Monthly Archives: May 2020

Here Are 6 Reasons Why the SEC Whistleblower Program Is Successful – Going Concern

In response to the 2008 financial crisis, Congress passed the Dodd-Frank Act in July 2010, which, among other things, created the SEC Whistleblower Program. A decade later, the program has proven to be successful in generating high-quality information regarding securities laws violations that have enabled the SEC to halt fraud schemes and protect investors. Since issuing its first award in 2012,…

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Securities Enforcement Activity in the COVID-19 Era: A Backstop to Private Securities Litigation | Steptoe & Johnson LLP

Securities litigation and enforcement activity often surge in times of crisis. Indeed, bedrock federal securities regulations were borne out of an extended crisis: the stock market crash of 1929 and the decade-long Great Depression that followed. COVID-19 has already set off a wave of securities litigation. These private lawsuits and putative class actions have been based on allegedly misleading statements…

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What Hath Covid-19 Wrought? A New Skill Set Required for Compliance: Part 1 – Compliance ReportCompliance Report

The Coronavirus health crisis has wrought many changes in the business world and corporate compliance. Over the next few blog posts, I want to explore in some depth what I see are the key changes for the Chief Compliance Officer (CCO), compliance professional and compliance programs as we move to reopening the country and world for business. Covid-19 will accelerate,…

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Armed with whistleblower tips, U.S. SEC cracks down on coronavirus misconduct | News | WTVB

The novel coronavirus outbreak and economic fallout is proving to be a bonanza for whistleblower lawyers as the U.S. securities regulator cracks down on a range of related misconduct from companies touting sham cures to misuse of federal aid. The Securities and Exchange Commission (SEC) fielded about 4,000 complaints from mid-March to mid-May, a 35% increase on the year-ago period,…

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‘Green light to hide information’: Australia’s recovery at risk from company disclosure changes | Australia news | The Guardian

Investment in Australia that will be crucial to recovering from the coronavirus crisis could be put at risk because the treasurer, Josh Frydenberg, has watered down laws requiring company directors to keep the market properly informed, say advisers to funds controlling trillions of dollars. In a seven-paragraph press release issued late on Monday afternoon, Frydenberg said the change would protect…

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U.S. DOJ closing insider trading probes into three senators: WSJ | Reuters

The three senators include Republicans Kelly Loeffler of Georgia and James Inhofe of Oklahoma, and Democrat Dianne Feinstein of California, the Journal reported, adding that prosecutors are alerting their defense attorneys about the closing of the probes. However, the DOJ’s related probe into Senator Richard Burr is continuing, according to the newspaper. via U.S. DOJ closing insider trading probes into…

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NYSE floor reopens after coronavirus shuts historic Big Board for two months

The New York Stock Exchange trading floor, closed since March 23, is partially reopening on Tuesday. “I’m ready,” floor trader Jonathan Corpina of Meridian Equity Partners said. “We have been waiting a long time, we are prepared. Our customers are ready.” Corpina acknowledged some trepidation about returning, a feeling of “walking into the unknown.” via NYSE floor reopens after coronavirus…

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“Silent Cyber” and Fiduciary Liability Claims | The D&O Diary

As I have noted in prior posts (most recently here), an important concern these days for insurance industry observers and commentators is “silent cyber” — that is, the coverage for cyber-related losses under traditional property and casualty insurance policies, as opposed to purpose-built cyber insurance policies. For example, in one recent case (discussed here), a court found coverage for cyber…

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Lucid Motors Snags General Counsel From Rival Tesla | Law.com

Electric car maker Lucid Motors Inc. has picked up a new general counsel from rival Tesla Inc.’s legal department, which still remains without a named top lawyer after losing three general counsel last year. Lucid announced this week that it hired former Tesla deputy general counsel Jonathan Butler to serve as the Newark, California-based company’s general counsel and vice president. Butler,…

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SEC will watch Wall Street from home at least through mid-July | Financial Planning

U.S. SEC employees will have to stay away from the agency’s offices for at least two more months as Wall Street’s main regulator continues conducting much of its work remotely during the coronavirus pandemic. SEC Chairman Jay Clayton told employees in an email late last week that mandatory telework for the vast majority of the agency’s 4,000-plus employees will remain…

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