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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Senate Legislation Seeks to Regulate Trillion Dollars Worth of Swap Transactions

Authorizing the Regulation of Swaps Act of 2009  |  S.9621  |  5/8/2009

Sen. Susan Collins, R-Maine, and Sen. Carl Levin, D-Mich., have introduced legislation to give federal financial regulators immediate authority to regulate trillions of dollars in swap transactions that continue to be marketed and traded in the United States without adequate government oversight. More...

Obama Administration Pushes For Regulation of Hedge Funds and Other Private Investment Pools

Private Fund Investment Advisers Registration Act of 2009  |  S. ____  |  7/15/2009

Continuing its push to establish new rules of the road and make the financial system more fair across the board, the Obama Administration has delivered proposed legislation to Capitol Hill to require all advisers to hedge funds and other private pools of capital, including private equity and venture capital funds, to register with the Securities and Exchange Commission (“SEC”). More...

New Securities Legislation Seeks to Reverse SEC Annuities Rule

Indexed Annuities and Insurance Products Classification Act of 2009  |  H.R 2733  |  6/4/2009

Rep. Gregory Meeks, D-N.Y., has introduced the Meeks-Price Bill, H.R. 2733, otherwise known as the “Indexed Annuities and Insurance Products Classification Act of 2009” in the U.S. House of Representatives that would overturn a controversial new U.S. Securities and Exchange Commission (“SEC”) . More...

Sen. Durbin Proposes Supermajority Vote of Shareholders to Curb Excessive Pay in Publicly Traded Corp.

Excessive Pay Shareholder Approval Act  |  S. 1006  |  5/7/2009

Sen. Richard Durbin (D-Il) has filed the Excessive Pay Shareholder Approval Act on May 7, 2009, seeking to curb excessive pay to employees of publicly-traded companies. More...

House Passes Anti-Financial Fraud Bill After Senate Approval

Fraud Enforcement and Recovery Act  |  S. 386  |  5/6/2009

The U.S. House of Representatives has passed by a vote of 367 to 59 an anti-financial fraud legislation, known as the Fraud Enforcement and Recovery Act, that seeks to add more teeth to the federal authorities’ fight against financial fraud. More...

Senate Approves Anti-Financial Fraud Legislation

Fraud Enforcement And Recovery Act of 2009  |  S. 386  |  4/28/2009

The Senate has passed legislation authored by Senator Patrick Leahy (D-Vt.) to bolster existing tools and increase resources available to federal prosecutors to combat fraud. The Fraud Enforcement and Recovery Act (“FERA”), S. 386, will help both to protect Americans from fraud and recover taxpayers’ money lost to fraud. More...

Bill Giving Federal Gov’t More Resources to Fight Financial and Mortgage Fraud Filed in Senate

Fraud Enforcement and Recovery Act  |  S.386  |  2/5/2009

Senator Patrick Leahy (D-Vt.) and Senator Chuck Grassley (R-Iowa) have introduced legislation to provide the federal government with more resources to investigate and prosecute financial fraud. More...

Lower House Proposes New Accounting Oversight Board for Financial Markets

Federal Accounting Oversight Board Act of 2009  |  H.R.1349  |  3/5/2009

Ed Perlmutter, D-Col., and Frank Lucas, R-Okla., introduced H.R. 1349, which would create a new Federal Accounting Oversight Board (“Board” or “FAOB”) to oversee the application of generally accepted accounting principles (“GAAP”) to the financial markets. More...

Senators Grassley and Levin Introduce Hedge Fund Transparency Bill

Hedge Fund Transparency Act of 2009  |  S. 344  |  1/29/2009

Senators Charles Grassley (R-Iowa) and Carl Levin (D-Mich) have introduced S. 344, "The Hedge Fund Transparency Act of 2009." More...

New Bill Imposes Tax on Securities Transactions to Recoup TARP Costs

Let Wall Street Pay for Wall Street's Bailout Act of 2009  |  H.R. 1068  |  2/13/2009

Rep. Peter A. DeFazio, D-Ore, has introduced on February 13, 2009, H.R. 1068, otherwise known as the” Let Wall Street Pay for Wall Street's Bailout Act of 2009.” 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.

The Public Employees’ Retirement System of Mississippi

Morgan Stanley & Co., Inc.

Jan Charles Finance S.A.

Park East, Inc.

CIBC World Markets Corp.

Citigroup Inc.

Barclays Capital Inc.

Citigroup Global Markets, Inc.

California Department of Corporations

The Royal Bank of Scotland plc

RiverSource Investments, LLC

Harris Nesbitt Corp.

Consolidated Management Group, LLC

The Bank of Nova Scotia

Asset Management Holding AG

Deutsche Bank

Toronto Dominion Texas, LLC f.k.a. Toronto Dominion Texas, Inc.

Alex Brown, Inc.

Tellabs, Inc.

Deutsche Bank Securities, Inc.

Mizuho International PLC

SG Cowen Securities Corp.

Makor Issues & Rights, Ltd.

ABN AMRO Inc.

Lydia Capital, LLC

Suntrust Capital Markets, Inc.

Tribune Company

Fleet Securities, Inc. n.k.a. Bank of America, N.A.

City of Philadelphia Board of Pensions and Retirement

The Bank of New York Company, Inc.

Staples, 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.

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

Salomon Smith Barney, Inc.

JPMorgan Chase & Co.

Dynex Capital Inc.

Citigroup, Inc.

JPMorgan Securities Inc.

Merit Securities Corp.

Scotia Capital (USA), Inc.,

Teamsters Local 445 Freight Division Pension Fund

Additional Resources

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