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Los Angeles CA Corporate & Securities Law Blog

Mortgage securities fraud case settles

In the business world, securities fraud is a concern for many companies. Essentially, securities fraud occurs when a false statement is made about a company or its value and others rely on that information. Because of the dangers posed by securities fraud, all businesses should work diligently to be aware of these problems and protect their assets.

There is a history of long running disputes between American International Group and Bank of America. One such litigation is pending in California. These disputes center on defective mortgage-backed securities sold by Bank of America.

California-based company acquired in strategic alliance

Companies of all sizes want to grow, and keeping an eye out for creative growth opportunities lets organizations promptly seize them when they come. One such opportunity is growth through acquisitions. Generally, acquisitions involve one company purchasing another to obtain resource and skills assets, customer lists or an edge in the market.

Comic company opts for crowdfunding over business bankruptcy

Businesses, like individuals, fall on hard times. When financial worries mount, a number of accounting and legal remedies are available including bankruptcy, business reorganization or asset liquidation. For one California business, the options include crowdfunding.

SLG Publishing is a 28-year-old comic publisher based in California. The company has helped writers and artists become established professionals in the industry, and the small business has had some success over the years. At one point, the company contracted with Disney to produce comic-book series of programs such as Gargoyles and Tron.

California venture capital firm funds security company

Venture capital firms regularly support new and emerging technologies, and many of those relationships are made between California-based companies. True to the modern and connected roots of such companies, news often breaks via social media.

A recent announcement from Andreesen Horowitz, a venture capital firm based in Silicon Valley, was made on Twitter. Andreesen Horowitz has agreed to funnel $90 million in capital into Tanium, a little-known systems management and security firm that is also based in California. 

Merged California banks to focus on needs of small businesses

The combination of two Southern California banks is poised to shake up the world of business financing for small- and medium-sized organizations. One bank executive called the upcoming merger "earth-shattering." Reportedly, the idea to merge began with a conversation between the chief executives of California United and 1st Enterprise, the two banks that now plan to merge.

The new bank created by the merger is expected to concentrate on the needs of small- and medium-sized businesses, say reports. The deal will create a financial institution with $1.9 billion in deposits and $2.2 billion in assets.

Stalled bill would change ADA compliance rules for businesses

The Americans with Disabilities Act was signed into law to protect people with disabilities from discrimination, but many small businesses are either unaware of what they must do to comply with the law or do not have the money to make necessary structural changes to their business.  However, a single ADA lawsuit can be disastrous for a business that isn’t prepared.

In fact, the California Chamber of Commerce reports that more than 40 percent of all ADA compliance lawsuits are filed in California. Current federal regulations allow this type of business litigation to come into play without warning and without the businesses being given opportunities to rectify any violations.

Business bankruptcy saves Sbarro pizza chain

For business owners in California, insolvency can be a terrifying prospect. Financial woes and business bankruptcy often spell the end of an era for a company. When bankruptcies are handled carefully, however, they can result in new life for a business.

Sbarro, a popular mall-based pizza chain with stores across the globe, recently exited bankruptcy with positive news. According to reports, the pizza chain negotiated a reorganization that was positive for both the existing stores and creditors.

Insider trading charges result in hefty fines for 2 doctors

To prevent insider trading, the Securities and Exchange Commission heavily monitors businesses that have access to sensitive information that could affect trading practices. Allegations of insider trading are serious matters, and those facing investigation by the SEC need to understand their rights and available options for defense under the law.

Two California doctors recently settled charges of insider trading by agreeing to pay a total of $116,864. The doctors were reportedly working with a biopharmaceutical company tasked with evaluating drug trials. After learning that the Federal Drug Administration planned to halt the drug testing due to concerns related to patient safety, the doctors allegedly sold their shares for a combined profit of approximately $45,000.

California venture capital firms bet on virtual reality

California's technical sector is at the epicenter of a virtual-reality revolution, say some experts. Though detractors doubt the viability of the market, based in part on failures in the 1990s, companies such as Facebook and venture capitalists are shelling out to invest in the technology.

California-based virtual-reality company Survios reportedly received $4 million in investment cash from a group led by another company in the state, Shasta Ventures. Founded by two former students from the University of Southern California, Survios has plans to build virtual reality environments that allow motion. 

Apple poised to acquire Beats for $3.2 billion

California-based Apple is currently in negotiations to make the largest purchase in its history. Some aspects of the acquisition are still being worked out, so it's not a done deal yet. If all goes well, the purchase could be announced as early as mid-May.

Apple is attempting to purchase Beats Electronics, the brainchild of hip-hop star Dr. Dre. The tech giant would acquire Beats' music streaming service as well as its audio equipment operations for a sum of $3.2 billion. Apple and Beats both have declined to comment on the status or terms of the deal, but those close to the negotiations have stated that the Beats management team will report to the Apple CEO.