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Fintech
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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
Visa Says 'Contradictory' Debit Card Market Dooms DOJ Suit
Visa Inc. formally asked a New York federal judge Monday to nix the U.S. Department of Justice monopolization lawsuit accusing it of paying off would-be debit network rivals and penalizing the use of alternate payment systems, arguing the government cannot mix-and-match its way into claiming the company holds a dominant market share.
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December 17, 2024
CFPB Finalizes Rule For PACE Loans
The Consumer Financial Protection Bureau on Tuesday finalized a rule that applies standard mortgage protections to so-called Property Assessed Clean Energy loans, where homeowners pay for upgrades through property tax bills.
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December 17, 2024
Heartland Payment Settles Florida School Lunch Card Suit
Parents from Florida and elsewhere have settled a proposed federal class action with a payment processor over alleged unfair surcharges collected after depositing lunch money onto school-sponsored reloadable cards used by their kids.
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December 16, 2024
Texas Bitcoin Mining Enterprise's Investors Accuse It Of Fraud
Founders of a Texas-based bitcoin mining company are being accused of fraud by several investors in a new lawsuit claiming they attempted to conceal the sale of the company's operational facilities to a competitor, which led to the company's filing for bankruptcy earlier this year.
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December 16, 2024
Chinese Fintech 9F Partially Beats Investors' IPO Suit
A New Jersey federal judge has partially dismissed a securities fraud class action against 9F Inc. that accused the Chinese financial technology company of hiding its financial woes and not disclosing an "illegal arrangement" that investors said it had with an insurance carrier.
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December 16, 2024
Global Payments' $3.6M Investor Deal Gets Judge's Final OK
Investors in Atlanta-based Global Payments Inc. have gotten final approval for a $3.6 million deal ending claims the company harmed shareholders by allegedly misleading consumers into signing up for a program with undisclosed fees.
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December 16, 2024
Yodlee Judge 'Wrestling' With Invasion Of Privacy Question
A California federal judge considering financial data aggregator Yodlee's bid to dismiss allegations it unlawfully collected user data said Monday that she is "wrestling" with whether the company's retention of users' bank credentialing information gave those users standing for an invasion of privacy claim.
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December 16, 2024
Anchorage Digital Awarded BitLicense From NY Regulator
Anchorage Digital said Monday it has received a BitLicense from the New York State Department of Financial Services, allowing the cryptocurrency platform to offer regulated crypto trading to New York-based clients and giving it the ability to custody and settle trades through chartered custodian Anchorage Digital Bank.
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December 16, 2024
Justices Won't Hear 3rd Circ. CFPB Student Loan Trust Case
The U.S. Supreme Court said Monday that it would leave in place a lower court decision allowing the Consumer Financial Protection Bureau to sue securitization trusts over their servicers' treatment of borrowers, declining to take up a challenge to the scope of the agency's enforcement authority.
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December 13, 2024
Coinbase Faces $1B Antitrust Suit Over Crypto Rival's Delisting
Coinbase was hit with an antitrust in California federal court on Friday by BiT Global, a company that "wraps" bitcoin so the cryptocurrency can be traded on decentralized exchanges, claiming Coinbase delisted its product after creating a competing knockoff.
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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
Del. Chancellor Positions Musk Pay Fight For Likely Appeal
Delaware's chancellor positioned for likely appeals late Friday final pieces of a landmark six-year battle over Tesla Inc.'s attempt to award CEO Elon Musk a more than $55 billion, 10-year pay package, in a trio of orders that also directed the company to pay in cash or post sufficient bond for a $345 million stockholder attorney fee.
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December 13, 2024
SEC's Corporation Finance Director Gerding To Step Down
The U.S. Securities and Exchange Commission announced Friday that the head of its Division of Corporation Finance, who oversaw the finalization of controversial new rules covering environmental disclosures and share repurchases, will leave the agency at the end of the year.
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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
Taxation With Representation: Kirkland, Davis Polk, Wachtell
In this week's Taxation With Representation, Google and TPG Rise Climate partner with Intersect Power, Gen Digital Inc. acquires MoneyLion Inc., Patient Square Capital acquires Patterson Companies Inc., and the Buffalo Bills and Miami Dolphins sell minority ownership shares to private equity firms.
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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.
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December 13, 2024
'Buy Now, Pay Later' Co. Affirm Inks $4B Deal With PE Firm
Payment network Affirm Holdings Inc., advised by Mayer Brown LLP, on Friday announced that it has entered into a partnership with investment firm Sixth Street under which Sixth Street will plug up to $4 billion into the "buy now, pay later" company.
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December 13, 2024
4 Firms Rep On Rent-A-Center Owner's $460M Brigit Deal
Rent-A-Center owner Upbound Group Inc. has agreed to acquire financial technology company Brigit for up to $460 million, with Sullivan & Cromwell LLP and Mayer Brown LLP guiding Upbound and Cooley LLP and Morgan Lewis & Bockius LLP representing Brigit.
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December 12, 2024
Payments Co. Marqeta Faces Investor Suit Over Growth Woes
Card issuing and transaction processing company Marqeta Inc. faces a proposed investor class action alleging it concealed the impact that heightened regulatory scrutiny of its small bank partners would have on the growth of its business.
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December 12, 2024
Bitcoin Investor Gets 2 Years For Tax Fraud In Landmark Case
An investor who concealed millions of dollars he earned in bitcoin and became the first person criminally charged for failing to report gains from the sale of cryptocurrency by filing false returns was sentenced to two years in federal prison Thursday.
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December 12, 2024
SEC Will Be GOP-Only Without Crenshaw's Vote, Groups Warn
More than 40 organizations sent a collective letter to U.S. senators in support of Democrat Caroline Crenshaw's reconfirmation to the U.S. Securities and Exchange Commission on Thursday, a day after Senate Republicans blocked a closed-door vote on her nomination.
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December 12, 2024
Fla. Judge Awards $114M To Crypto-Forex Exchange Investors
A Florida judge issued a directed verdict Thursday against absent foreign exchange currency broker FxWinning Ltd. awarding investors more than $114 million after they told the court how they were swindled out of their investments when the company abruptly stopped honoring withdrawal requests.
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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.
Expert Analysis
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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.
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Useful Product Doctrine May Not Shield Against PFAS Liability
Courts have recognized that companies transferring hazardous recycled materials can defeat liability under environmental laws by showing they were selling a useful product — but new laws in California and elsewhere restricting the sale of per- and polyfluoroalkyl substances may change the legal landscape, says Kyle Girouard at Dickinson Wright.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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CFPB School Lunch Focus Could Expand E-Payment Scrutiny
The Consumer Financial Protection Bureau's recent spotlight on payment processing systems used to add funds to school lunch accounts shows its continued ambitions to further expand its supervisory power in the payments industry, all the way down to the school lunch market, says Tom Witherspoon at Stinson.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Ga. Fintech Bank Charter Could Reshape Payments Industry
Georgia’s recent granting of a special banking charter to transaction processor Fiserv, allowing the fintech company to access major card payment networks without a traditional bank as intermediary, could spark a restructuring of the national payments infrastructure and open new possibilities for businesses and consumers, says Jessica Cino at Krevolin & Horst.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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California's AI Safety Bill Veto: The Path Forward
California Gov. Gavin Newsom's veto of a bill that sought to impose stringent regulations on advanced artificial intelligence model development has sparked a renewed debate on how best to balance innovation with safety in the rapidly evolving AI landscape, say Bobby Malhotra and Carson Swope at Winston & Strawn.