Tagged: legal

Massachusetts & Montana Continue Assault on SEC & Regulation A+

Montana Massachusetts Take AIM at SEC

As aptly stated in one publication, Massachusetts and Montana are giving Regulation A+  – an F.  While the failing grade is perplexing to most casual observers, the battle over this new investment crowdfunding exemption and the petitioning states is nowhere near completion. In a filing… Read More

Brief: Law Firm Ballard Spahr Forms “Marketplace Lending Task Force”

Marketplace Lending 2

National law firm Ballard Spahr has announced the creation of a “Marketplace Lending Task Force” to assist the growing number of direct lending platforms manage the challenges of getting big – fast.  Recently there has been additional regulatory interest by the federal government. The US… Read More

Recent Lawsuit May Show Big Liability Risk for Crowdfunding Platforms

Danger Electricution

Crowdfunding, and using the internet to raise money for an increasing number of industry sectors, is still in its infancy. It is really the internet that is the disruptive innovation. It is this technology that is altering the funding process and crowdfunding has become the term… Read More

A Prominent Attorney Sees Regulation A+ as Perfect to Raise Debt Capital

Debt vs Equity

Title IV of the JOBS Act fixed some of the issues swirling around old Regulation A.  Lightly utilized in its previous incarnation, Regulation A+ (as it is commonly called) created two different funding tiers which allow non-accredited investors access to a new securities exemption and… Read More

Legal: Drafting the Regulation A Offering Statement

Money Benjamin Franklin 100

If your company has decided to take advantage of the new avenues for reaching investors under Regulation A, the biggest task you face will be preparing an offering statement that includes mandatory disclosures about the offering and the offeror, and obtaining Securities and Exchange Commission… Read More

Online Legal Service Marketplace UpCounsel Captures $10 Million in Series A Funding Led by Menlo Ventures

Upcounsel

UpCounsel, an online marketplace for legal services, announced it has secured $10 million in Series A funding to accelerate further adoption of its on-demand legal marketplace. New investor Menlo Ventures led the funding round with participation from previous investors including Homebrew and Metamorphic Ventures. The company has raised $13.9… Read More

Litigation Funding Site LexShares Welcomes Institutional Funding

LexShares US Litigation Market

LexShares, an online marketplace that matches plaintiffs litigation to investors says it is “open to institutional investors”.  The crowdfunding platform states its model of crowdfunding has not changed but it will now allow individual investors participate alongside big money.  The site did not announce it… Read More

SEC Issues Cease & Desist Order To “EB-5” Investment Companies For Acting As Unregistered Broker-Dealers: This Matters to the Crowdfunding Industry

SEC Enforcemnt

  Last week the U.S. Securities and Exchange Commission (SEC) issued  a Cease and Desist Order (the “Order” embedded below) against two related companies for acting as unregistered broker-dealers in connection with the sale of securities under the “EB-5” Investor Program (also sometimes referred to… Read More

Kickstarter Wins Crowdfunding Patent Lawsuit Against ArtistShare

Winner

Kickstarter has achieved a major victory in federal court today, marking the end of a four-year-long patent dispute. In 2011, ArtistShare, which was founded Brian Camelio, was issued a patent for “Method and Apparatuses for Financing and Marketing a Creative Work,” claiming “a system and method for… Read More

SEC Staff Provides Early Guidance on Use of Regulation A+

SEC Regulation A+

  On June 23, 2015, the Staff of the Securities and Exchange Commission provided some public guidance on certain issues arising under the new Regulation A+ Final Rules. In a new section of the SEC’s Compliance and Disclosure and Interpretations (C&DI’s),  a Q and A… Read More

Patch Of Land Now Offers a Truly “Secured” Investment Structure

Securing Your Money

As you may remember, in an earlier post entitled “Investor Protection Issue – Why You May Want To Reconsider How “Secure” You Feel About Your Real Estate Crowdfunding Investment,” I took issue with the fact that the majority, if not all, currently offered Real Estate… Read More

Crowdfunding Platform CrowdJustice Launches For “Public Interest” Litigation

CrowdJustice 1

On Friday, new UK crowdfunding platform CrowdJustice officially opened its doors to those seeking funds for their latest legal situations. According to TechCrunch, CrowdJustice was founded by ex-United Nations lawyer, Julia Salasky, and is considered a crowdfunding platform for “public interest” litigation. She explained: “CrowdJustice… Read More

Law Firm Stephens Scown Forms Partnership With Crowdfunder in Landmark Deal For Professional Sector

Poole Gerghty

Legal firm, Stephens Scown, has partnered with Crowdfunder UK to become a sponsor of Crowdfunder Local in the South West covering the Crowdfund Devon, Cornwall, Somerset and Dorset regions. The rewards-based crowdfunding platform works with businesses, charities and community groups to help them raise funds from the… Read More

Part II: Due Diligence to Identify “Bad Actors” In Private Offerings under Rule 506

Wanted Poster White Collar Crime FBI Bad Actor

This the second part, of a two part series, reviewing Bad Actors in private placements.  The first article may be viewed here. The Securities and Exchange Commission (SEC) issued new Rule 506(d) in 2013, a rule that bars felons and other specified “bad actors” from… Read More

Identifying “Bad Actors” In Private Offerings under Rule 506

Stop Bad Actors Bernie Madoff

This article is part one, of a two part discussion, on Identifying Bad Actors for private placements. In 2010, as part of the aftermath of the Global Financial Crisis of 2008, Congress adopted the Dodd-Frank Wall Street Reform and Consumer Protection Act. While most of… Read More

CrowdDefend: Using Crowdfunding to Balance the Scales of Justice

CrowdDefend

To expand access to legal justice for those who can’t otherwise afford it, a new national crowdfunding platform, CrowdDefend, will publically launch this week. CrowdDefend helps individuals, organizations and businesses raise funds to cover legal representation, court fees and associated trial costs for cases large… Read More

Lock it up: SEC & FINRA Weigh in on Cybersecurity Issues

Padlock and chain

Early in 2014, the U.S. Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced its intention to conduct an examination of certain registered broker-dealers and investment advisers in order to assess the general vulnerability of the securities industry, as a whole, to cyber-attacks…. Read More

Cleveland Attorney Launches GoFundMe Campaign to Pursue Legal Action Against Lena Dunham & Her Memoir’s Publisher

Lena Dunham 1

Earlier this fall, “Girls” star Lena Dunham released her book Not that Kind of Girl. The new memoir exposed untold stories about the actress, including a sexual assault during her days at Oberlin College. Now, the man that was apparently involved in the situation, who is… Read More

Com1 Android Watch Crowdfunding Campaign Disappears from Indiegogo; Reveal Copyright War with Google

Com 1 3

Earlier this month, Com1 launched a crowdfunding campaing on Indiegogo to raise funds for its “first Android Wear” smartwatch. The plan was for the watch to be sold for a price of $125 ($175 for the stainless steel or aluminum), the project wanted to raise… Read More

Texas Family Crowdfunding Appeal To Stop Keystone XL Pipeline On Their Farm

transcanada-logo

TransCanada and its American subsidiary, Keystone, are in the midst of seeking approval for a new pipeline to run from Alberta’s tar sands to refineries on the Gulf Coast. Called the Keystone XL pipeline, it is a highly controversial project that has its passionate supporters… Read More