Securities Law

Law Giving BP Cleanup Responsibility Created ‘Cognitive Dissonance,’ Admiral Says

The admiral in charge of overseeing the response to the BP oil spill says federal laws that put the company in charge of the cleanup created a perceived conflict between the company’s duties to the public and to its shareholders. Speaking in New Orleans last week at a meeting of…

Oct 5, 2010 4:35 PM CDT

SEC Attorney on Billionaire Stanford’s Case Pleads No Contest to Resisting Arrest

Securities and Exchange Commission attorney J. Kevin Edmundson pleaded no contest this week to a misdemeanor charge of resisting arrest that stemmed from a clash with Fort Worth police officers in April 2009 that landed one officer a punch in the eye. Edmundson was given six months of deferred adjudication,…

Oct 1, 2010 11:15 PM CDT

Federal Judge Orders Class Counsel to Try for More Diverse Legal Team

A federal judge is apparently disappointed with the makeup of the legal team of two securities law firms serving as co-lead counsel in a pending class action. U.S. District Judge Harold Baer of New York issued an unusual order on Monday urging two law firms to assign at least one…

Sep 23, 2010 2:45 PM CDT

SEC Inspector General Says Timing of Goldman Case Was ‘Suspicious’

The inspector general of the Securities and Exchange Commission said Wednesday that the timing of the agency’s civil fraud case against Goldman Sachs was “suspicious.” SEC inspector general David Kotz suggested the case may have been used to divert attention from his critical report on the agency’s handling of the…

Sep 23, 2010 2:16 PM CDT

Ex-Hinshaw Partner Accused of Investor Fraud

A former partner at Hinshaw & Culbertson has been accused along with two executives of a real estate lending fund of defrauding investors who put $21 million into the fund after its sole borrower defaulted. According to the civil complaint (PDF) filed by the Securities and Exchange Commission, lawyer Todd…

Sep 22, 2010 12:45 PM CDT

Lawyer Seeks SEC Snitches in Movie Theater Ads Running with New ‘Wall Street’ Film

You don’t have to commit a crime to make major money, a New York lawyer will soon be reminding those who watch the new Wall Street film in some movie theaters. Snitching to the feds about a securities fraud at your own company can bring in the big bucks, too,…

Sep 20, 2010 5:55 PM CDT

Lawyer Toy Expert Wows TV News People, Disappoints Media Critic

Updated: Journalism can be profitable for those finding new ways to exploit the need for more information, but some media critics are questioning some of the tactics. A lawyer and self-proclaimed toy expert goes on a TV media tour, plugging toys from companies that apparently paid the company she works…

Sep 16, 2010 10:30 AM CDT

Saul Ewing Partner’s Success Advice: Meet a Lot of People and Treat Them Well

A Saul Ewing partner who is chairman of the Securities Investor Protection Corp. attributes his success to networking and his faith in God. The Washington Post interviews Orlan Johnson, an “under-the-radar dealmaker,” for a “what it takes” column. Johnson’s resumé includes an internship for the former chief executive of Beatrice…

Sep 13, 2010 3:58 PM CDT

Dissatisfied Investors, Employees Stymied by Twombly, Iqbal

Two Supreme Court rulings are helping companies fend off lawsuits by dissatisfied investors, injured plaintiffs and former employees. The two high court rulings, issued in 2007 and 2009, raised pleading requirements, making it more difficult to get cases to the discovery stage in federal court, Bloomberg reports. Both were cited…

Sep 10, 2010 10:30 AM CDT

SEC Plummets in Best Federal Workplace Rankings; DOJ Gets Ninth Place

The lawyers and other employees who work at the Securities and Exchange Commission are more dissatisfied with their jobs this year, according to new “Best Places to Work” rankings of federal workplaces. The SEC was in 11th place last year, but this year it plummeted to the 24th spot on…

Sep 1, 2010 2:53 PM CDT

For the First Time, the SEC Sues a State for Securities Fraud

The Securities and Exchange Commission has sued and settled with the state of New Jersey in the agency’s first-ever securities fraud case filed against a state. The SEC accused New Jersey of misleading bond investors about underfunded state pensions, according to stories in the Wall Street Journal, the New York…

Aug 19, 2010 12:55 PM CDT

Another Judge Refuses to Accept SEC Deal, Says She Is ‘Baffled’ by Pact

A second judge has balked at a settlement between the Securities and Exchange Commission and a major bank. This time the judge was Ellen Huvelle and the bank was Citigroup, accused of misleading investors about some $40 billion in subprime investments, according to the Washington Post, the Wall Street Journal…

Aug 17, 2010 1:11 PM CDT

$215M Suit Says Grant & Eisenhofer Hid Agreement and Took Excessive Fee from Clients

An investor in Tyco International Ltd. has turned the tables on Grant & Eisenhofer, contending in a malpractice lawsuit seeking class action status that the plaintiffs securities law firm concealed a fee agreement with the lead plaintiff in an earlier case and took an excessive payout from its own clients.…

Aug 3, 2010 11:11 PM CDT

Billionaires’ Lawyer Named By SEC in Alleged $550M Insider-Trade Scheme

A lawyer for billionaire brothers Samuel and Charles Wyly has been named, along with the two Wylys and a stockbroker, in an alleged $550 million insider-trading fraud. The defendants are accused in a Securities and Exchange Commission complaint of using offshore trusts and subsidiaries to conceal illicit trading profits from…

Jul 30, 2010 12:20 AM CDT

Small Law Firm’s Big Back Office Delayed News of Less Work, Securities Suit Contends

A high-volume Florida foreclosure practitioner has been an early adopter of a businesslike model of law practice, in which a back-office company handles much of the litigation preparation work for his law firm. Now David J. Stern is also an early example of the potential pitfalls that can arise in…

Jul 28, 2010 6:34 PM CDT