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Asset Management
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December 20, 2024
Suit Slams SEC's Use Of 'Career Death Penalty'
A father and son who settled allegations of defrauding investment advisory clients with the U.S. Securities and Exchange Commission are suing in D.C. federal court to block the agency from barring them from the securities industry, claiming that the administrative case is unconstitutional.
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December 20, 2024
Wells Fargo, LPL Financial Fined $3.6M For Bad Trading Data
Wells Fargo Clearing Services LLC and LPL Financial LLC on Friday each agreed to pay separate $900,000 fines to the U.S. Securities and Exchange Commission and Financial Industry Regulatory Authority to resolve claims they failed to provide complete and accurate securities trading information, known as blue sheet data.
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December 20, 2024
Deutsche Bank Unit To Pay SEC $4M For Untimely SARs
Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, has agreed to pay $4 million to the U.S. Securities and Exchange Commission to resolve claims that the registered broker-dealer did not file certain suspicious activity reports in a timely manner for transactions that they suspected involved criminal activity or funds derived from illegal activity.
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December 20, 2024
SEC Sues Silver Point Over Atty's Receipt Of Nonpublic Info
The U.S. Securities and Exchange Commission sued investment adviser firm Silver Point Capital LP in Connecticut federal court on Friday, alleging that it failed to establish policies to safeguard material nonpublic information, particularly from a now-deceased former BigLaw attorney.
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December 20, 2024
Edward Jones, Others To Return $8.2M To Mutual Fund Clients
Edward Jones and two firms that oversee mutual funds have agreed to collectively return $8.2 million to customers who were allegedly made to pay excess sales charges and fees, according to a Friday statement from the Financial Industry Regulatory Authority.
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December 20, 2024
DOL Sues Over New York BBQ Co.'s $99M Stock Plan Deal
The U.S. Department of Labor sued Argent Trust Co. and several New York City restaurant operators in federal court, alleging they violated federal benefits law by causing a barbecue company's employee stock ownership plan to pay $99 million for overvalued company stock in a leveraged transaction.
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December 20, 2024
Trump Transfers $4B Equity Stake In Media Startup To Trust
President-elect Donald Trump has transferred control over his estimated $4 billion stake in the company that owns his social media platform to a revocable trust held by his son, according to regulatory flings.
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December 20, 2024
Prudential Freed From 401(k) Mismanagement Suit
A New Jersey federal judge tossed a class action claiming Prudential bogged down its retirement plan with underperforming funds while also funneling money into a proprietary investing tool that benefited the company over employees, ruling the case lacks proof that mismanagement occurred.
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December 20, 2024
Capital Markets Attorneys Ready For Reset After Bumpy 2024
Capital markets activity — initial public offerings especially — posted a hesitant recovery in 2024, marginally increasing over prior-year levels before pausing altogether during a heated presidential election and postponing attorneys' hopes for a stronger rebound until 2025.
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December 19, 2024
Aviation Co. AAR To Pay $55M Over Alleged Bribery Schemes
AAR Corp. has agreed to shell out $55 million to resolve allegations from both the U.S. Securities and Exchange Commission and U.S. Department of Justice that the aviation services provider bribed government officials in Nepal and South Africa, the agencies announced Thursday.
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December 19, 2024
SEC Nabs $5M Judgment In Elder Fraud Case Against Adviser
The U.S. Securities and Exchange Commission has scored a $4.8 million judgment in its suit accusing an investment adviser and her firm of scamming her primarily elderly clients out of over $2 million.
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December 19, 2024
CFTC Urges 7th Circ. To Uphold $231M Crypto 'Ponzi' Penalty
The U.S. Commodity Futures Trading Commission has urged the Seventh Circuit to uphold a $231.5 million judgment against a man they say ran a cryptocurrency Ponzi scheme, arguing it is "undisputed" that the agency has authority to regulate the trading of bitcoin and ether.
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December 19, 2024
Ropes-Led Bain Capital Trims Stake In Kioxia After $800M IPO
Bain Capital LP trimmed its majority stake in Japanese chipmaker Kioxia Holdings Corp. following the company's $800 million initial public offering, according to a statement Thursday by Ropes & Gray LLP, which represented the private equity giant in the transaction.
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December 19, 2024
UBS Unit To Pay $3.5M Over FINRA Preferred Stock Claims
The brokerage unit of UBS has agreed to pay nearly $3.5 million to settle the Financial Industry Regulatory Authority's allegations that it did not have the proper supervisory system to catch unsuitable recommendations for short-term trades of syndicate preferred stocks.
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December 19, 2024
Medical Supplies Giant, Drone Operator File Confidential IPOs
Private equity-backed medical supplies giant Medline Inc. and drone operator Airo Group Holdings Inc. said Thursday that they confidentially filed plans for initial public offerings with regulators, joining a growing pipeline of IPO prospects for 2025.
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December 19, 2024
Judge Says Investing Firm Owes Marketer $330K, Not $10M
Following a four-day bench trial, a Colorado federal judge has ruled a marketing company is entitled to $331,000 in damages from an investment advisory firm that shorted it on commission for consulting services, but rejected the $10 million liability the marketer asserted in the nearly decade-old litigation.
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December 19, 2024
3rd Circ. Says Loan Shark, Robbery Not Enough For Asylum
The Third Circuit ruled against a Brazilian family seeking asylum following threats from a loan shark and a home invasion, saying that their status as crime victims and debtors does not constitute a particular social group eligible for asylum.
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December 19, 2024
Medical Device Investors Get Final OK On $15M Deal
A North Carolina federal judge has given final approval to a $15.25 million settlement that will resolve a suit claiming Bioventus Inc. misled investors about its internal controls and financial health and its readiness to implement new Medicare regulations, leading to inflated stock prices, along with $5 million in attorney fees.
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December 19, 2024
X Workers Say Entire Severance Suit Should Survive
Former X employees urged a Delaware federal court to set aside portions of a magistrate judge's recommendation that the court partially toss their unpaid severance benefits lawsuit, saying the judge incorrectly found that a merger agreement stripped them of standing.
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December 18, 2024
Pharma Trial Consultant To Pay SEC $3M Over Insider Trading
An oncologist and clinical professor at the University of California, Irvine agreed to pay the U.S. Securities and Exchange Commission $3 million to resolve allegations he purchased shares in a Massachusetts biotech company based on insider information regarding a clinical trial he was overseeing, the SEC announced Wednesday.
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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.
Expert Analysis
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Series
After Chevron: SEC Climate And ESG Rules Likely Doomed
Under the U.S. Supreme Court's recent decision in Loper Bright, without agency deference, the U.S. Securities and Exchange Commission's climate disclosure and environmental, social and governance rules would likely be found lacking in statutory support and vacated by the courts, says Justin Chretien at Carlton Fields.
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Assessing Whether Jarkesy May Limit FINRA Prosecutions
The U.S. Supreme Court’s recent decision in Jarkesy v. U.S. Securities and Exchange Commission, holding that civil securities fraud defendants are entitled to jury trials, may cause unpredictable results when applied to Financial Industry Regulatory Authority prosecutions, say Barry Temkin and Kate DiGeronimo at Mound Cotton.
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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Amid SEC Rule Limbo, US Cos. Subject To ESG Regs In EU
Though the U.S. Securities and Exchange Commission is facing legal challenges to its climate-disclosure rulemaking, the implementation of the Corporate Sustainability Reporting Directive in the European Union will force U.S. companies to comply with exactly the kinds of ESG disclosures that are not yet mandated in the U.S., say attorneys at Squire Patton.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Banking Compliance Takeaways From Joint Agency Statement
Federal bank regulatory agencies’ recent joint statement warning of risks associated with third-party fintech deposit services spotlights a fundamental problem that may arise with bank deposit products that are made through increasingly complex customer relationships, says Tom Witherspoon at Stinson.
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6 Considerations To Determine If A Cyber Incident Is Material
The U.S. Securities and Exchange Commission's recent guidance on material cybersecurity incidents covers a range of ransomware scenarios, from a company paying a sum and regaining operations to recovering payment via cyberinsurance, but makes it clear that no single factor determines whether a cybersecurity incident is material, say attorneys at Troutman Pepper.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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Whistleblowers Must Note 5 Key Differences Of DOJ Program
The U.S. Department of Justice’s recently unveiled whistleblower awards program diverges in key ways from similar programs at other agencies, and individuals must weigh these differences and look first to programs with stronger, proven protections before blowing the whistle, say Stephen Kohn and Geoff Schweller at Kohn Kohn.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Open Questions 3 Years After 2nd Circ.'s Fugitive Ruling
The Second Circuit’s 2021 decision in U.S. v. Bescond, holding that a French resident indicted abroad did not meet the legal definition of a fugitive, deepened a circuit split on the fugitive disentitlement doctrine, and courts continue to grapple with the doctrine’s reach and applicability, say attorneys at Lankler Siffert.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Class Actions At The Circuit Courts: August Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers certification cases touching on classwide evidence of injury from debt collection practices, defining coupon settlements under the Class Action Fairness Act, proper approaches for evaluating attorney fee awards in class action settlements, and more.
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Crypto Regs Could See A Reset Under The Next President
Donald Trump has taken a permissive policy stance favoring crypto, while Kamala Harris has been silent on the issue, but no matter who wins the presidential election, we may see a more lenient regulatory climate toward the digital currency than from the Biden administration, says Liam Murphy at McKool Smith.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.