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Securities
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February 10, 2025
FTX Having Trouble Serving Binance With Ch. 11 Lawsuit
The estate of fallen cryptocurrency exchange FTX told a Delaware bankruptcy judge late Friday that its attorneys haven't yet been able to serve Binance and its former CEO Changpeng Zhao a lawsuit seeking to recover nearly $1.8 billion that FTX is accused of illegally transferring prior to its collapse two years ago.
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February 10, 2025
Merrill Lynch Objects To New Discovery Bid In Stock Loan Suit
Merrill Lynch told a New York federal court it should deny investors' request for supplemental transaction data in their suit alleging major banks colluded to avoid modernizing the stock loan market, arguing that the discovery period has closed, and there are no legitimate reasons to grant the "burdensome" request.
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February 10, 2025
Feds Nab Plea In Bitcoin-Boosting Hack Of SEC X Account
An Alabama man on Monday pled guilty to being involved with the hack of the U.S. Securities and Exchange Commission's X account last year, admitting to a single conspiracy charge and agreeing to forfeit $50,000 he made from the scheme that briefly bumped the price of bitcoin.
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February 10, 2025
Pharma Co. Misled Investors On Depression Drug, Suit Says
Brain disease drugmaker Neumora Therapeutics Inc. has been hit with a proposed shareholder class action alleging that the company and its initial public offering underwriters failed to disclose prior to the $250 million IPO that Neumora's clinical trial for a depression treatment was very unlikely to yield promising results.
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February 10, 2025
Merrill Lynch $20M Bias Deal Should Be Approved, Judge Says
A U.S. magistrate judge has recommended granting the first green light to a $20 million settlement that will resolve discrimination and retaliation claims launched against Merrill Lynch by a proposed class of nearly 1,400 Black financial advisers who claimed they received less pay and promotions compared to their white counterparts.
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February 10, 2025
NY Funds Say Paramount 'Bound' To Mull $13.5B Sale Option
Five big New York public pension funds argued in a newly unsealed Delaware court filing on Monday that a Paramount special committee breached its fiduciary duties by neglecting a $13.5 billion company sale offer and called for a Court of Chancery order compelling evaluation of the deal.
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February 10, 2025
EV Biz Faraday Future Wins Chancery Toss Of Go-Public Suit
Delaware's Court of Chancery on Monday tossed a proposed class action challenging electric vehicle maker Faraday Future's $1 billion take-public deal, saying that a stipulation in a $7.5 million settlement reached in a related case "unambiguously" precluded stockholders' claims against the California-based startup.
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February 10, 2025
Trump Stops Enforcement Of Foreign Corrupt Practices Act
President Donald Trump signed an executive order Monday that puts a "pause" on enforcement of the federal Foreign Corrupt Practices Act, saying the law against U.S. companies bribing foreign officials to win business in other countries has made American companies less competitive.
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February 10, 2025
Grayscale Beats Bitcoin Rival's $2M Unfair Practices Suit
A Connecticut state court judge has handed digital asset management firm Grayscale Investments LLC a summary judgment win on a smaller rival's $2 million unfair trade practices suit over a bitcoin feud, finding that the relevant state law does not apply to the dispute.
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February 10, 2025
Home Generator Maker Beats Suit Over COVID Sales Bust
Power generator maker Generac Holdings Inc. and its top brass have beaten for now a proposed shareholder class action over Generac's alleged failure to keep up with a surge in business during the COVID-19 pandemic, with a Wisconsin federal judge saying, "misfortune does not necessarily equate with fraud."
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February 10, 2025
SEC Grants Short-Selling Disclosure Reprieve, CAT Relief
The U.S. Securities and Exchange Commission is providing a temporary exemption in order to allow investment managers more time to comply with new rules requiring increased disclosure on short selling, and separately said it will no longer require certain personally identifiable information to be reported to the market database known as the Consolidated Audit Trail.
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February 10, 2025
Conn. Judge Flags 'Extraordinary' Error In $10.4M Fraud Suit
A Connecticut appellate judge expressed surprise Monday that for more than five years, two teams of seasoned litigators failed to notice an error on the docket of a securities fraud lawsuit before the mistake led to a judge — and not a jury — hearing the case and issuing a $10.4 million award to investment banking firm FIH LLC.
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February 10, 2025
Tesla Seeks Chancery Toss Of Challenge Over Texas Move
Delaware's chancellor said Monday she would issue a "short" letter reply to calls for dismissal of a stockholder claim that Tesla Inc. failed to secure a required supermajority vote to move its charter to Texas, following arguments that the court recently approved a simple majority vote in a similar case.
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February 10, 2025
Trump Buyout Plan Still On Hold As Unions Cite 'Confusion'
A Boston federal judge on Monday extended his hold on President Donald Trump's federal worker buyout program as he weighs a request from unions to block the so-called Fork Directive, which promises months of pay to government employees who resign their posts.
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February 10, 2025
Ex-SEC Atty's Bias Case Not Holding, Despite Deal Talks
A Pennsylvania federal judge refused Friday to delay the upcoming trial in a lawsuit filed by a former U.S. Securities and Exchange Commission lawyer who sued the agency for racial and age discrimination, despite a letter to the court saying that the parties are making progress toward a settlement.
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February 10, 2025
2nd Circ. Backs UBS In Retaliation Case That Justices Revived
A split Second Circuit panel sided Monday with UBS in a whistleblower case that a fired worker managed to get the U.S. Supreme Court to revive, ruling that the jury instructions that preceded the worker's trial court win were too unclear to let his victory stand.
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February 10, 2025
9th Circ. Tosses Slack Investor Suit After High Court Battle
The Ninth Circuit on Monday released Slack Technologies Inc. from an investor dispute that was previously ruled on by the U.S. Supreme Court, with the circuit court going a step further than the high court in ruling that none of the suing investors' claims were salvageable due to the unique way that Slack went public.
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February 10, 2025
'Stand Down': CFPB's Acting Chief Pulls Employees Off Job
The Trump administration's acting Consumer Financial Protection Bureau Director Russell Vought told agency staff on Monday to "stand down" from doing any work, the latest in a series of rapid-fire moves that are sidelining the agency and prompting employees to sue.
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February 09, 2025
CFPB Suspends Activity, Closes HQ As New Chief Arrives
The Trump administration escalated efforts over the weekend to power down the Consumer Financial Protection Bureau, canceling the agency's next funding draw, suspending its examination activity and ordering a closure of its main office.
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February 07, 2025
Chancery Tosses $3.4B Hertz Stock Warrant Redemption Suit
Delaware's Court of Chancery dismissed a suit Friday filed by two Hertz institutional investors accusing the company of relying on an impermissible reinterpretation of a warrant agreement to reject a redemption demand purportedly triggered by the company's post-Chapter 11 recapitalization, finding the plaintiffs' interpretation of the agreement leads to "absurd results."
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February 07, 2025
Maxeon Investors Push To Keep Exchange Act Suit Alive
The lead plaintiff in a proposed class action against Maxeon Solar Technologies Ltd. urged a California federal judge to reject the company's bid to escape the suit as well as its "fanciful" explanations for a two-day stock plunge that harmed shareholders.
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February 07, 2025
SPAC Market Hums Again Following Multiyear Downturn
Special purpose acquisition companies are once again asserting their presence in the capital markets and M&A landscape, forming new vehicles at the highest pace in three years — albeit in leaner form than in the last cycle, when many deals ended in busts.
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February 07, 2025
SafeMoon CEO Says Crypto Policy Shifts Warrant Trial Delay
The crypto executive behind the alleged SafeMoon fraud is fighting to delay his trial by a month in the hopes that a new approach to cryptocurrency by the Trump administration could ax the securities fraud charge from the counts against him.
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February 07, 2025
Coinbase Can't Yet Escape Class Claims Over Crypto Sales
Coinbase users can move forward with class claims that the cryptocurrency firm operated as an unregistered securities exchange after a New York federal judge ruled Friday that the Second Circuit prevented him from shuttering the case without first determining whether Coinbase was the seller of the tokens trading on its platform.
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February 07, 2025
Ex-Broker Seeks Court Win In Bid To Dismantle FINRA
A former stockbroker who is fighting a lifetime industry ban has urged a North Carolina federal judge to grant him a win in his suit attempting to unravel the power of the Financial Industry Regulatory Authority, saying the organization is unconstitutionally structured because it deprives him of his right to a jury trial and due process, among other things.
Expert Analysis
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Del. Dispatch: Clarifying Charter Amendment Vote Obligations
The Delaware Court of Chancery recently held in Gunderson v. The Trade Desk that only a majority stockholder vote is needed to approve a company's proposed reincorporation from Delaware to Nevada through a corporate conversion, which bodes well for other companies also considering leaving the First State, say attorneys at Fried Frank.
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What's Still Up In The Air After Ruling On Calif. Climate Laws
A California federal court's recent ruling on challenges to California's sweeping climate disclosure laws resolved some issues, but allows litigation over the constitutionality of the laws to continue, and leaves many important questions on what entities will need to do to comply with the laws unanswered, say attorneys at Paul Hastings.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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Navigating DOJ's Patchwork Whistleblower Regime
In the past few months, the U.S. Department of Justice and several individual U.S. attorney’s offices have issued different pilot programs aimed at incentivizing individuals to blow the whistle on misconduct, but this piecemeal approach may create confusion and suboptimal outcomes, say attorneys at BakerHostetler.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Look At Similarities Between SOX And SEC's Cyber Rule
Just as the Sarbanes-Oxley Act paved the way for greater transparency and accountability in financial reporting, the SEC's cybersecurity rule is doing much the same for cybersecurity, ensuring that companies are resilient in the face of growing cyber threats, says Padraic O'Reilly at CyberSaint.
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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.