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This Week in Securities Litigation (Week ending May 8, 2015)

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 filed two civil injunctive actions this week. One...

This Week in Securities Litigation (Week ending May 15, 2015)

The Commission filed an insider trading case in tandem with the Manhattan U.S. Attorney’s Office against a father and son based on repeated trades in advance of deal announcements even after FINERA initiated an investigation this week. The agency also filed a settled administrative proceeding against...

This Week In Securities Litigation (May 15 – June 5 , 2015)

This week Senator Elizabeth Warren forwarded a 13 page letter to SEC Chair White regarding her performance in office. The letter highlighted what it calls a “significant gap” between the promises of Ms. White at the time she was confirmed and now. In addition, the letter expressed concern...

This Week in Securities Litigation (Week Ending June 12, 2015)

The question of forum selection by the SEC was a key issue this week. While to date suits challenging the SEC’s right to bring an action as an administrative proceeding rather than in federal court have had little success – until now. This week a judge sitting in the Northern District of...

Year-to-Date Securities Suit Filings Disproportionately Involve Non-U.S. Companies

Historically, non-U.S. companies listed on U.S. exchanges were sued in securities class action lawsuits less frequently than were listed U.S. companies. For several years now, according to NERA , non-U.S. firms have represented about 16% of all companies listed on the U.S. exchanges, but according to...

This Week In Securities Litigation (The Week Ending June 19, 2015)

The Commission chose to appeal the decision in Hill v. SEC in which the Court held that the manner in which SEC Administrative Law Judges are retained violates the Appointment Clause of the Constitution. While the Court pointed out that the Commission could easily remedy the situation, the agency has...

This Week in Securities Litigation (The week ending June 26, 2015)

The SEC brought another custody rule action this week – against the outside auditors alleging that one examination was insufficient and the others incomplete thereby causing the client to violate the surprise audit requirement of the rule. failing the surprise audit requirement. The agency also...

This Week in Securities Litigation (Two weeks ending July 10, 2015)

The Ninth Circuit upheld a conviction for illegal tipping, following Dirks but raising doubt regarding its adherence to Newman in an opinion authored by Judge Rakoff, sitting by designation. The Commission filed settled proceedings against Goldman Sachs and KKR for, respectively, market access violations...

This Week in Securities Litigation (Week ending July 17, 2015)

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 seeking a jury trial to essentially opt out of...

This Week in Securities Litigation (Week ending July 17, 2015)

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 seeking a jury trial to essentially opt out of...

This Week In Securities Litigation (Week ending July 24, 2015)

The SEC filed three actions following-up on its settled proceeding against Oppenheimer for selling millions of shares of unregistered penny stocks. Each individual settled with the agency. In addition, the Commission brought a manipulation action against three individuals centered on the manipulation...

This Week In Securities Litigation (Week ending July 31, 2015)

The Government requested that the Supreme Court overturn U.S. v. Newman, the Second Circuit’s decision on tipping and the personal benefit test. Previously, the Second Circuit had declined a request to either rehear the case or consider it en banc. The SEC filed another settled FCPA action this...

This Week in Securities Litigation (Week ending August 7, 2015)

The SEC issued its final Dodd-Frank pay ratio rules this week by a 3-2 vote. It also issued its final registration rules for Security-Based Swap Dealers and Major Security-Based swap participants. More questions were raised this week regarding the propriety of the manner in which SEC ALJs are retained...

This Week in Securities Litigation (Week ending August 14, 2015)

A second insider trading action was brought by the Commission against a senior banking official based on the same take-over for which he was previously charged — but a different securities trading account is at the center of the new case. The SEC also brought its first action against a municipal...

This Week in Securities Litigation (Week ending August 28, 2015)

The Sixth Circuit last week concluded that Morrison , which held that Section 10(b) does not have extraterritorial reach, is inapplicable to Advisers Act Section 10(b). The DC Circuit, on rehearing, reaffirmed its prior holding that a portion of the Commission’s Dodd-Frank conflict rules violates...

This Week In Securities Litigation (Two weeks ending September 11, 2015)

In a burst of post-Labor Day energy, the SEC filed a number of significant actions. Those include a series of actions arising out of the audit failure by BDO; actions centered on a financial fraud at an on-line lender; cases tied to the failure to disclose executive perks; a case in which senior traders...

This Week in Securities Litigation (Week ending September 18, 2015)

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, the Memo stresses the point that cooperation...

This Week In Securities Litigation (Week ending September 25, 2015)

The Commission responded to critics of its administrative proceedings this week, proposing changes to the Rules of Practice which govern them. If adopted the new rules would modify the time period within which the actions must be completed, permit depositions and provide for electronic filing. SEC...

This Week In Securities Litigation (Week ending October 2, 2015)

September 30 th Madness dominated this week. The drive for stats was evident as the Commission stacked up cases like cord wood at a pace seldom seen. Twenty-two municipal bond actions were filed in one swoop; an insider trading case; a financial fraud action; an offering case; an FCPA action; and more...

This Week in Securities Litigation (Week ending October 9, 2015)

The PCAOB filed a settled action involving an auditing firm in which the consent order of settlement was based on admissions of facts. The approach is similar to the one adopted by the SEC in which the Commission requires admissions of fact in select cases. This week the SEC filed a settled FCPA action...

This Week In Securities Litigation (Week ending October 16, 2015)

The SEC prevailed on two summary judgment motions. One centered on a manipulation action. The other was against an attorney who facilitated a prime bank fraud. The Commission also filed: An action against UBS tied to its failure to disclose certain factors which negatively impacted the value of structured...

This Week in Securities Litigation (Week ending October 23, 2015)

The Manhattan U.S. Attorney announced the filing of motions to dismiss the insider trading conviction of Michael Steinberg, formerly a portfolio manager at SAC Capitol, and six others in the wake of the Second Circuit’s decision in Newman. SEC released its enforcement statistics for the last...

This Week in Securities Litigation (Week ending October 30, 2015)

The SEC’s apparent preference for administrative proceedings as a venue for its enforcement actions continues to draw criticism. H.R. 3798 is now pending in the House of Representatives. The bill is tilted the “Due Process Restoration Act of 2015.” It would give a Respondent in a cease...

This Week In Securities Litigation (Week ending November 6, 2015)

Conflicts and investment fund fraud cases were the focus this week. The SEC brought two actions in each category. In addition, a settled insider trading action was filed. SEC Remarks: Andrew Cheresney, Director, Division of Enforcement addressed the 2015 National Society of Compliance Professional...

This Week In Securities Litigation (Week ending November 13, 2015)

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 on its future business operations. Many of the...