Practice Areas

Securities

U.S. District Judge Louis Stanton

Banks Beat FDIC Suit Over Mortgage-Backed Securities

By Jan Wolfe |

Adopting an argument that other courts have rejected, a federal judge in Manhattan ruled that the FDIC waited too long to sue Deutsche Bank, Royal Bank of Scotland, Credit Suisse and other banks that sold mortgage-backed securities.

Luis Aguilar

SEC Commissioner Luis Aguilar's Disturbing Dissent

By Susan Beck |

Luis Aguilar lashed out at his fellow SEC commissioners for the weak penalties they imposed on a former CFO. But the most disturbing part of his dissent was his accusation that the agency waters down the facts it releases to the public about cases it settles.

SEC Pays Whistleblower $300K

By Jenna Greene |

The SEC paid a whistleblower who first tried to report wrongdoing internally more than $300,000. It's the first time the SEC has paid an award to a compliance officer.

U.S. District Court Judge Denise Cote

Remaining Banks Hit Another Dead End in FHFA Case

By Jan Wolfe |

We've lost count of how many times the banks sued by the Federal Housing Finance Agency for selling shoddy mortgage-backed securities have had their defenses slapped down by U.S. District Judge Denise Cote.

Geithner’s Lawyer Defends Redactions in S&P Litigation

By Amanda Bronstad |

Former Treasury Secretary Timothy Geithner is fighting a request by Standard & Poor’s Financial Services LLC to turn over unpublished notes from his memoir that he considers to be “private, confidential or sensitive materials.”

Robbins Geller Sanctioned for ‘Reckless’ Conduct

By Jan Wolfe |

The Boeing Company pursued the firm for bringing a botched securities fraud case based on the testimony of an unreliable confidential witness.

Judge Axes Retainer for Cotchett From HP Derivative Deal

By Marisa Kendall |

A federal judge in San Francisco said he wouldn't OK a planned partnership between plaintiffs lawyers and Hewlett Packard.

Shareholder Firms Clash Over Client Referrals

By Jan Wolfe |

Brower Piven and Harwood Feffer worked together to tee up plaintiffs for an investor class action that ultimately settled for $586 million. But the relationship has since soured, judging by a new contract battle between the firms.

FHFA Reaches $1.2 Billion Deal with Goldman

By Susan Beck |

This deal brings the FHFA’s recovery from major banks to more than $21 billion, reinforcing that the agency’s litigation crusade, begun in 2011 against 18 banks and led by Philippe Selendy of Quinn Emanuel Urquhart & Sullivan, has been a monumental success.

Starr’s Claims Against Chinese Company Survive Morrison

By Ross Todd |

Maurice Greenberg’s Starr Investments claimed it was fraudulently induced to buy stock in China MediaExpress, one of many Chinese companies to be listed on a U.S. stock exchange through a so-called reverse merger.

Whistleblowers Stand Out in $16.65 Billion BofA Deal

By Susan Beck |

More than $1 billion of Thursday's megasettlement with Bank of America resolves claims first brought by private whistleblowers—including one case involving a two-time False Claims Act tipster who's married to one of "The Real Housewives of New Jersey."

Bank of America Monitor Vows to Speed Mortgage Relief

By Karen Sloan |

Eric Green, court-appointed independent monitor in the nearly $17 billion Bank of America settlement announced on Thursday, understands that he has his work cut out for him.

Banks Lose Last-Ditch Bid to Block NCUA Claims as Time-Barred

By Jan Wolfe |

The Tenth Circuit ruled once again that the National Credit Union Administration didn't wait too long to sue big banks that sold billions of dollars in ill-fated mortgage-backed securities to federally chartered credit unions.

Vivendi Takes Aim at Remains of $9.3B Shareholder Verdict

By Jan Wolfe |

The U.S. Supreme Court's decision in Morrison v. NAB already helped slash a rare securities class action jury verdict against Vivendi. Now the company's lawyers at Weil and Cravath are busy trying to bury what's left of the spoils.

Second Circuit Swats Down Fee Bid in Citi Say-on-Pay Case

By David Bario |

Barely 24 hours after hearing oral arguments, a federal appellate panel refused Wednesday to revive claims that plaintiffs lawyers deserve $6 million in fees for supposedly helping to oust former Citigroup CEO Vikram Pandit and another Citi exec two years ago.

S&P Expands Demands for DOJ, Treasury Department Records

By Amanda Bronstad |

Standard & Poor's is demanding that the Justice Department and former Treasury Secretary Timothy Geithner turn over more documents, including communications with President Obama, in the U.S. government's $5 billion lawsuit against the ratings agency.

Fraud Suit Over Twitter IPO Fizzles at Second Circuit

By Jan Wolfe |

Lawyers at Simpson Thacher made quick work of a $124 million lawsuit alleging that Twitter duped two investment advisers into propping up demand for its shares ahead of the company's initial public offering.

The U.S. Court of Appeals for the Second Circuit in Manhattan.

S&C Prevails Again for Porsche in Battle With Hedge Funds

By Ross Todd |

Echoing a 2012 ruling by a state appeals court, the Second Circuit agreed with Porsche's lawyers at Sullivan & Cromwell that billions of dollars in claims against the German automaker don't belong in the United States.

Second Circuit Sides With Siemens in FCPA Whistleblower Case

By Susan Beck |

The ruling is a victory for Siemens and its lawyers at Kirkland. But it's a disappointment for those who hoped the court would clarify whether Dodd-Frank protects employees who are fired after blowing the whistle internally but before alerting the SEC.

Bernie Madoff

Judge Trims Madoff Trustee's Suit Against Merkin Funds

By Jan Wolfe |

Irving Picard of Baker & Hostetler, the liquidation trustee for Bernie Madoff's fraud-soaked investment firm, suffered a second setback this week in his bankruptcy court fight with J. Ezra Merkin and the Madoff feeder funds he managed.

Irving Picard

Madoff Trustee Loses Bid to Block Fairfield, Merkin Deals

By Jan Wolfe |

Irving Picard, the trustee tasked with unwinding Bernie Madoff's investment firm, has hit another wall in his efforts to block two big-dollar settlements with companies that once funneled cash into Madoff's Ponzi fraud.

Litigator of the Week: David Wasinger of The Wasinger Law Group

By Jan Wolfe |

In his first and only forays into whistleblower litigation, Wasinger helped the government win nearly $2 billion from Wall Street—including a $1.27 billion ruling against Bank of America that came at precisely the wrong time for the bank.

Carlyle Hangs Tight in Buyout Firms Collusion Case

By David Bario |

Shareholders have now inked deals worth $475.5 million with private equity firms accused of scheming to drive down the value of major leveraged buyout deals. But Carlyle Group and its lawyers at Latham have shown no signs of surrender ahead of a looming trial this fall.

Citi Dodges CDO Claims Brought by S. Korea's Woori Bank

By Jan Wolfe |

Judge Jed Rakoff may have thought Citigroup's $285 million settlement with the SEC amounted to little more than a slap on the wrist. But at least the SEC recovered something from Citi, which is more than we can say for South Korea's Woori Bank and its lawyers at Hausfeld.

Securities Litigation Surges Against Biotech Companies

By Marisa Kendall |

Overall, class action filiings are down for the first six months of 2014, but the pace doubled against biotech companies.

U.S. District Judge Jed Rakoff

Rakoff Grudgingly Approves $285 Million Citigroup Deal

By Ross Todd |

U.S. District Judge Jed Rakoff didn't give up without signaling that the Second Circuit made a terrible error in forcing him to approve the SEC's settlement with Citigroup over a doomed-to-fail investment.

The American International Building, located in New York, NY.

Investors Settle AIG Crisis Claims for $970.5 Million

By Jan Wolfe |

After Halliburton lost its bid to upend the securities litigation landscape at the U.S. Supreme Court, AIG and its lawyers at Weil, Gotshal & Manges opted to cut their losses in an investor class action stemming from the financial crisis.

A vial of Allergan Inc. Botox cosmetic and a syringe.

Latham, Wachtell File Takeover Defense Suit for Allergan

By Ross Todd |

Allergan claims that hostile bidder Valeant colluded with activist investor Bill Ackman, enabling Ackman's hedge fund Pershing Square to trade on inside information.

Patent Claims Drawing Derivative Suits

By Marisa Kendall |

Patent judgments don't usually spawn shareholder derivative litigation. But a $1.5 billion award against Marvell Technology is so juicy, plaintiffs securities lawyers can't stay away.

BofA Fined $1.27 Billion Over Countrywide Mortgage 'Hustle'

By Jan Wolfe |

What does a dead cow have to do with a mortgage sold by Countrywide Financial? U.S. District Judge Jed Rakoff has the answer, and it's a costly one for Bank of America.

Judge Shira A. Scheindlin, Southern District of New York

Judge Guts $1.4B Damages Claim in Wyly Brothers' Case

By Jan Wolfe |

Ahead of a damages-only bench trial set for next month, a judge precluded the SEC from recovering the total profits it accuses Sam and Charles Wyly of netting from stock trades orchestrated through a secret offshore system.

Burford Breaks Half-Billion Dollar Mark After Bond Offering

By Ross Todd |

With capital raised in a first-of-its-kind bond offering by Burford's U.K. subsidiary, the company said its war chest of assets under management now exceeds $500 million.

Goldman CEO Lloyd Blankfein testifies before a Senate panel in April 2010.

Goldman Mulls Deal as Banks Suffer New Blow in FHFA Cases

By Jan Wolfe |

With trial approaching for Goldman, RBS, HSBC and Nomura, a judge rejected the argument that Fannie Mae and Freddie Mac knew they were being misled about billions of dollars in residential mortgage-backed securities they purchased before the financial crisis.

Partner Outs Dodd-Frank Tipster, Demands Cut of $14.7M Award

By David Bario |

Despite receiving thousands of tips and shelling out eight awards to Dodd-Frank whistleblowers, the SEC has managed to keep the identities of its informers tightly under wraps. But a leak was inevitable, and now we've got one, courtesy of a fight over—what else—money.

Bankrupt Biotech Targets Nixon Peabody, Mintz Levin

By David Bario |

Neogenix Oncology Inc., a bankrupt would-be developer of cancer diagnostic and treatment products, blamed its outside lawyers for allowing the company to pursue an illegal fund-raising strategy for more than five years.

U.S. District Judge J. Paul Oetken during his nomination hearing in 2011.

Citing 'Smoking-Gun' Claims, Judge OKs ITT Investor Case

By Jan Wolfe |

ITT Educational Services and its lawyers at Gibson Dunn suffered their latest setback on Tuesday, when a judge refused to dismiss most of a shareholder class action alleging that the for-profit education company duped investors about rising student loan default rates.

Deloitte Knocks Out Hedge Funds' Suit Over China Audits

By Jan Wolfe |

Handing a win to defense lawyers at Sidley and Hughes Hubbard, a judge on Monday dismissed claims that Deloitte defrauded ChinaCast Education Corp. investors by failing to detect alleged fraud at the Shanghai-based company.

Former Autonomy Exec Takes Aim at HP's Derivative Deal

By Marisa Kendall |

A proposed settlement between HP and plaintiffs firms is "collusive and unfair," according to attorney John Keker, who represents Sushovan Hussain.

D.C. Circuit Rejects Payback for Stanford Fraud Victims

By Jenna Greene |

In a bid to win compensation for investors swindled by R. Allen Stanford, the SEC was rebuffed by the D.C. Circuit, which ruled that the investors aren't eligible for protection as customers.

Keker Scores Ninth Circuit Win for Intuitive Surgical

By Marisa Kendall |

A decision from the Ninth Circuit U.S. Court of Appeals could raise the bar for plaintiffs alleging that corporate executives knowingly misled investors.

Judge Shira A. Scheindlin, Southern District of New York

Lloyd's Can't Duck Claims Over MBIA Restructuring Fight

By David Bario |

After toiling through four years of litigation related to MBIA Inc.'s 2009 restructuring, the bond insurer's lawyers at Kasowitz Benson won a ruling this week that puts Lloyd's of London and other underwriters on the hook for a hefty portion of MBIA's defense tab.

Quinn Emanuel Notches Another Settlement in BofA Litigation

By Jan Wolfe |

In Wednesday's deal with Bank of America, Quinn Emanuel client AIG will pocket $650 million in cash, plus its pro rata share of an earlier $8.5 billion settlement between BofA and mortgage-backed securities investors.

Second Circuit Tosses Deutsche Bank Shareholder Class Action

By David Bario |

Handing a win to lawyers at Cahill and Skadden, the Second Circuit affirmed Wednesday that its 2011 decision in Fait v. Regions Financial dooms a long-running securities class action against Deutsche Bank AG and a half-dozen big underwriting banks.

Fifth Circuit Revives BP Oil Spill ERISA Class Action

By Jan Wolfe |

A U.S. Supreme Court decision from last month has breathed new life into claims that BP mismanaged employee stock ownership programs that plummeted in value after the 2010 Deepwater Horizon oil spill.

Underwriters Can't Dodge Puda Coal Securities Class Action

By Jan Wolfe |

For the law firms driving consolidated litigation over Puda's demise, Monday's ruling is a welcome bit of good news. For the boutique investment banks Macquarie Capital and Brean Murray Carret & Co., not so much.

What's Missing in Citigroup's $7 Billion RMBS Deal?

By Susan Beck |

The DOJ cited "the strength of the evidence" warranting Citigroup's $7 billion payment over sales of residential mortgage-backed securities. But there's little evidence to be found in the statement of facts accompanying Monday's deal.

Rengan Rajaratnam, left, exits federal court with his attorney Daniel Gitner in New York on Tuesday, July 8, 2014.

Litigator of the Week: Daniel Gitner of Lankler Siffert & Wohl

By Jan Wolfe |

Gitner kept U.S. Attorney Preet Bharara from claiming another scalp in his war on insider trading. More importantly, he kept his client out of jail.

Goldman Sachs Ruling Can't Save Cosmetics Class Action

By Ross Todd |

What do mortgage-backed securities have to do with antiwrinkle creams? Not a whole lot, the Second Circuit told a group of disappointed class action lawyers on Thursday.

Pfizer World Headquarters in New York City.

Loss of Key Witness Dooms Pfizer Investor Class Action

By Jan Wolfe |

In a victory for Beth Wilkinson of Paul Weiss and her cocounsel at Simpson Thacher and DLA Piper, a federal judge in Manhattan refused to give plaintiffs a new chance to explain how Pfizer caused their losses.

U.S. Attorney Preet Bharara at a press conference in January.

Rajaratnam Verdict Ends U.S. Attorney's Winning Streak

By Jan Wolfe |

With some indirect help from the U.S. Court of Appeals for the Second Circuit, Rengan Rajaratnam and his lawyers at Lankler Siffert & Wohl have snapped Manhattan U.S. Attorney Preet Bharara's undefeated record in insider-trading cases.

Irving Picard

Madoff Trustee Barred from Seeking Foreign Bank Funds

By Jan Wolfe |

While most people were enjoying the tail end of a long holiday weekend, U.S. District Judge Jed Rakoff was busy Sunday delivering a key victory to foreign banks targeted by Irving Picard, the liquidation trustee for Bernie Madoff's defunct investment firm.

Irell Steers Goldman Banker Past SEC Insider Trading Probe

By Jan Wolfe |

Irell & Manella's John Hueston said the SEC once appeared on the brink of bringing insider trading claims against ex-Goldman Sachs banker Matthew Korenberg.

HP Writes Novel Ending to Derivative Suits Over Autonomy

By Marisa Kendall |

The company is enlisting plaintiffs attorneys including Joe Cotchett to go after former Autonomy insiders.

Miguel Estrada

Gibson Dunn Extends Hot Streak With NLRB Ruling

By Ross Todd |

Thursday's ruling in National Labor Relations Board v. Noel Canning caps a month of litigation victories involving Gibson, Dunn & Crutcher.

Appeals Court: KBR Can Keep Docs Secret From Whistleblower

By Andrew Ramonas |

Kellogg Brown & Root Services Inc. doesn't have to disclose certain documents to a whistleblower, the D.C. Circuit ruled on Friday in a dispute that raised concern among companies about the confidentiality of communications with in-house lawyers.

David Boies

Litigator of the Week: David Boies of Boies, Schiller & Flexner

By Ross Todd |

Unlike Boies's most famous cases, most Americans will never hear of Halliburton Co. v. Erica P. John Fund. But for corporations, or anyone whose bread is buttered litigating securities class actions, Halliburton was the big news at the Supreme Court this week.

HP Torpedoes Securities Suit Over Hurd Imbroglio

By Julia Love |

A federal judge tossed a securities class action on Thursday that slammed Hewlett-Packard Co. for touting its code of conduct even as its former CEO became embroiled in an ethics scandal.

Securities Lawyers Dodge a Bullet with Halliburton Ruling

By Jan Wolfe |

In Halliburton Co. v. Erica P. John Fund, the Supreme Court had a chance to shut down securities litigation as we know it. Instead, Monday's decision has plaintiffs lawyers thanking their stars—and may even promise more billable hours for defense lawyers.

Banks Cite Superfund Ruling in New Bid to Beat FHFA Claims

By Jan Wolfe |

Three hold-out banks that have refused to settle with the FHFA—Nomura, HSBC and Goldman Sachs—rehashed old arguments to defeat claims that they misled Fannie Mae and Freddie Mac about the riskiness of billions of dollars in securities backed by home loans.

Blair Nicholas of Bernstein Litowitz Berger & Grossmann.

Bernstein Litowitz Targets Banks in New RMBS Assault

By Jan Wolfe |

Judging by the flurry of lawsuits Bernstein Litowitz Berger & Grossmann just unleashed against some of the world's top banks, mortgage-backed securities litigation has life in it yet.

Skadden Stomps Securities Class Action Against BlackBerry

By David Bario |

BlackBerry Ltd. shareholders enjoyed some rare good tidings on Thursday when the company posted a surprise profit. But the news wasn't so good for investors-turned-plaintiffs suing BlackBerry in a proposed securities class action.

Plaintiffs Firms Jockey to Lead 'Flash Boys' Case

By Jan Wolfe |

The competition is heating up for plaintiffs firms jostling to win the lead counsel spot in litigation inspired by Michael Lewis's best-selling book on high-frequency trading.

Keurig K-Cups.

Ropes Defeats Keurig Green Mountain Securities Class Action

By Jan Wolfe |

The U.S. Court of Appeals for the Second Circuit affirmed a win that Ropes & Gray won for Keurig last year in Vermont, leaving the company free to fight other litigation battles related to its single-serving coffee brewers.

Plaintiffs Drop Securities Suit Against Biofuel Maker

By Marisa Kendall |

Lawyers at Milberg decided not to press on after U.S. District Judge William Orrick III dismissed their complaint against Amyris Inc.

Rajat Gupta

Rajat Gupta Loses Latest Appeal as Prison Term Kicks Off

By Ross Todd |

On the same day that Gupta begins a two-year prison term for criminal insider trading, Wilmer's Seth Waxman lost a bid to contest a hefty fine and injunction won by the SEC in its parallel civil case.

After Shake Ups, Securities Bar Is a Different Landscape

By Marisa Kendall |

The fall of Milberg Weiss and two decades of case law interpreting the PSLRA have changed the way securities suits are fought.

Goldman, Bain Settle Antitrust Suit for $121 Million

By Ross Todd |

Ropes & Gray, Sullivan & Cromwell, Jones Day and Kirkland & Ellis reached the agreement Wednesday on behalf of the two companies, which were accused of conspiring with other private equity players to deflate the price of corporate takeovers.

Davis Polk Report: A Trickle of Whistleblower Awards

By Susan Beck |

Although $739 million been set aside to reward those who report wrongdoing in the financial markets, awards to date have barely dented those accounts.

U.S. Attorney Urges Broad View of Anti-Kickback Law in Allergan Case

By Saranac Hale Spencer |

The Anti-Kickback Statute should be broadly interpreted as a bar to any kind of payment in exchange for health care services paid for by the government, the U.S. Attorney's Office in Philadelphia argued in a qui tam suit brought against a pharmaceutical company called Allergan.

Valukas Report Critical of GM Legal Dept.

By Sue Reisinger |

The reports cites a plea from King & Spalding attorney Philip Holladay: "This case needs to be settled . . . There is little doubt that a jury here will find that the ignition switch used on [a certain] 2005 Cobalt was defective and unreasonably dangerous."

Panel Upsets Rakoff Ruling in Citigroup/SEC Settlement

By Mark Hamblett |

Manhattan U.S. District Judge Jed Rakoff abused his discretion when he blocked a consent decree between the Securities and Exchange Commission and Citigroup in 2011, according to the Second Circuit.

U.S. District Judge Laura Taylor Swain

Judge Narrows Morgan Stanley MBS Case as Class Cert Looms

By Jan Wolfe |

A proposed class action against Morgan Stanley has served as a petri dish for key issues in mortgage-backed securities litigation, with mixed results for both sides.

Pfizer World Headquarters.

Judge Tosses Expert Testimony Against Pfizer

By Jan Wolfe |

The ruling could upend a huge securities fraud case against Pfizer over its marketing of the painkillers Celebrex and Bextra. Pfizer is represented by Paul Weiss, Simpson Thacher and DLA Piper.

Judge Dismisses Investor Suit Against Citigroup

By Jan Wolfe |

A Citigroup Inc. shareholder has hit a dead end in a lawsuit alleging that the bank didn't properly investigate its bets on collateralized debt obligations, marking a win for attorneys at Cravath, Paul Weiss and Wachtell.

S&P Seeks More Agency Files in Defending $5 Billion Claim

By Amanda Bronstad |

The National Credit Union Administration is fighting a subpoena by Standard & Poor's Financial Services LLC related to the Justice Department’s $5 billion case against the credit ratings agency.

Judge Nixes Most of Investor Class Action over BP Spill

By Jan Wolfe |

Sullivan & Cromwell continued to chip away at BP's potential liability to investors this week, scuttling the larger of two proposed classes in securities litigation related to the Gulf Coast oil spill.

Judge Brett Kavanaugh of the D.C. Circuit

Williams & Connolly Knocks Out Carlyle Investor Class Action

By Jan Wolfe |

The Carlyle Group LLP and its lawyers at Williams & Connolly killed off claims that the company misled investors about the riskiness of residential mortgage-backed securities.

BofA Escapes Investor Class Action Over AIG Suit

By David Bario |

The bank's lawyers at Munger Tolles and Winston & Strawn persuaded the Second Circuit that BofA didn't intend to dupe shareholders about a looming $10 billion lawsuit brought by AIG.

After Sentencing, SAC's Steinberg Looks to Second Circuit

By Jan Wolfe |

Three-and-a-half years in federal prison isn't exactly a slap on the wrist. Still, with prosecutors gunning to put convicted insider trader Michael Steinberg behind bars for nearly twice that long, Steinberg's sentencing on Friday could have gone much worse.

After SEC Win, Life Partners Can't Dodge Class Action

By Ross Todd |

Lawyers at Baker & McKenzie lost a bid to dismiss a proposed securities class action targeting Life Partners, which lets customers play poker with other people's life insurance policies.

Bradley Ruskin

Litigator of the Week: Bradley Ruskin of Proskauer Rose

By Jan Wolfe |

For many defense lawyers, winning a ruling that could stem the tide of shareholder lawsuits would be a career-defining achievement. For Ruskin, it was the icing on the cake in an influential sports law case he's dominated from start to finish.

D.C. Circuit Refuses to Stay Conflict-Minerals Rule

By Jenna Greene |

A federal appeals court on Wednesday refused to stay the U.S. Securities and Exchange Commission’s conflict-minerals rule, dashing the hopes of companies seeking to avoid compliance with the costly regulation.

Jury Sides With SEC in Wyly Brothers' Trial

By Jan Wolfe |

The Wylys, accused of using offshore trusts to hide illegal trades, were represented by a father-and-son team at Susman Godfrey, Stephen and Harry Susman.

No-Poach Pacts Now Basis for Derivative Suits

By Marisa Kendall |

Cotchett's Nancy Fineman and other plaintiffs lawyers say actions taken by executives at Google and other Silicon Valley companies hurt their shareholders.

The New York Stock Exchange

The Problem With the Smart Lawyering Behind Alibaba's IPO

By Susan Beck |

Clever lawyers can find ways to surmount almost any obstacle. That doesn't mean they always should, writes Susan Beck.

Second Circuit Strikes Down Mammoth UBS Class Action

By Jan Wolfe |

A long-running securities class action against UBS AG finally bit the dust on Tuesday, courtesy of an appeals court decision that further limits the extraterritorial reach of U.S. securities laws.

U.S. District Court Judge Denise Cote

Cote Delivers More Bad News for Banks in NCUA Cases

By Susan Beck |

Like the Federal Housing Finance Agency, which sued banks that sold mortgage-backed securities to Fannie Mae and Freddie Mac, the National Credit Union Administration has so far compiled a winning record in cases against banks that sold MBS to credit unions that later failed.

Davis Polk Knocks Out Suit Over Facebook IPO Profits

By Jan Wolfe |

Legal battles over Facebook's May 2012 IPO continue to dog the company and its bankers. But Davis Polk chipped away at the litigation on Friday, defeating an investor lawsuit alleging that Facebook's underwriters improperly earned $100 million in so-called short-swing profits.

Judge OKs $280 Million Deal to End JPMorgan Class Action

By Susan Beck |

Two years after the Second Circuit revived investor claims against Goldman Sachs in a key case over mortgage-backed securities, the decision continues to haunt defendants—and pay dividends for MBS plaintiffs.

Marc E. Kasowitz

Kasowitz Gets Green Light to Challenge Goldman's ABACUS Win

By Jan Wolfe |

A year after dismissing the case, an intermediate appeals court in New York has agreed to let ACA Financial Guaranty Corp take its long-running fraud case against Goldman Sachs & Co. to the state's highest court.

Dynegy, Carl Icahn Dodge Securities Class Action

By Jan Wolfe |

Dynegy Inc.'s 2011 restructuring provoked the ire of a bankruptcy examiner, but it hasn't proven fertile ground for a securities class action spearheaded by Levi & Korsinsky.

New York Stock Exchange Pays $4.5M to Settle SEC Charges

By Jenna Greene |

In the latest in a series of suits against stock exchanges, the U.S. Securities and Exchange Commission announced an enforcement action against the New York Stock Exchange and two affiliated exchanges for failing to establish and follow certain mandatory rules.

U.S. District Judge Jed Rakoff

Judge Rakoff Dings Picard in Madoff Avoidance Actions

By Jan Wolfe |

Irving Picard's efforts to spread money among Bernie Madoff's Ponzi victims hit a snag this week, when a judge ruled that Picard must present more potent allegations in order to proceed with so-called avoidance actions against entities like Societe Generale and UniCredit that handled Madoff funds.

Thad Davis and Michael Wong.

Gibson Dunn Stymies DOJ in Trial of Reverse Merger Exec

By Jan Wolfe |

Claims of rampant fraud among Chinese companies that won backdoor listings on U.S. stock exchanges have sparked regulatory scrutiny and a raft of class actions. But this week the Department of Justice suffered a mistrial in one of its first criminal cases targeting a reverse merger company executive.

Libor Case Against Barclays Gets a Second Life

By David Bario |

In a setback for Barclays and defense lawyers at Sullivan & Cromwell, Boies Schiller and Dechert, the Second Circuit on Friday revived part of a securities class action targeting the bank over its role in alleged Libor manipulation.

Appeals Court Mostly Upholds Bingham Win in REIT Sale Suit

By Jan Wolfe |

The court ruled Wednesday that broker-dealer David Lerner Associates didn't violate federal securities laws in connection with the sale of five real estate investment trusts with a combined value of $6.8 billion.

SEC Charges Ex-Nvidia Manager With Insider Trading

By Julia Love |

Chris Choi of San Jose passed confidential earnings information to a friend, who then sold it to a hedge fund manager, the agency alleges.

Judge Finds Inconsistencies in Younger Rajaratnam's Indictment

By Jan Wolfe |

Still facing a June 17 trial date on claims that he engaged in insider trading alongside his older brother Raj Rajaratnam, Rengam Rajaratnam may have caught a minor break on Friday with a ruling that could help narrow the indictment against him.

The Dam Breaks: Investors Take Aim at Herbalife

By Jan Wolfe |

Amid reports that Herbalife is under criminal investigation, the securities plaintiffs bar has finally pounced on the controversial nutritional supplements company.

Lululemon Missteps Don't Amount to Fraud, Judge Rules

By David Bario |

The company's see-through pants fiasco and similar blunders can't serve as the basis for a securities fraud class action against Lululemon, a judge in Manhattan confirmed on Friday. The ruling is a victory for defense teams at Weil and Paul Weiss.