Securities Law, Civil Remedies, Business Torts

Assured and UBS Agree to Settle RMBS Litigation for $358 Million

by Orrick - Structured Finance Group on 5/14/2013

On May 6, monoline insurer Assured Guaranty Ltd. announced a $358 million settlement with UBS and its affiliates stemming from losses on residential mortgage-backed securities that were issued, sponsored or underwriten by...more

Credit Crunch Digest -- April 2013

by Jennifer Quinn Broda, Ryan Chapoteau, Matthew Ferguson, Todd McCormick, Thomas R. Orofino, Eric C. Scheiner | Sedgwick LLP on 5/2/2013

This issue of the Credit Crunch Digest focuses on the dismissal of antitrust claims against major banks in Libor-related litigation; settlement in the Merrill Lynch/Bank of America merger case; settlement in the SAC Capital...more

News Of The (Shareholder Derivative) World: Record-High $139 Million Settlement In News Corp. Phone Hacking Suit

by Kevin Askew, James Grohsgal, Robert Varian | Orrick - Securities Litigation and Regulatory... on 5/1/2013

Putting an end to shareholder derivative litigation arising from News Corp.’s phone-hacking scandal, the company’s directors agreed last week to a record-breaking $139 million cash settlement. According to the plaintiffs’...more

No Happy Trails For Victorville Tax Increment Bond Financing

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 4/30/2013

For more than thirty years, I’ve driven by, but never stopped at, the Roy Rogers and Dale Evans Museum in Victorville, California. The museum eventually relocated to Missouri but reportedly did not survive for long. Despite...more

Record SEC Settlement In S.A.C. Capital Investigation. Well….Kind Of

by Penelope Graboys Blair, Anushila Shaw, James Thompson | Orrick - Securities Litigation and Regulatory... on 4/24/2013

On April 16, 2013, Judge Victor Marrero conditionally approved a $600 million consent judgment between the SEC and CR Intrinsic Investors LLC (“CR”) where CR “neither admitted nor denied” the allegations brought against it....more

Don’t Lie About Assets Under Management

by David Jenson | Leonard, Street and Deinard - Dodd-Frank and... on 4/19/2013

Umesh Tandon, president, chief compliance officer, and sole owner of Simran Capital Management, recently agreed to a settlement with the SEC relating to alleged violations of the Investment Advisers Act of 1940 and the...more

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

by James Vincequerra | Duane Morris LLP on 4/10/2013

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

Flawed Confidential Witness Allegations: A Crucial Issue in Securities Class Action Litigation

by Douglas W. Greene | Lane Powell PC - Securities / D&O Discourse on 4/4/2013

The recurring and pervasive problem of flawed confidential witness (“CW”) allegations tops my list of the key issues in securities class action litigation.* I don’t mean just notorious situations such as those recently at...more

Delaware Chancery Court Expands Number of Direct Claims Available to Stockholders

by Michael D. Redondo | Holland & Knight LLP on 4/4/2013

On March 15, 2013, the Delaware Court of Chancery denied motions to dismiss filed by a group of director defendants and certain affiliated funds for claims brought by a group of stockholders. The claims allege that the...more

Say Hello To My Imaginary Friend! Judge Posner, Seventh Circuit Issue Stern Warning To Plaintiffs’ Firms For Again Citing Bogus...

by William Alderman, Christin Hill, Matthew Tolve | Orrick - Securities Litigation and Regulatory... on 4/2/2013

Plaintiffs’ counsel beware: to avoid Rule 11 sanctions you might actually have to talk to “confidential witnesses” yourself and corroborate their statements before citing them in a securities fraud complaint....more

CFTC Fines $3.5 Million In FX Fraud

by Elan Mendel | Shipkevich PLLC on 3/15/2013

The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court order for more than $3.5 million in restitution and civil monetary penalties against Nicholas Trimble and his two companies, Capstone FX...more

Internal Investigation Fees Awarded To Goldman Sachs

by Mona Amer, Mark Mermelstein | Orrick - Securities Litigation and Regulatory... on 3/5/2013

On Monday, February 25, Goldman Sachs won its bid to force former director Rajat K. Gupta to pay legal fees it incurred while investigating Gupta’s insider trading activities. In October 2012, Gupta was sentenced to two years...more

Freedman v. Adams, et al., C.A. No. 4199 (Del. Jan. 14, 2013)

by Potter Anderson & Corroon LLP on 2/12/2013

In this en banc opinion, the Delaware Supreme Court affirmed the Court of Chancery’s decision in Freedman v. Adams, et al., C.A. No. 4199-VCN (Del. Ch. Mar. 30, 2012), denying the plaintiff’s motion for an award of attorney’s...more

Impac Settles RMBS Suit Brought by Citigroup for $3.1 Million

by Orrick - Structured Finance Group on 2/5/2013

On January 24, Impac Funding Corp. settled a lawsuit brought by Citigroup Global Markets Inc. alleging violations of Sections 18 and 20 of the Securities Exchange Act and negligent misrepresentation based on alleged...more

Washington Mutual Settles RMBS Suit Brought by Union Central Life Insurance Co.

by Orrick - Structured Finance Group on 1/10/2013

On December 17, 2012, two Washington Mutual affiliates settled a lawsuit brought against them by Union Central Life Insurance Co. concerning $4.3 million in Washington Mutual-sponsored RMBS purchased by Union Central....more

Baker & McKenzie: Bathurst Regional Council v. Local Government Financial Services [2012] FCA 1200

by Lewis Apostolou, Howard Fraser, Bill Fuggle, Maria Teresa Ientile, Astrid Raetze | Baker & McKenzie Australia on 12/21/2012

Summary - The Federal Court handed down its judgement in the case of Bathurst Regional Council v. Local Government Financial Services Pty Ltd (No.5) [2012] 1200. The case was a class action brought by 13 councils...more

Former Hedge Fund Founder Ordered to Pay $5 Million for Securities Law Violations

by Michael S. Gordon, Elizabeth D. Langdale | Katten Muchin Rosenman LLP on 12/13/2012

The US District Court for the Southern District of New York recently ordered the investment adviser to two hedge funds, and its managing director, to pay nearly $5 million in disgorgement, prejudgment interest and civil...more

CFTC Cracks Down On Commodity Pool Ponzi Schemes

by Elan Mendel | Shipkevich PLLC on 12/6/2012

The U.S. Commodity Futures Trading Commission (CFTC) issued a statement yesterday announcing that Judge Edward J. Lodge of the U.S. District Court of Idaho entered a permanent injunction requiring Trigon Group, Inc, to return...more

IKB Files Suit Against Morgan Stanley Over $147M in RMBS

by Orrick - Structured Finance Group on 12/4/2012

On November 16, German lender IKB Deutsche Industriebank AG sued Morgan Stanley and related entities in the Supreme Court for the State of New York for $147 million in connection with the sale of RMBS....more

Texas Court Rules that Regardless of Fault, CEOs and CFOs Will Have to Pay Up Under Sarbanes-Oxley Section 304

by Charles Ha, Ken Herzinger, Christine Louie | Orrick - Securities Litigation and Regulatory... on 11/21/2012

A Texas federal judge denied defendants ArthoCare CEO Michael A. Baker and CFO Michael T. Gluk’s motion to dismiss the SEC’s claim against them under Sarbanes-Oxley (“SOX”) Section 304’s clawback provision. Section 304...more

Phoenix Light SF and Other Investors Sue Bank of America Over $261 Million in RMBS

by Orrick - Structured Finance Group on 11/20/2012

On November 13, Phoenix Light SF Limited and other investors filed a summons with notice in the Supreme Court for the State of New York against Bank of America and various Countrywide affiliates....more

SEC Receives More Than 3,000 Whistleblower Tips in FY2012

by Leonard, Street and Deinard - Dodd-Frank and... on 11/16/2012

Over the past year, the Securities and Exchange Commission received more than 3,000 whistleblower tips from all 50 states and from 49 countries, according to the agency’s 2012 Annual Report on the Dodd-Frank Whistleblower...more

SEC Suffers Defeat in Trial Against “Break the Buck” Executives

by Jim Meyers | Orrick - Securities Litigation and Regulatory... on 11/14/2012

A federal court jury in Manhattan returned verdicts on Monday, November 12, largely exonerating the two most senior Reserve Management Company executives in a Securities and Exchange Commission enforcement action accusing...more

Court Finds Defendants Jointly and Severally Liable for Disgorgement and Prejudgment Interest Award in Ponzi Scheme Case

by Jason F. Clouser, Michael S. Gordon | Katten Muchin Rosenman LLP on 11/14/2012

The US District Court for the Northern District of New York granted the Securities and Exchange Commission’s motion for entry of final judgment and monetary relief of disgorgement and prejudgment interest against defendants...more

CFTC Sues Ex-Goldman Sachs Trader; Gets Sued by CME Group

by Shipkevich PLLC on 11/9/2012

The U.S. Commodity and Futures Trading Commission (CFTC) brought charges on Thursday against an ex-Goldman Sachs trader who they allege defrauded the bank of almost $120 million. The suit claims the former Goldman trader...more

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Securities Law › Civil Remedies › Business Torts