Securities Law

2nd Circuit blasts SEC for ‘regrettable inaction’ in massive Madoff fraud, but nixes victim suit

Expressing sympathy for the victims of a record-breaking Ponzi scheme by Bernard Madoff, a federal appeals court on Wednesday blasted the Securities and Exchange Commission for “regrettable inaction” in addressing the fraud but said the SEC is nonetheless protected from suit. The plaintiffs sued the SEC in 2009 under the…

Apr 10, 2013 7:26 PM CDT

SEC greenlights social media sites for company news, won’t pursue Netflix chief over Facebook post

Because the rules for corporate use of social media websites weren’t clear, the U.S. Securities and Exchange Commission won’t seek to impose regulatory sanctions on the CEO of Netflix Inc. over a Facebook post last July about the company’s booming business. But the SEC released a copy of its investigation…

Apr 2, 2013 10:23 PM CDT

Eleven Bingham partners jump to Sidley, including former FINRA enforcement chief

Eleven partners in Bingham McCutchen’s securities-enforcement group are moving to Sidley & Austin. The New York Times DealBook blog says the departures are “a blow to the Boston-based Bingham, a 1,000-lawyer firm known for its securities-enforcement work.” The practice area is a money maker for law firms offering advice to…

Apr 2, 2013 11:51 AM CDT

Law firms offer cybersecurity advice and attorney-client privilege to hacked companies

Law firms are getting involved as companies investigate hacker incidents, providing attorney-client privilege to shield the findings in future lawsuits. The Wall Street Journal (sub. req.) has a story on the trend. In one example, Nationwide Insurance hired Ropes & Gray after a hacker obtained personal details about 1 million…

Apr 2, 2013 11:00 AM CDT

Expert in legal-fee fight blasts ‘make believe’ game over cost of contract lawyers to do doc review

Even in the New York metropolitan area, the reasonable cost of hiring a contract lawyer from a staffing agency to do document review work in a securities class action case is, at most, $50 to $75 an hour, an expert said in a declaration (PDF) filed last month in federal…

Apr 1, 2013 5:38 PM CDT

Server location key to jurisdiction in international cases, US Attorney asserts

U.S. Attorney Neil MacBride of the Eastern District of Virginia is claiming jurisdiction to pursue cases against alleged international copyright pirates and out-of-state securities fraud defendants, citing the location of computer servers in his district. The Associated Press explains. MacBride says he has jurisdiction over most securities fraud cases because…

Mar 26, 2013 11:00 AM CDT

Prominent law grad and general counsel face SEC case in claimed $13.2M social media stock fraud

A prominent businessman and law graduate who once headed Oregon’s Republican party and was a candidate for state governor has been criminally charged in a securities fraud case. Craig Berkman, 71, who now lives in Florida, was arrested Tuesday at his Odessa home in a case filed by the U.S.…

Mar 19, 2013 9:50 PM CDT

Former general counsel will pay $850K to settle SEC civil backdating case

A former general counsel of Mercury Interactive Corp. who was accused of helping backdate stock options has agreed to pay $850,000 to settle the civil case filed by the Securities and Exchange Commission. Susan Skaer did not admit or deny the allegations in the SEC complaint, report the Recorder and…

Mar 18, 2013 12:44 PM CDT

Illinois is now the second state to face SEC accusations of securities fraud

The Securities and Exchange Commission has accused Illinois of misleading investors about the financial health of public employees’ pension plans. According to the SEC, the alleged problems occurred mostly during the administration of disgraced former Gov. Rod Blagojevich, now serving a 14-year prison sentence in a federal corruption case. The…

Mar 12, 2013 2:04 PM CDT

Cozen global securities chief leaps to Schiff in 3-lawyer group

The chief of the global securities practice at Cozen O’Connor has led a three-attorney group to Schiff Hardin. Ralph De Martino and F. Alec Orudjev will practice in the corporate and securities group, working out of Washington, D.C., and Cavas Pavri, practicing in the same group, will work primarily in…

Mar 11, 2013 4:50 PM CDT

Law firm billing contract lawyers at $1K hourly must reveal what they were paid, federal judge says

Ruling from the bench, a federal judge in Manhattan on Thursday gave a green light to a request for discovery by a class action activist concerning the wages paid by a law firm to the contract attorneys it billed out at $1,000 an hour. Citigroup Inc. agreed last year to…

Mar 1, 2013 7:05 PM CST

SEC can’t delay suit for late-discovered fraud; clock ticks when fraud is complete, SCOTUS says

The U.S. Supreme Court has ruled against the Securities and Exchange Commission in an appeal that contended the agency didn’t act quickly enough when it sought civil penalties against two former mutual fund advisers. The five-year statute of limitations begins to run when the fraud is complete, rather than when…

Feb 27, 2013 5:10 PM CST

Supreme Court sides with securities fraud plaintiffs, lowers class action hurdle

Plaintiffs alleging companies made material misstatements in securities fraud cases won an important ruling on the requirements for class certification from the U.S. Supreme Court on Wednesday. The court ruled in a 6-3 decision (PDF) that plaintiffs in such cases may obtain class certification without having to prove a misrepresentation…

Feb 27, 2013 3:58 PM CST

Cravath may soon have its first non-equity partner, if Mary Jo White is confirmed as SEC chair

Cravath, Swaine & Moore doesn’t have non-equity partners. But that policy apparently may soon change, if Mary Jo White is confirmed as the new chairman of the Securities and Exchange Commission. The Debevoise & Plimpton partner is married to corporate partner John White of Cravath. And, in a letter sent…

Feb 12, 2013 12:54 PM CST

K&L Gates launches Houston office with Fulbright securities practice chief

K&L Gates is the latest BigLaw firm to plant its flag in the hot Houston market. Longtime Fulbright & Jaworski partner Charles L. Strauss, who headed that firm’s securities practice group, will now help K&L Gates launch its fourth Texas office there, the firm announced in a Monday press release.…

Feb 11, 2013 3:00 PM CST