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Going Public Through the Back Door
What do you get when you pair a publicly traded but bankrupt company with a private, solvent one that can't go public due to market conditions? A perfect match. Such matches involving reverse mergers, once viewed as limited to shady operators, have become an increasingly common way for companies to gain access to public markets.Brown Rudnick Faces Allegation Of Malpractice in Stock Sale
Brown Rudnick Faces Allegation of Malpractice in Stock Sale
Brown Rudnick Berlack Israels is facing legal malpractice and fraud claims arising from the work of a New York partner who held a substantial financial interest in a client company. The suits allege that the partner, motivated by a personal stake in the company worth up to $500,000, advised the company to pursue a $2.5 million private stock sale to an investor, a sale that violated federal securities laws. One suit seeks more than $10 million in damages, the other more than $25 million.2nd Circuit Says Adviser's Knowledge of Bayou Hedge Fund Fraud Not Proven
An adviser on investing in hedge funds cannot be sued for securities fraud for recommending a fund that later turned out to be a Ponzi scheme, the 2nd U.S. Circuit Court of Appeals has ruled in a closely watched case. The circuit found that the requirement of scienter was not met in the pleadings against an adviser who steered a client to Samuel Israel III and other founders of the Bayou funds group that later bilked investors out of more than $400 million.Attorney Ineligibility Order Pursuant to Rule 1:28-2(a)
Notice to the bar.Manhattan federal district court judge Leonard Sand ruled that a former TradingScreen employee could beat back the company's motion to dismiss his whistleblower suit if he amended his complaint to plead that investigators at Latham & Watkins had passed his allegations on to the SEC.
In an early test of anti-whistleblower retaliation provisions in the Dodd-Frank Act, a Manhattan federal district court judge on Monday dismissed a suit against TradingScreen Inc. that claimed the company violated securities laws and retaliated against a former employee.
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