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Securities
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April 22, 2025
Kalshi, Crypto.com Fight Md. Regulator On Sports Contracts
Trading platform KalshiEx LLC and the derivatives platform owned by Crypto.com have each sued Maryland gaming regulators for allegedly preempting federal authority with directives to shut down sports event contracts the agency contends are unregistered wagers.
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April 22, 2025
Tivity Health Denied Win In Suit Over Nutrisystem Buy
Health program company Tivity Health was largely denied a summary judgment win over investors who sued the company over its troubled $1.3 billion purchase of Nutrisystem, according to an order from a Tennessee federal judge who ruled Tivity's duty to disclose certain information is still debatable.
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April 22, 2025
Deutsche Bank Appeals Conn. Asset Price Suit Loss
Deutsche Bank AG has asked a Connecticut appeals court to hear its case against Norwegian billionaire Alexander Vik and his daughter Caroline after a lower court ruled that it cannot relitigate its claims that the Viks purposely devalued certain assets to avoid paying a $243 million debt.
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April 22, 2025
Intel Asks For Final End To Claims Over Chipmaking Problems
Intel Corp. has told a California federal judge that a group of investors on a second try failed again to show that the company concealed problems in its domestic computer chipmaking business before posting results on Aug. 1 that led to its largest single-day stock decline since 1985.
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April 22, 2025
Scott + Scott To Lead Medical Cannabis REIT Securities Suit
A Maryland federal judge picked Scott + Scott as the lead class counsel Tuesday for a proposed securities class action accusing a medical cannabis-focused real estate investment trust of misleading shareholders about its declining rents, declining property management fees and the state of its leasing operations.
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April 22, 2025
Santos, Attys Say Social Media Posts Don't Negate Remorse
George Santos and his attorneys wrote to a Brooklyn federal judge saying the former Congressman's posts on social media claiming to be a victim of government persecution don't negate the remorse he feels for stealing from campaign donors and inflating fundraising numbers.
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April 22, 2025
Jay Clayton Sworn In As Interim US Atty For SDNY
Jay Clayton, President Donald Trump's pick to lead the U.S. Attorney's Office for the Southern District of New York, was sworn in Tuesday as the top federal prosecutor in Manhattan on an interim basis while he awaits confirmation from the Senate.
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April 22, 2025
Court Appoints Monitor In SEC's $1B PE Fraud Case
A Florida federal judge has appointed a founding partner of a Florida law firm to serve as a monitor in the U.S. Securities and Exchange Commission's suit against a private equity firm it says defrauded investors in a $1 billion fund focused on real estate and small business funding.
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April 22, 2025
JPMorgan Fined $650K Over Regulation M Reporting Failures
The Financial Industry Regulatory Authority and several stock exchanges, including Nasdaq and some New York Stock Exchange entities, teamed up to fine JPMorgan $650,000 for failing to file hundreds of required reports under Regulation M, which makes it unlawful for brokers to trade on certain securities during a restricted period.
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April 22, 2025
Del. Justices Order Matterport CEO Cash-Out Recalculation
Delaware's Supreme Court reversed and ordered a recalculation Tuesday for a $79 million Court of Chancery ruling on additional damages and interest due a former CEO of 3D building imaging company Matterport Inc. who challenged his $80 million cash-out in a 2021 go-public sale.
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April 22, 2025
Wells Fargo 'Sham' Hiring Suit Delayed For Mediation
A California federal judge agreed to move deadlines in a proposed investor class action accusing Wells Fargo of conducting "sham" job interviews to meet diversity targets that later triggered a stock drop when the practice was revealed, citing plans to attempt mediation in May.
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April 22, 2025
Morgan Lewis Hires Ex-CFTC General Counsel
Robert A. Schwartz, the former general counsel of the U.S. Commodity Futures Trading Commission, has joined Morgan Lewis & Bockius LLP as a partner in its investment management practice, the firm announced Tuesday.
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April 21, 2025
Binance Crypto Suit Sent To Florida To Avoid Duplication
A Washington federal judge on Monday transferred to Florida a proposed class action over Binance's alleged role in laundering stolen cryptocurrency, finding that the case heavily overlapped with a lawsuit filed earlier in the Sunshine State that was sent to arbitration.
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April 21, 2025
NJ Investment Firm Accused Of Aiding Alleged $300M Ponzi
A New Jersey investment adviser has been hit with a proposed class action claiming the company helped recruit marks for what the U.S. Securities and Exchange Commission has called a $300 million Ponzi scheme, making it at least the second company to be sued for its alleged connections to the fraud operation.
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April 21, 2025
CFTC's Crypto Shift Leaves KuCoin Settlement In Limbo
A recent shift in the U.S. Commodity Futures Trading Commission's stance toward the cryptocurrency industry has cast a cloud over the agency's prospective settlement with bitcoin exchange KuCoin, with an agency attorney telling a New York federal judge it was unlikely the deal would be approved by the commission "in the near term."
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April 21, 2025
Trump Media Exec Seeks Penalties In 'Frivolous' Hacking Suit
A board director for President Donald Trump's social media company and his associate urged a Florida federal court to impose sanctions in a "frivolous" lawsuit alleging they hacked a cloud server to steal documents used to oust the former CEO, saying their accusers can't show what information was allegedly taken.
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April 21, 2025
NJ Says KalshiEx Can't Rebrand Bets To Dodge Gambling Law
New Jersey regulators fired back at KalshiEx LLC's challenge to the state's block of the platform's sports event contracts, arguing the firm can't sidestep registration under the state's gambling laws "just by offering sports wagers in a different format."
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April 21, 2025
Paramount Global, Stockholders Pause Skydance Doc Suit
Paramount Global and three pension fund stockholders have agreed to pause a suit seeking records on the entertainment giant's planned $8 billion merger with Skydance Media pending further negotiations or closing on the deal.
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April 21, 2025
EV Chipmaker Wolfspeed's Execs Sued For Overstated Growth
Executives and directors of North Carolina-based electric vehicle chip manufacturer Wolfspeed Inc. were hit with a derivative suit on Monday alleging they overstated the potential effects a fabrication facility would have on increasing Wolfspeed's revenue and output.
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April 21, 2025
Crypto Cos. Sued Over 'Covert' Meme Coin 'Pump-And-Dump'
A proposed securities class action in New York federal court is accusing a crypto platform, a venture capital firm and their executives of a "covertly orchestrated" scheme to pump and dump a token affiliated with a newly launched meme coin exchange.
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April 21, 2025
Asset Manager Admits Stealing $3M From Real Estate Cos.
A Connecticut asset manager who helped clients buy and manage real estate portfolios has pled guilty to stealing nearly $3 million from entities in five states to fund his day trading endeavors, federal prosecutors announced Monday.
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April 21, 2025
DOL Tells 5th Circ. It May Rescind Biden-Era ESG Rule
The U.S. Department of Labor told the Fifth Circuit on Monday it's considering rescinding a Biden-era rule allowing retirement fiduciaries to consider issues like climate change and social justice when choosing investments, according to filings in a suit challenging the rule from conservative states and energy companies.
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April 21, 2025
Imprisoned Ex-Pharma Exec Must Pay SEC $1.8M
The former leader of a pharmaceutical company currently serving a 20-month sentence for using a fake name to get around a U.S. Securities and Exchange Commission ban has been ordered to cough up $1.8 million within 90 days of his release or be ready to explain why he cannot.
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April 21, 2025
YouTube's 'Nelk Boys' Want Suit Over NFTs Tossed
A pair of influencers behind the YouTube channel "Nelk Boys" asked a California federal judge to toss a lawsuit brought by a buyer of their crypto product who claimed the promised benefits never materialized, arguing the complaint does not show the defendants made any claims that have not or will not be fulfilled.
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April 21, 2025
Judge Blocks Pot Co. CEO's Bid To Enforce $1.5M Settlement
The founder of a defunct marijuana greenhouse leasing business cannot reopen an investor class action to enforce a $1.5 million settlement and declare a related bankruptcy action unlawful, a Colorado federal judge has ruled, finding that he has already filed a separate lawsuit asking for the same things.
Expert Analysis
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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SEC Confidential Review Process Provides Issuers Flexibility
The U.S. Securities and Exchange Commission's recently announced enhancements to the process for confidentially submitting draft registration statements will be immediately impactful for issuers seeking to access the public capital markets, and should provide more grounds to explore and plan public offerings, say attorneys at Lowenstein Sandler.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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How Del. Law Rework Limits Corporate Records Requests
Newly enacted amendments to a section of the Delaware General Corporation Law that allows stockholders and beneficial owners to demand inspection of Delaware corporations' books and records likely curtails the scope of such inspections and aids defendants in framing motions to dismiss at the pleading stage, says Jonathan Richman at Brown Rudnick.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q1
Among the most notable developments in California banking in the first quarter of the year, regulators and legislators issued regulations interpreting debt collection laws, stepped up enforcement actions, and expanded consumer protections for those affected by wildfires, says Stephen Britt at Severson & Werson.
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How The ESG Investing Rule Survived Loper Bright, For Now
A Texas federal court's recent decision in Utah v. Micone upholding the U.S. Department of Labor's 2022 ESG investing rule highlights how regulations can withstand the post-Loper Bright landscape when an agency's interpretation of its statutorily determined boundaries is not granted deference, say attorneys at Miller & Chevalier.