According to the Cornerstone Research report, there were 91 new actions filed against public companies and subsidiaries in FY 2023, representing 18% of all FY 2023 standalone actions. The 91 public company enforcement actions during the year represents a 34% increase over the 68 public company action in FY 2022 and is the highest annual number of public company enforcement actions since FY 2019 (96 actions). Interestingly, 31 of the FY 2023 actions (34% of the total) were filed in September 2023, the final month of the fiscal year (representing the highest monthly total number of public company actions in the database).
Interestingly, 92% of the 2023 public company enforcement actions were brought as administrative actions, the highest annual percentage since FY 2019. As readers know, the U.S. Supreme Court has a case on its docket this term that will address the constitutionality of the SEC’s use of its own administrative courts to pursue enforcement actions.
According to the Cornerstone Research report, total monetary settlements in FY 2023 public company enforcement actions totaled $1.3 billion, the lowest annual amount in the last eight fiscal years, and well below the record $2.8 billion in public company settlements in FY 2022 and only 70% of the $1.9 billion in annual average total public company settlements during the period FY 2014-FY 2022.
‘Enforcement 40’ for 2020
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