News and Alerts
An attorney for SkyBridge, Samuel Lieberman (Partner), argued U.S. Bank had accepted a heightened duty in its role as fund administrator to independently verify that a strict valuation policy was being adhered to at Premium Point. U.S. Bank agreed to these terms in order to reap fees from SkyBridge, which would become Premium Point’s largest investor with a $365 million stake.
The U.S. Securities and Exchange Commission ("SEC" or "Commission") the Financial Industry Regulatory Authority ("FINRA") released a joint statement on July 8, 2019 clarifying issues related to broker-dealer custody of digital asset securities. The statement focuses on FINRA and the SEC's approach to broker-dealer regulation and investor protection, including assets deemed to be securities under the 1970 Securities Investor Protection Act and factors related to approving a broker-dealer application of crypto-related companies. The same fundamental elements of the broker-dealer financial responsibility rules apply whether a security is paper or digital.
Over the last thirty-six months, Sadis & Goldberg has assembled a cross-practice Cannabis Practice Group to provide greater legal insight to businesses operating in this rapidly growing and dynamic industry where state, federal and international regulations remain in transition.
The U.S. Securities and Exchange Commission ("SEC") scheduled a June 5th vote on its Regulation Best Interest rulemaking package. SEC will consider whether to adopt a new rule to establish a "best interest" standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation to a retail customer of any securities transaction or investment strategy involving securities. The existing requirement is that broker-dealers recommend "suitable" investments for clients, falling short of a fiduciary standard.
Private Equity Law Report published an article written by Vincent Pitaro highlighting our most recent cannabis webinar, State of the Union: M&A in the Cannabis Space, hosted by Paul Marino (Partner), Robert Cromwell (Counsel), and Eliott Frank (Partner) and featuring Michael Feinsod and Hunter Garthe of General Cannabis on April 16, 2019.
Ron Geffner (Partner) was mentioned in an article in Investors’ Business Daily discussing the SALT panel, "Navigating the New Frontier of Cannabis Investing.”
The litigation team from Sadis & Goldberg LLP led by Sam Lieberman (Partner) and Ben Hutman (Associate) was given honorable mention for “Litigator of the Week” in the New York Law Journal for their work in the DangDang Case. For more about the DangDang Case, click here. To read the full article on the New York Law Journal’s website, click the button below.
The friction inherent in the divide between state and federal treatment of cannabis has been a major impediment to the growth and evolutionary development of the industry on a national integrated scale. Access to banking and financial markets, in particular, has been an issue for many businesses in the cannabis industry, as a result of the reluctance of many institutions in the banking sector to provide banking services to cannabis-related businesses and service providers.
Sadis & Goldberg has expanded its litigation team with the addition of Counsel James Ancone. Mr. Ancone’s practice focuses on financial services litigation. In particular, he has extensive experience advising clients, including liquidators, officers, and directors, involved in cross-border disputes. He recently represented the officers and directors of a Cayman Islands reinsurance company in the Davis v. Scottish Re Grp. Ltd. shareholder action in the New York State Commercial Division.