The Commission won a significant victory this week in the Second Circuit Court of Appeals in its Citigroup litigation. While technically the Court only granted a stay of the proceedings in the district court, the panel's evaluation of the probability of success on the merits and the overall tone of the opinion clearly reflected the SEC's position that the District Court overstepped its limited role in the settlement process.
The SEC also brought its first cases arising out of its year long investigation into the pre-IPO market and another market crisis case. The DOJ continued to focus on FCPA enforcement, resolving another inquiry with a deferred prosecution agreement. The CFTC stepped up enforcement, filing a settled action against a Goldman Sachs unit while the FSA announced the resolution of a significant market crisis case.
Finally, Cornerstone Research released its report on securities class actions. It shows a significant drop in settlements last year but suggests that there may be an increase in the future of class actions with a parallel SEC enforcement component.
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For more cutting edge commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.
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