On June 29, 2022, FINRA released the report of its independent investigation, concluding that allegations of a “secret agreement” to avoid certain arbitrators on an industry lawyer’s cases were untrue.
The allegations...more
6/30/2022
/ Administrative Review ,
Appeals ,
Arbitration ,
Arbitration Awards ,
Banks ,
Brokerage Accounts ,
Financial Industry Regulatory Authority (FINRA) ,
Forum ,
Professional Misconduct ,
Securities Litigation ,
Vacatur ,
Wells Fargo
A unanimous Supreme Court held May 23 that a party’s waiver of its arbitration right does not require showing prejudice to an opposing party, because the Federal Arbitration Act (“FAA”) prohibits arbitration-specific rules....more
5/31/2022
/ Arbitration ,
Arbitration Agreements ,
Employment Litigation ,
Federal Arbitration Act ,
Morgan v Sundance ,
Motion to Compel ,
Prejudice ,
Remand ,
Reversal ,
SCOTUS ,
Securities Litigation ,
Wage and Hour ,
Waivers
The U.S. Supreme Court held March 31, 2022, that the Federal Arbitration Act (“FAA”) does not allow federal courts to “look through” to the dispute underlying an arbitration to establish jurisdiction to confirm or vacate an...more
On February 9, the SEC proposed new cybersecurity risk management regulations for investment advisers, registered investment companies (funds), and business development companies....more
2/14/2022
/ Anti-Fraud Provisions ,
Business Development Companies ,
Comment Period ,
Cybersecurity ,
Data Protection ,
Disclosure Requirements ,
Fiduciary Duty ,
Identity Theft ,
Investment Adviser ,
Investor Protection ,
Policies and Procedures ,
Proposed Rules ,
Registered Investment Companies (RICs) ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Securities Regulation
The Tennessee Court of Appeals has held that new arguments for vacatur or modification first raised over 90-days post-award do not relate-back and may not be considered under the State’s version of the Uniform Arbitration...more
On April 9, FINRA amended its customer arbitration rules to give customers more options when a Respondent firm or associated person becomes “inactive” during an arbitration....more
On March 27, securities regulator FINRA extended its previous postponement of in-person hearings from May 1 through May 31. FINRA also will offer virtual hearing options (including Zoom) by agreement or panel order....more
Former Louisiana deputy sheriff and Russian resident Steven Seagal agreed to a Cease and Desist (“C&D”) Order by the SEC, finding violations of the non-touting provisions of Securities Act § 17(b) and imposing civil penalties...more
3/4/2020
/ Cease and Desist Orders ,
Celebrity Endorsements ,
Civil Monetary Penalty ,
Cryptocurrency ,
Digital Currency ,
Disgorgement ,
Enforcement Actions ,
Influencers ,
Initial Coin Offering (ICOs) ,
OCIE ,
Securities Litigation ,
Securities Violations ,
Social Media ,
Token Sales
A unanimous Supreme Court recently held that “covered class actions” over exchange-traded securities are not removable from state courts under SLUSA when they assert only ‘33 Act claims....more
The Tennessee Supreme Court recently held that Tennessee’s Trust Code and broad trust-instruments authorize a Trustee’s execution of a pre-dispute arbitration clause. That isn’t a per se breach of fiduciary duty, but the...more
10/26/2017
/ Appeals ,
Arbitration ,
Arbitration Agreements ,
Beneficiaries ,
Binding Arbitration ,
Breach of Duty ,
Fiduciary Duty ,
Financial Adviser ,
Motion to Compel ,
Non-Signatories ,
Pre-Dispute Arbitration ,
Reversal ,
Securities Litigation ,
Third-Party Beneficiaries ,
TN Supreme Court ,
Trustees ,
Trusts
Cut, paste and forward ? just as the boss instructed. But Lorenzo’s email to two clients was misleading, so the SEC filed an enforcement action. The ALJ held Lorenzo liable for violating anti-fraud provisions and imposed a...more
10/23/2017
/ Administrative Law Judge (ALJ) ,
Anti-Fraud Provisions ,
Appeals ,
Enforcement Actions ,
False Statements ,
Interstate Commerce ,
Investment Schemes ,
Makers ,
Regulatory Violations ,
Rule 10b-5 ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Litigation
Having lost her initial suit (and appeal) to enjoin an SEC administrative enforcement action against her, the so-called “diva of distressed,” Lynn Tilton recently filed another lawsuit trying to halt her upcoming October 24...more
Within weeks, the Second and Third Circuits reached opposite conclusions over federal jurisdiction to confirm, modify or vacate arbitration awards. The Second Circuit now allows courts to look through the face of the...more
Last month, the 6th Circuit joined the majority view recognizing the “materialization of the risk” theory of loss-causation as an alternative to “corrective-disclosure” in securities litigation under Rule 10b-5....more
8/1/2016
/ Corrective Actions ,
Disclosure Requirements ,
Financial Markets ,
Loss Causation ,
Material Misrepresentation ,
PSLRA ,
Rule 10b-5 ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Twombly/Iqbal Pleading Standard
The Eleventh Circuit Friday joined three others in concluding that Congress intended Respondents must wait until appeal from the Commission to have a Court consider their challenges to the Constitutionality of the SEC’s...more
Affirming dismissal of some lingering Morgan Keegan bond fund actions, the Sixth Circuit joined the Second in holding that American Pipe class-action tolling does not affect the expiration of a statute of repose. The Court...more
The Supreme Court held May 16 that the exclusive federal jurisdiction provision of the 1934 Securities Exchange Act means the same as the “arising under” test for federal-question jurisdiction and does not pre-empt state law...more
5/18/2016
/ 28 USC 1331 ,
Exclusive Jurisdiction ,
Federal Jurisdiction ,
Financial Institutions ,
Merrill Lynch ,
Merrill Lynch v Manning ,
Regulation SHO ,
SCOTUS ,
Securities Exchange Act ,
Securities Litigation ,
Short Selling
The Fifth Circuit Bar Association’s summary reports:
“Appellants were investors who suffered financial losses as a result of R. Allen Stanford’s Ponzi scheme. In their arbitration complaint, they sought $80 million in...more
FINRA reported that, for 2015, Claimants won about half of private securities arbitrations: 47% for all-public panel decisions; 45% for majority-public panels. A colleague and securities mediator, Dana Pescosolido, recently...more
Five years after the SEC brought charges that cost two fund executives their jobs, the U.S. First Circuit overturned the sanctions, chiding the SEC for misreading critical evidence, lacking substantial evidence for its...more
The SEC last week approved new MSRB Rule G-44 implementing supervision and compliance requirements for municipal advisors. The MSRB touted the Rule as “its first dedicated rule for municipal advisors” under the Dodd-Frank...more
The familiar “in connection with the purchase or sale” securities-litigation requirement may not be unlimited in its breadth, after all.
On February 26, the US Supreme Court pulled up short defendants in litigation by...more