Daily Archives: August 8, 2023, 10:36 am

SEC Charges 11 Wall Street Firms with Widespread Recordkeeping Failures

The Securities and Exchange Commission today announced charges against 10 firms in their capacity as broker-dealers and one dually registered broker-dealer and investment adviser for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders. They acknowledged that their conduct violated recordkeeping…

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SEC Calls In-House Judge Challenge Moot After It Dropped Case

An investment adviser’s second lawsuit challenging the SEC’s in-house judges on constitutional grounds should be dismissed as moot, the agency said Monday, citing a mix-up that led it to toss dozens of internal cases. The Securities and Exchange Commission’s enforcement case against Christopher Gibson was among those affected by a database issue that failed to protect adjudication staff memos from…

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Without Merit | The 10b-5 Daily

When faced with litigation, companies often publicly opine that the case is “without merit.”  But if the company loses the litigation, can investors then bring a securities class action alleging that opinion was false? In City of Fort Lauderdale Police and Firefighters’ Retirement Sys. v. Pegasystems, Inc., 2023 WL 4706741 (D. Mass. July 24, 2023), the court considered a securities class…

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FTX law firm Fenwick faces second lawsuit by crypto customers | Reuters

A group of FTX customers on Monday sued law firm Fenwick & West for allegedly aiding fraud through its legal advice to the now-bankrupt cryptocurrency exchange founded by Sam Bankman-Fried. The complaint alleges that Fenwick provided services to FTX that “went well beyond those a law firm should and usually does provide” and included structuring transactions to skirt regulatory scrutiny…

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Kenneth A. Polite Jr., Former DOJ Criminal Division Assistant Attorney General, Will Join Sidley As Co-Leader of its White Collar: Defense and Investigations Practice | Sidley Austin LLP

Sidley is pleased to announce that Kenneth A. Polite Jr. will be joining Sidley after serving two years as Senate-confirmed Assistant Attorney General for the U.S. Department of Justice’s Criminal Division. In that role, he was the highest-ranking attorney in the DOJ’s Criminal Division. Mr. Polite will join Sidley on October 1, 2023, as a partner and global co-leader of…

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