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SEC Obtains Freeze Order Against Recidivist And His Entities

The Commission brought an action against a securities law recidivist and his entities who had raised about $22 million in a fraudulent investment scheme. When the action was filed a temporary freeze order was obtained. Later...more

Ruling Explains and Extends Application of Good Faith Defense to Fraudulent Transfer Actions in SIPA Context

In an April 27, 2014 decision in the Madoff cases, Judge Jed S. Rakoff ruled that the standard of good faith should be considered differently in a Securities Investor Protection Act (SIPA) liquidation. To defeat a good faith...more

Does the Business Judgment Rule Protect Bank Officers and Directors?

When a corporation suffers significant losses, or ultimately fails, frustrated shareholders, creditors, or others often try to sue the corporation and/or its officers and directors for losses caused by mismanagement of the...more

BAC CEO Pays $10 Million Plus D&O Bar To Settle NYAG Market Crisis Case

Former Bank of America CEO Kenneth Lewis agreed to pay $10 million and to be barred from serving as an officer or director of a public company for three years to settle fraud charges brought by the New York Attorney General...more

Attacking LBO Payouts as State Law Fraudulent Transfers

The United States Bankruptcy Court for the Southern District of New York (the “Court”) in Weisfelner v. Fund 1 (In Re Lyondell Chemical Co.), 2014 WL 118036 (Bankr. S.D.N.Y. Jan. 14, 2014) recently held that the safe harbor...more

Factors in Forfeiture: Eleventh Circuit Rules in Seizure of Rothstein Ponzi Assets

In a ruling applying conflicting precedents, the Eleventh Circuit identified factors courts should consider when determining whether certain accounts are subject to asset forfeiture....more

Orrick's Financial Industry Week in Review - July 22, 2013

SEC and EU Supervisory Cooperation for Asset Management Industry - On July 19, the SEC announced that it signed various memoranda of understanding with the financial regulators of 25 member states of the EU and 3...more

Bear Stearns Liquidators Brings Fraud Action Against Rating Agencies

On July 9, the joint official liquidators of Bear Stearns & Co. Inc. filed suit against three rating agencies – Standard & Poors, Moody’s and Fitch – in New York state court over the agencies’ allegedly fraudulent investment...more

Fifth Circuit Applies Moench Presumption of Prudence at Motion to Dismiss Stage

The Fifth Circuit recently joined four other circuits (the Second, Third, Seventh and Eleventh Circuits) in holding that the presumption of prudence applicable in employer stock fund cases is appropriately applied at the...more

Securities Class Representative Cannot Object to Bankruptcy Release on Behalf of Class

The US District Court for the Southern District of New York affirmed an order rejecting an objection to the confirmation of a Chapter 11 Plan of Reorganization for Dynegy, Inc. and Dynegy Holdings, LLC (together, Dynegy) for...more

Narrow Interpretation of "Customer" Under SIPA Is Affirmed by the Second Circuit

On February 22, 2013, the United States Court of Appeals for the Second Circuit in In re Bernard L. Madoff Investment Securities LLC held that certain individuals who had invested indirectly in Bernard L. Madoff Investment...more

United States of America vs. Russell Wasendorf Sr.

Criminal Complaint

Russell Wasendorf Sr., the chief executive of the futures brokerage firm Peregrine Financial Group, violated section 1001(a)(1) & (3) of Title 18 by “making and using false statements in a matter within the jurisdiction of...more

Credit Crunch Digest -- June 2012

This digest collects and summarizes recent media reports regarding potential liability, government initiatives, litigation and regulatory actions arising from the subprime mortgage crisis and credit crunch, including cases of...more

Corporate and Financial Weekly Digest - June 1, 2012

In this issue: - NASDAQ Proposes Liberalization of Independence Exception Provisions - FINRA Provides Additional Guidance on New Suitability Rule - CFTC Roundtable to Discuss Proposed Regulations Implementing...more

SDNY Bankruptcy Court Interprets Section 546(e)’s Safe Harbors in Lehman-JPMorgan Dispute

On April 19, 2012, the U.S. Bankruptcy Court for the Southern District of New York granted in part and denied in part JPMorgan Chase, N.A.’s motion to dismiss an adversary complaint filed by Lehman Brothers Holdings Inc....more

Inside M&A - January/February 2012

In This Issue: SEC Sues Private Company and its CEO for Fraud Related to Buyback Program Involving Employee Stock Bonus Plan The Fiducie in Restructuring and Acquisition Transactions in...more

Federal District Court Remands Morgan Stanley MBS Suit to Ohio State Court

On December 20, 2011, Judge S. Arthur Spiegel of the Southern District of Ohio granted the plaintiffs’ motion to remand and denied Morgan Stanley’s motion to transfer to the Southern District of New York an RMBS suit based on...more

District Court Ruling Could Significantly Limit Madoff Trustee's Claims Against Mets' Owners

On September 27, 2011, U.S. District Judge Jed S. Rakoff issued an important ruling in the action commenced by Irving Picard ("Trustee"), trustee for Bernard L. Madoff Securities LLC ("Madoff"), against a group of individuals...more

WaMu Court Allows Equity Committee to Pursue “Equitable Disallowance” of Noteholder Claims Based on Allegations of Insider Trading

On September 13, 2011, Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware granted standing for an equity committee in In re Washington Mutual, Inc. (“WaMu”) to seek “equitable...more

Ad Hoc Committees Owe Fiduciary Duties? WaMu Threatens to Turn a Molehill Into a Mountain

Much has already been written about the "insider trading" aspects of Judge Walrath's September 13 Opinion denying confirmation of WaMu's Chapter 11 plan of reorganization (the Opinion can be found here). In a nutshell, Judge...more

Angry Investors Meet Bankrupt Walter Ng

A federal bankruptcy court in Oakland, California became the venue where a crowd of angry investors went to confront the man they said caused them to lose millions of dollars of their savings. About 3,000 of them gathered,...more

White Paper Exposing Abuses of Wall Street On Subprime Mortgage Industry

First paper to define predatory lending and also create the terms "predatory servicing" and "predatory mortgage servicing" as well as "predatory securitization." A must read for anyone involved in litigation in subprime...more

Predatory Bear

First white paper and report to describe pitfalls of the subprime mortgage industry; forecast Bear Stearns fall and failure; forecast the effects of Bear Stearns' and other Wall Street's use of securitization would have on...more

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