Securities

Recent Posts

A Securities Litigation Stalwart Takes a Loss
Posted on 8 Nov 2010 by Kevin M. LaCroix

Although the world of electoral politics may seem distant from the directors' and officers' liability arena, there was one development in Tuesday's elections that potentially could affect the D&O claims environment, and it happened... Read More

This Week in Securities Litigation (Week ending May 8, 2015)
Posted on 8 May 2015 by Thomas O. Gorman

The debate over waivers WKSI waivers and other similar provisions continued this week. The Commission granted a WKSI waiver to Deutsche Bank despite a guilty plea to criminal felony charges but only over the dissent of Commissioner Stein. The agency... Read More

This Week in Securities Litigation (Week ending May 23, 2014)
Posted on 27 May 2014 by Thomas O. Gorman

SEC Chair Mary Jo White indicated in comments this week that the agency plans to make greater use of Exchange Section 20(b) in the future. That section generally provides for imposing liability on those who cause another to violate the federal securities... Read More

This Week in Securities Litigation (October 14, 2011)
Posted on 14 Oct 2011 by Thomas O. Gorman

This week three Galleon related defendants were sentenced to prison for insider trading, including Raji Rajaratnam. The Commission filed another significant market crisis case naming the senior officers of a failed bank as defendants. The Commission... Read More

This Week In Securities Litigation (Week ending November 21, 2014)
Posted on 21 Nov 2014 by Thomas O. Gorman

The Commission filed another settled FCPA action this week. The proceeding named two U.S. citizens living abroad as Respondents. The DOJ issued an Opinion discussing successor liability. The DC Circuit agreed to rehear the suit which challenged the... Read More

This Week in Securities Litigation (October 21, 2011)
Posted on 21 Oct 2011 by Thomas O. Gorman

Eight SEC Enforcement attorneys were recognized by the Counsel of the Inspector General on Integrity for Excellence in connection with their work regarding the investigation of a significant market crisis case. The Commission filed its third significant... Read More

Did the DOJ and the SEC Go Soft on Business Crime?
Posted on 11 Jul 2011 by Thomas O. Gorman

In recent years DOJ and SEC prosecutors have adopted a new, more lenient approach toward business organizations engaged in wrongful conduct according to a recent New York Times article. This is evidenced by the increased use of non-prosecution and... Read More

This Week In Securities Litigation (Week ending May 16, 2014)
Posted on 16 May 2014 by Thomas O. Gorman

The Commission got split decisions in court this week. It prevailed in one high profile trial, obtaining a jury verdict in its favor. It lost a significant summary judgment motion regarding the statute of limitations resulting in the dismissal of the... Read More

This Week In Securities Litigation (Week ending November 2, 2012)
Posted on 2 Nov 2012 by Thomas O. Gorman

In a week when the financial markets were shut for two days by hurricane Sandy, the Commission filed actions focused on insider trading, financial fraud, false advertising, and, in addition, a stop order proceeding. One insider trading case stems from... Read More

This Week In Securities Litigation (Week ending November 7, 2014)
Posted on 7 Nov 2014 by Thomas O. Gorman

This week the SEC and the DOJ filed a settled FCPA action. The disgorgement paid by the issuer put the case at number ten on the list for the largest such amounts paid in an SEC FCPA case. The Commission brought cases in groups this week. Broken windows... Read More

This Week in Securities Litigation (Week ending September 18, 2015)
Posted on 18 Sep 2015 by Thomas O. Gorman

The Yates Memo, refocusing DOJ criminal and civil corporate investigations, continues to be the critical topic of discussion this week. The Memo, discussed here , directs that individuals be the focus of the inquiry from the beginning. Perhaps more importantly... Read More

This Week In Securities Litigation (Week ending November 30, 2012)
Posted on 3 Dec 2012 by Thomas O. Gorman

This week SEC Chairman Mary Schapiro announced her resignation, effective December 14, 2012. Commissioner Walter was designated as Chairman, effective after Ms. Schapiro's departure. Ms. Walter has indicated she will only remain as a member of... Read More

This Week in Securities Litigation (January 20, 2012)
Posted on 20 Jan 2012 by Thomas O. Gorman

Insider trading, implementing Dodd-Frank, asset valuations and old scandals dominated the securities enforcement litigation this week. The U.S. Attorney's Office in Manhattan and the SEC brought more high profile insider trading cases focused on... Read More

Inadequate Loan Loss Reserve Disclosure Case Dismissed
Posted on 20 Aug 2010 by Kevin M. LaCroix

In a recent post , I discussed several recent decisions in which securities cases involving failed or troubled banking institutions survived dismissal motions. By contrast, however, in an August 16, 2010 ruling ( here ), Southern District of New York... Read More

Former Bear Stearns Auditor to Pay Nearly $20M to Settle Securities Law Claims
Posted on 12 Jun 2012 by LexisNexis® Mealey's™ Legal News

NEW YORK - The former independent outside auditor for The Bear Stearns Cos. Inc. agreed on Monday to pay nearly $20 million to settle shareholder claims that it failed to accurately monitor the financial giant's internal controls with regard to... Read More