Limited Liability Company (LLC), Securities Fraud

Receiver for LLC Can be Bound by Operating Agreement’s Arbitration Provisions

Patton Sullivan Brodehl LLP on 10/24/2023

Courts often appoint receivers to manage the affairs of LLCs when the internal management is conflicted or broken. General equity receivers (as opposed to more limited receiverships such as deed of trust receivers) enjoy...more

LLC Members — Prepare to Identify Yourselves

Patton Sullivan Brodehl LLP on 1/23/2023

The Corporate Transparency Act (31 USC §5336) goes into effect January 1, 2024. Under the Act, most LLCs (and other entities) will need to supply basic personal identification data regarding their “beneficial owners” to...more

Advice of Counsel Defense Ruled Not Applicable in MA Securities Fraud Action

Nutter McClennen & Fish LLP on 3/8/2022

In Bertolino v. Fracassa, Judge Salinger ruled that the advice-of-counsel defense did not insulate Frederick McDonald, a defendant in the case, from liability under the Massachusetts Uniform Securities Act (MUSA), G.L. c....more

State Of Formation Does Not Define Securities Law's Jurisdiction

Allen Matkins on 7/26/2019

A common misconception is that the securities laws of an issuer's state of formation govern all offers and sales of that issuer's securities. In California, however, the application of the state's securities laws turns on...more

Investment Management Update

Ballard Spahr LLP on 10/27/2016

Investment Adviser AXA Wins Excessive Fee Trial - A federal judge in New Jersey has ruled in favor of AXA Equitable Life Insurance Company (AXA Equitable) and its wholly owned subsidiary, AXA Equitable Funds Management...more

SEC Files Action Based on Misappropriation of Pre-IPO Shares

Dorsey & Whitney LLP on 12/3/2014

The SEC filed a fraud action based on the misappropriation of shares of a private firm held by investors through an LLC. The shares were then resold and reissued to other investors. SEC v. Kumar, Civil Action No. 23145 (N.D....more