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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInA Critic Worse Than Elon Musk Prompts SEC To Go After Fake News
Elon Musk mocked it as the “Shortseller Enrichment Commission.” Billionaire Mark Cuban said it’s “useless.” Hedge fund legend Leon Cooperman called it “abusive.” For the U.S. Securities and Exchange Commission, such attacks come with the territory. But brushing them off is getting harder in the age of social media. One online foe has so troubled […]
Do Index Funds Monitor?
Our paper, Do Index Funds Monitor? examines whether index funds monitor the firms in their portfolios and hold corporate managers accountable to the same extent that actively managed funds do. If a shareholder disagrees with firm management, she has three options. First, she can voice her opinion by voting against management proposals and in favor […]
Robert A. Cohen, Cyber Unit Chief, to Leave SEC After 15 Years of Service
The Securities and Exchange Commission today announced that Robert A. Cohen, Chief of the Division of Enforcement’s Cyber Unit, will be leaving the agency in August after 15 years of service. Mr. Cohen is the first Chief of the Cyber Unit, created in 2017. The unit focuses on violations involving digital assets and cryptocurrency, cyber-related trading […]
Law firms waging fierce battle for lead role in shareholder lawsuit over Boeing 737 MAX – Reuters
Kahn Swick & Foti represents a Nevada family that claims to have invested $40 million in Boeing stock and lost nearly $5 million when Boeing’s share price fell by $34 billion within two weeks of the March 10 crash of an Ethiopian Airlines 737 MAX. Bernstein Litowitz Berger & Grossmann, for its part, says the […]
Pennsylvania Man Sentenced For International Email Impersonation And Fraud Scam | USAO-MA | Department of Justice
From at least April 2016 through January 2018, Cedeno conspired with others to defraud victims by pretending to be employees of the SEC, demanding money from victims and directing them to send it to members of the conspiracy, including Cedeno, who was then living in Ocoee, Fla. The conspirators who received the money generally withdrew […]
Global Securities Litigation Trends
This post serves as an update to the above-mentioned White Paper addressing recent developments. In Part I, we describe recent developments in U.S. actions in a post-Morrison world, where courts continue to struggle with the application of Morrison. Part II reviews the more significant updates to shareholder rights’ litigation in the European Union, Netherlands, Germany, […]
Bernard Madoff asks Trump to reduce prison sentence for Ponzi scheme
Notorious Ponzi schemer Bernard Madoff has filed a petition with the Justice Department asking that President Donald Trump reduce his 150-year prison sentence. Madoff, 81, currently is serving that sentence in a federal prison in Butner, North Carolina, for orchestrating the largest Ponzi scheme in history. His decades-long scam conducted while he headed Bernard L. […]
Proskauer Launches Private Equity SEC Enforcement Database | Proskauer – Private Equity Litigation – JDSupra
Today, we are launching a proprietary database tracking all SEC enforcement actions involving private equity advisers. The database contains key information from the actions, including summaries of key issues, settlement terms, and relevant statutory provisions. The database will be an important resource for us and our clients, providing us with quick access to comparable cases […]
Taking Insider Trading Too Far: What’s Left of the ‘Personal Benefit’ Requirement After ‘U.S. v. Martoma’? | New York Law Journal
When the Supreme Court declined to hear Martoma’s appeal last month, it missed an opportunity to clarify the law going forward in the Second Circuit. In a world where corporate insiders can share information outside the company for many legitimate reasons, those insiders—and the recipients of information from them—risk unfair prosecution absent a narrow, objectively defined […]
Facebook to Pay $100 Million for Misleading Investors About the Risks It Faced From Misuse of User Data
Facebook has agreed to pay $100 million to settle the charges. According to the SEC’s complaint, in 2014 and 2015, the now-defunct advertising and data analytics company, Cambridge Analytica, paid an academic researcher, through a company he controlled, to collect and transfer data from Facebook to create personality scores for approximately 30 million Americans. In […]