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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInDo hypothetical risk disclosures give rise to securities claims? | Reuters
Risks inhere in every business. That is why Securities and Exchange Commission rules require public companies to specify the material risks that make an investment in it speculative and risky. These required disclosures have become a prime target of securities fraud claims in recent years where already materialized risks are described in hypothetical terms. Source: […]
Theranos founder Elizabeth Holmes to report to prison in two weeks | Reuters
Theranos founder Elizabeth Holmes will begin serving her prison sentence on May 30 for defrauding investors in the failed blood-testing startup once valued at $9 billion. U.S. District Judge Edward Davila set the date on Wednesday for Holmes, 39, to begin serving 11 years and three months in prison. Source: Theranos founder Elizabeth Holmes to […]
Why Tether Cannot Be Trusted | John Reed Stark
IMHO, Tether is not to be trusted. Tether, the first stablecoin, apparently headquartered in Road Town, Trinity Chambers, British Virgin Islands, has spent seven years promising transparency, credibility and audits. Yet still has provided none. Source: Why Tether Cannot Be Trusted | John Reed Stark
SEC Chair Gary Gensler remarks on crypto assets at Financial Markets Conference 2023 | Lene Powell
In Q&A following a keynote address at the Financial Markets Conference 2023 on May 15, SEC Chair Gary Gensler responded to several questions about crypto assets. Gensler emphasized the following points: · Existing SEC rules apply to crypto assets, and crypto entities need to come into compliance. · The SEC has brought about 140 cases relating to […]
Samuel P. Nitze Joins Quinn Emanuel, Expanding Firm’s Capabilities in White-Collar Work
Adding to its unmatched capabilities in white collar criminal defense, Quinn Emanuel Urquhart & Sullivan LLP announced today that Samuel P. Nitze has joined the firm as a partner. Nitze will be based in New York City, where until recently he served as a high-ranking official in the U.S. Attorney’s Office for the Eastern District […]
Robinhood to Pay $1 Million to Settle Suit Over Hacked Accounts
Robinhood Financial LLC and Robinhood Securities LLC will pay nearly $1 million to settle allegations that they negligently failed to protect online brokerage accounts from hackers, under a deal given final approval by a federal judge. The deal provides for a fund of $500,000 to cover class members’ claims, and separate payments of $484,000 for […]
The Crypto Market is a Gamble. Regulating It Shouldn’t Be. – Bloomberg
At the consumer-protection level, again in theory, gambling-style regulation could also be a boon. Sports teams wouldn’t be able to chase crypto sponsorships as an alternative to advertising for bookmakers. Crypto businesses would have new responsibilities regarding problem and under-age gamblers, on top of tax evasion and money laundering. Advertisers might have to publicize estimates […]
Former Chief Financial Officer of $21 Billion Biopharmaceutical Company Admits Insider Trading | DOJ
The former chief financial officer for a biopharmaceutical company today admitted his role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced. Usama Malik, 48, of Washington, D.C., pleaded guilty today before U.S. District Judge John Michael Vazquez in Newark federal court to Count One of an indictment charging him with securities fraud/insider […]
Florida Gov. Ron DeSantis Waging Toothless Campaign Against Digital Dollars, Lawyers Say
The state-level campaign against a U.S. digital dollar made its first foray into established law with Governor Ron DeSantis’ signature on Florida’s effort to block the use of virtual government-backed money in business transactions. But the Florida governor’s rhetoric that his state is banning central bank digital currencies (CBDCs) as “government overreach and woke corporate […]
Filecoin Price Drops After SEC Asks Grayscale to Withdraw Application to Make Trust Reporting
The U.S. Securities and Exchange Commission (SEC) asked Grayscale to withdraw its application to make its Filecoin (FIL) Trust product more like a public company, the asset manager revealed Wednesday. Grayscale had voluntarily filed a Form 10 to make its Filecoin Trust product a reporting company under which it would have been required to file […]