Securities

Recent Posts

IR Executive Settles SEC Reg FD Charge While Cooperation Wins Company a Declination
Posted on 10 Sep 2013 by Thomas O. Gorman

The SEC filed a settled administrative proceeding charging a former head of investor relations with violating Regulation FD. The Commission elected not to charge the company, however, based on its culture of compliance and cooperation. In the Matter of... Read More

This Week in Securities Litigation (Week ending July 17, 2015)
Posted on 17 Jul 2015 by Thomas O. Gorman

The U.S. Chamber of Commerce published a report containing a series of recommendations regarding the SEC’s Enforcement program. Several recommendations focused on the use of administrative proceedings, including one which would permit a Respondent... Read More

This Week In Securities Litigation (Week ending September 5, 2014)
Posted on 5 Sep 2014 by Doug Esten

The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed conflicts; a failure to have... Read More

This Week in Securities Litigation (Week ending September 26, 2014)
Posted on 26 Sep 2014 by Thomas O. Gorman

The Commission announced its largest whistleblower action this week – an award to a person overseas of over $30 million. The agency also filed a series of actions this week. They included three insider trading case, two as administrative proceedings;... Read More

This Week in Securities Litigation (Week ending February 20, 2015)
Posted on 20 Feb 2015 by Thomas O. Gorman

The Commission recently filed an amicus brief defending its Dodd-Frank whistleblower rules. Those rules specify that the anti-retaliation provisions of those amendments to the Exchange Act protect those who chose not to report to the Commission but only... Read More

Court Rejects Rating Agencies' Argument that Credit Crisis Alone Caused Investor Losses
Posted on 29 Apr 2010 by Kevin M. LaCroix

In a April 26, 2010 opinion ( here ) that could have significant implications for motions to dismiss in the many subprime-related securities actions pending against the rating agencies, Southern District of New York Judge Schira Scheindlin rejected... Read More

NY AG Charges Bank of New York Mellon with Securities Fraud
Posted on 5 Oct 2011 by Thomas O. Gorman

The New York Attorney General added Martin Act securities fraud claims and other charges to a whistleblower complaint in taking over a suit against Bank of New York Mellon. The complaint centers on claims that the bank made almost $2 billion in revenues... Read More

This Week in Securities Litigation (January 27, 2012)
Posted on 27 Jan 2012 by Thomas O. Gorman

The President announced a new financial fraud task force focused on the root causes of the financial crisis in his State of the Union Address to Congress. The new task force is composed of DOJ and state prosecutors. It is charged with investigating... Read More

High Court Asked to Decide Whether Securities Suit May Proceed as a Class Action
Posted on 6 Nov 2012 by Timothy Raub

WASHINGTON, D.C. - (Mealey's) A shareholder plaintiff and a pharmaceutical company debated in front of the U.S. Supreme Court on Nov. 5 whether a securities lawsuit may proceed as a class action even if the plaintiff is unable to plead materiality... Read More

The Ghost of Scandals Past Continues to Haunt the SEC
Posted on 17 Jan 2012 by Thomas O. Gorman

The Madoff and Stanford debacles seems to never fade away for the Commission. Madoff of course is in prison but the litigation goes on. The failures of the Commission and others such as FINRA continue to linger. The Stanford case appears to be finally... Read More

This Week In Securities Litigation (Week ending November 13, 2015)
Posted on 16 Nov 2015 by Thomas O. Gorman

The New York AG may have launched a new trend this week. Using the Martin Act, he filed a settled action against the largest coal producer in the nation alleging false statements regarding the firm’s ability to project the impact of climate change... Read More

SEC Prevails in Eleventh Circuit
Posted on 2 Jul 2014 by Thomas O. Gorman

The SEC prevailed in an appeal of a financial fraud action. SEC v. Monterosso, Nos. 13-10341, 13-10342, 13-10464 (11 th Cir. Opinion June 30, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. A key issue in the case... Read More

Second Circuit Interprets Transaction Prong of Morrison Test
Posted on 22 Mar 2012 by Abbey Spanier

Recently, in Absolute Activist Value Master Fund Limited v. Ficeto , Docket No. 11-0221-cv, 2012 U.S. App. LEXIS 4258 (2d Cir. Mar. 1, 2012) [ an enhanced version of this opinion is available to lexis.com subscribers / unenhanced version available from... Read More

This Week in Securities Litigation (Week ending September 27, 2013)
Posted on 27 Sep 2013 by Thomas O. Gorman

The SEC has a busy week as the government, filing nineteen enforcement actions. Three of those cases were financial fraud actions, perhaps suggesting that the new financial fraud task force is starting to ramp-up. Four were insider trading actions, long... Read More

This Week In Securities Litigation (Week ending March 27, 2015)
Posted on 27 Mar 2015 by Thomas O. Gorman

The Supreme Court handed down the Omnicare decision on Securities Act Section 11 liability for opinion statements this week. In a judgment joined by all nine Justices the Court reversed the Sixth Circuit, concluding that opinion statements in a registration... Read More