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Asset Management
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December 18, 2024
Split 9th Circ. Backs 46-Month Prison Term For Stock Pumper
A divided Ninth Circuit on Wednesday affirmed a 46-month sentence for a Canadian man convicted of securities fraud in a pump-and-dump scheme involving a cannabis and gaming company, rejecting his argument that the lower court erred by calculating "intended loss" to enhance his sentence, since circuit precedent recognizes both actual and intended losses.
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December 18, 2024
Charles Schwab Says Ex-Employee Stole Client Info
Charles Schwab has filed a suit in Texas federal court accusing a former employee of misappropriating confidential trade secrets and client information to solicit business once he joined a competitor.
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December 18, 2024
FDIC Moves Closer To Suing Ex-Brass Of Silicon Valley Bank
Federal Deposit Insurance Corp. leaders have given a green light for the agency to potentially sue former top brass of Silicon Valley Bank for alleged mismanagement of the bank that led to its collapse last year.
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December 18, 2024
Cryptocurrency Firm Exec Gets 4 Years For $4.5M Theft
A former cryptocurrency research firm executive was sentenced to four years in prison by a Hartford, Connecticut, judge after previously pleading guilty to embezzling nearly $5 million from the firm for his personal use.
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December 18, 2024
Insignia Financial Rejects $1.7B Buyout Bid From Bain
Australia's Insignia Financial said Wednesday it has rejected a nonbinding Bain Capital buyout bid valued at roughly $1.7 billion, stating it does not "adequately represent fair value" for its shareholders.
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December 17, 2024
Broker, AML Chief Settle SEC Suspicious Activity Claims
Broker-dealer SogoTrade Inc. and its former anti-money laundering compliance officer on Tuesday agreed to pay fines, and other terms, to settle U.S. Securities and Exchange Commission charges that they repeatedly failed to investigate suspicious customer activity or file related reports.
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December 17, 2024
SEC, CFTC Members Eye Crypto Coordination Under Trump
Republican commissioners at the federal securities and futures regulators told crypto industry participants on Tuesday that they will urge their agencies to collaborate more closely on providing regulatory relief and clarity in the new year as they wait for lawmakers to get long-awaited crypto legislation across the finish line.
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December 17, 2024
Hunton Adds Ex-Flagstar Atty To NYC Office
Hunton Andrews Kurth LLP announced on Tuesday it has hired ex-Flagstar Bank senior vice president and associate general counsel Ian W. Sterling for its New York City office as a special counsel who specializes in structured finance and securitization.
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December 17, 2024
4 Recent Policy Developments Benefits Attys Should Know
A trio of federal agencies finalized new disclosure requirements for how health plans cover mental health treatments, states took steps to regulate pharmacy benefit managers, the U.S. Department of Labor's investment advice regulations failed in court, and Congress passed legislation to make compliance with the Affordable Care Act easier. Here, Law360 looks back at four policy-related developments in the employee benefits field from the latter half of 2024.
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December 17, 2024
Northwest Bancshares Buys Peer Penns Woods In $270M Deal
Dinsmore & Shohl LLP-advised Northwest Bancshares Inc. has agreed to purchase Stevens & Lee PC-led Penns Woods Bancorp Inc. in an all-stock deal valued at roughly $270.4 million, the organizations said Tuesday.
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December 17, 2024
Fenwick-Led AI Startup Databricks Nets $10B In Private Round
Venture-backed Databricks Inc. said Tuesday it raised $10 billion through a private funding that valued the artificial intelligence startup at $62 billion, represented by Fenwick & West LLP, marking the latest sign of investor enthusiasm for AI technology.
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December 16, 2024
BNY Scores Exit In Mutual Fund Conflict Of Interest Suit
A Pennsylvania federal magistrate judge on Monday granted The Bank of New York Mellon's bid to toss a proposed class action claiming that it failed to disclose conflicts of interest when funneling client assets into mutual funds and other investment vehicles that favored the bank, ruling that the claims are preempted by the Securities Litigation Uniform Standards Act.
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December 16, 2024
Split SEC Will Require Certain Filings Be Made Electronically
A split U.S. Securities and Exchange Commission on Monday adopted rule amendments that require certain filings be made electronically, with Chair Gary Gensler saying the changes will streamline the commission's filing process.
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December 16, 2024
'Plans Do Matter,' Tempur Sealy Says In Final Merger Hearing
Tempur Sealy made its final push Monday in support of its $4 billion planned Mattress Firm purchase, telling a judge during closing arguments that the Federal Trade Commission hadn't shown that the company planned to deviate from its intent for Mattress Firm to remain autonomous.
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December 16, 2024
AME Church Inks $20M Deal In Retirement Fraud Suit
The African Methodist Episcopal Church has agreed to pay $20 million to resolve a suit claiming it failed to step in when an employee embezzled $90 million from its retirement plan, according to a Tennessee federal court filing seeking an initial green light on the deal.
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December 16, 2024
SEC Wants Out Of PE Firm's 'Fishing Expedition' Suit
The U.S. Securities and Exchange Commission has asked a Texas federal judge to toss a suit brought by a real estate-focused private equity fund alleging the SEC subjected it to an unconstitutional "fishing expedition" outside its regulatory purview, arguing that sovereign immunity bars the firm's claims and that the court has no jurisdiction over the case.
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December 16, 2024
Investment Pro Denies $600M 'Cherry-Picking' Fraud Charges
A California investment executive on Monday denied cheating a group of his firm's clients by assigning them poorer-performing trades, pleading not guilty before a Manhattan federal judge to what prosecutors call a $600 million criminal "cherry-picking" fraud.
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December 16, 2024
High Court Bar's Future: Latham's Roman Martinez
Roman Martinez of Latham & Watkins LLP approaches oral arguments before the U.S. Supreme Court as if they were just another dinner with family or friends — people he's argued with since he was a kid.
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December 13, 2024
Medical Device Co. Brass Hid SPAC's True Value, Suit Says
The executives and directors of a healthcare holding company have been hit with a shareholder derivative suit in Colorado federal court alleging the company hid the financial and regulatory risks it faced to inflate its value after merging with a blank check company.
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December 13, 2024
Advocacy Group Has Change Of Heart On SEC Reg Challenge
An investor advocacy organization that sued the U.S. Securities and Exchange Commission over its recently adopted "tick size" rule has said it will let others take the reins of the lawsuit because it is worried that the incoming administration will not propose the stronger stock market regulations it wants.
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December 13, 2024
US Bank Fails To Beat RMBS Suit From Commerzbank
A New York federal judge has ruled that Commerzbank AG's suit against U.S. Bank may proceed, rejecting U.S. Bank's argument that presuit notification to certain residential mortgage-backed securities trust parties was unnecessary due to their alleged involvement in the misconduct.
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December 13, 2024
Auto Mogul Must Turn Over Note Info In $127M Collection Row
An auto mogul, his living trust and one of his companies must turn over documents related to a $20 million payment on promissory notes as part of marathon litigation related to Alter Domus LLC's attempts to collect on a $127 million judgment, a Michigan federal judge has ruled.
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December 13, 2024
Silvergate Bank Slams Stockholder's Bid To Take Over Ch. 11
Bankrupt crypto-bank Silvergate has blasted an activist investor fund's effort to scuttle the debtor's exclusive Chapter 11 control in Delaware, accusing common stockholder Stilwell Activist Investments LP of opposing exclusivity to escape a justifiable plan to liquidate the bank's no-longer viable, cryptocurrency-focused business.
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December 13, 2024
Off The Bench: PE Buys In On NFL, WWE Abuse Suit Back On
In this week's Off The Bench, two teams usher in a new era for the NFL by bringing in private equity investors, a suit accusing the WWE and Vince McMahon of sexual abuse and trafficking picks back up while a federal investigation continues, and a private equity giant and NHL owner passes away.
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December 13, 2024
3 Firms Guide Pair Of SPAC Listings Totaling $410M
Two special purpose acquisition companies began trading on Friday after completing initial public offerings that raised a combined $410 million, under guidance from three law firms, targeting industries spanning cybersecurity, artificial intelligence and financial technology.
Expert Analysis
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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A Look At The Increased Scrutiny Of Cash Sweep Programs
Financial industry regulators have increasingly probed the adequacy of so-called cash sweep disclosures and policies, underscoring the heightened risk faced by investment advisers and broker-dealers, as well as the importance of adequately disclosing material conflicts of interest, say attorneys at Dechert.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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Election Outcome Could Reshape Financial Industry
The policies of the next presidential administration and Congress will shape the landscape of financial services in the U.S. — including banking, mortgage, investment and credit services — for years to come, affecting Wall Street investors and aspiring homeowners alike, say Alexander Hecht and Frank Guinta at Mintz.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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Nvidia Case's Potential Impact On Securities Class Actions
In Nvidia v. Ohman Fonder, the U.S. Supreme Court could strip lower courts of their long-standing ability and obligation to holistically weigh all relevant facts supporting plaintiffs' allegations of securities fraud, which would have a wide-ranging impact on securities fraud class actions in the U.S., say attorneys at Labaton Keller.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Short-Seller Implications Of 10th Circ.'s Overstock Decision
The Tenth Circuit's Oct. 15 decision in Overstock Securities Litigation provides clarity on the pleading standard for a market manipulation claim under the Exchange Act, and suggests that short sellers might not be able to rely on the fraud-on-the-market presumption typically invoked by securities plaintiffs, say attorneys at Paul Weiss.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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Why Diversity Jurisdiction Poses Investment Fund Hurdles
Federal courts' continued application of the exacting rules of diversity jurisdiction presents particular challenges for investment funds, and in the absence of any near-term reform, those who manage such funds should take action to avoid diversity jurisdiction pitfalls, say attorneys at Sher Tremonte.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.