Securities

  • November 19, 2024

    Jury To Decide If Gemini's Bitcoin Statements Were False

    A New York federal judge has found that crypto exchange Gemini Trust Co. was the "maker" of alleged misrepresentations to the Commodity Futures Trading Commission about its plans to offer bitcoin futures contracts, but a jury will have to decide if the statements were materially false or misleading.

  • November 19, 2024

    Dentons Atty Owed No Duty In $54M Currency Swap, Jury Told

    A Hunton Andrews Kurth LLP partner on Tuesday defended the actions of a former Dentons attorney in a failed $54 million bolivar-to-dollars currency swap, telling jurors that she did not owe a duty to the Venezuelan attorney suing her for malpractice because she never represented him as his attorney. 

  • November 19, 2024

    SEC's $196M Win Revived After Judge Fixes 'Scrivener's Error'

    A Florida federal judge has granted a $196 million judgment against a group of fraudsters to the U.S. Securities and Exchange Commission after fixing what he called a "scrivener's error" in the original order that caused the Eleventh Circuit to overturn a part of the award in September.

  • November 19, 2024

    2 Firms To Rep Starbucks Investors Over 'Triple Shot' Strategy

    Robbins Geller Rudman & Dowd LLP and Keller Rohrback LLP will represent a proposed class of investors in litigation alleging Starbucks made overly positive projections for its so-called Triple Shot Reinvention strategy, hurting investors when its actual financial results did not bear out its optimism.

  • November 19, 2024

    AI School Tech Founder Stole $10M From Investors, DOJ Says

    The founder of AllHere Education Inc., a startup venture that sold artificial intelligence-powered chatbots to schools, is charged with fleecing investors out of nearly $10 million by lying about the company's revenue and using some of the money to pay for her wedding and a house, New York federal prosecutors announced Tuesday.

  • November 19, 2024

    Shaq Reaches $11M Deal With Astrals NFT Buyers

    Hall of Fame basketball player Shaquille O'Neal and the creators of the Astrals nonfungible token project have agreed to pay $11 million to settle a proposed securities class action with buyers of the tokens that O'Neal allegedly promoted.

  • November 19, 2024

    Cravath-Led Robinhood To Acquire TradePMR In $300M Deal

    Stock trading app Robinhood Markets Inc., advised by Cravath Swaine & Moore LLP, on Tuesday announced plans to buy registered investment adviser-focused custodial and portfolio management platform TradePMR, led by Stradley Ronon Stevens & Young LLP, in a cash-and-stock deal valued at $300 million.

  • November 19, 2024

    Undefined Terms Cinch Cloudera's Win In 'Cloudy' Fraud Suit

    The Ninth Circuit on Tuesday upheld the dismissal of a proposed class action against Cloudera Inc. alleging the data management and analytics company duped investors into buying stock at artificially inflated prices, saying the suit didn't substantiate its falsity claims with clear definitions for terms like "cloud native."

  • November 19, 2024

    Cuban Bank Can't Block Fund's €72M Debt Claim

    Cuba's former central bank can't block an offshore fund from suing it for over €72 million ($76.2 million) of unpaid sovereign debt because the lender authorized the assignment of the debt to the fund, a London appeals court ruled Tuesday.

  • November 19, 2024

    FDIC's Gruenberg To Exit On Eve Of Trump's Inauguration

    The Federal Deposit Insurance Corp.'s embattled chairman, Martin Gruenberg, said Tuesday that he will step down and retire from the agency before President-elect Donald Trump takes office, clearing the way for a new, likely Republican leader at the deposit insurer.

  • November 18, 2024

    SEC Says Bogus Heir Of Nigerian Billionaire Ran IPO Scheme

    A Queens, New York, man who copped to wire fraud for scamming investors by posing as scion of an ultra-wealthy Nigerian industrialist faces U.S. Securities and Exchange Commission claims over the same alleged misconduct.

  • November 18, 2024

    SEC Says Calif. Atty, His Wife Stole $2.2M To Buy House

    The U.S. Securities and Exchange Commission on Monday accused a Los Angeles-area attorney of scheming to control publicly traded penny stock companies and then stealing $2.2 million from one of those companies to buy a home with his wife, according to a complaint filed in California federal court.

  • November 18, 2024

    Target Downs Investor Suit Over Inventory Glut For Good

    A Minnesota federal judge has tossed for good a proposed class action alleging Target Corp. and its top executives misled shareholders by hiding that the big-box retailer had "abandoned its customer-focused purchasing strategy" in favor of "indiscriminately buying large quantities of inventory" that consumers did not want.

  • November 18, 2024

    Judge Won't Release Kraken To Appeal Order In SEC Suit

    A California federal judge on Monday refused to let the operator of the cryptocurrency exchange Kraken make an immediate appeal of his order denying its motion to dismiss a suit brought by the U.S. Securities and Exchange Commission, saying it would only delay resolution of the case.

  • November 18, 2024

    Justices Urged To Pass On 3rd Circ. CFPB Loan Trust Case

    The Consumer Financial Protection Bureau has asked the U.S. Supreme Court to deny an appeal by a group of student loan trusts fighting an enforcement action by the agency, arguing that industry concerns about the Third Circuit case are overblown and unavailing.

  • November 18, 2024

    Ex-AutoZone CEO Must Face $1M 'Short-Swing' Profit Suit

    A Tennessee federal judge said a former AutoZone Inc. CEO must face an investor suit seeking to recover over $1 million in alleged "short-swing" trading profits on behalf of the company, saying the shareholder has plausibly alleged that the ex-CEO's trades were not exempt from certain insider trading rules.

  • November 18, 2024

    Industry Group Wants Trump-Era SEC Proxy Rules Reinstated

    The National Association of Manufacturers has urged the D.C. Circuit to reverse a ruling that struck down a U.S. Securities and Exchange Commission regulation on proxy voting, arguing the ruling severely limits the agency's regulatory power without any statutory backing.

  • November 18, 2024

    J&J Posts $1.17B Bond For Del. Merger Milestone Appeal

    Johnson & Johnson Inc. has posted a $1.167 billion surety-backed bond ahead of its planned appeal challenging a Delaware Chancery Court's finding that it owes more than $1 billion to a medical robotics developer's former shareholders caught up in a post-acquisition dispute.

  • November 18, 2024

    Ex-Crypto CEO Bribe Case Unsealed As Firm Inks $10M Deal 

    The former CEO of a cryptocurrency mining company tried to bribe Japanese government officials to be able to open a resort in the country, according to an indictment unsealed Monday alongside the company's $10 million deferred prosecution agreement.

  • November 18, 2024

    Hacker's Wife Gets 18 Months For Laundering Stolen Crypto

    The wife of a hacker who stole what is now billions of dollars' worth of bitcoin from the crypto exchange Bitfinex was sentenced in D.C. federal court Monday to 18 months in prison for her role in helping to launder the stolen funds.

  • November 18, 2024

    Mutual Fund Manager Owes SEC, CFTC $11M After Trial

    A Wisconsin federal judge has ordered the operator of a mutual fund to pay more than $11 million to the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission after being found liable by a jury of making untrue statements and breaching his fiduciary duty to investors.

  • November 18, 2024

    StraightPath Execs Must Face $386M IPO Fraud Charges

    A New York federal judge denied a bid Monday by three principals of Florida-based private equity firm StraightPath Venture Partners to dismiss an indictment accusing them of raising $386 million by defrauding over 2,000 investors through false promises about purchases of pre-IPO shares in private companies.

  • November 18, 2024

    SEC Sued Over FINRA's One-Day Bond Reporting Timeline

    The U.S. Securities and Exchange Commission has been hit with a lawsuit seeking to overturn a newly adopted rule that will require brokerage firms to report bond transactions more quickly, with the suing organization previously claiming there was no evidence justifying a need for such a change.

  • November 18, 2024

    Webtoon Brass Hit With Derivative Suit Over Post-IPO Plunge

    Executives and directors of online comics platform Webtoon Entertainment Inc. face a shareholder derivative claim alleging the company went public while concealing that it was seeing minimal growth.

  • November 18, 2024

    Chancery Consolidates 2 Musk, Derivative Damage Suits

    Delaware's chancellor on Monday combined two class suits that separately targeted Elon Musk's massive sales of Tesla Inc. stock and alleged diversions of Tesla talent to Musk's spun-off artificial intelligence venture, while ordering coordination with a suit seeking damages arising from alleged insider trading in late 2022.

Expert Analysis

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.

  • Loper Bright Limits Federal Agencies' Ability To Alter Course

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    The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.

  • How 3 Recent High Court Rulings Could Shape Fintech Policy

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    The U.S. Supreme Court's recent decisions in Jarkesy, Loper Bright and Corner Post provide fintech companies with new legal strategies to challenge regulatory actions, but agency reactions to these rulings and inconsistent judicial interpretations could bring compliance challenges and uncertainties, says Amy Whitsel at FS Vector.

  • 2nd Circ. Case Reinforces Need For Advance Notice Bylaws

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    The Second Circuit's recent decision in Nano Dimension v. Murchinson illustrates that Section 13(d) of the Exchange Act is a square peg for a round hole, and that advance notice bylaws are far better at protecting against undisclosed coordination among activist shareholders, say attorneys at Morgan Lewis.

  • What Cos. Should Note In DOJ's New Whistleblower Pilot

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    After the U.S. Department of Justice unveiled a new whistleblower pilot program last week — continuing its efforts to incentivize individual reporting of misconduct — companies should review the eligibility criteria, update their compliance programs and consider the risks and benefits of making their own self-disclosures, say attorneys at Skadden.

  • Autonomy Execs' Acquittal Highlights Good Faith Instruction

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    The recent acquittal of two former Autonomy executives demonstrates that a good faith jury instruction can be the cornerstone of an effective defense strategy in white collar criminal cases, in part because the concept of good faith is a human experience every juror can relate to, says Sara Kropf at Kropf Moseley.

  • Series

    Teaching Scuba Diving Makes Me A Better Lawyer

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    As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.

  • SolarWinds Ruling Offers Cyber Incident Response Takeaways

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    The New York federal court's dismissal of all charges related to the 2019 Sunburst cyberattack is a devastating blow to the U.S. Securities and Exchange Commission's cybersecurity case against SolarWinds, but the well-reasoned opinion provides valuable lessons that may improve companies' defensive posture in the wake of a major cybersecurity incident, say attorneys at Troutman Pepper.

  • 3 Ways To Lower Insider Trading Risk After First 10b5-1 Case

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    In light of the U.S. Department of Justice's insider trading prosecution against the former CEO of Ontrack based on alleged abuse of a Rule 10b5-1 safe harbor plan — designed to allow executives to sell their companies' securities without liability — companies and individuals should take steps to avoid enacting similar plans in bad faith, say attorneys at Jenner & Block.

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

  • Evolving Regulatory Oversight For AI And Asset Management

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    Attorneys at K&L Gates discuss the evolving regulatory and legislative landscape for artificial intelligence in the asset management industry, as the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and Congress consider how to address potential investor protection and systemic risks associated with AI.

  • 3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy

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    The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.

  • Series

    A Day In The In-House Life: Block CLO Talks Problem-Solving

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    Amid the busy summer months, Block Inc. Chief Legal Officer Chrysty Esperanza chronicles a typical Wednesday where she conquered everything from unexpected fintech regulatory issues and team building to Bay Area commutes and school drop-off.

  • Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days

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    In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.

  • Navigating Antitrust Considerations In ESG Collaborations

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    The intersection of ESG goals and antitrust laws presents a complex challenge for businesses and their counsel — but by creating clear frameworks for collaboration, adhering to established guidelines and carefully considering the competitive implications of their actions, companies can work toward sustainability while mitigating legal risks, say attorneys at Morgan Lewis.

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