On Dec. 4, the U.S. Securities and Exchange Commission brought its first enforcement action charging a public company, The Cheesecake Factory Inc., with misleading investors about the financial effects of the pandemic.[1] The case is significant because it shows that the agency is moving past its initial bout of enforcement activity targeting blatantly fraudulent activity involving COVID-19.
Recent public remarks by a senior member of the SEC’s Coronavirus Steering Committee indicate that the SEC Enforcement Division’s pipeline includes COVID-19-related investigations concerning a broader range of potential securities law violations, such as negligent misrepresentations, material omissions and insider trading.
Source: Cheesecake Factory Penalty Signals Shift In SEC Virus Focus – Law360
