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Securities
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July 08, 2025
Puerto Rico Bond Suit Doesn't Belong In Conn., Insurers Say
The insurers of billions in bonds issued by the Puerto Rico Sales Tax Financing Corp. say a Connecticut federal judge can't hear a proposed class action accusing them of failing to pay bondholders the full value of their investments after a 2016 bankruptcy default.
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July 08, 2025
CME Says Investors Shouldn't Get $2B Over Trading Changes
A class of CME Group members seeking more than $2 billion over allegedly broken promises to preserve their exclusive floor trading rights following a demutualization should lose their case because they're not entitled to something their decades-old contracts never contemplated, counsel for the exchange operator told an Illinois jury Tuesday.
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July 08, 2025
Chancery OKs Spike Of Bumble Committee Stock Suit
A Delaware vice chancellor cleared the way late Tuesday for termination of a suit seeking derivative damages for Bumble Inc. arising from a $1.1 billion sale of shares by the dating app giant's private equity controller ahead of a stock drop allegedly fueled by bad news in late 2021.
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July 08, 2025
Crypto Firm ReserveOne To Go Public Via $1B SPAC Merger
Crypto asset management firm ReserveOne announced Tuesday that a special purpose acquisition company plans to take it public in a transaction that's expected to bring in more than $1 billion in proceeds as it pursues its novel crypto reserve strategy.
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July 08, 2025
Mylan Securities Class Action Over W.Va. Plant Will Proceed
A Pennsylvania federal judge on Tuesday denied a win for former pharmaceutical company Mylan NV in a proposed shareholder class action accusing the company of manipulating quality control tests at a West Virginia plant, saying the plaintiff has met the burden of showing a link between misrepresentations and financial losses.
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July 08, 2025
Trump Media Files Plans To Launch 'Blue Chip' Crypto ETF
Trump Media and Technology Group Corp., the owner of President Donald Trump's platform Truth Social, on Tuesday filed documents to launch an exchange-traded fund that will invest in five cryptocurrencies, marking its latest cryptocurrency-focused ETF proposal.
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July 08, 2025
Wells Fargo Wants Investors' 'Sham' Hiring Suit Tossed
Wells Fargo & Co. is once again looking to rid itself of a California-based class action accusing it of deceiving investors about its hiring practices, arguing that suing shareholders have not found any evidence that so-called sham job interviews were widespread at the bank.
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July 08, 2025
Fla. Probes Internet Figures, REIT And Suspect Ponzi Scheme
Florida Attorney General James Uthmeier on Tuesday announced his office has subpoenaed two internet personalities and their real estate investment trust based on allegations that they pocketed money intended for property purchases in what authorities say appears to be a Ponzi scheme.
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July 08, 2025
NY Developer Accuses Atty, Others Of $3M Investment Fraud
A New York developer and his business have filed a lawsuit in federal court accusing several companies, a law firm and others of defrauding him out of more than $3 million in an investment fraud scheme, saying they made false promises of "extraordinary returns" from purportedly monetizing certain letters of credit.
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July 08, 2025
Masimo Criticizes Bid To DQ Quinn Emanuel In Payout Suit
Masimo Corp. is fighting a bid by its former CEO Joe Kiani to disqualify Quinn Emanuel Urquhart & Sullivan LLP from representing the medical technology company in Delaware Chancery Court litigation over Kiani's quest for a $450 million payout.
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July 08, 2025
'Tornado Cash' Trial Judge Curbs Talk Of North Korea WMDs
A Manhattan federal judge on Tuesday sharply limited the extent to which prosecutors may mention North Korea's alleged efforts to obtain weapons of mass destruction as they seek to convict a crypto engineer who allegedly facilitated big-dollar transactions for the secretive dictatorship.
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July 08, 2025
Vaxart Investors Can Pursue Suit Over COVID Vax Claims
A California federal judge declined to grant an early win to the onetime controlling shareholder of Vaxart in an investor suit alleging it dumped stock at inflated prices following deceptive headlines about the biotechnology company's ability to produce a COVID-19 vaccine.
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July 08, 2025
Reed Smith Brings On Former SEC Atty From V&E In Dallas
Reed Smith LLP has added a pair of former Vinson & Elkins LLP attorneys in its Dallas office, including a former U.S. Securities and Exchange Commission investigations and enforcement attorney who bolsters the firm's global regulatory enforcement group, Reed Smith announced Tuesday.
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July 08, 2025
Texas Stock Exchange Taps Former SEC Markets Executive
The Texas Stock Exchange's owner on Tuesday said it has hired U.S. Securities and Exchange Commission veteran David Saltiel to join the startup, which aims to compete with the New York Stock Exchange and Nasdaq.
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July 08, 2025
Jones Day Adds Ex-FDIC, Treasury Leaders To Financial Team
Jones Day has expanded its financial markets practice in Washington, D.C., with two new partners who have key experience at financial institutions and regulatory agencies.
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July 08, 2025
Soccer Portfolio CEO Claims Fraud Over Failed SPAC Merger
The owner of a company with a portfolio of soccer clubs has filed suit against two financiers and an associated sports investment company, alleging that, in a complex financing deal, they'd misrepresented the prospects that they could bring his company public via merger with their special purpose acquisition company.
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July 08, 2025
Linqto Hits Ch. 11 Amid SEC Probe, Compliance Concerns
Linqto, a platform that connected investors with pre-IPO startups and other privately held firms, has filed for bankruptcy in Texas amid an investigation by the U.S. Securities and Exchange Commission and internal concerns over its compliance with securities laws.
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July 07, 2025
Credit Suisse Can't Ditch Bondholder's UBS Merger Suit
A New York federal judge Monday rejected Credit Suisse's bid to escape investor litigation alleging it concealed the impact of quarterly losses and the bank's inability to retain clients leading up to its takeover by UBS AG while certifying a class of investors and consolidating two cases for pretrial proceedings.
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July 07, 2025
Citron Founder Seeks Dismissal Of 'Absurd' DOJ Fraud Case
An attorney for Citron Research's founder, short-seller activist Andrew Left, urged a California federal judge Monday to dismiss the federal government's "absurd" criminal securities fraud case against Left, arguing that it's an unprecedented effort to criminalize free speech.Â
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July 07, 2025
Meta Seeks Exhibit Protections As Del. Privacy Trial Looms
An attorney for social media giant Meta Platforms Inc. sought Delaware Court of Chancery approval Monday for document and exhibit public display protections during an eight-day trial set to start July 16 on stockholder claims alleging more than $8 billion in settlement and litigation cost damages dating to 2012.
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July 07, 2025
SEC Says Adviser Posed As Clients To Approve Fee Hikes
The U.S. Securities and Exchange Commission has sued a Chicago-based investment adviser and its owner for allegedly charging clients more than $2.5 million in unauthorized fees without clients' knowledge, accusing them of posing as clients to approve the fees online in some instances.
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July 07, 2025
11th Circ. Backs UBS' $6.5M Arbitration Win
The Eleventh Circuit has rejected a Puerto Rican man's bid to vacate a roughly $6.5 million arbitration award given to UBS Financial Services Inc. that stems from a long-running account contract dispute, finding there was no misconduct in the proceedings.
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July 07, 2025
Chancery Won't Sink Investor Suit Against Gaming Co. Skillz
Delaware's chancellor has rejected calls to dismiss a derivative suit accusing insiders of mobile gaming company Skillz Inc. of misleading investors about weak prospects ahead of a secondary public offering in 2021, instead ordering a summary judgment proceeding to drill down on the issue of director independence.
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July 07, 2025
SEC Alleges $4M Fraud Scheme By Scooter Rental Company
The U.S. Securities and Exchange Commission has sued scooter rental company Go X Inc. and its executives in Florida federal court, alleging they fraudulently raised $4 million from 300 investors through unregistered securities sales.
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July 07, 2025
Strategy Eyes $4.2B Offering To Bolster Bitcoin-Buying Spree
Michael Saylor's Strategy Inc. said Monday it has launched another preferred stock offering that can raise up to $4.2 billion in order to acquire bitcoin, building on the company's blueprint for stockpiling the flagship cryptocurrency.
Expert Analysis
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
​​​​​​​By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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SEC Confidential Review Process Provides Issuers Flexibility
The U.S. Securities and Exchange Commission's recently announced enhancements to the process for confidentially submitting draft registration statements will be immediately impactful for issuers seeking to access the public capital markets, and should provide more grounds to explore and plan public offerings, say attorneys at Lowenstein Sandler.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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How Del. Law Rework Limits Corporate Records Requests
Newly enacted amendments to a section of the Delaware General Corporation Law that allows stockholders and beneficial owners to demand inspection of Delaware corporations' books and records likely curtails the scope of such inspections and aids defendants in framing motions to dismiss at the pleading stage, says Jonathan Richman at Brown Rudnick.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q1
Among the most notable developments in California banking in the first quarter of the year, regulators and legislators issued regulations interpreting debt collection laws, stepped up enforcement actions, and expanded consumer protections for those affected by wildfires, says Stephen Britt at Severson & Werson.
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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.