The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing on September 12, 2023, focusing on the oversight of the U.S. Securities and Exchange Commission (SEC). The hearing indicates an intensified focus in Washington DC on financial regulations, with particular attention to the operations and rules of the SEC. The Senate Committee…
In a noteworthy legal development, Judge Paul A. Crotty of the United States District Court for the Southern District of New York recently ruled on a motion for reconsideration in a securities class action. The case, Kasilingam et al. v. Tilray Inc., et al., No. 1:20-cv-03459, involves a pharmaceutical and cannabis company, along with certain…
The legal landscape is ever-evolving, and August 2023 was no exception, with several notable litigation making headlines. This article will delve into the these cases that have made wave in the corporate world. First on the docket is the Securities and Exchange Commission (SEC) v Rocha. The SEC has made headlines several times for their…
In a development that underscores the steady tightening of regulatory scrutiny, on September 11, 2023, the Securities and Exchange Commission has announced settlements with nine registered investment advisers over alleged violations of the Investment Advisers Act’s new marketing rule (Rule 206(4)-1). The cornerstone of the conflict, as per the SEC’s allegations, is the incorrect handling…
On August 25, 2023, a significant ruling emerged from the United States District Court for the District of New Jersey. The case was a putative class action asserting claims under the Securities Exchange Act against a company that supports and operates blockchain technologies, as well as certain of its executives and investors. The case, known…
The world of finance and technology is constantly colliding and producing new financial instruments. One such development is the rising trend of Non-Fungible Tokens (NFTs), a form of cryptographic token that represents a unique item or piece of content on a blockchain. A recent lawsuit involving basketball legend Shaquille O’Neal is drawing attention to the…
CMS, the global legal services organization, has successfully extended its Hong Kong capabilities by bringing aboard a team of four highly experienced lawyers. This team includes notable partner, Adrian Elms, who has over two decades of practice in Hong Kong. Adrian Elms’ previous tenure was as a counsel at DLA Piper, where he handled contentious…
In an emerging trend within the digital assets law arena, non-fungible tokens (NFTs) may be underpinning the next wave of lawsuits seeking their classification as a security. Miami attorney Adam Moscowitz, from the Moscowitz Law Firm, has expanded on a class action against NBA star Shaquille O’Neal and entities under Astrals LLC. The lawsuit centres…
In a recent judgment, the Hong Kong Court of Appeal has provided significant clarity on the scope of collective investment schemes and securities. With the case of 律政司司長 (Secretary of Justice) v. IPFUND Asset Management Limited [2023] HKCA 925 (Judgment), which has been involved in litigation since 2014, the court has underscored that substance will…
In an intriguing reveal, the touted ‘First’ AI-Based High-Yield Quant Hedge Fund might not be living up to its moniker. Not only might it not register as the absolute first, but allegations have risen suggesting that it may not even fall within the category of a hedge fund. Steeped in controversy, this Florida-based enterprise offers…
The Staff of the Division of Corporation Finance, a segment of the U.S. Securities and Exchange Commission (SEC), issued a sample comment letter on September 7, 2023. The content of the letter features possible comments that the Division may offer to companies concerning the disbursement of financial and other relevant information through an eXtensible Business…
The U.S. Securities and Exchange Commission (SEC) recently released a risk alert detailing its examinations process which focuses on investment advisers. The examinations outlined in the alert aim at assessing risks, scoping examinations, gauging the areas of focus and requesting necessary documents. This comes as an important measure considering the multitude of the SEC-registered investment…
On August 23, 2023, as part of an initiative to boost transparency for investors, the US Securities and Exchange Commission (SEC) adopted a series of noteworthy adjustments to the Rules under the Investment Advisers Act of 1940. These new and amended rules extensively alter the reporting, disclosure, and other obligations enforced on private fund investment…
The Staff of the Securities and Exchange Commission’s Division of Corporation Finance (SEC DCF) has offered additional guidance through a new Compliance and Disclosure Interpretation (C&DI) related to the Regulation AB and Related Rules C&DIs. This information correlates to the timely filing requirement for Form SF-3 eligibility, and is intended to support businesses in remaining…
In a development that represents the first of its kind, the U.S. Securities and Exchange Commission (SEC) recently announced its decision to level charges against a FinTech Investment Adviser. This marks the first recorded violation of the Marketing Rule, which consequently resulted in additional compliance violations. As reported by Seward & Kissel LLP, the Adviser…
Settling disputes with regulatory bodies such as the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) used to be simpler affairs. Corporations were expected to pay a fine and resume business with greater regard for regulatory compliance. However, this norm has dramatically evolved, and it is now not just about paying the…
In recent developments within the Environmental, Social, and Governance (ESG) market, several noteworthy events have arisen requiring the attention of legal professionals and corporate entities. This month’s ESG Market Alert includes several key issues affecting UK corporates. The creation of UK Sustainability Disclosure Standards, SEC’s substantial move towards regulating ESG disclosures with subpoenas being issued…
On February 9, 2022, the Securities and Exchange Commission (SEC) proposed a range of new rules under the Investment Advisers Act of 1940 for regulating private equity funds. This regulatory approach included private funds operating under exemptions from the Investment Company Act of 1940. A report provided by Vinson & Elkins LLP clarifies that a…
In a recent turn of events in the legal landscape of cryptocurrency, the Southern District of New York dismissed claims against a decentralized cryptocurrency trading platform. The allegations were brought forward in a putative class action, aiming to hold the platform and some of its investors liable for purportedly fraudulent transactions executed on the platform….
The United States Securities and Exchange Commission (SEC) has recently passed new rules imposing fresh requirements and obligations on the private fund industry. It is important to note that while these rules are significantly less onerous than originally proposed, they will nonetheless have implications for all private fund advisors. This includes not only registered investment…
In a landmark decision on August 10, 2023, the US Court of Appeals for the Second Circuit decertified an investor class in the case Arkansas Teacher Retirement System v. Goldman Sachs Group, Inc. The judgement has been notably recognized as adding a considerable obstruction to securities class action plaintiffs, shaking up the way such cases…
In an important ruling on August 21, 2023, the United States Court of Appeals for the Tenth Circuit upheld the dismissal of a consolidated putative class action that accused a leading aerostructures manufacturing company and some of its executives of contravening Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule…
The U.S. Securities and Exchange Commission (SEC) has escalated its attention on off-channel communications at registered firms. In the age of digital transformation, traditional means of communication have taken a back seat. Financial services companies interact with stakeholders through diverse off-channel mediums such as social media, instant messaging, email, and other digital platforms. While such…
In an era where cryptocurrency and blockchain-led endeavors continue to shape facets of finance, recent developments have again caught the world’s attention. Major companies are adopting new crypto-centric initiatives, there has been a noticeable shift in regulation, and financial standards boards are adapting to this new landscape with redefined accounting standards. These headlines are testament…
On August 23, 2023, in a significant development within the legal landscape, the United States Court of Appeals for the Second Circuit arrived at a mixed verdict on a putative securities class action against a property and casualty insurer (referred to as the “Company”). Alongside the Company, diverse corporate officers and board members, the Company’s…