Securities

  • June 12, 2024

    Fund Manager Cops To $3M Fraud Scheme

    A New York fund manager on Wednesday admitted to defrauding investors out of at least $3 million through his investment management firm, in a scheme that has been ongoing for the last three years.

  • June 12, 2024

    Lies At Heart Of Fraud Case Over COVID Test Kits, Jurors Told

    The retrial of a securities fraud case over a COVID test kit deal that never materialized will center on lies, according to opening statements delivered in New Jersey federal court Wednesday.

  • June 12, 2024

    Oppenheimer, Cybersecurity Co. Settle $12M SPAC Bill Spat

    Oppenheimer & Co. and an Israeli cybersecurity company have reached a settlement to end claims that the company refused to pay $12 million in fees for SPAC merger-related services the investment bank provided, according to a New York federal court filing made Wednesday.

  • June 12, 2024

    FDIC Head Must Go To Change Status Quo, GOP Reps Say

    House Republicans on Wednesday criticized Federal Deposit Insurance Corp. Chair Martin Gruenberg for not immediately resigning in the wake of a probe of the agency's workplace culture, but some Democrats took issue with the scope of a report on the investigation's findings while applauding his rumored successor.

  • June 12, 2024

    'Tiger-Wolf' Trader Cops To Wire Fraud For $700K Scheme

    A 26-year-old Charlotte man on Wednesday pled guilty to federal prosecutors' claims that he defrauded over 100 would-be investors in his purported hedge fund, Tiger-Wolf Capital LLC, spending much of their money on his own lavish lifestyle.

  • June 12, 2024

    2nd Circ. Backs Brokerage In Suit Over Biotech's Failed IPO

    The Second Circuit on Wednesday declined to reinstate a Texas company's suit against an investment brokerage that advised biotech Inpellis on an initial public offering that failed and sent the company to file Chapter 7, ruling a lower court rightly found a global settlement eclipsed the need for a jury trial.

  • June 12, 2024

    Cabot Execs Misled Investors On Fracking Impact, Suit Says

    Insiders of Cabot Oil & Gas Corp., now known as Coterra Energy Inc., were hit with a shareholder derivative suit alleging they did not disclose that Cabot was not safeguarding drinking water from the company's fracking operations, which eventually led to criminal charges and reputational and financial damages.

  • June 12, 2024

    CalPERS Opposes $5B Atty Fee In Musk Pay Fight

    The nation's largest public pension fund lined up Wednesday against a proposed $5 billion-plus fee for stockholder attorneys whose Delaware Court of Chancery suit blocked Tesla CEO Elon Musk's one-time $56 billion compensation plan, one day ahead of a Tesla shareholder vote to resurrect the pay deal.

  • June 12, 2024

    GOP, Dems Fight Over Climate Investment 'Collusion'

    House Judiciary Democrats and Republicans traded barbs and competing staff reports Wednesday over investment industry initiatives to combat climate change that the GOP called a "climate cartel" and their partisan rivals said is simply responsible, and voluntary, investing.

  • June 12, 2024

    Judge Won't Trim $18M Shareholder Settlement Coverage Suit

    A Pennsylvania federal judge declined to toss certain bad faith allegations against an insurer accused of wrongfully denying coverage for an $18 million settlement between an asset management company and a group of shareholders, adopting a magistrate judge's recommendation that the company sufficiently alleged its claim of bad faith.

  • June 12, 2024

    Lumen Board Faces Investor Suit Over Lead Cable Liability

    The board members of Louisiana-headquartered telecommunications company Lumen Technologies Inc. face a shareholder derivative suit alleging they breached their fiduciary duties following revelations about, and subsequent scrutiny of, lead components of the company's physical cable networks.

  • June 12, 2024

    SPAC Dealmakers Expect Modest Pickup After Market Bottom

    Market professionals expect a slow pickup in deals involving special-purpose acquisition companies starting in the second half of 2024, predicting on Wednesday that a leaner market will emerge following the recent crash and imposition of tighter regulations.

  • June 12, 2024

    Directors Of Defunct Med Tech SPAC Seek Toss Of Del. Suit

    Directors of a special purpose acquisition company that merged with now-defunct medical technology company Better Therapeutics Inc. urged Delaware's Court of Chancery on Wednesday to toss a shareholder's suit about the $15 million de-SPAC merger, saying it wasn't like other problematic SPAC deals.

  • June 12, 2024

    SEC Says Texas Crypto Cases Aren't Related To Fraud Suit

    The U.S. Securities and Exchange Commission asked a Texas federal judge not to stay its case accusing a crypto asset mining and hosting company of securities fraud, saying in a Wednesday brief that the judge's concerns about other pending cases creating "moving-target precedents" were unfounded.

  • June 12, 2024

    Okta, Investors Reach $60M Deal In Cyberattack Coverup Suit

    Okta Inc. investors have asked a California federal judge to give the first OK to a $60 million settlement reached in a suit alleging the software company misled the certified class about a 2022 cyberattack.

  • June 12, 2024

    QuantumScape Shareholders Seek Initial OK For $47.5M Deal

    Investors of QuantumScape have asked a California federal judge to give the first green light to a $47.5 million settlement to end their class action suit, which alleged published articles revealed the company made false statements about the quality of its batteries and the tests it used to measure performance.

  • June 12, 2024

    Forte Biosciences Reaches $2M Deal To End Chancery Suit

    Clinical-stage biopharmaceutical company Forte Biosciences has reached a multipart, $2 million concession-plus-cash settlement in Delaware's Court of Chancery with a private investment fund that ran a board proxy contest after its calls to liquidate the business were met with poison pill pushback.

  • June 12, 2024

    Loan Co. Owners Say SEC Improperly Expanded Receivership

    A couple accused of scamming 1,200 investors out of nearly half a billion dollars asked the Eleventh Circuit on Wednesday to reverse an order expanding a receivership of their merchant loan business, arguing their due process rights were violated when their personal assets were added to the receivership.

  • June 12, 2024

    Freshfields Adds Ex-Kirkland, Davis Polk Attys In New York

    Freshfields Bruckhaus Deringer LLP bolstered its corporate offerings in New York this week with M&A partner Joshua Ayal and capital markets partner Jacqueline Marino.

  • June 12, 2024

    Terraform To Settle With SEC For $4.5B After Fraud Trial

    Crypto firm Terraform Labs has agreed to a $4.47 billion settlement with the U.S. Securities and Exchange Commission after a Manhattan jury found the firm and its founder Do Kwon liable for fraud in April.

  • June 12, 2024

    Labaton Keller Sucharow Adds Securities Litigator In NY

    Lauren Ormsbee did not grow up dreaming of fighting securities fraud, but that's the very role she's spent her career in, including in her new position as a partner and litigation team leader at Labaton Keller Sucharow LLP.

  • June 12, 2024

    Rimon Hires 5 Partners, Expands Global Transactions Team

    A team of five partners focusing on transactional, finance and corporate matters has joined Rimon PC across several countries to represent investors, asset managers, credit funds and other clients.

  • June 12, 2024

    GameStop Raises More Than $2.1B In Share Sale

    GameStop Corp. has raised over $2.1 billion as part of a share sale, with plans to use the proceeds for general corporate purposes such as future acquisitions or investments.

  • June 12, 2024

    Ex-Supreme Court Clerk, Federal Atty Joins McGuireWoods

    McGuireWoods LLP announced the addition of another former federal prosecutor to its ranks on Wednesday, this time a product liability expert from Perkins Coie LLP who advises companies on various disputes and government investigations.

  • June 12, 2024

    Shareholders To Settle Discovery-AT&T Merger Suit In Del.

    Former shareholders of Discovery Inc. who sued in Delaware's Court of Chancery over the media entertainment company's $43 billion merger with AT&T in 2022 have agreed to settle their class action and intend to finalize settlement documentation by July 5, the parties told the court late on Tuesday.

Expert Analysis

  • Beware Shifting Provisions In Middle-Market Loan Documents

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    In recent years, many credit facility provisions previously considered to be market standard have been negotiated, often turning in favor of borrowers, demanding renewed diligence from workout officers and restructuring counsel operating in the middle market, say attorneys at Crowell & Moring.

  • How SEC Could Tackle AI Regulations On Brokers, Advisers

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    The U.S. Securities and Exchange Commission held an open meeting of its Investor Advisory Committee on June 6 to review the use of artificial intelligence in investment decision making, showing that regulators are being careful not to stifle innovation or implement rules that will quickly be made irrelevant after their passage, says Brian Korn at Manatt Phelps.

  • Litigation Inspiration: Attys Can Be Heroic Like Olympians

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    Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.

  • A Deep Dive Into The Evolving World Of ESG Ratings

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    Attorneys at Mintz discuss the salience of environmental, social and governance ratings in corporate circles in recent years, and consider certain methodologies underlying their calculation for professionals, as well as issues concerning the ESG ratings and products themselves.

  • What TikTok's Race Against The Clock Teaches Chinese Firms

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    The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.

  • Lean Into The 'Great Restoration' To Retain Legal Talent

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    As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.

  • What The NYSE Proposed Delisting Rule Could Mean For Cos.

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    The New York Stock Exchange's recently proposed rule would provide the exchange with discretionary authority to commence delisting proceedings for a company substantially shifting its primary business focus, raising concerns for NYSE-listed companies over the exact definition of the exchange's proposed "substantially different" standard, say attorneys at Winston & Strawn.

  • 9th Circ. Ruling Broadens Sweep Of Securities 'Solicitation'

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    The Ninth Circuit's recent revival of a putative securities fraud class action against Genius Brands for hiring a stock promoter to write favorable articles about it shows that companies should view "solicitation" broadly in considering whether they may have paid someone to urge an investor to purchase a security, say attorneys at Simpson Thacher.

  • Boeing Saga Underscores Need For Ethical Corporate Culture

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    In the wake of recent allegations about Boeing’s safety culture, and amid the U.S. Department of Justice’s new whistleblower incentives, business leaders should reinvigorate their emphasis on compliance by making clear that long-term profitability requires ethical business practices, says Maxwell Carr-Howard at Dentons.

  • Key Takeaways From 2024 Accountants' Liability Conference

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    At the recent annual Accountants' Liability Conference, regulators provided important commentary on new Public Company Accounting Oversight Board rulemaking and standard-setting initiatives, and emphasized regulatory priorities ranging from the tone at the top to alternative practice structures, say attorneys at Arnold & Porter.

  • A Closer Look At Feds' Proposed Banker Compensation Rule

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    A recently proposed rule to limit financial institutions' ability to award incentive-based compensation for risk-taking may progress through the rulemaking process slowly due to the sheer number of regulators collaborating on the rule and the number of issues under consideration, say attorneys at Troutman Pepper.

  • Series

    Fishing Makes Me A Better Lawyer

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    Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge​​​​​​​ at Robinson Bradshaw.

  • Parsing Controversial Del. General Corporation Law Proposals

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    In response to issues raised in three recent high-profile Delaware Court of Chancery decisions, many amendments to the Delaware General Corporation Law were quickly proposed that, if enacted, would bring significant changes likely to be hotly debated — and litigated — for the foreseeable future, say attorneys at Morgan Lewis.

  • 5th Circ. Venue-Transfer Cases Highlight Mandamus Limits

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    Three ongoing cases filed within the Fifth Circuit highlight an odd procedural wrinkle that may let district courts defy an appellate writ: orders granting transfer to out-of-circuit districts, but parties opposing intercircuit transfer can work around this hurdle to effective appellate review, says Charles Fowler at McKool Smith.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

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