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Securities
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May 30, 2025
Governor Wants Input If Dropbox Challenge Is Appealed
Delaware's governor wants to weigh in on a potential Delaware Supreme Court midcase review of a controversial state corporation law overhaul that limits the liability of directors and controlling investors for allegedly self-interested corporate acts.
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May 30, 2025
Tornado Cash Judge Won't Order Review Of Feds' Evidence
A New York federal judge said Friday that she won't direct federal prosecutors to conduct a review for additional evidence in their case against Tornado Cash founder Roman Storm despite the defense's claims that a recent disclosure in a separate crypto mixer prosecution could impact Storm's defense.
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May 30, 2025
Crowdfunding, Reg A Deals Grow Slowly As SEC Weighs Ideas
Equity crowdfunding and expanded Regulation A offerings have grown slowly since going live over the past decade, according to new data, leaving open questions on whether regulators will ease rules to bolster these alternatives to traditional capital raising.
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May 30, 2025
Fla. Trucking Co. Exec Gets 23 Years For Duping 1,600 People
A Florida federal judge on Friday sentenced the former president of a trucking and logistics company to 23 years in prison for defrauding more than 1,600 people who invested millions of dollars in purchasing big-rig vehicles, calling the crime "a classic Ponzi scheme of staggering scale."
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May 30, 2025
Ex-Wells Fargo Exec Sues To Enforce DOL Retaliation Order
A former senior official with Wells Fargo Bank NA has filed suit in a California federal court to force the bank to comply with an order from a U.S. Department of Labor agency finding he is entitled to more than $20 million for purported retaliation after he blew the whistle on legal concerns and was subsequently fired.
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May 30, 2025
Convicted Crypto Investor's Wife Says Gov't Can't Seize Funds
The wife of a bitcoin investor sentenced to prison for concealing millions of dollars from the IRS asked a Texas federal court Friday to stop the federal government from taking her money to help make up for $1 million in restitution stemming from his cryptocurrency sales.
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May 30, 2025
OFAC Sanctions Philippine Biz, Alleging Role In Cyber Scams
The Office of Foreign Assets Control has sanctioned a Philippines-based technology company for allegedly providing computer infrastructure to "hundreds of thousands" of websites involved in virtual currency scams, according to a statement.
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May 30, 2025
REIT Investors' $12M Deal Over NexPoint Merger Get Final OK
A New York federal judge granted final approval to a $12 million securities class action settlement reached with Jernigan Capital investors who alleged the defendants omitted material information amid a 2020 sale to NexPoint Advisors, and awarded $3.9 million in fees Thursday to lead counsel for prosecuting the case.
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May 30, 2025
Texas Law Firm Beats Atty's Suit Over Stock Redemption
A Texas state appeals court has upheld Friedman Suder & Cooke PC's win in its decade-long dispute with a former shareholder over the redemption of his shares when he was let go, affirming a trial court ruling declaring the redemption "effective and operative."
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May 30, 2025
Taxation With Representation: Kirkland, Cravath, Latham
In this week's Taxation With Representation, WiseTech completes a $2.1 billion merger with E2open, Acrisure buys a payroll management company for $1.1 billion and Hailey Bieber sells her Rhode skincare and makeup company to e.l.f. beauty for $1 billion.
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May 29, 2025
ZoomInfo Wants Out Of Investors' Accounting Fraud Claims
Software company ZoomInfo Technologies Inc. urged a Washington federal judge to toss a proposed investor class action accusing it of making missteps in an effort to retain new pandemic-era customers, claiming the "fraud-by-hindsight" allegations are inactionable.
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May 29, 2025
Judge Trims Most, But Not All, Of Grifols Suit Over Share Price
A New York federal judge Thursday tossed several defamation claims made by Spanish healthcare company Grifols SA against short seller Gotham City Research, finding that the claims are opinions and therefore inactionable, while keeping alive a claim tied to statements in the report that Grifols failed to disclose a $95 million loan, finding it was a factual statement.
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May 29, 2025
$17.5M TaskUs Investor Deal Gets Magistrate's Endorsement
A federal magistrate judge has recommended preliminary approval of a $17.5 million settlement between digital solutions providers TaskUs and its investors who claim the company made false statements about its turnover and Glassdoor ratings, saying the parties' revisions to the deal are justified.
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May 29, 2025
Investment Firm Says It Was Duped Into $349M Dental Deal
Investment firm TSG8 SDB Group Holdings LP has filed suit in Delaware Superior Court claiming a Texas-based holding company tricked it into pouring $349 million into a specialty dental practices platform based on fake financials and phony growth claims, and hid the business's problems just long enough to cash out.
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May 29, 2025
House Introduces CFTC-Focused Crypto Market Structure Bill
A bipartisan group of House lawmakers introduced a long-awaited proposal to regulate crypto markets on Thursday that would establish a registration path at the U.S. Commodity Futures Trading Commission and codify the boundaries of jurisdiction between commodities and securities regulators.
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May 29, 2025
PCAOB Taps New Acting General Counsel
The Public Company Accounting Oversight Board on Thursday announced that Connor Raso has been appointed acting general counsel, following stints in the PCAOB's office of the general counsel and at the U.S. Securities and Exchange Commission.
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May 29, 2025
Delaware Justices Asked To Review Corporate Law Rework
A biopharmaceutical company stockholder has sought direct certification of a derivative suit to Delaware's Supreme Court, asking for state constitutional review of legislation approved in March that limits avenues for challenges to some corporate acts.
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May 29, 2025
Real Estate CFO, Mogul's Daughter Dodge Two Trustee Claims
The chief financial officer of bankrupt construction services company Gateway Development Group Inc. and the daughter of the company's chair have escaped a Chapter 7 trustee's claims that they helped the chair breach his fiduciary duties, with a judge ruling the claims aren't recognized under Connecticut law.
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May 29, 2025
2nd Circ. Upholds KeyBank Adviser's $1.1M Defamation Win
The Second Circuit on Thursday upheld a $1.1 million award against a brokerage firm accused of making defamatory remarks about a former employee, ruling that Financial Industry Regulatory Authority arbitrators did not disregard the law in handing down the punishment.
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May 29, 2025
NASCAR Wins Defamation Claims Over LGBCoin Sponsorship
A Florida state court judge ruled in favor of NASCAR on defamation claims brought by the founder of the LGBCoin cryptocurrency regarding communications to journalists, saying a published statement that the meme coin was almost worthless was "undisputably true."
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May 29, 2025
SEC Drops Binance Suit In Latest Crypto Reversal
The U.S. Securities and Exchange Commission on Thursday voluntarily ended a lawsuit accusing crypto platform Binance of mishandling customer funds and deceiving regulators, citing the agency's ongoing efforts to change the way it regulates the digital asset industry.
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May 29, 2025
$45M Settlement, $9.65M Fee OK'd In Del. Cornerstone Suit
Stockholders who challenged Clayton Dubilier & Rice LLC's $5.8 billion take-private deal for Cornerstone Building Brands in 2022 secured a $45 million settlement Thursday, in a case that once saw a Delaware vice chancellor blast as "farcical" the two companies' early, alleged attempts to camouflage price negotiations to get around a standstill agreement.
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May 29, 2025
Judge Tells FDIC 'Whistleblower' To Stop Texting Gov't Attys
A D.C. federal judge threatened a self-proclaimed Federal Deposit Insurance Corp. "whistleblower" with criminal referral if he reaches out to the agency's lawyers again, calling his claim that one attorney was trying to frame him with sending "harassing" messages sent to the attorney's wife "patently ridiculous."
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May 29, 2025
Investors Allege Manhattan Firm Aided $43M Ponzi Scheme
A pair of investors filed suit against New York-based Moritt Hock & Hamroff LLP and two of its former attorneys on Thursday, alleging that the midsize firm and the attorneys, who have since departed for Saul Ewing LLP, lied on behalf of a client who has since been charged with running a $43 million Ponzi scheme.
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May 29, 2025
'Dr. Cash' Gets 3 Years For Bilking Elderly Fund Investors
A recidivist fraudster nicknamed "Dr. Cash" was sentenced in Manhattan federal court Thursday to three years in prison, after he admitted to defrauding clients who poured $4.8 million into his purported "Chairman's Fund."
Expert Analysis
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Suggestions For CFTC Enforcement's New Leadership
The recent change in leadership at the U.S. Commodity Futures Trading Commission presents an opportunity to reflect on past practices and consider opportunities for improvement at the commission's Enforcement Division, including in observing precedent and providing greater enforcement transparency, say attorneys at Clifford Chance.
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Chancery Ruling Holds Authorized Share Takeaways For Cos.
The Delaware Chancery Court’s recent ruling in Salama v. Simon resolved statutory ambiguity in favor of boards seeking authorized share increases, and has important implications for litigators presenting extrinsic evidence in support of contract or statutory interpretation arguments, says Robin Wechkin at Sidley.
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Opinion
NFT Bill Needs Refining To Effectively Regulate Digital Assets
A recent bill in the U.S. House proposing to regulate nonfungible tokens as digital assets would leave key concepts undefined until the U.S. comptroller general completes an after-the-fact study of NFTs, showing it needs more work before it is comprehensive enough to meaningfully protect the market, say attorneys at Duane Morris.
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McMahon SEC Settlement Warns Of Nondisclosure's Price
The U.S. Securities and Exchange Commission's recent financial nondisclosure settlement with former WWE CEO Vince McMahon illustrates the breadth of executives' reimbursement obligations under the Sarbanes-Oxley Act and highlights the importance of building robust internal corporate reporting processes, say attorneys at BCLP.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Bill Would Bring Welcome Clarity To Del. Corporate Law
A recently proposed bill in Delaware that would provide greater predictability for areas including director independence and controlling stockholders reflects prudential adjustments consistent with the state's long history of refining and modernizing its corporate law, say attorneys at Simpson Thacher.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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Del. Supreme Court TripAdvisor Ruling May Limit 'MFW Creep'
The Delaware Supreme Court's recent Maffei v. Palkon ruling regarding TripAdvisor's proposed reincorporation to Nevada potentially signals a turning point in the trend of expanding the protections from Kahn v. M&F Worldwide to other types of transactions, says Andrew J. Haile at Elon University.
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What To Expect In Crypto Banking After SEC Nixed Guidance
With the U.S. Securities and Exchange Commission recently rescinding its controversial cryptocurrency accounting guidance, the industry's focus will turn to the potentially significant hurdle to crypto banking posed by the federal banking regulators, say attorneys at Duane Morris.
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Partially Faulting Airline For 401(k) ESG Focus Belies ERISA
A Texas federal court's recent finding that American Airlines breached its fiduciary duty of loyalty, but not of prudence, by letting its 401(k) pursue environmental, social and governance investments, misinterprets the Employee Retirement Income Security Act's standard of care, says Jeff Mamorsky, a Cohen & Buckmann partner and ERISA drafter.
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Fund Names Rule FAQs Leave Some Interpretative Uncertainty
Although recently released FAQs clarify many specific points of the 2023 expansion to the Investment Company Act's fund names rule, important questions remain about how U.S. Securities and Exchange Commission staff will interpret other key terms when the end-of-year compliance date arrives, say attorneys at Dechert.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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What Travis Hill's Vision For FDIC Could Portend For Banks
If selected to lead the Federal Deposit Insurance Corp. in a permanent capacity, acting Chairman Travis Hill is likely to prioritize removing barriers to innovation and institution-level growth, emphasizing the idea that eliminating rules, relaxing standards and reducing scrutiny will reinvigorate the industry, say attorneys at Mitchell Sandler.
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Will Independent Federal Agencies Remain Independent?
For 90 years, members of multimember independent federal agencies have relied on the U.S. Supreme Court's 1935 ruling in Humphrey's Executor v. U.S. establishing the security of their positions — but as the Trump administration attempts to overturn this understanding, it is unclear how the high court will respond, says Harvey Reiter at Stinson.