Securities

  • February 22, 2024

    Bike Parts Co. Faces Shareholder Claim It Hid Sales Problems

    Executives at a Georgia bicycle parts manufacturer allegedly spent years misleading investors about booming sales and demand, triggering a stock crash when overstocked inventory and slumping sales were revealed, according to a proposed class action filed in Peach State federal court.

  • February 22, 2024

    Crypto Co. DGC Blasts NY AG Settlement With Genesis Global

    The parent company of Genesis Global Holdco slammed a proposed settlement between the bankrupt lender and the New York attorney general on Wednesday, calling the agreement an attempt to "rig" the Chapter 11 plan confirmation to include larger payouts for certain creditors.

  • February 22, 2024

    Ex-Capital One Analyst Faces 2 Years For Insider Trading

    A former Capital One data analyst was sentenced to two years in prison after pleading guilty to his role in a complex $3.1 million scheme to use his employer's credit card transaction data to guess revenue numbers public companies were poised to announce.

  • February 22, 2024

    Ex-BP Exec's Husband Cops To $1.7M Insider Trading

    The husband of a former manager at British oil and gas company BP PLC on Thursday pled guilty to securities fraud in Texas federal court and agreed to forfeit the $1.7 million he made with the help of insider trading, the U.S. Department of Justice said Thursday.

  • February 22, 2024

    SEC Won't Force BofA To Act On ESG Critic's Proxy Proposal

    A division of the U.S. Securities and Exchange Commission has said it wouldn't recommend enforcement action against Bank of America for excluding a climate-related shareholder request from its upcoming proxy statement, while the division rejected Pfizer's request to exclude a shareholder proposal on human rights from its proxy statement.

  • February 22, 2024

    Penny Stock Co. CEO Must Pay $473K Over Fraud Claims

    A Connecticut federal judge granted in part the U.S. Securities and Exchange Commission's motion for final judgment in a securities fraud suit against the CEO of a penny stock company, finding that a less severe punishment than requested is appropriate due to the CEO's financial situation.

  • February 22, 2024

    Chancery Defers Settlement To Ponder Control Challenges

    Hopes for a quick end to litigation between a Texas-based insurance provider and a stockholder who sued over disproportionate insider control slipped away at a hearing in Wilmington, Delaware, Thursday after the presiding judge demanded to know how related Chancery Court litigation might affect a proposed settlement.

  • February 22, 2024

    Exxon Wants To Press Forward With Activist Investor Case

    ExxonMobil Corp. says it should be allowed to move forward with a lawsuit against a pair of activist investors who proposed that the company speed up the pace of its greenhouse gas emission reductions, arguing that the investors' decision to withdraw the proposal will not prevent a similar one from being filed in the future.

  • February 22, 2024

    Latham, Davis Polk Rep As Reddit Files For IPO

    Social media platform Reddit on Thursday formally outlined its plans to go public with a long-rumored initial public offering that's being guided by Latham & Watkins LLP and underwriters' counsel Davis Polk & Wardwell LLP.

  • February 22, 2024

    Study Aid Biz Chegg Tries To Sink 'Cheating' Suit In Del.

    Attorneys for online book and study aid giant Chegg Inc. told a Delaware vice chancellor on Thursday that stockholders have failed to assemble defensible claims in a suit accusing the company of operating as a cheating service for students, saying they are trying to circumvent a stay for litigation in California federal court.

  • February 22, 2024

    Opioid Drug Co. Sued In Del. For Promotion-Tied Stock Drop

    Stockholders of opioid drug producer Talphera Inc. have sued the company's top officers and directors in Delaware's Court of Chancery, seeking derivative damages for harm to the business purportedly caused by the dangerous promotion of a flagship opioid.

  • February 22, 2024

    Comerica Brass Sued Over Benefit Cards Contract Oversight

    Executives and directors of financial services company Comerica were hit with a shareholder derivative suit alleging they failed to disclose the company was mismanaging a lucrative government benefits card program by allowing sensitive data to be handled at an international vendor's office.

  • February 22, 2024

    Sorrento Says US Trustee's Protest Of Texas Venue Off Base

    Sorrento Therapeutics Inc. told a Texas bankruptcy court the company's choice to bring a Chapter 11 in the Lone Star State was sound, so the court should ignore a call from the U.S. Trustee's Office to trash or relocate the case.

  • February 22, 2024

    FTX Can Cash Out $500M Investment In AI Biz To Fund Ch. 11

    Insolvent cryptocurrency exchange FTX Trading Ltd. received a Delaware bankruptcy judge's approval Thursday to sell off its equity stake in an artificial intelligence technology company launched by former members of OpenAI that FTX purchased for $500 million in 2021.

  • February 22, 2024

    AI Software Co. Hasn't Actually Developed AI, Suit Says

    Software and data engineering company Innodata Inc. has been hit with a proposed class action alleging its stock price dropped more than 30% after a financial research firm published a report saying its promised artificial intelligence technology is "smoke and mirrors" and that its marketing claims are like "putting lipstick on a pig."

  • February 22, 2024

    Brazilian Heiress' Daughter Can't Escape Colo. Collection Suit

    The daughter of a Brazilian heiress must face claims that she stashed money for her mom to avoid a nearly $20 million court judgment, after a Colorado state judge said a creditor has alleged enough signs of fraud for the allegations to proceed.

  • February 22, 2024

    Healthcare Biz Founder Seeks Legal Costs For Fraud Fight

    The founder and former CEO of a healthcare business that provides medical device monitoring services has sued the company in Delaware Chancery Court, seeking to have it pay her legal costs in defense of fraud claims lodged against her.

  • February 22, 2024

    Alcoa Stockholder Challenges Board Nominee Rules In Del.

    Alcoa Corp. was hit with a proposed class action in Delaware's Court of Chancery on Wednesday by a shareholder seeking to invalidate a "highly problematic" and "coercive" company bylaw that allegedly serves to deter stockholder nominations.

  • February 22, 2024

    B. Riley Stands By Franchise Group Deal After Internal Review

    B. Riley Financial reaffirmed its commitment to the $2.6 billion take-private deal for Franchise Group Inc. despite the misconduct of former Franchise Group CEO Brian Kahn, saying on Thursday that its audit committee determined through a nine-week internal review that B. Riley had no knowledge of or involvement in the misconduct.

  • February 22, 2024

    Scammer Who Did Time In Google Fraud Admits To 2nd Caper

    A Dutch citizen who previously served time for a scam involving fake, early-issue Google shares copped Thursday in Manhattan federal court to a new fraud caper, after prosecutors said he tricked an investor by dangling a fake Airbnb Inc. equity stake.

  • February 22, 2024

    Alaska Pot Dispensary Owner Charged With COVID Aid Fraud

    An Alaska businesswoman has been indicted on allegations that she used misrepresentations to obtain forgivable loans meant to assist small businesses during the COVID-19 pandemic.

  • February 21, 2024

    Ex-KPMG Exec, Ex-Oversight Staffer Get Convictions Vacated

    A New York federal judge has vacated the convictions and guilty pleas of an ex-KPMG executive and a former member of the Public Company Accounting Oversight Board in a scheme to use stolen confidential information to help the auditing firm get better results on audits conducted by the regulatory board.

  • February 21, 2024

    Texas Crypto Firm Sues SEC To Avoid 'Unlawful' Enforcement

    A Texas-based crypto firm has sued the U.S. Securities and Exchange Commission in a bid to convince a Texas federal court to find that digital assets traded on public exchanges are not securities and protect it from potential registration enforcement cases.

  • February 21, 2024

    Crypto Law Firm Invokes Coinbase Petition In SEC Challenge

    Crypto-focused law firm Hodl Law PLLC told the Ninth Circuit on Wednesday that its standing to sue the U.S. Securities and Exchange Commission over its crypto policy is undeniable now that the agency has decided not to take up a rulemaking petition from crypto exchange Coinbase.

  • February 21, 2024

    NY Judges Question Lehman's Bid To Undo CDS Trial Loss

    A panel of New York appeals court judges on Wednesday appeared reluctant to undo a bench trial loss Lehman Bros.' bankrupt European unit suffered last year in a suit attempting to clawback nearly half a billion dollars from Assured Guaranty over alleged losses on credit default swaps tied to the 2008 financial crisis.

Expert Analysis

  • 9 Considerations For Divestitures, Carveouts And Spinouts

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    Amid new economic optimism, data protection, transitional services and seven other considerations can help legal practitioners untangle complex divestitures, carveouts and spinouts to unlock value for corporate sellers, say Kimberly Petillo-Décossard and Kristen Rohr at White & Case.

  • Why Fla. High Court Adopting Apex Doctrine Is Monumental

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    The Florida Supreme Court recently solidified the apex doctrine in the Sunshine State, an important development that extends the scope of the doctrine in the state to include both corporate and government officials, and formalizes the requirements for a high-level corporate official to challenge a request for a deposition, says Laura Renstrom at Holland & Knight.

  • 5 Lessons For SaaS Companies After Blackbaud Data Breach

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    Looking at the enforcement actions that software-as-a-service provider Blackbaud resolved with state attorneys general, the U.S. Securities and Exchange Commission and the Federal Trade Commission in the past year can help SaaS companies manage these increasingly common forms of data breaches, say attorneys at Orrick.

  • Del. Ruling Stands Out In Thorny Noncompete Landscape

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    In Cantor Fitzgerald v. Ainslie, the Delaware Supreme Court last month upheld the enforceability of forfeiture-for-competition provisions in limited partnership agreements, providing a noteworthy opinion amid a time of increasing disfavor toward noncompetes and following a string of Chancery Court rulings deeming them unreasonable, say Margaret Butler and Steven Goldberg at BakerHostetler.

  • SEC Regs Give Banks Chance To Step Up Cyber Safety Game

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    Just as the Sarbanes-Oxley Act forced financial institutions to undertake best practices in recordkeeping, the U.S. Securities and Exchange Commission’s recently effective cybersecurity regulations stand to similarly drive those same enterprises to seek out and implement best practices in cybersecurity, to everyone's benefit, says James Gerber at SimSpace.

  • A Post-Mortem Analysis Of Stroock's Demise

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    After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.

  • Predicting DeFi Regulations At Home And Abroad In 2024

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    Though decentralized finance has advocates on both sides of the Atlantic in figures like U.S. SEC Commissioner Hester Peirce and U.K. Prime Minister Rishi Sunak, DeFi in 2024 seems likely to be folded into existing regulatory frameworks in the U.K. and EU, while anti-crypto scrutiny may discourage DeFi’s growth in the U.S., say Daniel Csefalvay and Eric Martin at BCLP.

  • Opinion

    Exxon Court Should Clarify Shareholder Proposal Exclusion

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    ExxonMobil last month took the unusual action of asking a Texas federal judge whether a proposal from climate activists seeking to limit oil and gas sales could be excluded from its 2024 proxy statement, and the court should use this opportunity to reevaluate SEC policy and set clear limits on when shareholder proposals can be included, says Stephen Bainbridge at UCLA School of Law.

  • Mitigating The Risk Of Post-Closing M&A Earnout Disputes

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    Today's uncertain deal environment makes a well-crafted earnout an excellent way for parties to accomplish a desired transaction that would not otherwise occur, but transacting parties also need to take key steps to avoid the risk of post-closing disputes that earnouts can present, say Chad Barton and Claire Lydiard at Holland & Knight.

  • Understanding SEC's Focus Amid Lack Of Final AI Rules

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    Although the U.S. Securities and Exchange Commission's proposed rules to govern artificial intelligence are likely far from being finalized, understanding existing regulatory provisions that could address AI risks with respect to development, disclosure, compliance and data protection could help firms anticipate and avoid pitfalls, say attorneys at Skadden.

  • Preparing For DOJ's Data Analytics Push In FCPA Cases

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    After the U.S. Department of Justice’s recent announcement that it will leverage data analytics in Foreign Corrupt Practice Act investigations and prosecutions, companies will need to develop a compliance strategy that likewise implements data analytics to get ahead of enforcement risks, say attorneys at Cozen O'Connor.

  • How High Court SEC Case Could Affect The ITC

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    While the U.S. Supreme Court’s upcoming ruling in U.S. Securities and Exchange Commission v. Jarkesy will likely spare the U.S. International Trade Commission from major operative changes, the ITC’s ability to issue penalties for violations of its orders may change, say Gwendolyn Tawresey and Ryan Deck at Troutman Pepper.

  • Open Questions After Elastos Crypto Class Action Settlement

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    The recent settlement in Owen v. Elastos Foundation resolving a class action fight over whether Elastos was required to register an initial coin offering with U.S. regulators has raised several questions that may be of interest to lawyers litigating cryptocurrency-related cases, including whether a crypto token constitutes a security under U.S. law, says Bradley Simon at Schlam Stone.

  • Del. Segway Dismissal Suggests Execs Not Liable For Biz Risk

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    While the debate continues within the Delaware Chancery Court over whether Caremark liability applies to matters of pure business risk, the court's recent rejection of Segway’s suit against the ex-president who oversaw financial difficulties suggests the court is uninterested in undermining the deference the business judgment rule grants corporate fiduciaries, say attorneys at Dechert.

  • $32.4M Fine For Info Disclosure Is A Stark Warning For Banks

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    The New York State Department of Financial Services and the Federal Reserve's fining of a Chinese state-owned bank $32.4 million last month underscores the need for financial institutions to have policies and procedures in place to handle confidential supervisory information, say attorneys at Sidley.

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