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Securities
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March 24, 2025
Norfolk Southern Must Face Investors' Suit Over Safety Claims
A lawsuit claiming that Norfolk Southern executives propped up stock prices with false claims about the railroad's safety culture has survived the company's motion to dismiss, with a Georgia federal judge ruling Monday that those claims were specific enough to be material for investors who were allegedly deceived up until the 2023 derailment in East Palestine, Ohio.
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March 24, 2025
American Airlines Seeks Dismissal of Investor Fraud Claims
American Airlines told a Texas federal judge that jaded investors want to spin a simple earnings guidance adjustment into a securities class action, saying the company was transparent when its 2024 sales strategy foundered.
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March 24, 2025
SEC, FINRA Enforcement Heads Say Crypto Still A Focus
Heads of enforcement at the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority indicated Monday the agencies are keeping their eyes on cryptocurrency, even as the former has backed off of various cases and investigations involving crypto.
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March 24, 2025
Sheppard Mullin, Others Accused Of Aiding Loan Fraud
An investor has hit Sheppard Mullin Richter & Hampton LLP, a former managing partner and multiple other individuals with a sprawling lawsuit in California state court, alleging they made a series of fraudulent transactions to dupe him out of his initial $650,000 loan, eventually costing him millions of dollars in lost profits and legal fees.
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March 24, 2025
Trump Asks High Court To Halt Fed. Workers' Reinstatement
The Trump administration asked the U.S. Supreme Court on Monday to pause a California federal court order reinstating tens of thousands of probationary federal workers who were fired from six agencies, arguing the band of nonprofit groups that obtained the order have no standing to challenge the firings.
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March 24, 2025
Gibson Dunn Adds Former Federal Prosecutor In SF
Gibson Dunn & Crutcher LLP has brought on the former chief of the corporate and securities fraud section at the U.S. Attorney's Office for the Northern District of California as a partner in San Francisco, the firm said Monday.
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March 21, 2025
Only FDIC Can Sue Over Signature Bank Collapse, Judge Says
A New York federal judge on Friday tossed a shareholder lawsuit over alleged misstatements about Signature Bank's health ahead of its 2023 collapse, saying shareholders lacked standing to sue in light of the FDIC being a receiver of both the failed bank's assets and rights of the bank's stockholders.
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March 21, 2025
Barclays Beats Investor Suits Over Unregistered Securities
A New York federal judge tossed Friday a pair of proposed securities class actions alleging Barclays misled investors about its internal controls and its unregistered securities sales, which eventually triggered so-called short squeezes, finding that the statements aren't actionable and the investors haven't sufficiently pled scienter, among other pleading failures.
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March 21, 2025
Chancery Nixes Mid-Case Appeal In Sears Appraisal Suit Fix
A Delaware vice chancellor refused on Friday to certify a mid-case appeal sought by bankrupt Sears Hometown Stores and its billionaire controller after a Court of Chancery ruling that an investor should get a full $4.06 per share post-squeeze-out merger award despite pursuing an alternative stock appraisal that was dead-ended by bankruptcy.
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March 21, 2025
SEC Crypto Roundtable Puts 'Howey' To The Test
The U.S. Securities and Exchange Commission brought a dozen cryptocurrency legal experts together on Friday to wrestle with how to define security status for digital assets, and their in-depth discussion left the regulator with more questions or suggestions than agreed-upon definitions.
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March 21, 2025
Divisive Del. Corporate Law Bill May Get Compromise Tweak
A Delaware state representative reported active interest Friday in possible "opt-in" requirements for proposed changes to the section of Delaware's general corporation law pertaining to potentially conflicted business transactions and controlling investors.
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March 21, 2025
Texas Regulator Says Scammers Recruited Game Developers
The Texas State Securities Board entered an emergency cease-and-desist order to stop offers of an allegedly fraudulent blockchain token called Apertum, saying its creators successfully recruited developers behind "Grand Theft Auto V" to launch a new game requiring the purchase of the token.
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March 21, 2025
SEC Guidance Moves Needle In Favor Of Private Fundraising
The U.S. Securities and Exchange Commission's recent guidance on how accredited investors can self-certify when participating in broadly publicized private placements simplifies legal compliance for issuers, according to attorneys, though the jury is still out on whether market participants will embrace the new framework.
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March 21, 2025
Ex-Cognizant CLO Reconsidering Dismissal Of Paul Weiss
A former Cognizant Technology Solutions Corp. executive facing bribery charges indicated Friday that he may reconsider his decision to fire Paul Weiss Rifkind Wharton & Garrison LLP as his trial counsel, now that President Donald Trump has rescinded an executive order limiting the firm's access to federal buildings and officials.
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March 21, 2025
DOJ Ends Glencore Monitorships Under Bribery Deal Early
The U.S. Department of Justice has ended early two monitorships imposed as part of mining giant Glencore's 2022 bribery and market manipulation case settlement, in the wake of President Donald Trump's directive pausing enforcement of the Foreign Corrupt Practices Act.
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March 21, 2025
Treasury Lifts Sanctions Against Crypto Mixer Tornado Cash
The U.S. Department of the Treasury said Friday that it has removed U.S. government sanctions against cryptocurrency mixer Tornado Cash, ending the Biden-era blacklisting after the Fifth Circuit said last year that key code underpinning the service wasn't sanctionable.
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March 21, 2025
Block & Leviton, Elsberg To Co-Lead Agiliti Squeeze-Out Suit
Block & Leviton and Elsberg Baker & Maruri have won co-lead counsel roles in a consolidated proposed investor class action in Delaware's court of chancery challenging an alleged squeeze-out of minority shareholders of medical equipment company Agiliti Inc.
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March 21, 2025
Chicago Feds Charge 7 Over Alleged $214M Pump-And-Dump
Federal prosecutors on Friday charged seven foreign nationals over a "pump and dump" scheme in which they allegedly posed as U.S.-based investment advisers online and artificially raised the stock price of a company purporting to provide educational services in China, raking in more than $200 million when they sold their shares.
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March 21, 2025
Musk Atty Spiro Evading Subpoena, Twitter Investors Say
A class of investors suing Elon Musk over allegations he tried to smear Twitter to lower the price of his $44 billion acquisition of the site says one of Musk's Quinn Emanuel Urquhart & Sullivan LLP attorneys and close advisers has refused to accept service of a subpoena to be deposed and should be served by alternative means.
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March 21, 2025
Investors Fail To Show Dish Lied About 5G, Judge Says
A Colorado federal judge has permanently tossed a proposed investor class action claiming Dish Network lied about the success of its 5G network rollout, finding that while Dish may have been "overly ambitious" about its plans, that isn't enough to state a claim for securities fraud.
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March 20, 2025
Musk Gets Summons In Tardy Twitter Stock Disclosure Row
Elon Musk received a court summons last week for a U.S. Securities and Exchange Commission lawsuit accusing the billionaire of failing to timely disclose his purchases of Twitter stock ahead of his $44 billion acquisition in 2022, according to a return of service filed Thursday in D.C. federal court.
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March 20, 2025
OCC Says It Will Stop Examining Banks For Reputation Risk
The Office of the Comptroller of the Currency said Thursday that it will no longer examine banks for reputation risk, adopting a policy change that some Republican lawmakers want to require for all federal banking regulators to help curb so-called debanking.
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March 20, 2025
Iowa Adviser To Pay $15M Over SEC Conflict Claims
An Iowa-based adviser has been ordered to pay $15 million over claims from the U.S. Securities and Exchange Commission that it invested client assets in funds that benefited an affiliated broker-dealer instead of lower-cost alternatives, without disclosing its conflicts of interest.
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March 20, 2025
SEC Steps Back From Crypto Mining In Staff Statement
The U.S. Securities and Exchange Commission's Division of Corporation Finance said Thursday that certain crypto mining activities are beyond the agency's purview, but the commission's lone Democrat warned against interpreting the statement as a "wholesale exemption for mining."
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March 20, 2025
Sequoia Capital Rallies For Musk's $56B Tesla Pay Appeal
Venture capital firm Sequoia Capital Operations on Tuesday asked the Delaware Supreme Court for permission to back Elon Musk's appeal aimed at a Court of Chancery decision that had short-circuited the electric car company's 10-year, $55.6 billion compensation plan for the CEO.
Expert Analysis
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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.
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Calif. Cannabis Decision Deepens Commerce Clause Divide
In Peridot Tree v. Sacramento, the Eastern District of California joined a growing minority of courts that have found the dormant commerce clause inapplicable to state-regulated marijuana, and the Ninth Circuit will soon provide important guidance on this issue, say attorneys at Perkins Coie.
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Takeaways From DOJ Fraud Section's 2024 Year In Review
Attorneys at Paul Weiss highlight notable developments in the U.S. Department of Justice Fraud Section’s recently released annual report, and discuss what the second Trump administration could mean for enforcement in the year to come.
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Recent SEC Actions Highlight Importance Of Filing Form D
The U.S. Securities and Exchange Commission's enforcement action against three companies last month for failing to timely file Form D is an unprecedented step that should put an end to Regulation D issuers' views that filing these forms is a technical requirement or somewhat voluntary, says Patrick McCloskey at McCloskey Law.
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The 7th Circ.'s Top 10 Civil Opinions Of 2024
Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2024, and explain how they may affect issues related to mass arbitration, consumer fraud, class certification and more.
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Kansas Bank's Suit Could Upend FDIC Enforcement Authority
Should CBW Bank's federal lawsuit in Kansas challenging the Federal Deposit Insurance Corp.'s enforcement authority gain traction with a post-Chevron U.S. Supreme Court, it could have profound implications for the FDIC and the banking industry at large, says Jack Harrington at Bradley Arant.
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End-Of-Year FCPA Enforcement Surge Holds Clues For 2025
The last three months of 2024 saw more Foreign Corrupt Practices Act enforcement actions than any quarter in the previous four years, providing lessons for companies — even as a new administration raises doubts about whether this momentum will continue, say attorneys at Norton Rose.
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What's Next For Accounting Enforcement After SEC's Big 2024
The U.S. Securities and Exchange Commission under the Trump administration will likely continue to focus enforcement efforts on many of the same accounting and auditing issues that it pursued over the past year — but other areas, such as ESG, internal controls and cryptocurrency cases, may fall out of focus, say attorneys at Debevoise.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.