Two days ago, North Carolina Senator Richard Burr was sued by a shareholder in Wyndham Hotels and Resorts in the United States District Court for the District of Columbia. In the complaint, the plaintiff alleged that Senator Burr decided to sell his stock portfolio based on non-public “insider” information. According to news reports, in late February 2020, Burr, who is … Read More
Wake County Courts Postpone Cases in Response to Coronavirus
On Friday, March 13, 2020, officials of Wake County Superior Court announced that some but not all pending court cases will be postponed for at least 30 days. The Court’s memorandum to members of the Tenth Judicial District Bar may be found here. If you have a case that is scheduled to be heard within the next 30 days, you … Read More
FINRA Arbitration Claims Likely to Spike due to Current Market Crash
At present, the stock market appears to be in free-fall, with most major market indices down approximately 25% in the past two weeks. The extent of the current crash and the duration of the recovery will likely depend on the extent and duration of the coronavirus crisis and the oil price trade war between Saudi Arabia and Russia. Absent a … Read More
Does Your Securities Broker or Investment Advisor have Errors and Omissions Insurance?
When shopping for an investment firm, or during your next meeting with your financial professional, ask whether the firm carries errors and omissions insurance. This type of insurance, also known and “E&O coverage,” insures against claims made by customers against their investment professionals. Unpaid arbitration awards remain a significant focus of regulators, legislators, and investor advocates. According to data published … Read More
Federal Bar Association Rebukes Trump for Interferring in Roger Stone Case
The Federal Bar Association is the nation’s oldest and most prestigious organization of attorneys and judges who share a common interest in the welfare of the federal court system. On February 19, 2020, in response to President Trump’s commentary on Roger Stone case, Attorney General Barr’s personal intervention in the case, and the resignation of the four career prosecutors who … Read More
Happy New Year! Federal Court Strikes Down North Carolina’s Racist Voter ID Law
In an order dated December 31, 2019, Judge Loretta C. Biggs ruled that North Carolina’s racist voter identifcation law violates Section 2 of the Voting Rights Act and the Fourteenth and Fifteenth Amendments of the United States Constitution and entered a preliminary injunction against its enforcement. Judge Biggs ruled the plaintiffs had satisfied each element required to support the issuance … Read More
Edward Jones Twice Denied Injunction Requests Against Ex-Brokers
In two cases decided within the last 30 days, Edward Jones was denied requests for injunctions against former brokers it accused of stealing trade secrets and soliciting customers. Edward D. Jones & Co., L.P. v. Michael Peterson, Case No. 2:19-dv-01968-JCM-EJY (D. Nev. December 6, 2019) and FINRA arbitration case 19-03340 (December 3, 2019) On November 8, 2019, broker-dealer Edward D. … Read More
NC is One of Two States Selected to Pilot a Program to Increase Reporting of Elder Financial Exploitation
North Carolina is one of two states that will implement a pilot program to facilitate the reporting of suspected cases of financial abuse of the elderly. A new federal grant has created a secure, unified reporting platform to open lines of communication between the financial industry and government agencies to bring more cases of elder financial abuse to light. Seniors … Read More
Andrew Whiteman Appointed to Grievance Committee
Andrew Whiteman has been appointed to serve on the Grievance Committee of the Tenth Judicial District Bar. The Tenth Judicial District Grievance Committee is made of attorneys and laypeople. This Committee receives referrals from the North Carolina State Bar of complaints made against local lawyers. The Committee holds monthly closed meetings to determine whether probable cause exists to believe that … Read More
U.S. Supreme Court to Decide whether the SEC has the Authority to Order Disgorgement of Illegal Profits
On November 6, 2019, the United States Supreme Court agreed to decide a case that challenged the SEC’s power to seek disgorgement in court as a penalty for securities law violation. In the case of Liu, et al. v. Securities and Exchange Commission, the SEC sued the petitioners, Charles C. Liu and Xin Wang, for violating the federal securities laws. … Read More