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Securities
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January 27, 2025
Lummis Tells 2nd Circ. SEC 'Flouts' Congress In Crypto Cases
Sen. Cynthia Lummis, R.-Wyo., told the Second Circuit that the U.S. Securities and Exchange Commission's ongoing suit against Coinbase Inc. has complicated congressional efforts to set rules for digital assets, filing her support for the crypto exchange's bid for a quick ruling from the appeals court on how securities laws apply to the transactions on its platform.
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January 27, 2025
Palo Alto Networks Inside-Trader Wins Resentencing At 9th Circ.
The Ninth Circuit on Monday upheld securities fraud convictions of a former Palo Alto Networks engineer for raking in $7 million by trading on stolen inside information but remanded the case for resentencing, saying a lower court was wrong to use his trading gains to estimate the cybersecurity company's loss.
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January 27, 2025
Crypto Exchange KuCoin Pleads Out, Agrees To Pay $297M
Cryptocurrency exchange KuCoin on Monday pled guilty and agreed to pay $297 million for failing to implement anti-money laundering protocols and allowing more than $5 billion worth of criminal funds to flow through its trading platform.
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January 27, 2025
Fund Tells Jury No Need To Return $11M Short-Swing Profits
A hedge fund told a Denver federal jury Monday that the $11 million it earned from the short-swing sales of a biopharmaceutical company's stock doesn't need to be returned because the transactions fall under an exception to securities law on insider trading.
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January 27, 2025
Advertising Platform's Changes Hurt Investors, Suit Says
Advertising platform Cardlytics Inc. faces a proposed class action alleging that it failed to warn shareholders that fast-paced changes to its technology could impact its ability to deliver on advertiser budgets, hurting investors when it disclosed an associated earnings miss.
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January 27, 2025
Civil Liberties Org. Says FDIC's Court 'Eviscerates' Civil Rights
The New Civil Liberties Alliance told the Fifth Circuit on Monday to spurn the Federal Deposit Insurance Corp.'s attempt to level a fraud judgment against a banker, saying the agency's in-house court sidesteps the constitutional right to a jury trial.
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January 27, 2025
2 Firms Want To Co-Lead Humacyte Investor Suit
Hagens Berman Sobol Shapiro LLP and Pomerantz LLP have asked to co-lead a proposed class of Humacyte Inc. investors alleging that the company failed to disclose quality assurance issues at its manufacturing facilities, which delayed regulatory review for its bioengineered blood vessel product candidate.
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January 27, 2025
Chancery Orders Tech Co. Trust Dissolved, Sanctions Trustee
Citing a trustee's repeated, improper attempts to transfer interests now held in a statutory trust formed to hold an Idaho tech company's shares, a Delaware vice chancellor on Monday ordered the trust dissolved and the trustee barred from managing any other trust or entity holding the company's stock.
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January 27, 2025
Yen Libor-Rigging Case Lands Before 2nd Circ. Again
Institutional investors urge the Second Circuit to again revive a lawsuit accusing Bank of America, UBS and others of rigging the interbank borrowing rate for Japanese yen, arguing in a brief Monday that a lower court judge dismissed the case on "obviously erroneous grounds with little (if any) supporting analysis."
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January 27, 2025
Archegos CFO Gets 8 Years For $100M Stock Fraud Ploy
The former chief financial officer of defunct hedge fund Archegos on Monday was sentenced in New York federal court to eight years in prison for his role in a $100 billion scheme to manipulate the market and defraud banks.
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January 27, 2025
SEC OKs Nasdaq Pulling Diversity Rules After 5th Circ. Loss
The U.S. Securities and Exchange Commission has greenlighted Nasdaq's proposal to undo the exchange's rules requiring that companies listed on it disclose board diversity data, following a narrow, en banc ruling from the Fifth Circuit last month finding the rules ran afoul of federal securities law.
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January 27, 2025
Twitter Investor Can't Recoup Stock Sale Loss, Musk Atty Says
An attorney for Elon Musk and Twitter successor X Corp. argued on Monday that seller's remorse prompted a former investor in the social media giant to launch an unsupportable, pro se lawsuit in Delaware's Court of Chancery to recover losses from his premature sale of the taken-private company's stock.
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January 27, 2025
So-Called 'Face' Of $14M Crypto Ponzi Scheme Gets 2½ Years
A Manhattan federal judge sentenced a Florida house cleaner to 2½ years in prison Monday for her role in promoting the $14 million, international Forcount cryptocurrency Ponzi scheme to fellow Latinos over three years.
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January 27, 2025
NFL Union, DraftKings Reach Settlement In NFT Licensing Suit
The NFL Players Association and DraftKings Inc. asked a New York federal judge Monday to pause a lawsuit that accused the betting platform of failing to follow through on a licensing agreement related to nonfungible tokens while they iron out details of a settlement.
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January 27, 2025
Investors Sue Pharma Co. After Cancer Drug Trial Termination
Prostate cancer treatment developer ESSA Pharma Inc. has been hit with a proposed shareholder class action in Wisconsin federal court alleging company shares fell over 70% after the company announced that it was terminating a clinical trial when it discovered its lead product candidate was not as effective as an existing treatment for certain cancer patients.
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January 27, 2025
Ga. Accountant Must Face Fintech Co.'s Share Price Suit
A Georgia federal judge has declined to dismiss most of a British fintech company's suit against Atlanta-based accounting firm Frazier & Deeter LLC over an allegedly bungled stock valuation, ruling Monday that a hold harmless clause in the companies' contract was largely unenforceable.
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January 27, 2025
Senate Confirms Bessent As Treasury Secretary
A bipartisan majority of senators voted Monday to confirm billionaire hedge fund manager Scott Bessent as Treasury secretary, putting in place a key member of President Donald Trump's Cabinet.
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January 27, 2025
Novo Nordisk's Obesity Drug Study Allegedly Duped Investors
Novo Nordisk was hit with a proposed securities class action in New Jersey federal court Friday, accusing the drugmaker of duping investors about its new weight loss drug CagriSema by failing to disclose that obesity patients were taking different dosages in a clinical study, which allegedly skewed results.
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January 27, 2025
Deutsche Bank Can't Add Norway Rulings To Asset Sale Fight
A Connecticut state judge has rejected Deutsche Bank AG's request to add a series of rulings by Norwegian courts into the state court's record while the bank pursues claims that Norwegian billionaire Alexander Vik and his daughter sabotaged an asset sale — rulings that the bank initially said were irrelevant.
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January 27, 2025
Meet The Attys Surrounding Pa. Wealth Manager In Fraud Case
By the time Scott Mason and his company Rubicon Wealth Management were hit with criminal and regulatory enforcement claims alleging he stole $20 million from clients, the suburban Philadelphia wealth manager was already defending multiple civil lawsuits in Pennsylvania state court.
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January 27, 2025
SCOTUSblog Publisher Pleads Not Guilty To Tax Crimes
U.S. Supreme Court advocate and SCOTUSblog co-founder Tom Goldstein pled not guilty in Maryland federal court on Monday to charges that he schemed to evade taxes and used funds from his boutique law firm to cover gambling debts.
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January 27, 2025
High Court Skips Golf Course Investors' Class Cert. Bid
The U.S. Supreme Court on Monday rejected a review petition filed by Chinese investors who wanted class certification for their Ponzi scheme suit against a Chinese citizen accused of misusing the investors' money to buy multiple golf courses and other properties in South Carolina.
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January 27, 2025
Biz Adviser, Relative Beat SEC's Investment Fraud Claims
A Boston federal judge rejected the U.S. Securities and Exchange Commission's claims that a business adviser and his brother-in-law traded penny stocks to further a $2.3 million fraud scheme.
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January 27, 2025
Baker Botts Partners Join Boutique Litigation Firm In DC
A pair of powerhouse litigators from Baker Botts LLP who scored a nearly billion-dollar verdict in a complex securities fraud case have stepped away from BigLaw to join Washington, D.C.-based boutique litigation firm Bourelly George & Brodey PLLC, launched less than a year ago.
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January 27, 2025
Trader Faces US Extradition Over $10M Securities Fraud
A trader wanted for running a "pump and dump" scheme that generated more than $10 million in unlawful stock sales will face extradition to the U.S. at a London court hearing in June, it was confirmed on Monday.
Expert Analysis
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Trump Rollback Of Biden Enviro Policies: What To Expect
Donald Trump's upcoming second presidential term will usher significant shifts in U.S. environmental and natural resource law and policy — and while the Biden administration is racing to secure its legacy, the incoming Trump administration is making plans to dramatically roll back most, if not all, of Biden's environmental initiatives, say attorneys at Beveridge & Diamond.
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Class Actions At The Circuit Courts: November Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses six federal court decisions that touch on Rule 23 of the Federal Rules of Civil Procedure, and when individual inquiries are needed to prove economic loss.
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5 Areas Congress May Investigate After GOP Election Wins
With Republicans poised to take control of Congress in addition to the executive branch next year, private companies can expect an unprecedented uptick in congressional investigations focused on five key areas, including cryptocurrency and healthcare, say attorneys at Cahill Gordon.
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Trump's 2nd Term May Be A Boost To Banking Industry
President-elect Donald Trump's personnel appointments could be instrumental in reshaping the financial regulatory landscape during his second administration, likely allowing for greater merger activity and halting or undoing some of the Biden administration's more restrictive financial services policies, say attorneys at Debevoise.
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Legislation Most Likely To Pass In Lame Duck Session
As Congress begins its five-week post-election lame duck session, attorneys at Greenberg Traurig break down the legislative priorities and which proposals can be expected to pass.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Dissecting New Circuit Split Over SEC's Proxy Adviser Rule
The Sixth Circuit recently upheld the U.S. Securities and Exchange Commission's partial rescission of enhanced conflict-of-interest disclosure requirements for proxy voting advice businesses, creating a circuit split over broader questions concerning the standard for assessing the legality of agency actions in general, say attorneys at Cahill Gordon.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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Parsing SEC's Emerging Trend Of Section 204A Enforcement
The U.S. Securities and Exchange Commission recently settled with Sound Point Capital Management for violating Section 204A of the Investment Advisers Act, adding to a slew of charges against investment advisers that allegedly failed to safeguard material nonpublic information, say attorneys at Cozen O'Connor.
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SEC Rulemaking Radar: The View From Election Day
The U.S. Securities and Exchange Commission seems poised to tackle many of the remaining items on its most recent Regulatory Flexibility Agenda by early 2025, despite the presidential election and the potential for a new chair to be nominated soon, say attorneys at Goodwin.