Securities

March 03, 2025
FDIC Beats Bank's Constitutional Fight Over In-House Judges

A Kansas federal judge tossed on Monday a local bank's constitutional challenge to administrative law judges presiding over the Federal Deposit Insurance Corp.'s $20.5 million anti-money laundering enforcement proceeding against the bank, ruling that the district court does not have the jurisdictional authority to hear the bank's Seventh Amendment claims.
March 03, 2025
Adviser Funneled Investor Cash Into $300M Ponzi, Suit Says

A Georgia financial adviser has been hit with a proposed class action alleging that she funneled investors into a company at the heart of what the U.S. Securities and Exchange Commission has called a $300 million Ponzi scheme.
March 03, 2025
Broker Can't Use Jarkesy To Slip SEC's Pre-IPO Fraud Suit

A New York federal judge on Monday ordered an unregistered broker-dealer and its managing member to comply with the U.S. Securities and Exchange Commission's administrative order requiring them to pay roughly $3.5 million to settle claims they made over $65 million selling interests in a portfolio of companies that hadn't yet gone public.
March 03, 2025
SEC's Peirce Taps Ex-Willkie Partner For Crypto Task Force

The U.S. Securities and Exchange Commission has hired a former Willkie Farr & Gallagher LLP partner into a leadership role in its new task force created to transform the agency's approach toward the cryptocurrency industry.
March 03, 2025
Some 'ComEd Four' Bribery Counts Vacated Over Jury Charge

An Illinois federal judge on Monday ordered a retrial on four bribery charges in the case against an ex-Commonwealth Edison executive and three lobbyists convicted of conspiring to bribe former Illinois House Speaker Michael Madigan, finding the jury was improperly instructed in the wake of a recent U.S. Supreme Court ruling but leaving intact the overarching conspiracy conviction.
March 03, 2025
Jarkesy Can't Get Penny Stock Co. Out Of SEC Penalty

The Second Circuit on Monday upheld the U.S. Securities and Exchange Commission's courtroom victory against a penny stock company found to have misled its investors about its financial state, ruling that the company couldn't lean on the U.S. Supreme Court's Jarkesy ruling to argue that a jury should have determined its punishment.
March 03, 2025
Eckert Seamans Will Pay $38M To Par Funding Investors

A Florida federal judge has signed off on a $38 million deal resolving legal malpractice claims against Eckert Seamans Cherin & Mellott LLC by investors who fell victim to a Ponzi scheme carried out by Par Funding, which enlisted the firm to help create the business model the lender ultimately used in the scheme.
March 03, 2025
Chancery OKs Amended Suit In $8B Paramount Sale Fight

Delaware's chancellor agreed Monday to the filing of an amended stockholder challenge to Paramount Global's $8.2 billion merger with Skydance Media and ordered responses by Tuesday from parties affected by a stockholder call for a fast-tracked probe of Paramount's response to an alternative, $13.5 billion offer.
March 03, 2025
Kraken Joins Crypto Cos. Announcing SEC Case Dismissals

Crypto exchange Kraken said Monday that the U.S. Securities and Exchange Commission is also walking away from its registration suit amid a bevy of crypto case dismissals and investigation closures that have come as part of a new approach to digital asset policy.
March 03, 2025
Defendant Admits To 'Shell Factory' Pump-And-Dump Scheme

The final defendant rounded up in the "Shell Factory Fraud" prosecution of a group that created fake shell companies as part of a pump-and-dump scheme pled guilty Monday in Miami to one count of securities fraud.
March 03, 2025
3rd Circ. Preview: Litigation Funder, J&J Seek Relief In March

The Third Circuit's case lineup this month will task panels with determining if an American litigation funder can keep its dispute with a German law firm in federal court, and whether Johnson & Johnson can decertify class claims accusing the company of artificially inflating its stock price by failing to disclose the alleged cancer risks of its talc products.
March 03, 2025
Former SDNY Top Prosecutor Kim Returns To Private Sector

Veteran white-collar defense lawyer Edward Kim, who most recently served as acting U.S. attorney for the Southern District of New York, said Monday he is returning to the firm he founded, Krieger Lewin LLP, which will be known as KKL.
March 03, 2025
Coinbase Wants To Know SEC Spend On Crypto Enforcement

Crypto exchange Coinbase wants to know how much the U.S. Securities and Exchange Commission spent on its "regulation-by-enforcement campaign" against crypto firms under previous Chair Gary Gensler, according to a Freedom of Information Act request submitted on Monday.
March 03, 2025
White & Case Hires Litigator Trio In New York From Weil

White & Case LLP announced Monday that it has continued its expansion in New York with the addition of a trio of litigators from Weil Gotshal & Manges LLP, including the co-head of Weil's global litigation practice.
February 28, 2025
SEC, Ex-Silvergate CFO Trade Shots Over Enforcement Case

The U.S. Securities and Exchange Commission on Friday urged a New York federal court not to throw out its claims that the former chief financial officer of defunct crypto-focused bank Silvergate Capital concealed the bank's rocky financial position, saying that the executive is mischaracterizing its claims.
February 28, 2025
Del. Judge Orders Trial On AMC Stock Swap Coverage Fight

A Delaware Superior Court judge ordered a jury trial Friday on an AMC Entertainment Holdings Inc. insurer's claim that it never consented to cover part of a $99.3 million settlement with theater chain stockholders who challenged a preferred share conversion and reverse stock split.
February 28, 2025
Space Co. Lied About Rocket Launch Timeline, Investors Say

Aerospace company Rocket Lab USA Inc. has been hit with a proposed shareholder class action in California federal court alleging it intentionally concealed issues that would delay the test and commercial launches of a vehicle it developed.
February 28, 2025
Beyond Meat Fries Investors' Fast-Food Production Woes Suit

A Los Angeles federal judge has tossed, for good, a reworked investor class action accusing Beyond Meat of concealing major problems with its efforts to scale production on plant-based meat substitutes for fast-food chains like McDonald's, KFC and Pizza Hut.
February 28, 2025
SEC's Crypto Turn Could Undermine Staff, Dem Member Says

The U.S. Securities and Exchange Commission's sole Democratic member has spoken out against its postelection retreat from prosecuting crypto cases, warning that recent actions like the voluntary dismissal of a lawsuit against Coinbase threaten to undermine the agency's enforcement staff.
February 28, 2025
Aimmune Shareholders' $27.5M Deal Over Sale To Nestle OK'd

Aimmune Therapeutics Inc. stockholders won preliminary approval in California federal court on Friday for a $27.5 million settlement of their securities fraud class action alleging that Aimmune was falsely undervalued before its merger with Nestlé Health Science SA.
February 28, 2025
Bioventus Hit With Del. Derivative Suit After NC Class Deal

A Bioventus Inc. stockholder sued 15 current and former directors and officers of the medical device venture in Delaware's Court of Chancery to recover for the company tens of millions in losses tied to alleged mismanagement and corporate duty failures over a two year period.
February 28, 2025
NY Man Found Guilty Of $7M Crypto Investment Scheme

A New York man has been found guilty by a California federal jury of 14 counts related to allegations that he stole millions of dollars' worth of investment funds and moved them to sports betting sites located outside the U.S.
February 28, 2025
Carbon Project Investor C-Quest Hits Ch. 7

Carbon project developer C-Quest Capital has filed for Chapter 7 liquidation in a Delaware bankruptcy court as its ex-CEO faces charges he fraudulently obtained millions of dollars worth of carbon credits.
February 28, 2025
Financial Adviser Denied Bond After Admitting $37M Tax Fraud

A Mississippi federal judge denied bond to a financial adviser who admitted promoting an illegal tax shelter involving royalty deductions that caused a $37 million tax loss, according to court documents.
February 28, 2025
Time To Abolish IPO 'Bureaucracy,' Law Professor Says

The U.S. Securities and Exchange Commission's long-established practice of vetting initial public offering filings through back-and-forth comment letters with companies — essentially a screening process intended to rectify faulty disclosures before public dissemination — is a bureaucratic relic that should be done away with, a law professor argues.

Expert Analysis

Opinion

3 New Year's Resolutions For Antitrust Agencies To Consider

James Fredricks at Skadden rings in 2025 with his wish list for the federal antitrust agencies, starting with a provision for a presumptive safe harbor for information sharing.
New Year, New Risks: 8 Top Cyber Issues For Finance In 2025

As financial institutions forge ahead in 2025, they must strike a delicate balance between embracing technological innovation and guarding against its darker threats, which this year could include everything from supply chain vulnerabilities to deepfakes, say attorneys at Baker Donelson.
FTC Focus: A Changing Of The Guard

While rigorous antitrust enforcement is unlikely to slow down at the Federal Trade Commission, the focus will undoubtedly change, including when it comes to Big Tech, as Andrew Ferguson prepares to take the reins from Chair Lina Khan, say attorneys at Proskauer.
5th Circ.'s Nasdaq Ruling Another Piece In DEI Policy Puzzle

The Fifth Circuit's recent en banc opinion vacating Nasdaq's board diversity listing rule wades into the hotly debated topic of diversity, equity and inclusion initiatives at a time when many public companies are navigating the attention that DEI commitments are drawing from activists and shareholders, say attorneys at Debevoise.
8 Trends And Predictions Following PE's Late 2024 Surge

Private equity will remain at the forefront of value creation in 2025, and anticipated market trends include sponsors' desire to return capital to investors and a more business-friendly tack by the Antitrust Division of the U.S. Department of Justice, say attorneys at Weil.
Series

Playing Esports Makes Me A Better Lawyer

Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
Lessons From The SEC's 2024 Crackdown On AI Washing

AI washing was the subject of increased scrutiny from the U.S. Securities and Exchange Commission in 2024 following a surge in the commercial adoption of generative artificial intelligence technologies in 2023, highlighting the importance of transparency, accuracy and accountability when communicating about AI, say attorneys at Perkins Coie.
The 6 Most Significant FCRA Litigation Developments Of 2024

From a key sovereign immunity decision at the U.S. Supreme Court to a ruling on creditworthiness out of the Seventh Circuit, several important Fair Credit Reporting Act cases wound their way through the courts in 2024, each offering takeaways for both plaintiffs and defendants, say attorneys at Shipkevich.
An Associate's Guide To Career Development In 2025

As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.
The Securities Litigation Trends That Will Matter Most In 2025

2025 is shaping up to be a significant year for securities litigation, as plaintiffs and defendants alike navigate shifting standards for omission theories of liability, class certification, risk disclosure claims and more, say attorneys at Willkie.
Predicting The Lasting Changes CFPB May Face In 2025

President-elect Donald Trump and the incoming Republican-controlled Congress' likely attempts to reshape the Consumer Financial Protection Bureau could significantly alter its rulemaking, supervisory and enforcement abilities for years to come, says Jim Sandy at McGlinchey Stafford.
What To Watch For In The 2025 Benefits Landscape

While planning for 2025, retirement plan sponsors and service providers should set their focus on phased implementation deadlines under both Secure 1.0 and 2.0, an upcoming U.S. Supreme Court ruling, and the fate of several U.S. Department of Labor regulations, says Allie Itami at Lathrop GPM.
How White Collar Enforcement May Shift In Trump's 2nd Term

After President-elect Donald Trump returns to the White House next month, the administration’s emphasis on immigration laws, drug offenses and violent crime will likely reduce the focus on white collar crime overall, but certain areas within the white collar world may see increased activity, say attorneys at Keker Van Nest.
COP29 Offers Pathway To A Global Carbon Market

COP29, the recently concluded United Nations climate conference, represented a breakthrough in the establishment of standards for a global carbon market — and voluntary carbon market participants in the U.S. and elsewhere can enhance the value of their projects by aligning them with these standards, say attorneys at Morgan Lewis.
New Trump Admin May Bring Financial Oversight Turbulence

As President-elect Donald Trump prepares to begin his second term, his top financial market regulatory and securities law enforcement appointees, campaign promises, and regulatory preferences foretell a period of muddy regulatory waters, say attorneys at Kroll.