This Week in Securities Litigation (Week ending April 25, 2014)

Insider trading and fraudulent investment schemes were the focus of SEC enforcement this week. The Commission filed insider trading actions tied to the massive BP oil spill, clinical trials for a drug and the expert network investigations. The Commission also filed a stop order proceeding, an action...

This Week in Securities Litigation (Week ending May 2, 2014)

Chair Mary Jo White testified before Congress this week. Her testimony focused on the budget, reviewing the recent work of the agency. The Commission brought a series of civil injunctive and administrative proceedings this week. One proceeding named three exchanges and a broker-dealer as Respondents...

This Week In Securities Litigation (Week ending May 9, 2014)

The Commission issued an order which stayed the small segment of its controversial conflict mineral rule which the Court of Appeals concluded violated the First Amendment. The order does not impact the bulk of the rule. This week the SEC filed a number of civil injunctive enforcement actions. Those...

This Week In Securities Litigation (Week ending May 16, 2014)

The Commission got split decisions in court this week. It prevailed in one high profile trial, obtaining a jury verdict in its favor. It lost a significant summary judgment motion regarding the statute of limitations resulting in the dismissal of the case. The ruling may have far reaching effects on...

This Week in Securities Litigation (Week ending May 23, 2014)

SEC Chair Mary Jo White indicated in comments this week that the agency plans to make greater use of Exchange Section 20(b) in the future. That section generally provides for imposing liability on those who cause another to violate the federal securities laws. Apparently the section, which is frequently...

This Week In Securities Litigation (Week ending May 30, 2014)

In a holiday shortened week, the SEC filed actions based on the malfeasance at a transfer agent, financial fraud, insider trading and investment fund fraud. The action involving the transfer agent stems from an inspection and admissions by the principal of the firm while the financial fraud case originated...

This Week in Securities Litigation (Week ending June 6, 2014)

The SEC had mixed results in court this week. A Manhattan jury returned a verdict against the agency in a high profile and long-running insider trading case where the agency had previously obtained favorable rulings from the Circuit Court. In the much watched Citigroup enforcement action in which Judge...

Risky Business: More IPOs Could Lead to More Litigation

Few public entertainers have topped the showmanship of Jean François Gravelet-Blondin. The 19th-century French tightrope walker and acrobat was famous for many astounding feats, including crossing Niagara Falls numerous times—while blindfolded, pushing a wheelbarrow, on stilts and even carrying...

This Week in Securities Litigation (Week ending June 13, 2014)

The Commission failed to prove its insider trading claims to the satisfaction of a jury for the second week in a row. This time a Los Angeles jury rejected claims of the agency against a corporate executive that were tied to selling shares in a secondary offering. The agency also brought actions this...

This Week In Securities Litigation (Week ending June 20, 2014)

High speed trading and conflict of interest in the market place were the topics of the week. Two Senate committees held hearings on the issues which were the focus of the Michael Lewis book Flash Boys and its claim that the markets are rigged. The Senate Permanent Subcommittee on Investigations heard...

This Week In Securities Litigation (Week ending June 27, 2014)

The Supreme Court handed down its much anticipated decision in Halliburton. While the Court declined to overrule Basic and its presumption of reliance based on the fraud-on-the-market theory, it did alter existing practice. The Court held that in attempting to rebut the presumption, defendants can introduce...

SEC Prevails in Eleventh Circuit

The SEC prevailed in an appeal of a financial fraud action. SEC v. Monterosso, Nos. 13-10341, 13-10342, 13-10464 (11 th Cir. Opinion June 30, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. A key issue in the case is the application of the Supreme Court’s decision...

This Week In Securities Litigation (Week ending July 3, 2014)

In a holiday shortened week, dark pools were again a focus for regulators. This week FINRA sanctioned Goldman Sachs in connection with the operation of its dark pool. The Commission, which bolstered its ALJ ranks this week, brought seven administrative proceedings. Five of those proceedings were related...

This Week In Securities Litigation (Week ending July 11, 2014)

The unblemished record of the Manhattan U.S. Attorney’s Office in insider trading cases came to an end this week with the acquittal of Rengan Rajaratnam, brother of the convicted Galleon Fund founder. This is the first loss following a string of victories in insider trading cases. The SEC resolved...

This Week In Securities Litigation (Week ending July 18, 2014)

The SEC’s insider trading probe regarding the House Ways and Means Committee and a senior staff member, also involves 44 investment funds and other entities, according to a Bloomberg news report citing recently filed court papers. The investigation is on-going. The Commission suffered another...

This Week in Securities Litigation (Week ending July 25, 2014)

The Commission issued its long discussed rules reforming money markets this week, requiring that institutional prime money market funds have a floating NAV. The vote was 3-2. In the Court of Appeals the SEC lost its effort to compel SIPIC to cover certain losses related to the Stamford Ponzi scheme...

This Week In Securities Litigation (Week ending August 1, 2014)

The Commission continued to focus on the markets this week, brining another action involving the operation of a partially dark pool. The ECN operator was a subsidiary of Citigroup. The SEC alleged that confidential customer information was used without permission. The SEC also brought another FCPA...

Second Circuit Vacates Dismissal of JinkoSolar Securities Suit

In an interesting July 31, 2014 opinion ( here ), the Second Circuit vacated the dismissal of the securities class action lawsuit that had been filed against JinkoSolar Holdings Co. Ltd, and certain of its directors and officers, as well as against its offering underwriters [an enhanced version of this...

Securities Suits Hit Firms Allegedly Using Stock Promoters to Boost Share Price

On July 30, 2014, when a plaintiff shareholder filed a securities class action lawsuit against the company and certain of its directors and officers, Galectin Therapeutics became the latest company to be hit with a securities suit following press reports that the company had used a stock promotion firm...

This Week In Securities Litigation (Week ending August 8, 2014)

This week the SEC brought an action this centered on hidden fees and a series of actions centered on microcap fraud and investment fund fraud. A pump and dump actions was filed centered on the manipulation of six different stocks since 2012. Investment fund actions were initiated based on allegations...

This Week In Securities Litigation (Week ending August 15, 2014)

The Commission prevailed in two litigated actions. In one the agency secured a favorable jury verdict in an action centered on misrepresentations made by an investment adviser who sought to move his book of business to a new entity. In the second, a jury returned a verdict in favor of the SEC in a microcap...

This Week In Securities Litigation (Week ending August 22, 2014)

The Second Circuit upheld SEC Rule 10b-5-2 which defines certain types of relationships as the predicate for insider trading. In reaching its conclusion the Court rejected an argument that an insider trading claim must be based on a breach of fiduciary duty. This week the Commission brought a second...

This Week in Securities Litigation (Week ending August 28, 2014)

In the roll-up to the Labor Day weekend, the SEC issued new rules regarding asset backed securities and credit rating agencies. The Commission also announced a new pilot program on tick size. SEC Enforcement brought four actions this week. One involved repeated insider trading by an investor relations...

This Week In Securities Litigation (Week ending September 5, 2014)

The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed conflicts; a failure to have supervisory procedures regarding known conflicts;...

This Week in Securities Litigation (Week ending September 12, 2014)

The SEC continued with its “broken windows” approach to enforcement this week, filing a group of 34 actions based on the failure to file either a Form 4, Schedule 13D or Schedule 13G. The agency also filed an action alleging that a bank failed to properly disclose its non-accruing loans,...