The number federal securities class action suits filed in
the first half of 2011 decreased compared to the second half of 2010. At the
same time however the number of cases filed increased compared to the first
half of 2010, according to a new report...
Among other things, Cornerstone Research's mid-year
2011 analysis of securities class action lawsuit filings reported that
during the year's first half lawsuits were filed more quickly. The report said
that in the first six months of 2011 "the...
The SEC has in recent years suffered through its fair
share of failures, blunders and gaffs. Indeed, there are times that it seems
like this string will never end. At the same time it is important to view these
incidents in context. The agency is responsible...
The SEC filed another "suspicious purchases" insider
trading case. SEC v. Compania International Financier S.A., Civil Action
No. 11 CV 4904 (S.D.N.Y. Filed July 15, 2011). Typically these cases are
brought against "one or more unknown...
The SEC announced they had obtained an emergency freeze
against three Swiss-based traders under an allegation of insider trading. The
SEC claims that Compania International Financiera S.A., Coudree Capital Gestion
S.A., and Chartwell Asset Management...
Overall levels of corporate and securities litigation
during the second quarter and first half of 2011 remained at elevated levels
despite a decline in regulatory and enforcement activity during the quarter,
according to the latest Advisen quarterly...
The Eighth Court held that a person who pleads guilty to
a criminal violation of Section 10(b) and Rule 10b-5 is entitled at sentencing
to invoke the "no knowledge" provision of Exchange Act Section 32(a) to try and
avoid a term of imprisonment...
The SEC has been aggressive in bringing insider trading
cases. While the high profile Galleon and expert network criminal cases
typically garner the headlines, it is the actions being brought by the SEC
which may have a much more significant impact...
In what is as far as I know the first settlement of a securities class action lawsuit brought by mortgage-backed securities investors as part of the subprime and credit crisis-related litigation wave, the parties to the Wells Fargo Mortgage-Backed Certificates...
The short week after the July 4 th holiday is
usually quiet. There certainly did seem to be less traffic on the roads. But
nevertheless, there was news of note this past week on several stories we have
been following, as discussed below. The traffic...
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...
Janney Montgomery Scott LLC, a registered broker dealer,
settled an administrative proceeding which allegated that it failed to maintain
and enforce policies reasonably designed to prevent the misuse of material,
nonpublic information. In the Matter...
Fairness, and the appearance of fairness, is critical for
regulators and law enforcement officials. This helps foster respect for the law
which in turn encourages cooperation with enforcement officials and compliance.
In contrast, actions which are...
The U.S. Supreme Court's June 2010 decision in Morrison v. National Australia Bank looked like the end
of securities claims in U.S. courts on behalf so-called "f-cubed" claimants -
that is, foreign shareholders of foreign-domiciled companies...
In the wake of the U.S. Supreme Court's landmark June 20, 2011 decision in Wal-Mart Stores v. Dukes , numerous commentators have asserted that the case could have a significant impact on future class actions. For example, one law firm's memo about...
The parties to the consolidated
class action litigation arising out of the collapse of Washington Mutual - the
largest bank failure in U.S. history -- have agreed
to settle the suit for a combined $208.5 million. The settlement, which has
The Commission prevailed on a motion for summary judgment against the founder and chief investment officer of a registered investment company, Leila Jenkins. The complaint centered on allegations that about $1.2 billion of the $1.3 billion the fund claimed...
Many real estate fund managers, used to the lack of regulatory oversight, are wrestling with the implications of Dodd-Frank. One of the biggest sources of hand-wringing is whether to register as an investment adviser given the removal of the 15 clients...
Raj Rajaratnam was found guilty on all fourteen counts
of conspiracy and insider trading. U.S. v. Rajaratnam , Case No.
1:09-cr-0118 (S.D.N.Y.). The fact that the founder of the Galleon hedge fund
was found guilty despite a valiant effort by the defense...
If you read about the evidence, you can't really be
surprised that Raj Rajaratnam was found guilty of insider trading. That he was
found guilty on all counts was mildly interesting, but not much.
We may get some interesting new legal developments...
The war on insider trading by the Manhattan U.S. Attorney
was propelled forward this week with the conviction of Galleon hedge fund
founder Raj Rajaratnam on all fourteen counts. At the same time another
defendant in the expert network investigation...
Advertising and corporate communications is a rough area
for compliance when used in capital formation. The rules are restrictive, not
always intuitive, often vague, and in direct opposition to the revenue-hungry
side of the company.
This is the eleventh in a series of articles
that will be published periodically analyzing the direction of SEC enforcement.
The Commission has brought a number of significant cases involving regulated
entities in recent months. The cases can be...
SEC Enforcement completed its most comprehensive
reorganization since the Division was created in the early 1970s. A new
director, deputy director and other senior personnel have taken over. New
specialty units have been created. The management structure...
Harry Friedman ,
Exchange Act Rel. 64486, May 13, 2011
FINRA fined Friedman $77,500 and suspended him from all types of association
for engaging in private securities transactions without providing written
notice to his broker-dealer employer...