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Securities
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March 19, 2025
Judge Tosses Vroom Investors' IPO Suit Due To Vague Claims
A New York federal judge has tossed a stockholder class action against Vroom Inc. over issues with its $468 million initial public offering, finding that none of the more than 50 challenged statements in the complaint made about the online car retailer's customer service or business plan are actionable.
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March 19, 2025
NJ Firm Faces SEC Fraud Suit Over Investment Allocations
The U.S. Securities and Exchange Commission has accused a New Jersey investment advisory firm and its owner of defrauding investors by violating its limits on concentrating investments in a particular sector, an issue that previously got the firm in regulatory trouble.
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March 19, 2025
How Cleary, Simpson Thacher Went To The Mattresses With FTC
The Federal Trade Commission's attempt to block Tempur Sealy's $5 billion bid to acquire retailer Mattress Firm suffered a likely fatal blow when a Texas federal court refused to put the merger on hold.
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March 19, 2025
NC Captive Insurer's Owner Can't Shirk Self-Dealing Claims
North Carolina's business court has largely rejected a majority shareholder's efforts to curtail claims he seized control of a captive insurance company only to run it into the ground, finding the suit sufficiently ties him to unpaid premiums that dried up the insurer's sole source of revenue.
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March 19, 2025
AI Is Growing Focus For Corporate Boards, Proxy Proposals
Public companies and their investors increasingly set their sights on artificial intelligence last year, according to a report released Wednesday indicating the rapidly evolving technology was a major focus when it came to both board-level oversight and shareholder proxy proposals.
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March 19, 2025
Alston & Bird Securities Litigator Joins Katten In Calif.
Katten Muchin Rosenman LLP added a former Alston & Bird LLP securities litigation partner whom one firm leader has hoped to hire after a stint working together decades ago.
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March 19, 2025
Ex-Cognizant CLO Fires Paul Weiss After Trump Order
A former Cognizant Technology Solutions Corp. executive facing a bribery trial next month has fired Paul Weiss Rifkind Wharton & Garrison LLP from his defense team following the Trump administration's revocation of the firm's security clearances, according to a withdrawal motion filed Wednesday by firm partner Roberto Finzi.
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March 19, 2025
Law360 Announces The Members Of Its 2025 Editorial Boards
Law360 is pleased to announce the formation of its 2025 Editorial Advisory Boards.
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March 19, 2025
Del. House Panel Sends Corporate Law Rework To Final Vote
A Delaware House committee on Wednesday sent toward a possible final House vote corporation law amendments that would create new "safe harbor" protections for officers, directors and controlling stockholders, shielding them from liability if they have conflicting interests in some corporate acts.
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March 19, 2025
'They're Walking Away': Ripple Labs Says SEC To Drop Appeal
Ripple Labs CEO Brad Garlinghouse said Wednesday the U.S. Securities and Exchange Commission will drop its Second Circuit appeal of a summary judgment in its headline-grabbing enforcement action over Ripple's XRP token.
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March 19, 2025
FCPA Uncertainty May Lead Attys To 'Gamble' On Disclosure
The Trump administration's pullback on Foreign Corrupt Practices Act enforcement is sowing confusion in the white collar bar, as companies consider whether to voluntarily disclose potential violations of the anti-bribery law while the chances of getting a favorable resolution seem good or keep quiet until the dust settles.
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March 18, 2025
Emisphere, Novo Nordisk Sale Suit On Track For Settlement
Former Emisphere Technologies Inc. stockholders are set to settle stockholder litigation over the $1.8 billion sale of the biotechnology company to Novo Nordisk A/S, a Robbins Geller Rudman & Dowd LLP attorney informed Delaware's Chancery Court on Tuesday, saying a stipulation of settlement should be in next month.
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March 18, 2025
PVC Pipe Giant's Top Brass Sued For Hiding Price-Fix Scheme
PVC pipe maker Atkore Inc.'s top executives and board members were hit with derivative claims Tuesday for allegedly shielding the company's participation in a pandemic-era price-fixing scheme, just days after investors sued the company and three executives for the same alleged conduct.
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March 18, 2025
OCC's Hood Says He Won't Tolerate 'Odious' Debanking
The Office of the Comptroller of the Currency's acting chief, Rodney Hood, told bankers on Tuesday that his agency won't tolerate so-called debanking, saying "lawful" businesses — including crypto firms — should be eligible for bank accounts and other services.
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March 18, 2025
Drugmaker's $10.5M Deal In Investor FDA Approval Suit OK'd
A California federal judge has preliminarily approved a $10.5 million settlement between oncology drug company ImmunityBio and investors who claim they were misled over the likelihood the U.S. Food and Drug Administration would approve the company's bladder cancer drug.
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March 18, 2025
Crypto Firms Tied To Milei-Promoted Libra Token Face NY Suit
A trio of crypto firms linked to a token known as Libra face a proposed class action accusing them of fraudulently raising $107 million from the controversial project, which was promoted by Argentine President Javier Milei prior to its collapse.
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March 18, 2025
Trading Giant Virtu Must Face Suit Over Confidentiality Issues
A New York federal judge has trimmed a consolidated class action accusing trading giant Virtu Financial Inc. of misleading investors on issues around access to confidential customer trading information, finding that one category of statements in the complaint is not actionable but otherwise allowing the suit to proceed.
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March 18, 2025
Citi, HSBC Ink $12M Deal To End UK Bond Price-Fixing Suit
A New York federal judge gave his preliminary blessing Monday to a $12 million settlement between investors and major financial institutions, including Citigroup and HSBC Bank, in a proposed antitrust class action accusing the banks' traders of colluding to fix the prices of U.K. government bonds through digital communications.
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March 18, 2025
PetroSaudi Says Feds' Suit Over $380M Award Must Proceed
A PetroSaudi unit is fighting the U.S. government's bid to stay its years-long suit to seize part of a $380 million arbitral award while criminal proceedings in Switzerland play out against the unit's former owner, telling a California federal court the move is a stall tactic.
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March 18, 2025
Fla. Mall Investor Gets 5 Years In $77M WeWork Stock Fraud
A Manhattan federal judge sentenced a real estate investor and former owner of a Florida waterfront shopping complex to five years in prison Tuesday following a fraud conviction in connection with manipulating the price of WeWork Inc.'s stock at $77 million shortly before the company declared bankruptcy.
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March 18, 2025
Nasdaq Plans New Regional HQ In Texas Amid Competition
Nasdaq said Tuesday it plans to build a regional headquarters in Dallas, marking the latest move among major stock exchanges to expand operations in Texas amid fierce competition for visibility in the Lone Star State.
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March 18, 2025
BlackRock Calls Red States' Suit Over Coal Prices 'Farfetched'
BlackRock Inc. and two other large asset managers have urged a Texas federal judge to toss claims brought by a coalition of Republican-led states alleging the firms ran a scheme to drive up coal prices as part of an "investment cartel," saying the case "spins a farfetched theory."
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March 18, 2025
Bancorp Downplayed CRE Bridge Loan Risks, Investor Claims
An investor in The Bancorp Inc. is accusing the financial holding company in Delaware federal court of causing stock value to decline by misleading investors, including by not fully disclosing how its commercial real estate bridge loans were in danger of defaulting.
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March 18, 2025
Judge Probes Atty Conflict In Vanguard $40M Settlement
A Pennsylvania federal judge questioned whether attorneys representing investors suing Vanguard over surprise tax bills have a conflict of interest in pushing for a $40 million settlement, adding to concerns about a parallel regulatory settlement that has delayed approval of the deal.
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March 18, 2025
Convicted Insurance Mogul's Co. Liable For $57M Fraud
A Malta-based advisory firm controlled by convicted insurance mogul Greg Lindberg violated the Investment Advisers Act of 1940 by helping facilitate his misappropriation of $57 million in client funds, a North Carolina federal court ruled, noting Lindberg and another firm executive already admitted to fraud in separate consent judgments.
Expert Analysis
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Managing Litigation Side-Switching During 2nd Trump Admin
Now that the new presidential administration is in place, the government will likely switch positions in a number of pending cases, and stakeholders should employ strategies to protect their interests, say attorneys at Covington.
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Chancery May Have Raised Bar For Books, Records Requests
The Delaware Court of Chancery recently approved the denial of a books and records demand against Amazon, raising important questions about what evidence and purpose a stockholder is required to show to succeed on such a request, say attorneys at Selendy Gay.
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The Blueprint For A National Bitcoin Reserve
The new administration has the opportunity to pave the way for a U.S.-backed crypto reserve, which could conceptually function as a strategic asset akin to traditional reserves like gold markets, hedge against economic instability, and influence global crypto adoption, say attorneys at Duane Morris.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Takeaways From SEC's Registered Investment Cos. Risk Alert
The U.S. Securities and Exchange Commission's Division of Examinations' recent risk alert pertaining to registered investment companies provides a high-level overview of its risk-based approach to selecting RICs for examination — a potential hint that the division is investigating some of the covered topics, say attorneys at Simpson Thacher.
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How DOGE's Bite Can Live Up To Its Bark
All signs suggest that the Department of Government Efficiency will be an important part of the new Trump administration, with ample tools at its disposal to effectuate change, particularly with an attentive Republican-controlled Congress, say attorneys at K&L Gates.
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Small Biz Caught In Corporate Transparency Act Crossfire
Despite compliance being put on hold due to a nationwide preliminary injunction, small businesses have been caught in the middle of the legal battle over the Corporate Transparency Act — and confusion over the law's requirements could result in major penalties, say attorneys at Snell & Wilmer.
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5 Notable Information Security Events In 2024
B. Stephanie Siegmann at Hinckley Allen discusses 2024's largest and most destructive data breaches seen yet, ranging from ransomware disrupting U.S. healthcare systems on a massive scale, to tensions increasing between the U.S. and China over cyberespionage and the control of U.S. data.
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Series
Playing Rugby Makes Me A Better Lawyer
My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
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What Broker-Dealers Must Know Before Selling Bitcoin ETPs
Interest in bitcoin exchange-traded products is already high, and only expected to grow in light of the incoming Trump administration's pro-crypto stance, but broker-dealers must still consider numerous regulatory requirements before recommending a bitcoin ETP to a client, say Frank Weigand and Justine Woods at Cahill Gordon.
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Series
Texas Banking Brief: All The Notable Legal Updates In Q4
The fourth quarter of 2024 brought noteworthy developments to the Texas financial services sector, particularly a new state artificial intelligence bill and a Consumer Financial Protection Bureau rule that will affect an outsize number of Texas community banks, says Tyler George at Naman Howell.
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Cyber Disclosure Is A Mainstay In 2025 SEC Exam Priorities
Despite a new administration and a new U.S. Securities and Exchange Commission chair incoming, the SEC's 2025 examination priorities signal that cybersecurity disclosures and risk management practices will remain important due to the growing threat of cyberattacks, says Anjali Das at Wilson Elser.
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Opinion
No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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The Compliance Trends And Imperatives On Tap In 2025
The corporate ethics and compliance landscape is rapidly evolving, posing challenges from conflicting stakeholder expectations to technological disruptions, and businesses will need to explore human-centered, data-driven and evidence-based practices, says Hui Chen at CDE Advisors.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.