Securities

  • May 17, 2024

    Crypto Firms Back FIT 21 Legislation Ahead Of House Vote

    The advocacy group Crypto Council for Innovation gathered 60 industry signatories for a Friday letter to House leaders expressing support for an anticipated vote on a framework to regulate digital assets.

  • May 17, 2024

    Feds Say Crypto Scammer Gave Nod To 'Seinfeld' Gag

    The lie that the character George Costanza told on "Seinfeld" appears to have inspired a New York City fraudster, as federal prosecutors announced Friday that a Brooklyn man admitted to running a million-dollar crypto and real estate scam in part through a phony company called Vandelay Contracting Corp.

  • May 17, 2024

    Fla. Investor Says Mining Co. Froze His Shares In Costly Error

    An investor and former employee of a Canadian mining company alleged breach of fiduciary duty and negligence against the business, saying in a lawsuit in Florida federal court that he was wrongfully prevented from selling his shares and lost money when the stock price dropped following an unfavorable arbitration ruling.

  • May 17, 2024

    Dolce & Gabbana Sued Over 'Worthless' Digital Outfit NFTs

    Luxury fashion brand Dolce & Gabbana has been hit with a shareholder class action in New York federal court, alleging it sold consumers "essentially worthless" non-fungible tokens that it misrepresented as high-value and abandoned the project while retaining over $25 million that was used to fund it.

  • May 17, 2024

    Credit Suisse Can't Reverse $21.3M Biz Loss Denial

    Credit Suisse cannot carry forward $21.3 million in business losses from 2015-2017 to its 2018 Michigan tax return, a state appeals court said, letting stand a ruling that the bank miscalculated its business income from those years on its returns.

  • May 17, 2024

    Cantor, Lutnick Strike Deal With Window SPAC Investors

    Shareholders of a special purpose acquisition company that took a now-bankrupt smart window manufacturer public have reached a tentative agreement to settle their proposed Delaware Chancery Court class action against Cantor Fitzgerald LP and its billionaire chair and CEO Howard Lutnick.

  • May 17, 2024

    Pot Co. Can Amend Complaint Or Reply To Dismissal Motion

    A Michigan federal judge has given a cannabis company three weeks to either amend its complaint against a former business partner or respond to a motion to dismiss its claims that the former business partner sabotaged a project by convincing investors to put their money elsewhere.

  • May 17, 2024

    Industry Emboldened After Justices Galvanize Agency Attacks

    In the year since the U.S. Supreme Court said "extraordinary" and "far-reaching" attacks on administrative enforcers can skip agency tribunals and go straight to federal district court, ambitious challenges to regulatory powers are rapidly gaining traction, and the high court is poised to put them on an even firmer footing.

  • May 17, 2024

    Calif. Man Who Cooperated In $5M Insider Case Avoids Prison

    A Manhattan federal judge on Friday allowed a California information technology pro to avoid prison for his role in a $5 million insider-trading ring involving laser company Lumentum Holdings Inc.'s secret merger plans, citing his extensive cooperation with prosecutors.

  • May 17, 2024

    TD Bank Says Ex-Advisers Enticed $25M To Raymond James

    TD Bank NA and its subsidiary TD Private Client Wealth LLC are accusing two former employees of "brazenly" breaking nonsolicitation agreements by moving to Raymond James Financial Services Inc. and enticing $25 million in client assets to come with them.

  • May 17, 2024

    Tilray To Raise Money For Deals Amid US Pot Policy Change

    Cannabis lifestyle and consumer packaged goods company Tilray Brands Inc. on Friday said it plans to raise money to fund future acquisitions and expansion, in an announcement that comes just one day after President Joe Biden revealed that his administration is formally relaxing restrictions on marijuana.

  • May 17, 2024

    SEC Can Try To Show Jurisdiction Over German In $3M Claim

    The U.S. Securities and Exchange Commission will be allowed to pursue evidence to support its case for disgorgement of $3.3 million in allegedly ill-gotten gains from a German man whose son was implicated in a $150 million pump-and-dump scheme, a federal judge in Boston ruled on Thursday.

  • May 16, 2024

    Buckle Up: CFPB's High Court Win Will Thaw Frozen Docket

    The Consumer Financial Protection Bureau is walking away from the U.S. Supreme Court with its funding and rulebook intact, a victory that caps off years of constitutional wrangling over how the agency was set up and will usher in a wave of activity that has financial services attorneys bracing for impact.

  • May 16, 2024

    Ex-Credit Union Worker Gets 3 Years After Copping To Fraud

    A former employee of Indiana-based Financial Center First Credit Union employee faces nearly three years in prison and owes over $2 million after pleading guilty to financial institution fraud in connection with claims he received $100,000 in kickbacks after using his position to help unidentified accomplices siphon millions away from account holders.

  • May 16, 2024

    3rd Circ. Shuns Teva's 'Novel' Appeal On Israeli Investor Class

    The Third Circuit on Thursday turned away an appeal brought by Teva Pharmaceutical Industries Ltd., saying the class certification stage was not the right time to hear arguments over the "novel" question of the applicability of U.S. securities laws to Israeli-listed shares.

  • May 16, 2024

    Funko Beats Investor Suit Over Warehouse Move For Now

    Toy company Funko Inc. on Thursday beat a proposed investor class action alleging it failed to disclose accurate information about problems relocating a distribution center and updating critical software, with a Washington federal judge saying the investors have failed to prove the company's statements were false or misleading, among other things.

  • May 16, 2024

    Clean Energy CEO Gets 6 Years For Forgeries Netting $1.1M

    The CEO of a Pennsylvania clean energy company was sentenced to six years in federal prison for defrauding investors out of $1.1 million and falsifying documents to cover his tracks, federal prosecutors announced Thursday.

  • May 16, 2024

    MoneyLion Beats Investor Suit Over Reverse Stock Split

    A New York federal judge has dismissed a lawsuit by shareholders of digital finance platform MoneyLion, who allege the company and its directors approved a reverse stock split that stripped preferred shareholders of their rights, saying the investors should have known the consequences of the vote.

  • May 16, 2024

    Senate Passes Bill To Block SEC Crypto Accounting Guidance

    The U.S. Senate voted Thursday to send a bill overturning the U.S. Securities and Exchange Commission's controversial crypto accounting guidance to the president's desk, though without the necessary votes to override the White House's planned veto.

  • May 16, 2024

    FDIC's Gruenberg Scolded By Senators Over Agency Culture

    Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Thursday faced a second round of congressional reprimand from both sides of the political aisle over his agency's workplace misconduct scandal, but Senate Democrats seemed ready to let Gruenberg clean up the mess himself and continue his tenure.

  • May 16, 2024

    Ex-Pharma Exec Cops To Contempt For Barred Finance Work

    A Boston federal judge on Thursday accepted a former pharmaceutical company executive's guilty plea to a criminal contempt charge for using an alias to work on a finance venture despite a U.S. Securities and Exchange Commission ban.

  • May 16, 2024

    DOL Unveils Long-Delayed Abandoned Retirement Plan Rules

    After being sidelined for more than a decade, a plan for expanding U.S. Department of Labor rules for terminating retirement plans abandoned by employers are moving forward again, the agency reported Thursday, along with a long-delayed role in the process for bankruptcy trustees.

  • May 16, 2024

    SEC Adopts Rules For Uncovering, Reporting Data Breaches

    The U.S. Securities and Exchange Commission announced the adoption of cybersecurity rules Thursday that will require investment advisers and broker-dealers to put procedures in place for detecting data breaches and for notifying customers when their personal information may have been compromised.

  • May 16, 2024

    No Relief For Struggling SPACs Under Buyback Tax Proposal

    Special-purpose acquisition companies won't get sought-after relief from a new 1% tax on stock buybacks under a recent Treasury Department proposal that otherwise provides helpful clarity on the tax's implications for the subdued SPAC market, lawyers say.

  • May 16, 2024

    2nd Circ. Backs Win For Big Banks In Forex-Rigging Suit

    The Second Circuit on Thursday backed a ruling in favor of a group of large banks accused of conspiring to manipulate the foreign currency exchange market in euros and dollars, agreeing with a lower court that the plaintiffs hadn't made qualifying transactions or shown how prices were distorted.

Expert Analysis

  • Traversing The Web Of Nonjudicial Grievance Mechanisms

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    Attorneys at Covington provide an overview of how companies can best align their environmental and human rights compliance with "hard-law" requirements like the EU's recently approved Corporate Sustainability Due Diligence Directive while also navigating the complex global network of existing nonjudicial grievance mechanisms.

  • An NYDFS-Regulated Bank's Guide To Proper Internal Audits

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    As certification deadlines for compliance with the New York State Department of Financial Services’ transaction monitoring and cybersecurity regulations loom, lawyers should remember that the NYDFS offers no leeway for best efforts — and should ensure robust auditing and recordkeeping processes for clients, say attorneys at Arnall Golden.

  • Discord Stock Case Toss Means Little For Fraud Defendants

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    A Texas federal court’s recent dismissal of fraud charges related to a "pump and dump" scheme on Discord is an outlier after the U.S. Supreme Court scrapped the right-to-control theory of fraud last year, and ultimately won't deter the government from pursuing routine securities prosecutions, says William Johnston at Bird Marella.

  • Opinion

    Post-Moelis Del. Corp. Law Proposal Would Hurt Stockholders

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    The proposed Delaware General Corporation Law amendment in response to the Court of Chancery's recent opinion in West Palm Beach Firefighters' Pension Fund v. Moelis would upend the foundational principle of corporate law holding that directors govern corporations in the interest of stockholders — and the potential harm would be substantial, say attorneys at Block & Leviton.

  • Strategies For Navigating Compliance Monitorships

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    As independent compliance monitorships continue to be a favored tool of the government in resolving corporate enforcement matters, counsel should have a firm grasp on best practices for selecting a monitor, preparing the company and ensuring a productive relationship between the parties, say attorneys at WilmerHale.

  • An Energy Industry Case Study In Expropriation Risk

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    Andrés Chambouleyron at Berkeley Research breaks down how expropriation risk and damage mitigation calculations vary considerably by different energy sources, and uses Argentina as a case study for how energy investors might protect their interests.

  • At 'SEC Speaks,' A Focus On Rebuilding Trust Amid Criticism

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    At the Practising Law Institute's SEC Speaks conference last week, U.S. Securities and Exchange Commission leadership highlighted efforts to rebuild and restore trust in the U.S. capital markets by addressing investor concerns through regulatory measures and enforcement actions, emphasizing the need for cooperation from market participants, say attorneys at Perkins Coie.

  • Series

    Fla. Banking Brief: All The Notable Legal Updates In Q1

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    Early 2024 developments that could have a notable impact on Florida's finance community include progress on a bill that would substantially revise the state Securities and Investor Protection Act, and the Consumer Financial Protection Bureau's final rule capping late fees for larger credit card issuers, say Benjamin Weinberg and Megan Riley at Leon Cosgrove.

  • Comparing Corporate Law In Delaware, Texas And Nevada

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    With Elon Musk's recent decision to reincorporate his companies outside of Delaware, and with more businesses increasingly considering Nevada and Texas as corporate homes, attorneys at Baker Botts look at each jurisdiction's foundation of corporate law, and how the differences can make each more or less appealing based on a corporation's needs.

  • Management Incentives May Be Revisited After PE Investment

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    As the economic climate shifts, key parties in private equity investment transactions may become misaligned, and management incentive plans could become ineffective — so attentive boards may wish to caucus with management to evaluate continued alignment, say Austin Lilling and Nida Javaid at Morgan Lewis.

  • Practicing Law With Parkinson's Disease

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    This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.

  • Calif. Verdict Showcases SEC's New 'Shadow Trading' Theory

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    Last week's insider trading verdict, delivered against biopharmaceutical executive Matthew Panuwat by a California federal jury, signals open season on a new area of regulatory enforcement enabled by the U.S. Securities and Exchange Commission's shadow trading theory, say Perrie Weiner and Aaron Goodman at Baker McKenzie.

  • Climate Disclosure Mandates Demand A Big-Picture Approach

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    As carbon emissions disclosure requirements from the European Union, California and the U.S. Securities and Exchange Commission take effect, the best practice for companies is not targeted compliance with a given reporting regime, but rather a comprehensive approach to systems assessment and management, says David Smith at Manatt.

  • Series

    Playing Hockey Makes Me A Better Lawyer

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    Nearly a lifetime of playing hockey taught me the importance of avoiding burnout in all aspects of life, and the game ultimately ended up providing me with the balance I needed to maintain success in my legal career, says John Riccione at Taft.

  • ESG Challenges In Focus After Sierra Club Opposes SEC Rule

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    The Sierra Club's recent objection to the U.S. Securities and Exchange Commission's climate-related disclosures for investors presents an unusual — pro-disclosure — legal challenge and an opportunity to take a close look at the varying critiques of ESG regulations, say Colin Pohlman, and Jane Luxton and Paul Kisslinger at Lewis Brisbois.

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