win the 2024 presidential election and the Republicans' success in securing the U.S. Senate majority, Trump may now get the chance to appoint two more justices to the U.S. Supreme Court, cementing the court's conservative tilt for decades to come.
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November 05, 2024
GOP's Senate Win Hands Future Of The Judiciary To Trump
Republicans were projected to take back the White House and Senate and possibly the House early Wednesday, putting the GOP in position to back Donald Trump's agenda and his slate of young, conservative judicial nominees.
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November 05, 2024
The Firms With An Inside Track To A New Trump Admin
Law firms that have represented Donald Trump and the Republican Party on everything from personal legal woes to election-related lawsuits could see the risks of that work pay dividends as Trump is projected to secure a second term in office.
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November 05, 2024
Trump Media Reports $19M Quarterly Loss On Election Day
The parent of projected Republican presidential winner Donald Trump's social media platform reported a $19.2 million quarterly loss in an Election Day filing Tuesday, the same day trading of its shares were halted three times because of volatility.
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November 05, 2024
SEC Beats Stockbroker Challenge To BSA Enforcement
A Utah federal judge on Tuesday tossed Scottsdale Capital Advisors' lawsuit accusing the U.S. Securities and Exchange Commission of wrongfully enforcing the suspicious activity reporting regulations under the Bank Secrecy Act, finding the microcap broker-dealer didn't show that the underlying enforcement action is subject to judicial review.
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November 05, 2024
FTX Says Convicted Former Exec Must Cough Up $99M
The bankruptcy estate of cryptocurrency exchange FTX has asked a Delaware federal bankruptcy court to order former executive Ryan Salame to relinquish $98.8 million in assets, according to an avoidance action filed Monday.
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November 05, 2024
Lululemon Brass Face Derivative Suit Over Inventory Issues
Officers and directors of activewear retailer Lululemon Athletica Inc. have been hit with a shareholder derivative suit alleging they concealed challenges including inventory allocation that ultimately hurt the company's sales.
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November 05, 2024
SEC Risk Alert Flags Investment Fund Oversight, Disclosures
The U.S. Securities and Exchange Commission's exams unit is flagging common issues among investment funds in recent years, including funds mischaracterizing how so-called ESG factors play into their investment strategies and chief compliance officers failing to submit certain reports to fund boards.
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November 05, 2024
Groups Lose Early Bid To Undo Calif. Climate Disclosure Laws
A California federal judge rejected the U.S. Chamber of Commerce and other business groups' attempt to block California's corporate climate disclosure rules before discovery, ruling Tuesday that discovery is needed for the court to answer whether the laws facially violate the First Amendment.
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November 05, 2024
Binance Says New SEC Complaint Suffers Same Old Flaws
Cryptocurrency exchange Binance told a Washington, D.C., federal judge the U.S. Securities and Exchange Commission can't continue to argue that secondary sales of digital assets are securities transactions in its enforcement suit against the trading platform after the regulator acquiesced that the tokens themselves aren't investment contracts.
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November 05, 2024
Bright Health Beats Investor Suit Over COVID-19 Costs
The health insurer previously known as Bright Health Group Inc. no longer faces a proposed investor class action after a Brooklyn federal judge found that the company's initial public offering risk disclosures hadn't deliberately misled investors about its anticipated costs amid the COVID-19 pandemic.
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November 05, 2024
Alerus Financial Can't Escape DOL's Stock Valuation Suit
An Idaho federal judge refused to toss the U.S. Department of Labor's suit against Alerus Financial alleging mismanagement of an employee stock ownership plan, but agreed to dismiss some claims against a Norco Inc. executive who sold more than $141 million of private company stock to the ESOP.
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November 05, 2024
New Fortress Energy Faces Investor Suit Over Outlook
New Fortress Energy was hit with a proposed investor class action in New York federal court alleging the natural gas company and its top brass misled investors about the company's growth and revenue outlook, which led to a stock drop once the truth came to light.
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November 05, 2024
Glazer Sues In Del. For Appraisal In $7.2B Squarespace Deal
Five funds of Glazer Capital LLC sued late Monday for Delaware Court of Chancery appraisal of the investment management firm's more than 2.8 million shares of website builder Squarespace Inc., seeking to better the company's $46.50 per share price for a recently closed take-private acquisition by interests of Permira Advisers LLC.
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November 05, 2024
Emerging Cos. Pro With SEC Background Returns To Latham
Latham & Watkins LLP is expanding its West Coast team, welcoming back an emerging companies expert who was a founding partner at Ketsal PLLC and worked for the U.S. Securities and Exchange Commission, and is now joining Latham as a partner in its San Francisco Bay Area offices.
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November 05, 2024
On The Ground: How Attorneys Safeguarded The Election
Attorneys worked tirelessly Tuesday to support citizens and election workers on the final day of voting in one of history's most contentious presidential contests.
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November 04, 2024
UK Stock Pumper Admits To $100M Market Manipulation Rap
A London-based trader on Monday admitted to his role in what prosecutors say was a $100 million multi-faceted international stock manipulation scheme that used a Swiss asset manager tied to numerous claims of securities fraud to secretly control and falsely inflate the stock of several microcap companies.
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November 04, 2024
Full 4th Circ. Asked To Hear Fraud Witness, Jury Issues
Two men convicted of investment fraud have asked the full Fourth Circuit to reconsider their appeal concerning a jury hidden from view of the public and accusers allowed to testify by deposition, saying a split panel blessed trial practices that were "unprecedented on multiple levels."
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November 04, 2024
SEC Must Prep For Legal Challenges To Regs, Watchdog Says
The U.S. Securities and Exchange Commission should prepare for more litigation over its rulemaking agenda and make sure its new regulations can pass judicial muster, particularly in light of budget constraints, the agency's inspector general warned in a Monday report.
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November 04, 2024
Security Tech Co. Evolv Misled Shareholders, Suit Claims
Security technology company Evolv Technologies Holdings Inc. has been hit with a proposed class action in Massachusetts federal court by a shareholder alleging the company reported inaccurate revenue for over two years because of weaknesses in its internal controls.
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November 04, 2024
Robinhood Users Denied Class Cert. In Order Flow Suit
A proposed class of Robinhood customers must run their expert's damages model before asking a California federal judge to weigh their class certification bid in litigation alleging that the investing platform failed to disclose financial interests affecting order flow on the platform.
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November 04, 2024
BofA Unit Escapes Trading Firm's Spoofing Suit For Now
An Illinois federal judge has tossed a trading firm's proposed class action claiming that a Bank of America unit manipulated markets for U.S. Treasury futures and options, ruling that the firm fails to allege actual damages, but giving it an opportunity to amend the suit.
Expert Analysis
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Opinion
Agencies Should Reward Corporate Cyber Victim Cooperation
The increased regulatory scrutiny on corporate victims of cyberattacks — exemplified by the U.S. Securities and Exchange Commission's case against SolarWinds — should be replaced with a new model that provides adequate incentives for companies to come forward proactively and collaborate with law enforcement, say attorneys at McDermott.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.
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How Transaction Lookbacks Can Guide Fintech Companies
As transaction lookbacks continue to be a key focus of enforcement actions, newer financial institutions like fintech companies should know they can benefit from proactively investigating their potential failure to identify suspicious activity, creating a compliance road map and building trust with regulators in the process, say attorneys at Jenner & Block.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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5 Ways Life Sciences Cos. Can Manage Insider Trading Risk
In light of two high-profile insider trading jury decisions against life sciences executives this year, public companies in the sector should revise their policies to account for regulators' new and more expansive theories of liability, says Amy Walsh at Orrick.
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Series
A Day In The In-House Life: Narmi GC Talks Peak Productivity
On a work-from-home day in August, Narmi general counsel Amy Pardee chronicles a typical day in her life in which she organizes her time to tackle everything from advising on products and contract negotiations to volunteering and catching up on the New York Times crossword.
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How Ripple Final Judgment Fits In Broader Crypto Landscape
The Southern District of New York's recent $125 million civil penalty levied in U.S. Securities and Exchange Commission v. Ripple will have a broad impact on the crypto industry as it was the first to hold that blind sales of digital assets are not securities, even if deemed securities in other circumstances, say attorneys at BakerHostetler.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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Series
After Chevron: SEC Climate And ESG Rules Likely Doomed
Under the U.S. Supreme Court's recent decision in Loper Bright, without agency deference, the U.S. Securities and Exchange Commission's climate disclosure and environmental, social and governance rules would likely be found lacking in statutory support and vacated by the courts, says Justin Chretien at Carlton Fields.
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Assessing Whether Jarkesy May Limit FINRA Prosecutions
The U.S. Supreme Court’s recent decision in Jarkesy v. U.S. Securities and Exchange Commission, holding that civil securities fraud defendants are entitled to jury trials, may cause unpredictable results when applied to Financial Industry Regulatory Authority prosecutions, say Barry Temkin and Kate DiGeronimo at Mound Cotton.
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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Amid SEC Rule Limbo, US Cos. Subject To ESG Regs In EU
Though the U.S. Securities and Exchange Commission is facing legal challenges to its climate-disclosure rulemaking, the implementation of the Corporate Sustainability Reporting Directive in the European Union will force U.S. companies to comply with exactly the kinds of ESG disclosures that are not yet mandated in the U.S., say attorneys at Squire Patton.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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6 Considerations To Determine If A Cyber Incident Is Material
The U.S. Securities and Exchange Commission's recent guidance on material cybersecurity incidents covers a range of ransomware scenarios, from a company paying a sum and regaining operations to recovering payment via cyberinsurance, but makes it clear that no single factor determines whether a cybersecurity incident is material, say attorneys at Troutman Pepper.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.