Securities

  • October 03, 2024

    Symbotic's Top Brass Hid Risks To Earnings Goals, Suit Says

    Symbotic investors sued the supply chain automation company's board of directors and top executives for allegedly downplaying risks in achieving the aggressive financial goals it promised shareholders.

  • October 03, 2024

    Chancery Tosses Barry Diller From Match.com Class Suit

    Media mogul Barry Diller escaped for a second time a Delaware Court of Chancery stockholder challenge to Match.com's $30 billion reverse spinoff from IAC Interactive, in a post-U.S. Supreme Court remand decision that also kept alive related, previously dismissed claims against five allegedly Diller-loyal "dual fiduciaries."

  • October 03, 2024

    Cole Schotz Adds Potter Anderson Corporate Partner In Del.

    Cole Schotz PC has added a corporate member with 16 years of Delaware-focused corporate advisory and transactional experience.

  • October 02, 2024

    EXp Investors Accuse Execs Of Ignoring Sex Assault Culture

    Shareholders of eXp World Holdings Inc. have hit the real estate brokerage company's top-brass with a derivative lawsuit in Delaware Chancery Court Wednesday, claiming they intentionally ignored repeated reports that its top "influencers" were drugging and sexually assaulting real estate agents at company events, thereby exposing the company to millions in liabilities.

  • October 02, 2024

    Freshworks Can't End Investors' IPO Disclosure Suit

    A California federal judge has told software company Freshworks it cannot escape a proposed investor class action alleging it omitted information from U.S. Securities and Exchange Commission filings when it made its initial public offering, saying the court cannot currently decide if its alleged omissions damaged investors.

  • October 02, 2024

    Former C-Quest Capital CEO Indicted For Carbon Credit Fraud

    Federal prosecutors in New York on Wednesday announced criminal charges against Kenneth Newcombe, the former chief executive officer of carbon project developer C-Quest Capital, accusing him of scheming to submit altered data relating to cookstove projects abroad to obtain millions of dollars worth of carbon credits.

  • October 02, 2024

    Coinbase Seeks CFTC Docs To Defend SEC Enforcement Case

    Coinbase has asked a Washington, D.C., federal court to direct the Commodity Futures Trading Commission to produce communications the regulator may have had with certain digital asset issuers as the cryptocurrency exchange prepares to defend registration claims from the U.S. Securities and Exchange Commission in New York.

  • October 02, 2024

    SEC Plans To Appeal Ripple Labs Decision To 2nd Circ.

    The U.S. Securities and Exchange Commission told a New York federal judge on Wednesday that it plans to appeal her decision in its registration suit against blockchain firm Ripple Labs to the Second Circuit.

  • October 02, 2024

    CFPB's $5M Student Loan Deal Gets OK Over PIMCO Objections

    A Pennsylvania federal judge has finalized a proposed $5 million settlement of a Consumer Financial Protection Bureau case that alleged pandemic-era servicing failures involving securitized student loans, overruling objections that money manager PIMCO raised on behalf of loan investors.

  • October 02, 2024

    Enviro Groups Step Up Effort To Block JBS' US Listing

    Eighteen sustainability-focused investor groups are urging the U.S. Securities and Exchange Commission to reject a potential U.S. stock listing by Brazilian meat conglomerate JBS SA, alleging the company is misleading the public regarding climate risks posed by its operations.

  • October 02, 2024

    Defense Atty Escapes DQ In $3M Transaction Row, For Now

    An attorney representing a businessman facing a $3 million fraud suit over a botched business transaction will not be forced to step away from the case, a South Dakota federal judge determined Wednesday, denying a motion seeking to disqualify the lawyer because he worked on the deal at issue in the suit.

  • October 02, 2024

    'Netflix Of China' Beats Investor Suit Over Inflated User Claims

    China-based streaming service iQIYI, dubbed the "Netflix of China," and another streaming service, Baidu Inc., have beaten proposed shareholder class action suits alleging the companies falsely beefed up iQIYI's user metrics, causing stock price drops when the truth was later revealed in a short seller report.

  • October 02, 2024

    DC Circ. Says Election Betting Contracts Can Go Live

    The D.C. Circuit on Wednesday allowed betting on election outcomes to move forward after finding that the U.S. Commodity Futures Trading Commission hasn't shown that KalshiEx's listing of election-based event contracts would likely harm the public while the regulator challenges a ruling that gave the trading platform the green light to offer such services.

  • October 02, 2024

    Crypto Fund Manager Bitwise Files Plans For XRP-Tied Fund

    Crypto-focused asset manager Bitwise filed a registration statement Wednesday that proposes to list the first exchange-traded product tied to the price of XRP, a digital currency that has long faced regulatory resistance.

  • October 02, 2024

    Chancery Drops Curtain On AMC Stock Dilution Suit

    A Delaware vice chancellor dismissed on Wednesday a proposed class action seeking damages or additional shares for former AMC Entertainment Corp. preferred stockholders who say the value of their shares was wrongly reduced last year in a deal that settled a hotly contested share conversion and reverse split.

  • October 02, 2024

    4th Circ. Says Murdaugh Can't Appeal Fraud Sentence

    Former South Carolina attorney Alex Murdaugh, who is serving life in prison for murder, was denied an appeal of a separate 40-year sentence after pleading guilty to stealing at least $9 million from clients by a Fourth Circuit panel that said he'd waived his right to appeal.

  • October 02, 2024

    SEC's Top Cop Departing After Record-Breaking Tenure

    The U.S. Securities and Exchange Commission announced Wednesday that enforcement director Gurbir Grewal will be leaving the agency next week following a three-year tenure, during which the agency brought in record penalties and frequently clashed with crypto industry participants objecting to a string of lawsuits brought under Grewal's leadership.

  • October 02, 2024

    Baker Donelson Must Face Mississippi Ponzi Scheme Suit

    A Mississippi federal judge has denied Baker Donelson's effort to escape civil conspiracy claims alleging the firm allowed a timber company's $164.5 million Ponzi scheme to unfold, with the judge stating he was "not persuaded" by the firm's argument, as it was based on the Eleventh Circuit's interpretation of Florida law.

  • October 02, 2024

    Tilray Gets Investor Stock Suit Scrubbed For Good

    A New York federal judge has dismissed with prejudice an investor suit alleging cannabis company Tilray Inc. and its officers misled investors about a co-branding agreement's prospects, saying the latest amended complaint fails to show that the company's CEO had intent to defraud or other nefarious motives.

  • October 01, 2024

    Meta Must Face Bulk Of Social Media Harms Securities Suit

    A California federal judge on Monday trimmed but refused to throw out a proposed securities class action claiming Meta Platforms Inc. and its executives misled investors about the harmful effects of social media, finding that the investors pointed to plausibly misleading statements regarding mental health and keeping children safe.

  • October 01, 2024

    Merrill Lynch To Pay $2M FINRA Fine Over Trade Report Flaws

    Merrill Lynch Pierce Fenner & Smith Inc. has agreed to pay the Financial Industry Regulatory Authority $2 million to settle allegations of trade-reporting compliance shortcomings, including its alleged failure to properly trace millions of relevant retail customer transactions for over a decade.

  • October 01, 2024

    Lordstown Brass Beat Investor Suit Over Failed Foxconn Deal

    An Ohio federal judge on Monday freed current and former executives of Lordstown Motors Corp., now Nu Ride, from a proposed securities class action alleging they concealed problems ahead of a failed partnership with Taiwan-based Foxconn, saying delays and "other minor issues" didn't make general, positive statements inaccurate.

  • October 01, 2024

    CFTC Fines Barclays, 3 Others Over Swap Rule Violations

    Barclays Bank PLC on Tuesday agreed to pay the Commodity Futures Trading Commission $4 million for swap reporting violations, and three other swaps market participants copped to reporting and safeguards violations and agreed to pay more than $2 million combined in settlements that drew criticism from one commissioner.

  • October 01, 2024

    Peloton Beats Investor Suit Over COVID-19 Sales For Good

    Peloton has won the permanent dismissal of a shareholder suit accusing it of intentionally misleading investors to believe that its COVID-19 spike in demand was sustainable, with a New York federal judge saying the investors have not "articulated sufficient factual allegations to carry their assertions beyond the speculative level."

  • October 01, 2024

    Rocket Cos. Investors Lose Cert Bid In Post-Goldman Ruling

    A Michigan federal judge has declined to grant class status to Rocket Cos. investors suing over the company's post-pandemic loan portfolio, saying that optimistic statements about the firm's future were too generic to be relied upon in light of a recent U.S. Supreme Court ruling in Goldman Sachs' favor that dealt with a similar issue.

Expert Analysis

  • 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.

  • After A Brief Hiccup, The 'Rocket Docket' Soars Back To No. 1

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    The Eastern District of Virginia’s precipitous 2022 fall from its storied rocket docket status appears to have been a temporary aberration, as recent statistics reveal that the court is once again back on top as the fastest federal civil trial court in the nation, says Robert Tata at Hunton.

  • Takeaways From Regulators' £61.6M Citigroup Trading Fine

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    Following the Financial Conduct Authority and Prudential Regulation Authority’s recent significant fining of Citigroup for its catastrophic trading error, and with more enforcement likely, institutions should update their controls and ensure system warnings do not become routine and therefore disregarded, says Abdulali Jiwaji at Signature Litigation.

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