At a recent conference, Linda Chatman Thomsen, former Director of the SEC’s Division of Enforcement, said that the SEC may begin bringing an increased number of “aiding and abetting” cases against corporations and their directors in fraud cases.
According to CFO.com, Thomsen, who is now a partner at law firm Davis Polk & Wardwell, believes that the current Commission is likely to pursue these actions under the appropriate circumstances. She says that under previous chairman Christopher Cox, there was “pushback” from commissioners against the notion of broadening the scope of defendants that could be sued under the theory.
