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Securities
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March 05, 2025
Wyo. Firm's 'Classic' Ponzi Scheme Made $92M, Investors Say
A group of would-be investors has filed suit against a purported investment management company and associated entities and individuals, alleging they were taken in by a "classic Ponzi scheme" that raked in at least $92 million from its victims.
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March 05, 2025
Coinbase Investor Drops Direct Listing Suit After Slack Ruling
A Coinbase investor Wednesday dropped a proposed class action accusing the cryptocurrency platform and its top brass of offering false and misleading materials that caused its stock price to plummet following the company's debut with an $86 billion valuation, after the Ninth Circuit tossed a similar case against Slack Technologies.
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March 05, 2025
NJ US Atty Says FCPA Case Delay Pauses Speedy Trial Clock
The adjournment of the government's Foreign Corrupt Practices Act case against two former Cognizant Technology Solutions Corp. executives should stop the Speedy Trial Act clock because the case needs a "fulsome review" in light of the pause in FCPA enforcement, New Jersey's freshly minted top federal prosecutor told a judge Wednesday.
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March 05, 2025
Chancery Mulls Amicus Bid, TRO In Paramount Merger Battle
Backers of a $13.5 billion offer for Paramount Global asked Wednesday for clearance to chime in on a Delaware Chancery Court stockholder challenge to the company's proposed $8 billion, allegedly conflicted sale to Skydance Media, arguing that a board special committee never gave the higher bid proper consideration.
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March 05, 2025
US Looks For Pause In PetroSaudi $380M Seizure Suit
The United States has asked a California federal court to stay its suit to seize part of a $380 million arbitral award issued to a PetroSaudi unit, saying the civil case is up in the air because the oil producer's sole owner was convicted in August in Swiss criminal court.
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March 05, 2025
FINRA Fines NJ Firm, Suspends AML Compliance Officer
The Financial Industry Regulatory Authority has fined Network 1 Securities and suspended its anti-money laundering compliance officer over their alleged failure to design a reasonable compliance program to prevent money laundering.
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March 05, 2025
Feds Allege Vast Overseas Insider Trading Scheme
Two foreigners are facing criminal charges and civil securities fraud claims for allegedly masterminding a multinational, yearslong insider trading scheme that generated millions of dollars in illicit profits by trading on leaked information ahead of business developments.
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March 05, 2025
SEC Defends 'Follow-On' Action From Post-Jarkesy Challenge
The U.S. Securities and Exchange Commission is defending its ability to pursue industry bars in its administrative court, telling a Washington, D.C., federal judge that a recent U.S. Supreme Court decision limiting the use of in-house courts does not prevent the agency from booting a father and son duo from the investment advisory industry.
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March 05, 2025
SEC Asks To Toss Subpoena Suit Against Telehealth Co.
The U.S. Securities and Exchange Commission asked a New York federal judge Wednesday to dismiss its suit aimed at forcing a weight-loss-focused telehealth company to comply with a subpoena, saying the company has since provided the requested documents and otherwise complied with the subpoena.
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March 05, 2025
DOJ's Absence Felt At ABA Conference On White Collar Crime
Officials from the U.S. Department of Justice were conspicuously absent Wednesday from the American Bar Association's annual white collar crime conference, leaving organizers scrambling to fill empty panel seats and practitioners guessing as to what the Trump administration's enforcement priorities will be.
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March 05, 2025
Biotech Co. Maravai Hit With Investor's Internal Controls Suit
Health research tools company Maravai LifeSciences Holdings Inc. has been hit with a proposed shareholder class action alleging it failed to report that it had issues with its internal reporting controls ahead of its announcement that an inaccurate report led to the misallocation of $3.9 million.
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March 05, 2025
Del. Corporate Law Bill Poses 'Grave Risk,' Plaintiffs' Firms Say
Five of Delaware's most active corporate litigation plaintiffs' firms have branded pending legislation aimed at curbing stockholder suits as a "dangerous and radical" measure that attacks the state's courts and will put Delaware's nationally known incorporation franchise "at grave risk."
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March 04, 2025
Avalara Investor Asks 9th Circ. To Revive $8B PE Buyout Suit
An Avalara shareholder urged the Ninth Circuit on Tuesday to revive a proposed securities class action alleging the tax software company duped investors into approving a "deficient" $8.4 billion private equity buyout, arguing the trial court erred in finding Avalara's statements tied to "numerically specific metrics" weren't false or misleading.
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March 04, 2025
Chinese Theme Park Co. Can't Nix Investors' 'Hellscapes' Suit
A California federal judge will allow investors' securities fraud claims against a Chinese amusement park operator to proceed, finding they plausibly claimed that the company inflated visitor numbers and financials for its park, causing an 89% stock price decline when the truth was eventually revealed.
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March 04, 2025
Agencies Have 'Ultimate' Authority Over Firings, OPM Says
The Office of Personnel Management on Tuesday issued a revised version of its January memo directing agency heads to identify all probationary employees, adding a disclaimer that OPM "is not directing agencies to take any specific performance-based actions" and that agencies "have ultimate decision-making authority."
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March 04, 2025
Semiconductor Co. Faces Suit Over Apple Biz Loss, AI Hype
Semiconductor maker Skyworks Solutions Inc. was hit Tuesday with a proposed investor class action alleging it hurt investors by downplaying the risks posed by the loss of business from iPhone maker Apple, a major customer, and overplaying the strength of artificial intelligence to its business.
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March 04, 2025
Blockchain Org. Wins $3.5M Fees From Trader's Seized Assets
Crypto project the ICON Foundation is set to receive $3.5 million in attorney fees and costs after it successfully turned the tables on a user who sued the project after it took action to freeze millions of tokens he created by exploiting a bug in the project's software.
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March 04, 2025
EV Co. Lucid's Brass Face Investor's Production Capacity Suit
Executives and directors of electric vehicle manufacturer Lucid Group Inc. have been hit with a proposed shareholder derivative suit in Delaware federal court alleging they concealed the extent of production issues plaguing the company in order to inflate share prices.
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March 04, 2025
Intel Beats Investor Suit Over 'Foundry' Losses, For Now
Intel Corp. has beaten a proposed securities class action accusing it of misleading investors about the financial health of its so-called foundry segment, with the court finding Intel made all required disclosures regarding the segment's performance.
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March 04, 2025
NJ Judge Nixes Derivative Suit Over $38M Tech Co. Spinoff
Top brass of a material-handling-equipment maker and the company's controlling shareholder no longer face a shareholder derivative action alleging that they breached their fiduciary duties with a plan to spin off assets to benefit the company's board chair.
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March 04, 2025
Bored Ape NFT Maker, Crypto Co. Say SEC Threats Are Over
The crypto arm of trading firm DRW Holdings LLC and the company behind the celebrity-endorsed non-fungible token project known as the Bored Ape Yacht Club say that they are the latest in a string of digital asset firms to see the back of the U.S. Securities and Exchange Commission.
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March 04, 2025
PBMs Ask 8th Circ. To Pause FTC's Insulin Pricing Case
Caremark Rx, Express Scripts and OptumRx have asked the Eighth Circuit to pause the Federal Trade Commission's in-house case accusing the pharmacy benefit managers of artificially inflating insulin prices as they push their constitutional claims against the agency.
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March 04, 2025
Chancery Finds Recent Precedent Backs Tesla's Texas Jump
Elon Musk and Tesla on Monday beat a challenge in Delaware's Court of Chancery to the company's charter move to Texas, with fewer than two-thirds of shareholders approving, as the court invoked an opinion issued in November when a vice chancellor opened the door to The Trade Desk's exit to Nevada.
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March 04, 2025
UScellular, Investors Settle Suit Over Postpaid Phone Biz
An Illinois federal judge said Monday that the parties in a shareholder suit accusing UScellular and its parent company of misleading investors about the health of their postpaid mobile phone segment have reported that they have reached a settlement in the case.
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March 04, 2025
Colo. Biotech, Founders Owe SEC $14.3M Over Fraud Claims
A Colorado federal judge has ordered a biotech startup and two of its founders to pay the U.S. Securities and Exchange Commission roughly $14.3 million and barred them from serving as officers and directors of public companies after finding that they fraudulently raised over $10 million by overstating their own investments in the company.
Expert Analysis
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The Tides Are Changing For Fair Access Banking Laws
The landscape of fair access banking laws, which seek to prevent banks from denying services based on individuals' ideological beliefs, has shifted in the last few years, but a new presidential administration provides renewed momentum for advancing such legislation against the backdrop of state efforts, say attorneys at Latham.
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Imagine The Possibilities Of Openly Autistic Lawyering
Andi Mazingo at Lumen Law, who was diagnosed with autism about midway through her career, discusses how the legal profession can create inclusive workplaces that empower openly autistic lawyers and enhance innovation, and how neurodivergent attorneys can navigate the challenges and opportunities that come with disclosing one’s diagnosis.
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A Halftime Analysis Of DOJ's Compensation Pilot Program
The U.S. Department of Justice appears to consider the first half of its three-year pilot program on compensation incentives and clawbacks to be proceeding successfully, so companies should expect prosecutors to emphasize the program and other compliance-related considerations early in investigations, say attorneys at Debevoise.
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Kiromic SEC Order Shows Importance Of Self-Reporting
The U.S. Securities and Exchange Commission's recently filed settled charges against Kiromic BioPharma illustrate the critical intersection between U.S. Food and Drug Administration regulatory processes and investor disclosures under the securities laws, and showcase how responding promptly to internal whistleblower reports may reap benefits, say attorneys at Arnold & Porter.
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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.