LexisNexis® Legal Newsroom
Chinese Company Accuses Nasdaq of Racism

Greetings from somewhere above the Midwest on my way to speak at the OneMedPlace conference in San Francisco this week, with the latest RM news. Barron's reports that a lawsuit was filed this past Thursday against Nasdaq by CleanTech Innovations (CTEK) which was delisted from Nasdaq over a year...

More on Chairman Issa and Projections

As mentioned below, House Oversight Committee Chair Darrell Issa sent a letter recently to SEC Chairman Mary Schapiro requesting information about IPOs. One of his concerns was the rules about disclosing forward-looking information, including projections about future financial performance. In the...

Flash: SEC Brings $6MM Fraud Claim vs. “Footnote 32″ Shell Operators

In what I believe is the first real case of its kind, the SEC has brought an enforcement case against six individuals, claiming that they created 15 bogus shell companies between 2006 and 2011 and earned $6 million in the process. In its press release, the SEC said the team set up companies pretending...

Analysis of New Reg D End of Solicitation Ban Rules: Parts I-III

With unusual speed, the SEC released its proposed rules on ending the ban on general solicitation and advertising in Regulation D Rule 506 offerings to accredited investors yesterday, the same day as the SEC hearing on the subject. I have scoured pretty much all of it and thought I would jot down some...

Analysis of New Reg D End of Solicitation Ban Rules: Part IV

The last factor the SEC's rule proposal ending the ban on general solicitation in Regulation D offerings suggests that issuers consider in verifying someone's status as an accredited investor is the nature of the offering. What they mean by this is how you go about soliciting investors. For...

Is The Time Ripe for a Finder’s Exemption to SEC Broker-Dealer Registration?

The current issue of The DealFlow Report highlights the continuing effort of the American Bar Association to pressure the Securities and Exchange Commission to develop a method for intermediaries in securities transactions who are not registered broker-dealers to "come out of the shadows" and...

Double Check Those Legal Opinions

The DealFlow Report last week brings us the story of another attorney accused of issuing false legal opinions to get restrictive legends removed from stock certificates where the shares allegedly were not registered, nor was an exemption from registration available which would have permitted the removal...

Conflict Minerals Rule Challenged in Court

The National Association of Manufacturers and the US Chamber of Commerce have filed a lawsuit with the goal of reversing the SEC rules implemented in August, under the Dodd-Frank Act of 2011, requiring disclosure of "conflict minerals." The rules go into effect in 2014. Dodd-Frank enacted...

PCAOB Starts Observation of Chinese Audits

Reuters and The Reverse Merger Wire are reporting that the Public Company Accounting Oversight Board (PCAOB), which regulates auditors of US public companies, has gone through its first round of observations of Chinese regulators' reviews of auditors in China. For several years the Chinese regulators...

Decimalization Issue Not Dead

We learn from The DealFlow Report that the SEC has scheduled a roundtable on the issue of decimalization of stock prices, which may include discussion of possible pilot programs to try different plans to increase "tick sizes" between bid and ask prices in the markets. The Jumpstart our Business...