Latest Articles

Cybersecurity and data breach risk were prominent subjects at the 35th Annual Ray Garrett Corporate and Securities Law Institute held on April 30, 2015 at Northwestern Law School in Chicago. Reed Smith partner Mark Melodia, along with several other panelists, engaged in a lively discussion of effective board oversight of cybersecurity challenges facing their companies during a panel addressing Cybersecurity and Data Breach: The New Reality for Directors and Those Who Advise Them. Notably, this…
Cybersecurity and the risks of data breaches figured prominently at the 35th Annual Ray Garrett Corporate and Securities Law Institute held April 30, 2015, at Northwestern Law School in Chicago. Participating in a panel addressing Cybersecurity and Data Breach: The New Reality for Directors and Those Who Advise Them, Reed Smith partner Mark Melodia and several other panelists engaged in a wide-ranging discussion of effective board oversight of cybersecurity challenges facing their companies. Notably, this…
This post was also written by C. Neil Gray. On June 23, 2014, the Supreme Court of the United States issued its much-anticipated decision in Halliburton Co., et al. v. Erica P. John Fund, Inc., No. 13-317 (2014). The Court vacated and remanded the decision of the United States Court of Appeals for the Fifth Circuit refusing to allow Halliburton to rebut the Basic Inc. v. Levinson, 485 U.S. 224 (1988), presumption of reliance…
Supreme Court vacates and remands in Halliburton.  United States Supreme Court declines to overturn Basic, but decides that defendants can rebut the presumption of reliance – before class certification – by showing a lack of price impact.  Watch this space for a full analysis.…
On May 20, 2014, the Commodities Futures Trading Commission (CFTC) announced an award of $240,000 to an anonymous whistleblower who provided “valuable information” concerning unexplained Commodity Exchange Act violations by an unidentified entity or person.  The award was the first issued under the CFTC Whistleblower Program created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The CFTC press release claimed that the award illustrates the value of the Whistleblower Program in…
The United States Supreme Court yesterday heard oral argument in Halliburton Co. v. Erica P. John Fund, Inc. In that much-watched case, Halliburton asks the Court to overrule the fraud-on-the-market theory of reliance in securities fraud cases established by the Court’s decision in Basic v. Levinson, or, at least, to adopt a modification that would permit defendants in securities class actions to rebut the presumption at the class certification stage. Halliburton contends, among other arguments,…
In a reversal of course, the Commodities Futures Trading Commission’s Division of Enforcement has confirmed that it will no longer pursue omnibus orders of investigation by means of an “absent objection” procedure, and instead will seek Commission approval before extending such orders. Last month, CFTC Commissioner Scott O’Malia issued a sharply worded objection to the Division’s use of the procedure. Commissioner O’Malia warned that, by using the “absent objection” process, the Enforcement Division could initiate…
This post was also written by Thomas M. Levinson. In its ruling on February 27, in Amgen, Inc. v. Connecticut Retirement Plans & Trust Funds (No. 11-1085), the first of several highly anticipated class action decisions this term, the Supreme Court, in a 6-3 opinion written by Justice Ruth Bader Ginsburg, held that securities fraud plaintiffs need not prove that allegedly misleading statements are material in order to obtain class certification. Ruling in favor of…
In a strongly worded decision that will make it easier for private plaintiffs to withstand dismissal of securities fraud claims in certain cases, the Second Circuit vacated and remanded a federal district court’s dismissal of a putative securities fraud class action. In Acticon v. China Ne. Petroleum Holdings Ltd., — F. 3d —, 2012 WL 3104589 (2d Cir. Aug. 1, 2012), (found here), the Second Circuit squarely rejected what it described as the district…
This post was also written by Pablo Quinones and Joseph Prater. On March 23, 2012, the United States Securities and Exchange Commission (“SEC”) announced that it had entered into cooperation arrangements with the Cayman Islands Monetary Authority (“CIMA”) and the European Securities and Markets Authority (“ESMA”) in its continuing effort to improve global regulation of transnational business entities. The cooperation between the SEC and CIMA is particularly significant because a large number of hedge funds, investment…