Trends in the filing of securities class actions are chronicled in reports issued by Cornerstone Research and NERA Economic Consulting for the first half of 2012. The two reports agree on a number of items but differ on the overall trend regarding the...
During 2011, plaintiffs filed a wave of securities class
action lawsuits against U.S.-listed Chinese companies. There were 39 of these
lawsuits filed in 2011 (out of 218 total securities class action lawsuit
filings in 2011), as discussed here .
The SEC filed a fraud action against Edward Ellis, Sr.
and Jennifer Seidel, alleging that the two defrauded investors in connection
with the purchase of shares in their company, Sederon, Inc. SEC v. Ellis, Civil
Action No. 12-cv-1203 (E.D. Pa. Filed...
Market crisis cases continue to be a central focus for
enforcement officials. The new DOJ task force christened in the President's
State of the Union address is hard at work trying to determine the origins of
the market crisis and who, if anyone...
Following close on the heels of the El Paso opinion and
the discussion at Tulane last week, one Goldman Sachs employee just had a Jerry Maguire moment - and in a big way - the New York Times opinion page . Greg Smith, now a former
director at Goldman...
Shares of privately held high tech companies, such as
Facebook and Twitter, have attracted significant investor interest. Many have
sought to purchase shares in anticipation of the initial public offering of
securities in these companies. As a result...
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...
In a sharply worded March 15, 2012 per curiam
opinion ( here ),
a three-judge panel of the Second Circuit granted the motions of Citigroup and
the SEC to stay district court proceedings in the SEC's enforcement action
against the company, so...
The SEC won a significant victory in its Citigroup market
crisis case last week. A panel of the Second Circuit Court of Appeals concluded
that the Commission has a probability of success on the merits while chiding
the district court for not deferring...
When the SEC announced an initiative to encourage
cooperation with its enforcement investigations by individuals a key focus was
speed and efficiency for the Division. The idea was that a cooperating witness
could speed investigators through the mountain...
Insider trading continues to be a key focus of the SEC as
well as the DOJ. In SEC v. Griggs, Case No CV 12-2203 (C.D.Ca. Filed
March 15, 2012) the Commission brought an action against Noah J. Griggs, Jr., a
person who worked his way up at CKE Restaurants...
Though down from the previous year on both an absolute
and a relative basis, securities class action lawsuit filings against life
sciences companies remained a significant component of all securities class
action lawsuit filings during 2011, according...
Office of Compliance Inspections and Examinations ("OCIE") mission is to
protect investors through its nationwide examination and inspection program. Examiners
in Washington DC and in the SEC's 11 regional offices conduct...
In the Griggs insider trading case discussed
yesterday ( here ) defendant Noah
Griggs, Jr. ended his career by trading in the shares of his company prior to
its acquisition. Only civil charges were brought against Mr. Griggs. A more
extreme case involves...
As part of the SEC's new National
Exam Program Overview , OCIE highlights six areas of focus for Investment
"[T]he Program has identified specific strategic areas on
which to focus when examining firms.... In FY2012, focus areas...
The Commission provided congressional testimony on
international matters this week, while also issuing an alert regarding the
municipal securities market and an Investor Bulletin. Enforcement announced
that it has declined prosecution to an individual...
Power Group, Ltd. , Exchange Act Rel. 66611, March 15, 2012
Depository Trust suspended clearing and settlement of International Power
Group's stock. It did so because the Commission had previously brought a civil action
The Supreme Court rejected the approaches of two Circuit
Courts to tolling the limitation period for bringing an Exchange Act Section
16(b) claim while failing to decide if that period can be tolled. The High
Court rejected the conclusion of the Ninth...
Last week the Commission declined to prosecute a senior
executive at AXA Rosenberg who entered into a cooperation agreement. The
announcement detailed the reasons for the action, including his assistance to
the staff as well as the fact that he had...
In rare acts of bipartisanship, the House and Senate
passed two securities bills this week. One is the JOBS act which has little to
do with creating jobs and lots to do with simplifying the regulatory requirements
for certain companies post-IPO while...
The Commission filed another strict liability, SOX 304
action, seeking to clawback certain CEO and CFO compensation. This time the
defendants are Michael Baker and Michael Gluck, respectively, the CEO from 1997
through February 2009, and CFO from May...
The Commodity Futures Trading Commission filed an
enforcement action against the Royal Bank of Canada alleging a years long,
riskless wash sale scheme conducted by a small group of RBC personnel to
generate certain lucrative Canadian tax benefits....
On an annualized basis, the pace of securities class
action lawsuit filings fir the first quarter of 2012 ran above historical
averages, although the pace of filings declined compared to the prior
month in the quarter's second and third months...
At the start of the second quarter the focus was on the
White House where two pieces of securities litigation were signed into law by
the President. First, the STOCK Act, prohibiting the already illegal insider
trading by Congress was signed. Later...