Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Zachary Denver

Subscribe to all posts by Zachary Denver

Department of Justice Settles Virtual Currency Enforcement Action

Posted in Digital Assets and Virtual Currencies, Litigation
The US Attorney’s Office in the Northern District of California recently settled an enforcement action against Ripple Labs Inc., a Delaware corporation providing virtual currency exchange services. According to the settlement agreement, Ripple Labs was not registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB) pursuant to the Bank Secrecy… Continue Reading

SEC Brings First Action Against Company for Potentially Stifling Whistleblowers With Confidentiality Statement

Posted in Litigation
The Securities and Exchange Commission recently charged KBR, Inc., a Delaware corporation specializing in technology and engineering, with a Rule 21F-17(a) violation for using language in employee confidentiality statements that had the potential to stifle whistleblower activity. This was the first action of its kind taken by the SEC.… Continue Reading

District Court Holds Individual Issues of Fact Predominate in Unjust Enrichment Class Action

Posted in Litigation
The US District Court for the Eastern District of Pennsylvania recently denied class certification to a proposed class of third-party payors of prescription drugs. The plaintiffs brought a class action for unjust enrichment, claiming that Cephalon, Inc. improperly marketed a drug with limited approval by the US Food and Drug Administration (FDA), resulting in excessive… Continue Reading

Delaware Court of Chancery Restricts Board’s Ability to Subject Former Shareholders to New Bylaws

Posted in Litigation
The Delaware Court of Chancery recently held, in a case of first impression, that a non-reciprocal fee-shifting bylaw cannot be applied to a claim brought by a former shareholder who had been cashed out of the company before the bylaw was adopted. In May 2014, First Aviation Services, Inc. completed a 10,000 – 1 reverse… Continue Reading

District Court Dismisses Data Breach Case for Lack of Standing

Posted in Litigation
The US District Court for the Middle District of Pennsylvania recently dismissed a consolidated class action against Paytime, Inc. arising out of a data breach by hackers who accessed the personal and financial information of more than 230,000 individuals. The court held that the plaintiffs lacked standing. Despite the confirmed security breach, the plaintiffs had… Continue Reading

SEC Charges Chilean Citizens With Insider Trading Concerning Tender Offer for Chilean

Posted in Litigation
The Securities and Exchange Commission recently filed suit in the US District Court for the Southern District of New York, alleging that defendants, Juan Cruz Bilbao Hormaeche and Thomas Andres Hurtado Rourke, both Chilean citizens, illegally traded on material non-public information that Abbott Laboratories was interested in purchasing CFR Pharmaceuticals, S.A., a pharmaceutical company headquartered… Continue Reading

District Court Holds Video Game Company’s Optimistic Statements Are Not Actionable

Posted in Litigation
The US District Court for the Northern District of California recently dismissed a securities fraud class action against Electronic Arts, Inc. (EA) and named officers and directors, holding that optimistic statements about EA’s ability to transition to next-generation gaming consoles were mere puffery.  In early 2013, EA began development on a sequel to one of… Continue Reading

Securities Class Action Dismissed Where Information Was Publicly Available

Posted in Litigation
The US District Court for the Western District of Washington recently dismissed a securities fraud class action against Zillow, Inc. and named officers and directors, holding that the material omissions plaintiff alleged were already known to the market.  Zillow is an online real estate marketing company that derives revenue from online advertisements, including a subscription… Continue Reading