In a unanimous opinion yesterday, the Supreme Court limited the SEC’s ability to pursue civil penalties. The Court held that the five-year statute of limitations begins to run at the moment a fraud is committed, not when regulators become aware if it. In the case at issue, Gabelli v. SEC, the agency sued in 2008 […]
The Week in Review: SEC Litigation, Sequester Countdown and AT&T
From the Bench: Dichter-Mad Family Partners v. United States
The Ninth Circuit recently affirmed a judgment – from the Central District of California – that the victims of Bernard Madoff’s Ponzi scheme lack subject matter jurisdiction to sue the Securities and Exchange Commission as an agency of the United States under the Federal Tort Claims Act. The SEC compiled a 450-page public report highlighting […]
Crown Jewels — Restoring the Luster to Creative Deal Lock-ups?
[Editor’s note: The following post comes from Kirkland & Ellis’s recent M&A Alert by Daniel E. Wolf, David B. Feirstein, and Joshua M. Zachariah.] The “crown jewel” lock-up, a staple of high-stakes dealmaking technology in the 1980s M&A boom, has been showing some signs of life in the contemporary deal landscape, albeit often in creative […]
HUD’s New Fair Housing Rule Could Face Supreme Court Scrutiny
The Housing and Urban Development Agency (HUD) recently issued a new “disparate impact” rule – essentially codifying the main method used to prove housing and lending discrimination for the past several decades – but the timing of this move may say more than the rule itself. The new rule has come into effect while the […]
BCLBE Russian Market Conference: Cross-Border Investment
Earlier this month, the Berkeley Center for Law, Business and the Economy hosted its latest conference on the “Russian Market: Legal and Business Perspectives.” The Network extensively covered the series of speakers and panel talks, with special attention to its IP and innovation topics. This post considers international investment in the Russian market. Panelists Michael […]
CFPB Announces “Ability to Repay” Rule for Mortgage Lenders
The Consumer Financial Protection Bureau has announced a new rule (the “Ability-to-Repay rule”) requiring mortgage lenders to ensure that potential borrowers will be able to repay their mortgages. The CFPB is charged with amending Regulation Z, which carries out the Truth in Lending Act. The CFPB also implements the ability-to-repay requirements under the Dodd-Frank Wall Street […]
BCLBE Russian Market Conference: The Innovation Aspect
In a follow up to a previous post, an interesting aspect of the “Russian Market: Legal and Business Perspectives” symposium was the panelists’ discussion of Russia’s treatment of domestic and foreign businesses—and argument that it is a large stop sign for many investors. Consequently, the oil-focused government has for years ignored one of its chief […]
Professor Gadinis Comments on the Recent DOJ Suit Against S&P
The Department of Justice recently brought charges of mail fraud, wire fraud, and financial institution fraud against Standard and Poor’s Rating Service, owned by parent company McGraw-Hill. It was filed in federal court in Los Angeles. (Read full complaint here). The DOJ’s civil action against S&P calls for at least $1 billion in civil penalties, […]
Former Senior Executives Receive Lucrative Consulting Arrangements
For some senior executives at major companies, retirement does not lead to the cessation of income. Aside from pension and/or severance benefits, some retired executives are retained as consultants. The Wall Street Journal illustrates the variety of purposes former executives can serve as consultants, including relationship management, closing deals, and facilitating new executive transitions. For […]
The Week in Review: FB, BNY Mellon, and Cybersecurity
Facebook (FB) has cleared an important legal hurdle, as a S.D.N.Y. district court dismissed a lawsuit regarding its fumbled IPO last May. The plaintiffs had argued that CEO Mark Zuckerberg and other directors should be liable for selectively disclosing negative measures of the company’s performance. Judge Sweet disagreed. Unsurprisingly, a Facebook representative said they were […]