In 2008, the collapse of major lenders and investors set the fire of the global financial crisis. Recently, Wall Street announced a similar activity, its latest trillion-dollar idea that involves slicing and dicing debt tied to single-family homes and selling the bonds to investors around the world.
Transaction Advisors: The Growth of Appraisal Litigation in Delaware
An uptick in investors exercising their appraisal rights under Delaware law has gone largely unnoticed in recent years, overshadowed by increasing M&A litigation. An emerging trend reveals that hedge funds and money managers are purchasing the stock of target companies, post-deal announcement, in order to exercise appraisal rights.
The Current State of the LIBOR Scandal Investigation
The Financial Stability Board stated, in an email to Reuters on January 24, 2014, that it is “is in the process of defining the work it will do on issues around FX benchmarks.”
Proposed Law Aims to Shed Light on Settlement Deals
The Truth in Settlements Act introduced by Senators Elizabeth Warren (D-MA) and Tom Coburn (R-OK) on January 8, 2014, pushes for greater transparency of settlement agreements reached by federal agencies and corporate wrongdoers. The proposed legislation would compel federal agencies to disclose specific terms of negotiated settlements larger than $1 million and provide sufficient justification for any nondisclosure.
Lehman Court Finds Safe Harbors Protect Damage Calculation Provisions In Swap
Judge James M. Peck issued an important opinion in the Lehman Brothersbankruptcy late last month. The opinion protects a non-debtor counterparty’s right to rely on a contractually agreed methodology for damages calculations upon the liquidation of a safe harbored swap agreement—even if the debtor’s bankruptcy triggers the provision.
Judge Awards Highest Antitrust Settlement Ever In Massive Credit Card Class Action
In December of 2013, U.S. District Judge John Gleeson of Brooklyn, New York approved what is believed to be the largest antitrust settlement ever made. The case revolves around claims by merchants against Visa Inc. and MasterCard Inc. alleging that the two companies fixed merchant fees charged each time customers used credit or debit cards. The estimated $5.7 billion settlement comes amid a flurry of objections and appeal filings by thousands of retailers who believe the sum is inadequate. The amount was originally even higher—$7.25 billion and certain injunctive relief.
Hedge Fund Advertising: Why hasn’t the CFTC kept pace with SEC JOBS Act implementation?
According to hedge fund lobbyists, the Commodity Futures Trading Commission (“CFTC”) may be blocking more than $3 billion in private investment.
Hedge Funds Place More Bets on Startups
As of the past two years, tech startups became increasingly more attractive in the eyes of some very wealth suitors—hedge funds.
A recent example of this attraction is Snapchat, the popular photo-messaging startup. After refusing a $3 billion dollar buyout offer from Facebook, Snapchat received $50 million in Series C funding from Coatue Management, a hedge fund.
Revised Jurisdictional Thresholds Under the HSR Act and For the Prohibition of Interlocking Directorates
The Federal Trade Commission (“FTC”) today published a notice to revise the premerger notification thresholds for mergers and acquisitions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”). The FTC also published revisions to the thresholds that trigger, under Section 8 of the Clayton Act, a prohibition preventing companies from having interlocking memberships on their corporate boards of directors. These revisions represent the annual adjustment of thresholds based upon changes in the GNP.
FTC Adjusts HSR and Clayton Act Reporting Thresholds
Last week, the FTC adjusted the reporting thresholds for 2014 as required by the H-S-R Act. The interlocking directorate thresholds under Section 8 of the Clayton Act have also been adjusted. The adjustments will become effective 30 days after their publication in the Federal Register. The anticipated effective date is mid-February.