Daily Archives: May 11, 2023, 4:54 pm

Dutch Medical Supplier Philips to Pay More Than $62 Million to Settle FCPA Charges

The Securities and Exchange Commission today announced that Amsterdam-based Koninklijke Philips N.V. will pay more than $62 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) with respect to conduct related to its sales of medical diagnostic equipment in China. According to the SEC’s order, Philips’ subsidiaries in China, cumulatively referred to in the order as…

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SEC Charges HSBC and Scotia Capital with Widespread Recordkeeping Failures

The Securities and Exchange Commission today charged HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc. for widespread and longstanding failures by both firms and their employees to maintain and preserve electronic communications. To settle the charges, HSBC and Scotia acknowledged that their conduct violated recordkeeping provisions of the federal securities laws and agreed to pay penalties of $15 million…

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U.S. Internal Revenue Service Files Claims Worth $44 Billion Against FTX Bankruptcy

The United States Internal Revenue Service (IRS) has filed claims worth nearly $44 billion against the estate of bankrupt crypto exchange FTX and its affiliated entities. According to bankruptcy filings dated April 27 and 28, the IRS put forth 45 claims against FTX companies, which include West Realm Shires (the legal entity of FTX.US), Ledger Holdings (the parent company of…

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Robinhood Faces Regulatory Probes Over Communications Compliance – Bloomberg

Robinhood Markets Inc. said regulators are investigating the firm’s compliance with recordkeeping requirements, including employees’ use of “off-channel communications.” The firm is cooperating with probes by the enforcement divisions of the Securities and Exchange Commission and Financial Industry Regulatory Authority, Menlo Park, California-based Robinhood said Wednesday in a quarterly filing. The SEC is also looking into whether the brokerage followed…

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Report Suggests SEC Stepping Up Scrutiny of Deceitful Accounting | Corporate Counsel

A new report suggests that the U.S. Securities and Exchange Commission is putting more muscle into ferreting out nitty-gritty accounting shenanigans by public companies. The report by Cornerstone Research found that the SEC publicly disclosed 68 accounting and auditing enforcement actions in its fiscal year ending Sept. 30, a 55% increase from the prior year. Notably, more than half of all actions were…

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‘Eye-Popping’ SEC Award Puts Corporate and Whistleblowers’ Lawyers on Alert | Law.com

A nearly $280 million award issued by the U.S. Securities and Exchange Commission is leading corporate lawyers to warn clients and could make the work of whistleblower attorneys even more busy in the face of a historically aggressive agency. The award, announced Friday in connection with a multiagency, unnamed enforcement action, sent shock waves through the securities law world, according…

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Judge Questions if SEC Covington Client Demand Opens Floodgates

A judge questioned whether the SEC will “open the floodgates” to law firm data demands if Covington & Burling is forced to release names of 298 publicly-traded clients whose information may have been exposed in a cyberattack. The Securities and Exchange Commission lawsuit to compel Covington to release the names in the 2020 firm attack presents “challenging” questions, District Judge…

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Bitcoin Miner Marathon Receives Another Subpoena from SEC – Bloomberg

Bitcoin miner Marathon Digital Holdings said it received another subpoena from the US Securities and Exchange Commission related to an investigation of a Montana data center that may involve potential violations of securities laws. “The Company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties. We understand that the…

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Companies Are Allowed to Do Bad Mergers – Bloomberg

The important point here is that courts in Delaware — where many US public companies are incorporated — do not want to be in the business of deciding whether any particular business decision is terrible. So Delaware has a “business judgment rule,” in which courts try not to second-guess the business judgments of corporate directors…. Delaware is proud of this rule; this rule is…

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SEC’s Gensler Warns About ‘Lasting Effects’ of US Debt Default – Bloomberg

Securities and Exchange Commission Chair Gary Gensler on Wednesday warned that a failure by Democrats and Republicans in Washington to reach a deal on raising the US debt ceiling would impact trading, the ability of businesses to raise money, and investors. Gensler, a Democrat who was appointed by President Joe Biden, said the standoff has already affected short-dated US Treasury…

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