Investment Funds

In a Roll Call article discussing the impact on campaign donations of naming a state governor to the presidential ballot, Robert A. Johnston Jr. notes that the SEC’s “pay-to-play” rule limits direct donations to a campaign, but still allows funds to be directed to Super PACs. Johnston says: "It remains to be seen whether substantial donations from Wall Street will be instead routed to Super PACs that will make independent expenditures in furtherance of the Democratic ticket.”

In Private Equity Law Report, Robert A. Johnston Jr. explains the impact of some of FinCEN and SEC’s proposed designation of certain financial advisers as “financial institution,” thus exposing them to similar anti-money laundering (AML) compliance program and suspicious activity report (SAR) filing requirement obligations to banks, noting that the proposed new definition of “customer” to include advised funds but not their underlying investors seems to be at odds with FinCEN’s expressed concerns about money laundering. He expects that the public commentary period is “likely to seek clarity from FinCEN as to what the terms ‘account’ and ‘customer’ mean in the private funds context as to pooled investment vehicles advised by Covered Advisers and the underlying investors in those vehicles.” Johnston adds: “Compliance with the Proposed Rule may not be overly burdensome for Covered Advisers that currently outsource know-your-client reviews to third-party administrators.” (subscription required to access article)

In the Hedge Fund Law Report, Scott H. Moss, partner and Chair of Lowenstein’s Fund Regulatory & Compliance practice, and Co-chair of its Investment Management Group, explains recent rule changes from both the SEC and CFTC targeting Form PF, which will take effect in March 2025, and which will require increasingly granular reporting on large hedge funds by private fund managers and their compliance staffs. The increased Form PF reporting requirements “will likely mean more work for administrators, compliance consultants and other service providers, [and] their fees will likely increase as a result,” says Moss. “Administrators will have to adjust more, and their systems will have to change and become more sophisticated and detailed, which means their internal costs are going to increase.”

Moss advises managers to “look at the new questions in Form PF and the new definitions… note that some questions have been relocated from one section to another, and changes have been made to the timing of reports and updates.”  Managers and fund administrators may need to “adjust their data collection and organization frameworks and systems to account for new items and new defined terms,” changes that may particularly impact smaller advisers. “The largest advisers that have large budgets and large legal and compliance departments may very well say, ‘We can build this out. Whatever electronic reporting systems our administrators have, we can do that and control it all in-house. But smaller advisers just don’t have the resources to do that, so they’re going to have to rely on administrators or compliance consultants – or they may simply throw up their hands and consolidate into a larger adviser.”  However, if they have already been updating their compliance programs to comply with the recently vacated Private Fund Advisers Rules, that will help: “it’s not like they have to start from a blank slate.”  

Moss believes these increasing detailed requirements are due to the Commission’s claims that they need this information to monitor risk.  He says: “The rationale the SEC gives over and over again is identifying potential systemic risk in the market…The SEC feels like it didn’t have enough information when certain things happened in prior years to know what large hedge funds, for example, were contributing to those events or could contribute in the future.” (subscription required to access article)

Robert A. Johnston Jr. tells Private Funds CFO that the proposed anti-money laundering rules from the Department of Treasury’s Financial Crimes Enforcement Network may be challenging for small private equity managers who don’t already have a third-party administrator. He recommends that fund managers educate themselves quickly on suspicious activity reports (SAR, saying: “To get to the position of filing a SAR, you have to be able to recognize a potentially troublesome transaction in the first place. If an investor comes in and out of the fund frequently or makes a subscription and then the next quarter makes a withdrawal, someone is going to have to be trained to recognize that as a potentially suspicious activity, and then it has to be escalated and analyzed.” Noting that these reforms are “an idea they keep coming back to, so I guess at some point it’s going to be a reality,” Johnston also wonders who will bear the cost of these reforms. “What people don’t appreciate about this industry is that while there are certainly a lot of wealthy people, there’s also a lot of institutional money that’s supposed to make sure that fire fighters, teachers and police officers can retire comfortably. Who’s going to bear the burden of this?” (subscription required to access article)

Scott H. Moss, Chair of Lowenstein’s Fund Regulatory & Compliance practice and Co-chair of the Investment Management Group, speaks to The Wall Street Journal about the Department of the Treasury’s expanded anti-money laundering rules for private-equity, venture-capital and hedge funds, noting that they “didn’t go as far as I thought they would.” (subscription required to access article)

William Brannan, partner and Vice Chair of Lowenstein Crypto, talks with Fortune Crypto about Prometheum’s plans to launch custodial services for Ether, the potential regulatory implications, as well as the current state of the industry. While Brannan acknowledges that Prometheum’s launch could upend the industry, given the length of time the industry has been clamoring for regulatory certainty, “that clarity wouldn’t be the worst thing.”

Ethan L. Silver, partner and Chair of Lowenstein’s FinTech and Broker-Dealer practices and Co-chair of Lowenstein Crypto, tells Coindesk that Binance’s deal with the Department of Justice may give the crypto exchange a chance to start over, noting that: “The settlement was the only option to continue the business.”  Silver adds: “Presumably, they think the business will be able to be cleaned up and operate on a compliant basis going forward with a great opportunity to continue its significant monetization.”

News that Michael D. Saarinen has joined Lowenstein Sandler as partner and Co-chair of Lowenstein’s Fund Formation & Structuring Group is featured in the New York Law Journal, Law360, StreetInsider, Reuters, Hedgeweek, Private Equity Wire, Financial Times, Family Wealth Report, and Bloomberg Law. Saarinen tells Law.com: “I wanted to be at a firm where my area of practice and my clients came first… I moved to Lowenstein because it provides a platform that is consistent and focused on the industry that my clients are involved in.” He adds that his clients are “incredibly excited…to have the resources of a firm that is focused on the investment management space.” (subscription required to access some articles)

Law360, Bloomberg Law, Reuters, AlphaMaven, Hedgeweek, Hedge Fund Law Report, and New York Law Journal report on Jonathan A. Danziger, General Counsel and Chief Compliance Officer at Glenview Capital, joining Lowenstein Sandler as partner in its Investment Management Group.

Danziger tells Law360 that “he was drawn to Lowenstein Sandler because it's a highly regarded firm that's widely respected among investment managers and other industry participants, adding that it also has one of the leading investment management practice groups in the country.” Crediting his 11+ years of experience in-house at this multi-million-dollar hedge fund for giving him deep understanding the needs of legal and compliance professionals, Danziger says: "I've stood in their shoes before, and because of that, I am well-positioned ... to provide thoughtful, thorough, clear and actionable advice,” adding that his “firsthand experience working with Lowenstein Sandler on various matters [while] at Glenview [makes him] understand why the firm has a reputation for being smart, innovative and commercially minded.”

William Brannan comments in The Information on pre-IPO secondary market, including ways that startup equity holders are seeking liquidity as founders wait to go public. Brannan says that the conditions characterizing the current tech startup market “spur creativity [among investors] and coax sellers into the market.” (subscription required to access article)

Hedge Fund Law Report explores the results of Lowenstein’s third annual report on alternative data in an article detailing how nine-in-ten alternative asset managers “now use alternative data or plan to use it in the coming year, and a solid majority increased their use of alternative data in 2021 and 2022 when compared with 2020.” The report was authored by Scott H. Moss, Chair of Lowenstein’s Fund Regulatory & Compliance practice; Boris Liberman, Co-Chair of the firm’s Derivatives & Structured Products practice; and George Danenhauer, counsel in the firm’s Investment Management group. (subscription required to access article).

Scott H. Moss, Chair of Lowenstein’s Fund Regulatory & Compliance practice, talks to Regulatory Compliance Watch about the new SEC FAQ requiring that advertising about “extracted performance” show both gross and net returns; he advises fund managers to “disclose the heck out of” how they define and calculate ‘net.’ (subscription required to access article)

Investment Executive examines the findings and summarizes key points from Lowenstein’s recent survey on alternative data, which notes that hedge funds have been using alternative data for more than a decade but adoption has increased in recent years, in part because investors sought to gauge the pandemic’s real-time impact on the economy and company profits. 

Lowenstein's survey report is also highlighted in Pensions & Investments, Inside Big Data, Advisor's Edge, and AnalyticsIQ.

Law.com interviews Bryan I. Reyhani on joining the firm and his decade of experience as a crypto lawyer, management consultant, and entrepreneur. Reyhani says he “anticipates rising demand for counsel among Lowenstein’s cryptocurrency clients as the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority regulate the industry through enforcement actions.” He also believes “Lowenstein’s crypto practice will see rising activity from entrepreneurs hoping to capitalize on the crypto winter.”

Law.com interviews Michael G. Gordon on how being mentored, and mentoring others, has positively impacted his career. “The role of a mentor is something you surely set out to take, and doing so produces rewards more than one can imagine,” says Gordon, who is being honored by the New Jersey Legal Awards for his contributions as a Mentor and Advisor at Seton Hall, where he mentors countless undergraduate and law students, and serves as the Founder of its Minority Pre-Law Organization. “Having such a strong mentor [as Professor Denis McLaughlin from Seton Hall Law School] helped me realize the value of mentorship and instilled in me the passion to give back and pay it forward. I knew there were so many students just like me who may have been interested in the law, but who had no idea how to start along the right path, how to excel in law school, and how to be the best attorney one can be.” He adds: “It all makes it worthwhile when, years later, my students still stay in touch and keep me abreast of their lives, both personally and professionally.”

William Brannan, Vice Chair of Lowenstein Crypto, speaks to Blockworks about the cryptocurrency industry’s future, how crypto regulations in the United States may evolve, and what crypto companies should do to stay sustainable. Brannan underscores the need for thoughtful regulation in today’s volatile marketplace; and advises crypto platforms to focus on customer education.

CIO references Lowenstein Sandler’s recent report on alternative data that found that “92% of investment organizations, from hedge funds and private equity to venture capital, are using alt data to a moderate or significant extent to inform decision making. [The survey’s] respondents also expect their use of alt data to increase through 2022.” CIO further notes that, according to the Lowenstein survey, vendor selection costs were users’ primary concern, as well as “the lack of tools and techniques to store alt data.” 

This article also appears in TekDeeps.

Global Legal Chronicle reports the formation of 6^th Man Venture’s second crypto fund, valued at $145 million and focused on early stage investments. 6^th Man is represented by Eric Weiner, Edward Nadel, Scott Balterman, and Jeremy Cantor.

Partners from Lowenstein Sandler's Investment Management Group discuss the App Annie case and its impact on hedge funds that use alternative data on Eagle Alpha’s Q4 podcast. They advise funds to follow three steps to establish sufficient due diligence in case the SEC makes an inquiry: “1) Make sure you send out a good DDQ; 2) Have a thorough follow up call, ask a lot of questions about data provenance, and memorialize it; and 3) Negotiate an agreement with robust reps and warranties about data provenance…that’s best practices.” They also make two predictions: “We’re going to see more [SEC] inquiries from managers who use data in their investment processes; and we will continue to see proliferation of utilization of this kind of data in the investment process.”

In Law.com, Chair and Managing Partner Gary M. Wingens discusses Lowenstein’s double-digit growth in 2021, describing how the firm advised clients in the innovation economy and technology sectors through its especially busy practices in such areas as investment management and life sciences, along with the emergence of blockchain and cryptocurrency.

”Our clients were incredibly busy during the year, and kept us very busy, particularly in the transactional practices,” he says. “People in general had a lot of money they were looking to invest in funds,” resulting in “record volume in fund formations and in traditional M&A work.”

Wingens further notes that “The deal activity was robust throughout the year and it’s actually continuing into 2022.” He also describes 2021 as the year when “cryptocurrency really became an acceptable asset class… [Our clients] have long been building this infrastructure, [so they turn to us for] licensing work, compliance work, and investments in these kinds of companies.”

Hedge Fund Law Report discusses with Peter Greene, partner and Vice Chair of Lowenstein’s Investment Management group, Lowenstein’s recent survey on alternative data, which reported that “two-thirds of hedge funds, nearly half of private equity (PE) firms and two-fifths of venture capital (VC) firms presently use alternative data, and most do so to a significant or moderate extent.”

“Fifty percent of hedge funds describe their use of alternative data as ‘significant.’ I think that is a pretty good number,” says Greene. “It means half of hedge funds out there are saying, ‘This really matters,’” That proportion is only going to grow.” He continues: “VC invests more in tech than PE does, so it is not surprising that VC would believe in the power of data more than PE would.”

Hedge Fund Law Report examines the survey’s findings on the impact of the pandemic on use of alternative data, as well as concerns over issues such as vendor and staff quality, data security and data breaches, and the acquisition of material nonpublic information (MNPI). “The hedge fund community understands very well the risks of acquiring MNPI and [personally identifiable information], and they are very careful with it,” Greene says.

Asked to predict the next trend in this area, Greene cautions: “Perception of what the ‘next big thing’ in alternative data will be varies from year to year… [Recently,] more and more hedge funds are starting to look into social media data sets.” According to Greene, consumer transaction data also remains “tried and true [and provides] direct information as to the behavior of consumers with respect to a particular product or market. It’s never going away.”  He further notes that firms are using alternative data to “gain insight and generate alpha in [environmental, social and governance (ESG)] investments,” create sustainability metrics, and develop new ESG strategies.

Law360 reports on the return of Ted Randolph to Lowenstein Sandler as partner in the Investment Management Group. Randolph says, “My time at Lowenstein was a highlight in my career, and I am thrilled to return.” Gary M. Wingens, the firm’s Chair and Managing Partner, adds: "We welcome Ted's wide-ranging experience counseling large institutional managers with complex structures, as well as new managers starting their own operations and launching their first investment funds." 

Randolph’s return was also noted in Bloomberg Law, Reuters’ The Daily Docket, and The New York Law Journal.

Insights from Scott H. Moss, partner and co-chair of the firm’s Fund Regulatory & Compliance practice, and Eileen Overbaugh, partner in the firm’s Investment Management group, are featured in a two-part article in Hedge Fund Law Report. Moss and Overbaugh address cybersecurity, business continuity plans, branch offices and disclosures under new Securities & Exchange Commission (SEC) Chairman Gary Gensler, as well as the use of the word “may” in disclosures, conflicts of interest-related issues, cross-trades and principal transactions, insider trading, responsible investing, and exams of new advisers. Moss recommends that fund managers perform risk assessments and conflicts assessments immediately, especially with regard to cybersecurity concerns as advisors continue to work increasingly from home. Cybersecurity is now absolutely essential and “permeates the very existence of every single registered investment adviser,” Moss says.

Peter Greene, Vice Chair of Lowenstein Sandler’s Investment Management group, talks to FundFire about the recent enforcement action by the U.S. Securities and Exchange Commission (SEC) against alternative data vendor App Annie. He notes that the company’s $10 million settlement with the government “follows signaling from the SEC over two years that alternative data would be a priority for the regulator.” Greene says that hedge fund managers must ask: “Is every link in the chain – the original owner, user of the app’s data, all the way through to the hedge fund, is every link pure? And by pure, does every party prior to you have the right to disclose that data?” He adds, “I think the concern is next time the SEC finds a rogue vendor or actor that we can’t be so sure the managers, hedge fund customers, won’t be implicated as well.”

Peter Greene, Vice Chair of Lowenstein’s Investment Management group, talks to FundFire about increased investing by hedge funds in private companies through various structures. Greene says, “We are seeing a ton of it – a lot of traditional hedge fund managers are starting to look at privates more and more than in the past.”

In an HFM article on the increasing popularity of hybrid public/private funds, partner Benjamin Kozinn of the Investment Management group discusses how to structure these funds and their fees, as well as how to mitigate compliance risks. “One approach is to have opt-in opt-out structures where the investor elects whether they want to allocate a portion of their capital (e.g., 10%, 20%) to privates. In the opt-in/out model, whether you actually invest in privates becomes a function of how many people opted in or opted out,” Kozinn says. He adds that one common approach with these funds is to charge a lower management fee and a higher incentive fee: “Maybe you don’t have to worry about portfolio risk management every day as you would with public markets, but the costs and the complexity of private investments can be higher than public investments.” Kozinn also warns of possible MNPI (Material Nonpublic Information) issues with these structures: “If a private company you are invested in is getting bought by a public company, or it is entering into a significant commercial arrangement with a public company, the manager is potentially walking into MNPI problems if you don’t have a physical separation and appropriate information barriers between the private and public investment teams.” (subscription required to access article)

In The Hill, Ethan L. Silver addresses the patchwork of federal regulation of cryptocurrency, where the Treasury Department oversees its taxation and compliance with anti-money laundering rules, the SEC and the Commodity Futures Trading Commission each has jurisdiction over different investment offerings, and no federal agency at all regulates the spot cryptocurrency exchange rate. “While it’s novel, it’s incumbent on those regulators to understand it because this stuff is not going away,” he says.

Hedge Fund Law Report interviews Boris Liberman, partner in Lowenstein’s Investment Management group, about his recent move to the firm from AQR Capital Management LLC, where he served as Senior Counsel. Liberman brings to Lowenstein his deep experience advising U.S. and international hedge funds, mutual funds, managed accounts, sovereign wealth funds, and other asset owners on all aspects of implementing their investment and trading strategies. He predicts that in the next two years, “a much larger number of buy-side entities will be in scope of the (regulatory initial margin) framework and will need to be in compliance if they want to continue with their OTC trading activity.”

Ethan L. Silver, Chair of the firm's Broker-Dealer practice, comments in Law360 on the Securities & Exchange Commission’s (SEC) proposed exemptions that would allow unregistered “finders” to be compensated for private fundraising activities. Silver says that finders not subject to broker-dealer compliance regulations might be difficult to manage, while “registered broker-dealers, on the other hand, are expected to behave in compliance with regulations because of the threat of an exam, the regulator coming in and examining you, or a supervisor or manager holding you accountable for your behavior.” 

Lowenstein Sandler counsel Robert J. Menendez, Jr.'s nomination by New Jersey Governor Phil Murphy to the Board of Commissioners of the Port Authority of New York and New Jersey is noted in Law360, NJ.com, ROI-NJ, NJBIZ, NorthJersey.com, NBC New York, the Daily Record, Hudson TV, and Hudson County View. Governor Murphy’s official announcement can be read here. (subscription required to access article) View Lowenstein's news announcement about this nomination.

Jack D. Hogoboom talks to The Deal about the record-breaking number of PIPE deals closed in Q1 2021, noting “the weird ‘Robinhood effect’ where betting on stocks seems to have taken the place of betting on sporting events.” Hogoboom also discusses the influence of SPACs, where “sponsors have been able to dictate terms that would never fly in the regular market."

Boris Liberman comments in Compliance Week regarding how buy-side entities should view dealer relationships globally and the trading agreements such entities negotiate with them. Citing the multitude of potential issues that buy-side entities might face, Liberman cautions that it is imperative for compliance officers to remain aware of changing relationships with dealers and to keep documents updated at all times, stating “documents will rule.” (subscription required to access article)

The arrival to Lowenstein of partners Edmund S. Cohen and Rachel Ingwer and counsel Scott Malone to the firm's Tax practice is noted in CPA Practice Advisor, General Counsel News, The Daily Docket, Law Fuel, Bloomberg Law, The American Lawyer, and the New York Law Journal. The lawyers will work closely with the firm’s Investment Management, Family Office, Private Equity, and Mergers & Acquisitions teams on sophisticated transactions and disputes. View Lowenstein's news announcement about these lawyers' arrival to the firm.

Lowenstein's representation of Avid Ventures in the launch of its $68 million-plus debut venture capital fund founded by Addie Lerner, decade-long investor at General Catalyst, General Atlantic, and Goldman Sachs, is noted in the Global Legal Chronicle. The Lowenstein deal team included Ed Zimmerman, Marie T. DeFalco, Max Karpel, Robert J. Menendez, Joseph F. Hendricks, and Bettina C. Elstroth. View Lowenstein's news announcement about this transaction.

Ed Zimmerman, Chair and co-founder of Emerging Companies & Venture Capital (fka, The Tech Group) and Adjunct Professor of Venture Capital at Columbia Business School, teamed up with Marie T. DeFalco (Vice Chair of Lowenstein’s Investment Management Group) to represent Avid Ventures in its $68 million-plus debut. Zimmerman tells Business Wire that managing partner Addie Lerner is “a brilliant, hard-charging, and charismatic force within the venture community. She will win deals by force of intellect, personality, and the reputation for excellence and integrity that she has already developed here in the States, in the UK, and in Israel. Having been opposite Addie in my role as counsel to startups, I’ve been impressed to see, more than once, founders rapidly transition from meeting Addie to making room for her in oversubscribed venture rounds.”

In Pitchbook, Zimmerman says: "LPs back the person in a solo GP fund. … I'm excited to see how people react … [to Avid], and whether others say this strategy is different and I'd like to copy it, or at least pivot into it a little bit more.”

Zimmerman tells TechCrunch that Lerner has a reputation for being “extraordinarily thoughtful about deals” and that one entrepreneur called her “one of the smartest people she has met in a decade-plus in venture.” He adds: “I’ve seen it myself in deals and then I’ve seen founders turn down very well branded funds to work with Addie. … Addie will find and win and be invited into great deals because she makes an indelible impression on the people who’ve worked with her and the data is remarkably consistent.”

Boris Liberman's arrival to Lowenstein Sandler as a partner in the Investment Management group is noted in Bloomberg Law, General Counsel News, The Daily Docket, and Law.com (New York Law Journal). View Lowenstein's news announcement about Liberman's arrival to the firm.

Benjamin Kozinn recently participated in a webinar on valuation presented by the Hedge Fund Law Report; its points are summarized in this article. Kozinn comments on valuation challenges; valuation frequency, processes, and governance; valuation committees and third-party valuation agents; and the impacts of the coronavirus pandemic on valuation. He notes that “the effect of the coronavirus pandemic has been relatively mild [on asset valuation]. … Market disruptions have been fairly short-lived. Advisers have been revisiting their valuation policies and speaking with their auditors.”

Doreen M. Edelman, Chair of the firm’s Global Trade & National Security group, discusses in Law360 anticipated trade issues for the incoming administration, such as the digital service tax programs increasingly imposed in Europe that are stirring controversy among Silicon Valley companies. "Digital taxes will also be discussed [with the EU], and the Biden administration will want to be part of a multilateral deal," Edelman predicts. "Biden likes to make all sides appreciate the deal, which may be difficult."

ALLAboutAlpha references Lowenstein Sandler’s survey report, Alternative Data = Better Investment Strategies, But Not Without Concerns, authored by Peter Greene with contributions from Ben Kozinn, in an article discussing the relevant use and applications of alt data for FinServ firms in the midst of the COVID-19 pandemic. The article cites the report’s findings that 98 percent of hedge funds surveyed use alt data in combination with fundamental analysis to make informed investment decisions.

Rossie E. Turman III explains to The American Lawyer his reasons for moving from Skadden to Lowenstein Sandler as partner and Chair of Lowenstein Sandler’s International Finance group, with seats in the firm’s Debt Finance group and Emerging Companies & Venture Capital (fka, The Tech Group): “If you’re trying to grow, align yourself with someone else that is trying to grow. … [I]f you’re trying to succeed, align yourself with someone else that is trying to succeed.” The article notes that Turman “will work closely with the firm’s Tech Group in representing companies based in emerging markets that have interests in the U.S.” He will lead Lowenstein’s efforts with respect to companies and funds located in and doing business with Africa. He has also actively engaged in civic endeavors and supported several charities on the African continent for nearly 30 years. 

In Westlaw Today’s story about his joining the firm, Turman says his “move to Lowenstein would facilitate building out the ‘three-legged stool’ of … [my] … practice, incorporating cross-border transactions, finance and technology.” 

Private Equity Wire, Law.com International/Middle East and Africa, Reuters, Bloomberg Law, and ROI-NJ also cover Turman’s transition to Lowenstein. (subscription required to view certain content) View Lowenstein's news announcement about Turman joining the firm.

Brian Nistler comments in CoinDesk regarding the “One Company, One Exam” plan proposed by the Conference of State Bank Supervisors, designed to streamline regulations and supervision over the nation’s largest financial technology payment firms and cryptocurrency exchanges.

Peter Greene, partner and Vice Chair of Lowenstein’s Investment Management group, is quoted in Alternatives Watch addressing the increased risk of insider trading and the importance of compliance monitoring for hedge fund employees working from home during the COVID-19 pandemic.  

Institutional Investor and The Wealth Advisor reference Lowenstein Sandler’s survey, Alternative Data = Better Investment Strategies, But Not Without Concerns, authored by Peter Greene with contributions from Ben Kozinn, in an article on how asset managers are using alternative data for investment decisions. The articles cite the report’s finding that more than a third of hedge funds surveyed spent more than $1 million on data annually.

Ethan L. Silver comments in Regulatory Compliance Watch on the SEC’s Form CRS, including the importance of documenting date of delivery, as well as the focus of the responses. The article recommends Lowenstein’s “Form CRS Drafting Guide and Template” as a source of further information. (subscription required to access article)

Lowenstein's representation of Veronis Suhler Stevenson in the completion of its investment (with NewSpring Health Capital) in the BRC Recovery Family of Programs is noted in the Global Legal Chronicle. The Lowenstein deal team included Steven E. Siesser, Eileen Overbaugh, Traci M. Tomaselli, Brooke A. Gillar, and Lesley P. Adamo. View Lowenstein's news announcement about this transaction.

Peter Greene, partner and Vice Chair of Lowenstein’s Investment Management group, notes the lack of a slowdown among fund managers during the COVID-19 pandemic in FundFire’s article examining the effect of the Coronavirus on hedge fund due diligence. He says, “People are still pitching. Funds that are ready to launch on April 1 or May 1 are going to do so. … I think some of them might be trying to accelerate.” (subscription required to access article)

Benjamin Kozinn comments on the proposed changes to the definition of “accredited investor” put forward by the Securities and Exchange Commission and possible implications–if any–for private funds, in the Hedge Fund Law Report and the Private Equity Law Report. (subscription required to access certain content)

William Brannan is quoted in Law360 and cryptonews, where he provides an analysis of Telegram’s $1.7 billion digital token sale of Grams and the need for regulatory clarity for early stage companies in the digital asset and blockchain space. (subscription required to access article)

Law360 covers the successful quashing of Akorn Inc.’s motions to dismiss two shareholder suits by Lowenstein clients Twin Capital and Manikay Partners, which sued after Akorn’s failure to disclose material information scuttled its proposed $4.3 billion acquisition. "It is important that investment managers be allowed to hold those who violate the securities laws accountable," said Lawrence M. Rolnick, who led the team that also included Michael J. Hampson, Richard A. Bodnar, and Jennifer A. Randolph. Lowenstein's successful representation is also highlighted in Business Wire, Bloomberg Law – Big Law Business, and Yahoo! Finance (subscription required to access certain content)

Max Karpel is interviewed in the Hedge Fund Law Report discussing his experience working with family offices as well as with established and startup hedge fund managers in forming and launching new funds.

Law360 covers the successful quashing of Akorn Inc.’s motions to dismiss two shareholder suits by Lowenstein clients Twin Capital and Manikay Partners, which sued after Akorn’s failure to disclose material information scuttled its proposed $4.3 billion acquisition. "It is important that investment managers be allowed to hold those who violate the securities laws accountable," said Lawrence M. Rolnick, who led the team that also included Michael J. Hampson, Richard A. Bodnar, and Jennifer A. Randolph.

Peter Greene offers insights regarding key compliance issues raised by fund managers using alternative data, as well as best practices for mitigating risks in the Hedge Fund Law Report.

Doreen M. Edelman contributes her 2020 predictions on potential legal issues in international trade in Law360. She notes that the Commerce Department has still not developed guidance on a rule, announced in 2018, on which “emerging and foundational technologies” are subject to export controls. She warns that, to date, many owners and developers of, and investors, in technology such as artificial intelligence, 3-D printing, quantum computing, and robotics “have not focused on export control requirements for these technologies. … Thus, these companies must quickly learn when export controls apply” to them to ensure compliance. (subscription required to access article)

Lowenstein’s representation of lead investor Pamplona Capital Management in the $200 million growth capital equity investment in iFit, the connected fitness streaming platform owned by ICON Health & Fitness, is highlighted in Law360, Bloomberg Law – Big Law Business, and the Global Legal Chronicle. The Lowenstein deal team included Michael A. Brosse, Mitchell McDonald, and Michael T. Melchiorre (Corporate); Michael Walutes (Tax); Lowell A. Citron (Debt Finance); and Nicholas G. Mehler (IP). (subscription required to access article) View Lowenstein's news announcement about this transaction

Max Karpel's arrival at Lowenstein as a partner in the Investment Management group is noted in Bloomberg Law – Big Law Business, General Counsel News, NJBIZ, Reuters, and The Deal. (subscription required to access certain content) View Lowenstein’s news announcement about Karpel joining the firm.

Lowenstein's representation of NexPhase Capital, LP in its agreement to sell Flexible Architecture & Simplified Technology, LLC, to Verisk Analytics, Inc., is noted in Cision PR Newswire, Law360, Bloomberg Law – Big Law Business, TMCNet.com, and the Global Legal Chronicle. Law360 specifically mentions Christopher C. Henry, Michael Walutes, and Kimber Hargrove. The Lowenstein deal team included Christopher C. Henry, Zarema A Jaramillo, Marc S Kurzweil, Jack Sidorov, Michael Walutes, Julie Levinson Werner, Bianka V. Barraza, Bettina C. Elstroth, Katie R. Glynn, Kimber Hargrove, Amanda C. Lutick, Stefanie Manna, and Megan Monson. (subscription required to access certain content) View Lowenstein's news announcement about this transaction.

Lowenstein's representation of W2O, the leading independent provider of analytics-driven, digital-first marketing communications to the health care sector, in the acquisition of Arcus Medica, a recognized leader in medical and scientific communications, highlighted in the Global Legal Chronicle. The Lowenstein deal team included David L. Goret, Marita A. Makinen, Andrew P. Erdmann, Matthew Tippy, Eugene R. Cheval, Tracy F. Buffer, Michael Walutes, Sophia Mokotoff, Megan Monson, Matt Savare, Bryan Sterba, Mary J. Hildebrand, Manali Joglekar, Carly S. Penner, Amy Komoroski Wiwi, and James C. Shehan. View Lowenstein's news announcement about this transaction.

Lawrence M. Rolnick comments in The Am Law Litigation Daily on the benefits for funds that opted out of the shareholder class action in the American Realty Capital Properties (ARCP; n/k/a VEREIT) litigation, which Lowenstein Sandler’s Securities Litigation Group team helped bring to a successful end. Lowenstein's role in this matter is also highlighted in the Global Legal Chronicle. The team included Lawrence M. Rolnick, Marc B. Kramer, Thomas E. Redburn, Jr., Sheila A. Sadighi, Michael J. Hampson, Richard A. Bodnar, Brandon Fierro, and Nicole Castiglione. View Lowenstein's news announcement about this representation.

Benjamin Kozinn discusses the Securities Exchange Commission’s Regulatory Flexibility Agenda and addresses essential takeaways for private fund managers in the Private Equity Law Report.

The release of Lowenstein’s research report, Alternative Data = Better Investment Strategies, But Not Without Concerns, by Peter D. Greene (with contributions from Benjamin Kozinn) was noted by Hedgeweek, Business Wire, Opalesque, the Managed Funds Association newsletter, Institutional Investor, Associated Press, Yahoo! Finance, StreetInsider.com, Chief Investment Officer, Business Insider, LexBlog, and Bloomberg Law. The report found that over 80 percent of hedge funds are using alternative data in some capacity and that 90 percent of survey respondents who use alternative data utilize it in combination with fundamental analysis to make investment decisions. View Lowenstein’s news announcement about the report.

Scott H. Moss is quoted in Compliance Week examining the risk alert issued by the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations regarding the need for compliance departments to examine investment advisers’ failure to adhere to requirements on disclosure and consent.

Benjamin Kozinn evaluates lessons learned by Chief Compliance Officers (CCOs) through recent SEC enforcement actions and the significance of fund managers offering sufficient support to CCOs and compliance programs, in the Private Equity Law Report.

Lowenstein Sandler’s role as legal counsel to Aceto Corporation in its Chapter 11 bankruptcy filing and in the proposed $338 million sale of its chemical business assets to New Mountain Capital is highlighted in Bankrupt Company News, MarketWatch, GlobeNewswire, Markets Insider, StreetInsider.com, EIN Presswire, MarketScreener.com, and the Global Legal Chronicle (May 20, 2019; June 22, 2019). The firm’s role as legal counsel in Aceto’s sale of subsidiary Rising Pharmaceuticals, Inc. is noted in The Associated Press, MarketScreener.com, and the Global Legal Chronicle. (Lowenstein team: Kenneth A. Rosen, Steven E. Siesser, Paul Kizel, Michael S. Etkin, Jeffrey Cohen, Wojciech F. Jung, Philip J. Gross, Michael Savetsky, and Michael Papandrea.) (subscription required to view certain content) View Lowenstein’s news announcements about this representation: March 18, 2019; May 13, 2019.

The launch of Lowenstein’s partnership with Eagle Alpha to meet the legal and compliance services associated with the use of alternative data by hedge funds is featured in The Associated Press, Hedgeweek and Yahoo! Finance, quoting Peter D. Greene: “Our new initiative with Eagle Alpha is a great opportunity to address the hedge fund industry’s concerns with respect to alternative data, and to do so on a variety of platforms …. We look forward to elevating our level of support to the fund community.” View Lowenstein's news announcement about this collaboration.

Lowenstein Sandler’s role as legal counsel to Medalist Partners, LP in its acquisition of a majority stake in JMP Credit Advisors LLC was mentioned in SCNow, Finger Lakes Times, The Financial Times, Business Wire, Bakersfield.com, MarketScreener.com, and the Global Legal Chronicle. (Lowenstein deal team: Edward S. Nadel, Christopher C. Henry, Jonathan C. Wishnia, Julie Levinson Werner, and Robert J. Menendez). View Lowenstein’s news announcement about this transaction.

Lowenstein Sandler’s representation of Abry Partners in its convertible preferred equity investment in PowerFleet, Inc., the new global IoT company to be formed by the acquisition of Pointer Telocation Ltd. by I.D. Systems, Inc., was mentioned in ROI-NJ, Law360, The PE Hub Network, StreetInsider.com and the Global Legal Chronicle. (Lowenstein deal team: Steven E. Siesser, Brooke A. Gillar, Kate Basmagian, and Matthew A. Weston.) View Lowenstein’s news announcement about this transaction.

Benjamin Kozinn analyzes implications of recent SEC enforcement actions and the importance for fund managers to provide adequate support to Chief Compliance Officers and compliance programs, in a two-part series in the Hedge Fund Law Report. 

Scott H. Moss was interviewed in Karma regarding the unique risks that the robo-advisory space poses to the standard model of human advisors helping people to manage their assets. Moss confirms that these risks are manageable, and identifies some potential conflicts that should be addressed when using robo-advisors. (subscription required to access article)

Lowenstein’s 2019 promotion of seven lawyers to partner and six to counsel (including three women in each category) is noted in Bloomberg Law – Big Law Business. These promotions are also highlighted in LawFuel, The Deal, and the Commerce and Industry Association of New Jersey’s (CIANJ) Business Beat newsletter, with Lesley P. Adamo, Dmitry Andreev, Marc S. Kurzweil, James B. O’Grady, Eileen Overbaugh, Peter Slocum, and Julie Levinson Werner highlighted as newly elected partners and Brandon Fierro, Joseph G. Jones, Robert Lynn, Brianne Perlman, Nedda N. Salehi, and Leah Satlin listed as promoted to counsel. Gary M. Wingens is quoted regarding the critical role these lawyers will play in the firm’s continued success. Law360 notes our partner elevations in an article highlighting firms' Q1 promotions. (subscription required to access certain content) View Lowenstein’s news announcement about these promotions.

The growth of Lowenstein’s White Collar Defense and Capital Markets Litigation practices with the arrival of new partners Rachel Maimin and H. Gregory Baker is highlighted in The New York Times, Law360 (April 1, 2019; April 29, 2019),  NJBIZ, Securities Docket, Law.com, Global Investigations Review, Bloomberg Law – Big Law Business, Reuters, The Deal, and the Commerce and Industry Association of New Jersey’s (CIANJ) Business Beat newsletter. Several of the articles note the new partners’ previous high-profile government experience: Maimin as part of the Southern District of New York team that investigated and prosecuted President Donald Trump’s former personal attorney Michael Cohen, and Baker’s extensive investigative work with the Department of Justice, the Federal Bureau of Investigation, the Internal Revenue Service, and other federal agencies. (subscription required to access certain content).

The American Lawyer features Lowenstein Sandler’s recent “lateral hiring spree of government lawyers and prosecutors” in an article on the arrival of new partners and former government litigators Rachel Maimin and Greg Baker. Both Maimin, former SDNY assistant U.S. attorney, and Baker, former senior counsel at the U.S. Securities & Exchange Commission, praised Lowenstein’s “commitment to growing its white-collar practice,” in addition to the strength of its investment management and funds practice, as critical elements attracting them to the firm. 

The piece notes that since former Attorney General of New Jersey Anne M. Milgram joined the firm in July 2017 as special counsel and former Attorney General of New Jersey Christopher Porrino returned to the firm in 2018, Lowenstein has welcomed several former prosecutors and government lawyers. The firm’s Litigation team now includes former First Assistant Attorney General of New Jersey Peter Slocum; former Assistant U.S. Attorney, Eastern District of New York Ryan M. Wilson; former Assistant U.S. Attorney, Southern District of New York Elie Honig; and former Deputy Attorney General of New Jersey Shontae D. Gray. 

Porrino, Chair of the firm’s Litigation group, says that “he expected the firm’s ‘talent binge’ to continue. … ‘We’re focused on talent and we’re focused on experience and I think Rachel and Greg are great examples of that.’” (This article also appeared in the New Jersey Law Journal and on Yahoo! Finance and Yahoo! News.) (subscription required to access certain content) View Lowenstein’s news announcement about Maimin and Baker joining the firm.

Peter D. Greene is quoted in Business Insider discussing hedge funds’ collection of web-scraped data, in light of an ongoing lawsuit that could potentially change what funds are legally allowed to collect. Despite pending litigation, investment firms continue to scrape websites for data. In response to the regulatory and compliance landscapes, Greene provides that a “noticeable change has come from hedge funds’ compliance departments in their efforts to track litigation related to web scraping.”

Ethan L. Silver is quoted in Financial Planning discussing the Securities Exchange Commission’s increased enforcement of regulations for robo-advisory firms. Silver affirms the necessity of strong, ongoing compliance programs as a key to minimizing the risk of penalization. He stresses the importance of firms to enhance disclosures and limit claims on social media, to ensure that they are “delivering on what was promised through marketing channels.”

Lowenstein Sandler’s role as legal counsel to New Mountain Capital and portfolio company Topix Pharmaceuticals, Inc. in connection with the acquisition by Topix of ClarityRx Clinical Skin Care, Inc. is highlighted in The PE Hub Network, Business Wire, the San Fernando Valley Business Journal, Cosmetics Technology, and the Global Legal Chronicle. (Lowenstein deal team: Marita A. Makinen, David L. Goret, Michael Walutes, Matt Savare, Vanessa A. Ignacio, Anthony W. Raymundo, Megan Monson, Bryan Sterba, and Jacob D. Unger.) View Lowenstein’s news announcement about this transaction.

Lowenstein Sandler’s role as legal counsel to Aceto Corporation in its Chapter 11 bankruptcy filing and in the proposed $338 million sale of its chemical business assets to New Mountain Capital is highlighted in Bankrupt Company News, MarketWatch, GlobeNewswire, Markets Insider, StreetInsider.com, and EIN Presswire. The firm’s role as legal counsel in Aceto’s sale of subsidiary Rising Pharmaceuticals, Inc. is noted in The Associated Press and MarketScreener.com. (Lowenstein team: Kenneth A. Rosen, Steven E. Siesser, Paul Kizel, Michael S. Etkin, Jeffrey Cohen, Wojciech F. Jung, Philip J. Gross, Michael Savetsky, and Michael Papandrea.) (subscription required to view certain content) View Lowenstein’s news announcement about this transaction.

Lowenstein’s representation of Dataiku its $101 million Series C funding round is profiled in the Global Legal Chronicle. The write-up notes the Lowenstein team: Ed Zimmerman, Evan M. Bienstock, Dotan Barnea, and Laura Cicirelli. View Lowenstein’s news announcement about this representation.

Matt Savare and Bryan Sterba address the major elements of open-source software (OSS) and how it is being utilized by fund managers, in an interview with the Hedge Fund Law Report. In the first of a three-part series, Savare explains blockchain’s relation to open source, and how it can facilitate the settlement of international transactions in a fraction of the standard time. Sterba provides insight into the workings of copyleft licenses, including how some organizations navigate stringent licensing requirements. In part two, Savare and Sterba discuss the benefits of OSS, including its proper use and how it can equal cost savings if implemented correctly, as well as the security risks and license restrictions. In part three, Savare and Sterba evaluate actions fund managers can take to mitigate OSS risks, including policies, procedures and controls to adopt; ways to deal with third-party vendors; and due diligence.

Ethan L. Silver was featured in both American Banker and Interactive Investor, commenting on the US Securities and Exchange Commission’s (SEC) reticence to approve new cryptocurrency, despite encouraging more discussion. Silver states that: “the practical realities are that there has been a lot of meetings and discussions that have yielded little progress." He agrees with SEC Commissioner Hester Peirce that the Howey Test – used by US regulators to determine what should be considered a security – is “overly broad.” Silver asserts that until the SEC provides clarity on how digital assets should be custodied under its existing rules, a bitcoin exchange-traded fund (ETF) will never be approved.

The PE Hub Network, The Deal, and Law360 (December 12, 2018; January 24, 2019) note Lowenstein Sandler as lead counsel to Cerberus Capital Management, L.P. in its acquisition of Sparton Corporation (NYSE: SPA). (Lowenstein deal team: Marita A. Makinen, Robert G. Minion, Jeffrey Blumenfeld, Mary J. Hildebrand, Nicholas G. Mehler, Christine Osvald-Mruz, Matt Savare, Jeffrey M. Shapiro, James C. Shehan, Michael Walutes, Jack Sidorov, Norman W. Spindel, Stuart S. Yusem, Manali Joglekar, Sabrina Cua, Allison Gabala, Megan Monson, Alex H. Rosenthal, Bryan Sterba, Matthew Tippy, Lauren E. Killeen, and Lauren M. Troeller.) (subscription required to view certain content) View Lowenstein’s news announcement about this transaction.

Valeska Pederson Hintz is quoted in Forbes in which she discusses Slack, a work-messaging tech unicorn, and the company’s plan to forego a traditional initial public offering (IPO) in favor of a direct listing this year. The article describes this as an unconventional move that could encourage other tech unicorn companies to consider a direct listing in lieu of an IPO, though this isn’t likely to become a mainstream trend. Pederson Hintz suggests that large tech unicorns are uniquely positioned to take advantage of a direct listing for their market debut because they are often well-capitalized and have brand recognition (Wealth Daily also quotes Pederson Hintz on this point). She states that direct listings are faster and cheaper than traditional IPOs. (subscription required to access article)

Ethan L. Silver is quoted in InvestmentNews addressing cryptocurrency market manipulation and custody as it relates to the possibility of a crypto-ETF entering the market in 2019. Silver states that the challenge for the SEC is how to integrate this new technology into the existing SEC rules. 

Peter D. Greene is quoted in Barron’s discussing a recent lawsuit filed against The Weather Channel app by the City of Los Angeles for dishonestly gathering and selling users’ location information to hedge funds and money managers that use such data to gain insights regarding consumer behavior. Greene notes that more suits against alternative data collection could eventually be filed and advises his clients to remain vigilant with regard to data provenance. (subscription required to access article)

Gary M. Wingens and Benjamin Kozinn are mentioned in The American Lawyer in an article discussing 2018 as a strong year for U.S. law firms. The article notes that Wingens reported Lowenstein’s 51.4 percent revenue growth over the past decade. Kozinn states the firm’s hedge fund clients, among others, recognize the whole value proposition that Lowenstein represents and provides.

In an interview with American Banker, Ethan L. Silver comments on recent attempts of startups to obtain Securities and Exchange Commission (SEC) approval for security tokens issued under Reg A. Silver reflects on the continued lack of effectiveness of such filings, asserting that the SEC will need to be confident in the protection afforded by the proposed technology in order to approve crypto assets as a legitimate investment vehicle.

StreetInsider.com, The Deal, citybizlist, The PE Hub Network (October 15, 2018; December 18, 2018), MarketWatch, Law360, Global Legal Chronicle, and Business Wire note Lowenstein Sandler as counsel to Cambium Learning Group, Inc. in its $900 million definitive merger agreement with Veritas Capital. (Lowenstein deal team: Steven E. Siesser, Elisia M. Klinka, Brooke A. Gillar, Michael J. Mueller, Lauren M. Troeller, Bianka V. Barraza, Lowell A. Citron, Jeffrey Blumenfeld, Jack Sidorov, Jeffrey M. Shapiro, Steven M. Skolnick, Kate Basmagian, Scott Siegel, Lesley P. Adamo, Sophia Mokotoff, Darren Goodman, Megan Monson, Katie R. Glynn, David W. Field, Michael A. Kaplan, Eric Jesse, Nicholas G. Mehler, Steven M. Hecht, Sean Collier, Edward J. Hunter, Zarema A. Jaramillo, Andrew David Behlmann, and Gina M. Seong.) (subscription required to access certain content) View Lowenstein’s news announcement about this transaction.

Business Wire, MarketWatch, Pharmaceutical Business Review, Cosmetics Technology, ABF Journal, Cision PR Newswire, and the Tullahoma News note Lowenstein Sandler as counsel to Crown Laboratories, Inc. (Crown Laboratories) and Hildred Capital Partners, LLC in Crown Laboratories’ acquisition of the North American distribution rights of five OTC consumer brands from GlaxoSmithKline plc (NYSE: GSK). (Lowenstein deal team: Herschel S. Weinstein, Sam E. Khan, Mitchell McDonald, Sunita Patel, James C. Shehan, Matthew P. Hintz, Sofia Kopelevich, Michael A. Buxbaum, Nicholas Gonski, Matthew Tippy, Jeffrey M. Shapiro, and Jack Sidorov. View Lowenstein’s news announcement about this transaction.

Benjamin Kozinn points to a confluence of issues present in a cracked economy which led to the 2008 global financial crisis in an interview with the Hedge Fund Law Report. In the first of a two-part series, Kozinn provides an insider’s assessment of the crisis—the causes, the role that hedge funds played, and the regulatory changes in its aftermath (including passage of the Dodd-Frank Act)—and the new focus on counterparty risk. Kozinn also provides insight into the evolution of hedge fund managers as a result of the crisis and the issues behind increased levels of scrutiny. In part two of the series, Kozinn discusses the growing importance of chief compliance and chief operating officers since 2008, growing institutionalization and scrutiny of the hedge fund business, and factors behind a 2018 decrease in fund launches. In addition, Kozinn looks at the state of financial regulation and why the next downturn will reinvigorate hedge funds and spur a search for fresh talent.

The Washington Post, The American Lawyer, Global Trade Review, Bloomberg Law – Big Law Business, Law360, The National Law Journal, the New Jersey Law Journal, International Trade Today, The Deal, TXF, and citybizlist highlight the launch of Lowenstein’s Global Trade & Policy practice in the firm’s Washington, D.C. office and the arrival of Doreen M. Edelman (practice chair), Abbey E. Baker, Andrew Bisbas, and Megan C. Bodie. The Global Trade & Policy practice will provide U.S.-based clients, foreign clients, and foreign-owned U.S. companies with compliance and policy development services. Areas of emphasis will include import tariffs and classifications, OFAC regulations and sanctions, CFIUS review protocols, and export controls. (subscription required to access certain content)

Reuters, Axios, The PE Hub Network, Food Processing Technology (October 31, 2018; November 2, 2018), Global Legal Chronicle, and just-food.com note Lowenstein Sandler as counsel to Traub Capital LLC in its acquisition of Signature Brands from The Hero Group. (Lowenstein deal team: Michael A. Brosse, Michael J. Mueller, Sabrina Cua, Justin Gindi, Lowell A. Citron, Theodore C. Sica, Nicholas Gonski, Michael Walutes, Nicholas G. Mehler, Matthew P. Hintz, Sofia Kopelevich, Darren Goodman, Megan Monson, Eric Jesse, James C. Shehan, Stuart S. Yusem, and Mitchell McDonald.) View Lowenstein’s news announcement about this transaction.

Reuters and The D&O Diary note Lowenstein Sandler as counsel to opt-out plaintiff investment funds that secured a $42.5 million settlement with VEREIT to resolve the funds’ securities fraud actions against American Realty Capital Properties Inc. (Lowenstein team: Lawrence M. Rolnick, Marc B. Kramer, Thomas E. Redburn, Jr., Michael J. Hampson, and Sheila A. Sadighi.) View Lowenstein’s news announcement about this transaction.

Business Wire, Compelo Ltd., and citybizlist note Lowenstein Sandler as legal counsel to Crown Laboratories, Inc. and Hildred Capital Partners, LLC in Crown's acquisition of Bellus Medical, which will become the new Aesthetics Division of Crown Laboratories. (Lowenstein deal team led by Sam E. Khan and Herschel S. Weinstein.)

Altdata.TV features five video interviews with Peter D. Greene. In “Peter D. Greene on web crawling,” Greene discusses what it means to be public on the internet in the context of web crawling by investment funds, violations of terms of use, and the risks of insider trading. “GDPR in Europe, GDPR lite in California” explores how GDPR may affect the purchase of data and steps for making data more GDPR-compliant and therefore more appealing to buy-side companies. In “Geo-location data from a legal perspective,” Greene discusses how Congress and the business community may take steps regarding the use of sensitive geo-location data. “Compliance/on-boarding in alternative data” looks at questions of provenance and the inclusion of personally identifiable information as the main risks of using alternative data.

Capacity Media, The PE Hub Network, Fiber Optics Online, TMCNet.com, PR Newswire (May 30, 2018; September 4, 2018), and TeleGeography note Lowenstein Sandler’s representation of Hudson Fiber Network, portfolio company of Tiger Infrastructure Partners, in its all-cash merger agreement with ExteNet Systems, Inc. (Lowenstein deal team: Michael A. Brosse, Justin Gindi, David Leit, Michael Walutes, Megan Monson, Darren Goodman, Alexandra S. Droz, Eric Jesse, Lesley P. Adamo, and Marc S. Kurzweil.)

The New York Law Journal and Law360 report on the September 6, 2018, oral argument before the New York State Court of Appeals in which Zachary D. Rosenbaum argued on behalf of Deutsche Bank National Trust Co. in its appeal from a decision dismissing as time-barred its RMBS “putback” claims against Quicken Loans Inc. Rosenbaum argued to New York’s highest court that a contractual provision defining when a cause of action for breach of representations and warranties accrues should be enforced in accordance with its plain language and does not violate New York public policy. (subscription required to access articles)

Law360 quotes Robert J. Kipnees and notes Kipnees and Michael A. Kaplan as counsel for the Union Mutual Medical Fund and its trustees in an article reporting the U.S. Court of Appeals for the Second Circuit’s rejection of a request by the Teamsters Local 210 Affiliated Health and Insurance Fund and its trustees that the court reconsider its June 2018 decision to uphold the trial court’s grant of summary judgment and an award of over $3.7 million on behalf of Lowenstein’s clients. View Lowenstein’s news announcement about the June 2018 appellate decision. (subscription required to access article)

The PE Hub Network, Cision PR Newswire, and FierceBiotech note Lowenstein Sandler as counsel to Regulatory Professionals, Inc. (RPI) in its acquisition by Premier Research. View Lowenstein’s news announcement about this transaction.

The PE Hub Network and Mergers & Acquisitions note Lowenstein Sandler as counsel to NexPhase Capital, LP in its equity stake investment in Brandt Information Services, LLC.

Law360 notes Ryan M. Wilson's and Elie Honig's arrival at Lowenstein. Wilson, a partner in the Capital Markets Litigation and White Collar Defense practices, returned to the firm after serving as an Assistant U.S. Attorney on President Obama’s Residential Mortgage-Backed Securities (RMBS) Task Force in the U.S. Attorney’s Office for the Eastern District of New York. Honig joined Lowenstein as special counsel in the White Collar Criminal Defense practice following his tenure as Director, Department of Law and Public Safety, in the New Jersey Division of Criminal Justice. Earlier, he was an Assistant U.S. Attorney for the Southern District of New York. (subscription required to access article)

The Global Legal Chronicle notes Lowenstein Sandler’s representation of Integral Ad Science in an article discussing Vista Equity Partners’ majority-stake acquisition of the company. The article notes that the Lowenstein deal team was led by Raymond P. Thek and included Peter H. Ehrenberg, Ed Zimmerman, Colin J. Kirby, Shimite Obialo, Sarah Gore, Elias Kwon, Alex Galev, Christina Lee, and Kristen Nicol, as well as support from specialists in Tax: Brian A. Silikovitz and Sophia Mokotoff; Employee Benefits & Executive Compensation: James E. Gregory, Darren Goodman, Megan Monson, and Eric Margulies; Intellectual Property Litigation: Mark P. Kesslen and Lisa A. Harvey; Antitrust & Trade Regulation: Zarema A. Jaramillo; and Privacy & Cybersecurity: Mary J. Hildebrand. View Lowenstein’s news announcement about this transaction.

The Washington Post quotes Jeffrey Blumenfeld in an article discussing the implications of the Supreme Court’s decision to leave in place a ruling that allows American Express to enact “anti- steering provisions” on merchants who accept its credit cards. Blumenfeld notes that, since this decision will not change how American Express interacts with merchants, it’s an open question whether it will have an effect on merchants’ pricing.

The Hedge Fund Law Report conducts an in-depth interview with Peter D. Greene regarding the GDPR’s impact on private funds’ use of alternative data. Issues addressed include how the GDPR might affect how funds buy and use alternative data; how the GDPR may impact funds’ internal generation or gathering of alternative data; funds’ due diligence in data vendor selection; and immediate steps funds can take to ensure GDPR compliance. 

The New York Law Journal (including this abbreviated coverage), Law360, and ABL Advisor highlight Ryan M. Wilson’s return to Lowenstein, now as partner in the Capital Markets Litigation and White Collar Defense practices, following his tenure as an Assistant U.S. Attorney on President Obama’s Residential Mortgage-Backed Securities (RMBS) Task Force in the U.S. Attorney’s Office for the Eastern District of New York. Law360 quotes Wilson on his government experience and mentions Zachary D. Rosenbaum (Chair, Capital Markets Litigation) as a draw in coming back to the firm. All three articles quote Wilson on his reasons for returning to Lowenstein, and they note that Wilson is the latest in a series of former prosecutors and trial lawyers to join or return to the firm. Each article mentions one or more of the following former government lawyers who have come to Lowenstein in the past few years: Christopher Porrino (Chair, Litigation Department), Kathleen A. McGee, Elie Honig, Scott B. McBride, and Matthew Boxer. (subscription required to access the New York Law Journal and Law360)

Law360 quotes Robert J. Kipnees and notes Kipnees and Michael A. Kaplan as counsel to the Union Mutual Medical Fund (UMMF) and its trustees in an article discussing UMMF’s 2^nd Circuit victory in a 10-year litigation against the Teamsters Local 210 Affiliated Health and Insurance Fund and its trustees. View Lowenstein’s news announcement about the court's decision. (subscription required to access article)

MarTech Series, Markets Insider, 4-traders.com, The PE Hub Network and citybizlist highlight Lowenstein Sandler as legal counsel to global software company Integral Ad Science in its majority-stake acquisition by leading private equity firm Vista Equity Partners.

Cosmetics Technology and Business Wire note Lowenstein Sandler as legal counsel to New Mountain Capital and portfolio company Topix Pharmaceuticals, Inc., in their acquisition of DERMA E. (Lowenstein deal team: Marita A. Makinen, David L. Goret, Matt Savare, Michael Walutes, Darren Goodman, Eric Jesse, Manali Joglekar, Marc S. Kurzweil, Kimberly E. Lomot, Justin Gindi, Tim Janas, Megan Monson, Leah Satlin, and Jacob D. Unger.)

The PE Hub Network notes Lowenstein Sandler as legal counsel to Fenway Partners and affiliated investors in those entities' acquisition of Iconic Group.

Law360 quotes Ed Zimmerman on the pent-up demand for IPOs by an increasing number of venture-backed technology companies. (subscription required to access article)

Law360 quotes Lawrence M. Rolnick regarding a decision by the Delaware Chancery Court ordering Kindred Healthcare Inc. to extend or delay a stockholder vote on its proposed $4.1 billion sale to a consortium consisting of Humana Inc. and two private equity firms. Lowenstein represents Brigade Capital Management LP, an activist investor opposed to the deal.

WSJ Pro Venture Capital quotes Julie Levinson Werner on how the National Venture Capital Association’s (NVCA) issuing revised model human resources policies to combat sexual harassment in the VC industry is part of a broader trend across sectors to address and prevent harassment. As a member of the NVCA HR Policy Subcommittee, Werner assisted in drafting and reviewing the model policies. (subscription required to access article)

In a three-part article, the Hedge Fund Law Report quotes Peter D. Greene and Benjamin Kozinn regarding fund managers’ collection (often through vendors) and use of big data, liability risks associated with acquisition and use of material nonpublic information, and data privacy issues surrounding access to and use of personally identifiable information.

In an exclusive Q&A with the Jefferies Capital Consulting team, Peter D. Greene discusses legal and regulatory issues that emerge with the rise of alternative data.

In IA Watch, Scott H. Moss discusses best practices for investment advisers to remain SEC compliant when engaging in cross trades and principal transactions.

Peter D. Greene comments in Pensions & Investments on the growing trend of hedge fund managers responding to the needs of institutional investors.

Steven M. Hecht comments in Law360 regarding the impact the Delaware Supreme Court's impending ruling in the DFC Global case will have on appraisal actions.

Benjamin Kozinn discusses regulatory changes affecting the hedge fund industry in an exclusive interview with the Hedge Fund Law Report. 

In Hedge Fund Legal & Compliance Digest, Scott Moss discusses common compliance deficiencies for investment advisers.

Lawrence Rolnick comments in Law360 about the proactive approach taken by Appaloosa to correct a questionable agreement that could have resulted in two bankrupt companies.

In Corporate Counsel, Matt Savare comments on the dilemma that offensive speech creates for social media channels such as Twitter.

Ed Nadel comments in Hedge Fund Alert on why younger managers are coming up with innovative fee structures.