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Securities
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March 26, 2025
Drugmaker Execs Hid Approval Process Roadblocks, Suit Says
A Sage Therapeutics Inc. investor sued the company's executives in New York federal court Wednesday alleging they hid significant setbacks affecting the regulatory approval for its drug candidates intended to treat mood disorders and other conditions including Parkinson's and Alzheimer's diseases.
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March 26, 2025
Trump Pardons Ex-Hunter Biden Biz Pal For Tribal Bond Fraud
President Donald Trump pardoned a former business partner of Hunter Biden who was convicted of helping to execute a $60 million bond scam against a South Dakota tribal corporation, saying he believes the former venture capital and private equity fund investor was treated unfairly.
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March 26, 2025
Par Funding's Ex-CEO Gets 15½ Years For Racketeering, Fraud
Par Funding ex-CEO Joseph LaForte was sentenced to 15½ years in prison Wednesday for his role in running a $404 million racketeering conspiracy that prosecutors said involved him bilking the cash advance business's investors and threatening its borrowers with violence if they didn't pay up.
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March 26, 2025
Conn. Judge Sides With Viks In Deutsche Bank Asset Price Suit
A Connecticut state court judge handed Norwegian billionaire Alexander Vik and his daughter a win in Deutsche Bank AG's suit claiming they harmed the price of assets that were being sold to partially satisfy a $243 million debt, issuing a ruling that limited the claims that the bank could bring in the future.
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March 26, 2025
Del. Justices Back Axing Suit Over $3B AstraZeneca Viela Sale
The Delaware Supreme Court on Wednesday upheld without elaboration the dismissal of a Court of Chancery lawsuit accusing AstraZeneca PLC of lining up a conflicted, underpriced $3 billion sale of clinical stage biopharmaceutical venture Viela Bio Inc.
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March 26, 2025
Toronto Exchange Says Court In Texas Can't Hear TM Suit
The Toronto Stock Exchange says a Texas federal court lacks jurisdiction over the Texas Stock Exchange's trademark lawsuit, telling the court it only submitted a cease-and-desist letter to stop the nascent stock exchange from using allegedly similar marks.
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March 26, 2025
Del. Justices Seek Reasons To Revive Raytheon Incentive Suit
Delaware's chief justice pressed a stockholder attorney Wednesday to provide more justification for resurrecting a Chancery Court suit claiming the company didn't seek stockholder approval for allegedly unfair changes to a multimillion-dollar RTX Corp. incentive plan.
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March 26, 2025
Willkie Securities Enforcement Leader Joins Simpson Thacher
A former co-chair of Willkie Farr & Gallagher LLP's securities enforcement practice has moved to Simpson Thacher & Bartlett LLP in Washington, D.C., Simpson Thacher said Wednesday.
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March 26, 2025
Governor Quickly Signs Delaware Corporate Law Revision Bill
Delaware's governor has promptly signed into law closely watched legislation that has been described as an overhaul of the First State's corporation law.
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March 26, 2025
Ex-GE Exec Gets 7 Years For Fraud In $1B Angola Energy Deal
A Manhattan federal judge hit a former GE Power executive with seven years in prison Wednesday, after a jury convicted him of forgery and taking a $5 million kickback while working on a $1.1 billion deal in his native Angola.
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March 26, 2025
Morgan Lewis Welcomes Another Former SEC Atty
Morgan Lewis & Bockius LLP has added another former senior U.S. Securities and Exchange Commission attorney to its ranks, announcing Wednesday that a special counsel for the commission's Division of Corporation Finance has joined its Washington, D.C., office.
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March 25, 2025
Elliott Says Phillips 66 Aims To Thwart Its Proxy Contest
Elliott Investment Management on Tuesday accused Phillips 66 and its board of directors in Delaware Chancery Court of reducing the number of board seats up for election at the energy conglomerate's next annual shareholder meeting in order to thwart the hedge fund's impending proxy contest.
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March 25, 2025
Ex-Masimo CEO Slams Bid To DQ His Hueston Hennigan Attys
Joe E. Kiani, founder and ex-CEO of Masimo Corp., has urged the Delaware Chancery Court to reject the medical technology company's bid to disqualify his attorneys from Hueston Hennigan LLP in its lawsuit over Kiani's quest for a $450 million payout, saying the request is being "weaponized for tactical gain."
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March 25, 2025
Fix It Early, Do Your Homework: Bank Legal Chiefs Share Tips
Deutsche Bank's chief legal officer advised firms facing regulatory investigations to begin the remediation process sooner rather than later in a Tuesday panel featuring the legal chiefs for some of the world's biggest banks discussing lessons they've learned and their relationships with outside counsel.
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March 25, 2025
Fintech DLocal Beats Investors' Suit Over IPO
A New York state court judge has dismissed claims against fintech firm dLocal and its underwriters in a proposed class action alleging the company misstated a key financial metric and misrepresented the state of its financial controls in advance of its June 2021 initial public stock offering that saw the company valued at nearly $9.5 billion.
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March 25, 2025
Chipmaker Supplier Overhyped China Biz, Investor Claims
Semiconductor industry supplier Ultra Clean Holdings Inc. faces a proposed investor class action alleging that during 2024 it touted outsize demand in its Chinese market, ultimately hurting investors when it later acknowledged "demand softness" as it reported its 2024 full-year revenue and offered financial projections for the start of 2025.
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March 25, 2025
FINRA Fines Firm, CCO For Pandemic-Era Oversight Lapses
The Financial Industry Regulatory Authority has fined broker-dealer United First Partners LLC and fined and suspended its chief compliance officer to settle claims they failed to implement a sufficient system to monitor the firm's representatives' outside business activities, and completely failed to do so during the pandemic.
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March 25, 2025
Industry Backs BlackRock Over States' 'Crippling' Coal Suit
Two leading financial industry groups are throwing their support behind BlackRock Inc. and two other asset managers fighting a state-backed antitrust suit over their coal company investments, with one group arguing that forcing the firms to divest would have "crippling effects" for tens of millions of American investors.
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March 25, 2025
GOP-Led House Committee Mulls Bills To Ease Capital Raising
The U.S. House of Representatives Financial Services Committee on Tuesday debated bills that would ease rules governing private and public securities offerings, marking Congress' latest push to deregulate capital markets under President Donald Trump's second term.
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March 25, 2025
Edison Shareholder Latest To Sue Utility Brass Over Eaton Fire
Southern California's Eaton Fire could have been prevented had directors and officers of Southern California Edison's parent company not breached their duty to mitigate fire risks, especially in light of the public utility's "unfortunate long history" of improperly maintaining equipment, according to a new derivative shareholder filed in California state court.
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March 25, 2025
FDIC Will Seek To 'Eradicate' Its Use Of Reputation Risk
The Federal Deposit Insurance Corp. plans to "eradicate" the concept of reputation risk from its oversight of banks and is working to take its approach to digital assets in "a new direction," the agency's acting chief has told Congress.
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March 25, 2025
FINRA President Hints At Offloading Arbitration Oversight
The president of the Financial Industry Regulatory Authority said Tuesday that he's considering whether another entity should take up the brokerage regulator's arbitration oversight, questioning whether it's an appropriate function for FINRA to continue running.
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March 25, 2025
AI Clean Energy Co.'s Execs Get Shareholder Suit Axed
Leaders of artificial intelligence-driven clean energy company Stem Inc. have avoided, for now, a suit accusing them of misleading investors ahead of a merger, with the court ruling the suit is a "puzzle pleading" that does not sufficiently justify why certain statements should be considered fraudulent.
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March 25, 2025
Delaware Legislature Passes Divisive Corporate Law Rework
Delaware lawmakers overwhelmingly approved and sent to the state's governor Tuesday legislation that eases restrictions on some conflicted corporate acts and limits some stockholder document inspection demands, after House members overwhelmingly shot down five amendments aimed at limiting the measure's reach.
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March 25, 2025
Pension Seeks To Opt Class Out Of Cutera Ch. 11 Releases
A pension fund heading up a class action against skin care technology group Cutera has urged a Texas bankruptcy court to find the shareholder has authority to opt all class members out of the company's Chapter 11 plan.
Expert Analysis
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Comparing 2 Pending Bills To Regulate Stablecoins
Alexandra Steinberg Barrage at Troutman analyzes the key similarities and differences between two payment stablecoin proposals currently pending in Congress — the STABLE and GENIUS acts — as both chambers are forming a working group to deliver a clear regulatory framework for digital assets and bipartisan agreement appears within reach.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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How Private Securities Suits Complement SEC Enforcement
U.S. Securities and Exchange Commission enforcement is vital to the healthy functioning of markets, but government enforcement alone is not enough to ensure meaningful monetary recoveries for investor losses due to securities law violations, say attorneys at Bernstein Litowitz.
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The Case For Compliance During The Trump Administration
Given the Trump administration’s shifting white collar enforcement priorities, C-suite executives may have the natural instinct to pare back compliance initiatives, but there are several good reasons for companies to at least stay the course on their compliance programs, if not enhance them, say attorneys at Riley Safer.
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Corp. Transparency Act's Future Under Treasury's Bessent
The Corporate Transparency Act’s ultimate fate faced uncertain terms at the end of 2024, but new U.S. Department of the Treasury Secretary Scott Bessent's statements and actions so far demonstrate that he does not intend to ignore the law, though he may attempt to make modifications, say attorneys at Taylor English.
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A Look At A Possible Corporate Transparency Act Exemption
Attorneys at Kirkland offer a deep dive into the application of the Corporate Transparency Act's reporting requirements specifically to U.S.-domiciled co-issuers in typical collateralized loan obligation transactions, and consider whether such issuers may be able to assert an exemption from the CTA's reporting requirements.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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What Banks Need To Know About Trump's Executive Orders
While the numerous executive orders and memos from the last few weeks don't touch on many of the issues the banking industry expected the Trump administration to address, banks still need to pay attention to the flurry of orders from strategic, compliance and operational perspectives, say attorneys at Arnold & Porter.
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How SDNY US Atty Nom May Shape Enforcement Priorities
President Donald Trump’s nominee for U.S. attorney in the Southern District of New York, former U.S. Securities and Exchange Commission Chair Jay Clayton, will likely shift the office’s enforcement priorities, from refining whistleblower policies to deemphasizing novel prosecutorial theories, say attorneys at Cohen & Gresser.
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4 Potential Effects Of 3rd Circ.'s Coinbase Ruling
The Third Circuit's recent landmark decision in Coinbase v. U.S. Securities and Exchange Commission that the SEC's refusal to engage in rulemaking to clarify its stance on crypto enforcement was "insufficiently reasoned" could have wide-ranging impacts, including on other cases, legislation and even the SEC's reputation itself, says Daniel Payne at Cole-Frieman.
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What Companies Should Consider During FCPA Pause
While waiting for updated guidance on Foreign Corrupt Practices Act criminal investigations after a Feb. 10 executive order froze FCPA enforcement, companies should consider the implications of several possible policy shifts, rather than relaxing internal oversight of questionable business practices, say attorneys at Simpson Thacher.
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Takeaways From CFTC's Private Fund Rule Amendments
The U.S. Commodity Futures Trading Commission's recently adopted amendments to Rule 4.7 of the Commodity Exchange Act ensure that investors in the complex derivatives markets receive relevant and comprehensive information, and further align suitability criteria for investors in private funds, says Rita Molesworth at Willkie.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Rethinking How To Engage Shareholders, Activists Via Proxies
This proxy season, companies should consider visually driven proxy statements that highlight the board's strengths, the alignment between executive compensation and performance, and a commitment to sustainability and risk management to earn the support of investors and fend off hostile acquirers, say Craig Clay and Ron Schneider at DFIN.