Securities

  • September 27, 2024

    FTX Users Say Binance Manipulated Market To Spark Collapse

    Users of the now-defunct cryptocurrency exchange FTX told a Florida federal judge that social media posts by competing exchange Binance still manipulated markets to cause the collapse of FTX and harm users even if the statements themselves weren't false.

  • September 27, 2024

    Ex-CEO To Pay SEC Fine For Pre-SPAC Disclosure Failures

    The U.S. Securities and Exchange Commission announced Friday it has reached a settlement with the former CEO of an electric vehicle battery company who allegedly concealed its supply chain issues ahead of its merger with a blank check company, leading to a nearly 20% drop in the company's share price once the shortage was revealed.

  • September 27, 2024

    Disney Warns Investor Streaming Suit Could Chill Innovation

    Allowing securities litigation over The Walt Disney Co.'s underperforming streaming service to go forward would discourage companies from trying "new, risky business plans," counsel for the entertainment giant told a California federal judge in an attempt to toss the suit Friday.

  • September 27, 2024

    UK Man Indicted On $4M 'Hack-To-Trade' Scheme

    New Jersey federal prosecutors announced Friday that a U.K. man has been arrested and is awaiting extradition on charges of hacking into the email accounts of several corporate executives in order to steal nonpublic information that he used to turn a profit of almost $4 million.

  • September 27, 2024

    Mango Markets Crypto Cos. Ink $700K Deal Over SEC Claims

    The U.S. Securities and Exchange Commission announced Friday that the business entities behind decentralized cryptocurrency exchange Mango Markets agreed to a nearly $700,000 settlement to resolve alleged registration violations, which the regulator brought after the marketplace was bilked of more than $100 million.

  • September 27, 2024

    Juul Stockholder Class Sues In Del. Over Controller Windfall

    Two stockholders of e-cigarette venture Juul Labs Inc. sued the company's controllers and board on Friday in a proposed class derivative action seeking damages for an alleged top stockholder scheme to avoid huge liabilities under terms said to have cost the company billions.

  • September 27, 2024

    Musk Skirts Sanctions In Missed Twitter Deposition, For Now

    A California federal judge on Friday declined to sanction Elon Musk, for now, after he skipped a deposition over his $44 billion Twitter takeover, allowing the parties to resolve the issue and advising them to wait to see if he appears for the deposition that's been rescheduled for this coming Friday.

  • September 27, 2024

    CFTC Accuses Firms Of $3.6M Retail Forex Fraud

    The Commodity Futures Trading Commission on Friday targeted a commodity trading platform the regulator alleged was behind a scheme that scammed $3.6 million from Asian American customers who thought they were investing in retail foreign exchange and commodity futures contracts.

  • September 27, 2024

    CFTC Fines Futures Firm $650K For Botched Records, Trades

    The Commodity Futures Trading Commission has fined CHS Hedging LLC $650,000 to settle allegations that it did not properly record thousands of calls between associates and customers and failed to obtain customer authorizations before entering trades over a four-year period.

  • September 27, 2024

    2nd Circ. Won't Revive Danimer Investors' 'Greenwashing' Suit

    The Second Circuit on Friday upheld the dismissal of a lawsuit accusing Danimer Scientific Inc. of over-hyping the environmentally friendly nature of a plastics alternative it produced, with the appellate court saying that there was no proof that company executives purposefully misled investors.

  • September 27, 2024

    Early Trump Media Backer Dumps Shares As Lockup Expires

    An early investor in former President Donald Trump's social media platform has unloaded most of its stake, marking the first divestiture following the expiration of a lockup period that restricted sales after Trump's entity went public earlier this year.

  • September 27, 2024

    Pharma Co. Amarin Beats Class Action Over Patent Issues

    A New Jersey federal judge has tossed a proposed class action against pharmaceutical company Amarin and its top brass, alleging they misled shareholders about their products and the prospects of related patent litigation, saying the investors have failed to plead any actionable misleading statements or omissions made by the defendants.

  • September 27, 2024

    Cooley Accused Of Hiding Fraud From Startup Investors

    A former board member of a dry-cleaning delivery startup has alleged in New Jersey federal court that Cooley LLP and its attorneys deliberately kept investors in the dark about fraud claims against the startup's chief executive.

  • September 27, 2024

    Sen. Bill Would Curb ESG Factors In Retirement Fund Choices

    A bill in the Senate would prohibit asset managers from prioritizing environmental, social and governance, or ESG, factors over financial gain when selecting retirement investments.

  • September 27, 2024

    NY Man Convicted In Father-Son Crypto Caper

    A Long Island man was convicted by a Manhattan federal jury of conspiring with his son to scam investors out of millions by claiming to invest their cryptocurrency and instead pocketing the funds.

  • September 27, 2024

    TelexFree Victims Say Payment Processor Lost Key Emails

    Victims of the multibillion-dollar TelexFree Ponzi scheme said a payment processor's loss of critical emails and other files related to the ploy amounts to a "blatant coverup" to hide evidence that would have otherwise bolstered their case against the company.

  • September 26, 2024

    SEC Fines Cassava $40M Over Alzheimer's Treatment Claims

    Neuroscience-focused biopharmaceutical company Cassava Sciences Inc. and two of its former executives agreed to pay over $40 million to resolve U.S. Securities and Exchange Commission claims related to allegedly misleading statements about clinical trial results for a potential Alzheimer's disease therapeutic, the regulator announced on Thursday.

  • September 26, 2024

    Cannabis REIT Beats Investor Class Action For Good

    A New Jersey federal judge has allowed a cannabis-focused real estate investment trust and certain executives to permanently escape a proposed class action brought by the company's shareholders, finding the lawsuit failed to allege the defendants did not conduct proper due diligence on a major tenant accused of engaging in fraud.

  • September 26, 2024

    2nd Circ. Questions Crypto Co.'s 'Control' In Scam Token Suit

    Investors attempting to revive their suit around decentralized crypto exchange Uniswap Labs told a Second Circuit panel on Thursday that their claims were prematurely dismissed, while a judge pressed them to show how any of the defendants had control of the alleged "rampant fraud" on the platform.

  • September 26, 2024

    Tornado Cash Developer Must Face Criminal Case

    The founder of cryptocurrency mixing service Tornado Cash can't escape charges he conspired to launder money and violate sanctions, after a Manhattan federal judge ruled in an oral opinion Thursday that his "narrative" of being prosecuted over writing computer code should be put before a jury.

  • September 26, 2024

    Sen. Warren Presses OCC, Fed For Tighter Leash On NYCB

    Sen. Elizabeth Warren, D-Mass., demanded Wednesday that federal regulators slap New York Community Bancorp with a higher minimum capital requirement, calling out what she alleges has been lax oversight of the bank.

  • September 26, 2024

    Spain Can't Escape $26M Award, DC Judge Rules

    A D.C. federal judge on Thursday enforced a €23.5 million ($26.3 million) arbitral award issued against Spain after the country dialed back its renewable energy incentives, rejecting Madrid's argument that the tribunal had infringed the authority of European Union courts.

  • September 26, 2024

    SEC Fines Fla. Advisory Firm Over Whistleblower Barriers

    Florida-based investment management company GQG Partners LLC has settled U.S. Securities and Exchange Commission claims that the company made it difficult for a former employee and prospective workers to report potential securities law violations, the SEC said on Thursday.

  • September 26, 2024

    SEC Fines DraftKings $200K Over CEO's Social Media Blasts

    DraftKings agreed to pay a $200,000 fine to resolve U.S. Securities and Exchange Commission administrative charges that the online sports betting platform shared nonpublic sales growth information with some of its investors through its CEO's social media without disclosing the information to all investors, the agency said Thursday.

  • September 26, 2024

    Fintech Firm Can't Dodge Investor Suit Over Lending Program

    A New York federal judge has trimmed some allegations in a proposed class action lawsuit against payment processing company StoneCo Ltd. while allowing shareholders to move forward with claims that the company underplayed its role in the failure of a merchant lending program it once offered in Brazil.

Expert Analysis

  • Series

    Boxing Makes Me A Better Lawyer

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    Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.

  • Series

    After Chevron: No Deference, No Difference For SEC Or CFTC

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    The Chevron doctrine did not fundamentally alter the interplay between the courts and the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission in the development of the securities and commodities laws — and its demise will not do so either, says Dan Berkovitz at Millennium Management.

  • Opinion

    Industry Self-Regulation Will Shine Post-Chevron

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    The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.

  • 3 Ways Agencies Will Keep Making Law After Chevron

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    The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.

  • Roundup

    After Chevron

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    Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 36 different rulemaking and litigation areas.

  • Opinion

    Atty Well-Being Efforts Ignore Root Causes Of The Problem

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    The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.

  • Proposed Customer ID Rule Could Cost Investment Advisers

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    A rule recently proposed by FinCEN and the U.S. Securities and Exchange Commission to make financial advisers collect more customer information parallels an anti-money laundering and counterterrorism rule proposed this spring, but firms may face new compliance costs when implementing these screening programs, say attorneys at Lowenstein Sandler.

  • What Passage Of House Crypto Bill Could Mean For Industry

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    While the prospects of the Financial Innovation and Technology for the 21st Century Act, which recently passed the House in a bipartisan fashion, becoming law remain murky, the manner of its passage may give crypto markets a real cause for hope, say Neel Maitra and Dale Beggs at Dechert.

  • What 2 Rulings On Standing Mean For DEI Litigation

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    Recent federal court decisions in the Fearless Fund and Hello Alice cases shed new light on the ongoing wave of challenges to diversity, equity and inclusion initiatives, with opposite conclusions on whether the plaintiffs had standing to sue, say attorneys at Moore & Van Allen.

  • Series

    Skiing And Surfing Make Me A Better Lawyer

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    The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.

  • Advisers Can Avoid Gaps In SEC Marketing Rule Compliance

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    A recent risk alert from the U.S. Securities and Exchange Commission and the enforcement history of the marketing rule indicate that advisers have encountered persistent difficulties in achieving compliance — but there are steps advisers can take to mitigate risks of violations, say Scott Moss and Jimmy Kang at Lowenstein Sandler.

  • Class Actions At The Circuit Courts: June Lessons

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    In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers two recent decisions from the Third and Tenth Circuits, and identifies practice tips around class action settlements and standing in securities litigation.

  • Unpacking The Circuit Split Over A Federal Atty Fee Rule

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    Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.

  • Arbitration Implications Of High Court Coinbase Ruling

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    The U.S. Supreme Court's recent Coinbase v. Suski ruling not only reaffirmed the long-standing principle that arbitration is a matter of contract, but also established new and more general principles concerning the courts' jurisdiction to decide challenges to delegation clauses and the severability rule, say Tamar Meshel at the University of Alberta.

  • Banks As Crypto Custodians May Rest On SEC Bulletin's Fate

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    Banks' willingness to accept custody of cryptocurrency assets, like the exchange-traded funds approved by the U.S. Securities and Exchange Commission this spring, may hinge on whether a 2022 SEC accounting bulletin directing banks to track customers' digital assets on their balance sheets can survive Congress' attempts to strike it down, says Roger Chari at Duane Morris.

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