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Securities
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June 11, 2025
Senate Dems Probe Meta, Trump Stablecoin Plans And Deals
U.S. Sens. Elizabeth Warren and Richard Blumenthal sent a pair of letters this week asking for more information on Meta's renewed plans to launch its own stablecoin as well as details on MGX's decision to use Donald Trump's World Liberty stablecoin to make a $2 billion investment in the cryptocurrency exchange Binance.
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June 11, 2025
Link Motion Investor's Suit Should Be Trimmed, Judge Says
A New York federal judge should trim some but not all common law fraud claims from an investor's lawsuit against China-based software company Link Motion Inc. over allegations its chairman fleeced the company, a magistrate judge has recommended.Â
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June 11, 2025
Glass Lewis To GOP: No 'Ideological Agenda' In Proxy Advice
The head of the proxy advisory firm Glass Lewis & Co. has pushed back against allegations from the Senate Banking Committee concerning the firm's "expansive, opaque, and ideologically driven influence" on U.S. companies, saying it evaluates all shareholder proposals on a case-by-case basis.
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June 11, 2025
Judge Won't Disqualify Attys In AmeriMark Control Dispute
A Utah magistrate judge declined to disqualify attorneys from Venable LLP and Parsons Behle & Latimer PC from representing Swiss plaintiffs Capana Swiss Advisors and AmeriMark Automotive in a lawsuit over who controls AmeriMark Group, finding there is no clear conflict of interest and that disqualification would unfairly disrupt the case.
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June 11, 2025
9th Circ. Backs Reddit Win In WallStreetBets Creator's TM Suit
The Ninth Circuit on Wednesday refused to revive WallStreetBets subreddit founder Jaime Rogozinski's lawsuit accusing Reddit Inc. of hijacking his creation and infringing his right to trademark the brand, saying in an unpublished opinion that Rogozinski failed to adequately plead ownership over the brand mark.
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June 11, 2025
SEC Asks To Pause CAT Suit As It Weighs Audit Trail Rework
The U.S. Securities and Exchange Commission called Wednesday for the temporary suspension of a class action lawsuit accusing it of illegally collecting the private information of millions of American investors, arguing that potential changes to the way that its market surveillance tool operates could moot the case.
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June 11, 2025
11th Circ. Won't Void $2.2M Order Against Par Funding Adviser
The Eleventh Circuit has affirmed a district court's ruling ordering a South Florida financial adviser accused of funneling investors into the $500 million Par Funding fraud scheme to pay nearly $2.2 million to the U.S. Securites and Exchange Commission, saying that the "ample evidence" of his violations shows his liability and warrants the fine.
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June 11, 2025
DOJ's Focus On Cartels Raises Compliance Risks For US Cos.
U.S. corporations with business interests south of the border are increasingly worried about exposure to terrorism-related criminal charges under the Trump administration for inadvertently working with cartels linked to major business sectors throughout Mexico, from energy and manufacturing to financial services, compliance experts tell Law360.
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June 11, 2025
Regulators Delay Compliance On Private Fund Disclosures
A divided U.S. Securities and Exchange Commission agreed on Wednesday to extend compliance dates for new Form PF rules that require additional disclosure from private funds, overcoming objections from one dissenting commissioner who feared the "11th-hour" extension could lead to abandoning the rules altogether.
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June 11, 2025
Del. Justices Press Atty On Earnout Damage Bid Despite Miss
Delaware Supreme Court justices focused on the basics Wednesday during data management venture STX Business Solutions LLC's bid to revive a suit that was tossed by the Court of Chancery in October and accused a buyer of skipping a profitable deal to avoid paying an "earnout" bonus of up to $5.5 million.
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June 11, 2025
CarLotz's $13M Investor Settlement Headed To Final Approval
A New York federal judge said Wednesday that he intends to grant final approval to a $13 million settlement between CarLotz and its investors who accused it and a special purpose acquisition company of misleading statements about CarLotz's profitability before it went public via merger.
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June 11, 2025
Senate Advances Stablecoin Bill As Dems Decry Swift Pace
The Senate's proposal to regulate stablecoins cleared another procedural hurdle on Wednesday with bipartisan support despite some Democratic outcry over an allegedly limited opportunity to amend the bill.
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June 11, 2025
AGs Press Meta To Do More To Stop Pump-And-Dump Scams
Attorneys general from states and territories around the country, as well as the District of Columbia, sent an open letter to Meta Platforms Inc. Wednesday urging the social media giant to help stem the tide of widespread investment scams across Facebook and WhatsApp that they said have caused people to lose "life-changing" amounts of money.
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June 11, 2025
BofA, FDIC Seek More Time To Finalize $540M Premiums Deal
Bank of America has confirmed it won't be appealing an order directing it to pay $540 million to the Federal Deposit Insurance Corp., asking a Washington, D.C., federal judge for more time to confirm their agreement on calculations related to the payment.
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June 11, 2025
PepGen Faces Investor Suit Over Muscular Dystrophy Drug
Clinical-stage biotech company PepGen Inc. has been hit with a proposed shareholder class action alleging it misled investors about the efficacy and commercial prospects of its muscular dystrophy drug, causing share price declines as investors learned of the drug's clinical trials' shortcomings.
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June 11, 2025
Stripe Buying Crypto Wallet Co. Privy Amid Expansion
Privy, a startup offering crypto wallet technology for developers, said Wednesday that it will be acquired by payments company Stripe and expects to close the transaction "in the coming weeks."
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June 11, 2025
1st Circ. Won't Rethink Split Ruling On Atty's Stock Scheme
A First Circuit panel won't rethink its 2-1 decision that the U.S. Securities and Exchange Commission could keep its pretrial win against a Connecticut attorney who sold unregistered penny stocks, according to an order from the appellate court.
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June 11, 2025
Del. Justices OK Early Review Of New Corp. Liability Shield
Delaware's justices agreed to a fast-tracked state constitutional review Wednesday for questions in a Court of Chancery case affected by state legislation approved in March that expanded and made retroactive "safe harbor" liability shields for conflicted corporate directors or controllers.
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June 10, 2025
House Ag Committee Advances Crypto Market Structure Bill
The House Committee on Agriculture on Tuesday advanced a bill to regulate digital asset markets with broad bipartisan support despite concerns from Democrats that the U.S. Commodity Futures Trading Commission will need more funding to accomplish the broad crypto mandate contemplated by the bill.
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June 10, 2025
Chancery Sends Protein Co. Suit Toward Trial With Caution
A suit accusing company insiders and investors of exploiting their position to sell plant protein venture Nutriati Inc. to a major investor for an unfair price easily survived a Delaware Court of Chancery dismissal bid Tuesday, but with a court caution that litigation costs could outweigh the stakes.
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June 10, 2025
Chamber Calls On Justices To Hear Auditor Fraud Case
The U.S. Chamber of Commerce is among the parties calling on the U.S. Supreme Court to take up a case accusing BDO USA LLP of securities fraud, telling the justices that allowing a Second Circuit ruling to stand could lead to more lawsuits against accountants, lawyers and underwriters.
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June 10, 2025
9th Circ. Revives Real Estate Investor Securities Suit, Again
The Ninth Circuit on Tuesday once again revived a proposed securities class action accusing investment guru Grant Cardone of making misleading social media statements to sell interests in his companies' real estate investment funds, holding, among other findings, that the complaint sufficiently alleged Cardone "subjectively disbelieved" certain stated projections.
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June 10, 2025
Feds Reboot FCPA Agenda With Narrower Enforcement Focus
The U.S. Department of Justice on Tuesday released new and tightened guidelines for enforcement of the Foreign Corrupt Practices Act after a four-month pause on such prosecutions, centering prospective investigations on situations that affect U.S. competitiveness and national security as well as transnational cartels.
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June 10, 2025
First Republic Brass Beat Investor Suit Over Bank Failure
A California federal judge dismissed for good a shareholder suit against the former directors and officers of now-failed First Republic Bank and its auditor over the lender's 2023 collapse, finding that the plaintiffs failed to first exhaust their required administrative remedies and, therefore, the court does not have jurisdiction to hear the case.
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June 10, 2025
Senate Dems Seek To Slow GOP Roll On sa¹ú¼Ê´«Ã½ Defunding Bill
Senate Banking Committee Democrats are demanding a hearing on GOP budget legislation that would defund the Consumer Financial Protection Bureau and make other financial agency cuts, arguing that its "sweeping" plans should be scrutinized before going to the floor.
Expert Analysis
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How The ESG Investing Rule Survived Loper Bright, For Now
A Texas federal court's recent decision in Utah v. Micone upholding the U.S. Department of Labor's 2022 ESG investing rule highlights how regulations can withstand the post-Loper Bright landscape when an agency's interpretation of its statutorily determined boundaries is not granted deference, say attorneys at Miller & Chevalier.
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Series
Adapting To Private Practice: From DOJ Leadership To BigLaw
The move from government service to private practice can feel like changing one’s identity, but as someone who has left the U.S. Department of Justice twice, I’ve learned that a successful transition requires patience, effort and the realization that the rewards of practicing law don’t come from one particular position, says Richard Donoghue at Pillsbury.
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SEC Crypto Mining Statement Delivers Regulatory Clarity
The U.S. Securities and Exchange Commission's March 20 statement clarifying that certain crypto mining activities do not constitute the offer and sale of securities marks the end of the SEC's enforcement-first approach and ushers in a more predictable environment for blockchain innovation and investment, says Jeonghoon Ha at Ha Law.
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Nev. Fraud Ruling Raises Stakes For Proxy Battles
Though a Nevada federal court’s recent U.S. v. Boruchowitz decision involved unusual facts, the court's ruling that board members can be defrauded of their seat through misrepresentations increases fraud risks in more typical circumstances involving board elections, especially proxy fights, say attorneys at ArentFox Schiff.
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Law Firm Executive Orders Create A Legal Ethics Minefield
Recent executive orders targeting BigLaw firms create ethical dilemmas — and raise the specter of civil or criminal liability — for the government attorneys tasked with implementing them and for the law firms that choose to make agreements with the administration, say attorneys at Buchalter.
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The OCC's Newly Relaxed Approach To Bank Crypto Activity
With the early March rescission of Biden-era interpretive guidance, the Office of the Comptroller of the Currency has loosened its approach to regulating national banks and federal savings associations' crypto-asset activities, possibly removing one barrier to banks engaging in such activities, say attorneys at Debevoise.
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Firms Must Embrace Alternative Billing Models Or Fall Behind
As artificial intelligence tools eliminate inefficiencies and the Big Four accounting firms enter the legal market, law firms that pivot from the entrenched billable hour model to outcomes-based pricing will see a distinct competitive advantage, says attorney William Brewer.
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Opinion
7 Ways CFTC Should Nix Unnecessary Regulatory Burdens
Several U.S. Commodity Futures Trading Commission regulations do not work efficiently in practice, all of which can be abolished or improved in order to comply with a recent executive order requiring the elimination of 10 regulations for every new one implemented, say attorneys at K&L Gates.
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How Attorneys Can Master The Art Of On-Camera Presence
As attorneys are increasingly presented with on-camera opportunities, they can adapt their traditional legal skills for video contexts — such as virtual client meetings, marketing content or media interviews — by understanding the medium and making intentional adjustments, says Kerry Barrett.
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What Del. Corporate Law Rework Means For Founder-Led Cos.
Although the amendments to the Delaware General Corporation Law have proven somewhat divisive, they will provide greater clarity and predictability in the rules that apply to founder-led companies navigating transactions concerning controlling stockholders and responding to books-and-records requests, say attorneys at Munger Tolles.
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Series
Baseball Fantasy Camp Makes Me A Better Lawyer
With six baseball fantasy experiences under my belt, I've learned time and again that I didn't make the wrong career choice, but I've also learned that baseball lessons are life lessons, and I'm a better lawyer for my time at St. Louis Cardinals fantasy camp, says Scott Felder at Wiley.
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Paul Atkins' Past Speeches Offer A Glimpse Into SEC's Future
Following Paul Atkins' Thursday Senate confirmation hearing, a look at his public remarks while serving as a commissioner at the U.S. Securities and Exchange Commission between 2002 and 2008 reveals eight possible structural and procedural changes the SEC may see once he likely takes over as chair, say attorneys at Covington.
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Series
Adapting To Private Practice: From Fed. Prosecutor To BigLaw
Making the jump from government to private practice is no small feat, but, based on my experience transitioning to a business-driven environment after 15 years as an assistant U.S. attorney, it can be incredibly rewarding and help you become a more versatile lawyer, says Michael Beckwith at Dickinson Wright.
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The Fund Finance Market Is In Its Transformative Era
The fund finance market is experiencing explosive growth as it develops into a mature and sophisticated industry, with several recent developments – such as an increase in net asset value lending and a shift toward borrower-friendly terms – reshaping the landscape of this rapidly evolving sector, say attorneys at Fried Frank.
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How Del. Supreme Court, Legislature Have Clarified 'Control'
The Delaware Supreme Court's January decision in In re: Oracle and the General Assembly's passage of amendments to the Delaware General Corporation Law this week, when taken together, help make the controlling-stockholder analysis clearer and more predictable for companies with large stockholders, say attorneys at Baker Botts.