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...
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.
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...