Securities Law

Research scientist pleads guilty to using information from wife’s legal work for insider trading

A research scientist pleaded guilty to securities fraud Monday for trading on information about a corporate acquisition that he had learned about through his wife’s legal work at Linklaters. Fei Yan, a research scientist at the Massachusetts Institute of Technology, stressed that his wife, Menglu Wang, had no knowledge he…

Oct 31, 2017 12:59 PM CDT

SEC alleges general counsel aided Ponzi scheme, approved misleading ads

The Securities and Exchange Commission is alleging that a corporate general counsel participated in a Ponzi scheme that targeted naïve investors in ads that sometimes ran on the Rush Limbaugh Show.

Oct 11, 2017 7:45 AM CDT

Equifax is reportedly reviewing actions of its top lawyer, who oversaw security and stock sales

Equifax’s board of directors is reportedly scrutinizing the actions of the company’s chief legal officer, John Kelley, because of two of his duties—overseeing security and approving stock sales by executives.

Oct 2, 2017 9:04 AM CDT

Oops! WilmerHale email to reporter reveals apparent SEC probe into PepsiCo GC’s departure

Updated: A misaddressed email from WilmerHale informed a Wall Street Journal reporter that the Securities and Exchange Commission was investigating the departure of PepsiCo’s general counsel.

Sep 27, 2017 10:59 AM CDT

SEC discloses hackers accessed EDGAR system and may have traded on the information

The Securities and Exchange Commission disclosed on Wednesday evening that its EDGAR corporate filing system was hacked in 2016. The hack of nonpublic information “may have provided the basis for illicit gain through trading,” the SEC said in a statement. The intrusion was detected in 2016 and the software vulnerability…

Sep 21, 2017 12:22 PM CDT

Automation guides Lexis Practice Advisor search of SEC docs

Using data mining and search term analytics, LexisNexis has made it easier to search through Securities and Exchange Commission filings. A revamp of the Lexis Practice Advisor website launched Monday using data mining techniques from securities research technology firm Intelligize. The processing aims for quicker browsing and more relevant search…

Sep 19, 2017 1:07 PM CDT

As initial coin offerings grow, so do cryptocurrency scams

Cybercriminals are finding new opportunities in blockchain investment scams. Chainalysis, a New York-based firm that makes software to protect against cryptocurrency money laundering, released numbers this week saying that scams through initial coin offerings have pushed the total cost of cybercrime to $225 million this year. According to the company,…

Sep 1, 2017 4:31 PM CDT

Securities class action filings reach high point; are weaker cases being brought?

The number of securities class action filings this year has reached the highest point since the information was first tracked in 1996. In the first six months of the year, 131 securities class actions were filed in federal court, the Wall Street Journal (sub. req.) reports, citing information from Cornerstone…

Aug 21, 2017 3:15 PM CDT

‘Pharma Bro’ Martin Shkreli convicted of securities fraud in mixed verdict

Drug company CEO Martin Shkreli--the self-described "Pharma Bro"--said he was “delighted in many ways” after he was convicted Friday on three of eight counts in a securities fraud trial he called a "witch hunt."

Aug 4, 2017 2:23 PM CDT

Jury selection in Shkreli fraud trial follows trend of favoring the uninformed

Jury selection in the fraud trial of former drug company CEO Martin Shkreli followed what has become more of a trend: Lawyers are seeking jurors who uninformed as well as unbiased. That is the conclusion of a New York Times article, which reported that potential jurors stricken from the pool…

Jul 20, 2017 8:00 AM CDT

Missing paperwork could wipe out billions in private student loan debt

One of the largest owners of private student loans is struggling to show it has the necessary paperwork to prove ownership of loans that have gone into collection.

Tens of thousands of people whose loans are held by National Collegiate Student Loan Trusts could have their debts wiped out because of the missing paperwork, the New York Times DealBook blog reports.

Jul 18, 2017 9:58 AM CDT

Husband of BigLaw associate is accused of using wife’s deal information for insider trading

The husband of a Linklaters associate in New York has been charged with insider trading for allegedly profiting from information about a corporate acquisition she had learned about at work. Fei Yan, a research scientist at the Massachusetts Institute of Technology, was accused of making about $110,000 by trading in…

Jul 13, 2017 1:26 PM CDT

Drug company founder Shkreli ordered by federal judge to stop talking to courthouse journalists

A federal judge in New York on Wednesday ordered former drug company CEO Martin Shkreli to stop talking to the courthouse media during his securities fraud trial. U.S. District Judge Kiyo Matsumoto said Shkreli has to “stop talking in the courthouse and around the perimeter of the courthouse,” report the…

Jul 5, 2017 10:45 AM CDT

Lex Machina adds commercial analytics

Law analytics platform Lex Machina has expanded its coverage to include commercial litigation. On Tuesday, the company announced that it has added more than 62,000 commercial cases filed since 2009, many in the realm of federal contract claims and business torts. The commercial module will allow users to forecast how much time it would take for a commercial case to be resolved, said Lex Machina general counsel Owen Byrd, as well as project the kinds of damages a user might be facing.

Jun 20, 2017 4:00 PM CDT

Former Foley & Lardner partner is charged with insider trading

Federal prosecutors allege a former Foley & Lardner partner accessed confidential documents on the firm’s computer network to make stock trades that reaped him more than $320,000 in profits. Prosecutors charged 43-year-old Florida lawyer Walter “Chet” Little of Apollo Beach, Florida, along with a neighbor, 49-year-old Andrew Berke, report Reuters,…

May 12, 2017 1:12 PM CDT