Securities

  • March 01, 2024

    McDermott Investors' Cert. Bid Should Be Denied, Judge Says

    Investors in energy industry engineering company McDermott International Inc. shouldn't be granted class certification in their suit over the company's $6 billion all-stock acquisition of Chicago Bridge & Iron Co., a federal magistrate judge has determined.

  • March 01, 2024

    Ventyx Investor Says Co. Overhyped Psoriasis Drug

    Ventyx investors filed a proposed securities class action in California federal court on Friday, alleging the biopharma company made misleading statements regarding the efficacy and commercial prospects of its candidate inhibitor to treat psoriatic arthritis and Crohn's disease, before terminating its second clinical phase, leading stock prices to drop 80%.

  • March 01, 2024

    Tesla Stock For Fees? Attys Who Got Musk's Pay Cut Say Yes

    The lawyers who convinced the Delaware Chancery Court to scuttle Elon Musk's proposed $55 billion Tesla compensation package on Friday filed a request for legal fees that came with a twist — they want to be paid in Tesla stock that rounds out to about $5.6 billion.

  • March 01, 2024

    Adamas' Ex-COO Agrees To $4.6M Deal In Investor Suit

    Adamas Pharmaceutical Inc. investors asked a California federal judge on Friday to approve a $4.65 million settlement with the company's former chief operating officer to resolve proposed class claims the company misled consumers about the success of its treatment for Parkinson's disease.

  • March 01, 2024

    Gatos Silver Investors Get Initial OK On $21M Settlement

    A district judge granted preliminary approval to a $21 million settlement between a class of investors and precious metals producer Gatos Silver Inc. over allegations the company's Mexican operation fell short of expectations.

  • March 01, 2024

    2nd Circ. Won't Revive Ex-Barclays Exec's Whistleblower Suit

    The Second Circuit on Friday affirmed a lower court's decision to toss a whistleblower suit from a former Barclays executive, finding that he didn't sufficiently back up his allegations of retaliation under the Sarbanes-Oxley Act.

  • March 01, 2024

    EV Maker Rivian Rips Investors' Class Cert. Bid In Fraud Suit

    Investors alleging Rivian Automotive Inc. underpriced its electric vehicles and misrepresented its profitability ahead of a blockbuster 2021 initial public offering cannot certify their class with zero evidence, weak fraud-on-the-market theories and troubling litigation tactics, Rivian argued in a California federal court filing Thursday.

  • March 01, 2024

    Avalara Beats Investors' $8.4B PE Buyout Challenge For Good

    A Washington federal judge refused Friday to give another chance to a proposed shareholder class action alleging Avalara lied to win investors' support for an $8.4 billion private equity buyout, in an order finding the lead plaintiff failed again to show the tax software company made false statements.

  • March 01, 2024

    Pepsi, Kraft And GE Can't Block DEI, Enviro Proxy Proposals

    A division of the U.S. Securities and Exchange Commission has rejected bids from PepsiCo Inc., The Kraft Heinz Co. and General Electric Co. to exclude from their upcoming proxy statements proposals from a conservative think tank on diversity and environmental matters.

  • March 01, 2024

    NY Judge Tosses $6.4B BMS Investor Action For Good

    Celgene Corp. investors could not convince a New York federal judge that Bristol-Myers Squibb Co. was intentionally trying to flout securities law by delaying the U.S. Food and Drug Administration's approval of a cancer treatment in order to avoid giving them a $6.4 billion payout. 

  • March 01, 2024

    ​​​​​​​Amazon Shareholder Seeks Prime Info In Del. Chancery

    An Amazon stockholder has sued the online shopping and media giant in Delaware's Court of Chancery to obtain internal documents regarding what the investor and the government have called misleading schemes by the company to drive up Prime service subscriptions and confound customers who try to cancel their paid membership.

  • March 01, 2024

    Harvard Grad Conned Alums In $3M Scheme, NY AG Says

    A Harvard Business School graduate suspected of swindling nearly $3 million from his fellow alum — one of whom reportedly took his own life after losing $100,000 — has been ordered by a New York state court judge to stop soliciting investors in what investigators called a classic Ponzi scheme.

  • March 01, 2024

    State AGs Say SEC's Kraken Case Treads On State Authority

    Attorneys general from eight states have told a California federal judge that the theory used by the U.S. Securities and Exchange Commission in its enforcement case against crypto exchange Kraken could potentially preempt state laws for consumer protection.

  • March 01, 2024

    Judge Doubts Drowsy Juror, Mask Rules Warrant New VC Trial

    A California federal judge expressed doubts Friday over claims that self-described "millennial" venture capitalist Michael Rothenberg deserves a new trial because of a drowsy juror and the court's COVID-19 mask rules, saying he disagrees that the juror was asleep and "welcomes" the Ninth Circuit's guidance on courtroom-masking requirements.

  • March 01, 2024

    Off The Bench: NCAA Loses On NIL, DC Wins With Stadium

    In this week's Off The Bench, a judge unlocked the door to name, image and likeness money for college athletes, Shaquille O'Neal's Hollywood debut still rings true three decades later, and D.C. clears an early legislative hurdle in its bid to bring back its namesake NFL team. If you were on the sidelines over the past week, Law360 is here to clue you in on the biggest sports and betting stories that had our readers talking.

  • March 01, 2024

    Levi & Korsinsky Gets Nod To Lead Nikola Investor Action

    An Arizona magistrate judge has recommended Levi & Korsinsky LLP to lead an investor suit alleging hydrogen-electric vehicle manufacturer Nikola Corporation failed to disclose that its safety and structural controls were deficient for its battery manufacturing, which made its vehicles unsafe to operate.

  • March 01, 2024

    Securities Group Of The Year: Munger Tolles

    The Munger Tolles & Olson LLP securities group's multiple victories for high-profile clients over the past year, including successfully appealing a U.S. Securities and Exchange Commission ruling on Grayscale Investment's bitcoin exchange-traded product, has earned it a spot among Law360's 2023 Securities Groups of the Year.

  • March 01, 2024

    Oil Trader Gunvor To Pay $665M For Ecuadorian Bribe Scheme

    Gunvor Group on Friday admitted to conspiring to bribe officials of the Ecuadorian government in order to win business for the energy commodities giant and agreed to pay $665 million as part of criminal resolutions with the U.S. Department of Justice and Swiss authorities.

  • February 29, 2024

    Two More Cos. Hit With 'In Concert' Delaware Bylaw Suits

    The number of class actions targeting companies' boards of directors and allegedly "coercive" bylaw provisions continues to grow, as two new investor suits were filed in Delaware's Court of Chancery against Massachusetts payments software company Flywire Corp. and California subscription software company Zuora Inc.

  • February 29, 2024

    Real Estate Tech Co. Opendoor Beats Investor Suit, For Now

    Real estate marketplace giant Opendoor Technologies Inc. has beaten, for now, a suit accusing it of misleading investors about its artificial-intelligence-powered algorithm and ability to remain profitable, with an Arizona federal judge ruling that many of the challenged statements in the suit are not actually false or misleading.

  • February 29, 2024

    Ill. Court Unwinds $17.5M Forced Northstar Ownership Sale

    A 50% shareholder of Illinois-based Northstar Foods should not have been ordered to sell his $17.5 million interest in the meat processing company amid his business dispute against the other shareholder, a state appeals court panel said Wednesday.

  • February 29, 2024

    Chancery Preserves Class Suit Over Microsoft-Activision Deal

    An Activision Blizzard shareholder that sued in Delaware's Court of Chancery over the company's $68.7 billion sale to Microsoft Corp. got the nod Thursday to move forward with the proposed class action that alleges the merger process may have violated Delaware law.

  • February 29, 2024

    Lordstown To Pay $25M In SEC Probe Of Overhyped EVs

    Bankrupt automaker Lordstown Motors Corp. has agreed to return $25.5 million to shareholders who were allegedly drawn in by false assurances that the company had secured tens of thousands of pre-orders for electric trucks that it didn't even have the parts to build, the U.S. Securities and Exchange Commission announced Thursday.

  • February 29, 2024

    Stolen Funds Render FTX Clawback Moot, Embed Parties Say

    Parties associated with stock trading platform Embed Financial Technologies told a Delaware bankruptcy judge Thursday that defunct cryptocurrency exchange FTX Trading Ltd. can't claw back $240 million from a prepetition acquisition because the funds used to buy Embed were stolen from FTX customers.

  • February 29, 2024

    Lummis, Clement Slam SEC's Kraken Suit As Crypto Overstep

    Sen. Cynthia Lummis, R-Wyo., crypto industry groups and veteran appellate attorney Paul Clement have told a California federal judge in a series of amici briefs that the U.S. Securities and Exchange Commission's suit against crypto exchange Kraken expands the definition of investment contract beyond what Congress intended and overreaches its authority to issues lawmakers intend to address.

Expert Analysis

  • Strategies For Single-Member Special Litigation Committees

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    The Delaware Supreme Court's recent order in the Baker Hughes derivative litigation allowing testimony from a single-member special litigation committee highlights the fact that, while single-member SLCs are subject to heightened scrutiny, they can also provide unique opportunities, says Josh Bloom at MoloLamken.

  • Lessons For D&O Policyholders From Pharma Co. Ruling

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    A California federal court's recent decision in AmTrust v. 180 Life Sciences, requiring insurers to advance defense costs for a potentially covered claim, provides a valuable road map for directors and officers insurance policyholders, rebutting the common presumption that a D&O insurer's duty to advance costs is more limited than under other policies, say attorneys at Pasich.

  • How Firms Can Ensure Associate Gender Parity Lasts

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    Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.

  • 7 Common Myths About Lateral Partner Moves

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    As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.

  • Basics Of Bank Regulators' Push For Discount Window Use

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    As the Federal Reserve and Office of the Comptroller of the Currency emphasize short-term liquidity risk management as central to preventing spring 2023-style bank collapses, banks should carefully tune into regulators’ remarks encouraging use of the Fed’s discount window, which some policymakers identify as a key component in the evolution of liquidity regulation and backstop lending, say attorneys at Arnold & Porter.

  • How Broker-Dealers Can Prepare For New Remote Work Rules

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    Securities regulators recently expanded broker-dealers' ability to permit flexible remote working arrangements through the introduction of residential supervisory locations, a welcome change that better allows broker-dealers to attract and retain talent, say attorneys at King & Spalding.

  • Series

    Cheering In The NFL Makes Me A Better Lawyer

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    Balancing my time between a BigLaw career and my role as an NFL cheerleader has taught me that pursuing your passions outside of work is not a distraction, but rather an opportunity to harness important skills that can positively affect how you approach work and view success in your career, says Rachel Schuster at Sheppard Mullin.

  • Considerations For Disclosing AI Use In SEC Filings

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    Recent remarks from U.S. Securities and Exchange Commission Chair Gary Gensler should be heard as a clarion call for public companies to disclose artificial intelligence use, with four takeaways on what companies should disclose, says Richard Hong at Morrison Cohen.

  • Unpacking The New Russia Sanctions And Export Controls

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    Although geographically broad new prohibitions the U.S., U.K. and EU issued last week are somewhat underwhelming in their efforts to target third-country facilitators of Russia sanctions evasion, companies with exposure to noncompliant jurisdictions should pay close attention to their potential impacts, say attorneys at Shearman.

  • Args In APA Case Amplify Justices' Focus On Agency Power

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    In arguments last week in Corner Post v. Federal Reserve, the U.S. Supreme Court justices paid particular importance to the possible ripple effects of their decision, which will address when a facial challenge to long-standing federal rules under the Administrative Procedure Act first accrues and could thus unleash a flood of new lawsuits, say attorneys at Snell & Wilmer.

  • Mitigating Whistleblower Risks After High Court UBS Ruling

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    While it is always good practice for companies to periodically review whistleblower trainings, policies and procedures, the U.S. Supreme Court’s recent whistleblower-friendly ruling in Murray v. UBS Securities helps demonstrate their importance in reducing litigation risk, say attorneys at Arnold & Porter.

  • Series

    ESG Around The World: Gulf Cooperation Council

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    The Gulf Cooperation Council is in the early stages of ESG policy implementation, but recent commitments by both states and corporations — including increases in sustainable finance transactions, environmental commitments, female representation on boards and human rights enforcement — show continuing progress toward broader ESG goals, say attorneys at Cleary.

  • 6 Pointers For Attys To Build Trust, Credibility On Social Media

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    In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.

  • Cos. Must Know How NY, Federal LLC Disclosure Laws Differ

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    Though New York state's new LLC Transparency Act and the federal Corporate Transparency Act impose similar beneficial owner reporting obligations on limited liability companies, New York LLCs should study the important differences between the laws to ensure they are prepared to comply with both, say Abram Ellis, Olenka Burghardt and Jane Jho at Simpson Thacher.

  • 9 Considerations For Divestitures, Carveouts And Spinouts

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    Amid new economic optimism, data protection, transitional services and seven other considerations can help legal practitioners untangle complex divestitures, carveouts and spinouts to unlock value for corporate sellers, say Kimberly Petillo-Décossard and Kristen Rohr at White & Case.

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