Securities

  • September 24, 2024

    Moderna Execs Hyped Ineffective RSV Vax, Suit Says

    Officers and directors of Moderna misled investors about the efficacy of its RSV vaccine, causing share prices to dive when it was revealed in June to have only about a 50% efficacy rate after 18 months, a new shareholder suit alleges.

  • September 24, 2024

    Amazon Shareholders Try To Save Suit Over Blue Origin Deal

    Stockholders who sued Amazon founder Jeff Bezos and the company's board in Delaware's Court of Chancery for "blindly" approving a multibillion-dollar, Bezos-controlled launch contract for a new satellite-based internet service struggled for enough altitude Tuesday to clear defense dismissal challenges.

  • September 24, 2024

    SEC Says Blockchain Cybersecurity Co. Ran $5M Fraud

    The U.S. Securities and Exchange Commission sued a former blockchain cybersecurity and supply chain management company and its founder, alleging they deceived investors and fraudulently raised more than $5 million by falsely claiming that the company had secured contracts and that it expected to generate millions in revenue.

  • September 24, 2024

    Norfolk Southern Says Stock Drop Suit Based On 'Hindsight'

    Norfolk Southern Corp. is urging a Georgia federal court to throw out a proposed class action alleging it duped stockholders by misleading them about the safety of its operations, leading to a stock drop after last year's derailment in East Palestine, Ohio, saying the claims are a bid to capitalize in hindsight on the crash.

  • September 24, 2024

    RTX Denies Securities Fraud In Engine Crack Class Action

    RTX Corp. faced significant challenges and spent billions of dollars after a subsidiary's jet engines developed "microcracks," but it did not commit securities fraud by lying or withholding relevant information from investors, the aerospace giant said in seeking dismissal of a class action from Connecticut federal court.

  • September 24, 2024

    Star Witness Against Bankman-Fried Gets 2 Years In FTX Case

    A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."

  • September 24, 2024

    Medical Marijuana Co. Investors Seek Default In $200K Suit

    A pair of would-be investors have asked a Georgia federal court to enter a default judgment against purported medical marijuana company Mississippi Green Oil LLC and one of its members, saying they failed to respond to a complaint seeking the long overdue repayment of their $200,000 investment.

  • September 24, 2024

    Bradley Hires Real Estate And Corporate Partner In Miss.

    Bradley Arant Boult Cummings LLP hired ex-Balch & Bingham LLP partner M. Patrick Everman as a partner for its real estate and corporate and securities teams in its office in Jackson, Mississippi, the firm announced.

  • September 24, 2024

    Conn. Judge Sends Law Firm's Trade Secrets Case To Fla.

    A Connecticut boutique law firm must go to Florida if it wants to continue pursuing its trade secrets case against a consultant it accused of making off with some of its confidential information because the Constitution State is an improper venue, a federal judge has ruled.

  • September 24, 2024

    2nd Circ. Partly Revives Suit Over $18.5B Telehealth Deal

    The Second Circuit on Tuesday partially revived a suit against telehealth company Teladoc Health Inc. brought by investors who claim they were misled about the status of its integration with Livongo following their $18.5 billion merger.

  • September 24, 2024

    SEC, CFTC Issue $118M Fines In Latest Text Message Actions

    Federal regulators said Tuesday that the Canadian Imperial Bank of Commerce and nearly a dozen other financial firms have agreed to pay fines totaling nearly $120 million to settle recordkeeping violations tied to employee use of unapproved communication methods like text messages to conduct business.

  • September 23, 2024

    Chamber Says X Ruling Boosts Bid To Nix Calif. Climate Laws

    The U.S. Chamber of Commerce and the state of California have filed competing briefs on how a recent Ninth Circuit decision blocking parts of a social media law applies to the state's corporate climate disclosure rules, with the Chamber arguing the ruling reinforces how the latter violate the First Amendment.

  • September 23, 2024

    3rd Circ. Probes SEC's 'Close To Vacuous' Reply To Coinbase

    Members of a Third Circuit panel on Monday pressed the U.S. Securities and Exchange Commission on its brief denial of crypto exchange Coinbase's request for rulemaking around digital assets, digging into how much of an explanation the agency owes the industry about its decision to forego setting rules for now.

  • September 23, 2024

    Credit Suisse Can't Ditch Investor Fraud Suit, But PwC Can

    A New York federal judge has declined to fully dismiss a proposed class action alleging Credit Suisse misled investors about its condition in the run-up to its collapse and takeover by UBS, ruling that a narrow part of the litigation can proceed while much of it — including claims against PwC — must go.

  • September 23, 2024

    Crypto Miners Must Keep Fighting SEC's $18M Fraud Claims

    A Utah federal judge on Monday refused to throw out the U.S. Securities and Exchange Commission's suit accusing two Utah residents of running an $18 million crypto fraud scheme, rejecting their arguments that the transactions at the heart of the dispute do not involve securities subject to the SEC's regulation.

  • September 23, 2024

    Coinbase Brings On Ex-Citadel Legal Chief With SEC Chops

    Coinbase announced on Monday it has hired Ryan VanGrack to serve as its vice president of legal, where he will be overseeing civil litigation, regulatory probes, employment and intellectual property matters for the crypto exchange after spending seven years with Citadel Securities as general counsel.

  • September 23, 2024

    Mallinckrodt Brass Can't Avoid Investor Suit Over 2nd Ch. 11

    A New Jersey federal judge ruled Monday that senior leaders of drugmaker Mallinckrodt cannot escape a lawsuit brought by shareholders alleging the company tricked them into thinking it had recovered from bankruptcy and would make a $200 million payment to opioid claimants, finding the investors sufficiently pleaded securities law violations.

  • September 23, 2024

    Petco, Shareholders Battle In Chancery Over Controller Clout

    Attorneys for Petco Health & Wellness Co. Inc. face an "uphill battle" in branding as "wrongly decided" a landmark Court of Chancery ruling earlier this year that struck down an agreement giving a company's controlling stockholder board-trumping power, Delaware's chancellor cautioned on Monday.

  • September 23, 2024

    Bipartisan Senate Bill Would Extend Pandemic IG's Life

    A bipartisan group of senators introduced a bill Monday to extend the pandemic watchdog five years beyond its March sunset, which the office has been asking for continuously.

  • September 23, 2024

    Adviser To Pay SEC $1.8M Over Temu Parent Co. Short-Selling

    Private fund adviser Centerline Investment Management on Monday agreed to pay nearly $1.8 million to settle U.S. Securities and Exchange Commission charges that it illegally short-sold shares of PDD Holdings Inc., the parent of Chinese e-commerce giant Temu, within a restricted period.

  • September 23, 2024

    CFTC Fines Piper Sandler $2M In Latest Text Messaging Action

    The U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission both announced settlements Monday in their ongoing probe into the financial industry's use of personal devices to discuss company business, with the CFTC issuing a fine against a subsidiary of Piper Sandler & Co. while the SEC said that a cooperative investment adviser would not have to pay anything. 

  • September 23, 2024

    DOJ Adds AI Risk To Corporate Compliance Program

    The U.S. Department of Justice's Criminal Division is now weighing how companies manage risk related to artificial intelligence and potentially stymie whistleblowers, one of several updates to the division's policies on evaluating corporate compliance programs announced by a senior official on Monday.

  • September 23, 2024

    SEC Scores $12M Judgment In Unregistered Dealer Case

    A Minnesota federal judge has ordered financial firm Carebourn Capital LP, its founder and an affiliated company to pay more than $12 million in disgorgement and prejudgment interest over U.S. Securities and Exchange Commission claims they made millions selling securities as unregistered dealers.

  • September 23, 2024

    Vanguard Agrees To Settle Investors' Tax Liability Suit

    Vanguard agreed to settle a proposed class action by investors who accused the company of violating its fiduciary duties when it triggered a sell-off of assets that left them with massive tax bills, according to a Pennsylvania federal court order Monday.

  • September 23, 2024

    Auto AI Co.'s $30M Settlement With Investors Gets Initial Nod

    An automotive software company's $30 million settlement to end an investor fraud class action won initial approval from a Boston federal judge on Monday.

Expert Analysis

  • Opinion

    Litigation Funding Disclosure Key To Open, Impartial Process

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    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.

  • Carbon Offset Case A Win For CFTC Enviro Fraud Task Force

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    An Illinois federal court's decision in Commodity Futures Trading Commission v. Ikkurty — earning the CFTC a sizeable monetary award that will likely incentivize similar enforcement pursuit — shows the impact of the commission's Environmental Fraud Task Force, say attorneys at Steptoe.

  • RealPage Suit Shows Growing Algorithm, AI Pricing Scrutiny

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    The U.S. Department of Justice's suit against RealPage for helping fix rental rates, filed last week, demonstrates how the use of algorithmic and artificial intelligence tools to assist with pricing decisions is drawing increasing scrutiny and action across government agencies, and specifically at the Federal Trade Commission and the DOJ, say Andre Geverola and Leah Harrell at Arnold & Porter.

  • Whistleblowers Must Note 5 Key Differences Of DOJ Program

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    The U.S. Department of Justice’s recently unveiled whistleblower awards program diverges in key ways from similar programs at other agencies, and individuals must weigh these differences and look first to programs with stronger, proven protections before blowing the whistle, say Stephen Kohn and Geoff Schweller at Kohn Kohn.

  • What NFL Draft Picks Have In Common With Lateral Law Hires

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    Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.

  • Foreign Threat Actors Pose Novel Risks To US Tech Cos.

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    A recent bulletin jointly issued by several U.S. intelligence agencies warns technology startups and the venture capital community about national security risks posed by foreign threat actors, so companies interested in raising foreign capital should watch for several red flags, say Robert Friedman and Jacob Marco at Holland & Knight.

  • Open Questions 3 Years After 2nd Circ.'s Fugitive Ruling

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    The Second Circuit’s 2021 decision in U.S. v. Bescond, holding that a French resident indicted abroad did not meet the legal definition of a fugitive, deepened a circuit split on the fugitive disentitlement doctrine, and courts continue to grapple with the doctrine’s reach and applicability, say attorneys at Lankler Siffert.

  • Replacing The Stigma Of Menopause With Law Firm Support

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    A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.

  • 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.

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