French Global Bank BNP Paribas Admits Guilt and Agrees to Pay $8.9 Billion Fine to U.S.

By James Kollar | Posted on

On Monday U.S. state and federal authorities announced a criminal case against France’s BNP Paribas, which has pleaded guilty to several U.S. sanction violations. According to the Justice Department, BNP concealed billions of dollars in transactions for clients in Cuba, Iran, and Sudan and has agreed to pay $8.9 billion in fines.

The agreement by the French bank to plead guilty is the first time that a global bank has agreed to plead guilty to large-scale violations of U.S. economic sanctions. Along with the monetary penalty that BNP must pay, the settlement includes a temporary ban on dollar-clearing transactions and the cutting of ties with some employees.

(more…)

USSC Decides Securities Fraud Class Action Case

By Nahal Bahri, J.D. Candidate 2015 | Posted on

In Halliburton Co. v. Erica P. John Fund, Inc., the Supreme Court decided a much-awaited case regarding the ability of investors to file a class action suit against a company for fraud. The Court held that “investors can recover damages in a private securities fraud action only if they prove that they relied on the defendant’s misrepresentation in deciding to buy or sell a company’s stock.”

(more…)

Is the DOJ FCPA Enforcement Hegemony Dead?

By Skadden, Arps, Slate, Meagher & Flom LLP | Posted on

For nearly 15 years, the United States has had the worldwide corruption enforcement stage to itself, reaping billions of dollars in fines and settlement payments from companies that have acknowledged engaging in bribery in foreign countries. That monopoly, however, may soon end. In a report entitled Left Out of the Bargain, the World Bank recently observed that “the country of enforcement was different from the country where the official was bribed or allegedly bribed” and that the country of enforcement has rarely shared its financial recoveries with the countries where the corruption occurred. Motivated by the potential financial recovery in a time where governments are struggling financially and aware of the financial benefit the U.S. has gained from corruption abroad, we believe that countries that have largely ignored corruption enforcement may become more active. As a result, companies may face additional punishment as multiple sovereigns pursue penalties for the same conduct.

(more…)

Is the House of Representatives Above the Law? A Look at the House Resisting the SEC’s Insider Trading Inquiry

By Roxana Guidero, J.D. Candidate 2016 | Posted on

We all expect (or, at the very least, should expect) our elected officials in Congress to follow the laws that they impose on the public, prohibitions on insider trading included.  A recent investigation by the Securities and Exchange Commission (“SEC”) into suspicious trades on Capitol Hill show that the House of Representatives (the “House”) may not agree, finding themselves to be above the laws that they create.

(more…)

Recent Study Reveals High Pervasiveness of Insider Trading

By Roxana Guidero, J.D. Candidate 2016 | Posted on

Insider trading happens.  That statement probably comes as no surprise to most.  News of traders such as Raj Rajaratnam and Rengan Rajaratnam show that insider trading occurs, is frequently prosecuted, and many inside traders face high penalties and even jail time for their illegal trades.  But just how pervasive is the practice of insider trading?  A recent study by two professors from the Stern School of Business at New York University and one professor from McGill University shows that insider trading actually occurs in a shockingly high number of transactions.  According to the study, a quarter of all public company deals appear to involve some kind of insider trading.

(more…)

When Should Vesting of Equity Grants Accelerate?

By Foley & Lardner LLP | Posted on

The importance of time-based vesting for equity and/or rights to acquire equity granted to founders and subsequent employees of venture-backed companies should not be understated. Equally important is what events should cause the agreed upon vesting schedule to accelerate. While the possible permutations for acceleration are endless, three primary flavors arise with great frequency: (i) termination by the company “other than for cause”, (ii) termination as a result of death or disability, and (iii) change of control. (more…)

Firm Insight: U.S. Supreme Court Affirms That Abstract Ideas Are Patent-Ineligible

By Wilson Sonsini Goodrich & Rosati | Posted on

In a unanimous decision, the U.S. Supreme Court affirmed the Federal Circuit’s en banc decision that petitioner Alice Corporation’s asserted patent claims are invalid for being directed to a patent-ineligible abstract idea. Applying a two-part framework, the Court held that the claims at issue are drawn to an abstract idea and that merely requiring generic computer implementation fails to transform that abstract idea into a patent-eligible invention.

Read the full article here.

Wall Street Reputation Continues to Suffer, According to Recent Study

By Roxana Guidero, J.D. Candidate 2016 | Posted on

Makovsky, a communications company, recently interviewed 225 executives from banks, credit card companies, mutual funds, and other financial services providers about their outlook on Wall Street.  The study showed that “81% of Financial Service companies continue to struggle with reputational and customer service issues stemming from the financial crisis six years ago.” (more…)

Eighth Circuit Allows NFL Collusion Case to Move Forward

By Nahal Bahri, J.D. Candidate 2015 | Posted on

On Friday, the U.S. Court of Appeals for the 8th Circuit approved a case brought by the National Football League Players’ Association alleging collusion against the National Football League for capping salaries in 2010.

(more…)