Tag Archives: Securities Litigation

Supreme Court Hands Plaintiff’s Securities Class Action Bar A Win

This post was also written by Thomas M. Levinson. In its ruling on February 27, in Amgen, Inc. v. Connecticut Retirement Plans & Trust Funds (No. 11-1085), the first of several highly anticipated class action decisions this term, the Supreme Court, in a 6-3 opinion written by Justice Ruth Bader Ginsburg, held that securities fraud … Continue Reading

The Death of Class Actions? A FINRA Panel Ruling Could Signal the End of Class Claims against Brokers

This post was written by Terence Healy and Daniel Herbst. A recent ruling by a hearing panel of the Financial Industry Regulatory Authority (“FINRA”) could provide a path to effectively kill customer class actions against brokers. On February 21, a FINRA panel upheld an arbitration clause in a Charles Schwab and Co. customer agreement which … Continue Reading

Down goes Frazier!… The SEC Takes It on the Chin in Supreme Court Fight to Maintain “Discovery Rule” in Enforcement Actions

This post was written by Terence Healy. The discovery rule is no more. The Supreme Court today issued its decision in Gabelli v. SEC, 568 U. S. ____ (2013), and held the five-year limitations period under 28 U.S.C. § 2462 runs from the date of the underlying violation, and not from when the government reasonably … Continue Reading

SEC Better Fasten Those Seat Belts, Looks Like A Bumpy Ride

This post was written by Amy J. Greer. As the securities enforcement world awaits the U.S. Court of Appeals for the Second Circuit’s decision in the SEC v. Citigroup matter – where Judge Jed Rakoff balked at the Commission’s “neither admit nor deny” policy and refused to approve a settlement for lack of evidentiary support … Continue Reading

Industry Gives Chilly Response to FINRA’s Proposed Recruitment Compensation Disclosure Rule

With just a few weeks remaining until the close of the comment period (ending March 5, 2013), the brokerage industry nearly uniformly has given a chilly reception to FINRA’s proposal to require disclosure of broker recruiting incentives to customers when an individual broker is recruited to a new firm. FINRA’s Regulatory Notice 13-02 proposes mandatory … Continue Reading

The Clock Is Ticking for the SEC… (Or Is It?)

This post was written by Terence Healy. The Supreme Court heard oral argument this morning in a case addressing the time within which the Securities and Exchange Commission (“SEC”) can initiate an action seeking civil penalties for violations of the federal securities laws. In Gabelli v. SEC, the Court considered whether the “catch all” five-year limitations … Continue Reading

Securities and Exchange Commission (“SEC”) Charges Chinese Affiliates of Five Large Accounting Firms for Failing to Produce Work Papers

This post was also written by Terence Healy. Yesterday, the SEC instituted administrative proceedings against the Chinese affiliates of the “Big Four” accounting firms and BDO related to audits they conducted at nine Chinese companies. At issue is the accounting firms’ “willful refusal” to provide audit work papers and other materials the Commission seeks in its … Continue Reading

Lost in Translation: Chinese Spring Ducks Beware the SFC!

Defining “insider trading” is already difficult enough, especially across different jurisdictions where elements and defenses can vary ever so slightly, and yet can result in very big differences. But try translating the term to your Chinese-speaking client. The most commonly used translation for insider trading is “內幕交易” (nèimùjiāoyì) – which literally means “trading behind the … Continue Reading

SEC Whistleblower Program Makes its First Award

This post was written by James L. Sanders. An unnamed individual who provided information to the SEC about a securities fraud has been awarded $50,000 under the SEC’s Whistleblower Program. The award represents 30 percent of the monetary sanctions collected by the SEC in the case in which the whistleblower provided information. The whistleblower has … Continue Reading

Delaware Test For “Direct” vs. “Derivative” Claims Adopted by NY Appellate Court

This post was written by Herbert F. Kozlov and Lawrence J. Reina. In a case of first impression in New York, the Appellate Division, First Department, has adopted the test the Supreme Court of Delaware developed in Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1031, 1039 (Del 2004) for determining the difference between a … Continue Reading

Second Circuit Reins In Expansive Application of Dura

In a strongly worded decision that will make it easier for private plaintiffs to withstand dismissal of securities fraud claims in certain cases, the Second Circuit vacated and remanded a federal district court’s dismissal of a putative securities fraud class action. In Acticon v. China Ne. Petroleum Holdings Ltd., — F. 3d —, 2012 WL … Continue Reading

11th Circuit Takes Direct Aim at SEC ‘Obey-the-Law’ Injunctions and Reminds Us All That Even the Very Broad Anti-Fraud Provisions Have Their Limits

This post was written by Amy J. Greer. In a recent appeal before the United States Court of Appeals for the 11th Circuit, there is little doubt that the SEC thought its case was something of an easy win. The story is not pretty. Richard L. Goble, the remaining defendant in the matter – everyone … Continue Reading

Restitution for Corporate Victims of Insider Trading: The Skowron Case

This post was written by Pablo Quiñones and Jennifer Achilles. On March 20, 2012, a New York federal judge ordered Chip Skowron to pay $10 million in restitution to Morgan Stanley as a corporate victim of his insider trading and obstruction of justice schemes. The Skowron decision is a significant victory for corporate victims of … Continue Reading

Results of the FSA’s Thematic Review into Investment Banks

This post was written by Robert Falkner and Tom Webley. In March 2012, The Financial Services Authority (“FSA”) published the results of its thematic review into the policies and procedures that investment banks have in place to prevent their employees from paying or receiving bribes. Click here for more information on the background to this … Continue Reading

SEC Expands Its Cooperation With Global Regulators: Hedge Funds and Investment Advisors Take Note

This post was also written by Pablo Quinones and Joseph Prater. On March 23, 2012, the United States Securities and Exchange Commission (“SEC”) announced that it had entered into cooperation arrangements with the Cayman Islands Monetary Authority (“CIMA”) and the European Securities and Markets Authority (“ESMA”) in its continuing effort to improve global regulation of transnational … Continue Reading

Don’t Drink and Deal: Former Hong Kong Civil Aviation Chief Gets Jail Sentence Despite Intoxication Defense

The Eastern Magistracy of Hong Kong recently found former Hong Kong civil aviation chief, Albert Lam Kwong-yu, guilty of insider dealing. On June 4, 2010, Lam, who at the time was an independent non-executive director (“INED”) of Hong Kong Aircraft Engineering Company (“HAECO”), received a call at 3:13 p.m. from HAECO’s Chief Executive Officer about … Continue Reading

SEC Warning: Phony Email Hoax

This post was written by Amy J. Greer. The SEC sent out a warning yesterday that a phony message referencing the Agency’s Whistleblower Office is being used in connection with a potential computer hack or dissemination of malicious software. According to the SEC Alert, sent through the Agency’s push technology, it has received numerous calls … Continue Reading

Judge Rakoff Rejects the SEC-Citi Settlement, But Is “Truth” Really the Purpose of Any Settlement and Does the SEC Need the Courts to Settle its Cases?

This post was written by Amy J. Greer. Once again, Judge Jed Rakoff has proven to be a thorn in the side of the SEC, rejecting the agency’s $285 million settlement with Citigroup Global Markets. While Judge Rakoff’s opinions are always a good read: sharp, well written, and to the point – and this one … Continue Reading

Regulatory Round Up 11.8.11

A little clarity on CBP Regulations. For those of you not paying attention, the UK would really like bribery payments to stop. Here is my post, about a post, about a post. Follow the rabbit hole, for a discussion about small businesses being impacted by premium payments to government contractors.  What’s going on with satellites? … Continue Reading

Regulatory Round Up 10 .20. 11

The Wolfsberg Group recently published its Anti-Corruption Guidance, which leads me to assume that someone, somewhere, is drafting Corruption Guidance. Perhaps those old cartoons were on to something? More evidence that when it comes to cloud computing, no one knows what to do. People do bad things on the internet? Say it ain’t so. For … Continue Reading

UK Bribery Act – first conviction – a damp squib?

This post was also written by Emma Osborne. The first person to be charged under the new UK Bribery Act, a magistrates court clerk, was convicted by Southwark Crown Court on Friday, 14 October 2011. The court clerk, 22 year old Mr Munir Yakub Patel, was convicted under Section 2 of the Bribery Act for … Continue Reading
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