Monthly Archives: June 2020

At Large: Is this the most important change in the DOJ’s new guidance? | The FCPA Blog

The DOJ’s new guidance for evaluating corporate compliance programs put the spotlight on organizational justice, or what we might simply call fairness. This question was added to Monday’s version of the guidance: “Does the compliance function monitor its investigations and resulting discipline to ensure consistency?” That new question appears under the heading “Consistent Application.” That part of the guidance already…

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Wells Fargo Hit with First PPP-Related Securities Class Action | The D&O Diary

In prior posts on this site (most recently here), I have suggested that D&O claims could arise in connection with the Paycheck Protection Program (PPP), a fiscal stimulus program Congress enacted as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). In what is as far as I know the first PPP-related securities class action lawsuit, a plaintiff shareholder has filed…

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Is Insider Trading Prosecution Unconstitutional? Ex-Apple Attorney’s Counsel Still Says Yes | Corporate Counsel

In April, Levoff’s attorney, Kevin Marino, founding partner at Marino, Tortorella & Boyle in Chatham, New Jersey, moved to dismiss the charges arguing that insider trading has never been made into law by Congress. He said the definition of insider trading has been created by judges and the prosecution of insider trading is unconstitutional. via Is Insider Trading Prosecution Unconstitutional?…

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SEC Awards Record Payout of Nearly $50 Million to Whistleblower

The Securities and Exchange Commission today announced a nearly $50 million whistleblower award to an individual who provided detailed, firsthand observations of misconduct by a company, which resulted in a successful enforcement action that returned a significant amount of money to harmed investors.  This is the largest amount ever awarded to one individual under the SEC’s whistleblower program. The next…

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IN BRIEF: Securities class actions dropped in May amid pandemic, data shows – Reuters

The number of new federal lawsuits seeking class action status on behalf of investors seeking to recoup losses from stock drops or challenge mergers fell in May to their lowest level in four years, data released by Stanford University on Tuesday showed. Stanford’s Securities Class Action Clearinghouse, which maintains a database on securities class action lawsuits, attributed some of the…

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COVID-19 class actions: Cautionary reminders from south of the border | ICLG.com Briefing

Canadian companies have faced an unprecedented last few months in the wake of the COVID-19 pandemic and the subsequent measures to contain its spread. As the pandemic’s impacts continue to reverberate, the first round of COVID-related litigation has begun. Several COVID-related class actions have already been launched in Canada, including: Class actions against long-term care facilities in both Ontario and…

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Rethinking “Friends and Family”? Insider Trading Liability | LinkedIn

The scenarios are familiar (and especially prevalent in work-from-home environments): A close friend or family member of a corporate insider sees or overhears highly confidential company information, or is entrusted with it by the insider who assumes (and perhaps insists) that it will remain confidential. The friend or family member proves untrustworthy and, without telling the company insider, makes profitable securities trades…

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U.S. Supreme Court rebuffs investors’ bid to block Madoff trustee lawsuits – Reuters

The U.S. Supreme Court on Monday refused to hear a bid by major banks and companies including Koch Industries Inc to prevent a trustee chasing money for victims of imprisoned Ponzi scheme swindler Bernard Madoff from recouping funds that were transferred overseas. The justices left in place a lower court’s ruling that revived dozens of lawsuits filed by Irving Picard,…

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Tips to SEC Surge as Working From Home Emboldens Whistleblowers – WSJ

The U.S. Securities and Exchange Commission received about 4,000 tips, complaints and referrals of possible corporate wrongdoings from mid-March to mid-May, said Steven Peikin, co-director of the SEC’s enforcement division. That number is 35% higher than it was in the same period last year. The tips have led to hundreds of new investigations—“many Covid-19 related, but many in other traditional…

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