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Thomas O. Gorman On This Week in Securities Litigation

As the Galleon insider trading trial draws to a close and the Lindsey FCPA trial moved forward in the Central District of California, one of the few senior executives charged in a market crisis case was found guilty by a jury after a ten day trial. SEC enforcement brought actions based on an undisclosed...

Thomas O. Gorman On This Week In Securities Litigation (May 27, 2011)

The Commission issued it controversial new Dodd-Frank whistleblower rules by a 3 to 2 vote this week. Many critics claim the rules will undermine corporate compliance programs. Insider trading is the key theme this week. Insider trading on Capitol Hill with a Senator sending a request to the SEC regarding...

The Week In Securities Litigation: SEC Actions, Diago Plc, FINRA Investor Warning

The SEC entered into an agreement with the Capital Turkey Securities Regulator this week calling for mutual cooperation in a number of areas including enforcement. The Commission also continued implementing Dodd-Frank, issuing additional rules concerning large traders, asset backed securities and short...

Securities Litigation This Week: Looming Scandal, SEC Actions, Criminal Cases

The SEC is about to become entangled in another scandal, according to reports in the New York Times this week. The latest involves the destruction of documents, according to press reports. The Supreme Court's ruling on what constitutes primary liability in Janus does not apply to Securities Act...

Securities Litigation This Week: U.S., UK Courts hand Down Sentences For Securities Fraud

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 an investor warning cautioning the public regarding...

The Week in Securities Litigation: SEC Prevails In 4 Court Actions

The Commission prevailed in four court actions. In the district court the agency won a summary judgment motion against an investment adviser. In the Eleventh Circuit Court the SEC secured a pair of victories. In one it obtained the reversal of a grant of summary judgment against it in an ARS case. In...

Managing the Risks Posed To Mutual Fund Industry Participants By Increasing Litigation And Regulatory Enforcement Activity

Over the last 10 years, the far-reaching examination of the trading practices of the mutual fund industry, numerous enforcement actions by the SEC against prominent broker-dealers and fund complexes, and scores of civil lawsuits resulted in very significant costs to the mutual fund industry. Additionally...

The Week In Securities Litigation: SEC Settles 'Suspicious Trading' Insider Trading Action

Significant events this week included the proposal by the SEC of additional swaps rules regarding security-based swap dealers and major participants. Enforcement settled a "suspicious trading" insider trading action with a Hong Kong based entity while initiating a case against an investment...

The Week In Securities Litigation: Focus On White Collar Criminal Securities Cases

The focus this week was on white collar criminal securities cases. First, Rajat Gjupta, the former Goldman Sachs director convicted of passing confidential information to former hedge fund mogul Raja Rajartnam was sentenced. Second, Mr. Rajartnam's appeal of his conviction on insider trading and...

The Week In Securities Litigation: SEC, CFTC Chairmen Testify; 2 Sentenced To Long Prison Terms

SEC Chairman Elise Walter and CFTC Chairman Gary Gensler testified before a Senate Committee this week, focusing on the implementation of Dodd-Frank. The SEC also approved the budget for the PCAOB. Two former senior executive in the organization of jailed Ponzi schemer Allen Stanford were sentenced...

The Week In Securities Litigation: SEC Seeks Budget Hike, Brings 2 New Actions

The focus this week was on the proposed SEC budget as new SEC Chair Mary Jo White told a House subcommittee that the agency needs about a 26% increase. Part of the additional funding is to hire almost 700 new staff members. SEC enforcement, in conjunction with the Manhattan U. S. Attorney's Office...