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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Healthcare Services Company and CFO for Failing to Accurately Report Loss Contingencies as part of Continuing EPS Initiative
The Securities and Exchange Commission today announced that Pennsylvania-based Healthcare Services Group, Inc. has agreed to pay $6 million to settle charges that the company engaged in accounting and disclosure violations that enabled the company to report inflated quarterly earnings per share (EPS) that met research analysts’ consensus estimates for multiple quarters. This is the […]
KEY TAKEAWAYS FROM TWO RECENT SEC CYBER-DISCLOSURE ENFORCEMENT ACTIONS | LinkedIn
The SEC has just stepped up its enforcement efforts for cyber-related disclosure failures by public companies — bigtime. To date, given the dearth of SEC enforcement actions charging cyber-related disclosure failures, commentators typically cite the SEC enforcement action against Altaba, formerly known as Yahoo!, as the most pertinent precedent and guide for heedful corporate disclosure counsel. But with […]
Crypto firms are rushing to hire former regulators as federal agencies look to tame the ‘Wild West’ industry
In the past few months, the biggest crypto exchange has brought on a small army of former regulators – including former acting Comptroller of the Currency Brian Brooks, Senate Finance Committee chair Max Baucus, IRS criminal investigator Greg Monahan, and California’s chief financial regulator Manuel Alvarez. Since May, Binance says they have added 110 new […]
An Unusual Insider Trading Case
In short: Company insider (Panuwat) obtains confidential information from his employer that the firm is to be acquired. He immediately trades in the stock of a similar but unrelated company – recognizing, correctly, that news of the acquisition will lift the stocks of comparable firms. Has he violated Section 10(b) and Rule 10b-5 by misappropriating confidential […]
SEC Charges Netflix Insider Trading Ring
According to the SEC’s complaint, Sung Mo “Jay” Jun was at the center of a long-running scheme to illegally trade on non-public information concerning the growth in Netflix’s subscriber base, a key metric Netflix reported in its quarterly earnings announcements. The complaint alleges that Sung Mo Jun, while employed at Netflix in 2016 and 2017, […]
Sanjay Wadhwa Named Deputy Director of Enforcement Division
The Securities and Exchange Commission today announced the appointment of Sanjay Wadhwa as Deputy Director of the Division of Enforcement. Mr. Wadhwa most recently served as the Senior Associate Director of the Division of Enforcement in the New York Regional Office (NYRO), where he managed more than 150 personnel in enforcing federal securities laws. His […]
SEC Begins Reversal of Trump Era Changes to Whistleblower Program | BakerHostetler – JDSupra
The new Chairman of the Securities and Exchange Commission (“SEC”), Gary Gensler has wasted little time in revisiting some of the policies enacted under his predecessor. On August 2, 2021, Chairman Gensler issued a public statement calling on the staff of the SEC to propose potential changes to two whistleblower rules that the Commission had […]
‘Massive wake-up call’: Crypto faces growing legal crackdown – POLITICO
The enforcement actions are fueling debate about how cryptocurrency players fit into financial regulations. Federal regulators say the new digital currency platforms must adhere to existing rules, but industry players counter that it’s not that simple and that it’s time for Congress to pass new laws that are more tailored to crypto. “This regulation by […]
SEC Rattles SPAC Market With Novel Enforcement Action
In a recent aggressive and ground-breaking decision, the Securities and Exchange Commission announced enforcement actions against a special purpose acquisition company (SPAC) known as Stable Road Acquisition Corp. (SRAC); its sponsor, SRC-NI; the CEO of SRAC; the target company; and the target company’s former CEO. This represents the very first time that the SEC has […]
SEC Charges Biopharmaceutical Company Employee with Insider Trading
According to the SEC’s complaint, filed in the U.S. District Court for the Northern District of California, Matthew Panuwat, the then-head of business development at Medivation, a mid-sized, oncology-focused biopharmaceutical company, purchased short-term, out-of-the-money stock options in Incyte Corporation, another mid-cap oncology-focused biopharmaceutical company, just days before the Aug. 22, 2016, announcement that Pfizer would […]