New Jersey became the first state ever charged by the SEC
for violations of the federal securities laws. They gave up without a fight and
agreed to settle the case, without admitting or denying the SEC's findings.
One feature of the recent changing mix of corporate and
securities litigation has been the rise in the filing of follow-on derivative
lawsuits in the wake of securities class action lawsuit filings. As Wilson Sonsini
partner Boris Feldman recently...
The Ninth Circuit joined the Third and the Seventh in
concluding that at the class certification stage plaintiffs in a securities
fraud damage action need not prove materiality to utilize the fraud-on-the
market. Three other circuits take a contrary...
In a strongly worded November 28, 2011 opinion ( here ),
Southern District of New York Judge Jed Rakoff rejected the proposed $285
million settlement of the enforcement action that the SEC brought against
Citigroup Capital Markets. But while he emphatically...
The SEC took three unusual steps this week. First, in a
high stakes move, the agency appealed the refusal of Judge Rakoff to approve
its proposed settlement in a market crisis case with Citigroup. A loss in the
Second Circuit could substantially injure...
A great deal of the analysis of securities class action
lawsuit settlements revolves around measures of aggregate, average and median
settlement amounts. These data, while useful, are relatively unhelpful in
trying to anticipate the outcome of any...
Former Farris Baker Watts General Counsel Ted Urban
finally prevailed in his long running battle with the SEC to clear his name and
reputation. The Commission, on an evenly divided vote, affirmed the initial
decision of the Administrative Law Judge...
The number of actions settled by the SEC in the last
fiscal year remained essentially constant, according to a report prepared by
NERA Economic Consulting. In contrast, the number of securities class actions
filed last year ticked up slightly in the...
The FCPA and insider trading were the primary issues in
securities enforcement litigation this week. The largest FCPA sting case in
history was dismissed by the DOJ following two ill-fated trials. The set back
for the DOJ in their enforcement efforts...
This week the Commission announced three victories in
court and filed four new civil injunctive actions. At the same time long
simmering matters moved forward. Reuters reports that the new DOJ task force,
created in the wake of the President's...
There were news reports this week that Ponzi king Bernard Madoff's brother, Peter, has agreed to plead guilty to criminal charges that will land him in jail for ten years. At the same time the NY AG settled a case against a the operator of Madoff...
The Deal Prof has a run-down on the Airgas decision . He has it about
The signal this reversal sends is that it basically says
don't worry about the language of your contracts so long as everybody "knows"
what it means. ...
This is the eighth in a series of articles
that will be published periodically analyzing the direction of SEC enforcement.
Insider trading has long been an enforcement priority. In
recent years however it has become a focal point not just for the...
Over the last few days, there have been a series of
rulings in high-profile lawsuits arising out of the subprime meltdown and
credit crisis. As discussed below, just in the past week there
were dismissal motion rulings in cases involving Freddie Mac...
On May 18, 2011, the California Intermediate Court of
in the Luther v. Countrywide Financial Corporation case that state
courts have concurrent jurisdiction with federal courts to hear liability
lawsuits under the Securities Act of 1933...
There are many parts of the securities class action
claims filing process that can fail. In our experience working with
institutional investors, this inevitably occurs when entities attempt to file
on their own, and often if they rely on their custodian...
In a May 11, 2011 opinion ( here ),
a three-judge panel of the Second Circuit affirmed the dismissal of rating agency
defendants in litigation filed under the Securities Act of 1933 and involving
mortgage-related securities issues by Lehman Brothers...
The SEC extended the deadline for private fund managers to register with the Securities and Exchange Commission as investment advisers from July 21, 2011 to March 30, 2012. That's a long enough period of time for legislation to intervene and grant...
The SEC and the DOJ resolved another bid-rigging case related to anticompetitive practices in the municipal securities markets. This is one of a series in an ongoing investigation. The SEC also prevailed on a summary judgment motion in an investment fraud...
This week the SEC lost its bid to dismiss an action
brought by former Goldman Sachs director Rajat Gupta arising out of its insider
trading case brought as an administrative proceeding against him. The GAO
issued reports on the revolving door at the...
The Depository Trust Company (DTC) effectively controls
which public companies' stock can be traded electronically as opposed to
exchanging actual stock certificates when sales take place. A company must
apply to DTC to obtain this ability. Higher...
In a detailed 106-page opinion dated July 27, 2011 ( here ),
Southern District of New York Judge Lewis Kaplan granted in part and denied in
part the defendants' motions to dismiss in the consolidated Lehman Brothers
Securities Litigation. Though...
As the week drew to a close reports surfaced of a rogue
trader who had run up $2 billion in trading losses at UBS in London while the SEC
reportedly is expanding its market crisis probe. At the same time Congress
heard testimony from SEC Chairman Mary...
In the latest eye-popping subprime-related securities
class action lawsuit settlement, the parties to the National City Corporation
securities class action lawsuit have agreed to settle the case for $168
million. The proposed settlement is subject...