Securities Law

Is the proposed SEC clawback rule a mistake?

Join us November 11 for a discussion of SEC policy.

Opponents of Mary Jo White's tenure at the SEC have taken to the streets -- in a sense -- to protest the Commission's perceived protection of Wall Street institutions.

* ABC News chief legal analyst Dan Abrams is suing his neighbors over his lawyerly lair — and one of the defendants is a Biglaw partner at a top firm. Expect more on this later. [New York Post]

* Speaking of Biglaw, a familiar tale of financial performance: gross revenue at Am Law 100 firms grew by 4 percent in the first half of 2015, but driven by rate increases rather than demand growth. [American Lawyer]

* If you want the Supreme Court to hear your case, try to steer your cert petition clear of the “long conference,” known as the place “where petitions go to die.” [New York Times]

* Speaking of SCOTUS, the Court won’t come to the rescue of the Kentucky county clerk who refuses to issue marriage licenses to same-sex couples — time to issue those licenses or quit, Kim Davis. [How Appealing]

* But the justices did come to the (temporary) rescue of former Virginia Governor Robert McDonnell, allowing him to remain free until SCOTUS acts on his petition for certiorari. [SCOTUSblog via How Appealing]

* Are criticisms of the S.E.C.’s administrative-law procedures correct? Here’s a study from Professor David Zaring. [New York Times]

* The Show-Me State leads when it comes to showing defendants to their deaths: Missouri has displaced Texas as the “epicenter of the American death penalty.” [The Marshall Project]

* Speaking of capital punishment, I predicted that these particular Ninth Circuit judges wouldn’t be too sympathetic to this challenge to the death penalty — and based on yesterday’s oral argument, it seems I was right. [How Appealing]

* You’ve heard about what it’s like to be a Supreme Court clerk, but we bet you’ve never heard about what it’s like to be a Supreme Court intern. It’s apparently the “opportunity of a lifetime” to do errands and prepare lunch and meals for Justice Sonia Sotomayor. [Supreme Court Brief]

* If you’re trying to file an effective brief with the Supreme Court, it’s best to write in “relatively short sentences, with a non-confrontational tone.” In other words, you really shouldn’t be trying to emulate Justice Scalia’s “jiggery-pokery” flair. [Big Law Business / Bloomberg BNA]

* Wachtell Lipton may interested in going “big brother” on its associates, but when it comes to the Securities and Exchange Commission, the firm wants to steer clear of such voyeurism by doing away with clients’ quarterly reports. [Wall Street Journal (sub. req.)]

* This judge didn’t play “just the tip” when it came to piercing his corporate veil: Paul Hansmeier of copyright-troll firm Prenda Law must pay sanctions to the tune of $64,000 after he drained cash from another one of his firms and then dissolved it. [Ars Technica]

* Texas Tech Law is introducing a “brain-training” seminar for its first-year law students that will “maximize their brains’ performance.” One wonders if they took such a course before law school if they’d be enrolled in the same place. [Lubbock Avalanche-Journal]

* Hot on the heels of the news that the majority of students enrolled in California’s “failure factories” unaccredited law schools drop out before graduation, legislators are pushing for the state bar to do something about it before even more prospective students are conned. [Los Angeles Times]

* Robots will be coming for your jobs more quickly now thanks to the largest law firm in the world. Dentons invested an untold sum in Ross, an app that will inevitably replace first-year lawyers by utilizing super computer Watson’s artificial intelligence to perform legal research. [Globe and Mail]

* Slowly but surely, the legal industry is making a comeback in terms of headcount. Sure, the entire profession is only employing 3,500 more people now than it was at this time last year (sorry about that, law school grads), but it’s still an improvement. [Am Law Daily]

* Just because it doesn’t look like the Securities and Exchange Commission has been doing anything doesn’t mean that lawyers at the agency have been twiddling their thumbs. They’ve got some major things in the works, they swear. [DealBook / New York Times]

* “I wonder how it feels to save the life of a mass murderer? Good job.” In a shocking verdict, convicted Colorado movie theater shooter James Holmes was sentenced to life in prison. All it took was one holdout juror to take the death penalty off the table. [Reuters]

If you are going to take on investment in your cannabis business or invest in the cannabis business of someone else, you should ultimately seek to ensure compliance with all applicable securities laws.

* Politics and Biglaw just don’t mix: House Republicans hired Quinn Emanuel to handle their suit against President Barack Obama after Baker Hostetler withdrew from the representation due to “political pressure” the firm was facing. [Politico]

* The paper and napkin-eating “Middleman” in the post-it note insider trading ring pleaded guilty to securities fraud charges. This might make it difficult for his cohorts to substantiate their not-guilty pleas. [DealBook / New York Times]

* “This is a tale with no shortage of knaves or villains.” If you’re interested in learning about Chevron’s legal wranglings in Ecuador and with plaintiffs attorney Steven Donziger, there are a bunch of interesting new readings for you to peruse. [WSJ Law Blog]

* Crisis in legal education be damned! They may have bad timing, but these law schools are focusing on building bigger and better facilities for students they’re unable to put in their seats. [National Law Journal]

* Ohio law schools have taken a bruising in terms of decreased enrollment, but the University of Toledo has faced the worst of it. With a 25.9% reduction in 1Ls, tuition cuts can only do so much. [Toledo Blade]

* Federal judges frequently fly across the globe on other people’s dime for conferences and symposia, but 2012′s most frequent flyer is a judge who was recently embroiled in an ethics scandal: Randall Rader of the Federal Circuit. [National Law Journal]

* Even though she claims nothing is “fundamentally broken,” Securities and Exchange Commission chairwoman Mary Jo White proposed “sweeping” new stock market regulations in an attempt to get with the times. [DealBook / New York Times]

* U. of Maine wants to combine its business and law schools, but professors are concerned about pressing questions like, “What will the diploma say?” rather than, “Do I get to keep my job?” [Portland Press Herald]

* Law schools are seen as cash cows for their affiliated undergraduate universities, but this law school is hurting so bad for cash due to low enrollment the university is infusing it with millions. [Minnesota Daily]

* A Pennsylvania man is suing his local police department for First Amendment violations after he was arrested for cursing in front of officers. N.W.A has a song this guy would like. [Pittsburgh Post-Gazette]

* “I don’t think the government should be in the credentialing business.” Thanks to the whims of politicians, SCOTUSblog is having trouble getting media credentials to continue its coverage of the Supreme Court’s cases. [New York Times]

* How you like me now? In Redeeming the Dream (affiliate link), a new book co-authored with David Boies, Ted Olson says he experienced “some blowback” when he announced he was taking on the Prop 8 gay marriage case. [WSJ Law Blog]

* Steve Davis and Steve DiCarmine of failed firm fame think it’s “unfair” they have to defend themselves in a criminal case and an SEC case at the same time. They want the SEC case to be halted. Dewey think the judge will say yes? [Law360 (sub. req.)]

* Back in 2011, Pillsbury decided to ship its back-office operations to Nashville, and now it’s hiring a small contingent of lawyers to work there. FYI, an Ivy League degree may not be necessary. [Washington Post]

* Only in Florida would a judge allegedly challenge a public defender to a fight out back during a hearing and start throwing punches. We’ll definitely have more on this fiasco later today. [WFTV Eyewitness News]

* Peter Mutharika, a former law professor who taught at Washington University in St. Louis Law for about 40 years, is now the new president of Malawi, where it’s illegal to fart. Congrats! [St. Louis Post-Dispatch]

* “[T]hree names are unnecessary, and over time I think you’ll see Squire Patton start to take hold.” Sanders got the boot in this law firm merger, and it won’t be long before Boggs follows. [Am Law Daily]

* The “great female brain drain” at Am Law 200 firms isn’t slowing down, and it will only get better if Biglaw firms concentrate less on their failed “fix the women” approaches. [Harvard Business Review]

* Mary Jo White of the SEC promised to dust off an often ignored — but “potentially [] very powerful” — section of securities law to pursue financial violations. Be wary of the “innocent instrumentality” doctrine, defense attorneys. [DealBook / New York Times]

* We’ve got some breaking news for our readers from the “no sh*t” department: Law school graduates are still having a very tough time getting jobs as lawyers, and there is no real end in sight. [Sacramento Bee]

* If you’re looking for a way to explain a switch in your undergrad major when applying to law school, show admissions committees how pretty your grades are now. Tada! [Law Admissions Lowdown / U.S. News]

At which elite law firm did the defendant work, and from which school did he receive his law degree?

* Foreclosure attorney Bruce Richardson alleges that Hogan Lovells partner David Dunn hit him with a briefcase in front of a court officer. That’s how they roll in state court. (Expect more on this later.) [New York Daily News; New York Post]

* From cop killer to nomination killer: Mumia’s the word that stopped Debo Adegbile’s nomination to lead the Justice Department’s Civil Rights Division. [Washington Post]

* In happier nomination news, congratulations to former Breyer clerk Vince Chhabria, as well as to Beth Freeman and James Donato, on getting confirmed to the federal bench for the Northern District of California. [San Francisco Chronicle]

* It’s been a good week for amicus briefs. Congrats to Professors Adam Pritchard and Todd Henderson for getting the attention — and perhaps the votes — of several SCOTUS justices. [New York Times]

* How a Cornell law student got her father to foot the bill for half of her pricey legal education. [ATL Redline]

* As I predicted, the Ninth Circuit’s ruling in United States v. Maloney didn’t sweep the alleged prosecutorial misconduct under the rug by granting the government motion without comment. [The Atlantic]

* RACEISM™ alert: federal prosecutors allege that deputies to a North Carolina sheriff accused of racial profiling of Latinos shared links to a violent and racist video game. [Raleigh News & Observer]

* Speaking of mistreatment of Latinos, a recent Third Circuit decision spells good news for some immigrant communities. [Allentown Morning Call]

* Sarah Tran, the law professor who taught class from her hospital bed, RIP. [Give Forward]

* “Either access to abortion will be dramatically restricted in the coming year or perhaps the pushback will begin.” We’re moving back in history. Here’s hoping pro-choice advocacy will be born anew in 2014. [New York Times] * George S. Canellos, the SEC’s co-chief of enforcement, announced his departure on Friday, and people are already wondering whether he’ll return to his old stomping grounds at Milbank Tweed. [DealBook / New York Times] * We hope legal educators had fun at the Association of American Law Schools annual meeting, but we hope most of all that they learned what needs to change to really make legal education pay. [WSJ Law Blog] * “I believe women lawyers can contribute a lot to the legal system.” Saudi Arabia now has its first female law firm dedicated to bringing women’s issues to the country’s patriarchal courts. Congratulations! [RT] * A Starbucks spokeswoman issued a defense to the cease-and-desist response letter that went viral worldwide, and it reads just like how her company’s coffee tastes: bland. [International Business Times] * Amy “Tiger Mom” Chua is back with a vengeance, co-authoring a controversial new book (affiliate link) with her husband, Jed Rubenfeld. Which cultural groups are superior? [New York Post]

What’s wrong with this proposed system? Let's discuss...

* If the government shuts down and then defaults on its debt, Wall Street worries that it would “shake the foundations of the global financial system.” Hooray for political asshattery! [DealBook / New York Times]

* At least six of the Supreme Court’s judicial precedents are up for reconsideration in the upcoming Term, and high court commentators think the resulting decisions could be a mixed bag. [National Law Journal]

* Apparently low-income New Yorkers’ legal problems are “not worthy of a ‘real lawyer,’” or at least that’s the message that will be given if non-lawyers are allowed to provide legal services. [New York Law Journal]

* Sorry, lady, not enough prestige. A Brazilian journalist was allegedly on the receiving end of some “extremely violent” police behavior at Yale Law School after attempting to interview Justice Joaquim Barbosa at a private event. [The Guardian]

* Mark Cuban’s insider trading case is heading to trial today, but we genuinely wonder how he’ll be able to convince a jury that he’s “humble and affable,” rather than the “master of the universe.” [Boston Herald]

* A study revealed that almost half of all links in online Supreme Court opinions are dead, but at least internet pranksters like this guy have been given a chance in the spotlight. [New York Times]

* CHECK YOU [BLACKBERRIES] OFTEN, because firms like Shearman & Sterling, McCarthy Tétrault, Skadden Arps, and Torys will advise on the ancient technology’s private sale. [Am Law Daily]

* We hope this IPO isn’t imported from Detroit. Chrysler filed a prospectus with the SEC yesterday with the help of attorneys from Sullivan & Cromwell and Cravath. [DealBook / New York Times]

* Paul Bergrin, more commonly known as the “Baddest Lawyer in the History of Jersey,” was handed a life sentence yesterday. At least he’ll have street cred with his gen pop friends. [WSJ Law Blog (sub. req.)]

* If you’re still thinking of applying to law school now, you must be the kind of person who needs advice on how to go to college and fill out applications, all at the same time. [Law Admissions Lowdown / U.S. News]

The SEC alleges that an attorney disclosed inside information after way too much wine.

* How low can the legal market go? Manhattan firm lists full-time associate opening for $10/hr. “NY to 10.” (Screenshot here if the ad is removed). [Craigslist] * Iowa is giving out gun permits to the blind. Sadly this is not a new phenomenon as David Sedaris explained years ago. [FindLaw] * Business Insider has fired its CTO because… he’s a jerk. An important lesson in what free speech does and doesn’t mean. [Popehat] * A UNC professor pulled over for a DWI has sparked a Fourth Amendment battle because she was arrested by a fire truck. [Fox News] * Banks facing SEC enforcement actions are basically just spinning a roulette wheel and praying it doesn’t land on “Rakoff.” [Ramblings on Appeal] * On a related note, Senator Elizabeth Warren spoke at the AFL-CIO conference and discussed the corporate capture of the federal courts (at 1:23:45 after the jump)…

* The speed (or lack thereof) of justice: The DOJ filed suit against Bank of America, alleging that the bank defrauded mortgage-backed securities investors in 2008. [DealBook / New York Times]

* Sri Srinivasan, the newest member of the D.C. Circuit’s bench, is getting ready to hear his first arguments, while litigants try to commit the spelling of his last name to memory. [Legal Times]

* The LSAT is not to blame for the dearth of minority enrollment in law schools, said a UVA Law professor, and then a Cooley Law professor had to swoop in to slap him down. [National Law Journal]

* After teaming up with Touro, the University of Central Florida is working with Barry on an accelerated degree program. The dean of FAMU is upset. Don’t worry, you’ll get your turn, too. [Orlando Sentinel]

* New Jersey is in no rush to legalize gay marriage. To support their views, officials point out that people with civil unions are just like married couples — except for the married part. [New Jersey Law Journal]

* Meanwhile, a judge in Illinois will decide whether she’ll dismiss a challenge to the state’s gay marriage ban by the end of September. In her defense, early fall is a great time for a wedding. [Daily Herald]

* Belvin Perry, the judge who presided over the Casey Anthony murder trial, may be getting his own Judge Judy-esque television show. Oh, Flori-duh, you never, ever cease to entertain us. [MSN News]