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Capital Markets
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December 12, 2024
DC Circ. Leans Toward BofA In Pandemic Market Loss Bout
The D.C. Circuit is set to decide whether Bank of America had a duty to try harder to stop one of its clients from dumping his investments when the market tanked at the beginning of the COVID-19 pandemic, but at arguments Thursday morning, the panel did not seem to think so.
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December 12, 2024
Biden Steel-Deal Block, Walgreens For Sale, And More Rumors
President Biden is reportedly ready to block the U.S. Steel-Nippon merger on national security grounds, pharmacy giant Walgreens is exploring selling itself to private equity firm Sycamore, and cryptocurrency-related trading platform EToro is preparing an initial public offering.
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December 12, 2024
Wash. Man Gets 41 Months For Gamer-Duping Crypto Scam
A Washington federal judge has sentenced a Spokane man to 41 months in prison for running a crypto scheme in which he allegedly induced victims he met online, including users of dating apps and "Call of Duty" players, and via hailed rides to sink over $350,000 into a phony crypto investment fund.
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December 11, 2024
5th Circ. Tosses SEC's OK Of Nasdaq's Board Diversity Rule
A split Fifth Circuit ruled Wednesday that Nasdaq cannot implement U.S. Securities and Exchange Commission-approved rules requiring that companies listed on the exchange disclose board diversity data, finding that the stock exchange's rules run afoul of federal securities law.
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December 11, 2024
Latham, Wilson Sonsini Lead ServiceTitan's $625M IPO
Venture-backed software platform ServiceTitan Inc. priced an above-range $625 million initial public offering on Wednesday, guided by Latham & Watkins LLP and underwriters' counsel Wilson Sonsini Goodrich & Rosati PC, likely marking the year's last major IPO.
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December 11, 2024
SEC Must Revisit $23M Demand In Collectibles Fraud Case
A New Jersey federal judge has ordered the U.S. Securities and Exchange Commission to recalculate its $23 million bid for disgorgement in a long-running suit against a sports memorabilia merchant found liable at trial last year for ripping off investors, in part by lying about the value of two contracts signed by baseball legend Jackie Robinson.
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December 11, 2024
Ex-Telecom CEO Charged With Insider Trading On His Own Firing
The U.S. Department of Justice announced Wednesday that former Comtech Telecommunications Corp. CEO Ken Peterman has been charged with insider trading after he used nonpublic information about the company and his own impending termination to profit from the sale of tens of thousands of dollars' worth of Comtech stock.
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December 11, 2024
Tesla Stockholder Contests $345M Musk Pay Fight Fee In Del.
A Tesla Inc. stockholder has asked to intervene in the Delaware Court of Chancery class derivative case that scuttled CEO Elon Musk's 10-year, $55.6 billion compensation plan, citing objections to court approval of a stock or cash fee award for class attorneys worth $345 million.
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December 11, 2024
Trump Media Fights Stay Of Fla. Suit In Investor Dispute
The company behind Donald Trump's Truth Social platform told a Florida appeals court on Wednesday that a trial court should not have paused its suit against investors in favor of a related dispute in Delaware because the two suits are not substantially similar.
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December 11, 2024
MoFo Adds Group Of 7 Lawyers From Goodwin Procter In NY
Morrison Foerster LLP is expanding its emerging companies and venture capital practice on the East Coast, announcing Wednesday it is bringing in a group of seven lawyers from Goodwin Procter LLP in New York.
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December 11, 2024
FTX Settles With Congressional PACs In Ch. 11
FTX reached more than a dozen settlements in November with various political action committees, including deals with the Democratic-aligned Senate Majority PAC and the House Majority PAC worth $3 million and $6 million, respectively, the bankrupt crypto company told a New York bankruptcy court.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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December 11, 2024
Justices' Cold Feet On Nvidia, Meta Leaves Attys Guessing
The U.S. Supreme Court threw out a second securities case on Wednesday by refusing to issue a ruling in a Nvidia Corp. case with no explanation on its change of heart, leaving the defense bar to guess at the court's motivation and its potential implication for the future of high court securities cases.
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December 10, 2024
Robinhood Seeks Arb. For Remaining Meme Stock MDL Suits
Stock trading platform Robinhood urged a Florida federal court to send to arbitration the seven remaining individual suits brought against it as part of a multidistrict litigation over the platform's decision to freeze trading in certain so-called meme stocks amid a social-media fueled run on shares of those issuers.
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December 10, 2024
SEC Says Ex-Rep Defrauded Investors With Short-Term Bets
A former registered representative of broker-dealer Western International Securities Inc. has agreed to pay over $2.1 million to end U.S. Securities and Exchange Commission allegations he orchestrated a scheme to defraud retail clients by recommending costly investment strategies, and then covered up their "substantial" losses with phony financial statements.
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December 10, 2024
UpHealth Says Glocal Execs Stalling On $115M Award Suit
Digital health services company UpHealth has asked an Illinois federal judge to favor its efforts to pin down assets belonging to executives of Indian healthcare firm Glocal as it looks to enforce a $115 million arbitral award, saying the respondents are engaging in "obstructionist" conduct.
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December 10, 2024
SEC Says Xtreme Fighting CEO And GC Defrauded Investors
The U.S. Securities and Exchange Commission has accused Xtreme Fighting Championships and CEO Steven Smith of defrauding investors by selling millions of dollars of stock in the martial arts organization without disclosing the involvement of Smith or its criminally charged general counsel, according to a Florida federal lawsuit.
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December 10, 2024
Crypto Groups Rally Against Reappointing SEC's Crenshaw
Cryptocurrency industry groups are pushing back on a potential second term for U.S. Securities and Exchange Commissioner Caroline Crenshaw with an online ad campaign and letters to lawmakers ahead of a Senate Banking Committee vote Wednesday on the Democrat's confirmation.
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December 10, 2024
Advent Says Chancery Rulings End Funeral Co. Suit
Private equity firm Advent International told a Boston federal judge that a heated fraud lawsuit tied to its sale of a Mexican funeral business must be dismissed due to rulings from a Delaware judge upholding agreements it entered with the buyer limiting claims related to the transaction.
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December 09, 2024
Trump Media Investors Urge Stay Denial In Del. Suit
Investors in Donald Trump's social media website urged a Delaware Chancery Court to deny a temporary stay brought by the president-elect in order to let Florida litigation play out first, saying presidential immunity doesn't extend to unofficial acts, and the lawsuit can proceed against Trump's affiliates.
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December 09, 2024
Blockchain Co. IP Fight With Investment Firm Teed Up For Trial
A California federal judge has said a jury should decide whether the investment firm Franklin Templeton misappropriated trade secrets of Blockchain Innovation LLC and breached its fiduciary duty and contract with the firm when it shut down a digital asset startup that Blockchain later acquired.
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December 09, 2024
SocGen Unit To Pay FINRA $950K Over Fingerprinting Lapses
A U.S.-based unit of French financial services company Societe Generale will pay a $950,000 fine to the Financial Industry Regulatory Authority to settle the self-regulatory organization's claims that the firm failed to fingerprint roughly 2,000 current and former employees at certain affiliates as required by law.
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December 09, 2024
EV Carmaker Lucid Wants To Shed More Of Inflated Biz Suit
Electric carmaker Lucid Group has asked a California federal judge to toss most of the latest version of a proposed investor class action alleging its production forecasts were misleading, arguing that parts of the suit that remained intact after a recent dismissal order involved statements taken out of context.
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December 09, 2024
SEC's Trading And Markets Director Zhu To Leave Agency
Haoxiang Zhu is stepping down as head of the U.S. Securities and Exchange Commission's Division of Trading and Markets, the agency announced Monday, leaving the group that oversees orderliness of U.S. markets as leadership continues to change at regulatory bodies following President-elect Donald Trump's election victory.
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December 09, 2024
Feds Seek 2-Year Sentence In Landmark Crypto Tax Case
The first person ever criminally charged for failing to report gains from the sale of cryptocurrency by filing false returns should be sentenced to more than two years in prison after he admitted underreporting $4 million in bitcoin proceeds, prosecutors told a Texas federal court.
Expert Analysis
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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Recent Securities Cases Highlight Risks In AI Disclosures
Increasing public disclosure about the use and risks of artificial intelligence, and related litigation asserting that such disclosures are false or misleading, suggest that issuers need to exercise great care with respect to how they describe the benefits of AI, say Richard Zelichov and Danny Tobey at DLA Piper.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Breaking Down CFTC's Novel Theory Driving Uniswap Action
The U.S. Commodity Futures Trading Commission's recent enforcement action against Uniswap concerning digital asset liquidity appears to be a unilateral attempt to expand its regulatory authority in the absence of official congressional approval, putting forth a novel theory of liability that will likely be tested through litigation, say attorneys at Troutman Pepper.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Applying High Court's Domestic Corruption Rulings To FCPA
After the U.S. Supreme Court narrowed the domestic corruption statutes in three decisions over the past year and a half, it’s worth evaluating whether these rulings may have an impact on Foreign Corrupt Practices Act enforcement, and if attorneys can use the court’s reasoning in international bribery cases, says James Koukios at MoFo.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q3
In the third quarter of the year, California continued to be at the forefront of banking regulation as it enacted legislation on unfair banking practices and junk fees, and the state Department of Financial Protection and Innovation notably initiated enforcement actions focused on crypto-assets and student loan debt relief, say Stuart Richter and Eric Hail at Katten.
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2 High Court Securities Cases Could Clarify Pleading Rules
In granting certiorari in a pair of securities fraud cases against Facebook and Nvidia, respectively, the U.S. Supreme Court has signaled its intention to align interpretations of the heightened pleading standard under the Private Securities Litigation Reform Act amid its uneven application among the circuit courts, say attorneys at V&E.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Series
A Day In The In-House Life: Best Egg CLO Talks Power Of Prep
On a typical Monday in her life, Best Egg Chief Legal Officer Amy Thoreson Long chronicles a remote workday in which she makes time for everything from getting ahead on regulatory issues and researching recent Supreme Court decisions to dog walks and podcast breaks.
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Takeaways From TOTSA Settlement And Critical CFTC Dissent
The U.S. Commodity Futures Trading Commission's recent settlement with TOTSA highlights the agency's commitment to enforcing market integrity and deterring manipulative practices, while Commissioner Caroline Pham's dissent to the settlement spotlights the need for transparency and consistency in enforcement actions, say attorneys at Davis Wright.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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Payward And The Secondary Crypto Transaction Confusion
Following orders in cases against Coinbase and Binance, the recent California federal court ruling in U.S. Securities and Exchange Commission v. Payward raises even more questions about regulation of secondary transactions involving crypto-assets, as it tries to sidestep fundamental flaws in the SEC's legal theories, say attorneys at Cahill Gordon.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.