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. 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.
‘Enforcement 40’ for 2020
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