Blog Archives

This Week In Securities Litigation (For the period Jan. 13 – 27, 2017)

During a two week period divided by the Inauguration, the Commission filed just under 40 actions. Chair Mary Jo White stepped down from her position at the agency after delivering her departing remarks at the New York Economic Club. In

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SEC Sanctions Citi, Morgan Stanley Tied To Forex Trading Program

The SEC has continued to closely scrutinize disclosures related to trading in the markets. Its most recent cases involved Citigroup and Morgan Stanley. The actions are based on not disclosing that models used to market a product contained assumptions that

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This Week In Securities Litigation (Week ending December 23, 2016)

As the Christmas and holiday season approaches, the SEC brought a series of actions. Those included two settled FCPA actions filed in tandem with the DOJ, one of which also involved foreign regulators and the payment of about $3.5 billion.

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This Week In Securities Litigation (Week ending December 9, 2016)

The Supreme Court handed down its much anticipated decision in Salman this week, essentially reaffirming its seminal decision on illegal tipping in Dirks. In affirming the Petitioner’s conviction the Court rejected his contention that the personal benefit to the tipper

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This Week In Securities Litigation (Week ending Oct. 7, 2016)

Insider trading was the focus this week, with the Supreme Court hearing argument in Salman v. U.S. The argument centered on the meaning and application of the Court’s 1983 decision in Dirks which drew a line between the prohibited an

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This Week In Securities Litigation (Week ending August 26, 2016)

Numbers were the focus this week as the Commission filed 81 administrative proceedings (must be near fiscal year end) and two civil injunctive actions. Seventy-one of the actions involved municipal issuers who self-reported under the Municipalities disclosure initiative. Another ten

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SEC Charges Private Equity Advisers With Inadequate Disclosure

The Commission has brought a series of cases against private equity centered on undisclosed fees and conflicts of interest – key areas of interest during OCIE exams. The latest proceeding in this string of cases involves four private equity advisers

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This Week In Securities Litigation (Week ending January 29, 2016)

Washington spent much of this week digging out from a monster snow storm which left the government closed for two full days and reporting for work on a delayed based for two others. Two recent reports from Cornerstone Research chart

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This Week In Securities Litigation (Week ending January 22, 2016)

The Newman personal benefit test in insider trading tipping cases is front and center this week as the Supreme Court agreed to consider the issue. The Court passed on the opportunity to consider the question when first presented in Newman

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SEC-IA Settle Disclosure Case

It is fundamental that investment professionals accurately disclose their polices and procedures and adhere to them. Yet an increasing number of proceedings are being brought by based on failing to follow to those procedures. In the Matter of Equinox Fund

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This Week In Securities Litigation (Week ending October 30, 2015)

The SEC’s apparent preference for administrative proceedings as a venue for its enforcement actions continues to draw criticism. H.R. 3798 is now pending in the House of Representatives. The bill is tilted the “Due Process Restoration Act of 2015.” It

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UBS Settles Structured Note Case with SEC

The Commission brought its first case tied to inadequate disclosure regarding structured notes. The complex instruments, a debt security linked to a derivative tied to the performance of other products, are frequently marketed to relatively unsophisticated retail investors. In the

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SEC Settles With Blackstone On Disclosure Issues

The SEC’s Asset Management Unit continues to review and analyze fees, expenses and the related disclosure at private equity firms. The Unit has encouraged advisers to self-report these issues. The most recent action emanating from the review involves three Blackstone

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Broken Windows Continues: SEC Brings Group of Actions Centered on Section 13(d)(2) Violations

The “broken windows” approach to enforcement is alive, well and continuing. This time the Commission bundled together three groups of actions and eight proceedings, all centered on a failure to update disclosures tied to going private transactions: In the Matter

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This Week In Securities Litigation (Week ending January 23, 2015)

The SEC named ratings giant Standard & Poor’s in three actions this week and one of its senior executives in another. The firm settled all three actions, admitting to a series of facts but not violations of the law in

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This Week In Securities Litigation (Week ending July 11, 2014)

A review of SEC and securities enforcement actions this week

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This Week In Securities Litigation (Week ending March 14, 2014)

A review of SEC enforcement and securities litigation this week.

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This Week In Securities Litigation (Week ending November 16, 2012)

The Commission announced that its enforcement program remains vibrant, having filed just one less action last year that its record setting 735 actions in the prior fiscal year. The enforcement program is being bolstered by over 3,000 whistleblower complaints that

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THE SEC’S FIRST ACTION INVOLVING A DARK POOL

Dark pools have been a subject of concern to Congress, the SEC and the public for years. Despite those concerns the pools are used by institutional and other large traders to cloak their trading activity and minimize its market impact.

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