Recent Posts

Cornerstone, NERA Reports Chronicle Securities Class Action Filings For 2012
Posted on 7 Aug 2012 by Thomas O. Gorman

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... Read More

6th Circuit Affirms Dismissal of Securities Class Action Based on SLUSA
Posted on 21 Sep 2011 by Thomas O. Gorman

The Sixth Circuit Court of Appeals affirmed the dismissal of a securities class action tied to the market crisis and brought against three mutual funds issued by Morgan Keegan Select Fund, Inc., an open-ended investment company. Atkinson v. Morgan Asset... Read More

The Week In Securities Litigation: SEC Announces 3 Victories In Court, Files 4 New Actions
Posted on 10 Mar 2012 by Thomas O. Gorman

This week the Commission announced three victories in court and filed four new civil injunctive actions. At the same time long simmering matters moved forward. Reuters reports that the new DOJ task force, created in the wake of the President's state... Read More

The Week In Securities Litigation: Madoff Brother Agrees To Plead Guilty To Criminal Charges
Posted on 4 Jul 2012 by Thomas O. Gorman

There were news reports this week that Ponzi king Bernard Madoff's brother, Peter, has agreed to plead guilty to criminal charges that will land him in jail for ten years. At the same time the NY AG settled a case against a the operator of Madoff... Read More

This Term, U.S. Supreme Court Agrees To Hear 2 Significant Securities Cases
Posted on 17 Oct 2012 by Thomas O. Gorman

The first Monday in October is the opening day of the new Supreme Court term. In recent years the Court has heard a number of securities cases, considering issues regarding class certification in Erica P. John Fund v. Halliburton, 131 S. Ct. 2179 (2011... Read More

The Week In Securities Litigation: SEC Brings Action Against 8 Fund Directors, 2 Actions Focused On Chinese Issues
Posted on 14 Dec 2012 by Thomas O. Gorman

The SEC brought an action against eight fund directors, six of whom were independent and members of the audit committee, alleging that they caused material misstatements in the valuation of fund assets by failing to implement proper standards. The agency... Read More

SEC Files 2 More Settled Insider Trading Actions
Posted on 27 Jan 2012 by Thomas O. Gorman

After resolving insider trading charges against Diamondback Capital in the Dell insider trading cases, the Commission filed two more settled insider trading actions. SEC v. Shafer, Civ. Action No. 1:12-CV-00062 (S.D. Ohio Filed Jan. 24, 2012); SEC v.... Read More

The Week In Securities Litigation: Mary Jo White Becomes 31st Chairman Of SEC
Posted on 13 Apr 2013 by Thomas O. Gorman

Mary Jo White became the thirty-first chairman of the SEC this week. Ms. White take the helm of an agency at a cross-roads. While it has made great strides since the beginning of the financial crisis and a series of scandals many have questioned the vigor... Read More

The Week In Securities Litigation: SEC Files 4 Settled Market Crisis Actions
Posted on 20 Jul 2012 by Thomas O. Gorman

The Commission entered into another deferred prosecution agreement this week while filing four settled market crisis actions. The agency also brought an unusual insider trading case centered on selling shares in a secondary offering and an accounting... Read More

The Week in Securities Litigation: White Testifies At Confirmation Hearing, SEC Brings Another Action
Posted on 18 Mar 2013 by Thomas O. Gorman

Mary Jo White, selected by the President as the next Chairman of the SEC, testified in her confirmation hearings before a Senate Committee {last] week. Ms. White promised the Committee that under her the agency would complete rule making for Dodd-Frank... Read More

Securities Litigation This Week: U.S., UK Courts hand Down Sentences For Securities Fraud
Posted on 26 Aug 2011 by Thomas O. Gorman

The price of gold continues to spiral upward this week while the European banking crisis continued. As the crisis has unfolded European regulators took steps to preclude the short sale of shares in financial institutions. At the same time FINRA issued... Read More

The Week in Securities Litigation: 2 Split Decisions For The SEC, Another Galleon-Related Insider Trading Case Brought
Posted on 18 Feb 2012 by Thomas O. Gorman

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... Read More

The Week In Securities Litigation: SEC Focuses On Insider Trading, PCAOB Settles Action, Ashland Rulings
Posted on 5 Aug 2011 by Thomas O. Gorman

The Commission took the unprecedented of dismissing the insider trading action against former Goldman Sach director Rajat Gupta, noting that he challenged the administrative proceeding in district court. The SEC reserved the right to file a federal court... Read More

The Week In Securities Litigation: FCPA A Focus, SEC Prevails In Court
Posted on 4 May 2013 by Thomas O. Gorman

The FCPA continued to be a focus this week. Another Alstrom executive was added to a pending criminal prosecution in a superseding indictment charging FCPA violations and money laundering. In court the Commission prevailed in the D.C. Circuit as well... Read More

Lessons From 2 SEC Losses In Court
Posted on 19 Jan 2011 by Thomas O. Gorman

Financial fraud and insider trading have long been priorities for SEC enforcement. Years of enforcement experience should give the agency expertise in these matters. That expertise coupled, with a judicious use of prosecutorial discretion, and a recognition... Read More