Mounting tension between the U.S. Securities and Exchange Commission and the cryptocurrency industry has led companies dealing in digital assets to toss the long-held practice of keeping notices of potential enforcement quiet and wear them as a badge of honor in the hopes of currying public favor.
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Analysis

Crypto Cos. Take SEC Cases To The Court Of Public Sentiment

By Aislinn Keely

Mounting tension between the U.S. Securities and Exchange Commission and the cryptocurrency industry has led companies dealing in digital assets to toss the long-held practice of keeping notices of potential enforcement quiet and wear them as a badge of honor in the hopes of currying public favor.

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Analysis

Industry Emboldened After Justices Galvanize Agency Attacks

By Jeff Overley

In the year since the U.S. Supreme Court said "extraordinary" and "far-reaching" attacks on administrative enforcers can skip agency tribunals and go straight to federal district court, ambitious challenges to regulatory powers are rapidly gaining traction, and the high court is poised to put them on an even firmer footing.

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Judge Reluctantly Dismisses FirstEnergy Shareholder Suit

By Jessica Corso

An Ohio federal judge said Friday that he had no other choice but to dismiss a shareholder lawsuit filed against scandal-plagued utility FirstEnergy Corp., though his reluctance to do so was underscored by a lament that a $180 million settlement brokered in another courtroom left a "shroud of darkness" over a $1 billion bribery scandal. 

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Judge Doubts 9th Circ. Ruling Upends VC's Fraud Conviction

By Dorothy Atkins

A California federal judge appeared skeptical Friday of convicted self-described "millennial" venture capitalist Michael Rothenberg's renewed request for a new trial or acquittal in light of a recent Ninth Circuit decision clarifying "materiality" in the federal criminal fraud statutes, doubting that Rothenberg was prejudiced by jury instructions addressing materiality.

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Kohl's Directors' Aversion To Sale Was Self-Serving, Suit Says

By Sydney Price

A Kohl's shareholder has hit the retailer's brass with a derivative suit alleging they covered up the results of a disastrous shift in business strategy and takeover offers, all in a bid to protect their own positions.

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CIVIL ENFORCEMENT

SEC Can Try To Show Jurisdiction Over German In $3M Claim

By Julie Manganis

The U.S. Securities and Exchange Commission will be allowed to pursue evidence to support its case for disgorgement of $3.3 million in allegedly ill-gotten gains from a German man whose son was implicated in a $150 million pump-and-dump scheme, a federal judge in Boston ruled on Thursday.

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WHITE COLLAR

Calif. Man Who Cooperated In $5M Insider Case Avoids Prison

By Pete Brush

A Manhattan federal judge on Friday allowed a California information technology pro to avoid prison for his role in a $5 million insider-trading ring involving laser company Lumentum Holdings Inc.'s secret merger plans, citing his extensive cooperation with prosecutors.

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Two Guilty Of Wire Fraud And Conspiracy In Forex Case

By Daniel Ducassi

A Colorado federal jury on Friday found two men guilty of wire fraud and conspiracy related to their work soliciting tens of millions of dollars from investors for their foreign exchange investment business.

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DELAWARE

Cantor, Lutnick Strike Deal With Window SPAC Investors

By Leslie A. Pappas

Shareholders of a special purpose acquisition company that took a now-bankrupt smart window manufacturer public have reached a tentative agreement to settle their proposed Delaware Chancery Court class action against Cantor Fitzgerald LP and its billionaire chair and CEO Howard Lutnick.

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CRYPTO & FINTECH

Crypto Firms Back FIT 21 Legislation Ahead Of House Vote

By Aislinn Keely

The advocacy group Crypto Council for Innovation gathered 60 industry signatories for a Friday letter to House leaders expressing support for an anticipated vote on a framework to regulate digital assets.

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Feds Say Crypto Scammer Gave Nod To 'Seinfeld' Gag

By Aislinn Keely

The lie that the character George Costanza told on "Seinfeld" appears to have inspired a New York City fraudster, as federal prosecutors announced Friday that a Brooklyn man admitted to running a million-dollar crypto and real estate scam in part through a phony company called Vandelay Contracting Corp.

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Dolce & Gabbana Sued Over 'Worthless' Digital Outfit NFTs

By Katryna Perera

Luxury fashion brand Dolce & Gabbana has been hit with a shareholder class action in New York federal court, alleging it sold consumers "essentially worthless" non-fungible tokens that it misrepresented as high-value and abandoned the project while retaining over $25 million that was used to fund it.

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INVESTOR ACTIONS

Aramark Spinoff Faces Investor Action Over Slow Growth

By Sydney Price

Uniform supplier Vestis Corp. was hit with a proposed class action on Friday alleging that it concealed years of underfunding prior to being spunoff by Aramark last year, leaving it unable to grow its revenue and retain customers.

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Peloton Says Investors Are 'Manufacturing' Bike Recall Suit

By Katryna Perera

Fitness equipment company Peloton urged a New York federal judge on Friday to toss a suit alleging it overstated the safety of its bikes before the U.S. Consumer Product Safety Commission recalled roughly 2.2 million Peloton products over a bike seat defect, saying the investors are trying to "manufacture" a case from a voluntary recall.

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Fla. Investor Says Mining Co. Froze His Shares In Costly Error

By David Minsky

An investor and former employee of a Canadian mining company alleged breach of fiduciary duty and negligence against the business, saying in a lawsuit in Florida federal court that he was wrongfully prevented from selling his shares and lost money when the stock price dropped following an unfavorable arbitration ruling.

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EMPLOYMENT

TD Bank Says Ex-Advisers Enticed $25M To Raymond James

By Ryan Harroff

TD Bank NA and its subsidiary TD Private Client Wealth LLC are accusing two former employees of "brazenly" breaking nonsolicitation agreements by moving to Raymond James Financial Services Inc. and enticing $25 million in client assets to come with them.

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LEGAL INDUSTRY

Pa. Federal District Judge Gene Pratter Dead At 75

By James Boyle

U.S. District Judge Gene E.K. Pratter, who joined the bench in the Eastern District of Pennsylvania in 2004 and presided over several landmark cases, died Friday at the age of 75, according to a statement from the court.

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Menendez Texts With Wife A Legislative Promise, Judge Says

By Pete Brush

Emoji-laden texts between Sen. Robert Menendez and his wife about an arms sale constitute a legislative promise, a Manhattan federal judge reiterated Monday, as the government seeks to prove the power couple had a corrupt agreement with a New Jersey businessman.

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Girardi Wants To Probe Jurors' 'Real Housewives' Exposure

By Brandon Lowrey

Public defenders for Tom Girardi want to ask prospective jurors in his upcoming fraud trial whether they have seen his wife's reality television show and news reporting about his law firm's massive scandal, according to a recent motion in Los Angeles federal court.

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McElroy Deutsch Says Ex-Exec's Guilt Boosts Home Claim

By Emily Sawicki

McElroy Deutsch Mulvaney & Carpenter LLP doubled down on its attempt to seize the home of two former firm executives following a guilty plea on criminal embezzlement charges earlier this month by one of them, the firm's former chief financial officer.

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LAW FIRMS IN TODAY'S NEWS

Arnold & Porter

Baker & Hostetler

Ballard Spahr

Bernstein Litowitz

Brouse McDowell

Cohen Milstein

Covington & Burling

Debevoise & Plimpton

Dickinson Wright

Duane Morris

Edelson Lechtzin

Ellzey & Associates

Fox Rothschild

Gibbons PC

Girardi & Keese

Grant & Eisenhofer

Herrick Feinstein

Jones Day

Katten Muchin

Kohrman Jackson

Lape Mansfield

Latham & Watkins

Levi & Korsinsky

Lindsey & Lacy

Littler Mendelson

Marino Tortorella

Mayer Brown

McDermott Will & Emery

McElroy Deutsch

Moeel Lah

Morgan Lewis

Morris Kandinov

Paul Hastings

Perez Morris LLC

Pomerantz LLP

Quinn Emanuel

Robbins Geller

Ropes & Gray

Saxena White

Seila Law

Skadden Arps

Tucker Ellis

Young Conaway

de Castro PC

COMPANIES IN TODAY'S NEWS

Alpine Securities Corp.

Amgen Inc.

Andreessen Horowitz LLC

Aramark

Arthrex Inc.

Axon Enterprise Inc.

Cantor Fitzgerald

Chevron Corp.

Coinbase Global Inc.

Dragos Inc.

Financial Industry Regulatory Authority Inc.

FirstEnergy Corp.

Harvard University

Home Box Office Inc.

Illumina Inc.

International Centre for Settlement of Investment Disputes

Kik Interactive Inc.

Kohl's Corp.

Los Angeles Times

Lumentum Holdings Inc.

Meta Platforms Inc.

Miami Dolphins

NASDAQ Inc.

Pacific Legal Foundation

Peloton Interactive Inc.

Raymond James Financial Inc.

Ripple Labs Inc.

Robinhood Markets Inc.

SVB Financial Group

Space Exploration Technologies Corp.

Toronto-Dominion Bank

View Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Commodity Futures Trading Commission

Consumer Financial Protection Bureau

Delaware Court of Chancery

European Union

Federal Bureau of Investigation

Federal Deposit Insurance Corp.

Federal Energy Regulatory Commission

Federal Housing Finance Agency

Federal Reserve System

Federal Trade Commission

Food and Drug Administration

National Credit Union Administration

National Labor Relations Board

U.S. Attorney's Office

U.S. Attorney's Office for the Central District of California

U.S. Attorney's Office for the District of Colorado

U.S. Attorney's Office for the Northern District of California

U.S. Attorney's Office for the Southern District of New York

U.S. Consumer Product Safety Commission

U.S. Department of Agriculture

U.S. Department of Commerce

U.S. Department of Justice

U.S. Department of State

U.S. District Court for the Central District of California

U.S. District Court for the District of Connecticut

U.S. District Court for the District of Massachusetts

U.S. District Court for the Eastern District of New York

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Georgia

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. Environmental Protection Agency

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the District of Colorado

United States District Court for the Eastern District of Wisconsin

United States District Court for the Northern District of Ohio