Securities Law Updates

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Matrixx Initiatives, Inc., et al. v. Siracusano: Securities Plaintiffs Can Use Inferences to Show Materiality and Scienter at the Pleading Stages

By Josh Lawler of Zuber & Taillieu and Joel B. Ginsberg

The United States Supreme Court has ruled that in securities cases under §10(b) and Rule 10b–5 the requirement of the materiality of a defendant’s misrepresentations cannot be reduced to a bright-line rule. Facts giving rise to a strong inference that a defendant acted with the required state of mind are… More...

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House Passes Conyers Oil Spill Liability Bill

Securing Protections for the Injured from Limitations on Liability Act  |  H. R. 5503  |  7/1/2010

The House of Representatives has passed H.R. 5503, the Securing Protections for the Injured from Limitations on Liability Act (SPILL Act). Introduced by Judiciary Committee Chairman John Conyers, Jr. (D-Mich.) and Louisiana Gulf Coast Congressman Charlie Melancon (D-La.), this legislation focuses on fixing loopholes in liability statutes so that the victims of the Deep Horizon explosion can be fairly treated. More...

House Passes Historic Financial Reform Legislation

Dodd-Frank Wall Street Reform and Consumer Protection Act  |  H.R. 4173  |  6/30/2010

By a vote of 237-192, largely on party lines, the U.S. House of Representatives has approved a landmark legislation that boldly seeks to restore responsibility and accountability in the country’s financial system. More...

Bill Creating $30B Investment Pool for Small Banks Goes to Senate After House Passage

Small Business Lending Fund Act of 2010  |  H.R. 5297  |  6/17/2010

By a vote of 241 to 182, with 9 members abstaining, the U.S. House of Representatives has passed the Small Business Lending Fund Act, H.R. 5297, a plan proposed earlier this year by President Barack Obama to establish a $30 billion pool of capital for community banks. More...

House, Senate Legislation Would Ban Foreign-Controlled Corporations, Government Contractors from Making Political Expenditures to Influence Elections

The DISCLOSE Act  |  H.R. 5175  |  4/29/2010

U.S. Senators Charles E. Schumer (D-NY), Russ Feingold (D-WI), Ron Wyden (D-OR), Evan Bayh (D-IN) and Al Franken (D-MN) have unveiled a new legislation to blunt the harmful impacts from the Supreme Court’s decision allowing corporations and other special interests to spend unlimited sums to influence elections. More...

European Parliament Committee Approves Legislation Regulating Alternative Investment Funds

EP Economic and Monetary Affairs Committee Draft Legislation on Alternative Investment Funds  |  No. ________  |  5/17/2010

The European Parliament (“EP”) Economic and Monetary Affairs Committee has approved a draft European Union (“EU”) law regulating managers of alternative investment funds, including hedge funds. More...

Legislative Amendment Adds Anti-Fraud, Whistleblower Protections to Wall Street Reform Bill

Amendment to Restoring American Financial Stability Act of 2010  |  Amendment in Senate to S. 3217  |  5/4/2010

Leading members of the Senate Judiciary Committee have filed an amendment to the Wall Street reform legislation that will increase law enforcement resources to root out and prosecute financial and securities fraud, and will strengthen protections for whistleblowers who help expose financial fraud. More...

New Amendment to Wall Street Reform Bill to Repeal Antitrust Exemption for Health Insurers Filed

Health Insurance Industry Antitrust Enforcement Act  |  S. ____  |  5/5/2010

Senate Committee on the Judiciary Patrick Leahy (D-Vt.) has filed an amendment to the pending Wall Street reform legislation (“Restoring American Financial Stability Act of 2010,” S. 3217) to repeal the health insurance industry’s exemption from federal antitrust laws. More...

Senate Agriculture Committee Passes Bill Regulating $600 Trillion Over-the-Counter Derivatives Market

Wall Street Transparency and Accountability Act of 2010  |  S. ______  |  4/21/2010

Voting 13 to 8, the Senate Committee on Agriculture, Nutrition and Forestry passed the Wall Street Transparency and Accountability Act of 2010, a legislation designed to reform the unregulated $600 trillion over-the-counter derivatives market. More...

Senate Approves Amendment to Financial Reform Bill Granting State Attorneys Authority to Enforce Federal Rules

S.Amdt. 4071 to S.Amdt. 3739 to S. 3217 (Restoring American Financial Stability Act of 2010)  |  S.Amdt. 4071 to S.Amdt. 3739 to S. 3217  |  5/18/2010

By a vote of 80-18, the Senate has approved a compromise amendment to the sweeping financial reform bill (S. 3217, “Restoring American Financial Stability Act of 2010:) that allows state attorneys general to enforce federal rules, specifically those regulations developed by the proposed Consumer Financial Protection Bureau. More...

Senate Passes Bipartisan Amendment to Financial Reform Bill to Preserve Ability of Small Business Startups to Acquire Capital

S. Amdt. 4056 to S. 3217 (Restoring American Financial Stability Act of 2010)  |  S. Amendment 4056  |  5/17/2010

A bipartisan amendment sponsored by Senators Kit Bond (R-MO) and Senate Banking Committee Chairman Christopher Dodd (D-CT) and co-sponsored by Senators Mark Warner (D-VA), Scott Brown (R-MA), Maria Cantwell (D-WA) and Mark Begich (D-AK) was adopted by voice vote as part of the financial reform bill passed in the Senate last week. More...

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Companies Mentioned

Securities Law

The following companies are mentioned in Securities Law Updates:

Securities and Exchange Commission

Harris Associates, L.P.

Banc of America Securities LLC

Citicorp USA, Inc.

CIBC World Markets Corp.

Citigroup Inc.

Barclays Capital Inc.

Citigroup Global Markets, Inc.

The Public Employees’ Retirement System of Mississippi

Morgan Stanley & Co., Inc.

Jan Charles Finance S.A.

Park East, Inc.

City of Philadelphia Board of Pensions and Retirement

Staples, Inc.

The Bank of New York Company, Inc.

CIBC, Inc.

Citibank, N.A.

Metal Management, Inc.

European Metal Recycling, Ltd.

Salomon Smith Barney Inc. n.k.a. Citigroup Global Markets, Inc.

Calyon Securities (USA), Inc. f.k.a. Credit Lyonnais Securities (USA) Inc.

Salomon Smith Barney, Inc.

Calyon New York Branch (successor by operation of law to Credit Lyonnais New York Branch)

Dynex Capital Inc.

Citigroup, Inc.

JPMorgan Chase & Co.

JPMorgan Securities Inc.

Merit Securities Corp.

Scotia Capital (USA), Inc.,

Teamsters Local 445 Freight Division Pension Fund

Aetna, Inc.

Cowen & Co., LLC f.k.a. SG Cowen Securities Corp.

Societe Generale

SunTrust Bank

TD Securities (USA), Inc.

BMO Nesbitt Burns Corp. n.k.a. Harris Nesbitt Burns Corp.

Buchanan Ingersoll & Rooney Professional Corporation

Consolidated Leasing Hugoton Joint Venture #2

W. R. Huff Asset Management Co., LLC

Consolidated Leasing Anadarko Joint Venture

ABN AMRO Bank N.V.

Guardian Capital Management

Free Enterprise Fund

Banc of America, N.A.

Vesta Insurance Group, Inc.

Beckstead and Watts, LLP

Barclays Bank PLC

Torchmark Corp.

Public Company Accounting Oversight Board

BNY Capital Markets, Inc.

Additional Resources

Securities Law