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Securities
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June 26, 2025
GOP Sens. Aim To Finalize Crypto Market Bill By Sept. 30
Republican senators pledged Thursday to finish their digital asset market structure legislation by the end of September, stressing the urgency of delivering on President Donald Trump's aim to make the U.S. the cryptocurrency capital of the world.
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June 26, 2025
Boeing Wins Discovery Stay In Chancery Derivative Suit
Pointing to court doctrines barring discovery while a derivative suit faces dismissal motions, a Delaware vice chancellor on Thursday grounded a Boeing Co. stockholder bid to continue demanding records pending a final decision on the company's right to control the action, which alleges massive, costly safety failures.
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June 26, 2025
'Pig Butchering' Scam Suit Dismissed For Good
An Alabama resident who sued two cryptocurrency firms and their CEO, accusing them of running a $28 million "pig butchering" scam that defrauded victims by laundering stolen cryptocurrency through a complex network of wallets, has jointly agreed with the defendants to dismiss the suit with prejudice.
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June 26, 2025
2nd Circ. Won't Void Aerospace Co.'s $5M Hedge Fund Loan
The Second Circuit has said a New York federal judge was correct in rejecting aerospace company Xeriant's bid to void a $5 million loan deal with Auctus Fund LLC, ruling that while the hedge fund was not registered with the U.S. Securities and Exchange Commission as a dealer, the contract didn't obligate it to do so.
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June 26, 2025
SEC Enforcement Atty Joins Scott+Scott In New York
Connecticut-based securities law firm Scott+Scott Attorneys at Law LLP announced that a former U.S. Securities and Exchange Commission enforcement attorney has joined the firm's New York office as a senior associate.
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June 26, 2025
NY Judge Again Rejects Bid To Undo Ripple, SEC Judgment
A New York federal judge on Thursday rejected a joint request from the U.S. Securities and Exchange Commission and Ripple Labs Inc. to undo a permanent injunction and cut down the $125 million fine included in her final judgment in the landmark case.
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June 26, 2025
Chemours Loses Bid To Keep Disclosures Suit Details Sealed
Citing failure to specify harm from disclosure, a Delaware vice chancellor has denied Chemours Inc.'s request to keep confidential details about its internal document controls in a redacted derivative suit seeking damages arising from an alleged $575 million manipulation of company reports over two years.
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June 26, 2025
EQT Investors Ink $167.5M Deal In Rice Energy Merger Suit
EQT Corp. has agreed to pay $167.5 million to investors who claimed the company overstated the benefits of its $6.7 billion merger with Rice Energy, according to a motion filed Thursday seeking preliminary approval of what the investors called the largest-ever stockholder suit deal lodged in Western Pennsylvania federal court.Â
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June 25, 2025
Fed Rolls Out Plan To Relax Leverage Rule For Biggest Banks
The Federal Reserve on Wednesday kicked off an effort to ease a key leverage requirement for the biggest U.S. banks, advancing a highly anticipated proposal that officials said could free up bank balance-sheet capacity to bolster the U.S. Treasury market.Â
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June 25, 2025
Coinme Fined $300K In Landmark Calif. Enforcement Action
Crypto kiosk operator Coinme Inc. has agreed to pay a $300,000 fine to resolve findings that it violated California's kiosk transaction limits and failed to include certain disclosures on receipts, the California Department of Financial Protection and Innovation announced Wednesday.
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June 25, 2025
11th Circ. Backs Conviction In Bank Reporting Evasion Case
The Eleventh Circuit on Wednesday upheld the conviction of a man accused of trying to prevent regulators from learning about his large withdrawals from Wells Fargo accounts, rejecting his claims that prosecutors charged him with one offense but tried him for another.
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June 25, 2025
SEC Says Banned Investment Adviser Ran Crypto Fund Fraud
A San Diego man and his dissolved company face U.S. Securities and Exchange Commission allegations that they improperly raised $413,000 from at least 11 investors on the strength of promises they'd put the money into a pooled investment vehicle for crypto assets.
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June 25, 2025
SEC Wins Jury Verdict In $10M Blood Bank Fraud Suit
A California federal jury has found the former CEO of a blood bank business liable for securities fraud, agreeing with the U.S. Securities and Exchange Commission that the executive defrauded retirees out of more than $10 million by promising them returns he knew he could not deliver.
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June 25, 2025
Class Certified In Suit Over Oil Market's Historic Price Crash
A Chicago federal judge has certified a class of futures traders who claim Vega Capital London Ltd. and 12 of its traders caused a historic oil crash with an aggressive price manipulation scheme that resulted in oil futures going negative for the first time, saying the plaintiffs have met all the requirements for certification.
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June 25, 2025
PetroSaudi Slams Liquidators' Bid To Pause $380M Award Suit
A PetroSaudi unit pursuing enforcement of a $380 million arbitral award has asked a California federal judge to deny a request by the company's liquidators to pause a federal government suit targeting the award over its alleged connection to funds embezzled from Malaysia.
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June 25, 2025
SEC Grants Brokers More Time On Customer-Protection Rule
The U.S. Securities and Exchange Commission agreed Wednesday to extend until late June 2026 the time broker-dealers have to comply with recent amendments to a regulation protecting customers, saying that firms need more time to upgrade their operations.
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June 25, 2025
Citi Accused Of Complicity In $20M NFT 'Pig Butchering' Scam
Citibank NA has been hit with a lawsuit in New York federal court by a Texas man accusing it of ignoring red flags that allowed scammers to use accounts at the bank to siphon nearly $4 million from his family trusts after he fell for a social media romance scam involving non-fungible tokens.
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June 25, 2025
Investor Wins $2.25M In Cannabis Shareholder Dispute
The manager of a medical marijuana collective must fork over $2 million and a 50% stake in the entity to an investor, a Los Angeles state court judge ruled, hitting the defendant, previously accused of recklessly spending the dispensary money and found liable for fraud, with another judgment.
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June 25, 2025
Adviser's $300M Ponzi Dismissal Bid 'Specious,' Investor Says
An investor who was roped into what the federal government has called a $300 million Ponzi scheme asked a Georgia federal judge Wednesday to keep their suit alive, arguing they shouldn't be subject to heightened pleading standards for a fraud claim they never made against a Peach State financial adviser.
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June 25, 2025
The 5 Big Enforcement Trends White Collar Attys Must Know
The Trump administration has made clear its intent to prioritize U.S. interests, eliminate transnational cartels and cut government fraud, waste and abuse — but questions remain about the administration’s approach to foreign bribery, crypto, public corruption, self-disclosure and clemency as we head into the second half of the year.
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June 25, 2025
SwervePay, Buyers Duel In Del. Over Payment Tech Fraud Suit
Dueling fraud claims have gone to Delaware's chancellor for judgment, following post-trial arguments in litigation that began with principals of e-payment facilitator SwervePay accusing the company's buyers of overstating — by tens of billions — payment volumes that would generate post-sale earnouts under a proposed 2020 acquisition.
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June 25, 2025
Pa. Wealth Manager Gets 8 Years For Stealing Client Money
A suburban Philadelphia wealth manager was sentenced Wednesday to just over eight years in prison for using nearly $25 million of his clients' money on properties, country club fees and luxury vacations, his counsel said.
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June 25, 2025
Do Kwon Trial Judge Has Eye On Federal Crypto Legislation
Federal legislation that could codify stablecoins as payment-related assets — not securities — has the potential to impact the Manhattan U.S. attorney's $40 billion criminal case against Terraform founder Do Kwon, a federal judge said Wednesday.
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June 24, 2025
Colo. Justices Order Fraud Retrial Over Legal Advice Hearsay
Colorado's highest court granted a new securities fraud trial Monday to a man whose testimony in his own defense about advice of counsel was curtailed by a judge, saying legal advice is unquestionably relevant in mounting a defense around "willfulness."
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June 24, 2025
Powell Says Leverage Rule Revamp Won't Exclude Treasuries
Federal Reserve Chair Jerome Powell told House lawmakers Tuesday that a forthcoming plan to revamp big-bank leverage limits won't exempt U.S. Treasuries from their calculation, a potential disappointment for financial-sector lobbies that hope to resurrect the pandemic-era carveout.Â
Expert Analysis
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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.
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Service By Token Is Transforming Crypto Litigation Landscape
As the Trump administration advocates a new course of cryptocurrency regulation, courts in the U.S. and abroad are authorizing innovative methods of process service, including via nonfungible tokens and blockchain messaging, offering practical solutions for litigators grappling with the anonymity of cyber defendants, says Jose Ceide at Salazar Law.
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Opinion
SEC Shouldn't Complicate Broker-Dealers' AML Compliance
Recent U.S. Securities and Exchange Commission anti-money laundering enforcement actions show that regulators should not second-guess broker-dealers' reasonable judgment, or stretch the law or their jurisdiction to regulate through enforcement, lest they expect broker-dealers to vigorously defend their AML programs, say attorneys at WilmerHale.
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Executive Orders Paving Way For New Era Of Crypto Banking
Recent executive orders have already significantly affected the day-to-day operations of financial institutions that have an interest in engaging with digital assets, and creating informed strategies now can support institutions as the crypto gates continue to open to the banking industry, say attorneys at Spencer Fane.
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Retirement Plan Suits Show Value Of Cybersecurity Policies
Several data breach class actions that were recently filed against retirement plan administrator The Pension Specialists in Illinois federal court are a reminder that developing and following a good written cybersecurity policy provides a blueprint for compliance and may prevent lawsuits, says Carol Buckmann at Cohen & Buckmann.
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Explaining sa¹ú¼Ê´«Ã½'s Legal Duties Under The Dodd-Frank Act
While only Congress can actually eradicate the Consumer Financial Protection Bureau, the Trump administration has sought to significantly alter the agency's operations, so it's an apt time to review the minimum baseline of activities that Congress requires of the sa¹ú¼Ê´«Ã½ in Title X of the Dodd-Frank Act, say attorneys at Bradley Arant.
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State Securities Enforcers May Fill A Federal Enforcement Gap
The U.S. Securities and Exchange Commission appears poised to take a lighter touch under the new administration, but state enforcement efforts are likely to continue unabated, and potentially even increase, particularly with regard to digital assets and ESG disclosures, say attorneys at Ropes & Gray.
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Perfecting Security Interests In Renewable Energy Tax Credits
The ability to transfer renewable energy tax credits has created new opportunities for developers, investors and lenders, but it also raises important questions regarding when and how the security interests in these credits are perfected — questions that must be answered definitively to protect credit claims and transactions, says Harry Teichman at Stinson.
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Firms Still Have Lateral Market Advantage, But Risks Persist
Partner and associate mobility data from the fourth quarter of 2024 shows that we’re in a new, stable era of lateral hiring where firms have the edge, but leaders should proceed cautiously, looking beyond expected revenue and compensation analyses for potential risks, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Recent Cases Highlight Latest AI-Related Civil Litigation Risks
Ongoing lawsuits in federal district courts reveal potential risks that companies using artificial intelligence may face from civil litigants, including health insurance coverage cases involving contractual and equitable claims, and myriad cases concerning securities disclosure claims, say attorneys at Katten.
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What Rodney Hood's OCC Stint Could Mean For Banking
Acting Comptroller of the Currency Rodney Hood's time at the helm of the OCC, while temporary, is likely to feature clarity for financial institutions navigating regulations, the development of fintech innovation, and clearer expectations for counsel advising on related matters, say attorneys at Vedder Price.
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Opinion
We Must Allow Judges To Use Their Independent Judgment
As two recent cases show, the ability of judges to access their independent judgment crucially enables courts to exercise the discretion needed to reach the right outcome based on the unique facts within the law, says John Siffert at Lankler Siffert & Wohl.
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4 Actions For Cos. As SEC Rebrands Cyber Enforcement Units
As the U.S. Securities and Exchange Commission signals its changing enforcement priorities by retooling a Biden-era crypto-asset and cybersecurity enforcement unit into a task force against artificial-intelligence-powered hacks and online investing fraud, financial institutions and technology companies should adapt by considering four key points, say attorneys at Troutman.
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New SEC Guidance May Change How Investors, Cos. Talk
The U.S. Securities and Exchange Commission's recent updates to the Schedules 13D and G compliance and disclosure interpretations may mean large institutional investors substantially curtail the feedback they provide companies about their voting intentions in connection with shareholder meetings, which could result in negative voting outcomes for companies, say attorneys at Cleary.
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4 Key Payments Trends For White Collar Attys
As the payments landscape continues to innovate and the new administration looks to expand the role of digital currency in the American economy, white collar practitioners should be aware of several key issues in this space, say attorneys at Jenner & Block.