The Commission took the unprecedented of dismissing the insider trading action against former Goldman Sach director Rajat Gupta, noting that he challenged the administrative proceeding in district court. The SEC reserved the right to file a federal court action. No such action has been filed to date...
The SEC and the NY AG have been successful in settling a
series of market crisis cases centered on the collapse of the auction rate
securities (ARS) market in March 2008. In litigation both regulators have
experienced more difficulty however. Earlier this year the court ruled against
the SEC and...
Following the crash of the market for auction rate
securities in early 2008, regulators as well as private litigants brought a
series of suits against the brokerage houses which sold the securities.
Typically the suits claimed that sells had misrepresented the risks in the
market claiming, for example...