The U.S. Securities and Exchange Commission's enforcement director Gurbir Grewal took responsibility Thursday for his agency's sanctioned actions in a lawsuit against crypto project Debt Box, saying that the case did not represent the agency "at our best" but was not a sign that there were any widespread problems with the way it conducts its enforcement proceedings. 
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TOP NEWS

'Not Us At Our Best:' SEC's Top Cop Talks Debt Box Error

By Jessica Corso

The U.S. Securities and Exchange Commission's enforcement director Gurbir Grewal took responsibility Thursday for his agency's sanctioned actions in a lawsuit against crypto project Debt Box, saying that the case did not represent the agency "at our best" but was not a sign that there were any widespread problems with the way it conducts its enforcement proceedings. 

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SEC Opens Gate To Ether ETFs, But Firms Await Green Light

By Aislinn Keely

The U.S. Securities and Exchange Commission started the process of bringing exchange-traded funds holding the cryptocurrency ether to market on Thursday when it approved a series of filings permitting national securities exchanges to list the products, leaving firms to wait for the next step before trading can begin.

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JP Morgan Inks $200M CFTC Deal Over Supervision Failures

By Lauren Berg

J.P. Morgan Securities LLC on Thursday agreed to pay a $200 million civil penalty to resolve charges from the U.S. Commodity Futures Trading Commission accusing the investment management company of more than a decade of trade surveillance failures, including failing to capture billions of orders on one venue.

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Wow Such Basic: Justices Back Crypto Fans In Dogecoin Duel

By Jeff Overley

It's up to judges, not arbitrators, to figure out whether contracts between businesses and consumers have subtly superseded earlier agreements to hash out disputes in arbitration rather than litigation, the U.S. Supreme Court ruled Thursday.

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Ex-Autonomy CEO Lynch Takes Stand In 'Surreal' Fraud Trial

By Bonnie Eslinger

Autonomy founder Michael Lynch took the stand Thursday in a criminal trial in California federal court over claims he lied to HP about his software company's financial health before the tech giant paid $11.7 billion for it in 2011, saying the trial has been "surreal" and he didn't set out to defraud HP.

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FirstEnergy Wants 6th Circ. To Shield Bribe-Probe Docs

By Jessica Corso

FirstEnergy Corp. is pursuing the Sixth Circuit's input into its request to shield internal investigative documents from a class of investors and from two of its indicted former executives, saying the documents contain privileged legal advice given in the wake of a $1 billion bribery scandal.

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7th Circ. Unsure VIX-Fix Claims Were Wrongly Tossed

By Lauraann Wood

The Seventh Circuit seemed unsure Thursday that two investment companies should be allowed to pursue volatility index manipulation claims against Barclays, Morgan & Stanley Co. and other financial institutions after a lower court found that one lacked standing and the other missed a statutory deadline.

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POLICY & REGULATION

House Passes Bill To Block Fed-Issued Digital Dollar

By Aislinn Keely

The U.S. House of Representatives on Thursday passed a bill that would prohibit the Federal Reserve from issuing a digital dollar in a vote that fell starkly along party lines, with Democrats decrying the bill as fearmongering over privacy concerns and a departure from the previous day's bipartisan passage of a regulatory framework for digital assets.

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PROXY SEASON

Governance In Focus As ESG Gains Ground This Proxy Season

By Sarah Jarvis

Support for corporate governance and compensation shareholder proposals has reached a five-year high this year, while support for environmental and social proposals has risen slightly after two years of decline, according to a new report.

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CRYPTO & FINTECH

Influencer Can't Duck SEC Suit Over Crypto Sale, Promotion

By Sydney Price

The U.S. Securities and Exchange Commission scored a partial win in a Texas federal court case in which the agency accused an influencer of unlawfully reselling and promoting cryptocurrencies to followers on social media, with a judge finding the tokens were unregistered securities and the promoter could not escape liability in the lawsuit.

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FTX Judge Declines To Undo Ch. 11 Digital Claim Estimation

By Vince Sullivan

The judge overseeing the Chapter 11 case of cryptocurrency exchange FTX Trading Ltd. on Thursday denied a request to vacate an earlier ruling allowing the debtor to estimate the claims of creditors holding digital assets based on their petition date value, saying the party seeking to undo the order had not provided any new evidence to justify the action.

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Feds Score Discovery Pause In SEC Suit Against CoinDeal

By Katryna Perera

A Michigan federal judge on Thursday granted the federal government's motion to intervene and stay discovery in a U.S. Securities and Exchange Commission suit alleging a group of individuals and businesses duped investors out of more than $45 million through a CoinDeal investment fraud scheme.

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CIVIL ENFORCEMENT

Ex-Fund Manager Settles SEC's $264M Offering Fraud Claims

By Emilie Ruscoe

A former private fund manager has agreed to pay $250,000 to resolve U.S. Securities and Exchange Commission claims he violated securities fraud laws by making promises that funds he handled would invest almost $264 million that they did not actually have on hand in issuers, including two special purpose acquisition vehicles.

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WHITE COLLAR

Archegos Witness Admits Lying To Exec Charged In Collapse

By Pete Brush

An Archegos manager who pled guilty to fraud and is cooperating with prosecutors conceded to a Manhattan federal jury Thursday that he fostered an effort to mock his former boss and hide information before the hedge fund's $36 billion collapse.

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DELAWARE

Resignation Letter Bylaws Targeted In Five Del. Class Actions

By Leslie A. Pappas

General Motors Co. is among the latest targets of new bylaw-focused litigation from Abbott Cooper PLLC and Block & Leviton LLP, one of five companies in a series of lawsuits in Delaware's Chancery Court that seek to invalidate an "irrevocable resignation requirement" in company bylaws.

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'New' Facts Don't Permit Do-Over, Kraft-Heinz Tells Chancery

By Leslie A. Pappas

An institutional shareholder of The Kraft-Heinz Co. is not entitled to a "do-over" on an insider trading lawsuit that Delaware's Court of Chancery dismissed in 2021 because the supposed "new evidence" it offers isn't actually new and wouldn't have made any difference in the case, the company said Thursday.

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Ex-Bank CEO Cops To Embezzling $47M To Pay Crypto Scam

By Gina Kim

Heartland Tri-State Bank's former chief executive pled guilty Thursday in Kansas federal court to embezzling $47 million that he wired to cryptocurrency accounts controlled by fraudsters after falling victim to a "pig butchering" scam, which led to the bank's collapse and subsequent shutdown last summer.

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INVESTOR ACTIONS

AdTech Co. Faces Suit As Google's Cookie Support Crumbles

By Emilie Ruscoe

Advertising company Direct Digital Holdings Inc. faces a proposed investor class action alleging it mismanaged its response to an impending major technological change affecting how digital advertisers can target consumers.

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NY Top Court Revives FanDuel Investors Suit

By Elliot Weld

New York's top appeals court on Thursday revived a suit brought by FanDuel investors who claim they were deprived of profits from a merger, disagreeing with a lower court's interpretation of Scottish law.

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Apple Investor Again Seeks Green Light For $490M Settlement

By Emilie Ruscoe

An Apple Inc. investor has asked a California federal judge to revisit a $490 million settlement deal that would end claims the tech giant misled investors about iPhone sales in China, telling the court that it had addressed the judge's critique that parts of the relevant filings were "convoluted."

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Big Banks Hit With Claims Of Turning Man Into 'Money Mule'

By Spencer Brewer

A wealthy Texas entrepreneur says Morgan Stanley, Merrill Lynch, Charles Schwab and Deutsche Bank turned him into a "money mule" by using his accounts to launder billions of dollars over multiple decades, alleging a conspiracy also involving his family and a prominent lawyer that cost him millions.

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DEBT LITIGATION

Investors Lose $600M Mass Claim Over Cyprus Bank Failures

By Joyce Hanson

The Republic of Cyprus said Thursday that an international arbitral tribunal has dismissed an unprecedented $600 million mass claim by Greek depositors and bondholders affected by the restructuring of Laiki Bank and Bank of Cyprus.

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DEALS LITIGATION

Wiz Khalifa Settles Suit Over Cannabis Venture

By Jonathan Capriel

Rapper Wiz Khalifa has settled a lawsuit filed by the co-owner of his cannabis enterprise who claimed he was cut out of a $20 million deal to license the artist's name and likeness to promote cannabis products.

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EMPLOYMENT

TRO Against Ex-TD Bank Employees Revised

By Sydney Price

A federal judge in Connecticut walked back part of a temporary restraining order against ex-TD Bank employees accused of siphoning $25 million in business to Raymond James Financial, saying the previous order may have been more restrictive than necessary.

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EXPERT ANALYSIS

2 Oil Trader FCPA Pleas Highlight Fine-Reduction Factors

Recent Foreign Corrupt Practices Act settlements with Gunvor and Trafigura — the latest actions in a yearslong sweep of the commodities trading industry — reveal useful data points related to U.S. Department of Justice policies on cooperation credit and past misconduct, say Michael DeBernardis and Laura Perkins at Hughes Hubbard.

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The State Of Play In DEI And ESG 1 Year After Harvard Ruling

Almost a year after the U.S. Supreme Court decided Students for Fair Admissions v. Harvard, attorney general scrutiny of environmental, social and governance-related efforts indicates a potential path for corporate diversity, equity and inclusion initiatives to be targeted, say attorneys at Crowell & Moring.

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LEGAL INDUSTRY

Analysis

Biden's Judicial Impact And What's Left On The Wish List

By Courtney Bublé

President Joe Biden secured confirmation of his 200th federal judge Wednesday and has transformed the judiciary by picking more women and people of color than any other president. But the upcoming election season could derail his hopes of confirming many more judges.

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Meet Biden's Latest Pennsylvania Picks For District Court

By P.J. D'Annunzio & Matthew Santoni

President Joe Biden has continued his trend of nominating public defenders to the federal bench, this time selecting two longtime defense attorneys to occupy vacancies in Pennsylvania.

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DOJ's Live Nation-Ticketmaster Suit: What You Should Know

The U.S. Department of Justice and a slew of state attorneys general filed a suit challenging the 2010 merger of Ticketmaster and Live Nation. Here, catch up on Law360's coverage of the deal and those who have challenged it along the way – Taylor Swift fans, investors and regulators.

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Exiled Chinese Businessman Is No $1B Fraudster, Jury Told

By Stewart Bishop

Exiled Chinese businessman and purported billionaire Guo Wengui ran legitimate companies in support of a broad movement that opposed the Chinese Communist Party, his attorney told a Manhattan federal jury Friday, rather than what prosecutors say was a multifaceted $1 billion fraud.

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Menendez, Kasowitz Firm Spar Over Subpoena To Cooperator

By Elliot Weld

Amid his bribery trial, U.S. Sen. Robert Menendez of New Jersey is urging a Manhattan federal judge to order a government cooperator to turn over communications involving his current counsel at Kasowitz Benson Torres LLP and his former attorneys.

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McElroy Deutsch Seeks Win Against Ex-CFO After Guilty Plea

By Rose Krebs

McElroy Deutsch Mulvaney & Carpenter LLP is urging a New Jersey state court to order its former chief financial officer to pay roughly $1.5 million damages for "unauthorized compensation" he paid himself and force him to disgorge $5.4 million in pay he received from the firm.

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Ex-DOJ Atty Clark Says He Was Denied A Fair Ethics Hearing

By Alison Knezevich

Former Justice Department official Jeffrey Clark was denied a fair hearing in his Washington, D.C., ethics case and should not face punishment, he told an attorney disciplinary committee in a Thursday filing.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

Antitrust law took center stage this week as college general counsel try to figure out the what and how of paying student athletes under a new court ruling, and the U.S. Department of Justice is trying to break up the entertainment venue dominance of Live Nation and Ticketmaster.

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UK Litigation Roundup: Here's What You Missed In London

By Max Austin

This past week in London has seen an IT engineer seek permission to search a landfill hiding a hard drive supposedly storing millions of pounds in bitcoin, Glencore take on legal action by American Century Investments, gold payment app Glint bring a breach of duty claim against FRP Advisory, and an ongoing dispute between a solicitor and the Solicitors Regulation Authority. Here, Law360 looks at these and other new claims in the U.K.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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Using A Children's Book Approach In Firm Marketing Content

From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.

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Promo that reads Law360 2024 Titans of the Plaintiffs Bar Promo that reads Law360 Pulse 2024 AI Survey

LAW FIRMS IN TODAY'S NEWS

A&O Shearman

Abbott Cooper PLLC

Baker & Hostetler

Bartlit Beck

Bathaee Dunne

Beatty Navarre

Bird Marella

Block & Leviton

Bragar Eagel

Burnham & Gorokhov

Cafferty Clobes

Caldwell Carlson

Clifford Chance

Clyde & Co

Cooley LLP

Crowell & Moring

Curtis Mallet-Prevost

DWF LLP

Davidoff Hutcher

Davis Polk

Dickie McCamey

Duane Morris

Elsberg Baker

Eversheds Sutherland

Fieldfisher

Fish & Richardson

Fisher & Phillips

Foley & Lardner

Fox Rothschild

Fox Williams

Frankfurt Kurnit

Friedlander & Gorris

Friedman Kaplan

Gateley PLC

Gellert Scali

Grant & Eisenhofer

Greenberg Traurig

Hamlins LLP

Harris St. Laurent

Hill Dickinson

Hogan Lovells

Holland & Knight

Horwich Farrelly

Howes Percival

Hughes Hubbard

Hunton Andrews

JMW Solicitors LLP

Jones Day

K&L Gates

Kasowitz Benson

Katten Muchin

KaurMaxwell

Kendall Law Group PLLC

Kessler Topaz

King & Spalding

Kirby McInerney

Kirkland & Ellis

Kobre & Kim

Korein Tillery

Kramer Levin

Labaton Keller

Landis Rath

Latham & Watkins

Littler Mendelson

Marino Tortorella

McDonald & MacGregor

McElroy Deutsch

McKool Smith

Michael Best & Friedrich LLP

Murray Murphy

Orrick Herrington

Pallas Partners

Paul Hastings

Paul Weiss

Penningtons Manches

Poole Huffman

Potter Anderson

Potter Clarkson

Proskauer Rose

Pryor Cashman

Quinn Emanuel

Reed Smith

Robbins Geller

Rosen Hagood

Saporito Falcone

Scott&Scott

Spencer Fane

Squire Patton

Steptoe LLP

Sullivan & Cromwell

Tucker Ellis

VanOverbeke Michaud

Vinson & Elkins

Welsh & Recker

Wilkin Chapman

Williams & Connolly

WilmerHale

Winston & Strawn

Withersworldwide

Zuber Lawler

COMPANIES IN TODAY'S NEWS

3G Capital

AXA SA

AXA XL Ltd.

Academy Sports & Outdoors Inc.

Alcoa Corp.

Amazon.com Inc.

Apple Inc.

Atlantic Global Insurance Services

Avolon Holdings Ltd.

Bank of America Corp.

Bank of Cyprus Holdings PLC

Barclays PLC

Bayerische Motoren Werke AG

BlackRock Inc.

Boehringer Ingelheim

Boehringer Ingelheim Vetmedica Inc.

British Broadcasting Corp.

Cboe Global Markets Inc.

Coinbase Global Inc.

Defender Association of Philadelphia

Deloitte Touche Tohmatsu Ltd.

Deutsche Bank AG

EMCOR Group Inc.

Ethereum GmbH

Evolent Health Inc.

Exxon Mobil Corp.

FanDuel Inc.

Ferrari SpA

Financial Industry Regulatory Authority Inc.

First Bank (Hamilton, NJ)

FirstEnergy Corp.

Ford Motor Co.

Fordham University

Franklin Resources Inc.

GXO Logistics Inc.

General Dynamics Corp.

General Motors Co.

Gilardi & Company LLC

Glencore PLC

Google LLC

HSBC Holdings PLC

Heartland Tri-State Bank

Hewlett Packard Enterprise Co.

Honeywell International Inc.

Icertis Inc.

Integrys Energy Group Inc.

International Centre for Settlement of Investment Disputes

Invesco Ltd.

JPMorgan Chase & Co.

Jubilee Holdings Ltd.

KKR & Co. Inc.

Knife River Corp.

Live Nation Entertainment Inc.

Major Lindsey & Africa LLC

Mediterranean Shipping Co. SA

Mercedes-Benz USA LLC

Meta Platforms Inc.

MilliporeSigma

Mondelez International Inc.

Morgan Stanley

NASDAQ Inc.

NBCUniversal Media LLC

National Collegiate Athletic Association

New York Football Giants Inc.

Norfolk Southern Corp.

Pac-12 Enterprises LLC

Paddy Power Betfair PLC

Paysafe Group PLC

Pegasus Capital Advisors LP

Peloton Interactive Inc.

PetroChina Company Limited

Petrobras

QBE Insurance Group Ltd.

Raymond James Financial Inc.

SentinelOne Inc.

Shamrock Capital Advisors LLC

Solicitors Regulation Authority Ltd.

Space Exploration Technologies Corp.

Swissport International Ltd.

Tesla Inc.

The Charles Schwab Corp.

The District of Columbia Bar

The Goldman Sachs Group Inc.

The New York Times Co.

Toronto-Dominion Bank

Trafigura Group Pte. Ltd.

University of Virginia

Wells Fargo & Co.

YouTube Inc.

Zuora Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Commodity Futures Trading Commission

Companies House

Delaware Court of Chancery

Equal Employment Opportunity Commission

European Central Bank

European Commission

European Union

Federal Bureau of Investigation

Federal Deposit Insurance Corp.

Federal Reserve System

International Monetary Fund

National Labor Relations Board

Office of the Comptroller of the Currency

Ohio House of Representatives

Ontario Securities Commission

U.S. Attorney's Office for the District of Kansas

U.S. Attorney's Office for the Eastern District of Michigan

U.S. Attorney's Office for the Northern District of California

U.S. Attorney's Office for the Southern District of New York

U.S. Bankruptcy Court for the District of Delaware

U.S. Court of Appeals for the Fifth Circuit

U.S. Department of Commerce

U.S. Department of Justice

U.S. District Court for the District of Columbia

U.S. District Court for the District of Connecticut

U.S. District Court for the District of Nebraska

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Eastern District of Texas

U.S. District Court for the Middle District of Pennsylvania

U.S. District Court for the Northern District of California

U.S. District Court for the Southern District of New York

U.S. District Court for the Western District of Texas

U.S. Environmental Protection Agency

U.S. Government Accountability Office

U.S. House of Representatives

U.S. Postal Service

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the District of Kansas

United States District Court for the Southern District of Ohio

World Bank Group