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The Week in Securities Litigation: 2 Split Decisions For The SEC, Another Galleon-Related Insider Trading Case Brought

Budgets were a key topic this week. The President proposed one which would increase the SEC's funding. The agency also proposed a budget for FY 2013 which would increase the size of the Enforcement Division by adding 191 positions.

In Court the SEC had two split decisions. In one action centered on market timing claims, the SEC prevailed after trial on a late trading charge but the court rejected its assertion that market timing violated the antifraud provisions. In another case in which the agency is seeking to compel SIPIC to act regarding certain victims of the Stanford Ponzi scheme, the court partially sustained its and ordered additional briefing on procedural questions.

Finally, the Commission brought another Galleon related insider trading case in conjunction with the Manhattan U.S. Attorney's Office. It also settled one of its longest running market crisis actions on the eve of trial.

The Commission

Budget: The Commission's proposed FY 2013 budget requests funding for a total of 1,545 positions for the Division of Enforcement. This would represent an increase of 191 positions above FY 2012 levels. During FY 2011 the Division, which is the Commission's largest, filed 735 enforcement actions. That is more than in any other single year in the Commission's history. The division also obtained more than $2.8 billion in penalties and disgorgement ordered in FY 2011.

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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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