Securities Law Commons^™

A Corporation's Securities Litigation Gambit: Fee-Shifting Provisions That Defend Against Fraud-On-The-Market, Steven W. Lippman

University of Richmond Law Review

Part I discusses the current landscape of securities class action litigation. It explains how and why the suits are initiated and dis­ cusses the outcome of Halliburton Co. v. Erica P. John Fund, Inc. (HalliburtonII).19 PartII discusses the framework for the proposi­tion of this comment. It provides a brief history of significant cas­ es and incorporates several recent cases that have opened the door to the possibility of implementing fee-shifting clauses. It concludes with a comparison to other contractual provisions cur­ rently being implemented by corporations and also analyzes fee­ shifting provisions under federal preemption. Part III explains why implementing …

Enhancing The Compensatory Roles Of Financial Regulatory Agencies In South Korea: Lessons From The U.S. Sec's Fair Fund, Daeil Kim

Maurer Theses and Dissertations

Recent financial scandals in South Korea that caused massive harms to financial consumers instigated voices that financial regulators should play a more active role in recompensing victims for losses incurred by misconduct in the financial market. In this regard, this thesis aims to suggest several considerations in developing the compensation scheme for injured financial consumers in Korea. This thesis first reviews the Federal Account for Investor Restitution (FAIR) Fund operated by the U.S. Securities and Exchange Commission. Specifically, it broadly addresses the history, overall process, operation, and major issues related to the FAIR Fund. Based on the FAIR Fund review, …

Summary Of Munoz V. Branch Banking & Trust Co., 131 Nev. Adv. Op. No. 23 (Apr. 30, 2015), Michael S. Valiente

Nevada Supreme Court Summaries

NRS 40.459(1)(c)’s limitation on the amount of deficiency judgment that a successor can recover conflicts with the federal Financial Institutions Reform, Recovery and Enforcement Act’s (“FIRREA”) purpose of facilitating the transfer of assets of failed banks to other institutions. Because NRS 40.459(1)(c) limits the value a successor can recover on a deficiency judgment, its application to assets transferred by the Federal Deposit Insurance Corporation (“FDIC”) frustrates FIRREA’s purpose. Therefore, NRS 40.459(1)(c) is preempted by FIRREA to the extent that NRS 40.459(1)(c) limits deficiency judgment that may be obtained from loans transferred by the FDIC.

International Tax Free Exchanges: The Structure Of I.R.C. Section 367, Vikram A. Gosain

Georgia Journal of International & Comparative Law

No abstract provided.

Diverse Mandates Regarding The Esop Diversification Requirement Following Fifth Third Bancorp V. Dudenhoeffer, Thomas V. Bohac Jr.

Notre Dame Law Review Reflection

In Dudenhoeffer, the Court focused on the Employee Stock Ownership Plan (ESOP) as a retirement benefit plan. However, this is only one function of ESOPs. Viewed in terms of both the original intent of Congress and contemporary corporate finance, the ESOPs are designed to meet several goals, including the alignment of employee and employer interests to facilitate a wider base of capital ownership including the average employee. As the Court has lost sight of these fundamental goals, it has drifted into the fallacy of interpreting ESOPs principally as employee retirement accounts. This has led the Court to apply ERISA fiduciary …

Ripe For Refinement: The State’S Role In Interpretation Of Fet, Mfn, And Shareholder Rights, Lise Johnson

Columbia Center on Sustainable Investment Staff Publications

Over recent years, many states have taken steps to refine and modernize their investment treaties. These reforms, however, are typically only included in newer treaties or model agreements. States continue to be exposed to claims, litigation, and potential damages under older “old-style” agreements. These risks are particularly acute given that tribunals have often permitted investors to “treaty shop” to obtain more favorable protections, and have also permitted investors to use the most-favored nation (MFN) provision to “import” more investor-friendly (or at least less clear) provisions from other treaties.

This working paper discusses one strategy states can use to try to …

Crowdfunding Human Capital Contracts, Max Vogel

Cardozo Law Review

No abstract provided.

Eyes Wide Shut On Isds, Lisa E. Sachs, Lise Johnson

Columbia Center on Sustainable Investment Staff Publications

Recent agreement among congressional leaders on a “fast-track” bill may have been a victory for the Obama administration’s trade agenda. However, members of congress should take a look at the recent Bilcon case, decided by a NAFTA tribunal, to understand what they are signing up for.

Midnight In The Garden Of Ne Bis In Idem: The New Urgency For An International Enforcement Mechanism, Thomas J. Bussen

Cardozo Journal of International and Comparative Law

The article examines the challenges posed by the global proliferation of antibribery laws, particularly the Foreign Corrupt Practices Act (FCPA) and similar international laws, which have led to overlapping prosecutions of multinational companies (MNCs) for the same offenses. This phenomenon, termed "da mihi quoque" or "me too" prosecutions, results in significant financial and reputational costs for companies. The article argues that while these laws aim to combat corruption, their broad jurisdictional reach and uneven enforcement may inadvertently harm economic opportunities and governance systems in developing countries. It advocates for a more coordinated and balanced approach to enforcement to address these …

Chinese Companies And U.S. Class Actions: Securities Litigation And Product Liability, Geoffrey Sant, Charles M. Yablon, Stephen A. Radin, Kayvan Sadeghi, Christopher A. Seeger, Richard H. Silberberg

Cardozo Journal of International and Comparative Law

The symposium examines the challenges Chinese companies face when navigating U.S. class actions and corporate governance rules, emphasizing the importance of understanding jurisdictional complexities, cultural differences, and legal strategies to mitigate risks. It highlights how Chinese companies must adapt to U.S. legal standards to compete globally while addressing enforcement difficulties and settlement dynamics. The analysis underscores the need for transparency, internal controls, and strategic legal counsel to manage these challenges effectively.

Sub-Adviser Fee Litigation: Will Section 36(B) Acquire Teeth?; Outside Counsel, Francis J. Facciolo, Leland S. Solon

Faculty Publications

(Excerpt)

Section 36(b) of the Investment Company Act establishes a private breach of fiduciary duty cause of action for shareholders in an investment company, or mutual fund, to challenge the fees charged by the mutual fund’s investment adviser, in recognition of the fact that the adviser or one of its affiliates customarily creates the mutual fund and has a great deal of influence over the composition of the mutual fund’s board of directors or trustees, which negotiates the fees paid to the investment adviser. Under the Gartenberg standard, which was substantially adopted by the Supreme Court in Jones v. Harris …

Keeping Casinos Clean: The Problem With Dirty Money And International Differences In Anti-Money Laundering Regulations For Casinos, Kerry E. Kleiman

UNLV Gaming Law Journal

No abstract provided.

Adding A Due Diligence Defense To § 13(B) And Rule 13b 2 – 2 Of The Securities Exchange Act Of 1934, Michael Evans

Washington and Lee Law Review

No abstract provided.

Superior Supererogation: Why Credit Default Swaps Are Securities Under The Investment Advisers Act Of 1940, J. Tyler Kirk

William & Mary Business Law Review

No abstract provided.

Better Go It Alone: An Extension Of Fiduciary Duties For Investment Fund Managers In Securities Class Action Opt-Outs, Brian J. Shea

William & Mary Business Law Review

Securities class actions provide a vehicle for plaintiffs to recover billions of dollars in settlement awards. Given the prevalence of institutional investors in the market for publicly traded securities, it is no surprise that large investment funds are often implicated as lead plaintiffs in securities class actions. Despite having recoverable claims in many of these settlements, these investment funds often fail to participate in the action on behalf of their beneficiaries (their investors). Some scholars argue that fund managers have a fiduciary obligation to participate in claim filing and monitoring processes in an effort to recover settlement awards and to …

Securities Regulations Investigations - United States-Swiss Treaty Attempts To Increase Cooperation In Releasing Names Of Swiss-Based Account Holders Involved In United States Securities And Exchange Commission Investigations, Daniel B. Simon Iii

Georgia Journal of International & Comparative Law

No abstract provided.

Tax Reform Act Of 1984 - Netherlands Antilles - Effect Of The Repeal Of The Withholding Tax On Portfolio Interest Payments To Foreign Investors, Lee C. Dilworth

Georgia Journal of International & Comparative Law

No abstract provided.

The Great And Powerful Faa: Why Schwab’S Class Action Waiver Should Have Been Enforced Over Finra’S Rules, Clint Hale

Pepperdine Law Review

This Comment argues that recent Supreme Court precedent, circuit court decisions in contexts similar to FINRA’s oversight of the securities industry, and investors’ true interests all instruct that Schwab’s class action waiver should have been enforced over FINRA’s contrary command. Part II discusses FINRA’s role in the securities industry, the FAA and recent Supreme Court precedent interpreting the FAA, and the FINRA Rules that Schwab’s class action and joinder waiver violated. Part III analyzes why the conflict between the FAA and FINRA’s rules should have been resolved in favor of the FAA and supports this argument with discussion of federal …

Fraud Is Already Illegal: Section 621 Of The Dodd-Frank Act In The Context Of The Securities Laws, Nathan R. Schuur

University of Michigan Journal of Law Reform

In the aftermath of the financial crisis, lawmakers and the public focused on abuses in the securitization industry. Abacus, a Synthetic CDO created by Goldman Sachs & Co., became a symbol of what many felt was a corrupt system when it became known that Goldman and Fabrice Tourre, a Vice President at its Correlation Trading Desk, had assisted a hedge fund in designing the security to fail. Perceived failings of the securities laws to prevent transactions like Abacus spurred Congress to enact Section 621 of the Dodd-Frank Act, which prohibits conflicts of interest in asset-backed securitizations. But the law is …

Rethinking Regulation Fair Disclosure And Corporate Free Speech, Susan B. Heyman

Cardozo Law Review

In a significant departure from the disclosure regime created by the insider trading rules of the Securities and Exchange Act of 1934 (Exchange Act), Regulation Fair Disclosure (Reg FD) forces publicly traded companies to make simultaneous public disclosure of any information they make available to analysts or institutional investors. The rule gives issuers a choice: make public disclosure or don't disclose to anyone. Reg FD targets the transmission of information, rather than any actual trading based on that information. Unlike the insider trading rules, Reg FD is not an anti-fraud provision and the government can assert a claim without establishing …