The SEC May Expand Compensation and Governance Disclosure for 2010 Proxy Season

The SEC recently released new proposed rules concerning compensation and corporate governance disclosure for public company proxy statements and other filings. This Emerging Issues Analysis provides a summary of the key components of the proposed rule changes and the SEC's comment requests relating...

Vivendi Found Liable in Securities Class Action Trial

According to January 29, 2010 reports in the New York Times ( here ) and on Bloomberg ( here ), the jury in the long-running securities class action lawsuit against Vivendi has resulted in a verdict against the company on all 57 of the plaintiffs' claims. However, the jury also found that the two...

More Galleon Scalps

Galleon takes yet another scalp. This one from Rajiv Goel - a 1993 Wharton classmate of Raj Rajaratnam and former executive at Intel. From the US Attorney’s Press Release announcing the guilty plea: Specifically, in April 2007, GOEL obtained Inside Information regarding Intel's earnings...

SEC Remedies: Time for a Reassessment

Commissioner Louis Aguilar, in remarks at SEC Speaks last Friday, called for a revamping of the Commission’s 2006 Statement on Corporate Penalties, discussed here . While Commissioner Aguilar makes a good point, any reassessment should begin with a careful undertaking in the broader context of...

Failing to Supervise Large Municipal Accounts

A third settled administrative proceeding arising out of the churning of two Florida municipal accounts at First Allied Securities, Inc. was filed last week. This case was brought against the firm for failing to properly supervise the account executive. In the Matter of First Allied Securities, Inc....

SEC v. Tambone — The Question of Primary Liability

The distinction between primary and secondary liability in securities fraud suits has been a key issue since the Supreme Court handed down its decision in Central Bank of Denver v. First Interstate , 511 U.S. 164 (1994). Although the SEC had its authority to bring Section 10(b) fraud actions based on...

Murray, Frank & Sailer LLP Files Securities Class Action Against Toyota

NEW YORK — Murray, Frank & Sailer LLP announced Feb. 18 that it has filed a class action complaint in the U.S. District Court for the Southern District of New York (No. 10 Civ. 1175) on behalf of all individuals and institutions who purchased Toyota Motor Corp. publicly traded securities...

High Court Weighs Fraud Lawsuit Against Aussie Bank

WASHINGTON, D.C. – (AP) The Supreme Court indicated Monday it could prohibit foreign investors from using U.S. securities law and American courts to sue a foreign bank for fraud. The court heard argument in a challenge from Australian investors who want to sue the Melbourne-based National Australia...

Barroway Topaz Ranked Among Top 5 Law Firms Of 2009 For Recoveries, Settlements In Securities Class Actions

RADNOR, Pa. — Leading class action and corporate governance law firm Barroway Topaz Kessler Meltzer & Check LLP has again been ranked among the nation's top five law firms of 2009 for highest investor recovery in securities class actions and number of settlements, according to RiskMetrics...

Baron & Budd Class Action Lawsuit Alleges Price Fixing Involving Marine Products

LOS ANGELES — Baron & Budd P.C. attorneys, working with attorneys from Los Angeles-based Glancy Bingow & Goldberg LLC, New York securities law firm Labaton Sucharow LLP, Mobile, Ala.-based Vickers, Riis, Murray and Curran L.L.C. and Galveston attorney A. Craig Eiland, have filed suit in...

Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against Goldman Sachs Group Inc.

NEW YORK — Robbins Geller Rudman & Dowd LLP on April 26 announced that a class action has been commenced in the U.S. District Court for the Southern District of New York on behalf of purchasers of the common stock of Goldman Sachs Group Inc. between Oct. 15, 2009, and the time it was publicly...

The FSA: Vying To Be Viewed as an Aggressive Regulator

The Financial Services Authority in the U.K. has been aggressively prosecuting insider trading cases as part of its efforts to shed its lackluster image. Until last week, the regulator had prevailed in four successive insider trading trials. Last week, the FSA's program was dealt a setback...

What is a Security? Is Real Estate a Security?

Previously, I went through the analysis that a fund manager is considered an investment adviser . But left open the question of "what is a security?" That's a key question for fund managers with alternative investments, like real estate. The Investment Advisers Act gives a very broad...

High Court: Investors Properly Pleaded Materiality In Securities Class Action Suit

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on March 22 unanimously affirmed that shareholders of a drug maker properly showed that the drug maker violated federal securities law by failing to disclose that one of its products caused adverse effects ( Matrixx Initiatives, Inc., et al. v...

Stories We're Following: Failed Banks, China and More

The short week after the July 4 th holiday is usually quiet. There certainly did seem to be less traffic on the roads. But nevertheless, there was news of note this past week on several stories we have been following, as discussed below. The traffic on the roads may have slowed but the circulation...

High Court Hears Oral Argument In Shareholder Derivative Suits Appeal

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Nov. 29 heard oral arguments in a shareholder derivative suit appeal seeking a determination of whether the two-year statute of limitations for bringing an action under Section 16(b) of the Securities Exchange Act of 1934 is subject to tolling...

$507 Million In Settlements Reached With Lehman Officers, Directors, Underwriters

NEW YORK - (Mealey's) In a motion made available on Dec. 5, lead plaintiffs in a securities class action lawsuit against Lehman Brothers Holdings Inc., certain of its formers officers and directors and others asked a federal judge in New York to approve two settlements totaling $507 million to settle...

Former Bear Stearns Auditor To Pay Nearly $20 Million To Settle Securities Law Claims

NEW YORK - (Mealey's) The former independent outside auditor for The Bear Stearns Cos. Inc. agreed on Monday to pay nearly $20 million to settle shareholder claims that it failed to accurately monitor the financial giant's internal controls with regard to Bear Stearns' issuance of risky subprime...

Supreme Court To Hear Appeal In Market Timing Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Sept. 25 agreed to hear an appeal of a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek penalties against defendants for securities fraud for conduct that was not fraudulently concealed and...

The Case of SoMoLend: Crowdfunding Platforms and Other Startups Beware of Potential Securities Law Violations

SoMoLend – Social Mobile Local Lending – is a crowdfunding platform that has peer-to-peer lending technology that allows businesses to obtain loans from a network of lenders, typically located in the same geographic area (banks, credit unions, community-development financial institutions...

Book Review: Securities Law and Practice Deskbook: Sixth Edition – a Great Resource for Securities Law Practitioners

I was fortunate enough to receive a copy of the latest (sixth) edition of Securities Law and Practice Deskbook by Gary M. Brown. This is not a book for everyone. This is a concise summary of the entire body of the securities law, and is written for the securities attorneys. It serves as a great reference...

First Enforcement Action Taken Against Crowdfunding Site

For the first time, regulators are taking action against one of the many crowdfunding sites that have sprung up since the passage of the JOBS Act. The Ohio Division of Securities issued a notice of intent to issue a cease-and-desist order against the Cincinnati-based crowdfunding platform SoMoLend and...

A Clue About #8 in Financial Fraud Law for the Year: Look at Bryan Cave’s Next Firm-Wide Leader

As the Financial Fraud Law Blog continues its countdown of the Top 10 in Financial Fraud Law for the year, we are going to begin with a clue: Bryan Cave. Give up? The clue is relevant to our Top 10 list because the international law firm has just named its next global chair: Therese D. Pritchard...

Norton Rose Fulbright: 2d Circuit Dismisses Listing Theory Under Morrison

By Johannes K. Gabel , Manuela A. Siragy and Richard Werner Fagerer The Court of Appeals for the Second Circuit in its May 6 decision emphatically continued to interpret the Morrison v. National Australia Bank 1 doctrine broadly by confirming the District Court’s dismissal of a putative securities...

U.S. High Court Hears Arguments In Case Over Appealing LIBOR Suit

WASHINGTON, D.C. — (Mealey’s) A dismissal of a lawsuit by a trial court and a statement that the case was terminated render the case appealable, Thomas C. Goldstein of Goldstein & Russell in Bethesda, Md., argued Dec. 9 before the U.S. Supreme Court ( Ellen Gelboim and Linda Zacher, et...