Monthly Archives: June 2020

SEC Accounting and Auditing Enforcement Actions Down Slightly in 2019 | The D&O Diary

According to a new report from Cornerstone Research, the number of accounting and auditing enforcement actions the SEC initiated in 2019 was down slightly from the number initiated in 2018, but the number remained near the 2014-2018 average. Monetary settlements of accounting and auditing enforcement actions during 2019 totaled approximately $626 million.  The June 25, 2020 report, which also summarizes…

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The Post-Cyan Section 11 Litigation Environment | The D&O Diary

Over the last two years, there have been two important judicial decisions concerning Section 11 litigation. In March 2018, the United States Supreme Court unanimously held in the Cyan case that state courts retain concurrent jurisdiction over lawsuits asserting liability claims under the Securities Act of 1933, a development that has increased the number of state court securities class action…

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Audrey Strauss Takes Over as Manhattan US Attorney Following Berman’s Dramatic Ouster | New York Law Journal

Audrey Strauss, the former top deputy to Geoffrey Berman, is set to take over the reins of the Manhattan U.S. attorney’s office this week, after her old boss agreed to resign Saturday following a 20-hour standoff with U.S. Attorney General William Barr over his removal. via Audrey Strauss Takes Over as Manhattan US Attorney Following Berman’s Dramatic Ouster | New…

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The SEC Loses an Arrow from Its Quiver in Liu v. SEC | Arnall Golden Gregory LLP – JDSupra

On June 22, 2020, the U.S. Supreme Court published its decision in Liu v. Securities and Exchange Commission, confirming the SEC’s authority to seek disgorgement from federal courts in enforcement actions. This was an important question that the Court raised but did not answer in 2017. The confirmation, however, comes with limitations not previously imposed on the SEC, which include…

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Liu v. SEC Highlights Limits of SEC Disgorgement Power

Three years ago, the Supreme Court ruled in Kokesh v. SEC that disgorgement in the context of an SEC enforcement action functions as a “penalty” for purposes of 28 U.S.C. § 2462 and is therefore subject to a five-year statute of limitations. 581 U.S. ___ (2017). In practice, the effect of Kokesh for companies and individuals under investigation by the SEC – including for…

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China’s regulator gets tough on insider trading as it metes out record penalty on wrongdoers in the financial markets | South China Morning Post

China’s securities regulator slapped two individuals with a record fine for insider trading and confiscated their ill-gotten gains, meting out 3.6 billion yuan (US$508 million) of penalties in an unprecedented enforcement to stamp out corporate malfeasance in the country’s financial markets. Shanghai entrepreneur Wang Yaoyuan and his daughter Wang Chengcheng were fined 2.72 billion yuan for using inside information to…

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Musk’s tweets enter the SEC | FT Alphaville

FT Alphaville believes this is the first time an SEC filing has featured a screenshot of tweets as part of a key announcement to shareholders. Now, some may just chalk this up to as yet another demonstration of the on-going governance conundrum that is Tesla Motors, and its affiliated businesses. Sure, screenshotting a social media platform, is an odd way…

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