Securities

Cablevision Wins Delaware Ruling on Executive Pay

By Scott Flaherty |

Vice Chancellor John Noble implied he was troubled by some pay decisions at Cablevision, but deferred to the company's compensation committee.

KKR Taps Ex-SEC Lawyer at Debevoise for SEC Fees Case

By Susan Beck |

When KKR faced a groundbreaking investigation by the SEC into its allocation of expenses, it turned to someone who is familiar with the agency’s views on that topic. It hired Debevoise partner Robert Kaplan, the former co-chief of the SEC's asset management unit.

Stanford Ponzi Suit Continues for Chadbourne and Proskauer

By Anita Abedian |

A Texas federal judge has allowed lawsuits to continue against Proskauer, Chadbourne and a former lawyer at the two firms over the roles they played representing convicted Ponzi scheme promoter R. Allen Stanford.

Walter Forbes, former chairman of Cendant Corp.

Second Circuit Rejects Forbes' Bid for New Trial

By Madeline Farber |

Walter Forbes, the former chairman of Cendant Corp. who was given a 12 1/2-year sentence for fraud, argued that he had newly discovered evidence in the form of testimony of a former CFO.

Entrepreneur Slapped by SEC Apologizes, Explains in Video

By Susan Beck |

On the same day that the SEC announced that it had reached a $20,000 settlement with Sand Hill Exchange for illegally running a fantasy stock trading operation, one of the company's young founders posted a self-made video apologizing.

Photograph by Keith Bedford/Getty

Skadden Wins Round for American Apparel

By Scott Flaherty |

Two allies of American Apparel founder Dov Charney have been dealt a setback in their lawsuit attempting to help Charney regain control of the company.

Billionaire Wife's Case Tossed for Failure to Show

By Scott Flaherty |

Real estate mogul Roger Wang's failure to show for a deposition caused the dismissal of a securities case brought by his wife over Bear Stearns' collapse.

RMBS Investors Get Green Light in Megabillions HSBC Suit

By Scott Flaherty |

The decision comes in one of six lawsuits that Bernstein Litowitz brought last year against banks that served as trustees for more than $2 trillion in residential mortgage-backed securities.

Another Securities Case Founders on Confidential Witnesses

By Scott Flaherty |

Relying on informants can help nudge a case past a motion to dismiss—but the practice has become minefield for the securities class action plaintiffs bar.

U.S. Supreme Court building

High Court Won't Hear NVIDIA Securities Case

By Scott Flaherty |

Proving that an apparent circuit split isn't always a ticket to the U.S. Supreme Court, the justices on Tuesday declined to review whether a company's failure to abide by a certain securities regulation can give rise to fraud claims.

Pfizer headquarters in New York City.

Pfizer Fights to Keep Lid on 10-Year-Old Class Action

By Scott Flaherty |

Lawyers hoping to resurrect a decade-old securities class action against Pfizer Inc. will make their case to the Second Circuit on Tuesday.

A Lululemon Athletica store in Chicago, IL.

No Securities Fraud in Lululemon Missteps, Court Affirms

By Scott Flaherty |

The business press may never tire of reminding Lululemon Athletica about its see-through yoga pants debacle. But for the securities class action plaintiffs bar, Lululemon is proving to be an elusive target.

Decade-Old Vioxx Investor Class Action Moves Forward

By Scott Flaherty |

The case, which dates back to 2004, has been pending for twice as long as Merck's blockbuster painkiller was offered for sale.

Philippe Selendy

Litigator of the Week: Philippe Selendy of Quinn Emanuel

By David Bario |

Even if Selendy had lost his landmark securities trial for the Federal Housing Finance Agency, it would be hard to call the FHFA's litigation campaign against Wall Street anything but a victory. But boy, did he ever win.

Goldman Loses $100M FINRA Ruling as CDO Headaches Rage On

By Scott Flaherty |

In yet another dispute alleging that Goldman Sachs marketed a CDO that it was wagering would fail, a FINRA panel sided with the bank's adversaries at Quinn Emanuel Urquhart & Sullivan.

Quinn Emanuel's Philippe Selendy

FHFA Trial Produces Big Loss for Banks, Big Win for Quinn Emanuel

By Scott Flaherty |

Sullivan & Cromwell and Simpson Thacher couldn't pull off a surprise win before U.S. District Judge Denise Cote.

Programmers and Traders and Dark Pools, Oh My

By David Bario |

The high-frequency trading exploits depicted in Michael Lewis' 2014 bestseller "Flash Boys" were keeping at least three Manhattan judges busy this week.

In Replay of FHFA Appeal, Banks Urge Second Circuit To Topple FDIC Claims

By Scott Flaherty |

Can Sullivan & Cromwell's Bob Giuffra succeed where his predecessors failed?

Barclays Can't Escape 'Dark Pool' Securities Class Action

By Scott Flaherty |

Barclays' lawyers at Sullivan & Cromwell managed to trim but not defeat claims that the bank misled investors about safeguards in its Liquidity Cross dark pool.

Citigroup Can't Dodge Lawsuit Over Soured CDO

By Scott Flaherty |

A financial crisis case that stumbled on South Korean law regained its footing on Wednesday, when a U.S. appeals court revived claims that Citigroup Inc. duped a Korean bank into investing in a complex investment product that went belly-up in the global recession.

Quinn Emanuel Wins Reversal, Revives Suit over $1.5B CDO

By Susan Beck |

In the latest case sparked by the alleged CDO shenanigans of hedge fund Magnetar Capital, the Second Circuit ruled that FGIC can pursue claims over a $1.5 billion CDO gone bad.

Wal-Mart Asks Third Circuit to Holster Gun Sales Proposal

By Scott Flaherty |

Gibson Dunn's Ted Boutrous and Delaware shareholder lawyer Joel Friedlander will square off Wednesday over an unusual proxy proposal challenging Wal-Mart's sales of high capacity guns and other potentially "offensive" products.

U.S. Attorney Preet Bharara speaks at a press conference in early 2014.

No Respite for Gov't as Court Affirms Insider Trading Ruling

By Julie Triedman |

Stephen Fishbein of Shearman & Sterling and Mark Pomerantz of Paul Weiss won't have to reargue the successful appeals of Todd Newman and Anthony Chiasson at the Second Circuit.

Courting Whistleblowers, SEC Targets KBR Secrecy Pacts

By Scott Flaherty |

The U.S. Securities and Exchange Commission on Wednesday fined technology and engineering company KBR Inc. over confidentiality agreements that, the agency claims, could have silenced potential whistleblowers.

U.S. Securities and Exchange Commission building.

Lynn Tilton, Patriarch Strike Back at SEC Judges

By David Bario |

It didn't take long for "Diva of Distressed" Lynn Tilton and her lawyers at Skadden to take the offensive against the Securities and Exchange Commission.

Skadden's David Zornow.

Skadden to Square Off With SEC in Tilton, Patriarch Drama

By Scott Flaherty |

Last year lawyers at Skadden brought a constitutional challenge against the SEC for filing an unrelated case against an investment adviser as an administrative action rather than a federal lawsuit. Will the firm go on the offensive for the "Diva of Distressed" as well?

Investment Bank Sues Morrison & Foerster Over Puda Coal Debacle

By Scott Flaherty |

The defunct, fraud-addled Chinese company Puda Coal was disaster for its investors, and remains a major litigation headache for its bankers. Now the investment bank Macquarie Group wants the lawyers to share the blame.

$20 Billion Later, Banks Finally Win Ruling on Time Limits

By Scott Flaherty |

Big banks have failed to convince courts around the country that various government agencies waited too long to sue over Wall Street's role in the 2008 financial crisis. This week, a judge finally adopted the banks' reasoning in a case brought by the Federal Deposit Insurance Corporation.

As Settlement Pie Shrinks, Firms Fight for Their Slice

By Scott Flaherty |

After a lackluster year for securities class action settlements, fee awards in deals involving IndyMac and AIG highlight the uncertainties facing plaintiffs firms in even the biggest cases.

SCOTUS

Context Is King in Supreme Court's Omnicare Ruling

By David Bario |

The justices held that Omnicare can't be held liable under Section 11 of the Securities Act of 1933 just because it offered opinions in a regulatory filing that turned out to be false. But they also said couching a statement as an opinion is no magic bullet for securities defendants.

Ohio Attorney General Mike DeWine.

Lawyers Eye Fees in BNY Mellon Deal as Ohio Mulls Reforms

By Susan Beck |

Lieff Cabraser and another outside law firm stand to earn $43 million from Ohio's portion of a $714 million settlement with The Bank of New York Mellon. But even though Ohio's attorney general signed off on the contingency deal, he's backing a bill that would have made it impossible.

Skadden Partner Turned Bank Foe Can't Challenge JPMorgan Deal

By Scott Flaherty |

Dennis Kelleher, the former Skadden partner-turned Wall Street watchdog, hit a litigation dead end this week in his crusade for financial reform.

Irving Picard

Picard Taps SCOTUS Pro for Swipe at Madoff 'Net Winners'

By Scott Flaherty |

Irving Picard has hit a wall in his efforts to claw back nearly $2 billion in "fictitious" profits pocketed by Bernie Madoff's customers. Can Goldstein & Russell's Thomas Goldstein succeed where Picard's partners at Baker & Hostetler have failed?

Wachtell Knocks Out Shareholder Suit Over Avon Bribes Probe

By Scott Flaherty |

The firm helped shield Avon Products Inc. from more fallout over allegations that the cosmetics company bribed officials in a half-dozen foreign countries, convincing a judge in Manhattan to toss shareholder derivative claims related to the long-simmering bribery flap.

U.S. District Judge Thomas Griesa

BlackBerry Dodges Another Securities Class Action Bullet

By Scott Flaherty |

BlackBerry Ltd. may still be grasping at the heels of its smartphone competitors, but the company's lawyers aren't having much trouble beating back investor class actions over its spotty performance.

FHFA, Nomura Head to Trial Over Fannie and Freddie Losses

By Julie Triedman |

After four years of courtroom wrangling and more than $20 billion in settlements, the first trial is set to begin Monday in the Federal Housing Finance Agency's litigation campaign against banks that packaged and sold mortgage-backed securities.

U.S. Securities and Exchange Commission building in Washington, D.C.

SEC Wins Appeal in Fight with Pre-Dodd-Frank Whistleblower

By Scott Flaherty |

The Second Circuit on Wednesday lowered the chances that "zombie" whistleblowers who offered their tips to the SEC before Dodd-Frank will ever see a reward.

NCUA Win in Barclays Case May Hurt Credit Suisse, Other Banks

By Scott Flaherty |

Handing a win to Kellogg Huber's David Frederick, the Tenth Circuit reinstated the National Credit Union Administration's lawsuit against Barclays PLC over allegedly shoddy mortgage-backed securities.

PwC, Citco Must Face Madoff Feeder Fund Class Action

By David Bario |

Thought major investor class action litigation sparked by the Bernie Madoff affair was over? Think again.

Soulless Corporations Can't Be Witnesses, Judge Rules in Dole Case

By Scott Flaherty |

The U.S. Supreme Court may treat corporations like people when it comes to making political donations, but there's at least one place where only a human being will do: a Delaware witness stand.

UBS Can't Dodge Ex-Banker's SOX Retaliation Claims

By Scott Flaherty |

Partly rejecting a motion to dismiss filed by Gibson Dunn's Eugene Scalia, a judge allowed an ex-UBS banker to pursue claims that he was fired for refusing to exaggerate the quality of the bank's commercial mortgage-backed securities.

U.S. Securities and Exchange Commission building.

SEC Rears Its Head in Icahn Case Over Wachtell Advice

By Scott Flaherty |

CVR Energy revealed that it's under investigation over securities disclosures it made before Carl Icahn’s successful takeover bid three years ago—and it blamed Wachtell for putting the company in the SEC’s sights.

UBS, SunTrust Lose Bid to Escape ResCap Mortgage Claims

By Scott Flaherty |

Lawyers at Quinn Emanuel moved a step closer this week to forcing a payout from banks that partnered with defunct mortgage lender Residential Capital before the financial crisis.

Bank of America Can't Dodge $1.27B Countrywide Verdict

By Scott Flaherty |

Never one to mince words, U.S. District Judge Jed Rakoff had a few harsh ones for Bank of America on Tuesday, ruling that the bank "utterly failed" to offer a compelling reason to retry a mortgage fraud case that put it on the hook for $1.27 billion.

Standard & Poor's headquarters at 55 Water St.

S&P Deal Shouldn't End Scrutiny of Rating Agencies

By Susan Beck |

Evidence cited in a recent SEC report suggests that conflicts of interest at the rating agencies continue. So why won't the SEC name the offenders?

Michael Dowd of Robbins Geller Rudman & Dowd.

Litigators of the Week: Michael Dowd and Jason Forge of Robbins Geller

By Scott Flaherty |

Pfizer Inc. and a phalanx of defense lawyers spent five years trying to defeat an investor class action related to off-label drug marketing. But Robbins Geller kept the case alive until a looming trial pressured the drug maker to cut a $400 million deal.

Report Says Securities Class Actions Fizzled in 2014

By Scott Flaherty |

A rising tide may lift all boats, but a rising stock market may be helping to sink the fortunes of the securities class action plaintiffs bar.

Wal-Mart, Biz Groups Look to Topple Gun Sales Proposal

By Scott Flaherty |

Backed by business groups, Wal-Mart Stores Inc. and its lawyers at Gibson, Dunn & Crutcher fired their opening shots this month in a federal appeal over shareholder efforts to challenge Wal-Mart's sales of guns and other "offensive" products.

U.S. Securities and Exchange Commission building.

S&P's Litigation Woes Continue After SEC Deal

By Scott Flaherty |

Standard & Poor's agreed Wednesday to suspend part of its business and to fork over nearly $80 million to federal and state regulators. But S&P's lawyers still have their work cut out for them in government actions stemming from the financial crisis.

U.S. Securities and Exchange Commission building.

Ex-S&P Exec Joins Battle Against SEC Administrative Actions

By David Bario |

A quartet of lawsuits challenging the SEC's in-house enforcement actions became a quintet on Friday, signaling that it may take a federal appeals court—and perhaps even the U.S. Supreme Court—to decide once and for all whether the agency's administrative proceedings pass muster.

Credit Suisse in Plaintiffs' Sights After Freeport-McMoRan Deal

By Julie Triedman |

There was plenty about this week's $137.5 million Freeport-McMoRan settlement to fire up the shareholder M&A litigation bar. But the next chapter in the Freeport case could be even more interesting.

JPMorgan Must Face Trustee's $500 Million MBS Suit

By Scott Flaherty |

Siding with Quinn Emanuel and reversing his own prior ruling, a judge breathed new life into a lawsuit against JPMorgan Chase and EMC Mortgage over $500 million in mortgages that now-defunct Bear Stearns bundled into securities and sold to investors.

The U.S. Supreme Court building

High Court Rejects Appeal Over Agency's Deadline to Sue Banks

By Scott Flaherty |

The U.S. Supreme Court refused to consider whether the National Credit Union Administration waited too long to sue over billions of dollars in allegedly shoddy securities. But questions underlying the banks' challenge still may not be fully resolved.

Shirley Werner Kornreich

N.Y. State Judges Taking Hard Line on Shareholder Deals

By Susan Beck |

The latest "disclosure-only" shareholder settlement to draw a judge's ire would have resolved litigation over Martin Marietta Materials Inc.'s $2.7 billion acquisition of Texas Industries.

JPMorgan Inks Deal to End Bear Stearns Securities Class Action

By Scott Flaherty |

The bank agreed to pay about $500 million to resolve class action claims stemming from Bear Stearns' sale of nearly $17.6 billion of the securities prior to the 2008 financial crisis.

Kevin Abrams

Litigator of the Week: Kevin Abrams of Abrams & Bayliss

By Scott Flaherty |

Siding with Abrams, a Delaware judge refused to foist new rules on hedge funds using a strategy called appraisal arbitrage to squeeze profits out of allegedly undervalued M&A deals.

Eighth Circuit Tosses Cy Pres Award in Bank of America Case

By David Bario |

In the latest appellate victory for Theodore Frank of the Center for Class Action Fairness, a panel overturned a judge's decision to award funds left over from a $490 million securities class action to a Missouri legal charity.