Daily Archives: August 22, 2023, 8:18 am

Uncivil Procedure: The Need for Heightened Due Process Protection in SEC Enforcement Prosecutions | Russ Ryan

Can we admit the obvious? Today’s Securities and Exchange Commission (SEC) law enforcement cases are criminal in nature, and courts should start treating them as such. Despite the misnomer Congress applied in the relevant securities-law provisions, and no matter how many times the SEC and courts insist these cases are “civil” in nature, SEC charges threaten financial sanctions that far…

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Judge Backs U.S. Sanctions on Crypto Platform Tornado Cash – WSJ

Sanctions imposed last year by the U.S. Treasury Department against decentralized cryptocurrency platform Tornado Cash are here to stay, according to a recent ruling by a federal judge. Six individuals filed a civil lawsuit in the U.S. District Court in Austin, Texas, last September against the Treasury Department and its leaders, alleging the designations against Tornado Cash exceeded the department’s…

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The Biggest Player in Crypto Is Facing a Risk Over Russia – WSJ

Binance is helping Russians move money abroad, potentially adding to its sprawling legal problems in the U.S. The cryptocurrency giant, led by founder Changpeng Zhao, joined many other major international companies early last year in scaling back its business in Russia, one of its largest markets by trading volume at the time. After Russia invaded Ukraine, Binance said it had…

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SEC action against Titan highlights dangers of hypothetical-performance ads

The SEC said the case is its first enforcement action based on the new marketing rule that went into force last November. That regulation overhauled how advisors can promote their firms for the first time since 1961. Major provisions include permitting client testimonials and allowing the use of past performance metrics with many related restrictions. *** “When [the SEC] comes…

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SEC Obtains Final Judgment Against IIIinois Resident for Insider Trading

The SEC’s complaint, filed on December 17, 2021, alleges that Catenacci, a Chicago, Illinois based medical doctor, entered into a consulting agreement with Five Prime to serve as a lead clinical investigator for the company’s Bemarituzumab drug trial. Through this role, Catenacci allegedly learned material nonpublic information about the positive drug trial results for Bemarituzumab. According to the SEC, shortly…

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DEI Initiatives Face Increased Scrutiny | The D&O Diary

As I have noted in recent posts on this site, the developing trend toward anti-ESG litigation has targeted, among other corporate initiatives, company adoption of diversity, equity and inclusion (DEI) programs. These and other developments have encouraged some companies to soft-pedal their initiatives in this and other areas, a phenomenon that has been described as “greenhushing.” But as noted in…

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