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Private equity (PE) investors entered the physician practice management (PPM) market in 2011, and eight years later the PPM sector continues to be a ripe middle market for PE investors looking to diversify their portfolios. However, as the healthcare market continues to change in light of increasing vertical integration between payors and providers and disruption caused by new players such as Amazon, changes may be on the horizon for PE investment in the PPM space.…
Jay Clayton, chairman of the Securities and Exchange Commission (SEC or Commission), made clear back in December 2017 that his Commission was concerned with the proliferation of crypto-assets. The SEC defines crypto-assets as “crypto-currency (e.g., Bitcoin), initial coin offering (ICO), distributed ledger technology, blockchain and/or any related products and pooled investment vehicles.” Clayton cautioned both retail investors and professional market participants to perform their diligence, including evaluating the securities law implications of transactions, on any…
Co-investment is a major topic in the private equity industry these days. General partners of private equity funds are faced with more and more demand from investors for co-investment opportunities or, at a minimum, the option to co-invest in the future. The prevalence of these arrangements has drawn the attention of the Securities and Exchange Commission, which is concerned about the implications for an investment manager’s fiduciary duty to its original fund and other investors.…
Applying the Supreme Court’s landmark decision in Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (“Halliburton II”), which allowed companies facing securities fraud class actions to defeat certification by presenting evidence that their alleged false statements did not impact the company’s stock price, the district court on remand held that Halliburton defeated class certification as to all but one of its alleged misstatements. The district court considered expert testimony from…
Co-authors:  Mark Kornfeld and Deborah Renner Editors’ Note:  This post has also been published as a BakerHostetler Client Alert. It has been 25 years since the Supreme Court announced the fraud-on-the-market presumption of reliance in Basic Inc. v. Levinson, 485 U.S. 224 (1988).  Yet many courts, including the Supreme Court itself, continue to struggle in applying the presumption to securities fraud class actions.  The Court will have another opportunity to either further clarify its position,…
Continuing the trend in the Second Circuit since the IPO decision for courts to “rigorously” determine whether class certification is appropriate, on March 27, 2012, Judge Miriam Cederbaum of the United States District Court for the Southern District of New York denied plaintiff’s motion for class certification in the putative class action brought against Freddie Mac’s CEO and CFO.  The court conducted a Daubert hearing and held that the plaintiff could not demonstrate the viability…