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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSenator Warren Questions Tesla Board Chairman on Conflicts of Interest with Elon Musk’s Takeover of Twitter | U.S. Senator Elizabeth Warren of Massachusetts
United States Senator Elizabeth Warren (D-Mass.) sent a letter to Tesla Board Chairman Robyn Denholm raising concerns that its Board of Directors has failed to meet its legal responsibility to protect Tesla and uphold its fiduciary duty to shareholders from actions by Tesla Chief Executive Officer Elon Musk in the aftermath of his purchase of […]
SEC Charges Former CEO of Biotech Company CytoDyn with Fraud, Insider Trading
The Securities and Exchange Commission today charged Nader Pourhassan, the former CEO of CytoDyn Inc., with fraud and insider trading in connection with providing misleading information to shareholders about the progress of a clinical research treatment for COVID-19 and HIV. According to the SEC’s complaint, Pourhassan repeatedly issued press releases exaggerating CytoDyn’s progress with regard […]
Crypto Is Money Without a Purpose – WSJ
When you have a hammer, everything looks like a nail. That’s why everyone in Washington seems to think that federal financial-services regulators are the natural overseers of crypto trading. This is wrong. Crypto trading should be regulated for what it is—a form of gambling that emulates finance—and not what its advocates tell you it is. […]
Marcum Raises Risk Assessments for Crypto Audit Clients
Accounting firm Marcum LLP, which vets the books of three publicly traded bitcoin miners and some privately held crypto exchanges, said Monday it is more closely scrutinizing its policies for accepting and retaining crypto companies and other enterprises with large exposure to the volatile digital assets sector. “We are not getting out of it today,” […]
Elsewhere in crypto auditing – Bloomberg
If you are a public accounting firm, you are in the business of signing your name to a piece of paper saying “this company’s financial statements are basically true,” and charging for it. Before signing your name, you will do your best to confirm that the financial statements are true, but there is always a […]
Rise in Crypto Securities Filings Could Persist | Insights | Skadden, Arps, Slate, Meagher & Flom LLP
Increased regulatory oversight and recent turmoil in the digital asset market have led to a rising number of securities litigations focusing on cryptocurrencies. Sixteen cryptocurrency-related class actions have been filed this year — more than in any single year since the first such filing was recorded in 2016, according to Stanford Law School’s Securities Class […]
With Binance, Everything Is Not Fine
This is a classic scenario for crypto exchanges, everything is fine … until it’s not. If the stablecoins in Binance’s reserves hold to their peg, everything will be fine. If it can provide true proof of reserves, everything will be fine. If there’s no run on the bank, everything will be fine. If it can […]
Construction Financing Platform Hit with SPAC-Related Securities Suit | The D&O Diary
In a few days, when I work up my summary of the year’s events in the world of D&O, one of the stories I will be covering will be the volume of SPAC-related securities litigation during the year. The SPAC-related litigation represents a significant part of the year’s securities class action lawsuit filings. The latest […]
Corporate and White-Collar Enforcement in 2023–24 | Global Investigations & Compliance Review
As 2022 comes to a close, is it possible to predict a trend for corporate and white-collar enforcement by the U.S. Department of Justice in 2023? Yes: enforcement will increase in 2023, and it will increase yet more in 2024. Understanding the Department as a dispersed, human institution that responds to incentives explains why. *** […]