Does Newman Apply to Misappropriation Theory Insider-Trading Cases?

February 23, 2015
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The Second Circuit’s groundbreaking decision in United States v. Newman, No. 13-1837 (2d Cir. Dec. 10, 2014) is already having an impact on insider-trading prosecutions. On January 22, 2015, a judge in the Southern District of New York held that the Second Circuit’s landmark decision also applies to insider-trading cases brought under the “misappropriation” theory […]

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New York DFS Announces Measures to Strengthen Defenses Against Cyber Hacking

February 20, 2015
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On February 9, 2015, the New York State Department of Financial Services (“DFS”) released a report addressing cybersecurity in the New York insurance industry.  DFS also announced a series of measures it will take to help improve insurers’ defenses against cyber hacking. DFS’s Report on Cyber Security in the Insurance Sector was based on a […]

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Fed Proposes New Rule to Expand Number of Banks That Can Operate With More Debt and Announces Interim Final Rule on Reduced Reporting Requirements for S&Ls

February 18, 2015
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On January 29, 2015, the Federal Reserve Board (“Fed”) issued a proposed rule that would expand the number of small bank holding companies and savings and loans allowed to operate using a higher level of debt than large financial institutions. In addition, the Fed announced its interim final rule on reduced reporting requirements for certain […]

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D.C. District Court Denies New York AG’s Motion to Enforce $25B Mortgage Settlement Against Wells Fargo

February 17, 2015
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Calling the New York Attorney General’s motion to enforce the terms of a $25 billion mortgage settlement with five banks “penny-ante enforcement actions,” a U.S. District Court for the District of Columbia Judge denied the Attorney General’s motion finding that noncompliance allegations were insubstantial. The $25 billion settlement agreement was reached in February 2012 and […]

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CFPB Proposes Relaxing Rules for Small Mortgage Lenders

February 16, 2015
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On January 28, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a proposal that would ease the rules on small mortgage lenders to allow more community banks and credit unions to provide mortgage loans to consumers with higher debt levels. The proposal would allow qualifying lenders to provide mortgage loans to borrowers whose debt exceeds […]

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Sirius Fails to Prevail in Copyright Infringement Fight Using 1940 Case Law

February 13, 2015
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On November 14, 2014, the U.S. District Court for the Southern District of New York ruled that the owners of sound recordings made prior to 1972 have performance rights to their songs and found that satellite radio network Sirius XM had infringed copyrights held by two members of the 1960s band The Turtles. In Flo […]

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NY Supreme Court Dismisses Bank of America RMBS Suit Based on Delaware Law

February 12, 2015
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The Commercial Division of the New York Supreme Court has dismissed a shareholder suit against Bank of America, applying more stringent Delaware law to the case in which Bank of America is accused of allegedly breaching its fiduciary duty relating to the sale of residential mortgage-backed securities (“RMBS”) and Libor dealings. In his dismissal of […]

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NY Attorney General to Propose Legislation Strengthening State’s Data Security Laws

February 11, 2015
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New York Attorney General Eric T. Schneiderman announced that he will propose new legislation aimed at strengthening the state’s data security law by mandating new safeguards for protecting the personal information of consumers, broadening the scope of information that is subject to New York’s existing notification laws and incentivizing companies to meet heightened security standards […]

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Pennsylvania Court Finds That Seller’s Own Conduct Prevents Expectation of Specific Performance of a Contract

February 10, 2015
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In an action for specific performance of a real estate contract, a Pennsylvania court has ruled that an agreement cannot be invalidated on the basis of not meeting specific closing date requirements when a seller’s actions has led the buyer to believe that the date requirement would not be enforced. In Dowd v. Scenic View […]

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Second Circuit Holds Item 303 Duty to Disclose Can Form Basis of Securities Fraud Suit

February 9, 2015
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In Stratte-McClure v. Morgan Stanley, 2015 WL 136312 (2d Cir. Jan. 12, 2015), the Second Circuit Court of Appeals held that the omission of information required to be disclosed under Item 303 of Regulation S‐K (“Item 303ʺ) can serve as the basis for a securities fraud claim under Section 10(b) of the Securities Exchange Act […]

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